Title
Building Property Management Services Agreement for Public Transit Department (Ordinance S-51237)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Property Management Services Agreement 142612 with Newmark Knight Frank Management (Newmark) to extend the agreement and add funds for the extension. Further request to authorize the City Controller to disburse all funds related to these items. The additional expenditures will not exceed $138,600.
Report
Summary
The City currently has a contract with Newmark for property management services of the Village Shopping Center, a multi-use shopping center at 19th and Dunlap avenues owned by the Public Transit Department (PTD).
The current contract expires June 30, 2025, but the long-term plan for the property may change in the coming years, and this request would allow Newmark to continue providing property management services while a decision about the future use of the property is made.
Procurement Information
The current contract was awarded through a competitive Request for Proposals process in 2016, with Newmark as the sole responder.
In accordance with Administrative Regulation 3.10, standard competition was waived as a result of an approved Determination Memo based on the following reason: The current use of the property is expected to change, making soliciting a new contract impractical.
Contract Term
The contract will be extended through June 30, 2027, with an option to extend one year at the City’s discretion.
Financial Impact
The total cost of this extension will not exceed $138,600 (including the one-year option). Funding is available in the Public Transit Department’s Operating budget.
Concurrence/Previous Council Action
The following agreements were approved by City Council:
- Property Management Services Agreement 142612 - (Ordinance S-42427) on April 6, 2016.
- Property Management Services Agreement 142612 - Amendment (Ordinance S-47376) on March 17, 2021.
- Property Management Services Agreement 142612 - Amendment (Ordinance S-47915) on September 8, 2021.
- Property Management Services Agreement 142612 - Amendment (Ordinance S-48537) on April 20, 2022.
Location
Village Shopping Center: 1945 W. Dunlap Avenue
Council District: 3
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.