BOA RD OF AIRPORT COMMISSIONERS

Transcription

1 0' if il Los Angeles World Airports REPORT TO THE BOA RD OF AIRPORT COMMISSIONERS!Lc! f N or $4, e Approv -..y. oenise S - ple r an- gi.dire:.!.4 R..._ Reviewed by: Debbie Bowers- i eputy Executive Director Commercial Develop -nt Group ' ity At 'me, 0 Meeting Date: 5/21/2015 Completed CAO Review: 0 Pending (f irk Reviewed for Date Approval Status By N/A Capital Budget 5/8/15 NY N LI NA ` DS.. i/ / í /` ' na Marie indsey - Executive Director Operating Budget 516/15 Y N NA RW CEQA 5/1/15 NY N AE Procurement 05/07/15 Y LIN Cand MT SUBJECT: Award of Property Management and Leasing Agreement to Colliers International Award an agreement to Colliers International to provide Property Management and Leasing Services for Skyview Center at Los Angeles International Airport for a five -year term with two one -year options to extend, at a not -to- exceed cost of property management fees of $691,400 during the full term. RECOMMENDATIONS: Management RECOMMENDS that the Board of Airport Commissioners: 1. ADOPT the Staff Report. 2. DETERMINE that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Article Ill, Class 1 (18)(c) of the Los Angeles City CEQA Guidelines. 3. FIND that the Request for Proposals used in this competitive award process satisfies the requirements of Administrative Code Section and is compatible with the City's interests. 4. FIND that Colliers International is responsive and responsible, that entering into this agreement is in the best interest of the City, and waive any informality in contractor's proposed Small Business Enterprise participation. 5. APPROVE the award of the agreement with Colliers International to provide Property Management and Leasing Services at Skyview Center at Los Angeles International Airport. Page 1 Skyview Property Management and Leasing Award.docx

2 6. AUTHORIZE the Executive Director to execute the agreement subject to approval as to form by the City Attorney and upon approval by the Los Angeles City Council. DISCUSSION: 1. Purpose Provide Property Management and Leasing Services for Skyview Center at Los Angeles International Airport (LAX). 2. Prior Related Actions August 3, Board Order No. AO The Board of Airport Commissioners (Board) approved a 10 -year lease for 104,155 square feet (Lease), which lease included a purchase option for buildings and land. May 21, Board Resolution The Board approved acquisition of two commercial office buildings having 407,000 total square feet located at 6033 and 6053 West Century Boulevard, a parking structure located between the office buildings, and a acre parking lot located at 6101 and 6151 West 98th Street (Skyview Center). 3. Current Action Los Angeles World Airports (LAWA) purchased Skyview in 2013 for a variety of reasons, most notably for its strategic location adjacent to LAX and for the parking lot on West 98`h Street. This parking lot has been considered as a potential airport use in every landside program configuration since the LAX Master plan was completed. At the time of purchase LAWA did not have any further requirements for office space than the 26% of the building that LAWA occupied. Staff evaluated a variety of buy- and -hold and buy- and -sell options, including, but not limited to, selling one or both of the office buildings with a possible lease -back of office areas best aligned with LAWA's forecast future needs and financial interests. In order to maintain the value of Skyview Center in the office market for a possible future sale of one or both of the office buildings, LAWA decided it was most advantageous to the City to retain contractual office building property management and leasing services. Initially, as a requirement of purchase and in order to ensure a smooth transition in ownership following the purchase, LAWA assumed the in -place property management and leasing agreements with the prior owner, Equity Office Properties (Equity). LAWA staff has completed the competitive process and is recommending Colliers International (Colliers) to provide property manager and leasing services at Skyview. Colliers is a leader in global real estate and provides property management and leasing services in the greater Los Angeles area and worldwide. Terms of the Agreement Under the Property Management and Leasing Services Agreement (Agreement), the Property Manager will serve as leasing manager to locate tenants for available space, negotiate leases, Page 2 Skyview Property Management and Leasing Award.docx

