Five Town CSD to hold public hearing on $7.3 million borrowing package

CAMDEN — On Thursday, Jan. 2, the Five Town CSD will hold a public hearing on the proposed $7.3 million bond that is to appear before voters in Appleton, Camden, Hope, Lincolnville and Rockport Jan. 14, at the polls in each town. The bond proposal bundles four separate projects at Camden Hills Regional High School: Maintenance and replacement of the HVAC system; window and siding replacements; installation of a new synthetic turf field; and seating and code upgrades in the Strom Theater.

The hearing will begin at 6 p.m. in the Rose Hall Board Room, on Knowlton Street in Camden. The discussion of the referendum is the only item on the agenda.

The CSD is holding the vote in mid-January because it hopes to meet the deadline of the May bond sale at the Maine Municipal Bond Bank. The Maine Bond Bank, created in 1971 by the Maine State Legislature, provides Maine municipalities, school systems, water and sewer districts, and other governmental entities access to low-cost capital funds through the sale of tax-exempt bonds. The Maine Bond Bank is rated AA+/stable, Aa1 stable by S&P Global  (Standard and Poor) and Moody's, respectively.

"Traditionally twice a year, in the spring and fall, the Bond Bank will consolidate eligible applicants and engage in a bond sale," the Maine Bond Bank said. "From application to receipt of funds the bond issuance process usually lasts four months."

The Jan. 14 referendum question asks voters: 

Article 1. Do you favor authorizing the School Board of Five Town Community School District (the “District”) to issue bonds or notes in the name of the District for minor capital project purposes in an amount not to exceed $7,300,000 to construct and equip the following projects at Camden Hills Regional High School:

1. Replacing the Don Palmer Field with artificial turf;
2. HVAC system improvements to replace failed geothermal system;
3. Replacement siding and windows; and
4. Strom Auditorium repairs and upgrades.

Taxpayers in the five towns will begin repaying the bond in 2026, if the package is approved, the CSD said.  The initial 2026 bond payment will add an additional 4.5 – 6% (depending how the repayment is structured) to the 2026 Five Town CSD school budget. That budget runs on a July-June fiscal year.

The CSD has not prepared its 2026 budget, which is to be presented in February to the CSD School Board, but the superintendent's office anticipates that budget, with the initial $7.3 million bond payment incorporated, to increase by approximately 10 percent.

"School administrators will scrutinize every line in the budget to bring it in as low as possible while maintaining a quality education," the CSD said, in a prepared statement about the bond proposal. "The reality is that we need to maintain our facilities and the cost of doing so has risen precipitously in the past five years. Not completing these projects at this time could result in much greater costs down the line."

HVAC Repair and Replacement, $2.5 million

According to the CSD, the geothermal system at the high school, built in 1999, provides 10% of the heating and 90% of the cooling capacity at the school, but it has failed. The No. 2 oil burners are also at the end of their lifespan. 

"Despite the potential benefits of such a system, Camden Hills Regional High School has been experiencing significant challenges with its geothermal system, particularly concerning the open wells, corrosion of the pipes and equipment, sequence of operations, and overall system capacity and reliability," wrote Energy Management Consultants, in a 179-page consultant report. That report contains analysis of the existing HVAC system, as well as recommendations, and specification sheets for proposed new equipment.

At the Nov. 6 CSD School Board meeting, Energy Management Consultants outlined problems with the geothermal system, saying issues of the geothermal system include:

1) overflowing wells, corrosion;
2) a collapsed well, #2;
3) inadequate piping insulation;
4) failing valves;
5) clogged filters; and
6) an inadequate system capacity.

Also, the Hatchery Commons and the gym lack sufficient cooling, the report said.

The vertical geothermal well piping originally had been galvanized piping, EMC said. That material was unsuitable for well water conditions, including the elevated salt levels, the report said.

The elevated salt levels have been informally attributed to the former Maine DOT salt and sand depot on Route 90, which is on a state-owned parcel adjacent to the high school property.

The CSD and EMC contacted three well companies to snake cameras through the underground system to help determine the extent of deterioration.

"These conversations provided valuable insights into the history of well piping and pump replacements," the EMC report said. "Additionally, there was concern raised about a former salt depot located near the school’s property, which may be leaching residual salt into the groundwater and contributing to the corrosion observed in the system.

"Despite multiple requests, none of the companies were able to perform the camera inspection due to various constraints, such as equipment being under repair or concerns about the camera becoming lodged in the narrow access spaces between the pipes. Instead, the companies recommended pulling the well piping and pumps to allow for inspection access, but this procedure was beyond the scope of this study and was not pursued.

"It was also noted by the school’s facility team that Well 2 has collapsed twice and has been abandoned at this time. The company that services the wells did not provide any further information about this collapse and attributed it to the reason that some of the vertical well piping was replaced over the years. With Well 2 non-operational, this limits the maximum capacity of the GSHP’s to approximately 2/3 of it’s total capacity."

Additionally, while the galvanized piping had been replaced with plastic piping, the well casings are still original iron piping, the report said.

In October, EMC produced four repair and upgrade options, each with life cycle cost analyses (LCCA). The LCCA evaluated initial investment and long-term costs, including energy consumption, maintenance, and replacement expenses over a 25-year period. The goal of the LCCA is to determine the most cost-effective and sustainable solution for the school’s heating and cooling needs, the report said. 

Options, with their initial costs, included:

1) fix and improve the existing open loop geothermal well system ($1.8 million) ;

2) convert to a closed loop system ($3.6 million) :

3) convert to condensing boilers and an air-cooled chiller ($1.7 million), or

4) convert to air source heat pumps ($2.5 million). 

EMC has recommended Option 3, which entails installing two new 2000 mbh (unit of measurement for heat) propane condensing boilers and an air-cooled chiller system. Option 3 includes filling in the geothermal wells, and it removes the two No. 2 oil burners currently in use.

"Options 1 and 2, which modify or replace the existing geothermal system, provide significant improvements in performance and reliability, but their high initial costs and life cycle expenses may not justify the investment unless long-term energy savings are a priority," the EMC report said. "Option 3, the boiler and chiller system, emerges as a highly cost-effective solution, offering a balance between initial investment and long-term operating costs. Option 4, the air-source heat pump, offers a more energy-efficient solution than Option 3 but comes with a higher overall life cycle cost.

"The decision ultimately depends on Camden Hills Regional High School's long-term goals for sustainability, operational reliability, and budgetary constraints."

Ultimately, the Five Town CSD Board of Directors voted Nov. 6 to proceed with Option 3, recommending the installation of propane-fired boilers, "because it was the most cost effective," according to the CSD.

Replacement Siding and Windows, $3.14 million.

The siding on the high school is deteriorating and falling off, resulting in water infiltration, the CSD said. Window sills are also failing. 

According to Nov. 6 CSD School Board minutes, the design of the 25-year-old building creates conditions prone to collecting water and leaking, and 40 percent of the windows need to be replaced. 

The replacement siding is to be aluminum, and the recommendation is to replace all the windows to properly install new flashing.

"The recommendation is to replace 100% of the windows at this time as well, because they need to be removed to properly install the new flashing, and it does not make sense to reinstall 25 year old windows," meeting minutes said. "The Board had some discussion about how many years the kalwalls (very durable translucent panels that are used as windows and skylights in the gym) have left in their lifespan, and whether it made sense to include that item in this project as well (it is not currently included in the project scope). However, that project is easier to do separately and can be paid for from the capital reserve at a later time. They are not in dire need of replacement."

Artificial turf athletic field, $2.6 million