title
Approval of contract with Prism Technical for the creation and monitoring of a Procurement Equity Participation Plan for the MSP multi-unit residential proposal, in an amount not to exceed $82,344
body
Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
The Procurement Equity Policy requires Tax Increment Financing projects include required Disadvantaged Business Enterprise (DBE) and Distressed Zip Code hiring inclusion. A contract with Prism Technical for the creation and monitoring of a Participation Plan to facilitate meeting this policy for the MSP Real Estate multi-unit residential project at the Mayfair Collection is recommended for approval.
B. Background/Options
The City of Wauwatosa received an application from MSP Real Estate for financial assistance through Tax Increment Financing (TIF) to assist with financing a portion of the eligible costs related to the construction of an approximate 80-unit mixed income affordable housing project at the Mayfair Collection at 11500 West Burleigh Street. The project will include 1, 2 and 3-bedroom housing units within 2 buildings that are dedicated for both families and seniors within each respective building. The income levels of the units will be a mix of 30%, 50%, 60% and market rate levels.
Included in the proposed term sheet is the requirement that the Developer hire or sub-contract with firms registered as Disadvantaged Business Enterprises with Milwaukee County or the State of Wisconsin Department of Transportation to complete 25% of the construction and professional services work. In addition the, developer is required set a goal of hiring 25% of their additional construction work force from distressed zip codes within Milwaukee County. This is a requirement of the City’s Procurement Equity policy.
City staff do not have capacity or technical knowledge to do this type of monitoring. In 2021, three firms with experience in southeast Wisconsin were solicited to provide proposals. Only Prism Technical submitted a proposal. The City is currently working with Prism on the Irgens project and River Parkway. A final report on these two projects is expected this Spring. Given the excellent work Prism has completed to date and the desire for continuity, staff asked Prism to submit a proposal for this project as well which is attached. Prism is the premier firm that does this type of work with an excellent track record of working collaboratively with developers, construction firms and labor unions to ensure a best effort to reach these goals since 1995. Prism has a lifetime achievement record exceeding workforce and business diversity goals/requirements of nearly 98% ‐ on over 40 multi‐million‐dollar projects in WI, MI, PA, and TX. They have worked with numerous governments including the City of Milwaukee and Milwaukee Public School and on such high-profile projects as The Deer District and Northwestern Mutual downtown tower. They have also worked with many of the regions prominent developers and are themselves a DBE firm.
Prism brings the knowledge and networks to provide more than just monitoring services. They develop a “Participation and Inclusion Plan” with the developer based on their in depth knowledge of what DBE capacity is available in each of the trade disciplines required to complete the project. In addition, working with Prism on this TIF project will have the ancillary benefit of helping City staff identify DBE firms that could be utilized on non-TIF projects and help our continued procurement equity goals. In addition, Prism has excellent contacts within the workforce development community which will be especially helpful as this is a non-union project which makes meeting the workforce development goals more difficult.
As the contract exceeds $50,000, it requires Common Council approval.
C. Fiscal Impact
The cost of the contract is $82,344. This on a not-to-exceed basis and will be billed as time and materials. These costs will be funded by the increment generated by MSP project.
D. Recommendation
I recommend approval of the contract with Prism Technical. I also recommend a level three fund transfer to establish a budget for the contract to be paid for with TIF 7 funds.