3 and conduct other activities as may be needed to perform these leasing services for LAWA. In addition, the Property Manager is required to select, negotiate, engage, and supervise contracts with third parties for such utilities, services and other purchases as may be necessary in the normal and ordinary course of managing and operating Skyview Center and do so within LAWA's budget. In addition to compensation for the on -site personnel, the Property Manager is compensated with an annual management fee of $93,000, to be increased each year of the Agreement by CPI. If the Property Manager manages capital or tenant improvement projects, it will receive a fee calculated as a percentage of the total hard and soft costs of these projects (as shown in the table below), which will be approved by the Board with each capital appropriation and lease approval. Project Value Fee Less than $10,000 No additional fee $10,000 - $500, % $500,001 - $1,000, % Greater than $1,000, % Leasing commissions will be based on market and approved by the Board as part of each individual lease approval. Procurement Process Following a Request for Qualifications (RFQ) issued on November 14, 2014, on February 6, 2015 LAWA released a Request for Proposals (RFP) for eligible proposers to provide property management and leasing services for Skyview Center. On April 7, 2015, LAWA received four proposals. The four -member evaluation committee consisted of the following: Deputy Executive Director, Commercial Development Group Chief Financial Officer Property Manager IV Financial Analyst Il Specific evaluation criteria were published in the RFP and were used to rank the proposals received as listed below. To allow proposers the opportunity to clarify and expand upon aspects Criteria Evaluation Criteria Weight Experience of Key Personnel 20 Transition Plan 20 Reporting 15 Fees 45 4A - Property Management Fee 35 4B - Construction Management Percentage 10 Total Points: 100 Following the interviews, the evaluation panel ranked the proposals based upon the criteria listed above. The final rankings are as follows: Page 3 Skyview Property Management and Leasing Awarl.docx

4 Proposer Rank Colliers International 1 Cushman and Wakefield 2 Charles Dunn Real Estate Services, Inc. 3 CBRE 4 Action Requested Staff requests that the Board approve and authorize the Executive Director to execute the Agreement upon approval as to form by the City Attorney and approval of City Council and. Colliers and all contractors under Colliers servicing Skyview are subject to all City Ordinances, including the Living Wage Ordinance, for services provided at Skyview. Fiscal Impact Awarding this Agreement will result in LAWA Property Management fees of approximately $691,400 during the full term, which represents less than 1% of the total revenues from Skyview. Including the costs of on -site property management personnel, the management costs represents 2.75% of total revenues from Skyview, which is aligned with the market for managing high -rise office buildings, is the least expensive of all proposals submitted in response to the RFP, and is significantly less expensive than the current property management and leasing agreements with Equity. The Board will approve future operating expenses for Skyview Center through the budgeting process and other fees through each capital appropriation or lease approval. 4. Alternatives Considered Do not award Agreement Takng no action is not recommend this because in the absence of contractual office property management and leasing services, LAWA staff has determined Skyview Center would compete less well in the LAX/Century Corridor office market and, therefore, would incur a loss of value upon the sale of one or both office buildings in the future, as contemplated at the time of purchase. Also, the existing contract with Equity is expiring and extending it is not an option given that Equity has fulfilled its obligations arising from the sale of the property to LAWA and is not interested in continuing. APPROPRIATIONS: Approval of this action will not require an appropriation of funds from LAWA's Capital or Operating Budget. STANDARD PROVISIONS: 1. The issuance of permits, leases, agreements, gate and space assignments, and renewals, amendments or extensions thereof, or other entitlements granting use of existing airport facilities or its operations involving negligible or no expansion of use and /or alteration or modification of the facilities or its operations beyond that previously existing or permitted is Page 4 Skyview Property Management and Leasing Award

