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4. Award Contract - Central School Renovation - Architectural ServicesAgenda -May 12, 1997 AGENDA ITEM 4 - AWARD CONTRACT -CENTRAL SCHOOL RENOVATION FOR ARCHITECTURAL SERVICES BACKGROUND/CONSIDERATION: As per your actions at the last meeting, this item is on the agenda for further discussion. interoff to: Clarence Krepps, City Manager from: Ross Plambeck, Redevelopment Manager f2? subject: Award Contract for Architectural Services for Central School Renovation date: April 30, 1997 At the April 28th City Council Workshop, the Selection Committee's recommendation to contract with James R. McDonald Architecture was presented along with his Architectural Fee Proposal. The fee represents approximately I I% of the estimated total project cost to renovate the building. Mr. McDonald is highly experienced in this type of renovation work and consistently provides accurate estimates based on current bidding quotes. Several independent architects confirmed the reasonableness of the proposed fee as being at the low end of the range for renovation work. Council members asked what previous commitments they had made to the Historical Society to renovate the building as a museum. A Memorandum of Understanding and Intent between School District #5 and the City was developed when title to the land and building was transferred to the City of Kalispell. The Memorandum stated: 'Specifically, the Northwest Montana Museum and Historical Society will become an active participant in seeking solutions to the redevelopment and reuse of the property. " The City Council adopted the document on December 19, 1994. The Council also reaffirmed its support at the time of authorizing Requests for Qualifications for Architectural Services. On an 8 to 1 vote, the Council approved the motion "to reaffirm the Central School Museum as a TY project and give the staff the guidance they are lacking at this point and they would proceed with the lease agreement with the Northwest Historical Society. " (Minutes of January 21, 1997) Recommendation: Please request the City Council to authorize entering into a contract for architectural services with the firm of James R. McDonald Architects. The fee of $245,000 for professional services to prepare construction documents, cost estimates, bid specifications and contract administration represent approximately 11 % of estimated project cost. Attachments: Architectural Fee Proposal from James R. McDonald Architecture Memorandum of Understanding and Intent APRti JAMES R. McDONALD ARCHITECTS 25 April 1997 Mr. Ross Plambeck Redevelopment Manager Planning, Economics, and Community Development Department The City of Kalispell P.4, Box 1997 Kalispell, Montana 59903-1997 Re: Architectural Fee Proposal Central School Project The fee proposal for the referenced project is based on the basic services of Architectural, Structural, Mechanical and Electrical Engineering. In addition we have included approximately $6000.00 for environmental consulting and some museum curator review of the project. The proposed fee is as follows: Sincerely. James R Mcoonald� AIA ' ! IQ e .. k To: Bill Cooper, Superintendent Board Members, School District #5 From: Bruce Williams, City Manager Kalispell City Council Date: September 22, 1993 Subject: Memorandum of Understanding and Intent between the City of Kalispell and School District #5 for the Central School Property Analysis and Reuse/Restoration Study � Ptar : pose The purpose of this Memorandum of Understanding and Intent is to outline the level of responsibility, participation and/or actions to be undertaken by oo the City of Kalispell and School District #5. Also, it is to document the mutual expectation of benefits to be derived by participating in the Central School Property Analysis and Rei se Restoration Study, as described in this Memorandum. The City and School District recognize that Central School has both historical and cultural significance to the residents of Kalispell because it represents a substantial role in the development of Kalispell as the first permanent school building. Built in 1894 at a very low cost of $20,000, the building is an excellent example of Richardsonian Romanesque style of architecture. Central School was one of the first county high schools in Montana with an enrollment of 75 students. In 1927, the City's "14th Annual Water Departinent Report" states: "Although it is not well designed for a grade school, it is still giving excellent service, and, with the one -room annex, houses about 365 children. There is much waste space in the building to beat, to clean and to maintain, but it is so well built that it stands as a monument to the contractor who built it. It is said that he lost money on his contract, yet there is evidence throughout the building of an old-time thoroughness and pride in his work for its own sake that is worthy of emulation." Central School City/School District #5 Memorandum, September 22, 1993 Page 2 School District # 5 and the City are mutually concerned and agree that it is not in the best interest of either party for Central School to remain an empty, non -productive building. It is not wise to allow it to remain as a potential liability to the School District, neither contributing to the space needs of the School District, nor (lie City of Kalispell or other government agencies. It should be restored and rehabilita(ed and adaptively reused to either satisfy the growing private sector demand for space, house public agencies, become a diverse center for public and private activities, a combination of such uses allowing it to