Facilities Administration

Assistant Vice President

UCOP Office Consolidation Information
Overview

Background
The U.C. Office of the President (UCOP) houses programmatic and administrative staff in the UC-owned building located at 1111 Franklin Street (Franklin Building) and in multiple leased facilities in the Oakland-Berkeley area. The staff at five leased locations include all or portions of Systemwide Human Resources & Benefit Services, Information Resources and Communications, the Treasurer’s Office, the California Digital Library, Special Research Programs (Breast Cancer, Tobacco, and AIDS), MESA, the Puente Project, and other program and service areas. The two largest leases expire in 2008. In preparation for meeting UCOP space needs in 2008 and beyond, a formal review of overall space requirements was conducted with the goals of minimizing occupancy costs, creating efficiencies by consolidating locations, and maintaining long-term flexibility.

Request for Proposal Process
The Office of the President sought to identify cost-effective space strategies for the future through a Request for Proposal (RFP) process. In order to allow for the maximum range of developer-proposed options, including new construction, the RFP was issued in April 2005. Through the RFP the University sought to (i) consolidate the leases into a single location designed to afford efficient operation, (ii) secure the lowest overall long-term occupancy cost, and (iii) maximize flexibility in terms of lease and purchase options. The RFP specified that UCOP would remain in the downtown Oakland area, in proximity to the Franklin Building.

Proposal Screening
The RFP specified a two-phase evaluation process intended to encourage a number of submittals and ideas in phase one, with more in-depth submittal requirements for phase two. Seven proposals from six proposers were received by the phase one deadline of July 1, 2005 and screened against criteria presented in the RFP with the overall goal of identifying the most cost-effective and efficient space solution to consolidate five UCOP leases while maintaining financial flexibility. Following this screening process, four proposals were selected to compete in phase two based upon additional detailed submittals and an in-depth assessment of: (i) the cost and flexibility of the financial terms offered and the University's overall occupancy cost; (ii) the financial condition and strength of the team for each prospective landlord or developer; (iii) the space utilization, building systems efficiency, life-safety characteristics and adjacency to public transportation for each prospective facility.

Recommended UCOP Consolidated Lease Proposal
After a comprehensive review process, the President recommended that the University accept a lease proposal for 1100 Broadway, a proposed new office tower adjacent to the Franklin Building. The proposed project consists of the development of an 11-story office building including one story of ground floor retail, and entails the complete internal renovation of, and floor-to-floor integration with, the Key System building for the first 7 floors. The structure would consist of approximately 201,700 rsf and the University lease would be for 190,500 rsf, comprised of 178,000 rsf of office space and 12,500 rsf of building common space, with the landlord responsible for managing and leasing the approximately 11,200 rsf of ground floor retail space.

Regental Approval
The Regents approved this lease consolidation plan at their November 2005 meeting.