County starts clock on the bonding process

By Anna Jauhola
The Kittson County Commissioners have preliminarily approved issuing general obligation bonds for up to $7 million for courthouse renovations.
During the Wednesday, April 2 public hearing, the commissioners passed the resolution, which specifies the county is following a capital improvement plan.
“All that really does is start a timer for the bonding process,” said Aimee Sugden, county administrator. “The approval of this doesn’t have any major implications for today. It doesn’t say the project, as it is today, is what we’re doing for sure. Things could still change, but this resolution starts the timer that is given to us statutorily.”
During the next 30 days, the public can submit a petition asking for the matter to be put to a vote.
The project is estimated to cost $5,272,790, the largest part of which includes replacing the piping in the building’s HVAC system with either a four-pipe or two-pipe system. It also includes new digital controls, a new fire alarm system, a lighting upgrade with new ceiling grids and replacing most if not all of the 121 windows in the building. The county estimated high on the bond amount, Sugden said, to account for contingencies like the cost of closing on the bond itself and if costs of materials increase.
A dozen people from the public attended the hearing. Troy Peterson, of Karlstad, again voiced his concern that the project has already been voted down by the public. He voiced concerns about the whole project being overseen only by Johnson Controls, which is the project manager, and their plans to “put complicated systems in that will only be serviced by them. We need a system that can be serviced by locals, not just Johnson Controls.”
Pawlowski said Johnson Controls created the HVAC control system to be extremely user friendly.
Nick Thomes, an account representative with Johnson Controls, added it’s a very intuitive system that anyone can run if they can operate a smartphone. Pawlowski said Johnson Controls will also send county staff and others to training so they know how to run the system, as it will be the county’s system upon completion.
Kevin Johnson, of Lancaster, said he’s not excited about paying more taxes either but understands the need for upgrades. He was the mechanic at the Kittson County Highway Department and often was told there was no money for new motor graders, so he continually fixed them.
“I had graders out there with 12,000 to 14,000 hours on them,” Johnson said. “Now, this building is the same thing – it’s been left and left, and you’ve kicked the can down the road. We can’t keep kicking the can down the road. We got to fix it. If you don’t like it, please, come up with a good solution.”
George Hanson, of Lancaster, asked mostly about the window replacement in the project, which is still a big-ticket item. Travis Pawlowski, project manager for Johnson Controls, said each window also requires internal and external repairs to the walls. Plus, to do those repairs, they need to remove the ceiling tiles and grid, which is why that portion of the project was included, said Commissioner Loren Younggren.
Pawlowski said Foss Architects, of Fargo, built the window specifications and Marvin Windows designed a window to match the current windows.
Johnson Controls would not release individual bids for the projects involved, but the county board has the estimated numbers from the company. They will be released to the county board only when the board signs a contract with Johnson Controls to start the project, Pawlowski said.
“So when we accept a contract – which we aren’t accepting until we get through a 30-day waiting period – if we get petitioned, and it has to go to a vote, then we’re on the line to pay that,” Sugden said, adding they have the cost for the window project and “it is substantially lower than the first bid.”
Aaron Younggren, of Hallock, asked how the board has a cost for the overall project if they don’t know the total scope of work yet. Sugden said they have the estimated cost from the original bid package.
“We are still combing through some of those projects and the scope of what we do at the end of the day may be different than what was originally bid,” Sugden said.
Peterson asked what happens if the public brings a petition again and the vote fails. Commissioner Younggren said the board has other ways of financing repairs, such as a lease financing bond. However, the general obligation bond is the cheapest route with the least amount of interest.
A few people asked why they couldn’t just build a new courthouse.
Johnson said he talked to a few people and another county that recently built a new courthouse because he had the same question.
“I was given figures anywhere from $35 million to $40 million by the time you get the building on ground level, in ADA compliance,” he said.
Sugden said they were told the same thing last year that a new similar-sized courthouse, built at ground level would be approximately $35 million.
“That must show the difference between public money and private money, because I can build one heck of a building for $5 million,” Peterson said.
Commissioner Theresia Gillie noted public buildings must be built to different standards and adhere to state statutes.
The core of the project is the HVAC piping system. The board has yet to decide between a four-pipe system and a two-pipe system. A four-pipe system would allow for heating and cooling at the same time, which provides for individual room temperature control and humidity control. A two-pipe system would, of course, save money with fewer components and less installation. However, it doesn’t provide the same level of comfort. Sugden said there is approximately a $280,000 difference between a four-pipe and two-pipe system.
Paul Dziengel, of Kennedy, asked whether there will be energy and cost savings by installing new windows and the HVAC system.
“We do expect savings on electrical,” said Pawlowski, referencing the changes to the upgraded electrical service entrance. “As far as HVAC, we have not done a study on it, and were not asked to complete a study. It takes quite a bit of time to complete a study.”
Sugden said the goal of doing the HVAC system and other projects at the same time is to spread out the debt and making the well-kept courthouse last even longer with a new system. Johnson Controls said the new pipes have lifespans of about 50 years.
Should the 30-day waiting period come and go without a petition, and the county approves the sale of bonds to pursue the project, the cost will be spread across 15 years. The first year the bond would reflect on taxpayers’ bills would be 2026, Sugden said.
The project plans and five-year capital improvement plan are available for review on the county’s website at co.kittson.mn.us or in person at the county administrator’s office at the courthouse.