The first Karlstad City Council meeting of the year was called to order on January 2, 2018, at 7 p.m. and the first order of business was to have Jon Paul and Travis Pawlowski of Johnson Controls provide the council with another update on the Karlstad Clinic Repairs.
According to Johnson Controls, the energy savings to the clinic with the new equipment will justify the cost. With a steam heated furnace and propane backup system to replace the fuel used presently, and with the new Variable Air Volume (VAV) boxes strategically placed, the city is looking to save $10,000 per annum.
Financing options were given by Johnson Controls. One option putting the city into a five-year monthly payment contract at a 6.5 percent interest rate.
The council didn’t go for the financing plan immediately. With the project estimated to be about $800K, the council asked if there was any way Johnson Controls could knock down the price to be around $598K. Jon Paul said that he would look into adding a three year extended warranty on the Johnson Controls equipment as well as knock down the interest rate to three percent. Otherwise, the council could seek a loan from a bank to pay Johnson Controls for the project, but none of the council members were interested in doing that.
For more on the city council, see this week’s North Star News.