Scio Township’s Data-Driven and Environmentally Conscious HVAC System

Scio Township is excited about its decision to install a new HVAC system.

Heating, Ventilation, and Air Conditioning (HVAC) is not something that pops to top of mind for governmental honors, but considering the money involved, its importance to the day to day operations in township hall and how it demonstrates Scio’s desire to be more environmentally conscious, it is a point of pride for Scio Township.

So much so the township reached out to the Sun Times News with its HVAC story, which is one that highlights the reasoning behind the decision to go with geothermal, associated costs, expected benefits, and the teamwork demonstrated by staff and contractors to get the work done without disruption to the business of running the township.

Here is the township’s story in their words:

Back in 2024, the Scio Township Board of Trustees became increasingly aware that the 25-year-old HVAC system installed at Township Hall was failing. Frequent repairs to the system operating in the original part of the building were becoming increasingly expensive, air quality was poor, and the gas-fired rooftop system itself was difficult to control. It was clear: the even greater expense of replacing the outmoded system could be delayed no longer. Spearheaded by Planning Chair Jan Culbertson, a task force was formed to investigate the various options for replacement, and it was found that due to changes in building codes, and the age of the existing ductwork, replacing the old units with similar (gas-fired) new ones was not a viable option.

In choosing a new HVAC system, the Board was conscious of the long-term impact of its decision. After all, the last HVAC system was in place for 25 years. Would Scio go into the next 25 years relying on the same technology? Or would it honor its stated commitment to transition to net zero greenhouse gas emissions in township operations by 2030? Through a grant administered by the Michigan Department of Environment, Great Lakes and Energy, the Board received financial support to make a data-driven, environmentally conscious choice to go with geothermal heat pumps. This choice also qualifies the Township for a substantial rebate from the federal government called “direct pay.” Since governmental units, like other non-profit organizations, don’t pay taxes, they can’t get a rebate on their taxes; “direct pay” is a way to support renewable energy initiatives among such entities.

With grants and direct pay, the geothermal choice was estimated at a final cost of approximately $904,800. Compared to a Dual Fuel Rooftop Unit with Retrofit Zone Dampers (in other words, the modern equivalent of the 25-year-old system being replaced), the dual fuel option had a comparable cost estimate of $908,000 with lower system efficiency and less temperature control.

The resulting decision? A majority of the Board voted to go for the geothermal option.

Spending so much money on an unfamiliar system was not an easy decision but at least one trustee had personal experience of purchasing and living with geothermal. Township Board Trustee David Read installed a geothermal system in his Scio Township home decades ago. While initially skeptical due to the high up-front costs compared to conventional heating and cooling systems, he soon became a true believer.

“I figure the system paid for itself within the first three years,” he stated when reviewing his support for the geothermal option.

The new system at Township Hall is expected to pay for itself through significantly lower energy bills over the years. While the pay-down rate is unlikely to be as quick as Trustee Read’s, it is still a substantial benefit unavailable to systems that do not run on renewable energy. Further, the project as a whole incorporated corrections to the old system, and preparations for the eventual replacement of the system operating in the newer part of Township Hall, increasing the upfront costs but promising substantial benefits down the line.

“It only made sense to correct what was possible to correct in the remnants of the old system and prepare for the future while we had contractors working at Township Hall,” said Township Treasurer Ryan Yaple, who served as the Township’s Clean Energy Officer on this project and voted in favor of the geothermal system.

The choice to go with geothermal heat pumps has multiple demonstrated advantages. In particular, the system chosen by the Board had the best energy efficiency of the available options, its equipment is manufactured in the US, and it qualified for “direct pay” reimbursement of the total project cost of up to 40 percent. That made the cost of installing geothermal units at Township Hall comparable to a similar system that runs on non-renewable energy while reducing the building’s greenhouse gas emissions by 61 percent.  

As Planning Commission Chair Jan Culbertson pointed out, “Since the Township is already signed up with the MIGreenPower program through DTE, all our electricity is provided by renewable energy sources, making an electrical system such as geothermal heat pumps a truly sustainable choice.”

Planning to have half the building under renovation without interruption to daily business required teamwork, and a willingness by everyone who works at Township Hall to make temporary adjustments. But everyone worked as a team to get this project done, according to Office Coordinator Kristy Aiken, “I’m especially grateful to the public, who were so gracious even when they were re-directed to the back door of the building during a very cold January.  Overall, I’m very pleased with how the process has gone in every way.”

Project manager Chris Cheng gives similar high marks to Boone & Darr, the contractors who were awarded the project, “The key to the success of this project is constant communication between Scio, B&D and their subcontractors and they’ve been open to new ideas and suggestions while keeping us on track for completing this project.” 

While some remain skeptical of the geothermal HVAC project at Township Hall, the Board expects the new system to be more reliable, more effective, and more cost-efficient than the available alternatives.

“If the installation project is any indication, I anticipate success,” said Township Clerk Jessica Flintoft, another supporter on the Board. “With the hard work of Boone & Darr and the flexibility of staff, the work has been completed ahead of schedule, within budget, and the business of the township has been carried on seamlessly.”

Photo: A look inside the geothermal mechanical room. Photo courtesy of Scio Township