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Agenda 04/23/2013 Item #10G4/23/2013 10.G. EXECUTIVE SUMMARY Recommendation that Board of County Commissioners request that staff prepare and release an RFP for professional real estate services so the county shall have standing contracts with both commercial and residential brokerage and property management firms, to assist the county with the purchase, sale, lease and management of the county's significant real estate holdings. The contracts shall be for a two year term. It is recommended that 2 commercial and 2 residential brokerage /property management firms shall be selected by the Board from among the applicants. The list of all applicants, to include staffs recommendation of the top ten firms, shall be presented to the Board for final selection and approval at the second public board meeting in June, 2013. Establishing such contracts for the county's benefit is in line with the county's existing practice of standing contracts with professionals such as engineers and appraisers, providing assistance and supplementing staff initiatives without the need to hire additional full time personnel. Nothing shall preclude the county from contracting with other real estate brokerage /management firms should the need arise, i.e., the need for specialized knowledge as to a specific project. OBJECTIVE: That Board of County Commissioners request that staff prepare and release an RFP for professional real estate services so the county shall have standing contracts with both commercial and residential brokerage and property management firms, to assist the county with the purchase, sale, lease and management of the county's significant real estate holdings. The contracts shall be for a two year term. It is recommended that 2 commercial and 2 residential brokerage /property management firms shall be selected by the board from among the applicants. The list of all applicants, to include staff s recommendation of the top ten firms, shall be presented to the board for final selection and approval at the second public board meeting in June, 2013. Establishing such contracts for the county's benefit is in line with the county's existing practice of standing contracts with professionals such as engineers and appraisers, providing assistance and supplementing staff initiatives without the need to hire additional full time personnel. Nothing shall preclude the county from contracting with other real estate brokerage /management firms should the need arise, i.e,. the need for specialized knowledge as to a specific project. CONSIDERATIONS: The County has "shelf' contracts with professionals in a variety of fields such as engineering and appraisal services, where staff has the ability to call upon these professionals to assist with projects when the county's in -house professionals need assistance. This arrangement allows the county to deal with variable demands on it's staff without the need to hire additional FTEs. The professionals are called upon only when needed. Further, hiring real estate professionals allows the county to have the benefit of broader market exposure which will result in more competitive pricing in all real estate transactions. FISCAL IMPACT: The cost of professional real estate brokerage services is commission based. Since the transactions that these professionals would be called upon to help with would involve an outside broker anyway, there is no additional cost to the county to enter into such standing contracts. As to property management services, property management fees would be in Packet Page -337- 4/23/2013 10.G. lieu of the cost of hiring additional FTEs to provide such services, thereby reducing the county's personnel costs since the county's fixed cost for such labor would be replaced by lower variable costs. For example, the county hires landscaping contractors, rather than having a larger in- house landscaping staff, for the same reasons. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues at this time, and requires majority support for direction. -JAK RECOMMENDATION: That Board of County Commissioners request that staff prepare and release an RFP for professional real estate services so the county shall have standing contracts with both commercial and residential brokerage and property management firms, to assist the county with the purchase, sale, lease and management of the county's significant real estate holdings. The contracts shall be for a two year term. It is recommended that 2 commercial and 2 residential brokerage /property management firms shall be selected by the board from among the applicants. The list of all applicants, to include staff's recommendation of the top ten firms, shall be presented to the board for final selection and approval at the second public board meeting in June, 2013. Establishing such contracts for the county's benefit is in line with the county's existing practice of standing contracts with professionals such as engineers and appraisers, providing assistance and supplementing staff initiatives without the need to hire additional full time personnel. Nothing shall preclude the county from contracting with other real estate brokerage /management firms should the need arise, i.e., need for specialized knowledge as to a specific project. PREPARED BY: Commissioner Georgia Hiller, Chair - District') Packet Page -338- 4/23/2013 1 O.G. COLLIER COUNTY Board of County Commissioners Item Number: 10.10.G. Item Summary: Recommendation that Board of County Commissioners request that staff prepare and release an RFP for professional real estate services so the county shall have standing contracts with both commercial and residential brokerage and property management firms, to assist the county with the purchase, sale, lease and management of the county's significant real estate holdings. The contracts shall be for a two year term. It is recommended that 2 commercial and 2 residential brokerage /property management firms shall be selected by the Board from among the applicants. The list of all applicants, to include staff's recommendation of the top ten firms, shall be presented to the Board for final selection and approval at the second public board meeting in June, 2013. Establishing such contracts for the county's benefit is in line with the county's existing practice of standing contracts with professionals such as engineers and appraisers, providing assistance and supplementing staff initiatives without the need to hire additional full time personnel. Nothing shall preclude the county from contracting with other real estate brokerage /management firms should the need arise, i.e., the need for specialized knowledge as to a specific project. (Commissioner Hiller) Meeting Date: 4/23/2013 Prepared By Name: BrockMaryJo Title: Executive Secretary to County Manager, CMO 4/17/2013 12:02:02 PM Submitted by Title: Executive Secretary to County Manager, CMO Name: BrockMaryJo 4/17/2013 12:02:03 PM Approved By Name: OchsLeo Title: County Manager Date: 4/17/2013 1:44:17 PM Packet Page -339- 4/23/2013 10.G. Packet Page -340-