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Board approves $657,000 HVAC improvement plan, authorizes lease-purchase financing
Summary
USD 418 approved a proposal to proceed with HVAC improvements with a budget estimate of $657,004.26 and directed staff to pursue lease-purchase financing (a 10-year payment estimated at about $88,000 annually), with a not-to-exceed financing authorization of $700,000 to cover contingencies.
The McPherson USD 418 board voted to approve an HVAC improvements proposal and to adopt a resolution authorizing lease-purchase financing to pay for the work.
District staff presented the proposal with a budgeted estimate of $657,004.26 and said the estimated annual payment on a 10-year lease would be roughly $88,000. To avoid having to return for a supplemental authorization if bids came in higher, staff recommended a 'not to exceed' financing authorization of $700,000.
Staff explained the process: Building Control Services (BCS) would serve as the district's general contractor and would solicit bids from subcontractors for the work; financing for the lease purchase would be bid separately, with Piper Sandler handling the district's lease-purchase financing engagement.
Staff also clarified that a lease purchase for equipment of this type does not require a public-notice publication period under the statute cited for equipment acquisitions; staff offered to provide the specific statutory citation on request.
The board adopted the resolution to pursue financing and separately approved moving forward with the HVAC improvements; both motions carried by voice vote.
Next steps: staff will initiate work with BCS, run the contractor bidding process and solicit financing proposals for the lease-purchase arrangement before bringing final financing terms back to the board.
