BE IT RESOLVED, that the Hennepin County Board of Commissioners hereby authorizes up to $5,000,000 of its federal funding from the Coronavirus Local Fiscal Recovery Fund available under section 603 of the Social Security Act, as added by section 9901 of the American Rescue Plan Act (“Federal Pandemic Funds”), to be utilized for eligible costs, operations and services to improve the efficiency of the heating, ventilation, and air conditioning (HVAC) systems operating in pandemic conditions; and

BE IT FURTHER RESOLVED, in order to implement the above resolving clause, the County Administrator is authorized to negotiate agreements with providers for eligible services to evaluate and implement HVAC maintenance as a result of the pandemic from November 16, 2021 through December 31, 2024 in a total not to exceed amount of $5,000,000; this includes but is not limited to negotiating amendments and increasing the not to exceed amounts for existing agreements with providers, negotiating new agreements with providers, or transferring funds to other units of government; that following review and approval by the County Attorney’s Office, the Chair of the board be authorized to sign the agreements; and the Controller be authorized to transfer or disburse funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator is directed to seek alternative funding sources for these purposes; and that to the extent other state or federal funding is received for the expenditures authorized by this Resolution, the County Administrator is delegated authority to reduce the above authorization of Federal Pandemic Funds if necessary to ensure there is no duplication of assistance.

On March 11, 2021, the American Rescue Plan Act of 2021 was signed into law, including the appropriation of more than $130 billion to the Coronavirus Local Fiscal Recovery Fund, for making payments to metropolitan cities, counties, and other units of local government to mitigate the fiscal effects stemming from the public health emergency. Hennepin County expects to receive direct payments from the U.S. Treasury totaling more than $220 million, and received the first-half payment of $122.9 million in May of 2021.

The American Rescue Plan Act provides that money from the Coronavirus Local Fiscal Recovery Fund may only be used to cover certain costs incurred by December 31, 2024, including costs to respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID–19) or its negative economic impacts. Under the available guidance from the U.S. Treasury, this category of eligible costs can include expenses for COVID-19 mitigation and prevention, including ventilation improvements in congregate settings, health care settings, or other key locations, as well as capital investments in public facilities to meet pandemic operational needs, such as physical plant improvements to public hospitals and health clinics or adaptations to public buildings to implement COVID-19 mitigation tactics.

As a result of the COVID-19 public health emergency and based on recommended best practices per the Center of Disease Control and the American Society of Heating, Refrigeration, Air-Conditioning  Engineers (ASHRAE) for providing safe buildings to the public, Hennepin County made improvements to the ventilation system in its facilities to reduce the spread of COVID-19. This project will maintain this safe level of ventilation while improving operational efficiency and reducing energy use.  By providing safe buildings the county is protecting the health and wellness of the staff and residents that visit the facilities. Priority will be given to 24/7 facilities such as correctional institutions plus other key buildings serving residents such as the Government Center.

Funding will be used to study and implement needed improvements to building heating, ventilation, and air conditioning (HVAC) and control systems in county facilities. This will allow better management of energy use and reduced operational costs associated with maintaining pandemic level ventilation requirements.

This request seeks authority to use $5,000,000 in Federal Pandemic Funds toward the proposed $8,000,000 Countywide HVAC COVID Response (1008987) 2022-2026 Capital Improvement Program budget. The breakdown of the anticipated Federal Pandemic Funds funding expenditures from 2021 to 2024 are:

• Consulting ($250,000) - review ventilation and controls at all county buildings priority given to 24/7 facilities
• HVAC equipment ($3,000,000) - make modifications identified in the study to reduce operational costs and energy
• Air filters ($500,000) - purchase to ensure continued use of MERV 13 filters or higher
• Building controls ($1,250,000) - standardize “on control” strategies for pandemic mode to save energy

The current request is to authorize federal funding in the amount of up to $5,000,000 to assist with maintenance costs and to contract for consulting and contractor services related to the HVAC systems operating under pandemic conditions.

This board action request aligns with Hennepin County disparity reduction efforts as it provides safe indoor air quality for those residents in county buildings, including those residents with income and health disparities.  

Current Request: The current request is to authorize federal funding in the amount of up to $5,000,000 to assist with maintenance costs and to contract for consulting and contractor services related to the HVAC systems operating under pandemic conditions.

Impact/Outcomes: This board action will improve operational efficiencies under pandemic conditions resulting in an estimated cost savings of $100,000 annually in energy and operational costs.