function as a true asset to the coin mu1iity; or, it should be demolished and (he land redeveloped. The building does not currently contribute to improving either (lie density of the Kalispell Central Business District or its tax "base, primary goals of the Downtown Redevelopment Plan, (Ordinance 33. Therefore, it is iutually agreed it is in the best interest of School District f15, and preservation and downtown revitalization efforts, to develop all economic plait for the restoration/rehabili- tation, adaptive reuse and/or occupancy of Central School; or as an alternative, to prepare a plan for redevelopment of the land and its use by public agencies, the private sector, or both. The City has adopted Ordinance No. 933 THE DOWNTOWN REDEVELOPMENT PLAN as an official Urban Renewal Plan authorized by Title 7, Chapter 15, MCA. The law authorizes (lie City to undertake "Urban Renewal Projects" within established boundaries and to utilize tiie incremental increase in ad valorem taxes (tax increment) to finance projects within (tie urban renewal area. "Urban Renewal Projects" may include: "...undertakings or activities of a municipality in an urban renewal area for the elimination and for the prevention of the development or spread of blight and may involve redevelopment in an urban renewal area, rehabili(ation or conservation in an urban renewal area, or any combination or part thereof in accordance within urban renewal plan." Central School (aka Montana hall) is located within (he urban renewal area, an officially designated "blighted area." As it stands today, Central School constitutes an economic or social liability and/or is detrimental or constitutes a menace to the public health, safety, and welfare by reason of substantial physical dilapidation, deterioration, defective construction, material, and arrangement, and/or age obsolescence of building, or improvements; and thus, may be considered blighted and in need of special efforts to be made whole and productive once again. The law allows the City to exercise its powers as an urban renewal agency: (7-15-4233) ...(c) to prepare recommended modifications to an urban renewal project plan; (d) to undertake and carry out urban renewal projects as required by the local governing body; (e) to make and execute contracts as specified in 7-15--4251, 7-15-4254, 7-15-4255, and 7-15-4281... Central School City/Schw)l District N5 Memorandum, September 22, 1993 Page 3 (h) to enter any building or property in any urban renewal area in order to make surveys and appraisals in the manner specified in 7-15-4257; (i) to iijlpfflYt. ClCar. GE PrQare f0f [QdCVelODIneftt any real or Dersonalproperty in an urban renewal area; (k) to effectuate the plans provided for in 7-15-4254;... (in) Lq-p}re_nar?, plalia or carrying out a Droeram of voluntary or compulsory repair, and fehabilitatian of buildings n imProvetrrel); (n) to conduct appraisals.r eys, studira, and otherI' . I n n )york figgssaryo f ud k" of- ,_ urban renewal pro-jec(s ' (o) to ueg bate for the puchase of land; (emphasis added) The Urban Renewal law also contemplates cooperation between government bodies. Section 7-15-4267, MCA calls for and allows for Cooperation by public bodies for the purposes of aiding in and planning, undertaking or carrying out of an urban renewal project located within the area in which it is authorized to act. The law states: ....any public body authorized by law or by this part or part 43, upon such terms WAI oc withocl-consideration. as it may (determine (emphasis added), may: (the following is a partial list of relevant powers) (a) dedicate, sell, convey, or lease any of its interest in any property or grant easements, licenses, or other rights or privileges therein to a municipality;... (c) do any and all things necessary to aid or cooperate in the planning or carrying out of an urban renewal plan;... (e) enter into any agreements (which may extend over any period, notwithstanding any provision or rule of law to the contrary) with a municipality or other public body respecting action to be taken pursuant to any of the powers granted by this part or part 43, including the furnishing of funds or other assistance in connection with an urban renewal project; (f) cause to b furnished'c buildings andpublic facilities. parks: ounds: rr&realional. community'o drainage ci iti or any other orks which it is othcr wisem o r o un er k •...(emphasis added) (2) Any sale, conveyance, lease, or agreement provided for in this section shall be made by a public body with appraisal, public notice, advertisement, or public bidding in accordance with provisions of 7-15-4263." Section 7-15-4263 of (lie Urban Renewal Law contains the procedures required to dispose of property to private persons, giving municipalities reasonable and flexible authority to: "(3) ...consider all redevelopment or rehabilitation proposals and the financial and legal ability of the persons making such proposals to carry them out. The municipality may accept such proposals as it deems to be in the public interest and in the furtherance of the purposes of this part and part 43..." In other words, the City of Kalispell probably has more statutory "flexibility" in Central School City/School District #5 Memorandum, September 22, 1993 Page 4 disposing of real estate than School District #S; therefore, it may be to the Districts advantage to consider transferring Central School to the City of Kalispell and allowing the city to explore disposition alternatives. The City and School District No. 5 share a history of working together to solve mutual problems and for community benefit. This