Title
Property Management Services Agreement for Village Shopping Center - Amendment 2 (Ordinance S-47915)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 142612 with Newmark Knight Frank Management for property management services to extend the agreement's term an additional nine months and pay the monthly fees for that extension. Further request to authorize the City Controller to disburse all funds related to this item. The expenditures for services included in this amendment will not exceed $31,500.
Report
Summary
In April 2016, a property management services agreement was awarded via a Request for Proposals (RFP) process to Newmark Knight Frank Management (Newmark) for the Village Shopping Center (VSC), a multi-use shopping center located at 19th and Dunlap avenues owned by the Public Transit Department (PTD.) The initial agreement expired April 13, 2021, with no remaining options to extend. On March 17, 2021, City Council authorized amending the agreement to extend the term through Sept. 30, 2021 to provide time to re-solicit, but it was subsequently determined that a significant restructuring of this solicitation will be necessary to encourage more competition, so additional time will be required for the re-solicitation. The City intends to issue the restructured solicitation this fall.
RFP PTD20-009 was issued in January 2021 for property management services of VSC and the Public Transit Building. That solicitation was canceled on April 2 after the only two bidders were disqualified due to being found non-responsive and non-responsible. This amendment will provide a further nine-month extension, which will enable PTD staff to issue a new RFP and ensure seamless customer service for tenants at VSC and the Public Transit Building.
Procurement Information
The initial agreement with Newmark was procured in accordance with Phoenix City Code Chapter 43 and Administrative Regulation 3.10. An exception to the procurement process was determined for this extension as set forth in the City of Phoenix’s Administrative Regulation 3.10.
Contract Term
This further extension will be for the period from Oct. 1, 2021, to June 30, 2022.
Financial Impact
Newmark's current monthly management fee will continue at the current rate of $3,500, not to exceed a total of $31,500 for this amendment's nine-month extension period. It is anticipated that lease revenues from the Village Shopping Center will offset all expenses associated with this amendment. Funds exceeding the lease revenues are available in the Public Transit Department's Operating budget.
Concurrence/Previous Council Action
The City Council approved:
- Property Management Services Agreement 142612 (Ordinance S-42427) on April 6, 2016; and
- Property Management Services Agreement 142612 - Amendment 1 (Ordinance S-47376) on March 17, 2021.
Location
1945 W. Dunlap Ave.
Council District: 5
Department
Responsible Department
This item is submitted by Deputy City Manager Mario Paniagua and the Finance and Public Transit departments.