Solar Array Nixed from Kingston, NY, Fire Station Plans Over Costs

KINGSTON, N.Y. — The cost of the city’s new Central firehouse, to be located across from the current Central Fire Station on E O’Reilly Street, has ballooned to $10,431,000 after the city’s engineer said all bids for the project came in over estimate.

John Schultheis told city lawmakers at a special Finance and Audit Committee meeting on Thursday, March 26, that all six bids the city received came in over the $9,750,000 the city had committed for the project.

City Comptroller John Tuey told the Freeman on Friday that the $9,750,000 figure includes $8.5 million in bond funding for the construction approved by the council in November 2025 on top of the $1.2 million in initial bond funding the council authorized in November 2024, for the purchase of the building from WMCHealth and design costs for the new fire station.

Schultheis said the $8.5 million for the construction of the new firehouse proved not to be enough once additional services needed in relation to construction, inspection, furnishings and a “low voltage contract” are considered.

The full council is scheduled to vote on authorizing the additional funding at its April 7 meeting.

Committee members ultimately voted unanimously to scrap rooftop solar from the project, which would have increased the project cost by $124,000, citing a desire to wait until there are more federal incentives for solar projects if the balance of power in Washington shifts from Republicans to Democrats. Schultheis said the building is being designed to accommodate solar panels in the future.

“Maybe 2-3 years from now, there will be a lot more incentives from the federal government for municipal solar,” Michael Tierney, D-Ward 2, said.

“Right now we have to cut every penny, and we’re not storing the energy,” Majority Leader Michele Hirsch added.

Schultheis estimated the solar panels, which would have produced roughly 70,000 kilowatt-hours per year, would have had a 10-year payback.

Schultheis has said that it would be easier to have the solar panels installed while the building is constructed to avoid unforeseen challenges that may arise if they are installed in the future. Tuey has said that the estimated $14,000 in annual utility bill savings would exceed the additional $8,000 in extra annual debt service to install the panels.

Arguments about the benefits ultimately failed to persuade lawmakers to keep the array in the project.

While the rooftop solar array has been shelved for now, the project will still use a geothermal system for its heating and cooling needs, Schultheis said.

Schultheis said the city will able to get tax credits on 25% to 34% of the geothermal project. He added that these tax credits will apply to about $1 million of the total project.

Teryl Mickens, D-Ward 5, questioned with the current environment, what happens if the project cost ends up increasing again due to the contractor’s “change orders.”

Schultheis said about 5% of the project cost, or about $420,000 under the increased price tag, is set aside for “change orders.”

Still, Mickens questioned if that would be enough

Schultheis reassured Mickens that the “base bid” the contractor places will protect the city. “If the cost of steel doubles, it’s still the base bid; the contractor doesn’t have a claim,” he said. “The contractor takes that risk when they submit their bid.”

Mickens questioned whether the project could be rebid with and without a project labor agreement. She cited a firehouse project in Beacon with no project labor agreement that came in on time and on budget.

Schultheis said he’s never seen this done, and he warned that a non-project labor rebid would likely result in few bidders.

Bob Dennison, who is retired from the state Department of Transportation, said in his experience, he’s seen plenty of non-project labor agreement projects go off the rails with situations like plumbers saying they can’t do their work because the electrician hasn’t done their work.

“You end with lots of finger-pointing and your schedule is shot,” he added.

Tierney agreed.

“I don’t think rebidding is wise,” he said. “It’ll end up being a lot more money.”

Mickens said she had an issue with this project being let as a project labor agreement proposal without the council being aware of it.

Freshman lawmaker Michael Ham, D-Ward 7, noted that the project labor agreement was put out.

“Beacon is not Kingston,” he added.

Despite her concerns about the project labor agreement, Mickens ultimately agreed to endorse the project without the solar component.

The building that will be incorporated into the new Central Fire Station last housed records storage for HealthAlliance. It has also housed an ambulance company. Before that, it was owned by Central Hudson, which has an adjacent substation that will continue to be owned by the utility.

Plans call for a new five-bay station facing East O’Reilly Street in a portion of the building that will be demolished and reconstructed to be taller to accommodate the fire trucks being housed inside.

The building will also house sleeping quarters for on-duty firefighters. The deputy chief on duty will have separate sleeping quarters within the structure. The building is also planned to house showers, bathrooms, locker rooms, a kitchen big enough to have a long table, along with a “ready room” for firefighters. The station will also have a dispatch area and flex space that can be used for training and gatherings, and also as a central city emergency response location.

The building will also have storage for other firefighting equipment, including a garage space for the department’s fireboat.

The current Central Fire Station will be converted for the Kingston Fire Department’s ambulance service and to house administrative offices.

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