Item Description:
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PR00008431 with Energy Center Minneapolis, LLC (Cordia) to provide steam utility services to the Central Library for a ten-year term from 05/01/26 - 04/30/36 with three additional five-year renewal options, NTE $4,500,000
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Resolution:
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BE IT RESOLVED, that Agreement PR00008431 with Energy Center Minneapolis, LLC (Cordia) to provide steam to the Minneapolis Central Library, for an initial term of ten years, effective May 1, 2026 through April, 30, 2036, in an amount not to exceed $4,500,000 be approved; that the Board Chair be authorized to sign the agreement on behalf of the County; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED that the County Administrator may extend the Agreement by exercising the three additional five year renewal options, increase the Agreement amount, and amend the Agreement as necessary.
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Background:
The Minneapolis Public Library system merged with the Hennepin County Library system in January 2008. The county assumed Central Library’s existing 20-year steam utility service contract as part of the merger. This contract expires April 30, 2026. The county negotiated a new ten-year contract with Energy Center Minneapolis, LLC (Cordia) with three additional five-year renewals. Steam is approximately $300,000 per year and the contract allows for a 3% increase per year.
This request seeks approval of PR00008431 with Energy Center Minneapolis, LLC (Cordia) to provide steam utility service for an initial term of ten (10) years to Central Library effective May 1, 2026 through April 30, 2036, in an amount not to exceed $4,500,000 (including contingency for escalation in the initial term) and three additional five-year renewal options.
This contract will allow Cordia to provide steam utility services to Central Library for the purpose of heating the building.
recommendation
Recommendation from County Administrator: Recommend Approval