School board adopts revised LTFM plan and approves $919,250 chiller contract after higher bids

The Winona Area Public School District board on Feb. 19 approved a revision to its 10‑year Long Term Facilities Maintenance (LTFM) plan and awarded a contract to replace the Winona Senior High School chiller.

The revision updates the estimated cost for the chiller replacement from $421,500 to a planning figure of $1,100,000 and was adopted by resolution after the Minnesota Department of Education (MDE) requested a revised cost estimate. The board then voted to award a construction contract to Winona Heat & Vent, Inc., for $919,250 to supply the chiller and accept three alternates (a D‑superheater, glycol for the chilled‑water loop and glycol for the hot‑water loop).

Why it matters: MDE requires school districts to keep their LTFM 10‑year plans current when project costs change. Because the chiller project exceeds $100,000 at a single site and affects the district’s health‑and‑safety levy authority, updating the plan establishes the levy mechanism to finance the work without voter approval.

Board discussion and funding mechanics Board members pressed staff about the jump in estimated cost and the effect on property taxpayers. Director Sarah Slavi, who led the presentation, said the earlier $421,500 figure was based on an older quote and that more recent bids and contractor estimates drove the higher planning number the department requested.

“The way the money will flow is the difference between the actual cost of the project and the amount being levied, based on the currently certified levy, will come through as an adjustment on the next levy cycle,” Slavi said. She and others explained the district’s timeline: the levy change would be reflected in the '25 pay '26 levy and the revenue would post in the district’s fiscal 2027 accounting, per the presentation.

Several board members expressed concern about the size of the increase. “To me, these are jaw‑dropping numbers,” one board member said, raising questions about the impact on residents on fixed incomes. Other board members and staff said inflation and supply‑chain pressures have increased capital costs district‑ and industry‑wide and that LTFM has prevented earlier tradeoffs between building repairs and classroom programs.

Scope and technical choices District staff and the contractor described the selected alternates and technical reasons for them. Ben Barry of Willard Cactus Divisionaires (contractor representative) and Justin Holler (district maintenance) explained that: - Alternate 1 (D‑superheater) uses waste heat from the chiller to reheat overcooled air, potentially avoiding a future boiler replacement and reducing gas/electric use. - Alternates 2 and 3 add glycol to chilled‑water and hot‑water loops to provide freeze protection for rooftop and underground piping; staff said several district buildings already use glycol. - The rebid allowed reuse of existing piping in many places, which lowered the second round of bids; the base bid fell from about $735,000 on the first bid to about $700,000 on rebid, and total awarded with alternates was $919,250.

Timing and next steps Contract paperwork will be finalized so the contractor can order long‑lead equipment. Major construction is scheduled for after the summer cooling season (district staff said work would begin after about Oct. 15) because the chiller must remain in service through the cooling season. Staff said the current chiller is operating but with reduced capacity and that one compressor is not repairable.

Formal actions - LTFM resolution adopted (roll call): board approved the revised 10‑year LTFM plan reflecting the $1,100,000 planning figure for the chiller project. Those recorded as voting yes in the roll call were Monica Siegfried; Michael Hanratty; Martin Stickney; Carl Simon; Jack Hedin; and Nancy Denzer. Motion carried. - Bid award approved (voice vote): the board awarded the chiller contract to Winona Heat & Vent for $919,250, including alternates 1–3. Motion carried.

Clarifying details - The $1,100,000 figure introduced into the LTFM plan is a rounded planning estimate that includes contractor price, engineering and contingency; actual project costs will be reconciled after completion. - Staff said the difference between previously certified levy authority and the actual project cost will be adjusted in the district’s next levy cycle so levy authority will cover the project before contracting. - Rebidding reduced some costs largely because of reusing existing water piping and scheduling adjustments; electrical feeder replacement to the chiller is included in the base bid because conduit and feeders are aged and have performance issues.

Who spoke (selected) - Sarah Slavi, Director (district finance/operations), Winona Area Public Schools (presentation and budget/LTFM explanation) - Dawn Brzezinski, Superintendent, Winona Area Public Schools (presenter/board liaison when noted) - Ben Barry, contractor representative, Willard Cactus Divisionaires (bid presentation) - Justin Holler, Maintenance, Winona Area Public Schools (maintenance details and history)

What happens next Contract documents will be finalized and staff will manage procurement, with construction scheduled after the cooling season to avoid interrupting building climate control during summer months. The board will see updated LTFM documents as needed and will reconcile the final project cost against the levy authority once the project closes.

Ending: The project and updated LTFM figures will return in district financial reporting and to the Department of Education for final recordkeeping; staff invited board members to direct further questions to the facilities and finance teams as bids and orders progress.