Finance committee awards $867,000 boiler-replacement contract at North Pole High School

The Fairbanks North Star Borough Assembly Finance Committee voted unanimously to award RFP 25059 to Aaron Plumbing and Heating Company for $867,000 to replace the boilers at North Pole High School.

The award, presented at the committee meeting, follows a staff report saying the request for proposals was evaluated on understanding of scope, management plan, experience and price and that Aaron Plumbing and Heating was the highest-ranked responsive, responsible offer of three proposals received. Jonathan Shambari, Public Works staff, said the procurement was “conducted in compliance with Title 16.”

Why it matters: the boilers at North Pole High School are about 40 years old, staff said, and the project was fast-tracked so procurement and purchase can occur before design is fully complete to reduce the risk of heating failures this winter.

Staff report and timeline

Jonathan Shambari, Public Works, told the committee the contract includes replacement of the boilers, standalone boiler controls and direct digital controls. "The scope has not changed," Shambari said, referring to the bid specifications, and the borough solicited proposals scored on qualifications as well as price. He said the contractor will purchase boilers immediately upon approval; the boilers are expected to arrive in May, with construction starting when school ends.

Scope, fuel and funding

Assemblymembers asked whether the system will run on natural gas or diesel. "This will be natural gas boilers," Shambari said, and he confirmed the contract includes getting natural gas to the high school. Committee members asked where leftover funds would go; staff said project residuals lapse back to the general fund. The administration noted the appropriation for the project came from a $2,000,000 general fund appropriation previously approved by ordinance.

Background and related work

Mayor Hopkins and staff said the boiler project was originally part of a larger $9.7 million plan to replace the central heating system, add a natural-gas line, install dual-fuel burners, upgrade HVAC controls and replace certain electrical and roof-drain infrastructure; that broader project had been scheduled in the capital plan for a later fiscal year but was advanced after the school district reported imminent need.

Committee action and vote

Assemblymember Haney moved to award RFP 25059; Assemblymember Kras seconded. A roll-call vote recorded the following yes votes: Assemblymember Leginas, Assemblymember Kras, Assemblymember Haney, Assemblymember Guttenberg, Assemblymember Wilson, Assemblymember Roderman, Assemblymember O'Neil, Assemblymember Reeves Ramos and Assemblymember Kelly. The tally was 9–0; the motion carried and the award was approved.

Follow-ups requested

Committee members asked staff to provide an estimate of expected fuel savings from the more-efficient boilers; staff said the new boilers will be about 85% efficient and agreed to provide a fuel-savings estimate to the assembly. Staff also agreed to provide a breakdown of design and oversight costs so members can see the total project cost beyond the $867,000 building contract.

The committee did not take further action on the broader $9.7 million project during the award vote; members were reminded the current agenda item was the contract award.