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HomeMy WebLinkAbout03/08/2016 02 Discussion and Possible Action Regarding Yakima Central Plaza v o 01 00 mi 'n l BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 2. For Meeting of: March 8, 2016 ITEM TITLE: Discussion and possible action regarding Yakima Central Plaza SUBMITTED BY: Sean Hawkins, Economic Development Manager Jeff Cutter, Interim City Manager SUMMARY EXPLANATION: 1. Introductions and Format of Meeting 2. Yakima Central Plaza and It's Role in Economic Development (Sean Hawkins, Economic Development Manager) • How Plaza Was Identified as Source of Economic Development • Downtown Retail Plan • Downtown Master Plan • Downtown Parking Study 3. Yakima Central Plaza Final Design (Kathryn Gustafson — Gustafson, Guthrie, Nichol) 4. Council Q &A on Plaza Design ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: Interim City Manager STAFF RECOMMENDATION: BOARD /COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type D pll <;a .< cos 3/3/2016 I oimo D pllaza operatlion cost 3/3/2016 Cover Memo Memorandum To: Yakima City Council and City Manager From: Sean Hawkins, Economic Development Manager Date: March 8, 2016 Subject: Yakima Central Plaza Cost In April of 2013, the Yakima City Council initiated a public process to create a Downtown Master Plan to guide future development and retail activity in Yakima's downtown district. After five comprehensive public meetings, a downtown plaza was identified as the first project to be implemented as part of the plan's numerous recommendations. The plaza was identified as a game changer for the downtown district as it would change perceptions on how people view downtown and increase "body heat" in downtown with the numerous events and activities hosted in the space. In April 2014, the Yakima City Council selected Gustafson, Guthrie, Nichol, LTD (GGN) and Graham Baba Architects to conduct a conceptual design process for the Yakima Central Plaza project. The design team looked at two locations for the proposed plaza and developed five design options for public and City Council consideration. After five public sessions, the Yakima City Council approved option Y -A in September of 2014. On January 29, 2015, the City solicited RFQ 11507Q to hire a firm to take the approved conceptual design for the Yakima Central Plaza through the full design process with a final deliverable of construction documents that could be put out for bid in early 2016 following City Council direction to construct the project. Eleven design firms were solicited. Two firms, GGN and HBB Landscape Architecture, responded to the RFQ and were interviewed on February 26, 2015, by a committee of City Council members and staff. GGN received the highest score from the committee (437/500 possible points vs. 415/500 for HBB). Therefore, the committee recommended that staff proceed to negotiate a contract for the plaza design with GGN. City staff negotiated a $1,110,031 fee agreement with GGN for the design of the Yakima Plaza Option Y -A and surrounding street renovation. Also included in this agreement is GGN's $370,569 fee for construction administration, should the City choose to build the plaza. If the plaza is not constructed, the agreement for the construction administration fee will be void. GGN's Design fee, which includes full development of the design concept and production of 100% construction drawings and specifications, will not exceed the amount of $1,110,031. Their construction administration fee, which would include technical support such as reviewing material submittals and responding to the Contractor's technical design questions, will not exceed the amount of $370,569. Although it is not specifically part of the design process, including GGN's construction administration fee in this agreement will allow the City to efficiently initiate GGN's participation in the construction phase at such time the City chooses to proceed in building the project. All of GGN's fees, costs for site survey and geotechnical work, the estimated construction costs, and project soft costs (such as taxes, testing and inspection and City staff project /construction management costs), are included in the proposed $14,000,000 project budget, as follows: Yakima Plaza Project Option Y -A + Surrounding City Streets: Design & Construction Budget Estimate ' hase 2 - onstruction GGN Fee' $1,110,031 $370,569 $1,480,600 Geo Tech /Survey $62,500 $62,500 Construction Contract $11,500,000 $11,500,000 City Soft Costs $956,900 Total $14,000,000 Notes: 1. GGN fess are "Not to Exceed" and include reimbursable expenses. GGN will be paid actual costs for work performed. 2. Construction Contract is a conceptual estimate. 3. City soft costs include taxes on construction contract, City staff time for project /construction management, testing, etc. 4. Contingencies for unforeseen site conditions such as contaminated soil are not included in any category of the project budget. The following form shows the entire downtown revitalization project including the costs associated with the downtown planning and assessment process. The costs for planning and the assessment process proceeded and were not included in the $14,000,000 plaza project cost. Resolution Contractor Description Amount To Date Balance Downtown Planning and Assessment Process R 2013 -042 Crandall Arambula Develop a Downtown Master Plan $114,996 $125,227 R 2013 -043 Thomas Consultants Retail Element of Downtown Plan 32,000 32,000 R 2014 -046 Carl Walker Downtown Parking Study _ 45,752 _ 45,752 R 2014 -087 BDS Planning & Urban Design Public Market, Incubator Feasibility _ 58,850 _ 58,800 R 2014 -045 Gustafson Guthrie Nichol Preliminary Design Concepts 145,000 144,763 Subtotal- Downtown Studies $396,598 $406,542 Note: these project were paid from CBD, Economic Development and SIED Funding Sources. No debt was incurred on this spending Downtown Plaza Full Design Process _ R 2015 -052 Gustafson Guthrie Nichol Preliminary Engineering 1,110,031 _ 449,185 660,846 R 2015 -072 PanGEO Inc. Geotechnical component - Prelim Eng. 24,000 _ 19,310 4,690 R2014 -153 Huibregtse,LoumanAssoc. Topographic Survey 14,600 14,600 City Engineering 31,081 - 12,550 18,531 Other Miscellaneous Expenses - 1,000 377 623 Subtotal -Plaza Specific 1,180,712 496,021 684,690 Note: Historically, we would not reimburse ourselves for the " generic" studies - -just project specific expenses, or about $1,180,712. 