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Commission approves $179,877 window replacement at HPU administration building amid HVAC concerns and two opposing votes
Summary
Commission authorized a $179,877 window replacement project for the HPU administration building; some commissioners opposed, arguing HVAC upgrades should take priority while rate increases are pending.
The Hibbing Public Utilities Commission approved a $179,877 contract for window replacement at the HPU administration building on Jan. 21 amid questions about HVAC needs and timing.
Mr. Peterson described cold indoor conditions in the admin building and called the window replacement a "necessity" for a healthy workplace and a permanent investment that would be recouped over time. "This is an absolute necessity, I think, for a healthy workplace at the utility," Peterson said.
Commissioner Stokes asked whether the HVAC system was operating correctly and whether HVAC upgrades might be a higher priority. "Could this be because the HVAC system is not up to par on it?" Stokes asked. Peterson replied the building envelope needs sealing first: leaky windows would limit the effectiveness of HVAC improvements and staff plan to discuss HVAC upgrades in the spring and include them in the 2025 capital budget.
Commissioner Stokes stated on the record opposition to the window project while the utility is discussing rate increases: "I don't think this project should be done being that we're in the middle of, talking about rate increases. I think that we could use this money elsewhere," Stokes said.
Roll-call votes were recorded: Commissioner Bayless — in favor; Commissioner Babich — in favor; Chair Hart — in favor; Commissioner Sandstedt — no; Commissioner Stokes — no. The motion passed.
Staff told commissioners a separate HVAC replacement has been discussed as a capital item with a low-end budget estimate of about $300,000; that project remains under review and was slotted in the draft 2025 capital budget for later discussion. Peterson said the utility has considered partial measures such as reheats and HVAC set-point adjustments while planning a longer-term solution.
The commission approved the window replacement. Staff will coordinate procurement and scheduling and return with updates to the commission.
