EVERETT — Repairs and upgrades to Everett’s aging municipal building may cost more than first expected.
On Wednesday, the Everett City Council will vote whether to approve more funding for the city’s municipal building project at 2930 Wetmore Ave.
Last month, BNBuilders informed city officials the design would cost another $4 million, bringing the total cost to $36 million. They asked to amend the original contract.
Originally, the entire project was estimated to cost about $26.5 million in 2022. In two years, that figure grew by about $9.4 million.
Since 2022, “the city has gone through the bidding process to get actual, not estimated, costs for the project,” and the estimates fell under the actual project totals from this year, city spokesperson Simone Tarver said in an email. The roughly $9.4 million increase was also due to inflation and more repairs needed, following system failures since the initial estimate.
Built in 1980, many of the original systems in the 10-story municipal building are more than 20 years past their safe, usable lifespan, said Jeff Harris, the city’s assistant facilities director, at a council meeting last month. The sewer leaks, the elevators stop at random floors and the electrical and HVAC systems are barely functional.
The electric system had a “catastrophic” failure in late 2023, shutting down the building for multiple days, Tarver said.
The HVAC system is “extremely temperamental and faulty,” Harris said.
And last month, the city’s elevators stopped working.
“The fact that the city’s gone almost 45 years without a full replacement and the system still functions — not well — but functions, speaks to the city’s ability to extract as much usable life from this critical building system and stretched its capital investments as far as it can go,” Harris said, referring to the HVAC system.
The current state of the building has limited the city’s ability to use it, Harris said.
The city will fund the bulk of the project with $13 million from its capital improvement fund and $6.2 million from its water and sewer utility fund. The city plans to borrow nearly $16.8 million from the utility fund, which would be paid back with general obligation bonds issued in 2025.
The bonds will be paid with real estate excise tax, a fund restricted to capital expenses, Tarver said.
“The City will be using a combination of cash accumulated over several years for this purpose and bond proceeds,” she wrote.
The city was unsuccessful in applying for grant funding, Harris said. At this point, the grant cycle is over and the project is too far along to apply for more grants, he added.
The project will not affect Everett property taxes, Tarver noted.
Currently, the building is 40% unoccupied after the U.S. Forest Service moved out, making it the perfect time to start this project, city documents say. Other notable tenants include U.S. Sen. Patty Murray and U.S. Rep. Rick Larsen.
After the repairs, the city plans to transfer 100 employees from the city’s building on Cedar Street, consolidating most city operations under one roof.
“Things like permitting, planning, utility building and the clerk’s office will all be in one building, making knowing where to go for city services very simple for citizens,” Harris said.
Modernizing the building’s HVAC, plumbing and electric systems are expected to reduce utility bills over time. The city is also using 98% union labor and 28% local labor for the project, Tarver said.
Construction is set to begin in March or April, and scheduled to be completed in the second half of 2025. The project would not be able to move forward without the council’s approval, Tarver said.
Ashley Nash: 425-339-3037; ashley.nash@heraldnet.com; Twitter: @ash_nash00.
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