Title
Approval of a Resolution Authorizing an Amendment to the Interagency Agreement with Department of Enterprise Services (DES) and Funding Authorization for the Armory Phase 1 Renovations
Recommended Action
Not referred to committee.
City Manager Recommendation:
Move to approve a Resolution authorizing an amendment to the Interagency Agreement with Department of Enterprise Services (DES) and Funding Authorization for the Armory phase 1 renovations.
Report
Issue:
Whether to approve a Resolution authorizing an amendment to the Interagency Agreement with Department of Enterprise Services (DES) and Funding Authorization for the Armory phase 1 renovations.
Staff Contact:
Valerie Roberts, Armory Building Manager, Parks, Arts & Recreation, 360.753.8468
Presenter(s):
None - Consent Calendar
Background and Analysis:
Armory Project Background
The City of Olympia is transforming the historic Armory into a Creative Campus-a hub for arts, culture, and community connection grounded in equity and innovation. Conceptual design and community visioning were completed in November 2022, followed by NEA-funded Art Interventions in July 2023 that explored creative uses of the space.
In January 2024, eight nonprofit arts organizations were selected as Anchor Partners to activate the campus: The Bridge Music Project, Capital City Pride, Community Print, Kokua Services/Hummingbird Studio, Olympia Film Collective, Olympia Lamplighters, PARC Foundation, and TC Media.
DES Energy Savings Program
Through the Washington Department of Enterprise Services (DES) Energy Savings Program, the City is completing critical building upgrades with project management support, energy savings guarantees, and eligibility for federal funding. Over 90% of Phase 1 improvements qualify under this program.
Ameresco, selected in October 2023, is serving as the primary contractor. The company specializes in energy efficiency, facility upgrades, and renewable energy solutions.
Investment Grade Audit and Phasing
Ameresco’s Investment Grade Audit (IGA) provided detailed energy and engineering studies for both the Armory and Annex. Due to limited funding, the City, DES, and Ameresco are implementing a phased approach. Phase 1 focuses on safety, accessibility, and energy efficiency upgrades. The IGA advanced design to 80% completion, enabling budgeting and preparation for future improvements.
Two Projects Underway
• Phase 1: Essential life safety and accessibility improvements to prepare the building for opening, partially funded by a Capital Heritage Projects Grant. Council approval is needed for Amendment 2 and a funding authorization.
• Solar and Battery Storage: A Department of Commerce grant-funded project installing solar and battery energy storage systems to enhance sustainability and energy resilience. This phase is already underway with signed authorization.
Recommended Action
Authorize the City Manager to sign the Amendment to the Interagency Agreement and Funding Authorization with DES to proceed with Phase 1 professional services, construction, and verification.
Climate Analysis:
Through working with the DES Energy Program and Ameresco, all building improvements for the Armory Creative Campus will be approached through an Energy Conservation Lens. Because building use will change and occupancy will increase, we will most likely see an increase in energy use but a longer-term reduction of greenhouse gas emissions from the improvements to this building.
The installation of solar and battery storage at the Olympia Armory is a continuation of the work to ensure that all building improvements for the Armory Creative Campus are approached through an Energy Conservation Lens. Because building use will change and occupancy will increase, we will most likely see an increase in energy use but a longer-term reduction of greenhouse gas emissions from the improvements to this building. Solar and battery storage will not only reduce the Armory’s greenhouse gas emissions but will create a more resilient community hub.
Equity Analysis:
The Olympia Community, Arts Nonprofits, and Anchor Partners will benefit from this work as a first step to upgrading the Armory for community use. Although this portion of the work does not have a high community engagement component, it is based on community engagement work done previously through the 2022 Concept Plan. Finally, this work will be performed with Ameresco, who is committed to DEI and hiring local subcontractors who are minority and women owned.
Neighborhood/Community Interests (if known):
The Eastside Neighborhood Association (ENA) has a strong interest in the Armory and was an active advocate for the City’s acquisition of the building and its listing on the local Heritage Register. The City of Olympia has designated a Creative District that covers much of Downtown and extends within two blocks of the Armory campus. The Armory is considered an asset to the nearby neighborhoods and there is interest in integrating the Armory Creative Campus into the City’s Creative District over time. A community arts center has been identified as a need for our community dating back to 1989 and has been in 8 planning documents and 2 voted measures since then. The YES Olympia Parks Coalition was heavily involved in the formation of the Olympia Metropolitan Park District and members continue to take a strong interest in the parks system.
Financial Impact:
This action will authorize the City to spend $16,978,068.00 on Phase 1 renovations at the Armory. This is also tied to two grant awards for this project from the Washington State Historical Society for the Armory, which has awarded the City of Olympia $1,585,000 to contribute to the rehabilitation of the history Armory building. This project is also currently slated to receive $250,000 in federal funds for the installation of an elevator. The remaining amount will come from the Parks Capital Budget, which has already been earmarked for this project.
Options:
1. Move to approve a Resolution authorizing an amendment to the Interagency Agreement with Department of Enterprise Services (DES) and Funding Authorization for the Armory phase 1 renovations.
2. Move to approve a Resolution authorizing an amendment to the Interagency Agreement with Department of Enterprise Services (DES) and Funding Authorization for the Armory phase 1 renovations, with modifications.
3. Do Not Approve a Resolution authorizing the City Manager to sign two documents with DES Energy Savings Program: Amendment No. 2 to Interagency Agreement K8448 and the Funding Authorization form.
Attachments:
Resolution
Amendment No. 2
Funding Authorization
Original Agreement
Amendment No. 1
Construction Contract
General Conditions and Insurance Requirements
Administrative Contract
Measurement and Verification Contract
Energy Savings Proposal for Phase 1 Renovations at the Armory