Plumas County is considering significant changes to its $10.9 million contract with ENGIE Services U.S. to potentially save up to $3.7 million. This decision comes after a review by Supervisor Mimi Hall and Nick Collin, the county facilities director, who have identified opportunities to reduce costs by adjusting the plans for installing generators and HVAC units in county-owned facilities.
The initial contract, signed in March 2024, aimed to update outdated equipment with new generators, HVAC systems, and LED lighting. However, concerns about the necessity and cost of certain equipment led to a reassessment. The proposed changes include gradually replacing HVAC units over six years using local contractors, which could save $1.6 million compared to ENGIE’s plan. Additionally, by not installing backup generators at certain facilities and seeking local bids for necessary installations, the county could save an estimated $2.1 million.
While the county plans to move forward with a solar project at the courthouse annex, which could benefit from federal funds and a favorable reimbursement rate from Pacific Gas and Electric Company, they are reconsidering other aspects of the ENGIE contract. Hall and Collin emphasize the importance of using local contractors to support the local economy and to potentially reduce costs further.
Financial considerations are crucial, given the county’s complex funding arrangements involving the general fund and lease agreements. County officials, including Treasurer Julie White, stress the need for clarity in financing any amended contract.
The project has been contentious since its inception, partly due to a lack of a facilities director during its negotiation. However, both county and ENGIE officials are reportedly open to amending the contract to better align with the county’s needs. Time is a critical factor, as costs continue to rise while decisions are pending.
