Title
Building Property Management Services Contract for Public Transit Department Office Building (Ordinance S-45608)
Description
Request to authorize the City Manager, or his designee, to enter into a contract change order to Contract 139423 with Lincoln Property Company to extend the property management services contract for a period of eight months, from Nov. 1, 2019 through June 30, 2020. The extension will enable contract management efficiencies by consolidating the 302 N. 1st Ave. facility maintenance services into the solicitation for a single contract for all transit facilities maintenance. Further request authorization for the City Controller to disburse funds in an amount not to exceed $873,733 over the eight-month period.
Report
Summary
In September 2014, as a result of RFP PT14-009, the City awarded Property Management Services Contract 139423 to Lincoln Property Company for the management of the building located at 302 N. 1st Ave. in Phoenix owned by Public Transit, which serves as its primary offices, as well as the offices of the Maricopa Association of Governments (MAG) as the main tenant. The total authorization for the five-year contract term was $7.5 million. The current contract scope of services includes administrative functions; general building maintenance; interior and exterior repairs; preparing 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. This contract currently expires Oct. 31, 2019.
In August 2015, as a result of RFP PTD15-004, the City awarded Facilities Maintenance Contract 141172 to ABM Facility Services, Inc., for the maintenance of the City's three transit facilities, six transit centers, and eight park and ride locations. The total authorization for the five-year contract term was $11 million. This contract currently expires June 30, 2020.
All contract extensions have been exhausted. Public Transit will solicit services for new contracts this year. When soliciting the new contracts, the new Property Management Services scope of work will retain the management functions and will not include the facilities maintenance responsibilities. In order to realize potential contract management efficiencies, Public Transit intends to transition the facility maintenance of the 302 N. 1st Ave. building from the Property Management Services contract into the overall Facilities Maintenance contract, thereby consolidating all transit facility maintenance under the same contract. To address the disparity of eight months between the expiration dates of the current contracts, this request is to extend Contract 139423 for eight months in order that the expiration dates of both contracts coincide on June 30, 2020. Lincoln Property Company has agreed to continue to provide its current pricing for the eight-month extension.
Contract Term
The extension will be for an eight-month period from Nov. 1, 2019 to June 30, 2020.
Financial Impact
The total cost related to this item will not exceed $873,733 over eight months. Funds are available in the proposed 2019-20 Public Transit Building Fund operating budget.
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.