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USD 418 board approves HVAC upgrade contract and lease-purchase resolution
Summary
The board approved contract awards to Building Control Services (BCS) to lead bidding and work on an HVAC improvement project and adopted a lease-purchase resolution authorizing financing up to a not-to-exceed amount to cover the project.
The McPherson USD 418 Board of Education approved a proposal to contract with Building Control Services (BCS) to lead bids and perform work for districtwide HVAC improvements and adopted a resolution to seek lease-purchase financing.
District staff told the board the project budget estimate is $657,004.26 and that a 10-year lease-purchase financing would yield an estimated annual payment of roughly $88,000. To allow flexibility during bidding, staff asked the board to approve authorization not to exceed $700,000 for financing. ‘‘We have included a number higher than the $657,000 that we would predict…not to exceed $700,000,’’ staff said.
Under the approved plan BCS will act as the district’s general contractor and solicit bids from subcontractors; the financing side will be managed through Piper Sandler, the district’s financial advisor on lease purchases. Staff clarified bids for construction work will be solicited through BCS and filtered through the district’s facilities committee for final recommendations on awards.
Board members asked whether the financing portion required public notice. Staff said this type of lease purchase (equipment and improvements) is governed by Kansas statute and does not require the publication period that would be required for lease purchases involving land or a new building.
The board voted to approve the contract with BCS and to adopt the lease-purchase resolution; motions carried by voice vote. Staff estimated project completion by July of the coming year and said they expect to come in at or below the budgeted estimate after bidding.
Next steps: district staff will initiate the work with BCS, issue subcontractor bids, solicit financing proposals for the lease purchase and report back to the board with bid results and final financing terms.
