Title
Authorization to Amend Contract with Plaza Del Rio Management Corporation dba Plaza Companies (Ordinance S-47410)
Description
Request authorization for the City Manager, or his designee, to amend Contract 152663 with Plaza Del Rio Management Corporation dba Plaza Companies (Plaza) for property management services for the 2120 N. Central Ave. building, to add additional funding to support Common Area Maintenance (CAM) expenses for suites occupied by the Police Department, in an amount not to exceed $212,000 for the initial nine-month term of the contract and $282,378 for each extension option. The initial term of the contract is from Sept. 30, 2020 through June 30, 2021, with four, one-year options to extend through June 30, 2025. Further request authorization for the City Controller to disburse all funds related to this item for the life of the contract. Funding is available in the Police Department's General Fund budget.
Report
Summary
Plaza provides property management services in connection with the continued operations of the building located at 2120 N. Central Ave. Plaza is responsible for property management of the entire campus, which includes the collection of operation and maintenance (O&M) fees and non-city tenant rent. O&M fees are used to pay CAM expenses such as utilities, janitorial services, security, general maintenance and capital improvement projects.
Ordinance S-47208 was approved by City Council at the Jan. 6, 2021 meeting. This ordinance added funding for property management fees to the contract for the suites occupied by the Human Services Department in an amount not to exceed $1,074,180 over the life of the contract. The funding for the property management fees for the Police Department were not included. The total amount of funding required for the term of the contract for the Police Department is $1,341,512. The revised aggregate value of the contract for the Police Department and the Human Services Department is $2,415,692.
Contract Term
The initial term of this contract is from Sept. 30, 2020 through June 30, 2021, with four, one-year options to extend through June 30, 2025, which may be exercised by the City Manager or his designee.
Financial Impact
The aggregate value of this agreement will not exceed $2,415,692 over the life of the contract. Funding is available in the Human Services and Police departments' budgets.
Concurrence/Previous Council Action
On June 17, 2020, City Council authorized staff to enter into a contract with Plaza to provide property management services, and authorized the City Controller to disburse funds with Ordinance S-46724.
Location
2120 N. Central Ave.
Council District: 4
Department
Responsible Department
This item is submitted by Assistant City Manager Jeff Barton and the Police and Human Services departments.