At a special meeting on Feb. 25, School District 2142 board members awarded contracts to Johnson Controls Inc. totaling $11.84 million for construction-related services. The vote was 6-1 with Tower-Soudan representative Andy Larson in opposition to the contracts.

The agreements are divided into two segments — one for the construction of two new K-12 schools and the other for remodeling of existing facilities.

Under the contract, Johnson Controls will be paid approximately $8.47 million for services related to the construction of two new schools — a figure that represents roughly 14 percent of the total projected construction budget for the new schools. The school in the north, located about five miles north of Cook, will serve the Cook and Orr attendance areas while the school in the south, to be built near Alborn, will serve the communities of AlBrook and Cotton.

Johnson Controls will be paid an additional $3.76 million for services related to the renovation of existing facilities at Babbit, Tower and Cherry. That figure is about 16 percent of the estimated budget for those projects.

The agreements cover standard design, engineering and commissioning services, with those and other services to be included specified in the contracts. Any additional work performed by Johnson Controls outside of the scope of the contracts will be reimbursed at hourly rates set as follows: $120 an hour for an architect, $100 an hour for an engineer, $95 an hour for a project manager and $45 an hour for a project assistant.

District Business Manager Kim Johnson said the contracts with Johnson Controls will cost less than originally anticipated. According to the Minnesota School Boards Association, the fees were about two percent below the industry standard, said Johnson.

Proceeds from the sale of $78.8 million in bonds will be used to pay for the services.

Thus far, Johnson Controls has been paid $445,000 for pre-construction services to the district. The district received $90,000 from the Iron Range Resources Agency to pay for a portion of those services, which included a study of the district’s finances, facilities and operations. Bond receipts can be used to reimburse the district for other pre-construction costs incurred from Johnson Controls, such as preparation of the review and comment document for the Minnesota Department of Education, a phone survey of district residents, and assistance with the referendum.