YOUR BUSINESS AUTHORITY
Springfield, MO
Springfield Public Schools wants to demolish existing heating, ventilation and air conditioning systems in three buildings and install geothermal systems.
The Board of Education is expected to vote Feb. 24 on the $16.6 million project, which may cost as little as $11.6 million after an expected rebate.
If approved, three buildings – Pittman Elementary, Truman Elementary and Wilson’s Creek Intermediate – will switch from traditional HVAC systems to geothermal, which uses pipes and stable underground temperatures to manage indoor temperatures more efficiently.
In 2024, SPS converted three initial buildings to geothermal. They included Disney Elementary, Sequiota Elementary and Carver Middle School.
Shawn Dilday, executive director of operations, said Veregy LLC, which started in Missouri and has an office in Springfield, completed the 2024 projects and emerged as the top bidder for the 2026 work.
Sage Acorn, account manager at Veregy, said the company has completed more than 300 projects in Missouri schools.
“We really, really understand what schools need, what they go through, their challenges, so that I think give us a little bit of an edge on a lot of other companies,” said Acorn in the Feb. 10 board meeting.
Acorn said the process of switching to geothermal is quicker than the public may expect. He reminded the board that the Disney, Carver and Sequiota projects were done in one summer.
“The day school got out, we started tearing down ceilings, and we redid all of those schools in one summer and had them back up and running before school started,” Acorn said. “This is a monumental task, and we are very happy to stand before you and tell you it went very successfully.”
Acorn said the company is seeking a performance-based contract, which has a guaranteed maximum price with no change orders. For its part, the company completes all design work, engineering, demolition and hazardous material removal as part of the agreement.
“We have this designed and ready to go, and we will have this done before the end of summer,” he told the board. “We will start as soon as school gets out.”
SPS said the construction is expected to cost up to $16.6 million.
Acorn said geothermal projects are eligible for a minimum federal Inflation Reduction Act, or IRA, rebate of 30%. In this case, it would be $4.9 million, leaving the district to pay $11.6 million out of its capital projects fund.
“It allows you to get a minimum of 30% of the project paid for by federal funds. These are not competitive funds, which means you’re not applying for this and hoping that you get the grant,” Acorn told the board. “If you do the project, you will get the funds.”
Board member Maryam Mohammadkhani noted that upfront costs with geothermal are “more than double” a traditional HVAC. She asked about the benefits. In response, Acorn said the IRA rebate brings the cost down.
“Your upfront costs may be higher, but the IRA brings it in line with traditional HVAC system. It also lasts a lot longer,” Acorn said. “Instead of 15 to 25 years, you’re up in 35 or more.”
In the same Feb. 10 meeting, the board received a request to spend $3.6 million to replace the HVAC system in the two-story academic wing of Kickapoo High School and install an upgraded model with new electrical wiring and controls.
Dilday said switching to a geothermal system was not an option for Kickapoo, noting it was just a partial replacement in the oldest part of the building. The recommended vendor for the project was Gold Mechanical Inc.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
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