Recommend approval to renew an annual contract for brokerage services to Colliers International in an amount not to exceed three percent of property sale revenue. The Real Estate Services Department will use these services to assist in the disposition of City-owned real property. These services will be valuable given the extensive networks, contacts, and resources of professional brokerages, and will potentially lead to higher exposure of the property sales. The recent changes in Georgia law allow municipalities the option of engaging a professional real estate broker when disposing of real property. The recommended proposer offered a three percent commission rate on properties with a value of up to $1,000,000; a two-and-a-half percent commission rate on properties with a value greater than $1,000,000 up to $5,000,000; and a two percent commission rate on properties with a value exceeding $5,000,000. The fee proposal points were assessed for the recommended proposer based on the highest rate of commission to be assessed. The recommended proposer shall not charge a fee to the City in the event the transaction does not close. The typical listing agreement as proposed by the recommended proposer will be 180 days in length.

The method used for this procurement was the request for proposal (RFP), which evaluates criteria in addition to cost. The criteria evaluated for this RFP were qualifications and experience, examples of experience, fees, DBE participation, and local vendor participation. The recommended proposer proposed a range of commission percentages based on the estimated amount of a given parcel sale, if the sale is accepted by Council.

This is the first of three renewals available. The contract term shall be from January 1, 2020 through December 31, 2020.

Approval