Joint Regional Agency Governance Headquarter Project

 Communication Update November 15, 2011

For the past two years, staff from MTC and the Air District worked together on a strategy to co-locate into a regional government headquarters. The Air District began evaluating options to rehabilitate or replace their existing headquarters (939 Ellis Street, San Francisco), which is 44 years old, requires a substantial investment for deferred maintenance cost, and lacks additional space for staff growth. In comparison, the MetroCenter building (101 – 8th Street, Oakland)  which is 30 years old, has limited capacity for further growth and would require MTC to fragment its occupancy into multiple sites in order to accommodate growth. 

 Sharing a common goal and taking a regional approach, the agencies commenced development of a joint facility strategy with the following objectives: 

•  Provide for greater building efficiencies,
•   Lessen environmental impact through energy efficiency and sustainability,
•   Reduce costs through interagency sharing of resources; and
•   Improve interagency cooperation and initiatives through co-location. 

This strategy would also allow each agency to potentially achieve operational efficiencies through the sharing of resources and equipment (mail rooms, general services, shipping/receiving, telephone equipment, etc), and common space (board rooms and public meeting facilities, library, training center) and co-locating similar agency functions.

The Bay Area Headquarters Authority (BAHA) was created as a Joint Powers Authority (JPA) between BATA and MTC to purchase and develop 390 Main Street, San Francisco for the Regional Agency Headquarters Facility. BAHA purchased the building in October 2011 and intends to renovate and retrofit the building.  MTC, BATA, and the Air District intend to relocate to the building within two years. The co-location of the regional agencies encourages further integration of regional planning efforts currently under the umbrella of One Bay Area. Other regional agencies have indicated interest in relocating into the building as tenants.  The San Francisco Bay Conservation and Development Commission (BCDC), a state agency, has expressed interest in leasing space in and relocating to the Regional Agency Headquarters Building.

BAHA invites your frim to submit a Statement of Qualifications (SOQ) for architecture and engineering services for the renovation and seismic retrofit of BAHA's Regional Agency Headquarters Facility (BAHA Facility) at 390 Main Street, San Francisco. You may download a copy of the Request for Qualifications (RFQ) and additional available reference material from the Metropolitan Transportation Commission's (MTC's) website at: http://procurements.mtc.ca.gov

Consultant Selection Timetable:

10:00am, Thursday, November 10, 2011:   Proposers’ conference and tour to be held at 390 Main Street, San Francisco, CA 94105

9:30am, Tuesday, November 15, 2011: MTC offices tour to be held at 101 Eighth Street, Oakland, CA 94607

1:00 pm, Wednesday, November 16, 2011:  Proposers’ conference and tour to be held at 390 Main Street, San Francisco, CA 94105

9:30am, Monday, November 21, 2011: Air District laboratories tour to be held at 3033 Richmond Parkway, Suites 300-302, Richmond, CA 94806

9:30am, Tuesday, November 22, 2011: Air District office and laboratories tour to be held at 939 Ellis Street, San Francisco, CA 94109

2:00pm, Monday, November 28, 2011: Closing date/time for receipt of requests for clarification/exceptions

No later than three (3) working days prior to the date proposals are due: Deadline for protesting RFQ provisions

2:00pm, Monday, December 5, 2011: Closing date/time for receipt of SOQs

Week of December 12, 2011 (approximate): Interviews/discussions (if held)

Week of December 12, 2011 (approximate):  Revisions to SOQs (if requested)

Wednesday, December 21, 2001: (approximate) Bay Area Headquarters Authority Approval

Communication Update March 14, 2011

On March 14, 2011, CB Richard Ellis (CBRE) distributed, via email and a dedicated webpage (www.cbre.com/regionalfacility) a Request for Proposal (RFP) to owners, developers, brokerage firm regional leadership and other interested parties throughout the Bay Area. The RFP details the required criteria for an acquisition to create a Joint Regional Agency Co-location Facility. It also outlines the required format, procedure for submission and timeline for the project.

At the end of the three week period permitted for submissions, CBRE will review the submitted proposals for conformity. Once conforming proposals are selected, the team will analyze and compare the alternatives from both quantitative and qualitative viewpoints. Utilizing established evaluation criteria methods, CBRE will determine a short list of alternatives to present for review to the Agencies in May.

