Commission debates $35,000 advisory fee and broker options for water plant property sale

The commission discussed purchases and payments that included an RFP result for advisory services related to the potential sale of the city's water plant property. Staff said four bids were received but only one met the full RFP specifications; that respondent proposed a $35,000 upfront study and then a commission structure to handle sale advisory and best-use analysis.

City Manager Shipman said the water plant sale presents unusual circumstances (environmental issues, brownfield potential, zoning and multi-jurisdictional coordination) that make specialized advisory services valuable. "There could be brownfield opportunities out there ... there's a lot of things that could come up that could interfere with the sale," Shipman said.

Several commissioners questioned whether a brokerage listing could achieve the same result without the upfront fee and asked for clearer scope documents. One commissioner said he was concerned about paying a $35,000 fee in addition to a commission and asked for more comparison detail between broker and advisory models. Another commissioner supported the staff recommendation, noting RealPoint presented well at work sessions and was likely to provide the specialized services needed for this unique site.

Outcome and next steps: The commission separated and tabled portions of the purchases and payments list to allow further review. Staff said it could bring additional information, scope documents and a clearer comparison of options to a future meeting.