Title
Approval of a Resolution Authorizing an Amendment to an Agreement with the Department of Enterprise Services and Funding Authorization for the Armory Solar Project
Recommended Action
Not referred to committee.
City Manager Recommendation:
Move to approve the Resolution authorizing an amendment to an Agreement with the Department of Enterprise Services and funding authorization for the Armory solar project.
Report
Issue:
Whether to approve the Resolution authorizing an amendment to an Agreement with the Department of Enterprise Services and funding authorization for the Armory solar project.
Staff Contact:
Valerie Roberts, Armory Building Manager, Parks, Arts & Recreation, 360.753.8468
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
Armory Project Background:
The City of Olympia is transforming the historic Olympia Armory into a new Creative Campus-a space that will support the arts as integral to Olympia’s way of life; encourage community growth through creativity and innovation; use the arts to connect people, ideas, and places while working within an equity framework.
The conceptual design through community visioning was completed in November 2022. In July 2023, artists, culture bearers, and a youth action council imagined possible use of the space through art installations and creative projects through NEA funded Art Interventions.
In January of 2024, eight non-profit arts organizations were identified as future tenants (Anchor Partners for the building), including The Bridge Music Project, Capital City Pride, Community Print, Kokua Services/Hummingbird Studio, Olympia Film Collective, Olympia Lamplighters, PARC Foundation and TC Media. These organizations will create a core partner group to activate the campus and bring the vision to life.
DES Energy Savings Program
Working with the Washington Department of Enterprise Services (DES) Energy Savings Program allows the City of Olympia to perform essential upgrades to the Armory building while gaining a multitude of other benefits including Project Management support to guide the upgrade process and ensure compliance, performance, price, and energy savings guarantee, and a faster completion timeline. A majority (over 90%) of Phase 1 building enhancements fit within the scope for Energy Service Company (ESCO) work through DES. Additionally, there is an opportunity for financial support with an ESCO through the pursuit of federal energy savings grants.
Ameresco was selected as the primary contractor through the DES Energy Savings program for the Armory project in October of 2023. They are a leading cleantech integrator and renewable energy asset developer, owner, and operator. They work to reduce operating expenses, upgrade, and maintain facilities, stabilize energy costs, improve occupancy comfort levels, increase energy reliability and resiliency, and enhance the environment.
Investment Grade Audit
Ameresco’s Investment Grade Audit (IGA) covers energy audits, environmental studies, and engineering services for both the Armory and Annex. Because full renovation costs exceed available funding, the City, DES, and Ameresco are pursuing a phased approach. Phase 1 focuses on making the building safe, accessible, and functional, while integrating energy efficiency.
The IGA advanced project design to 80% completion, allowing the City to budget Phase 1 construction and prepare for future improvements as funding becomes available.
Two Projects Identified in the Work
Two separate projects are moving forward under DES’s contract with Ameresco
Phase 1:
This phase focusses on essential life safety and accessibility upgrades to the current building. This project retrofits the building with all the essential systems that will allow it to open and is, in part, funded by a Capital Heritage Projects Grant from the WA State Historical Society.
Solar and Battery Storage:
This second project for the City of Olympia Armory aims to support the sustainability of the Creative Campus by utilizing a Department of Commerce decarbonization grant to implement solar and battery energy storage systems (BESS). These systems will enable the facility to generate renewable energy while storing excess energy in batteries for use during peak demand periods or emergencies. Solar and BESS technologies significantly reduce reliance on conventional energy, lower emissions, and enhance its energy resilience.
Recommended Action:
Council approval is needed to sign an Amendment to the Interagency Agreement and a Funding Authorization. This step will allow DES to proceed with professional services, construction, and verification for the Solar and Battery Storage project.
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 district includes some 150 enterprises and is intended to retain, promote, and encourage Olympia’s quirky, vibrant and artistic community. 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 will authorize the City to spend $1,868,091 on the installation of a solar and battery storage system at the Armory. This is also tied to a grant award for this project from the Department of Commerce Community Decarbonization Grant Award for the Armory, which has awarded the City of Olympia $1,542,000 to install solar and battery storage systems at the Armory. The remaining $326,091 will come from the Parks Capital Budget, which has already been earmarked for this project.
Options:
1. Move to approve the Resolution authorizing an amendment to an Agreement with the Department of Enterprise Services and funding authorization for the Armory solar project.
2. Move to approve, with modifications, the Resolution authorizing an amendment to an Agreement with the Department of Enterprise Services and funding authorization for the Armory solar project.
3. Do not approve the Resolution authorizing an amendment to an Agreement with the Department of Enterprise Services and funding authorization for the Armory solar project.
4.
Attachments:
Resolution
Agreement Amendment
DES Funding Approval
Agreement
Energy Services Proposal
Energy Services Company Construction Contract
Energy Services Authorization Amendment 1
Solar and Battery Storage Proposal
Measurement and Verification Authorization