Title
Approval of a Resolution Authorizing an Agreement between the City of Olympia and the Olympia Farmers Market for Operation and Maintenance
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a Resolution authorizing the City Manager to sign the operating agreement between the City of Olympia and the Olympia Farmers Market for maintenance and operations.
Report
Issue:
Whether to approve a Resolution authorizing the City Manager to sign the operating agreement between the City of Olympia and the Olympia Farmers Market for maintenance and operations. The current agreement is set to expire on December 1, 2021. This updated agreement will continue the City's relationship with the Olympia Farmers Market through December 1, 2026.
Staff Contact:
Scott River, Director - Recreation and Facilities; Parks, Arts and Recreation Department; 360-753-8506
Presenter(s):
None - Consent Calendar Item.
Background and Analysis:
The City’s agreement with the Olympia Farmer’s Market dates back to 1995. The initial agreement between the City and the Market coincided with the opening of the City-owned facility.
The City owns the building and has a long-term lease with the Port of Olympia for use of the property where the building is located. The proposed agreement for 2021 through 2026 is an updated version of the current agreement. There are no operational changes with this new agreement. The City will continue to receive the following:
• Market Season: While the Market still maintains a primary season of the first Thursday in April through the end of October, this agreement continues to all the market in modified operations during other portions of the year.
• Maintenance and Major Repair & Replacement: Maintenance responsibilities are separated from Major Repair & Replacement to clarify the Market’s role in day-to-day operations versus obligations for significant repairs and upgrades. Funds for Major Repair & Replacement are held by the City and reimbursed to the Market when they rely on these funds. The Market is required to maintain a fund balance of $75,000 at the beginning of each year.
• Capital Fund Contribution: The Market is required to contribute one half of one percent of their annual gross sales to a fund in their holding. This fund is designated for major capital improvements such as market expansion or partnering on a parking facility. This agreement caps the annual contribution at $26,000 to allow for more predictable budgeting for the market.
The termination date has been maintained in late fall to align with both the Market schedule and appointment of board members. The late fall timeline allows a new board to substantially understand the relationship between the Market and City.
Neighborhood/Community Interests (if known):
The Port of Olympia owns the property where the Farmers Market building is located and the Market is an amenity and attraction that both the community and visitors enjoy .
Options:
1. Approve the Resolution authorizing the City Manager to sign the operating agreement between the City of Olympia and the Olympia Farmers Market for maintenance and operations.
2. Request staff to negotiate additional terms of the agreement tend and return the Resolution for City Council approval at a future meeting.
3. Do not approve the Resolution authorizing the City Manager to sign the operating agreement between the City of Olympia and the Olympia Farmers Market for maintenance and operations.
Options 2 and 3 may delay continuity of operations, depending on the intentions of a modification or non-approval.
Financial Impact:
The Market is required to contribute one half of one percent of their annual gross sales to a fund in their holding. The agreement caps the annual contribution at $26,000 to allow for more predictable budgeting for the market.
Attachments:
Resolution
Agreement