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|April 25, 2019 City Council Regular Meeting|
29. Motion to Award a Design Assistance Contract to Oak View Group Facilities, LLC, as part of a Phased Contract to Include the Future Lease of the New Savannah Arena for Operations and Management Services (Event No. 6488)
The City issued a request for proposals (RFP) for highly qualified companies specializing in the comprehensive operational and management of several city-owned facilities. The facilities identified in the RFP were: the existing Savannah Civic Center, the New Savannah Arena ("Arena"), and the Water Works Pump House.
Upon further evaluation, staff recommends the award of design assistance services for the Arena to the joint venture created between the Oak View Group, LLC and Pat Mathis (“OVG”), in the estimated amount of $87,500.00. Pursuant to the RFP, staff also recommends a phased approached for additional contracts relating to design, operations, and management services. Any future contracts related to this RFP would require additional City Council approval.
In addition to other duties, OVG can provide specialized insight to the project team that will create a more commercially viable and efficient facility by:
The method used for this procurement was the request for proposals (RFP), which evaluates criteria in addition to cost. The criteria used for this RFP were relevant firm experience and capabilities, team experience and qualifications, strategic approach, DBE participation, local vendor participation, and fees. The proposals were evaluated on both qualitative and quantitative data. Each proposal had strengths and areas for improvement. This contract is being recommended to the proposer that scored the highest across all six (6) categories.
OVG's proposal includes a $2.5 million interest-free forgivable loan, amortized over the first five year lease. In the event the City renews the lease for an additional 5 years, OVG will provide another $2.5 million interest-free forgivable loan. With limited exception, under the lease, OVG will take on all rights and risks associated with arena ownership. Specifically, OVG is responsible for all operational expenses and operational losses (if any). The lease will also provide the City in turn with guaranteed rent payments of $200,000 over the life of the contract. In addition the lease will stipulate the City will receive a revenue share payment based on the NET bottom line of the venue.
This project was assigned an open DBE goal for a maximum of 15 points. A maximum of six points was awarded to the proposer with the highest level of DBE participation at the prime level. A maximum of nine points was awarded to the proposer with the highest level of DBE participation at the subcontractor level. The recommended proposer earned the full 15 points for DBE participation. OVG submitted its proposal as a joint venture with Pat Mathis Construction Company (A). OVG submitted DBE subcontractor participation in the amount of 75%. Further, OVG will be contractually bound to meet their proposed DBE participation goals, which will be verified by the Office of Business Opportunity.
The contract shall be from April 25, 2019 through February 28, 2022 or upon the date of Substantial Completion issued by the Architect, whichever is sooner.
Bret Bell, Assistant to the City Manager
Estimated $87,500.00 expenditure from the Capital Improvements Fund, funded by SPLOST V and VI
Exhibit 1: Arena Design Assistance Purchasing Summary.pdf
Exhibit 2: Arena Design Assistance Funding Verification.pdf