The city manager presented an in-depth analysis of the HVAC issue, highlighting the system’s poor condition due to lack of maintenance and the health risks posed by inefficient air conditioning, such as mold and poor indoor air quality. The current system, installed in 2008, was supposed to last at least 15 years, but with 18 months of neglect, its lifespan might be drastically shortened. The cost of maintaining the aging HVAC units has already surpassed the annual budget allocated for this purpose within half a fiscal year.

A request for proposal (RFP) for the design and build of a new HVAC system has been initiated, with the aim to simplify the current setup of 50 units to a more manageable configuration. The proposal also accounts for the replacement of all associated ducts, coils, and accessories. The RFP is set to close on May 6, allowing vendors to suggest the most cost-effective solution for the number of units per floor.

Financing the HVAC overhaul became a part of the discussion. The idea was to refinance a bond a year early, capitalizing on the city’s good credit history, as emphasized by the city manager who noted the city had never missed a bond payment. The refinancing plan aims to reduce the city’s debt from $6 million down to $3 million and potentially further down to $1.5 million. An important point clarified during the discussion was that the refinancing would not be a burden on residents but handled strictly through bank negotiations.

The commission considered the challenges presented by the current banking arrangements, such as non-interest bearing accounts and the fees charged for holding city funds. The need for bond counsel to review the RFP for bank selection was discussed, as well as the necessity to compare various financing options, including seeking funds from finance companies. A concern was the financial impact of different financing methods and the potential costs they could entail, such as higher interest rates and maintenance expenses. The commission expressed the need to analyze all options comprehensively before committing to a course of action.

Furthering the action plan, it was decided to involve a bond counsel in preparing an RFP. The commission planned to reconvene on April 24th to discuss the next steps. They also considered whether to address the HVAC replacement and financing issues at the regular commission meeting on June 12th or to schedule a special meeting dedicated to the topic.