Cowlitz County contractors report Hall of Justice HVAC and electrical work under budget; funding authorization sought

Millig Design Build told the Cowlitz County Board of Commissioners that competitive subcontractor bids left the Hall of Justice mechanical, controls and electrical upgrade within the county's $9 million budget, and staff will present a guaranteed maximum price (GMP) for funding authorization in the coming week.

"I am so pleased to be here to say that we are under budget," Lauren Donnelly of Millig said during a presentation by county public services staff and Milig (sic). Donnelly outlined a preconstruction process that prioritized constructability, occupant safety and cost control and described the forthcoming contract as a fully open‑book guaranteed maximum price through the Washington Department of Enterprise Services (DES).

The project scope includes full HVAC system replacement and controls modernization, replacement of recalled Federal Pacific electrical panels, main distribution upgrades, asbestos abatement where found primarily in pipe insulation, refurbishment of the perimeter hydronic heating, rooftop equipment installation, and selective ceiling tile replacement. Millig said it will reuse roughly 98% of existing ductwork where feasible and integrate the old EOC/911 HVAC replacement into the buildingwide work.

Millig identified Harris Mechanical (apparently the low proposer) as the apparent winner for the mechanical scope; Core Electric, ADK, Hammer Electric and JH Kelly bid the electrical work and ADK/Core provided competitive pricing for distributed electrical and panel replacement manufacturing. Millig said there are about 42 recalled Federal Pacific panels in the building that must be addressed.

Financials Millig presented: - County budget set in August 2023 for HVAC controls and electrical: approximately $9,000,000. - Millig's net project cost to the county after preliminary utility and state incentives: $8,375,000 (presented as $8.375 million on the slide). Millig said Cowlitz PUD preliminarily approved a utility incentive of "about $300,000" and an "early adopter" Washington incentive may add roughly $260,000, lowering the net cost. - Projected annual energy and maintenance savings: Millig estimated more than $100,000 per year and nearly 1,000,000 kWh saved annually.

Schedule and contracting Donnelly said Millig will deliver the construction proposal to the DES project manager (named in the presentation) for review and that the county will receive DES-reviewed contracts and a funding request for the board. Millig requested a funding authorization to allow DES to draft contracts and to lock equipment pricing. Key timing noted in the presentation: - Bids received and held for 45 days; Millig aimed to deliver the GMP to DES by the end of the week or start of next week. - Target for board funding authorization: board meeting on May 16. - Intention to be under contract in May and to order long‑lead equipment (electrical panels, etc.) to meet a September/October start and a fall construction window that aims to reduce subcontractor pricing and scheduling conflicts.

Technical and safety details The design replaces the obsolete proprietary Siemens building automation overlay on a pneumatic control system and specifies a non‑proprietary Niagara control platform with multiple local firms qualified to support future service. Millig said the pneumatic controls will be removed and replaced with electronic controls, and asbestos is primarily pipe insulation in a three‑story chase; removal will occur during construction. Millig also proposed ceiling tile replacement and painting as added scope that bids made feasible.

Guarantee and post‑construction commissioning Millig said the GMP contract will be open book, include project management and construction management, and carry a workmanship guarantee and seasonal commissioning. "Millig is going to guarantee that you meet those energy savings. If the building fails to meet those energy savings, we write a check for the amount of the shortfall," Donnelly said. Millig described a 12‑month workmanship warranty included in the base package and noted manufacturer warranties for equipment.

Questions from commissioners focused on maintenance‑cost baselines, how projected savings are calculated, whether work is proprietary, roof penetrations, ceilings, asbestos scope, training for county maintenance staff and how the energy guarantee is measured. Donnelly and public services staff answered technical and procurement questions and said staff would deliver written cost and maintenance backup prior to the next meeting. DES will act as the owner's contract drafter; Millig said DES will handle contract administration for public entities.

Next steps Millig and public works will provide the construction proposal and supporting backup to DES and to the board before the next meeting. Commissioners indicated they expect to see the funding authorization on the May 16 agenda. The transcript records no formal board vote on the construction contract or funding authorization during this meeting.