DEPARTMENT: Facilities Management
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Third Contract Amendment With Peterson Sheet Metal, Inc. For Administration Center Boilers And Chiller Replacement Project And Amend 2025 Facilities Capital Improvement Plan Budget
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PURPOSE/ACTION REQUESTED
Authorize the execution of the third contract amendment with Peterson Sheet Metal, Inc., to replace cooling tower system piping and pumps in support of the Administration Center (ADC) Boilers and Chiller Replacement project in Hastings, MN. Amend the 2025 Facilities Capital Improvement Plan to shift money to cover this new scope. This project was originally included in the 2023 Adopted Facilities Capital Improvement Program (CIP) Budget.
SUMMARY
Dakota County’s ADC boilers were replaced in the summer of 2024 and the chiller system is being replaced now during the winter of 2024/2025, as was authorized by Resolution No. 23-382 (August 22, 2023). During the chiller replacement construction this winter, the existing condenser-side piping and water pumps were inspected and found to have significant corrosion. Replacement of this piping and two pumps is beyond the scope of the original project. However, this winter is the best time to correct these deficiencies. With authorization of this action, the work can be completed by late spring and used in this upcoming cooling season.
Pricing for this new work has been provided by Peterson Sheet Metal, Inc., with a proposed cost of $123,723.00. Staff requests authorization to execute a third contract amendment with Peterson Sheet Metal, Inc. to incorporate the replacement of the piping and chilled water pumps into the ADC Boilers and Chiller Replacement project. This will require a transfer of this full amount of funding from the 2025 Facilities CIP authorized Infrastructure Maintenance Allocation project into the ADC Boilers and Chiller Replacement project. Two contract amendments have already been executed, which changed the completion date and included other work changes. These two previous contract amendments were below the original budget and policy thresholds requiring Board action. This third contract amendment to replace the piping and chilled water pumps totaling $123,723.00 needs Board approval because the amount exceeds the extended limit of the original contract authority and exceeds the original project budget.
RECOMMENDATION
recommendation
Staff recommends authorizing a third contract amendment with Peterson Sheet Metal, Inc. in the sum of $123,723.00 for the replacement of the piping and chilled water pumps for the benefit of the ADC Boilers and Chiller Replacement project. To pay for this increase, staff recommends transferring $123,723.00 in funding from the Infrastructure Maintenance Allocation project, authorized in the 2025 Facilities CIP, to the original ADC Boilers and Chiller Replacement project.
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EXPLANATION OF FISCAL/FTE IMPACTS
Prior Facilities CIP budgets did not include funding for replacement of the condenser-side chilled water piping and pumps. However, the 2025 Adopted Facilities CIP includes the Infrastructure Maintenance Allocation project with a budget of $2,925,000, which is sufficient to fund the necessary $123,723.00 for the piping and pump replacements as part of the ADC Boilers And Chiller Replacement project. A budget amendment is needed to move the funding from the set aside to the project.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, the 2023 Building (now termed “Facilities”) Capital Improvement Program (CIP) Adopted Budget authorized the Administration Center Boilers And Chiller Replacement project; and
WHEREAS, the Dakota County Board Of Commissioners authorized the award of construction of the Administration Center Boilers and Chiller Replacement project to Peterson Sheet Metal, Inc. in an amount not to exceed $876,000 by Resolution No. 23-382 (August 22, 2023); and
WHEREAS, Dakota County Facilities Management staff believes that replacement of the existing condenser-side chilled water piping and pumps for the Administration Center Boilers and Chiller Replacement project will be beneficial because it will fully renew these systems near the end of their useful life; and
WHEREAS, Peterson Sheet Metal, Inc., has provided a price of $123,723.00 for the replacement of the piping and pumps for the benefit of the project; and
WHEREAS, the Infrastructure Maintenance Allocation project was included within the 2025 Adopted Facilities CIP with a budget of $2,925,000; and
WHEREAS, sufficient funding in the amount of $123,723.00 exists within the Infrastructure Allocation project to support the increased scope of the Administration Center Boilers and Chiller Replacement project.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Facilities Management Director to execute a third contract amendment for the Administration Center Boilers and Chiller Replacement project to Peterson Sheet Metal, Inc., 3728 Bemidji Avenue North, Bemidji, MN 56601, in an amount not to exceed $123,723.00 for a total maximum contract total not to exceed $1,017,973.00, subject to approval by the County Attorney’s office as to form; and
BE IT FURTHER RESOLVED, That the 2025 Buildings Capital Improvement Program budget is hereby amended as follows:
Expense
Infrastructure Maintenance Allocation (2000242) ($123,723)
Administration Center Boilers And Chiller Replacement (2000003) $123,723
Total Expense $0
Revenue
Infrastructure Maintenance Allocation (2000242) - County Funding ($123,723)
ADC Boilers And Chiller Replacement (2000003) - County Funding $123,723
Total Revenue $0
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PREVIOUS BOARD ACTION
23-382, 08/22/23
ATTACHMENTS
None.
BOARD GOALS
☐ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
CONTACT
Department Head: Mike Lexvold
Author: Mike Wiese