AGENDA CAPTION:
Title
Consider approval of Resolution 2019-249R, approving the award of a Predevelopment Services Agreement with Hunt Companies, Inc. in the not-to-exceed amount of $1,500,000 for pre-development services relating to the new Public Services Complex; authorizing the City Manager or his designee to execute the agreement on behalf of the City; and declaring an effective date.
Body
Meeting date: December 3, 2019
Department: Public Services - Tom Taggart, Executive Director (by Lynda Williams, Purchasing Manager).
Amount & Source of Funding
Funds Required: $1,500,000
Account Number: C132
Funds Available: $1,500,000
Account Name: Municipal Services Complex
Fiscal Note:
Prior Council Action: Click or tap here to enter text.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Choose an item.
Choose an item.
Choose an item.
Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
☐ Economic Development - Choose an item.
☐ Environment & Resource Protection - Choose an item.
☐ Land Use - Choose an item.
☐ Neighborhoods & Housing - Choose an item.
☒ Parks, Public Spaces & Facilities - Choose an item.
☐ Transportation - Choose an item.
☐ Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
Choose an item.
Background Information:
Under the guidance of the City’s Bond Program Manager, Jacobs Project Management Company (Jacobs), the City issued a Request for Qualifications (RFQ) for the selection of a qualified developers to design, finance, and construct the new Public Services Complex. Four (4) Statements of Qualifications were received and following evaluations by a city staffed Evaluation Committee including Jacobs, three firms were scored and shortlisted and ranked based evaluation criteria published in the RFQ. The three firms, Cowperwood Company, Development 2000, and Hunt Companies, Inc. were invited to respond to Request for Proposals (RFP) Step 2 of the solicitation/evaluation process. One of the three firms withdrew from the RFP Step which resulted in two of the firms (D2000, and Hunt) provided detailed responses which addressed their recommended plan for the execution of the project including proposed financing models, design concepts, a design and construction schedule, quality assurance and quality control plans, budget and costing methodologies, and lastly the two firms were interviewed. The evaluation committees’ final scores and ranking resulted in recommending the top-ranked firm, Hunt Companies, Inc., as the most qualified firm who provides the best value to the City of San Marcos. Following contract negotiations lead by Jacobs, the evaluation committee is recommending award of a Predevelopment Services Agreement (PSA)) to Hunt Companies, Inc. (Hunt) in the not-to-exceed amount of $1,500,000 for pre-development phase services including financial development, design development, constructability reviews, cost estimating/budgeting, procurement of additional professional services, etc. prior to the execution of a Development Agreement and financial close
Within 4 months of the execution of the Predevelopment Services Agreement, Hunt will provide the City with a Guaranteed Maximum Purchase Price (GMPP) proposal for review and negotiation based on a detailed development schedule and preliminary construction drawings and specifications. The GMPP is the total cost to complete the project comprised of financing costs, design fees, construction cost, project contingency, 3rd party testing services, and building commissioning. A negotiated GMPP will be presented to City Council for approval at which time the City will execute the Development Agreement to proceed with completing the design and begin construction phase services. If the City and Hunt cannot come to an agreement on the GMPP proposal, the City reserves the right to terminate the PSA for convenience, reimburse Hunt for predevelopment services performed, and retain ownership of any drawings, specifications, models, renderings or other materials prepared in connection with the project.
This procurement methodology provides the City with the maximum flexibility to help minimize the potential cost of the development because Hunt and the City of San Marcos will work together throughout the process to develop the most efficient program as it relates to the various building components and the related design features such as building materials. It is anticipated that the GMPP will be presented to Council in February 2020.
Council Committee, Board/Commission Action:
Click or tap here to enter text.
Alternatives:
Click or tap here to enter text.
Recommendation:
Staff recommends award of an Exclusive Negotiating Agreement to Hunt Companies, Inc. in the amount of $1,500,000 for Pre-Development Phase Services.