JOINT MANAGEMENT TEAM SERVING JOINT BOARD FORMED UNDER INTERLOCAL AGREEMENT BETWEEN CITY OF WEST LAFAYETTE AND TRUSTEES OF PURDUE UNIVERSITY

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Brittany Atkinson
5 years ago
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1 JOINT MANAGEMENT TEAM SERVING JOINT BOARD FORMED UNDER INTERLOCAL AGREEMENT BETWEEN CITY OF WEST LAFAYETTE AND TRUSTEES OF PURDUE UNIVERSITY Special Meeting* January 21, 2016 * Voluntary election to meet under Open Door Law

2 PROCUREMENT PROCESS UPDATE RFP responses received on schedule on December 21 st Compliant and financially committed proposals received from both short-listed teams Basic components of proposals Financial Technical Proposal review (carried out in accordance with methodology prescribed in Final RFP) Maximum 105 points available Financial Proposal Feasibility Score (maximum 5 points available) Scope Score (maximum 75 points available) Technical Score (maximum 20 points available) Price Bonus (maximum 5 points available) Two review teams Financial Technical Review teams first assessed whether the separate proposals were compliant with the RFP (i.e., met the pass/fail requirements) Following a determination that proposals were compliant, review teams separately determined the Financial Proposal Feasibility Score, Scope Score, Technical Score and Price Bonus Score based on criteria set forth in the RFP. Joint Board s Authorized Representative tallied all scores to determine the team with the highest overall score. 2

3 ACTIONS BY JOINT MANAGEMENT TEAM Project s Authorized Representative has submitted recommendation on preliminary selection of developer based on the evaluation and scoring process In turn, role of Joint Management Team is to act on this recommendation and submit it to the Joint Board for consideration, together with final form of the PPA Resolution of Joint Management Team Recommendation of adoption of final form of PPA Recommendation of preliminary selection of developer 3

4 JOINT BOARD UNDER INTERLOCAL AGREEMENT BETWEEN CITY OF WEST LAFAYETTE AND TRUSTEES OF PURDUE UNIVERSITY Regular Meeting January 21, 2016

5 WELCOME AND ADMINISTRATIVE ITEMS 5

6 STATE STREET REDEVELOPMENT PROJECT

7 OBSERVATIONS ON PROCUREMENT RESULTS Two compliant proposals, both of which committed to 100% of Project Base Scope plus varying levels of Project Enhanced Scope Highlights include: Single point responsibility of developer to deliver, maintain and hand back the project at the end of the 22-year term Equity investor committed to hold investment for full 22-year concession period Developer-guaranteed design and construction price Developer to stand behind pavement performance for 22-year term and hand back project with a 6-year remaining life, for a total of 28 years of performance commitment Full project opening not later than December

8 OBSERVATIONS ON PROCUREMENT RESULTS Additional highlights include: Developer-secured, non-recourse financing o Joint Board s financial liability limited to paying Availability Payments, subject to developer s achieving agreed-upon performance metrics Private sector risk transfer and guarantees throughout the 22-year term: o Project delivery o Project performance o Project handback 8

9 OBSERVATIONS ON PROCUREMENT RESULTS Additional highlights (continued): Private sector innovation Increased proposal development transparency relative to a sealed-bid, low-bid DBB procurement process Potential to reduce costs and introduce innovative design elements through pre-approved alternative technical concepts Availability Payments not due until January

10 OBSERVATIONS ON PROCUREMENT RESULTS Additional highlights (continued): Developer to reimburse Joint Board for most predevelopment expenses and construction-period sponsor oversight costs Both proposers pre-negotiated fully-committed, low-cost debt capital in the private placement lending markets Efficiently-structured financial proposals, with highest ranked proposal committing to all-in cost of capital (debt plus equity) under 4.5% Highest ranked proposal commits to delivering 3 project ladder rungs over Base Scope (that is, the scope package approved by City Council, RDC, Trustees of Purdue University and Joint Board under the anticipated affordability cap last May) 10

11 NEXT STEPS Resolution accepting recommendation of Joint Management Team to preliminarily select developer Public information session: February 3 rd or 4 th [TBD] Public Hearing under BOT Statute: February 11 th Final selection of developer by Joint Board [TBD] Commercial close: estimated late February to March Financial close: no later than end of May Joint Management Team, under Joint Board s direction, to continue to explore options for planning and delivering additional State Street project elements 11

12 REMAINING AGENDA ITEMS 12

13 JOINT BOARD UNDER INTERLOCAL AGREEMENT BETWEEN CITY OF WEST LAFAYETTE AND TRUSTEES OF PURDUE UNIVERSITY Regular Meeting January 21, 2016

Honors College and Residences Request BOT Approval to Finance, Construct and Award Construction Contract

Honors College and Residences Request BOT Approval to Finance, Construct and Award Construction Contract PFC 9/25/14 BT 9/26/14 Campus: Project Description: Architect/Engineer: West Lafayette This project