Medford school board approves bid for HVAC work this summer – Southernminn.com

MEDFORD During a special meeting Friday, the Medford school board reached a decision regarding replacement of HVAC units on the schools roof.

The district awarded the contract to the lowest of four bidders, Owatonna Heating & Cooling, to install 36 Aaon units at a total cost of $2,243,070. The districts account from bond sales currently has $1.6 million remaining, so theyll cover the rest of the HVAC costs with money from the general fund.

Both decisions to install all 36 units, and to pay for it through a combination of bond sale money and fund balance were unanimous. Bids for the HVAC project were received March 30, and the project was split into four groups for bid purposes for both Aaon and Carrier units for a total of eight groups (one base bid and seven alternates.)

Bids were for 20 units, 25, 29 or the 36 the board ultimately opted for, and work is scheduled to be completed by the time the 2017-2018 school year begins this fall. The bids included labor, materials, electrical and structural work, but not assorted fees and an 8 percent contingency built in for unexpected costs.

The initial structural analysis was completed for the weights of the Aaon units. Since the Carrier units are heavier, they wouldve required additional structural work according to Rich Dahman, Medfords superintendent. While the Carrier units are less expensive, they wouldve led to roughly $50,000 in added structural adjustment costs.

The Aaon units also provide better control in AC mode, have a longer warranty on heat exchangers and boast better filters, according to the HVAC project summary provided by the district. In addition, Aaon units will provide consistency with current units and eliminate the need for additional structural work.

Dahman recommended accepting the bid from Owatonna Heating & Cooling to install 36 Aaon units, advice the board followed. Other options the board could have selected included awarding the project to a different bidder, utilizing Carrier units, and/or reducing the number of units replaced in 2017.

He also recommended paying any additional costs for the project, above the funds available in the bond sale account, out of the districts fund balance, which the board also accepted. Other options included paying for additional costs through a capital facilities bond and/or delaying the replacement of some units.

Delaying a portion of the project would have allowed the district to remain within budget, according to the project summary. In addition, the units over the locker rooms have been the most trouble-free to date, so delaying that group couldve potentially allowed Medford to replace them and the roof which is on the 14th year of a 20-year warranty at the same time, placing the district on a timeline where Medford is not replacing all units at the same time.

The total cost would have increased, however, if a portion was delayed, due to inflation, buying less in bulk and labor costs, and completing the entire project this summer will create consistency with one contractor installing all the units, according to the summary. This ensures that all units and controls are working together effectively.

Paying additional costs from a bond sale wouldve spread the costs out over time and increased flexibility with a larger fund balance while also increasing the total cost interest and fees and leaving less for future projects, according to the summary. Paying additional costs from the fund balance avoids fees and interest, and that method still leaves Medford above the districts policy of 25 percent of expenditures.

Reach reporter Ryan Anderson at 507-444-2376 or follow him onTwitter.com@randerson_ryan

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Medford school board approves bid for HVAC work this summer - Southernminn.com