Memorandum of Understanding and Intent between the City and the School District, to encourage (he renovation and adaptive reuse of Central School, will encourage and guide that continued cooperation. School District #5 understands that before (lie City may proceed with a Request For Proposals (RFP) to perform the real estate analysis of Central School, the School District (SCIIOOL) and CITY must mutually agree on a Task Order, hereinafter referred to as "ORDER", which shall direct the performance of certain tasks or services to be undertaken by each entity. Each such ORDER shall contain a description of the services to be performed and a Scope of Work there- fore, a time schedule or period of performance, and the source and use of funds. A. Upon receipt and acceptance of such ORDER, CITY AND SCHOOL shall promptly undertake the performance thereof in accordance with the instructions contained therein. B. SCHOOL shall provide, at no expense to CITY, such books, maps, records, plans, reports, studies, statistics, or other data or information as it currently has in its possession and as may be reasonably required to assist CITY and its consultant perform the task of services specified in (lie ORDER. C. SCHOOL shall designate a Representative with authority to act on its behalf with respect to each such ORDER, who shall be named in the ORDER, and CITY shall be entitled to rely on the directions given by such Representative. D. SCHOOL shall promptly review all documents, plans, reports, studies or other submittal's from CITY, and shall not unreasonably withhold its consideration and approval of an implementation plan to encourage the restoration and rehabilitation and adaptive reuse of Central School. Said implementation plan may include plans to: I. Sell trade or exchange the land and building to private persons, non-profit organizations or the CITY OF KALISPELL, at a price to be determined by a Fair Market Appraisal and as required by the Montana Urban Renewal Law. 2. Sell trade or exchange (lie land and building to the CITY OF KALISPELL for "other valuable consideration," compensation or project activities as mutually agreed upon by SCHOOL AND CITY and as permitted by the Montana Urban Renewal Law. Central School City/School District MI5 Memorandum, September 22, 1993 Page 5 D. CITY shall be fully responsible for the services it shall agree to perform under any ORDER mutually executed and made part of this Memorandum. i ysis of Buildhig & Adjacent land: (Including the possible closure of 1st Street East.) The City will advertise for requests for proposals from qualified engineering firms to conduct all engineering study of Central School and will Then contract for and fund an architectural.and engineering study to determine the feasibility of renovating (lie existing structure for adaptive re -use. Such factors to be studied will include at a minimum: A complete and accurate survey of the building and surrounding site to prepare an inventory of materials and detailed floor plans upon which to prepare alternate studies and schematics The need and types of mechanical systems (i.e. heating, electrical, plumbing, air conditioning) Structural integrity and upgrades required, including an analysis on compliance with { seismic requirements for historic structures Analysis and recommendations for additions and modifications for handicapped accessibility per the requirements of the Uniform Building Code and the Americans with Disabilities Act. Preliminary schematic drawings and cost estimates to implement the proposed changes and recommendations. `File City will also conduct a preliminary market analysis to identify the most likely and probable highest and best adaptive reuse of the structure and land. It will consult with the School District, Flathead County, City of Kalispell, Flathead Valley Community College, Northwest Montana Museum and Historical Society, and other public and quasi public agencies to determine their space needs. The Kalispell Development Corporation and its planning committees will be asked to express their views on how the building may benefit the entire community. Consideration will be given to private redevelopment and reuse of (lie asset so that it may contribute to the goals of the Downtown Redevelopment Plan, Ordinance #933. however, such consideration is in no way intended to exclude or discourage public and/or public/private partnership redevelopment and reuse of the property. Specifically, the Northwest Montana Museum and Historical Society will become an active participant in seeking solutions to the redevelopment and reuse of the property. Central School City/School District #5 Memorandum, September 22, 1993 Page 6 Both parties acknowledge it may be necessary to engage a qualified real estate appraiser to express an opinion of value. The appraiser will be acceptable to both the District and the City, however the cost of any appraisal will be paid by file City. All of (lie information available will be analyzed by both parties and become the basis for The Central School Redevelopment Project & Plase, to be adopted by both parties and ifill) leniqued by the City. Neither party may unreasonably withhold its approval of the Project & Plan- and agrees that it should be implemented during FY 1994. 11 This INTER -AGENCY MEMORANDUM WAS PASSED AND APPROVED BY THE BOARD OF TRUSTEES, SCHOOL DISTRICT 05, KALISPELL, MONI'ANA, ON SEPTEMBER 9, 1993; AND, BY TIIE CITY COUNCIL AND MAYOR OF TILE CITY OIL KALISPELL, SEPTEMBER 20, 1993. Douglas D. Rauthe, Mayor ATI'LST. Amy [ I. Robertson Finance Director Stephen C. Berg, Chairman Board of Trustees ATTEST: