Title
Building Property Management Services Contract for Public Transit Department Office Building (Ordinance S-46745)
Description
Request to authorize the City Manager, or his designee, to extend Contract 139423 for property management services with Lincoln Property Company for a period of one year, from July 1, 2020 through June 30, 2021. Further request authorization for the City Controller to disburse funds in an amount not to exceed $420,000 over the one-year period.
Report
Summary
In September 2014, a property management services contract was awarded to Lincoln Property Company for management of the building located at 302 N. 1st Ave., which houses the Public Transit Department’s administrative offices, as well as the offices of tenants Maricopa Association of Governments and the Phoenix Business and Workforce Development Center. The total authorization for the five-year contract term was $7.5 million. The contract scope of services included: administrative functions; general building maintenance; interior and exterior repairs; preparation of the annual operating budget, along with related financial accounting services, record keeping, and reports; and management of the below-ground parking levels and associated functions.
In May 2019, Contract 139423 was extended through June 30, 2020, with the intent to transitioning maintenance of the 302 N. 1st Ave. building into a consolidated facilities maintenance contract that included all of Public Transit Department's facilities. A separate facilities maintenance contract has been awarded as of April 15, 2020.
Procurement Information
In December 2019, a Request for Proposals (RFP) procurement process was conducted in accordance with Phoenix’s Administrative Regulation 3.10. The scope of work retained the property management functions, but did not include the facilities maintenance function, which was procured in a separate RFP. The property management RFP resulted in just one proposer: Lincoln Property Company.
As a result, the evaluation panel determined it would be in the best interest of the City to cancel the solicitation and later reissue the RFP when other city-owned property management opportunities can be included in a future, multi-site solicitation that would generate commercial interest and ensure adequate marketplace competition. If approved, this requested extension would allow for seamless customer service at the Public Transit Department’s administration building during these unprecedented times.
Contract Term
The extension will be for a one-year period, from July 1, 2020 to June 30, 2021.
Financial Impact
The total cost related to this item will not exceed $420,000 over one year. Funds are available in the proposed fiscal year 2020-21 operating budget for the Public Transit Building Fund.
Location
302 N. 1st Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.