The Hamilton Southeastern School Board has hired an Indianapolis company to help cut energy costs at 16 of the district’s 21 buildings.

The moves are meant to save money for the cash-strapped district. After scrutinizing the contracts and energy policies for months, the School Board voted unanimously to hire Performance Services.

The company guarantees HSE a savings of about $1 million annually for a 10-year term to begin after the company completes installing equipment and making energy upgrades.

That does not mean, however, HSE is expected to save $10 million by the time the 10 years are up, said HSE attorney David Day.

According to the contract, the company agrees to cover annual shortfalls if the district does not get the guaranteed savings the company promises. For example, if the school district sees a savings of only $400,000, Performance Services would pay the district the difference.

However, if the company reimburses the school for the shortfall, and then the following year the district saves more than the guaranteed amount, HSE would owe Performance Services. The payback never would exceed the contracted amount, Day said.

Dollars originally earmarked for a new administration building funded the $2.9 million contract.

Any dollars accumulated from the agreement would go toward the district’s general operating fund, said HSE Chief Financial Officer Mike Reuter.

School officials have been talking about energy savings after a budget reduction committee recommended a series of cuts to help offset a deficit. Voters in the district approved a referendum Nov. 10 to provide $5.5 million in new funding.

Superintendent Brian Smith said he is comfortable with the contract and gave it a full recommendation.

Upgrades include boiler replacements, reduced ventilation and lighting replacements at many of the 16 schools that need the most help, the company said. Facilities manager Harry Delks said the company would begin installing the installations and upgrades after the Thanksgiving break.

The School Board also voted unanimously to adopt a preliminary snow-removal agreement with the town of Fishers. Hamilton Southeastern Schools will pay the town to remove snow from its properties. Fishers would supply the equipment and staff, and the district would pay an hourly rate depending on equipment used.

The seasonal contract expires in June and could be renewed.