Memorandum

City of Lawrence

City Manager’s Office

 

TO:

David L. Corliss, City Manager

 

FROM:

Diane Stoddard, Assistant City Manager

 

CC:

Cynthia Boecker, Assistant City Manager

 

Date:

 

September 3, 2009

RE:

Consultant Agreements for the Santa Fe Depot building assessment and improvement report

 

Please place the following item on the September 1, 2009 City Commission consent agenda:

 

Authorize the City Manager to enter into the necessary agreements with Hernly Associates, Inc. to complete the building analysis and proposed improvement report for the Santa Fe Depot. 

 

Background:

As the City Commission is aware, the City is currently in negotiations with BNSF regarding the acquisition of the BNSF depot located on 7th Street.  It is anticipated, but not guaranteed, that the City will be able to complete this acquisition around the end of this year.  Finalization of the transaction requires a bill of sale for the building, a land lease, and a lease between the City and BNSF for BNSF’s continued use of the building. 

 

Once the City has acquired the depot, there appears to be interest in applying for federal grants to facilitate its historic restoration.  The Transportation Enhancement (TE) grant program, administered through the Kansas Department of Transportation, has been the source of grant assistance for many depot projects throughout Kansas.  The grant program offers up to eighty percent (80%) funding of a project.  It appears that the next grant round will open later this year with applications due at the end of this year.  Grant recipients are anticipated to be notified in late spring 2010.

 

In order to make application, the City will need to submit sound cost estimates for restoration work.  A full analysis of the depot has not been undertaken, though there have been useful structure reports.  The RFQ envisions hiring an architecture firm to undertake an analysis of the structure and prepare a restoration report to include phasing and cost estimates.  If the grant is received, the City could authorize the architect to proceed with the second phase of the project, which is the development of detailed plans to complete the restoration work.  It is important to note that consultant design fees, including those incurred with the production of this phase 1 report, are not reimbursable by the TE Grant.  However, it is possible that the project may be able to secure tax credits or other funding opportunities that could defray these costs.

 

Staff believes that it is important to begin the architectural report work now.  If a firm is hired soon, a report could be delivered in time to meet the December grant deadline.  Otherwise, the City would need to wait until the next grant window.  However, the City Commission should understand that the work to be undertaken would be done without the City owning the building yet or any definitive assurance a grant application would be approved. 

 

The City Commission authorized an issuance of a Request for Qualifications for the architectural services on July 7.  Proposals were due on July 31.  A total of fifteen (15) firms submitted proposals for consideration. A selection committee consisting of Carey Maynard-Moody from Depot Redux; Lynne Braddock Zollner, Historic Resources Planner; Steve Bennett, Building and Structures Manager; and Diane Stoddard, Assistant City Manager, reviewed the proposals recommended the firm of Hernly Associates to the City Commission.  At its meeting on August 18, the City Commission authorized staff to begin negotiations on scope and fee with Hernly Associates for this project. 

 

Phase 1 Scope and Cost:

Negotiations commenced with Hernly Associates, Inc.  Staff worked with Hernly Associates to identify all of the existing reports that could be utilized and would add to the historic structures report.  A good amount of this information can be used and will not need to be reproduced.  The Phase 1 report will provide an updated view of the condition of the building and what needs to be done to restore the building and update its mechanical systems.  Special attention will be paid to sustainability in the design in order to be sensitive to the environment and reduce life cycle costs.  Preliminary design components, phases and associated costs will be provided and this information will be utilized in grant applications. The total cost is $24,600 plus a modest amount for certain reimbursable expenses. The funding for this report has not been budgeted.  Staff recommends that the funding come from the City’s share of sales tax receipts from the County sales tax (parks and recreation facilities).

 

Requested Action:

Authorize the City Manager to enter into the appropriate agreements with Hernly Associates, Inc. for the Phase 1 BNSF Depot report, if appropriate.