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County weighing multimillion-dollar HVAC replacement after repeated failures

Custer County Board of Commissioners · May 13, 2026

Summary

Maintenance officials told commissioners that recurring compressor failures and frequent repairs have led to estimates of $3.95M–$4.53M to replace the courthouse HVAC system; the county is exploring alternatives and procurement approaches, including cooperative purchasing and hiring an engineer to produce bid-ready plans.

County maintenance staff warned commissioners that the courthouse HVAC system is near end-of-life after frequent compressor failures and escalating repairs. Joe Panza said the system has incurred about $37,000 in repairs over the last 4½ years and cited two replacement estimates: "$4.53 million for a 4-pipe boiler/chiller system and $3.95 million for a 2-pipe system." Panza said some zones are not functioning, the server room has a separate system, and interim repairs are costly.

The Commission discussed options including mini-splits and cove heat as less-expensive alternatives and reviewed an engineering fee proposal from Skyline Engineering. Panza noted that, if the county uses a purchasing cooperative, a full bid process might be unnecessary, but if the county opens bids it would first need a biddable plan (estimated engineering plan cost was discussed). Commissioners asked staff to return with cost comparisons, funding options, and procurement recommendations.

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