5 exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article III, Class 1 (18) (c) of the Los Angeles City CEQA Guidelines. 2. This contract is subject to approval as to form by the City Attorney. 3. Actions taken on this item by the Board of Airport Commissioners will become final pursuant to the provisions of Los Angeles City Charter Section Colliers International will comply with the provisions of the Living Wage /Service Contractor Worker Retention Ordinances. 5. Procurement Services has reviewed this action (File No. 7146) and established a mandatory 10% Small Business Enterprise (SBE) goal was set for this project. Colliers International committed to 10% SBE participation. 6. Colliers International will comply with the provisions of the Affirmative Action Program. 7. Colliers International has been assigned Business Tax Registration Certificate number Colliers International will comply with the provisions of the Child Support Obligations Ordinance. 9. Colliers International will have approved insurance documents, in the terms and amounts required, on file with the Los Angeles World Airports prior to contract execution. 10. Pursuant to Charter Section 1022, staff determined the work specified on the proposed contract can be performed more feasibly or economically by an Independent Contractor than by City employees. 11. Colliers International has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program. 12. Colliers International must be determined by Public Works, Office of Contract Compliance, to be in full compliance with the provisions of the Equal Benefits Ordinance prior to contract execution. 13. Colliers International will be required to comply with the provisions of the First Source Hiring Program for all non -trade LAX Airport jobs. 14. Colliers International has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions. Page 5 Skyview Property Management and Leasing A ward. docx

6 SUBCONTRACTOR PARTICIPATION PLAN Pane t of 5 ATTENTION: You must list ALL subcontractors, regardless of their dollar amount or percent proposed, and regardless of whether they are certified or not. Project T tle: Skyview Office Complex BIDDER/PROPOSER COMPANY INFORMATION PROFILE INFORMATION 810/PROPOSAL AMOUNT DESCRIPTION OF PROJECT SERVICES NAME: Colliers International Property Management And Leasing 3 Park Plaza, Suite 1200 Services CITYISTATEIZIP: Irvine, CA $93,000 per yr, plus C.M Fees & Kevin Rude CERTIFYINGAGENCY: Leasing Commission TELEPHONE No: (949) VENDOR OR FEDERALID: NAICS: , SUBCONTRACTOR COMPANY INFORMATION PROFtE INFORMATION $ PROPOSED % PROPOSED DESCRIPTION OF PROJECT SERVICES NAME: Universal Building Maintenance 639 Wilshire Blvd. CITY /STATE/ZIP: Los Angeles. CA Mark Olivas CERTIFYINGAGENCY: TELEPHONE No: (877) $550,000 0 Janitorial Services molivas@universalpro.com VENDOR OR FEDERAL ID: NAICS: NAME: Clean Sweep Supply Co Telegraph Road CITYISTATE /ZIP: Montebello. CA Sind Salamat TELEPHONE No: (323) $60,000 0 Janitorial Supplies VENDOR OR FEDERAL ID: NAICS: NAME: Fujitec Elevator Elevator Services Hama-ton Avenue CITY/STATE/ZIP: Torrance, CA $140,000 0 Steve Broom CERTIFYINGAGENCY: TELEPHONE No: (310} VENDOR OR FEDERAL ID: NAICS: NAME: Ahle Engineering Engineering Services 2601 S. Figueroa Street, MS -H299 CITYISTATE /ZIP Los Angeles, CA CONTACTNAME: Brian Pagac CERTIFYINGAGENCY: TELEPHONE No: (213) $480, VENDOR OR FEDERAL ID: NAICS: fle.iaee 749.

