Title
Amend Contract 137801 with Jones Lang LaSalle for Real Estate Brokerage Services (Ordinance S-43128)
Description
Request to authorize the City Manager, or designee, to extend the term of Contract 137801 with Jones Lang LaSalle America, Inc. (JLL) for a six-month period followed by a month to month term, until terminated upon 30-day written notification for real estate brokerage services. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The City Council approved the Excess Property policy at the Sept. 24, 2013 Policy meeting as part of the Council approved plan to assess and dispose of unused and underserved property. On Jan. 15, 2014, City Council approved a non-exclusive contract with JLL for real estate brokerage services for a three-year period from Feb. 1, 2014 through Jan. 31, 2017, as a result of a competitive procurement process. The contract is primarily for disposal of excess property with optional professional services for leasing, purchasing and consulting on an as needed basis. JLL listings have generated approximately $4 million in sales revenue with the City incurring approximately $205,000 in brokerage fees funded from the sale proceeds. There have been no additional expenses incurred by the City for other transactional and consulting fees related to this contract during the initial term. The purpose of extending the contract to JLL is to allow time for a procurement process reflecting city requirements while continuing to market City-owned property that will generate revenue and return real property to the tax rolls.
Contract Term
The contract amendment will extend the term for a six-month period from Feb. 1, 2017 through July 31, 2017. The contract may continue month to month beginning Aug. 1, 2017, as needed, until terminated upon 30-day written notification. The full term of the extended contract shall not exceed one year.
Financial Impact
The annual contract amount shall not exceed $50,000 for consulting services. Funds are available in the Finance Capital budget and various operating funds. Costs will be allocated to the General, Special Revenue and Enterprise Funds as appropriate. All other fees will be funded from sale proceeds.
Concurrence/Previous Council Action
Contract 137801 was approved by Ordinance S-40506 on Jan. 15, 2014. The City Council authorizes disposal of individual properties on an ongoing basis.
Department
Responsible Department
This item is recommended by City Manager Ed Zuercher and the Finance Department.