Title
Mint Museum Uptown Energy Efficiency and Humidification Controls Upgrade
Action
Action:
A. Award a contract in the amount of $746,724.05 to the lowest responsive bidder McKenney’s Inc. for the Mint Museum Uptown Humidification and Controls Upgrade project,
B. Authorize the City Manager to enter into a cost sharing agreement with Mint Museum for the mechanical system upgrade at Mint Museum Uptown, and
C. Adopt a budget ordinance appropriating $746,724.05 from the Cultural Facilities Operating fund for the purpose of replacing the humidification control system in the Mint Museum Uptown.
Body
Staff Resource(s):
Mike Davis, Engineering and Property Management
William Haas, Engineering and Property Management
Explanation
§ This action allows for the replacement of the 10-year-old mechanical humidification and controls system at the Mint Museum Uptown, 500 South Tryon Street, for the following reasons:
- The existing humidification system requires annual maintenance in excess of $20,000 annually with high operating costs.
- The artwork in the Mint Museum requires strict humidity control on a 24/7 basis.
- The proposed water vaporizing humidification system will be more reliable, require less frequent maintenance, and will be significantly more energy efficient.
§ The City’s maintenance agreement with Mint Museum Uptown is modeled after a traditional owner-tenant relationship where the owner has responsibility for the structure and core infrastructure and the tenant has responsibility for the operating costs.
§ Upon completion of the upgrade there will be a significant reduction in energy use at the Museum, resulting in lower utility expenses for the Mint Museum.
§ The Mint Museum has agreed to share in the cost of the mechanical system upgrade in return for the expected long-term savings, predicted to be approximately $140,000 annually.
§ The cost sharing agreement specifies that:
- The Mint Museum will be responsible for $500,000 and the City will be responsible for $246,724.05.
- The City will advance $500,000 for the Mint Museum’s share of the cost that will be repaid to the City over a five-year period.
- The City will be responsible for managing the project.
§ The full cost of $746,724.05 to complete the upgrade will be funded from the City’s Cultural Facilities Operating Fund.
§ Mint Museum’s five annual payments totaling $500,000 will be returned to the Cultural Facilities Operating Fund.
§ On May 4, 2017 the City issued an Invitation to Bid; two bids were received from interested service providers.
§ McKenney’s Inc. was selected as the lowest responsive, responsible bidder.
§ The project is anticipated to be complete by the end of the year. The Mint Museum will remain open during this time.
Charlotte Business INClusion
No subcontracting goal was established for this contract because there are no subcontracting opportunities (Part C: Section 2.1(a) of the Charlotte Business INClusion Policy).
• McKenney’s, Inc. has committed 13.50% ($84,569) of the total contract amount to the following certified firm:
- Electric System Specialists, Inc. (SBE) ($84,569) (electrical)
Fiscal Note
Funding: Cultural Facilities Operating Fund Balance
Attachments
Attachment(s)
Cost Share Agreement
Map
Budget Ordinance