Regular 3.
Regular City Council Meeting
- Meeting Date:
- 12/16/2019
- TITLE
- City Facilities Request for Proposals Recommendation to Council
- PRESENTED BY:
- Kevin Iffland
- Department:
- City Hall Administration
Presentation:
Yes
PROBLEM/ISSUE STATEMENT
On June 24, 2019 City Council directed Staff to issue a request for proposals (RFP) for the purpose of gathering proposals for a consolidation of City Offices into a single or grouped facility in the downtown area of Billings. Currently, City Offices in downtown Billings are spread throughout five (5) locations that the public accesses. There is an office space deficiency across the departments as identified in the Facilities Master Plan completed in September of 2015 abd refreshed in 2019. The Phase I RFP established a boundary for proposers to submit responses for facilities to accommodate the designated Departments from the Facilities Master Plan according to the scope of information and data presented.
On 07/18/2019 the Request for Proposals was advertised and closed on 08/14/2019. Proposals were received from the following:
The Boyer Company
NAI Business Properties
WC Commercial LLC
Collaborative Design Architects
Miller Trois
Fagg Family Properties LLC
On 08/26/2019 an overview of the proposals submitted were presented to City Council. City Council was asked to select members from the Council to serve on a review committee. A review committee consisting of Deputy Mayor Yakawich, Council Member Clark, Council Member Neese, City Administrator Chris Kukulski, Assistant City Administrator Kevin Iffland, Finance Director Andy Zoeller, Interim Facilities Manager Mark Balter and Architect Randy Hafer was convened. The review committee met on September 9, October 1, and October 15 and reviewed the proposals based on Firm Experience & Resources, Interpretation of Scope and Presentation, Project Methodology and Innovation, and Location and Attributes for the City. The review committee determined the proposal submitted by WC Commercial warranted further examination based on the evaluation criteria. The key points included location, availability of parking, met and exceeded square footage requirements, existing work with government agency and functionality in same space and preliminary design of interior spaces fit needed requirements. The terms and costs submitted under seal were then opened and examined. On October 29 the review committee conducted a site visit of WC Commercial’s proposal at 316 North 26th Street, Billings, MT. On November 12 the review committee met with WC Commercial for further questions on the proposal and terms and costs. On December 3, 2019 the review committee met and determined WC Commercial's proposal was the top proposal. The review committee determined the next course of action would be to enter negotiations with WC Commercial.
The review committee is asking City Council for authority to enter into negotiations with WC Commercial. Negotiations may involve financial terms and conditions, lease, lease to own, own or other options, build out terms and conditions, parking terms and conditions, required inspection and appraisals or any other items deemed necessary to move forward with occupancy of the proposed building. Any agreement would be contingent on further City Council approval of agreement and financing terms, conditions and authority.
On 07/18/2019 the Request for Proposals was advertised and closed on 08/14/2019. Proposals were received from the following:
The Boyer Company
NAI Business Properties
WC Commercial LLC
Collaborative Design Architects
Miller Trois
Fagg Family Properties LLC
On 08/26/2019 an overview of the proposals submitted were presented to City Council. City Council was asked to select members from the Council to serve on a review committee. A review committee consisting of Deputy Mayor Yakawich, Council Member Clark, Council Member Neese, City Administrator Chris Kukulski, Assistant City Administrator Kevin Iffland, Finance Director Andy Zoeller, Interim Facilities Manager Mark Balter and Architect Randy Hafer was convened. The review committee met on September 9, October 1, and October 15 and reviewed the proposals based on Firm Experience & Resources, Interpretation of Scope and Presentation, Project Methodology and Innovation, and Location and Attributes for the City. The review committee determined the proposal submitted by WC Commercial warranted further examination based on the evaluation criteria. The key points included location, availability of parking, met and exceeded square footage requirements, existing work with government agency and functionality in same space and preliminary design of interior spaces fit needed requirements. The terms and costs submitted under seal were then opened and examined. On October 29 the review committee conducted a site visit of WC Commercial’s proposal at 316 North 26th Street, Billings, MT. On November 12 the review committee met with WC Commercial for further questions on the proposal and terms and costs. On December 3, 2019 the review committee met and determined WC Commercial's proposal was the top proposal. The review committee determined the next course of action would be to enter negotiations with WC Commercial.
The review committee is asking City Council for authority to enter into negotiations with WC Commercial. Negotiations may involve financial terms and conditions, lease, lease to own, own or other options, build out terms and conditions, parking terms and conditions, required inspection and appraisals or any other items deemed necessary to move forward with occupancy of the proposed building. Any agreement would be contingent on further City Council approval of agreement and financing terms, conditions and authority.
ALTERNATIVES ANALYZED
City Council may:
- Approve beginning negotiations with WC Commercial on leasing, leasing to own or purchasing 316 North 26th Street;
- Disapprove beginning negotiations with WC Commercial on leasing, leasing to own or purchasing 316 North 26th Street or;
- Provide staff with further direction in regards to the City Facilities request for proposals
FINANCIAL IMPACT
The terms and costs proposed and associated on floor areas First Floor, Second Floor, Fourth or Fifth and Secure Basement Garage/Storage (112,233 gross square footage) include:
20 year Lease with Tenant Improvements (with memorandum of understanding) - $15.45 per square foot (psf) plus Common Area Maintenance (CAM)
20 year Lease with Tenant Improvement (no memorandum of understanding) - $18.40 psf plus CAM
Purchase - $27,750,000
A third party negotiator may be retained by the City to facilitate the negotiation process which would have an associated cost.
20 year Lease with Tenant Improvements (with memorandum of understanding) - $15.45 per square foot (psf) plus Common Area Maintenance (CAM)
20 year Lease with Tenant Improvement (no memorandum of understanding) - $18.40 psf plus CAM
Purchase - $27,750,000
A third party negotiator may be retained by the City to facilitate the negotiation process which would have an associated cost.
RECOMMENDATION
Staff recommends approval of entering negotiations with WC Commercial as outlined.