Item Coversheet

Board Action Request
22-0381


Item Description:
Increase 2022 Capital Budget for project 1008794 Government Center HVAC Rehabilitation, Decrease prospective 2023-2027 CIP by same amount, and update the project number.
Resolution:

BE IT RESOLVED, that the 2022 capital budget for project 1008794 Government Center HVAC Rehabilitation be increased by $15,000,000 and that the prospective 2023-2027 Capital Improvement Program be reduced by the same amount comprised of a $7,000,000 reduction in 2023 and an $8,000,000 reduction in 2024, to fully fund the construction contract at the time of execution; and  

 

BE IT FURTHER RESOLVED, that the project number be updated to Capital Project 1008794.

Background:

This project will upgrade aging Heating, Ventilation and Air Conditioning (HVAC) and electrical infrastructure that has served the Government Center since 1974. The project also implements energy conservation opportunities identified in a recommissioning study completed in 2018. 

In March 2020, the county board approved Resolution 20-0134 which authorized Ericksen Ellison and Associates, Inc. to proceed with the design development and construction documents for the project; authorized Facility Services to advertise and receive proposals for construction; authorized the County Administrator to award the contract to the contractor offering the best value within the approved project budget; and authorized the chair of the board to sign the contracts on behalf of the county after the performance and payment bonds have been properly executed; and authorized the controller to disburse funds as directed. The resolution identified the project number as 1000874. This request updates that to the correct project number, 1008794.

 

A Request for Proposals for construction was released on June 21, 2022. Three proposals were received on August 3, 2022. Through the best value procurement process, Noor Companies received the highest overall rating, based on the cost, written submittals, and interviews of critical team members.  Noor Construction is a women and minority-owned company.

 

The total project budget identified in the approved 2022-2026 Capital Improvement Program Capital Budget was spread over four years based on the anticipated project schedule. Although the work will occur over the next four years, the implementation will proceed under a single contract in the amount of approximately $21,025,867 to Noor Companies, requiring equivalent budget authority in 2022 to award the contract. There is currently $7,000,000 of committed funds in the project budget. This request accelerates $15,000,000 in programmed funding from 2023 ($7,000,000) and 2024 ($8,000,000) into 2022 for a total 2022 budget of $22,000,000. Years 2023 and 2024 will be reduced as part of the 2023-2027 Capital Improvement Program Administrator Amendment process, consistent with this resolution. 

 

Current Request: Increase 2022 Capital Budget for project 1008794 Government Center HVAC Rehabilitation and decrease the prospective 2023-2027 CIP by same amount, and update the project number.

 

Impact/Outcomes: These actions allow Hennepin County to enter into a contract with Noor Companies for the Government Center HVAC Rehabilitation project.

Recommendation from County Administrator: Recommend Approval