In the summer of 2021, an unexpected HVAC failure at the Vandalia Justice Center brought urgency to an already pressing need: the renewal of aging municipal infrastructure. Despite limited resources, the City of Vandalia, Ohio, rose to the challenge—choosing to act decisively in the face of adversity. What began as an emergency repair quickly became a citywide transformation.

Recognizing the Moment: Turning Crisis into Opportunity

For years, the city of Vandalia had taken a conservative approach to building maintenance, focusing its funds on debt repayment and operating needs. While this fiscal discipline was necessary, it left many of the city’s public buildings with aging equipment and growing maintenance needs.

After retiring its building-related debt, the city set its sights on a new public works facility, planning to phase other upgrades over time. But when the police department's HVAC system failed during the hottest week of the year, the city knew it had to shift course.

With a strong desire to take action—but limited internal capacity to manage multiple concurrent projects—Vandalia turned to Energy Systems Group (ESG) for support. Together, they developed a comprehensive, citywide infrastructure renewal plan that prioritized the most critical needs and laid out a practical, forward-looking path.

Unlike conventional design-build firms, Energy Systems Group integrates the engineering principles of Energy Savings Performance Contracting (ESPC) into its approach to renovating and repairing aging buildings. This ensures that facilities are fully functional and optimized for long-term performance and cost savings. Learn more on the blog.

Building a Smarter, Stronger Vandalia

The City Council wanted to ensure every investment made sense—for today and tomorrow. Vandalia welcomed ESG’s guidance not just as a contractor, but as a trusted advisor.

“The ESG team made a clear and convincing case as to why the work needed to be done and how it should be prioritized,” said City Manager Kurt Althouse. “Their transparency and data-driven approach gave Council the confidence to move forward unanimously.”

Vandalia’s plan included:

• Roof replacements across multiple municipal buildings
• HVAC upgrades to improve comfort, reliability and efficiency
• Complete redesign of the Vandalia Recreation Center HVAC System
• Interior and exterior LED lighting, including solar-powered pedestrian pathway lights
• Traffic signal upgrades and Uninterruptable Power Supplies (UPS) at key intersections for improved safety and energy savings
• Smart street coordinated traffic signal upgrades to reduce congestion throughout the town

By leveraging new technologies—like solar lighting at the recreation center complex and an interconnected traffic signal system along the city’s main corridor—Vandalia ensured these upgrades weren’t just reactive but innovative.

Financing the Future

Executing a broad facilities upgrade is no small feat, especially for a community of roughly 15,000 residents. But Vandalia knew the right plan could unlock the resources they needed. ESG helped the city explore funding strategies and layer multiple sources to move quickly while protecting future budgets.

The primary funding source came from bond financing, supported by operational budgets, capital reserves and projected energy and operational savings. Over the next 15 years, the city expects to realize $3 million in savings—money that can be reinvested back into the community.

Partnership in Action

To keep the project moving, Vandalia embraced a design-build approach, with ESG acting as the construction manager. This streamlined delivery method gave City leaders the ability to manage timelines, control costs and keep momentum—despite limited staff capacity.

“ESG expedited engineering and development, which helped us lock in pricing early,” said Facilities Supervisor Rudy Wells. “That was critical for budget certainty during a time of economic volatility.”

And while work was underway, Vandalia didn’t stop planning. The city worked with ESG to map out a long-range capital improvement strategy—ensuring that future upgrades can be funded and prioritized without the urgency of another crisis.

A Legacy of Leadership

By acting boldly and partnering strategically, Vandalia turned a moment of disruption into a turning point. What began with an emergency HVAC failure evolved into a multi-facility modernization effort that reflects the City’s values of stewardship and service for its residents and buildings.

Vandalia didn’t just fix what was broken—they built a smarter infrastructure foundation that will serve their community for decades to come.