For City Council Meeting [November 15, 2022]
TO: Honorable City Council
FROM: Marcus Fuller, City Manager
Title
Request that the City Council: (1) Adopt Resolution No. 8010 Approving the Selection of Griffin | Swinerton, LLC, a Delaware Limited Liability Company, as the Development Team to Design-Build-Finance-Operate-Maintain a New Police Station (in Accordance with Government Code Section 5956) Pursuant to Request for Proposals No. 22-062 Related to Development of a New Police Station on the Site of the Existing Police Station Located at 128 N. Willow Avenue and Approving a Pre-Development Agreement; and (2) Authorize the City Manager to Execute All Documents.
POWERPOINT
(ACTION)
Body
BACKGROUND
On April 26, 2022, the City Council adopted Resolution No. 7870 affirming compliance with the State Surplus Land Act related to the development of a new police station utilizing the public private partnership mechanism set forth in Government Code section 5496. A copy of the related staff report is included as Attachment 1.
The Design-Build-Finance-Operate-Maintain process (in accordance with Government Code Section 5956) allows the City to enter into a Public Private Partnership (P3) contract with a team led by development professionals and their general contractor and designers, etc., (a "Developer") to deliver a project, and incorporate a Ground Lease and Facility Lease to establish a financing mechanism (without debt issuance by the City) to fund the entire cost of designing, building, operating and maintaining the project.
In this delivery method, the Developer itself finances the entire cost of the project by entering into a long-term ground lease over the City's property, and with the City in return entering into a long-term facility lease with the Developer to pay monthly lease payments that recover the Developer's costs to complete the project in addition to negotiated overhead and profit margins. At the end of the lease term, the City acquires the new...
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