Title
Property Management Services Contract for Affordable Housing Portfolio (Ordinance S-46029)
Description
Request to authorize the City Manager, or his designee, to enter into a contract with Dunlap and Magee Property Management Inc. (Dunlap and Magee) to provide property management services for the City of Phoenix Housing Department's Affordable Housing Portfolio (Portfolio). Further request authorization for the City Controller to disburse all funds related to this item. The aggregate contract value including all option years will not exceed $14.5 million. There is no impact to the General Fund.
Report
Summary
The City's Portfolio consists of 18 multifamily residential housing properties with 1,270 rental units that provide affordable housing to low-to-moderate income residents. This contract will provide third party property management services in connection with the continued operations of the Portfolio as divided into three groups: Group A, Group B and Group C. Dunlap and Magee will receive management fees directly from the rental revenue generated by the Portfolio. During the term of the contract the City will disburse funds to Dunlap and Magee to fund repairs, maintenance and operations of the Portfolio as necessary.
Procurement Information
Request for Proposals (RFP) FY20-086-1 Property Management Services for Affordable Housing Portfolio was conducted in accordance with Administrative Regulation 3.10. In an attempt to provide opportunities for multiple offerors and make the scope of work more manageable for smaller businesses, the Portfolio was divided into three groups. An offeror could have bid on one, two or three of the groups. There were two offers received for each group on Aug. 8, 2019. An evaluation panel, comprised of three City staff and one non-City staff, evaluated the submitted proposals. Proposals received points in the following categories: Method of Approach, Experience and Qualifications, Price, and References. The maximum possible score for each proposal in each group was 1,000 points. The final scores for the proposals received in each group are as follows:
Group A
Dunlap and Magee: 863
MEB Management Services: 811
Group B
Dunlap and Magee: 859
MEB Management Services: 746
Group C
Dunlap and Magee: 832
MEB Management Services: 801
Based on the scores, the evaluation panel recommended that the City award the Property Management Services for Affordable Housing Portfolio contract for the three groups to Dunlap and Magee. The Housing Department concurs with the evaluation panel's decision and recommends awarding the property management services contract to Dunlap and Magee.
Contract Term
The initial three-year contract term will begin on or about Nov. 1, 2019 and end on Oct. 31, 2022. Provisions of the contract include an option to extend the term of the contract up to two additional years which may be exercised in the discretion of the City Manager or designee.
Financial Impact
The aggregate contract value, including all option years, will not exceed $14.5 million (including applicable taxes) with an estimated annual expenditure of $2.9 million. Contract costs related to staffing and management fees will be funded by the rental revenue generated by the Portfolio. There is no impact to the General Fund.
Concurrence/Previous Council Action
The RFP was recommended for approval as amended by the Planning and Economic Development Subcommittee meeting on Jan. 8, 2019 by a vote of 4-0.
Location
See Attachment A for locations.
Council Districts: 1, 2, 3, 4, 6, 7 and 8
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Housing Department.