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Commissioner Brown - Office of Capital Improvements - To Appropriate $12,050,500 from the Community Investment Fund and Transfer to the General Government Capital Fund for the Health Department Major Renovation and Expansion Project and Approve the Reimbursement Declaration
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STAFF CONTACT
Ray Maxwell, P.E. - Executive Director of Capital Projects - 704-862-7551
BUDGET IMPACT
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Community Investment Fund: Increase fund balance appropriation and transfers out by $12,050,500
General Government Capital Fund: Increase transfers in and expense by $12,050,500
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BACKGROUND
The Health Department Major Renovation and Expansion project is underway. The original plan called for using the Building Inspections fund balance to cover part of the remaining need, but those funds are not eligible for this project. The County must therefore secure outside financing to close the current funding gap.
During Phase 1 of construction, it was discovered that the exterior skin of the building is deteriorating and needs to be replaced. The stucco applied when the building was constructed has trapped moisture, causing deterioration of the building components behind it. This scope of work was not included in the original bid documents and therefore was not reflected in the awarded bid. The current estimated cost to replace the exterior is $2,050,500.
Staff recommends including the building's exterior replacement in the upcoming County financing plan. This action will efficiently address an identified $12,050,500 funding gap, protect the concurrent interior renovations, and prevent leaving a known building envelope deficiency unresolved upon project completion.
Approval of the Board Action authorizes staff to proceed with obtaining gap funding for the project via outside financing. Upon identifying the most favorable financing terms and conditions, staff will return to the Board to seek final approval.
The County Attorney is authorized to draft the necessary change ord...
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