Communication Update March 1, 2011 

 I. Project Objectives

The Metropolitan Transportation Commission (MTC )currently employs 200 employees and the Association of Bay Area Governments (ABAG) currently employs 77 employees. The two agencies are partial owners, through a condominium ownership structure, of a 77,121 gross sq. ft. building at 101 Eighth Street in Oakland. There is no outstanding real estate debt on the property. Within this building, MTC occupies approximately 50,000 sq. ft. of space and ABAG occupies approximately 17,000 sq. ft. of space. BART holds a ground lease on the property and has first right of refusal for owning or leasing space vacated by MTC or ABAG.

The Bay Area Air Quality Management District (Air District) currently employs approximately 343 full time employees, about 200 work in the Air District headquarters at 939 Ellis Street in San Francisco. The Air District owns the 82,212 gross sq. ft. building unencumbered by any outstanding debt. Other Air District employees, primarily air quality inspectors and staff who conduct air quality testing and monitoring, work out of small leased office spaces elsewhere within the nine-county Bay Area.

The objective of this project is to identify viable real estate option(s) in the City of Oakland and City of San Francisco within close proximity to major forms of public transportation for the co-location of the three agencies into a regional facility. The options will be presented to the governing boards of each agency for review and approval before proceeding with a final recommendation and negotiations. 

II. Real Estate Services

CB Richard Ellis was selected to act as real estate advisor and broker for this project. The scope of work includes:

1. Site Search, Selection and Analysis
2. Proposal Evaluation and Shortlist Recommendations
3. Board Presentations and Approval to Proceed
4. Negotiations and Financial Analysis
5. Final Recommendation
6. Closing of Escrow and Documentation

As a next step, CBRE will be engaging the market and speaking to the Oakland and San Francisco economic development staff, owners, developers, landlords and joint ventures that desire to present viable real estate options for this project. 
 

Project Timeline and Documents

October, 2008 – Issuance of RFP for Strategic Planning Services

March, 2009 – Executive Committee Meeting – Overview of RFP selection of HOK

July 2009 - The Air District’s Executive Committee directed staff to explore co-location option opportunities with MTC, ABAG and other public agencies. The San Francisco Bay Area Conservation and Development Commission – the fourth regional agency - indicated interest in relocating into the building as a tenant once their existing lease expires.

September 2009 -  the MTC Administration Committee and the ABAG Finance and Personnel Committee authorized their respective staff to participate in the development of a joint facility strategy. 

November 2009 – Executive Committee – Employee Survey Results – Presentation by HOK

June 2010 - The Air District awarded a contract to CB Richard Ellis (CBRE) to provide real estate advisory services.

August 2010 – Air District Executive Committee – Received Presentation of Consolidation Strategy Approach from CBRE

October 2010 – Air District Executive Committee – Received CBRE Phase II Study Findings including proxy building

October 2010- Results of CBRE’s findings and recommendations were presented to a joint agency Ad Hoc Strategic Facilities Planning Committee, consisting of each agency’s Chair, Vice-Chair and Executive Director. The Committee directed staff to take the item to each of the three boards – including proxy buildings 

November/December 2010 - Each board authorized staff to proceed with the next phase of selecting a broker to identify viable real estate options in both the Oakland and San Francisco markets.

March 14, 2011 - CBRE distributed a Request for Proposal (RFP) to owners, developers, brokerage firms and other interested parties to identify proposed properties in Oakland or San Francisco.

February, 2011 – MTC Awarded CBRE Broker Contract for Commercial Real Estate Transaction

May, 2011 - Air District Board of Directors received CBRE presentation of short‐list of properties for consideration and authorization to proceed with real estate property negotiations with all five.

May 2011- Each agency governing board authorized their staff to proceed with real estate negotiations with five (5) short-listed properties.  Staff and CBRE team members met with the economic development teams from both cities to identify viable real estate options.  

1945 Broadway Street, Oakland, CA

1221 Broadway Street, Oakland CA

1100 Broadway Street, Oakland, CA

390 Main Street, San Francisco CA

875 Stevenson Street, San Francisco, CA

June 2011 – The Executive Directors met with Mayor Lee and Mayor Quan in separate meetings

to discuss the real estate options in their respective cities. 

July, 2011 -  Board of Directors received staff recommendation on 390 Main Street