HILLSBOROUGH — The Hillsborough School District board voted to enter a guaranteed-maximum-price contract with Schneider Electric to replace the high school heating, ventilation and air-conditioning system, approving a project value of $8,739,846 and authorizing associated financing this evening. The board also approved a Missouri Department of Natural Resources loan and a 15-year tax-exempt lease purchase agreement with Bank of America, with a $2,500,000 down payment from the district’s capital reserves.
The contract covers a full mechanical replacement of the high school system, equipment, engineering, construction management and warranty support, Schneider Electric representatives said during a presentation to the board. Daryl, identified in the presentation as Schneider Electric’s senior director of operations, told the board the contract is a guaranteed-maximum-price arrangement so the company assumes the risk for cost overruns tied to the defined scope.
District staff presented a financing plan that pairs a DNR loan in the principal amount of $1,645,203 at a 2.5% interest rate with a Bank of America tax-exempt lease to cover the project balance. Board packet materials and staff comments explained the recommended structure includes a $2,500,000 down payment from capital reserves; staff said that extra down payment would save approximately $176,000 in interest over the loan term compared with a $2,000,000 down option.
The district’s presentation included an estimate of operational savings: replacing the high school equipment is projected to reduce utility costs at the high school by about 10%, roughly $20,000 per year, not including reduced emergency repair costs. Schneider representatives said the project also includes commissioning and integration with the district’s building automation controls.
Board members discussed schedule, logistics and coordination with other summer projects. Schneider’s team described a construction approach that emphasizes pre-fabrication, phased work and summer installation windows to avoid interrupting classes. At the presentation the vendor stated an installation target of December 2026 if the district approved the contract immediately; at the same time staff discussed summer work and pre-construction activities that would precede full installation. The board memorialized approval of the contract and financing and authorized the superintendent and board president (or designees) to execute mobilization documents.
Staff emphasized the project’s place in the district’s capital plan and the tradeoffs in using capital reserves now versus preserving funds for other repairs and future projects. Board materials show current capital reserves and listed existing obligations (sidewalk and other projects) that factor into the district’s recommended down payment. During discussion staff noted prior energy projects and expected utility rebates (an estimated $60,000 utility rebate expected post-construction) but said rebate amounts were excluded from the conservative financing calculations.
The board approved the Schneider Electric contract, the DNR loan agreement and the Bank of America lease purchase agreement by voice vote. No roll-call tallies for individual members were presented in the meeting minutes.
Going forward, staff said the district will hold pre-construction and two-week look-ahead construction meetings, coordinate schedules with other on-site contractors and finalize procurement and commissioning timelines.