Item Coversheet
City of Independence
BILL NO. 18-500Ord.No:          18853

Agenda Title:

18-500 - 1R. An ordinance authorizing a contract with McCownGordon Construction for the Farmers Market Project (No. 70571603) for a Guaranteed Maximum Price of $2,997,445.00; authorizing future minor change orders for an amount not to exceed $290,938.00 and/or time extensions; authorizing an interfund loan to finance the project; increasing project appropriations; and declaring an emergency. 


Staff recommends approval.
Executive Summary:

Staff recommends approval to enter into an agreement with McCownGordon Construction for a Guaranteed Maximum Price (GMP) to design and construct the Farmers Market to be located at the intersection of Truman Road, Osage Street, and Liberty Street, utilizing the design-build project delivery method. The proposed ordinance authorizes appropriations and an interfund loan to finance the project through Parks & Recreation Sales Taxes. 



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: 

  1. 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. 
  2. 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.
  3. Alternate 4 - Fire Alarm System ($9,301) - Required to comply with the International Fire Code. 
  4. 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. 
  5. 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). 

  1. Alternate 2 - Automated Controls System ($29,347) - Staff determined this is not necessary for building maintenance.
  2. 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. 
  3. Alternate 5 - Temporary irrigation for plantings ($27,855) and; 
  4. 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. 
  5. 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. 



Emergency Justification:

Staff originally planned that this item would not require an ordinance and could therefore be considered by City Council in a single meeting. However, an ordinance is required to authorize appropriations since the project was not anticipated in the Fiscal Year 2017-18 budget. In an effort to streamline, all actions related to the project (contract approval, interfund loan approval and appropriations) are incorporated in the proposed ordinance. 


Immediate action is required to finalize City approval of the project prior to the Rotary Club of Independence Mardi Gras Carnival event on February 17, 2018, in order to ensure successful fundraising and the economic feasibility of the project. Furthermore, taking this emergency action will accelerate the construction schedule in order to ensure project completion in advance of the 2018 Santa-Cali-Gon Festival. 

Fiscal Impact:

The total capital project cost is $3,353,183.00, including the previously approved preliminary design contract in the amount of $49,800. The GMP associated with this contract is $2,997,445.00. All project sources and uses of funds are included in the attached project summary. The City previously appropriated $600,000 of Community Development Block Grant (CDBG) funds for the project. 


Operating costs for the facility will be incorporated into the proposed Fiscal Year 2018-19 budget for the Parks & Recreation Improvements Sales Tax. Staff recommends the following fee schedule for rental of the enclosed facility to help offset operating costs:


Resident/Non-Profit Rates

  • $250 per half-day (4 hours)
  • $450 per full-day (8 hours)
  • $650 per extended day (24 hours)


Non-Resident Rates

  • $350 per half-day (4 hours)
  • $550 per full-day (8 hours)
  • $750 per extended day (24 hours)


If the City Council supports this proposed fee structure, the fees will be recommended for adoption in the Schedule of Fees at a future City Council meeting when other special event fees are proposed (prior to the facility opening in July 2018). 

Department:          City Manager's OfficeContact Person:          Lauren Palmer

City Managers OfficeApproved
Finance DepartmentApproved
City Council Mgmt AnalystApproved
Finance DepartmentApproved
Law DepartmentApproved
City Managers OfficeApproved
City Clerk DepartmentApproved

Council Action:          Council Action:          Accepted

Farmers Market ContractContract
Contract Addendum 1 - CDBG RegulationsExhibit
Exhibiit A - GMP ProposalExhibit
Exhibit B - Notice to OwnerExhibit
Exhibit C - Project Team Staff Hourly RatesExhibit
Exhibit D - Rental Rates for Design-Builder's EquipmentExhibit
Farmers Market Master BudgetBackup Material
Project Sources and Uses SummaryBackup Material
Management Analyst Review MemoBackup Material
Interfund Loan Debt ScheduleBackup Material