Why Deadwood Pays Less for HVAC Maintenance Each Year
For four years running, maintenance costs are declining for the City of Deadwood
OFFICIAL: City officials attribute reductions to maintenance costs to improved system condition and annual cost analysis, rather than reduced service.
The City of Deadwood’s HVAC maintenance program provides a practical example of how preventive maintenance, when paired with operational consistency and annual cost analysis, can reduce total maintenance costs over time. As reported by the Black Hills Pioneer, the annual HVAC maintenance cost has declined for four consecutive years – from $81,995 in 2023 to $67,665 in 2026 – while continuing to cover preventive maintenance and inspections for 18 city-owned facilities.
Initial System Conditions
When Rasmussen Mechanical Services assumed responsibility for the contract, HVAC systems across city facilities were being maintained internally and were in generally poor condition due to inconsistent maintenance practices. Limited documentation and historical data also left room for improvement.
Operational Changes
Rasmussen Mechanical Services focused on improving the execution of preventive maintenance year over year to bring costs down. Preventive maintenance tasking was refined to better align with each individual piece of equipment, with continual equipment data collection to inform ongoing program refinement.
Technician continuity was maintained across all 18 facilities, reducing time spent locating equipment and improving consistency of service delivery.
Material costs were controlled through annual audits of existing inventory and purchasing only what was required for the following year. RMS also leveraged purchasing strategies that lowered material costs and passed those savings directly on to the City.
Each year, estimated labor hours were compared to actual hours at each site. As system condition improved and maintenance became more predictable, actual labor requirements decreased. Pricing was adjusted to reflect true service effort, ensuring the City benefited directly from efficiency gains while maintaining service quality and responsiveness.
Outcome
The results of these operational changes are reflected in the City of Deadwood’s publicly approved maintenance contracts. City officials attributed the reductions to improved system condition and annual cost analysis rather than reduced service.
Lornie Stalder, director of public works, said Rasmussen has been an excellent partner with the city, frequently performing repairs the same day.
The program now delivers healthier systems, more predictable budgeting, and a maintenance cost structure aligned with actual service requirements, demonstrating how disciplined preventive maintenance can reduce total cost of ownership without compromising performance or responsiveness.
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