Facilities committee opts for geothermal HVAC at Judicial Center after debate over costs and payback

The Dunn County Facilities Committee voted to replace the Judicial Center HVAC with a geothermal system after extended discussion over capital costs, operating savings and procurement timing.

Committee members debated the two principal options presented in a Verigee report: a conventional replacement of boilers, chiller, air handlers and controls, and a geothermal system that would install a well field with upgraded piping and lower‑capacity backup boilers. The Verigee figures cited in committee discussion showed a higher upfront cost for geothermal but substantially lower projected annual utility costs and lower maintenance over the system life.

Key financial figures discussed during the meeting included a geothermal project estimate of about $9.5 million before incentives, an anticipated federal Inflation Reduction Act (IRA) incentive of roughly $2.25 million, and an energy‑savings projection the committee described as $3.2 million over a 20‑year lifespan. The consultant numbers cited in the meeting estimated annual utility costs of approximately $237,743 for a traditional system versus about $102,696 for geothermal under the study assumptions. Committee members used those figures to illustrate an expected payback on the geothermal investment on the order of roughly 12 years, depending on actual savings and incentive realization.

Questions from supervisors focused on: the accuracy of savings projections, whether existing piping could be used to reduce cost and downtime, the feasibility of a phased replacement, whether geothermal drilling and building work require additional building expansion, and how borrowing both HVAC and a separate highway facility would affect the county debt levy. County staff described the standard public‑works procurement sequence: design, competitive selection of a designer, then competitive construction bidding; staff also said the county is exploring whether it can use Verigee’s existing design work to shorten that process and avoid paying a separate design fee.

After discussion the committee first considered a motion to proceed with a conventional system; that motion failed on a voice vote. A subsequent motion to proceed with a geothermal system was made, seconded and approved; the committee chair announced the geothermal motion passed with one vote against. The committee also voted to update the Facilities Department capital improvement plan to include the geothermal HVAC project in 2026; that CIP update passed with one opposed vote.

Staff noted implementation considerations: Verigee’s design examined replacing piping to ease transition, which could add costs; using existing piping could reduce cost but may require months of HVAC downtime during transition. Committee members discussed phasing alternatives, the debt levy impacts for different borrowing scenarios and the interaction with other capital needs such as the highway shop. County staff provided illustrative debt impacts (about $10 to $13 per $100,000 of equalized value depending on borrow level) and said staff will continue to refine budgets and procurement options.