Title
Approval of a Resolution Authorizing a Memorandum of Understanding with the Hands On Children’s Museum Related to Construction of a New Museum Building
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Resolution authorizing a Memorandum of Understanding with the Hands On Children’s Museum (HOCM) related to construction of a new museum building.
Report
Issue:
Whether to approve the Resolution authorizing a Memorandum of Understanding with the HOCM related to construction of a new museum building.
Staff Contact:
Jim Rioux, Project Manager, Public Works Engineering, 360.753.8484
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The HOCM has been awarded a $1.6 Million State Building for the Arts (BFA) grant. BFA funding is dedicated to the HOCM expansion including construction and exhibits and reimburses 1/3 of all eligible invoices submitted.
The grant deadline is June 30, 2027. Only invoices for work performed on or before that date will be eligible for reimbursement. The new building project is currently reaching the end of the design phase. Costs being incurred are eligible for grant reimbursement.
The project will soon move to construction and expenses for site preparation and construction will also be eligible for reimbursement. The match for the reimbursement of these costs will ultimately be paid for with Public Facilities District (PFD) funds held by the City. Under the terms of the BFA Grant Agreement, payments must be made by HOCM to receive reimbursement.
The proposed agreement will create a mechanism for the City to use PFD funds to reimburse HOCM for grant eligible expenses. This will ensure that the HOCM and the City can maximize the BFA grant.
With this agreement in place the HOCM will pay the full amount of BFA eligible expenses for design and construction, receive reimbursement for 1/3 of those expenses through the BFA grant and invoice the City for the remining 2/3. The City will then reimburse HOCM using PFD funds.
Climate Analysis:
This action does not have an impact on the climate or green house gas emissions However the overall project does have impacts which are addressed below.
Overall, the project’s impact on greenhouse gas emissions will be a long-term reduction and a near-term increase.
The near-term increase is due to construction activities including site work, contaminated soil hauling under the Ecology Agreed Order, material transport, and the embodied carbon of a new 18,000 SF building. That is unavoidable in any new construction, and the project reduces it where it can - a mass timber and timber-steel hybrid structure in place of conventional steel or concrete, supplier-specific Environmental Product Declarations, low-carbon concrete, high recycled-content steel, locally sourced timber, and a 75% construction waste diversion target.
The long-term reduction comes from how the building operates. The expansion is all-electric with no natural gas service, in compliance with Resolution No. M-2289, using a water-source heat pump loop that moves heat between zones needing heating and cooling simultaneously, a high-efficiency air handler, LED lighting with daylight and occupancy controls, and demand response capability. On-site rooftop photovoltaic arrays offset a portion of consumption. The project is pursuing LEED Silver as a contractual minimum, currently tracking 58 points with 21 more possible.
The base scope includes a code-minimum 8.8 kW photovoltaic array together with the pathway and readiness provisions required by the energy code. Measures beyond code minimum, including heat pump water heaters and a pathway for a maximum photovoltaic array have been added to the base scope.
The strategies most significantly supported are B4 (energy use in new construction), B6 (electrification), W2 (water consumption), W4 (waste diversion) and W6 (carbon-intensive goods). Transit and active travel are supported by location: the site is walking distance from the Intercity Transit center and earns the full 5 points for LEED Access to Quality Transit, with bicycle parking and improved pedestrian connections to Percival Landing and the East Bay waterfront.
Preparing the facility for maximizing the installation of photovoltaic cells (PV) later is being implemented.
Alternatives considered and not implemented, with reasons:
• PV beyond the Washington State Electric Code minimum: deferred to a later date when additional funding may be available.
• Net zero carbon documentation: Not pursued due to budget.
• LEED Green Power and Carbon Offsets: excluded as an ongoing City operating cost rather than a construction cost; remains available post-occupancy.
• Rainwater management through infiltration-based green infrastructure: prohibited within the contaminant delineation areas under the Cleanup Action Plan.
