2023/10/18 Council Agenda Packet

E V E R E T T City Council Agenda Item Cover Sheet Project title: Council Bill # CB 2309-48 An Ordinance Closing the Special Construction Fund Entitled "Everett Main Library HVAC Replacement Project", Fund 342, Program 034, as Established by Ordinance No. 3875-22 Agenda dates requested: Project: Everett Main Library HVAC Replacement Project Partner/Supplier: Department of Enterprise Services/McKinstry Location: 2702 Hoyt Ave. Preceding action: Ordinance No. 3875-22: 5/25/22 Briefing Fund: Fund 342, Program 034 (CIP 1) Proposed action 10/11 & 10/18/23 Consent Action 10/25/23 Fiscal summary statement: Ordinance X Public hearing Yes X No The proposed Ordinance will close the special construction fund for replacement of the heating, ventilation, and air conditioning (HVAC) system for the Everett Main Library. Ordinance No. Budget amendment: 3875-22 provided a funding amount of $88,000 for the project. The Closing Ordinance will Yes X No capture and return the unused amount of $88,000 to CIP-1 as the contractor did not fulfill the terms of the agreement and no Investment Grade Audit (IGA) report was delivered to the City of PowerPoint presentation: Everett. Yes X No Attachments: Ordinance Department(s) involved: Parks & Facilities Library Contact person: Bob Leonard Phone number: 425-257-8335 Email: BLeonard@everettwa.gov Initialed by: 2ML Department head Administration Council President The amount of $88,000 will be transferred from the project fund back to CIP-1. Project summary statement: The existing funding Ordinance funded an IGA for the Main Library HVAC replacement. The City entered into an agreement with Department of Enterprise Services (DES) for the Main Library HVAC replacement project. This agreement was brought to Council 5/25/2022 and approved. The IGA was supposed to deliver a maximum allowable project cost, description of how the energy savings will be guaranteed, and a schedule for project completion. At the end of the IGA study period, after the audit report was to be issued, it was to be the City's option to proceed with design and construction. The contractor failed to meet the terms of the agreement by not delivering a completed IGA by the agreed upon due date. This resulted in DES determining that the City did not receive the Investment Grade Audit report therefore no compensation is due to the contractor for the project. Staff recommends closing this funding ordinance and is pursuing other avenues to accomplish the project. Recommendation (exact action requested of Council): Adopt an Ordinance closing the Special Construction Fund entitled "Everett Main Library HVAC Replacement Project", Fund 342, Program 034, as established by Ordinance No. 3875-22.