2022/07/27 Council Agenda Packet

E EVERETT Project title. An Ordinance Closing a Special Improvement Project Entitled "Police Headquarters — Window Replacements", Fund 342, Program 031, as Established by Ordinance No. 3758-20 City Council Agenda Item Cover Sheet Council Bill # Project: Police Headquarters — Window Replacements CB 2207-30 Partner/Supplier: Washington State Dept. of Enterprise Services / McKinstry Agenda dates requested: Location: 3002 Wetmore Avenue Preceding action: Funding Ordinance — 5/27/2020- No. 3758-20 Briefing Fund: Fund 342, Program 031 (CIP -1) Proposed action 7/20/2022 Proposed action 7/27/2022 Consent Action 8/03/2022 Ordinance X Fiscal summary statement: Public hearing On May 27,2020 City Council adopted a funding Ordinance to fund the engineering design Yes X No (Investment Grade Audit) for the Police Headquarters — Window Replacement Project in the amount of $40,000. Budget amendment: Yes X No The source of funds for the project is CIP-1. The project was included in the City's 2020 Budget and CIP-1 finance model. The 2020 project budget estimate was $800,000. PowerPoint presentation: The Investment Grade Audit resulted in a total maximum project cost of $1,550,086 and based Yes X No on the annual utility savings of this project did not qualify for energy savings grants. Attachments: The cost of the engineering design is $30,746. Closing Ordinance The remaining amount of $9,254 will be transferred back to CIP-1. Department(s) involved: Parks & Facilities Contact person: Bob Leonard Phone number: 425-257-8335 Email: bleonard@everettwa.gov Initialed by: 2ML Department head Administration Council President Project summary statement: On March 4,2020 Council authorized an Interagency Agreement with the Washington State Department of Enterprise Services (DES) for an Energy Savings Performance Contracting Program (ESPC). The ESPC provides an efficient and effective delivery of energy related projects with DES providing project management services. The cost of these services is calculated based on the total project value. A preliminary energy savings audit for the Police Headquarters — Window Replacement Project was submitted to the DES and the City (Facilities) by McKinstry, a DES approved Energy Services Company. After reviewing the McKinstry proposal DES and Facilities recommended proceeding with the engineering design phase of the project. The funding Ordinance allowed for the engineering design (Investment Grade Audit) for the project. The purpose of the Investment Grade Audit was to deliver a maximum allowable project cost, description of how the energy savings will be guaranteed, and a schedule for project completion. Based on the total maximum project cost of $1,550,086 provided in the IGA by McKinstry, City staff recommends closing the funding Ordinance and pursuing this project with a Design -Bid - Build project delivery method. The new project cost has been incorporated into the CIP-1 budget models and is planned for 2025. Recommendation (exact action requested of Council): Adopt an Ordinance closing a special improvement project entitled "Police Headquarters — Window Replacements", Fund 342, Program 031, as established by Ordinance No. 3758-20.