TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Public Works |
Chris Stenger (Interim Director) |
425-403-5510 |
|
Parks |
Loreen Hamilton |
425-979-8280 |
DEPARTMENT STAFF:
|
Public Works |
Amy Kim |
Capital Project Manager |
|
Public Works |
Eric Dawson |
Engineering Supervisor |
|
Public Works |
Steve Gibbs |
Capital Projects Division Manager |
|
Parks |
Casey Huebner |
Manager |
|
Parks |
Danika Globokar |
Deputy Director |
|
Executive |
Jenny Lybeck |
Environmental Sustainability Program Manager |
TITLE:
title
Approval of the Final Contract with Integrity Energy Service (IES) and Acceptance of Construction for the Sustainability LED Lighting Retrofit Project
OVERVIEW STATEMENT:
recommendation
Public Works is requesting Council approve the final contract and accept construction for the Sustainability LED Lighting Retrofit project (No. 2340). This contract with IES had a total project cost of $764,062 with savings of $12,156, resulting in a final contract amount of $751,905.
This is an Energy Savings Performance Contract (ESPC) project, with the contract administered through the Washington State Department of Enterprise Services (DES). To participate, the local government signs an Interagency Agreement (IAA) with DES. On May 7, 2024, the Council authorized the Mayor to sign an IAA, which the Mayor signed on May 17,2024.
DES formally accepts and administers the ESPC contract and enforces the contractual obligations and requirements on behalf of the City. The project is still being brought to City Council for acceptance as part of the City’s authorization process, while DES has carried out the State-level contract administration and enforcement functions.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
Community Strategic Plan
2025 Environmental Sustainability Action Plan
Capital Facilities Plan 2025-30
2021 City Operations Zero Carbon Strategy
Climate Emergency Declaration
• Required:
Council approval is required to accept a Public Works contract that exceeds $300,000 (2018 City Resolution 1503).
• Council Request:
N/A
• Other Key Facts:
Public Works is requesting this item go forward for Council approval at the September 15, 2026, Council business meeting. The project achieved substantial completion on March 23, 2026. DES Substantial Completion/Notice of Completion triggers the start of the one-year Measurement & Verification (M&V) period. During this period, the project’s actual energy performance is measured and verified against the guaranteed energy savings established under the ESPC. DES holds a separate M&V contract to perform this verification, and following completion of the one-year period, the City will receive an updated report documenting the project’s performance and whether the guaranteed energy savings have been achieved.
OUTCOMES:
City Hall (107,000 SF) is subject to the Clean Buildings Performance Standard, with a June 1, 2027 compliance deadline for buildings greater than 90,000 SF and less than 220,001 SF. This project enabled the City to meet the applicable requirements ahead of schedule.
The project is expected to generate approximately $28,000 in annual utility and operational cost savings, including an estimated reduction of 500 kW in peak demand and 155,000 kWh in annual electricity use.
Overall, the lighting upgrade is expected to reduce City Hall’s total utility costs by approximately 9%, primarily through reduced electricity consumption and demand.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
The project has been featured multiple times in the City’s Redmond Our Stories communications before and during construction. The City is currently working with its Communications team on a new story highlighting the project’s completion and the benefits of the improvements.
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
$751,905
Approved in current biennial budget: ☒ Yes ☐ No ☐ N/A
Budget Offer Number:
CIP
Budget Priority:
Healthy and Sustainable
Other budget impacts or additional costs: ☐ Yes ☒ No ☐ N/A
If yes, explain:
N/A
Funding source(s):
General Fund
PSE Rebate
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
4/1/2025 |
Committee of the Whole - Planning and Public Works |
Provide Direction |
|
4/15/2025 |
Business Meeting |
Approve |
|
9/1/2026 |
Committee of the Whole - Planning and Public Works |
Provide Direction |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
N/A. DES will administer the release of contract retainage in accordance with the ESPC contract and applicable state requirements.
ANTICIPATED RESULT IF NOT APPROVED:
N/A. The warranty period has begun, and the City will conduct a warranty walk-through prior to the end of the one-year warranty period to identify and address any outstanding issues.
ATTACHMENTS:
Attachment A: Sustainability LED Lighting Building Retrofit Project Information Sheet
Attachment B: Additional Project Information
Attachment C: DES Executed Contract