A $2.8 million dollar contract with an energy savings group has one county supervisor skeptical, in addition to the county administrator wondering if Yazoo County can afford it without possibly raising taxes.
“This might have to raise taxes or shorten somebody else’s budget,” said Supervisor Willie Wright. “I’m not down with that.”
The resolution towards an agreement with Upchurch Services LLC was recently brought in before the Yazoo County Board of Supervisors. Earl Byrd, business development manager with Upchurch, told county leaders it was time to jump onboard, citing that the winter months were the time to begin heating, ventilation, and air conditioning work within the energy savings project. He added that the next step was “to get the financing in place.”
The project is geared towards updating Yazoo County’s infrastructure into an energy savings model within at least 13 county buildings and facilities. Those updates range from HVAC unit replacements, LED light replacements, numerous electrical replacements and other SMART network upgrades that Upchurch Services predicts will save millions of dollars.
However, each scope of work at every identified county building only includes one-year parts/labor warranty, according to the agreement. A few have also questioned the need for several of the proposed replacements considering many of the buildings proposed were recently upgraded with equipment.
The scope also comes with a hefty price tag. According to the resolution, “the Yazoo County Board of Supervisors is amenable to entering into a contract with Upchurch Services, LLC for an amount not to exceed $2,858,441.00 to provide upgrades to municipal facilities through a ‘Guaranteed Energy Savings Contract’; and that financing (fifteen year lease) of the project shall be negotiated and presented to the Board for consideration.”
But County Administrator Donna Kraft reminded the board that $2.8 million dollars was not within Yazoo County’s budget.
“When we did this fiscal year’s budget, y’all did not want to increase any budgets, and you didn’t want to change anything,” Kraft said. “With that being said, we would have to hold those budgets to the line this year. This coming in concerns me that it, among other things, could throw y’all into having to raise taxes in the next budget year because it is so tight right now.”
Wright said he was also reluctant and skeptical about the whole thing because he felt the county was being rushed into making a deal with Upchurch Services.
“I still ask, why do we have to do it now,” Wright asked. “You keep talking about ‘guaranteed savings.’ Even if we decide to do it later, those ‘guaranteed savings’ still won’t be there?”
“It will be there, but the time to do the HVAC work is during the winter and early spring,” replied Byrd.
Supervisor Joseph Thomas Jr. said the first payment towards the agreement would not be due until next year, adding that it would fall into the new fiscal budget. But the submitted paperwork submitted to the county shows a payment of about $106,000 due in September 2026, which Kraft said is still considered this fiscal year’s budget.
According to the Upchurch agreement, using baseline energy rates, the savings for the first year would total $268,176. According to a Fiscal Potential Analysis provided by Upchurch Services, the projected cash flow for 15 years totals $809,527.
But Supervisor Lee Moore told The Herald he understands the agreement to cover that once the $2,858,441 contractual commitment to Upchurch Service is covered, the remaining projected savings and cash flow figures would be coming into Yazoo County.
“The $809,000 would be on top of the $2.8 million recuperated,” Moore said.
Also, during the open board meeting, it was questioned as to what happens if the guaranteed savings do not match accurate figures.
“You have these estimates of what we save,” Thomas said. “What if we don’t save that during the first year? How do we get compensated?”
“We don’t guarantee the dollar amount,” Byrd replied. “We guarantee the savings.”
But Wright said the figures provided do not entirely make sense, adding that he is reluctant to commit to $2.8 million dollars.
‘We agree to disagree,” Wright said. “I am not down with this. I feel rushed, and it doesn’t make sense to me.”
Moore said he spoke with someone from DeSoto County who said they entered into a similar agreement with Upchurch Services and praised the project.
But in Sunflower County, Supervisor Glenn Donald told The Herald that Yazoo leaders need to read the fine print in the 49-page agreement.
“Pay attention to the warranties, the time frames,” Donald said. “Cheaper materials are used. Units that had probably 22 years of life span left were replaced with cheaper units. Don’t walk. Run from this.”
According to an article published in the Enterprise Toscin in Indianola last February, the Sunflower County Board of Supervisors was approached by Upchurch Services with proposals for revitalizing infrastructure while reducing operational costs. The Upchurch representatives also discussed financing options, explaining that savings from the energy upgrades could be used to finance the projects over the course of 12 to 20 years.
"You can pay for the project through the savings you're already spending on utilities," said Whitney Roberts, an Upchurch representative who spoke to Sunflower County leaders.
In another article printed in the Enterprise Toscin last October concerning a project at the Sunflower County Courthouse, Donald said he began to voice concerns over the agreement.
“The project is estimated to result in $490,000 in energy and maintenance savings over a 15-year span and would be financed through a note paid off by anticipated cost reductions rather than upfront spending,” the article stated. “The total estimated cost of the project stands between $2.5 to $4 million over 15 years. Donald voiced concerns about the financial impact, given what he called the current economic uncertainty, along with the potential ongoing tax burden on citizens.”
The article states that Donald suggested Sunflower County take on its own expenses with the upgrades.
“I just have a problem with putting another mil on taxpayers when things are so uncertain,” Donald said, in the Enterprise Toscin article. “If the savings are real, we need proof, not just promises.”
Donald told The Herald that Yazoo County leaders should request some factual documentation that shows where similar projects under Upchurch Services have worked.
Wisdom is the result of experience,” Donald told The Herald. “Show me a company, a school, a business, a county, anything where you went and did the work. Provide me with the documents that show the savings you are talking about. Don’t show me predictions. Show me reality. A chart is not reality.”
Sunflower County’s voting procedure to continue with the proposal with Upchurch Services was identical to Yazoo County. The motion was carried 3-1 with one supervisor absent. Donald was the sole opposing vote.
Within Yazoo County, Supervisor David Berry was absent, and the vote carried 3-1. Wright cast the sole opposing vote.
However, the Upchurch Services project resurfaced in the Enterprise Toscin again just earlier this month with Sunflower County Supervisors putting the project on hold.
“Upchurch jail HVAC project put on hold” the Indianola newspaper’s headline read.
“That policy discussion was fueled by ongoing frustration with an energy savings performance contract at the county jail valued at more than $2.6 million, including roughly $630,000 for new HVAC equipment,” the article stated. “Supervisors reviewed photographs showing collapsed and deteriorated duct work, torn insulation, congested attic spaces and a kitchen unit still down after a transformer failure, despite the project’s goal of delivering a fully functioning system rather than just new units.”
“County maintenance supervisor Daniel Kent and jail staff reported that only one new duct line appeared to have been installed while much of the 30‑year‑old ductwork remained in place, raising concerns that airflow blockages could cause units to freeze and negate promised efficiency gains,” the article continued. “Board members said they would not vote to release the remaining payment to Upchurch Services until all damaged ductwork is repaired or replaced and the system operates as originally represented in the contract.”
Donald told The Herald he is very frustrated with the project, adding that it felt “rushed and off.”
Questions remain with the project within Yazoo County. Those questions include the length of the “guarantee performance term” and a more detailed breakdown of the guaranteed savings. There is also some fine print within the 49-page agreement that the county board attorney has requested clarity on. As of press time, those questions had not been answered nor was the matter discussed during Monday’s meeting as the paperwork remains in limbo.
