Project Delivery Model
How will the Civic Center be built and maintained?
Since 2004, the City has been investigating options to address its facilities and commissioned several studies to analyze options. Each of these studies concluded that the City should find new facility solutions for both Public Safety and City Administration due to the existing site constraints and costs associated with upgrading and maintaining existing dispersed facilities.
Napa City Council received a presentation on the “Napa Consolidated City Hall and Asset Analysis Study in 2009 and provided direction to incorporate the Study into the Downtown Specific Plan Process and to bring back consolidation recommendations as opportunities presented themselves. In 2013, City Council appropriated initial funds for an Evaluation Study of City Hall Consolidation Alternatives. In 2015, City Council received a presentation on the update for the City Hall Consolidation Project including preliminary financial analysis. Later that year, the Council reviewed the draft Request for Qualifications (RFQ) for the City Buildings Consolidation Project, provided input and direction to staff for incorporation into the final RFQ document, and approved the issuance of RFQ.
In 2016, City Council reviewed the RFQ evaluations and approved the issuance of a Request for Proposals (RFP) to three qualified teams. In the RFP, respondents were asked to provide their proposal for the construction of: new public facilities that would consolidate the city’s administration and public safety functions; and the private development of any excess city land not required on the existing community services building site (City Hall, Police & Fire Administration and Fire Station No. 1) or the Housing Authority Building site.
After reviewing the submissions, the City Council selected the proposal from Plenary as the preferred development proposal and directed City staff to negotiate the terms of an Exclusive Negotiating Agreement (ENA) with Plenary at its May 30, 2017 meeting. The City is currently in exclusive negotiations with Plenary, a private development partner, to design, build, finance, operate, and maintain the new Civic Center. This arrangement is called a “public-private partnership” or “P3”, which is a widely-used approach to financing and building capital facilities throughout the United States. One of the reasons Plenary was selected was because of their expertise in public-private partnerships; they have a portfolio of 47 P3 projects globally and more than 30 P3 projects throughout North America, including specialized government accommodation, justice facilities, education, roads/bridges, rail and healthcare facilities.
The full selection process, RFQ, RFP and the ENA can be viewed here.
How will the City pay for the new Civic Center?
As currently proposed, Plenary would be responsible for designing, building, financing, operating, and maintaining the Civic Center, which includes parking solutions and a new fire station, for 32 years in exchange for annual payments from the City. Preliminary design and construction costs were vetted in a public process through the RFPs and proved to be competitive. Once a final fixed price is negotiated and agreed upon between Plenary and the City, Plenary will assume the risk of any cost or schedule overruns and will guarantee the performance and maintenance (based on contractual performance obligations) of the new facility over the long-term.
The construction and other upfront costs of the Civic Center project will be financed largely from land sale proceeds, bond issuance and financing provided by Plenary. The City will make annual payments to Plenary utilizing General Fund revenue, which means there will be no new taxes or additional costs to residents. A portion of these payments will be subject to Plenary meeting contractual obligations related to the facilities’ performance and maintenance.
Additionally, Plenary will purchase, at fair market value, the School Street Site (current location of City Hall, Police and Fire Administration, and Fire Station No. 1) for a private development project.