Title
Building Property Management Services Agreement for Public Transit Department Office Building (Ordinance S-47650)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Property Management Services Agreement 139423 with Lincoln Property Company to extend the agreement for a period of one year, from July 1, 2021 through June 30, 2022. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures for services included in this amendment will not to exceed $400,000.
Report
Summary
In September 2014, the City awarded Agreement 139423 to Lincoln Property Company for the management of the City's owned building located at 302 N. First Ave. in downtown Phoenix, which serves as the primary offices of the Public Transit Department (PTD), as well as the offices of the building’s tenants, the Maricopa Association of Governments (MAG) and the Community and Economic Development Department's Business and Workforce Development Center. The initial agreement was authorized for a five-year term at a total cost of $7.5 million for the services, which included administrative functions; general building maintenance; interior and exterior repairs; preparation of the annual operating budget with related financial accounting services, record keeping, and reports; and management of below-ground parking levels and associated functions.
Since the conclusion of the initial agreement in 2019, PTD has twice issued RFPs for property management services in accordance with Phoenix’s Administrative Regulation 3.10. In December 2019, an RFP for property management services of the PTD’s downtown headquarters resulted in just one submission, and due to this lack of adequate marketplace competition, the evaluation panel determined it was in the City's best interest to cancel the solicitation and reissue the RFP when other City-owned property management opportunities could be included to generate more commercial interest.
In June 2020, City Council approved an agreement amendment (Ordinance S-46745) to extend Lincoln Property Company as the ongoing Property Manager of the PTD downtown office building for one year until June 30, 2021.
In January 2021, an RFP was issued for property management services of PTD's downtown headquarters and the City-owned Village Shopping Center at 19th and Dunlap avenues. That solicitation was cancelled on April 2 after the only two bidders were disqualified due to being found non-responsive and non-responsible.
This amendment will provide another one-year extension which will enable staff to identify additional contract management efficiencies and issue a new RFP for standalone property management services in a future solicitation that would generate commercial interest and ensure marketplace competition. This further extension will be for a one-year period from July 1, 2021 to June 30, 2022.
Contract Term
This amendment will extend the end date of the agreement term from June 30, 2021 to June 30, 2022.
Financial Impact
The total cost related to this item will not exceed $400,000 over one year. Funding is available in the Public Transit Operating budget.
Concurrence/Previous Council Action
The City Council approved:
- Property Management Services Agreement 139423 (Ordinance S-41137) on Aug. 27, 2014;
- Property Management Services Agreement 139423 - Amendment (Ordinance S-45608) on May 1, 2019; and
- Property Management Services Agreement 139423 - Amendment (Ordinance S-46745) on June 17, 2020.
Location
302 N. First Ave.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Public Transit Department.