SMETHPORT –– The Smethport Area School Board on Monday entered into a performance-based energy savings agreement with a Harrisburg company for no more than $6.2 million.

The contract with McClure Co. is pending a determination that the annual savings are guaranteed to the extent necessary to make yearly bond issue payments and to authorize the board president or the vice president to execute the agreement upon final review.

This energy savings project includes acquiring or constructing HVAC and other energy improvements to the junior-senior high and elementary schools. While the total cost of this work is estimated to be $5,998,000, an additional $50,000 will be added to the bond total for incidentals.

The directors OK’d a resolution as presented by bond counsel to finance capital projects with general obligation bonds. Directors Ray Learn and Dan Wertz cast no votes.

Audrey Bear of Robert W. Baird and Co. of Harrisburg, explained the bond purchase agreement. Attorney Ben Ried of Eckert, Seamans, Cherin and Mellott, a Harrisburg law firm, outlined the procedure for adopting a bond issue, which required a majority vote through a roll call.

After the meeting, school board president Larry Dennis signed documents, which Bear said are steps needed for the issuance of bonds.