Board approves geothermal change orders pending payroll verification to pursue tax credit

The Winona Area Public School District board voted to approve two contract change orders tied to geothermal construction work, contingent on third-party payroll verification.

Superintendent Brzezinski said the change orders reflect staffing adjustments made this past summer so contractors meet prevailing-wage and apprenticeship ratios required for tax-credit documentation. The district is pursuing a federal/state tax-credit filing (staff said a maximum 30% credit is possible for eligible expenses) and must verify payroll data through consultants at Baker Tilly to support claimed labor costs.

Director Lennox moved the motion to approve the change orders up to the dollar amounts shown in the packet, contingent on Baker Tilly confirming that the payroll records reflect the increased labor costs; a second was recorded and the motion passed by voice vote.

Packet materials listed two change-order amounts as budget references: approximately $270,107 for Winona Heat and Vent and about $305,777.95 for Hardy (Harding) Mechanical. Staff said payment would be made from existing geothermal bond construction funds if payroll verification confirms the amounts.

The board’s motion authorized approval up to the amounts presented; staff said if later verification shows lower actual costs, the board would be notified and any adjustment brought back for action.

What’s next: Baker Tilly will confirm whether payroll entries support the claimed labor costs and staff will return with any required adjustments or final invoices prior to payment.