Winona board revises 10-year facilities plan, approves up-to-$919,250 chiller contract after bids rise

The Winona Area Public Schools Board on Monday approved a revision to its 10-year Long-Term Facilities Maintenance (LTFM) plan to account for a dramatically higher estimated cost for the Winona Senior High School chiller and then voted to award the chiller replacement contract to Winona Heat & Vent with three alternates for a total price of $919,250.

The board’s action revised the chiller line item from $421,500 — the figure used on the district’s recently certified levy — to an updated estimate of $1,100,000, a change staff said the Minnesota Department of Education (MDE) asked the district to record so levy authority would match a more realistic project cost. Director Sarah Slavi told the board: “The actual bidding of that project has proved to show us that the cost is much more expensive.”

Why it matters: the revised LTFM figure increases the amount of levy authority available for the project. Board members pressed staff about how the change would affect property taxpayers and why bids rose. Director Martin Stickney summarized a concern expressed by other members: “We’re essentially talking about levying an additional $600,000 worth of monies from people in the district.” Board members were told by staff that if final project costs come in below the revised levy amount the difference will be reconciled and returned in later accounting; staff also said the revision was required by MDE after rebids returned higher numbers.

What the board approved: after the LTFM revision the board considered bids on the chiller replacement. District staff rebid the work after earlier proposals produced bids the district found unsatisfactory. Four contractors submitted offers; Winona Heat & Vent submitted the low responsive bid. The board accepted the base bid plus three alternates intended to (1) add a chiller “desuperheater” to use waste heat for reheating rather than gas-fired boiler heat, and (2–3) add glycol protection to chilled- and hot-water piping to reduce freeze risk for outdoor and underground piping. Contractor Ken Burry (presenting for the bidder) explained that the desuperheater “uses the waste heat produced from the chiller to reheat the air as opposed to using gas to fire a boiler to reheat.” Justin Holler of district maintenance described ongoing reliability problems and repeated service calls on the existing chiller.

Schedule and scope: staff said the installation window is after the coming cooling season; the district expects to take the existing chiller out of service around Oct. 15 and complete replacement in the subsequent months. The bid includes replacement of electrical feeders from the building to the chiller and work to reuse existing water piping where feasible, which staff said reduced cost in the rebid.

Votes and record: the board adopted the LTFM revision by roll call; recorded yes votes included Monica Siegfried, Michael Hanratty, Martin Stickney, Carl Simon, Jack Hedin and Nancy Denzer. The chiller contract vote was taken by voice and the motion carried. The motion to award the contract was presented and seconded on the record and the board approved the $919,250 contract (base bid plus three alternates).

What happens next: staff will finalize contract documents with the selected contractor and proceed with the procurement and installation process. MDE will receive the revised LTFM documentation required for this health-and-safety project.

Ending: Board members who spoke during the discussion urged clearer cost-estimation steps to avoid future surprises; staff and one member of the public said inflation and supply-chain factors are driving larger-than-expected capital costs statewide.