2024/02/28 Council Agenda Packet

City Council Agenda Item Cover Sheet Project title: An Ordinance Amending Ordinance No. 3779-20, as amended, entitled “Everett Municipal Building – Public Works Tenant Improvement Project”, Fund 342, Program 42 & 43, Fund 336, Program 015, to Accumulate All Costs for the Project Council Bill # CB 2402-83 Project: Everett Municipal Building – Public Works Tenant Improvement Project Partner/Supplier: N/A Location: 2930 Wetmore Avenue Preceding action: Ordinance No. 3930-23 Fund: Fund 342, Program 42 & 43, Fund 336, Program 015 Agenda dates requested: Briefing 02/21/2024 Proposed action 02/28/2024 Consent Action 03/06/2024 Ordinance X Public hearing Yes X No Budget amendment: Yes X No PowerPoint presentation: Yes X No Attachments: Funding Ordinance Department(s) involved: Public Works Parks & Facilities Administration Finance Contact person: Bob Leonard Phone number: 425-257-8225 Email: bleonard@everettwa.gov Initialed by: RML Department head Administration Council President Fiscal summary statement: On February 8th, 2023, City Council approved an amendment to Funding Ordinance 3779-20 to fund the full design of the Everett Municipal Building – Public Works Tenant Improvement Project in the amount of $4,000,000. This design work along with the General Contractor/ Construction Management (GC/CM) procurement process has determined the project scope of work and the amending Ordinance will provide the funding necessary to complete the project. The funding sources for this program will be Fund 342 (CIP1) and Fund 401 Water and Sewer Utility Fund. We plan to split the total project costs amongst the two funding sources with Utilities Fund 401 contributing to their portion of the tenant improvements (approx. $6,205,603) and CIP1 covering the rest of the tenant improvements for general fund employees and the shell & core work (approx. $29,653,253) which encompasses the majority of the work that will be performed on the project. Currently CIP1 has approximately $13,000,000 accounted for in our budget for this project and plans to utilize an interfund loan from Utilities Fund 401 to cover the shortage in CIP1 for this project. The City plans to issue limited tax general obligation (LTGO) bonds in 2025. The bond proceeds will be used to repay the interfund loan from Water and Sewer Utility Fund 401. The total project costs including design, construction, project costs, sales tax and contingencies is $36,000,000. Project summary statement: The Everett Municipal Building – Public Works Tenant Improvement Project intends to make necessary improvements to critical building systems, update and improve existing office/ common spaces, and relocate Public Works administrative staff from the Service Center located on Cedar Street. The project represents several opportunities such as, relocating staff to the more structurally sound Everett Municipal Building, consolidating City services into one location, and reducing lease payment costs to the general fund. Now that our previous tenant, US Forest Service, has moved out, the building is 40% unoccupied which becomes the ideal time to reallocate office space and address aging building systems and deferred maintenance issues with minimal impact to City operations. This amendment will provide the funding necessary to complete the project. Recommendation (exact action requested of Council): Adopt an Ordinance amending Ordinance No. 3779-20, as amended, entitled “Everett Municipal Building – Public Works Tenant Improvement Project”, Fund 342, Program 42 & 43, Fund 336, Program 015 to accumulate all costs for the project.