University of Iowa tables energy-efficiency projects to ‘balance the budget’

IOWA CITY - The University of Iowa has shelved at least three energy conservation projects it was planning for this summer due to financial concerns.

The tabled projects - worth millions combined - would have improved energy efficiency in the Lindquist Center, which houses the College of Education at the intersection of Madison and Burlington streets; the Carver Biomedical Research Building, a newer facility along Newton Road on the west side of campus; and the Biology Building, at the intersection of Jefferson and Dubuque streets.

'But to encumber the expense would not have allowed us to balance our budget appropriately,” said Rod Lehnertz, interim vice president of UI finance and operations.

Still a high priority

Lehnertz stressed that energy efficiency and cutting consumption is a high priority for the university, but not as high as - for example - decreasing student expenses through programs like the Summer Hawk Tuition Grant. That program offers Iowa residents a full-tuition scholarship for up to 12 semester hours of summer study, and it offers non-residents a significant discount.

'One might not associate that as conflicting with an energy project, but they all come into the picture of balancing the budget,” Lehnertz said.

Gov. Terry Branstad this month vetoed one-time money for Iowa's public universities in the new budget year - leaving UI without any increase to its base or annual allocations. Lehnertz didn't tie the UI decision to any specific budget action.

The university is moving forward with two energy conservation projects originally planned for this summer in the Hardin Library for Health Sciences and the Medical Education Building, both along Newton Road on the west side of campus. The Medical Education Building project was placed on hold earlier this summer, but UI officials told The Gazette it will proceed.

'Certainly our objective is not to get contractors started down a path on a project they want to do and then pull it back,” Lehnertz said. 'But, to balance the budget, we might need to wait until the right funding is in place.”

contractors struggle

Still, the tabling and delays this summer created a hardship for contractors. Apex Construction Co. of Iowa City won bids for the Lindquist, Biology, and Medical Education Building projects.

When Apex owner Harvey Miller learned last month that none of it would be happening - at least not as planned - he had to scramble.

'That took our whole summer's worth of work away from us,” Miller said. 'We are a small company, and that affects us drastically.”

Miller said the company has pieced together a backup plan that will suffice until they hear more from the UI.

'We will be all right, but it took a little juggling act to get some more work right away to not lay off anyone,” he said.

For the two shelved projects - the Lindquist and Biology buildings - Miller said his crew wasn't too far in to its work. But it had ordered more than $500,000 in materials for the Medical Education Building project when it was placed on hold.

Apex officials estimated the value of the lost work and potential revenue from this summer's cancellations around $80,000.

Still, according to Miller, Apex has a decades-old relationship with UI, and this is the first time something like this has happened.

Lehnertz stressed the university rarely bumps projects after scheduling them and awarding bids.

'Certainly we are sensitive to our local contractor community and are committed to making sure the work they do is productive,” Lehnertz said. 'But our chief responsibility is to balance the budget ...”