Lakeland district outlines $18 million school-modernization plan, prioritizes electrical and HVAC work

Lakeland Joint School District staff told the school board at a workshop that about $17.9 million in state school-modernization bond proceeds will be used for capital projects and that the district must meet state and IRS requirements when spending the money.

The guidance, staff said, restricts the funding to substantial capital investments with a useful life of at least seven years. “These are meant to be capital projects that are large scale and involve substantial investments in physical assets,” a district staff member said, summarizing Idaho Department of Education guidance on allowable uses.

District staff presented a 10-year facilities plan that groups urgent work at multiple schools. The plan, prepared with assistance from Architects West, ranks electrical systems, HVAC, plumbing and fire-safety control panels as the highest near-term priorities. Tim, the district’s facilities lead, said the Lakeland Middle School electrical system is the single most urgent need and that “they estimated a million dollars worth of repairs just in the electrical associated items with that.”

Why it matters: staff warned that failing electrical and fire-control systems pose safety and operational risks and that the state bond funds are tax-exempt proceeds subject to IRS audit and a seven-year useful-life rule. That accounting constraint led staff to remove some interior items (for example, commercial carpet) from the list of projects the district would fund from the bond proceeds.

Key needs and school-level details - Lakeland Middle School: multiple, overloaded electrical panels from a history of add-ons; staff estimates the electrical work could cost about $1,000,000 (budget estimate). The district is replacing lights to reduce panel load and plans to retain an electrical engineer to produce firm costs. (source: Tim) - Lakeland High School: multiple add-on areas with separate panels, aging air exchangers and several large rooftop/MAU units requiring inspection or replacement; exterior door/frame repairs and safety upgrades also noted. (source: facilities survey) - John Brown Elementary: siding, window and door replacement cited; several interior classrooms lack air exchange and the school recently experienced a pipe/wall drain issue; staff said some interior-improvement money could be shifted to plumbing for this site. (source: facilities notes) - Timberlake High School: an elevator has been inoperable since 2008 after an inspector removed the control panel; staff said they will get an estimate to determine repair vs. replacement. A generator at Timberlake was reported damaged years ago and may be repairable. (source: staff) - Twin Lakes: staff flagged a failing boiler array that may qualify for bond funding or plant-facility-levy funds, depending on board direction. (source: staff) - Spirit Lake, Apple, Mountain View, Garwood, Betty Keefer and others: staff reported a mix of electrical, HVAC, plumbing and interior-deferred-maintenance needs; fire-control panel replacements and sprinkler work were noted in multiple buildings.

Planned spending categories and estimates Staff presented preliminary, districtwide estimates drawn from the 10-year plan and earlier surveys. Those figures are budget-level estimates pending engineer assessments and formal bids: electrical work across the plan was estimated at about $4.6 million; fire-and-safety projects (including panels and some sprinkler work) at about $4.15 million; combined electrical and fire/safety roughly $8.8 million; HVAC work across the 10 years was estimated at about $7.7 million. Staff emphasized these are estimates and that firm costs require engineering assessments and competitive bids.

Funding sources and fiscal notes The $17.9 million in bond proceeds is deposited in a separate LGIP account and earning interest; staff reported a distribution yield of roughly 4.48% for February and noted interest receipts (staff cited about $91,000 in interest recorded for February and expected March to be the first full month including the last tranche of proceeds). Staff also described the district’s plant facility levy as an additional funding source for certain concrete, parking and carpeting projects and said the board can choose how to allocate between the bond proceeds and levy funds. Staff cautioned that the state could change distributions of any additional bond proceeds and that bond proceeds are subject to state revenue and legal constraints.

Procurement and schedule An RFQ for architect services is open and responses are due this Thursday; staff said they plan to present responses and a recommended contract to the board in April. Several projects — notably John Brown exterior work and Lakeland Middle School electrical — were identified as ones staff hopes to complete before school starts if the board approves moving forward quickly. Staff described a strategy of using base bids with alternates and bidding school-specific electrical scopes so the district is not tied to a single contractor for system work.

Fleet and equipment Facilities staff also reviewed the district’s fleet and grounds equipment inventory and said some older vehicles and equipment are candidates for surplus and auction. The district plans to bring surplus and replacement requests through the April budget cycle.

Board direction and next steps Board members did not vote to approve projects at the workshop. Staff asked for guidance and said they will bring specific project approvals and contracts as part of the FY26 budget cycle and to the April board meeting for approval. Staff also committed to bring engineering assessments and competitive bids for major items and to update the 10- and 30-year facilities matrices as part of ongoing prioritization.

The workshop materials, project lists and the RFQ responses are expected back to the board in April; staff recommended making electrical, fire-safety and key HVAC repairs the earliest priorities to reduce safety and operational risk.