Title
Approval of Farmers Market Operations and Maintenance Agreement
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve and authorize the City Manager to sign the Operation and Maintenance Agreement between the City and Olympia Farmers Market.
Report
Issue:
Whether to approve the Farmers Market Agreement, which is set to expire on December 1, 2016. This updated agreement will continue the City’s relationship with the Olympia Farmers Market through December 1, 2021.
Staff Contact:
Scott River, Associate Director, Parks, Arts and Recreation, 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. With the exception of the current agreement, all agreements have been five-year terms. This agreement returns to that tradition.
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 2017 through 2021 is an updated version of the current agreement. Below is a summary of proposed changes:
Market Season: While the Market still maintains a primary season of the first Thursday in April through the end of October, this agreement clarifies that the market intends to be in modified operations throughout 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.
Termination Date: 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. Previous termination dates coincided with the appointment of new board members which was challenging from an education standpoint.
Neighborhood/Community Interests (if known):
The Port of Olympia owns the property where the Farmers Market building is located.
Options:
1. Approve the agreement as proposed
2. Request staff to negotiate additional items and return the item to Council for approval.
3. Do not approve the agreement
Financial Impact:
None anticipated
Attachments:
Farmers Market Operations and Maintenance Agreement