Title
Honnen Building Facility Condition Assessment Review
Body
Summary and Background Information:
Council has engaged in a Purchase and Sale Agreement with Adams County to purchase the Honnen Building located at 7111 E 56th Ave. for the price of $500,000. This is an older building that will likely require additional investment beyond the purchase price to allow for full use. In recognition of this fact, Council allocated an additional $500,000 for repairs and improvements to the Honnen Building.
As part of the due diligence for this transaction, staff engaged McKinstry Co. to conduct a full facilities condition assessment (FCA) as well as an ASHRAE Level II energy audit. McKinstry has completed the on-site work and has delivered the FCA and is currently preparing the final energy audit report. In addition to the work by McKinstry, facilities and IT have reviewed the building to provide their input on the work that will need to be done if the City acquires the Honnen Building.
The FCA report states that the Honnen Building, constructed in 1985, is a solid building that has received periodic maintenance and upgrades throughout its life. There are some items that require short-term attention (within the first three years), and other repairs and improvements that are longer term (5-10 years).
One item requires immediate attention upon acquiring the building: integrating the Honnen Building into the City’s building automation system (BAS). The building is currently controlled through the Adams County BAS and the City will have to either install a front-end controller in the Honnen Building ($8,250) or integrate the building into its own system ($20,000).
Additionally, IT estimates a cost of approximately $88,000 to develop the building’s IT infrastructure and connect it to the city’s network.
The short-term items have a total estimated cost of $198,548. These are items that should be addressed within three years of the purchase. The single largest short-term item will be bringing the 11 bathrooms into ADA compliance (total of $99,000). Other short-term items include: new doors, replacing interior lighting, new carpeting/tile, reframing the metal outbuildings, exterior wood siding, replacing a condensing unit for one of the Food Bank freezers, replacing the kitchen exhaust fan, some drywall repairs, and some acoustic ceiling tile repairs.
The long-term items have a total estimated cost of $342,702. These are items that should be addressed within 10 years of the purchase. The single largest long-term item will be replacing the exterior windows, which are original to the building and have an estimated replacement cost of $156,959. Other long-term items include: replacing the transformer, repairs to the walk-in coolers and freezers, replacing the exhaust fans, repairing the garage door, repairs to condensing units, repairs to electrical breakers, painting downspouts, fixing soffits, and replacing exterior metal doors.
Total facilities cost for IT infrastructure, short-term, and long-term items is $649,250.
Facilities has reviewed the FCA and has signed a memo agreeing with the findings of the FCA including the timeline for capital planning.
Staff Responsible (Department Head): Troy Smith, Deputy City Manager
Staff Member Presenting: Troy Smith, Deputy City Manager
Financial Impact: N/A
Funding Source: N/A
Staff Recommendation: N/A
Suggested Motion: N/A