• Reduced parking footprint: code-required parking for the combined campus (123 stalls against 73 existing) exceeds the LEED threshold. A parking demand study and right-sizing strategy are in progress with the City and represent the largest remaining opportunity in the transportation sector.
Equity Analysis:
This action does not have a direct impact on equity. However, the overall project has equity-related benefits and impacts, which are addressed below.
Low-income children and families are the primary intended beneficiaries of the project. The expansion will add early learning classrooms, exhibit space, and program rooms. HOCM has historically offered reduced- and no-cost admission to families below the poverty line. Children and adults with disabilities and neurodivergent visitors will benefit from an accessible climber entry platform, elevator access to all three floors, wide corridors, generously sized restrooms with an adult-compatible changing table, and acoustic and thermal comfort standards pursued through LEED.
Minority, women, small, veteran, and locally owned businesses will benefit from utilization goals established through the progressive design-build process before pricing was finalized. These goals include 10% minority-owned, 6% women-owned, 5% small business, and 30% local business participation. Certification is verified at the contract and invoice stages, and utilization is reported monthly. To date, the Design-Builder reports planned or contracted value of more than $100,000 with minority-owned businesses, $350,000 with women-owned businesses, and more than $3.72 million with local businesses. The Design-Builder has also identified a veteran-owned local subcontractor for fire suppression. Construction workforce benefits include prevailing wages under RCW 39.12 and a 15% apprentice participation goal that applies to subcontractors.
Downtown residents, small businesses, museum visitors, and people who use the East Bay public waterfront may experience approximately 13 months of construction impacts beginning in January 2027. These impacts may include noise, dust, truck traffic associated with contaminated soil hauling under the Ecology Agreed Order, and temporary changes to parking and pedestrian routes on Jefferson Street NE and Marine Drive NE. Museum staff and current visitors may also experience disruption because the museum will remain operational throughout construction.
Construction impacts will be managed through site logistics, dust and traffic control, and the soil management plan. Minority- and women-owned business participation at the Guaranteed Maximum Price (GMP) is concentrated in earthwork, utilities, and painting rather than the higher-value mechanical, electrical, and structural packages, consistent with patterns identified in statewide disparity studies. Mitigation strategies include scope unbundling, adjusted bonding and payment terms, quarterly outreach events, and the Small Business Accelerator Program.
Neighborhood/Community Interests (if known):
The agreement itself does not create new neighborhood or community impacts. However, the overall Hands On Children’s Museum expansion will enhance a community asset in the heart of downtown Olympia and provide expanded learning opportunities for children, families, and visitors. The museum will remain fully operational throughout construction, with visitors immediately adjacent to the work area, and the shared parking lot will remain in service.
Construction is anticipated to begin in January 2027 and continue for approximately 13 months. Downtown residents, small businesses, museum visitors, and people who use the East Bay public waterfront may experience construction-related impacts, including noise, dust, truck traffic associated with contaminated soil hauling under the Ecology Agreed Order, and temporary changes to parking and pedestrian routes on Jefferson Street NE and Marine Drive NE. The site is located on the East Bay waterfront within shoreline jurisdiction and the 100-year floodplain.
Public and construction traffic will be fully separated, and emergency vehicle access on Jefferson Street NE and Marine Drive NE will be maintained. Construction access, sequencing, and separation of public and construction activities are addressed in the Site Logistics Plan included with the agreement.
Financial Impact:
There is no financial impact associated with this agreement. Reimbursements to the HOCM for eligible design and construction costs will be drawn for the city’s PFD funds that are already allocated for that purpose.
Options:
1. Move to approve the Resolution authorizing a Memorandum of Understanding with the HOCM related to construction of a new museum building. The project will proceed as planned and the City will maximize reimbursement from the BFA Grant.
2. Direct staff to make modifications to the proposed Resolution. The project will proceed as planned but the City and HOCM may not utilize the full BFA grant.
3. Do not approve the proposed Resolution. The project will proceed as planned but the City and HOCM may not utilize the full BFA grant.
Attachments:
Resolution
Memorandum of Understanding