Consideration and Adoption of Resolution No. 2016-22:  A resolution of the Mayor and City Council of Flagstaff, Arizona, authorizing the submission of a bid response to the United States General Services Administration for the renovation and expansion of the United States Geological Survey Campus (Authority to submit a bid response re USGS Campus) 

This resolution is to authorize the City Manager to submit a bid in response to RLP No. 4AZ0231 issued by the U.S. General Services Administration (GSA) for remodel, and/or new construction at the City-owned property known as the "USGS Campus" to the United States General Services Administration (GSA).

Estimated cost $15,000,000 to $20,000,000, financed through a bond offering, initiated by the City, amortized over a 20 year period. The City is proposing that GSA will sign a lease for 20 years and guarantee the lease during that period. The lease will guarantee the payback of the borrowed funds, plus interest.

COUNCIL GOALS:
Improve the economic quality of life for Flagstaff through economic diversification, and by fostering jobs and programs that grow wages and revenues.

Yes. On March 15, 2011 Council approved Resolution No. 2011-16 Authorizing the submission of a bid response to the United States General Services Administration (GSA) for the Renovation and Expansion of the United States Geological Survey Campus.  The City advertised for design/build and financing.  Due to federal budget cuts, GSA reduced the scope and the project was put on hold. The City then formally terminated this earlier project. 

1) Adopt Resolution No. 2016-22 which will allow the City Manager  to submit a bid in response to RLP no. 4AZ0231 from GSA.
2) Not adopt Resolution No. 2016-22 which may result in GSA awarding the contract to another entity, which would result in the loss of USGS as a long term tenant for the City of Flagstaff.

The USGS Campus was established at its current location in 1963. Originally, it was the base of operations for scientists involved in astrogeology related to the NASA Space Program.  Since that time, the Campus has expanded to include scientists involved in geology, geography and water resources, as well as astrogeology.  Today, the USGS Campus employs over 200 scientific personnel.

Currently, GSA leases approximately 85,000 square feet within four buildings.  In 1999, building #6 was constructed to add approximately 25,000 sq. ft. The remaining buildings were constructed in the 1970’s and have been identified as containing contaminated building materials such as asbestos.  The City is proposing to keep building #6 intact.  The remainder of the campus will either be replaced or remodeled at a minimum of 49,445 sq. ft. to a maximum of 49,952 sq. ft. All contaminated buildings will be remediated of any contamination.

The City has a very short time to submit a bid. The 2016 bid response will be similar to the 2011 bid response. A copy of RLP No. 4AZ0231 is on file with the City Real Estate Manager's Office and available for review.  Any bid response will be consistent with the RLP.

The current GSA lease expires in December 2016.

GSA will sign a lease for 20 years and guarantee the lease during that period.  The lease will guarantee the payback of the borrowed funds, plus interest.The City will be required to finance this project through bond financing.  There is the possibility that interest rates and other costs will make the proposed rent higher than budgeted by GSA, in which case the project would not proceed with financing.

The USGS Campus has provided an array of economic benefits to the Flagstaff community.  Currently, the facility employs over 200 people in the scientific sector, most of which are in high paying jobs.  The annual payroll for the local USGS personnel is over $13,000,000 per year.  There is a strong connection between NAU and the USGS Campus that creates a synergy for the growth of both facilities.  By committing to the project, the community is assured of the continuation of these substantial economic benefits.

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The USGS bond measure, which was approved by the voters in 2004, supports the remodel and/or reconstruction as requested by GSA for this project.