01-22-2016 BPU RPT 10 - Laserfiche WebLink

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Wni =R tvtRUv ii -- RIVERSIDE PUBLIC UTILITIES WON Board Memorandum PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES DATE: JANUARY 22, 2016 ITEM NO: 10 File ID — 16 -0197 — C SUBJECT: PROPERTY MANAGEMENT SERVICES FOR THE MISSION SQUARE OFFICE COMPLEX; PROFESSIONAL SERVICES AGREEMENT WITH NEWMARK GRUBB KNIGHT FRANK, NEWPORT BEACH, CALIFORNIA, FOR AN ANNUAL AMOUNT NOT TO EXCEED $1,087,000 ISSUE: The issue for Board of Public Utilities consideration is the award of a Professional Services Agreement with Newmark Grubb Knight Frank (NGKF) of Newport Beach, California for the professional third party commercial operation of the Mission Square Office Complex and Parking Structure, including programmed management fees and engagement of sub - contractors for ongoing building and grounds maintenance and facility operations. RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve a Professional Services Agreement with Newmark Grubb Knight Frank (NGKF) of Newport Beach, California, for the professional third party commercial operation of the Mission Square Office Complex and Parking Structure, including programmed management fees and engagement of sub - contractors for ongoing building and grounds maintenance and facility operations in an annual amount not -to- exceed $1,087,000. BACKGROUND: At its Regular Meeting on November 20, 2015, the Board of Public Utilities amended its Real Property Financial Management Policy to reflect the commercial operation of the Mission Square Office Complex, including the provision of professional third party building management and parking structure operation. The City's Real Property Manager, in consultation and coordination with RPU staff, prepared a Request for Proposals for commercial property management services (RFP 1553) for the Mission Square Building. On October 30, 2015, two proposals were received. Proposals from Newmark Grubb Knight Frank (NGKF) and CBRE Group, Inc. were evaluated by staff and representatives from both firms were invited for interviews that took place on November 23, 2015. A selection committee consisting of representatives from RPU, the Community & Economic Development Department and General Services Department recommends award of the Professional Service Agreement to NGKF. Under the proposed Professional Services Agreement, NGKF will be responsible for administration of all third party leases, including tenant relation management and collection of rents, administration of all ongoing building operation and maintenance sub - contracts, production of a monthly building operating report, and coordination of building repairs. NGKF will be responsible for payments of expenses including but not limited to salaries of on -site personnel required to manage, operate and maintain the property, cost of repairs, cost of utilities and all expenses of the property manager's on -site office. The proposed term of service is five years.