The Farmers Market Project (No. 70571603) will construct a new Farmers Market facility on an existing City-owned lot. The lot, which is located south of Truman Rd. between Osage and Liberty Streets, is in need of infrastructure improvements including flatwork, stormwater, curb and gutter, and ADA improvements. This project will address these needs while creating an updated Farmers Market facility that can be used for other activities during times the space is not used for the market.
On November 6, 2017, results of the preliminary design for the Farmers Market Project (No. 70571603) were brought to City Council for input. Three options were presented: (1) base enclosed structure; (2) base enclosed structure with enhanced features including restrooms; and (3) enhanced enclosed structure plus a second open air structure. Direction was given to finalize the design and bid the project with all elements represented in option 3 for an estimated cost of $3.3 million.
McCownGordon presented a base GMP proposal of $2,909,375.00 for all of the project elements that were presented in November. This includes the enclosed structure with overhead garage doors, restrooms, catering kitchen, and heating. It also includes the second open air structure on the east end of the lot. Staff further recommends accepting the following project alternates:
- Alternate 1 - Cupola/Clearstory ($57,512) - This is a design element that is important for achieving the desired quality for the project. It also represents an artistic element that contributes to the City's minimum 1% commitment for art in public projects.
- Alternate 3 - Cast Stone Cap at Open Air Structure CMU Pedestals ($4,601) - This is an enhanced design feature that will improve continuity between the two structures.
- Alternate 4 - Fire Alarm System ($9,301) - Required to comply with the International Fire Code.
- Alternate 6 - Upgrade Roofing Panels on the Open Air Structure ($31,088) - This will ensure that the open air structure matches the design of the enclosed structure.
- Alternate 9 - Dark Bronze Anodized Overhead Doors ($8,705) - This upgrade was recommended by the design team to match the doors to the roof.
Staff recommends rejecting Alternate 8. This is a deduct alternate of $46,993 to downgrade the rooftop signage to standard face-lit channel letters rather than the proposed LED signage. The rooftop signage is a focal point of the structure, so the LED signage is preferred to enhance the overall appearance. Rejecting Alternate 8 and accepting Alternate 1 is a combined investment of $104,505 in artistic design features for the project. This represents 3.5% of the project costs pursuant to the City's commitment to adorn public buildings with public art (Resolution #6218). The idea of using the 1% art allowance for project design features was discussed at the last meeting of the Mayor's Commission on Public Arts. However, due to the timing to finalize the GMP, the Arts Commission did not take formal action on the recommendation.
Due to cost constraints, staff recommends rejecting the following alternates:
(Note: If Council desires to include any of these alternates in the project, a motion should be made to amend the ordinance to include one or more of the alternates listed below by its corresponding number).
- Alternate 2 - Automated Controls System ($29,347) - Staff determined this is not necessary for building maintenance.
- Alternate 7 - Alternate Lighting for Roof Signage ($62,076) - This change would allow for alternate lighting colors on the red exterior signage for special events. For example, the lights could be changed to blue for the Royals home opener.
- Alternate 5 - Temporary irrigation for plantings ($27,855) and;
- Alternate 10 - Permanent irrigation system ($29,844) - Limited additional landscaping is included in the project for the Rotary Plaza. This area will be watered and maintained by the Parks/Recreation/Tourism Department.
- Alternate 11 - Additional restroom structure ($275,726) - This alternate would add a stand alone restroom structure on the east end of the site. Since the enclosed structure includes a restroom facility, this alternate is not recommended due to price.
The combination of the GMP (including recommended alternates), owner allowances (including contingency), and in-kind donations results in a total construction cost of $3,303,383, which is within $3,400 of the original estimate. The City has identified a minimum of $815,000 from grants or private funds to support the project. Staff recommends funding the remaining balance with an interfund loan from the Water Fund to the Parks/Recreation Improvement Sales Tax Fund (PRST Fund).
The PRST Fund will make annual payments to the Water Fund over a 15-year term at 2.5% interest rate. This is a mutually beneficial funding strategy that is authorized in the City Charter and City Financial Policies. It allows the Water Fund to earn a higher interest rate than it currently does through traditional municipal investment options. Staff estimates that the Water Fund will generate approximately $138,000 in additional interest over the 15-year life of the interfund loan. In turn, the City can avoid financing costs and obtain a lower interest rate for the project than it would through the bond market. The 15-year interfund loan is estimated to save the City over $800,000 compared to a 20-year bond.
On January 25, 2018, the Public Utilities Advisory Board received a staff update on the interfund loan proposal. The Board voted to recommend that the Council not approve that loan.