Q&A
Detailed discussion of scoring and selection process for 14 Wall Street vs. 250 Broadway
0:59:36
·
7 min
Council Member Powers questions Commissioner Molina about the scoring and selection process for office spaces, specifically comparing 14 Wall Street and 250 Broadway.
Molina explains the scoring criteria, including test fit, site visit, and landlord interview scores. The discussion reveals that 250 Broadway scored higher in two out of three categories, but 14 Wall Street was ultimately chosen due to cost savings and agency preference.
- 250 Broadway scored higher overall in the RFP evaluation
- The decision to choose 14 Wall Street was based on $31 million in cost savings and Department of Aging preference
- The general counsel had concerns about the optics of choosing 14 Wall Street despite lower scores
Keith Powers
0:59:36
Thank you.
0:59:37
Hey, commissioner.
0:59:38
I want to go back to something you said earlier.
0:59:40
When Decast scored the RFP applications, was 250 Broadway scored higher than 14 Wall Street.
Louis Molina
0:59:47
Yeah.
0:59:48
In one area of the scoring of the 4 locations under consideration, there was one area where 250 Broadway scored higher.
1:00:00
Now it's it's important to understand that when we did the pilot RFP, what we sent out was a lot of information that normally would not be shared with prospective landlords.
1:00:09
And one of those war floor plans also known as test fits to see if within the existing footprint the agency's operations can be placed.
1:00:20
And initially at the time, the test fit scored higher at 250 Broadway because it was completely raw space, which will require an over $10,000,000 capital improvement to meet the needs of aging in conversation with Department of Aging and their preferred desire to go to 14 Wall Street.
1:00:42
They communicated to Decast that the test fit wasn't absolute, and they had they were they thought that they can adapt to the current layout of 14 Wall Street, which benefited 68 city taxpayers because it saved us over $31,000,000 that aging could do that.
Keith Powers
1:01:00
So so there are areas or 2 50 Broadway scored higher.
1:01:03
And then you there was an evaluation also on cost and on, of course, agency preference.
1:01:09
I'm not sure agency preferences goes into the scoring, doesn't
Louis Molina
1:01:16
I mean, it's it's something that we take seriously into consideration agency preference.
1:01:22
But I think in in as far as the scoring of the locations, I don't know that that gave it gave that weight in
Keith Powers
1:01:29
How many areas are the 4 locations scored on?
1:01:32
And how many did 250 Broadway score highest?
1:01:36
Yeah.
1:01:36
Slider than 14 Wall Street on?
Louis Molina
1:01:38
The they scored on test fit.
1:01:40
Their score on a site visit score, and there is a landlord interview score.
Keith Powers
1:01:46
Okay.
1:01:47
And those 3 categories, what was 250 Broadway relative to 14 Wall Street in terms of scoring?
Louis Molina
1:01:54
250 Broadway scored higher, on the test fit at a 90 versus a 45.
1:02:03
On the on the site visit score, 14 Wall Street scored a 90.
1:02:09
And 250 Broadway scored in 85.
1:02:13
And on the landlord interview score, 14 Wall Street scored in 80, and 250 Broadway scored in 85.
Keith Powers
1:02:22
Okay.
1:02:22
So 250 Broadway scored higher in 2 of the 3 categories, and I would say it's relatively close in the 2nd category.
1:02:28
And the 1st category doubled 14 Wall Street.
1:02:32
So on the scoring, it strikes me that 250 Broadway was scoring higher than 14 Wall Street.
1:02:40
I recognize I understand the point about the tax dollars, and I think that is important.
1:02:44
But does how often does Decast taking the lower scoring application when they score them out.
Louis Molina
1:02:52
So I I think it's important to point out that this process that we engage in was a pilot process, and this RFP does not abide by the PPP rules, and also was a nonbinding process.
Keith Powers
1:03:06
I I understand that.
1:03:08
I guess my question is in normal procedures, you take the highest scoring application.
1:03:13
Is that correct?
Louis Molina
1:03:14
I I can't say that's in normal procedures because this was a pilot RFP.
1:03:19
What I can say is that in real estate, it is a fluid situation where we're we're taking it under consideration what might be the best for the city as far as taxpayers and what might be
Gale A. Brewer
1:03:31
Also, I
Keith Powers
1:03:32
think it's my question is if you have a higher scoring application, And then you have you have a highest growing application between 2 applications, and you have a cost differential.
1:03:41
What is the normal procedure for them how to choose those locations?
Louis Molina
1:03:46
We enter into what will be a negotiated process with the locations under consideration, we work with our partner agencies, in this case, the Department of Aging, to find out what would be their preferred space, how their operations work in either space, what their flexibility is, and then cost is also a major factor.
1:04:05
And here, we had a $31,000,000 savings.
Keith Powers
1:04:07
Okay.
1:04:07
But it it sounds to me and you can correct me if I'm wrong.
1:04:10
But it sounds to me, like, in the process, DeCast had scored the RFP application higher for 250 Broadway.
1:04:17
The general counsel agreed with that assessment or thought it was advisable to change that assessment, and there was a decision to go to 14.
Louis Molina
1:04:25
My understanding is that the general counsel felt that the optics of of of going to 14 Wall Street might look troubling, but was not illegal.
1:04:37
And in my in my assessment, it would have been more important to do 2 things, get an agency in a location that they preferred and not in my opinion, spent over $31,000,000 more to be in 250 Broadway because we were concerned that the decision we we were making might look a little troubling to outside observers.
1:04:58
We're here to explain
Keith Powers
1:04:59
that.
1:04:59
I understood.
1:05:00
But can you just explain to us why the general counsel thought it was advisable even optically.
1:05:05
Like, what were the optics that they were that that the the the general the former I think former general counsel was concerned about in terms of switching.
1:05:14
Because I guess what was the underlying was the underlying criteria that they were using to then say if you were switching, I would be concerned about the optics of that.
1:05:23
I assumed it would be the score that they've scored higher in the assessment and then there was a switch.
Louis Molina
1:05:29
Yeah.
1:05:29
Well, I mean, if you'd like to call the former general counsel to him himself to speak with him,
Keith Powers
1:05:33
he Well, I used to tell him that you had a conversation with the general counsel.
1:05:36
I mean,
Louis Molina
1:05:37
when I had a conversation with the general counsel because he retired.
1:05:40
And at the time, these conversations occurred as I have been briefed today, He was having them with deputy commissioner Hamilton and the former commissioner Don Pena.
1:05:49
His concern was that we were in serious consideration for 250 Broadway.
1:05:55
It appeared that we were leaning in that direction to possibly execute at least with 250 Broadway.
1:06:01
But at the end of the day, the best fiscal decision for the city and the preferred location for the aging was 14 Wall Street, and it saved the city taxpayers over $31,000,000.
1:06:12
So I
Keith Powers
1:06:12
just wanna finish on this question.
1:06:14
In a normal I know it's a pilot, but in a normal I'm I'm asking Anata's question.
1:06:18
This is not a dacha question.
1:06:20
In an on in a normal selection process for an office space, if Decast ranks one higher than another.
1:06:28
How often do they change the decision based on the cost consideration?
Louis Molina
1:06:33
I think the rankings traditionally of locations are fluid, and at one point, a location could be higher than another.
1:06:40
Another location could be higher.
1:06:42
It is a fluid situation until we get what we think is the best deal for city taxpayers.
