Title
Request to Amend Contract with G&E for Property Management Services (Ordinance S-43588)
Description
Request authorization for the City Manager, or his designee, to amend Contract 141411 with G&E Real Estate Management Services, Inc. (G&E), dba Newmark Grubb Knight Frank Management, for property management services at the Family Advocacy Center. The proposed amendment will increase the total amount of the contract for the remaining three years up to $1,565,100, or approximately $521,700 annually, to reflect management fees and operation and maintenance expenses (O&M expenses) for which the City is responsible. The amendment accounts for new space occupied by a current non-profit tenant. Further request authorization for the City Controller to disburse all funds related to this item for the remaining term of the contract.
Report
G&E is responsible for property management of the entire facility and for the collection of O&M expenses and non-city tenant rent. O&M expenses for the facility include utilities, cleaning, repairs and maintenance, fire/life safety, security, management fees, and property taxes. The building is a Human Services Department facility. O&M expenses are collected by G&E, and used to pay O&M expenses, future repair and maintenance costs, and potential or unexpected construction projects.
Contract Term
The current contract term is Sept. 30, 2016 to Sept. 29, 2017, with three remaining one-year extension options to Sept. 29, 2020.
Financial Impact
All management fees are paid through O&M expenses and rent revenues generated from the tenants and collected directly by the contractor.
Location
2120 N. Central Ave.
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Human Services Department.