3/3/2016 2 Memorandum To: Yakima City Council and City Manager From: Sean Hawkins, Economic Development Manager Date: March 8, 2016 Subject: Estimated Plaza Fountain Operating and Maintenance Costs Annual Operating Cost Summary Expense Daily Fountain Operation $16,950 Daily Maintenance Contract $65,940 Revenue Rental and Usage Revenue $36,500 Plaza Operating Cost $46,390 Fountain Operation Costs Estimate The fountains in the Yakima Central Plaza will operate yearly from April 15 through October 15, for 12 hours a day. The fountains are designed to recirculate and recycle water through the system after the initial fill. The following is the estimated water usage costs and utility costs for the Yakima Central Plaza fountain system. These numbers were prepared with assistance from CMS Collaborative (a Gustafson Guthrie Nichol sub consultant who is designing the fountains) and James Dean, the Utility Services Manager for the City of Yakima. Estimated water usage (per fountain designer CMS Collaborative): 1/2 April 42,700 gallons May 94,500 gallons June 112,700 gallons July 121,800 gallons August 121,800 gallons September 94,500 gallons 1/2 October 42,700 gallons Total 630,700 gallons per six month operating season As a point of perspective, the swimming pool at Franklin Park takes 280,000 gallons for its initial fill in May. It requires an additional 700,000 gallons throughout the summer season for loss from evaporation and usage. As a visual representation, 650,000 gallons is the amount of water it would take to fill an Olympic size swimming pool one time. In the case of a drought year, we can easily shorten the daily or yearly operating season of the plaza fountains to conserve water. The power, water and chemical costs to operate the fountains are as follows: Power ($.08 /KWH commercial rate) $9,365.00 Water ($1.46 per 100 cu. ft. rate using 843 UOC) $1,231.00 Water Ready to Serve Charge ($.2883 per day) $52.00 Wastewater Ready to Serve Charge ($.6873 per day) $123.71 Wastewater Service (based on only 10% of water UOC being discharged to wastewater system) $253.74 Water Treatment Chemicals $5,925.00 Total Operating Costs - $16,950.45 ($94 per operating day at 180 day season) Notes - daily maintenance labor and coverage is proposed to be covered through Block by Block's annual contract with the City. Facility Rental Costs The Yakima Central Plaza will be a fee based facility for usage by private entities. Events sponsored or hosted by the City of Yakima can have the fee waived. As a point of reference, Caras Park in Missoula typically charges $975 to use the facility on Friday, Saturday and Sunday and $700 the rest of the week. This includes restroom services, assistance setting up, usage of chairs and tables, access to power and trash service. There are add on fees for events that generate a large volume of trash and that require staff overtime. Like any special event in the City, a certificate of liability insurance naming the City of Yakima as an additional insured will be required to use the plaza for a public or private event. Below is an estimated cost for private usage of the plaza the first year. Please note that we expect that most of these activities will be open to the public. Initially, marketing of facility rentals will take place on the City of Yakima's website. Annual Event Days Costs Per Day Revenue Market Hall Only Rentals 35 $350 $12,250 Full Facility Rentals 15 $850 $12,750 Half Facility Rentals (No Market Hall) 15 $500 $7,500 Small Event Rentals 10 $250 $2,500 Stage Rentals 15 $100 $1,500 Event Rental Revenue $36,500 Maintenance Staffing Costs City staff proposes to amend the City's contract with downtown maintenance provider Block by Block to perform daily maintenance at the Yakima Central Plaza. A proposed year one budget of $65,940 will provide daily service plus an amortized equipment schedule to purchase the necessary capital equipment needed to maintain the plaza in appearance. Please note, the City's Public Works Department and Water Department will assist with maintenance issues as they arise. The proposed maintenance budget would provide daily, 8 hour a day service, through the regular fountain season (mid -April to mid - October) and Monday through Friday service through the remainder of the year. This dedicated staff will address litter and trash issues, provide landscaping and mowing services, assist with event set up, open, close and clean restrooms, power washing, graffiti removal and perform the daily maintenance checklist for the fountains. Additionally, a daily presence in the plaza will act as an additional set of eyes and ears to assist the Yakima Police Department with safety issues and quality of life infractions. The overall maintenance costs could be reduced by contracting maintenance services directly with the Downtown Association of Yakima rather than Block by Block. The cost savings would include the overhead association with an outside contractor performing the work.