FARMINGTON — The RSU 9 Board of Directors entered into a $1.2 million contract with Thayer Corp. of Auburn for a pellet-boiler and two backup generators to heat Cascade Brook and Mt. Blue Middle schools and the district bus garage.
All three buildings are in the same vicinity on Learning Lane in Farmington. The boiler will be placed at the Cascade Brook School.
The annual payment of about $93,319.61 on the 15-year financing agreement is expected to be covered by savings in fuel oil, Superintendent Mike Cormier said.
The board voted on the contract at its Feb. 12 meeting.
Directors also approved going with Norway Savings Bank to fund the project. The bank is charging no interest on $440,932 for the qualified tax credit bond.
The qualified tax credit bond translates to interest-free borrowing for the $440,932 from Norway Savings, because the district will receive an Internal Revenue Service rebate and the bank does not add any basis points, the information states.
Norway Savings is charging 3.03 percent interest on the tax-exempt lease purchase agreement not to exceed $759,068 for the remainder of the project, according to information Cormier passed out at the meeting.
The district also received bids from Androscoggin Bank on the 15-year repayment. Androscoggin Bank bid 1 percent interest for the qualified tax credit bond rate and 4.05 percent on the remainder of the cost of the project.
TD Bank submitted no bid for the 15-year repayment. It did bid on a 10-year repayment as did the other banks.
If 80 percent of the oil is replaced with pellets, the estimated budget savings is about $94,000, Cormier said.
If 90 percent of the oil is replaced with pellets, savings is estimated at $102,000, he said.