7 SUBCONTRACTOR PARTICIPATION PLAN Pape 2 of 5 SUBCONTRACTOR COMPANY INFORMATION PROFILE INFORMATION S PROPOSED % PROPOSED DESCRIPTION OF PROJECT SERVICES NAME: Universal Protection Services 639 Wilshire Boulevard CITY /STATE /ZIP: Los Angeles, CA Scott Naso TELEPHONE No: (213) $360,000 O Security Services VENDOR OR FEDERAL ID: NAICS: NAME: ChemAoua Water Treatment Network Place CITY/STATE /ZIP: Chicago, IL Randy Hill TELEPHONE No: (650) $24, VENDOR OR FEDERAL IO: NAICS: NAME: Truly Nolen Pest Control 3620 E. Speedway CITY /STATE/ZIP: Tuscon, AZ Customer Service TELEPHONE No: (877) $2, N/A VENDOR OR FEDERAL ID: NAICS: NAME: Brickman _Landscaping - Exterior S. Figueroa Street, #D CITY /STATE /ZIP: Los Angeles, CA CONTACTNAME: Cruz Santana TELEPHONE No: (310) $30,000 Q VENDOR OR FEDERAL ID: NAICS: NAME: Office Media Network Office Media Network 2 Executive Drive, Suite 301 CITYISTATEIZIP: Chelmsford, MA GENGER: Doug Heckle TELEPHONE No: (949) $12, VENDOR OR FEDERAL ID: NAICS: NAME: Brown's Green Thumb Landscaping - Interior P.O. Box 837 CITYISTATE /ZIP: Manhattan Beach, CA Mike Brown TELEPHONE No: (310) $6,600 0 EntAa.: N/A VENDOR OR FEDERAL ID: NAICS: n..e.azonu

8 SUBCONTRACTOR PARTICIPATION PLAN Page 3 of 5 SUBCONTRACTOR COMPANY INFORMATION PROFILE INFORMATION $ PROPOSED % PROPOSED DESCRIPTION OF PROJECT SERVICES NAME: Facility Services of America. Inc. SBA Janitorial, landscaping, parking lot 6840 Commerce Ave. Ste A sweeping, window washing and power CITY/STATE /ZIP: Port Richey, FL $596,000 washing servires 15% Greg Bosserman South Fl. Distictoffee TELEPHONE No: (509) N/A VENDOR OR FEDERAL ID: (DUNS) NAILS: , , NAME: Consolidated Disposal Services Telegra h Road CITY /STATE /ZIP: Santa Fe Springs, CA TELEPHONE No: (562) $50, VENDOR OR FEDERAL ID: NAILS: NAME: Red Hawk Fire & Safety 2705 Media Center Drive CITY /STATE /ZIP: Los Angeles, CA GENOER: Phil Casey TELEPHONE No: (323) CERI EXPIRATION DATE: $ VENOOR OR FEDERAL ID: NAICS: NAME: Staples Business Advantage Office Supplies CITY /STATE /ZIP: $7, VENDOR OR FEDERAL ID: NAICS: NAME: Regency Lighting Electrical Repairs 9261 Jordan Avenue CITY /STATE /ZIP: Chatsworth, CA TELEPHONE No: (800) $26, VENDOR OR FEDERAL ID: NAICS: NAME: Pitney Bowes 3001 Summer Street CITY /STATE /ZIP: Stamford, CT (800) $2,500 0 Postage VENDOR OR FEDERAL ID: NAICS: RvnN

9 SUBCONTRACTOR PARTICIPATION PLAN Page 4 of 5 SUBCONTRACTOR COMPANY INFORMATION PROFILE INFORMATION $ PROPOSED % PROPOSED DESCRIPTION OF PROJECT SERVICES NAME: C. Diversified Services, Inc, Janitorial Services, Engineering Services 417 East Huntington Drive Landscape - Exterior, Window Cleaning CITY /STATE/ZIP: Monrovia, CA Colleen Nicassio $550,000 15% TELEPHONE No: (626) a.nic@cadviersifiedservices.com VENDOR OR FEDERAL ID: NAICS: , , , NAME: CITY /STATE/ZIP: VENDOR OR FEDERAL ID: NAICS: NAME: CITY / STATE/ZIP: VENDOR OR FEDERAL ID: NAICS: NAME: CITY /STATE /ZIP: VENDOR OR FEDERAL ID: NAICS: NAME: CITY /STATE/ZIP: VENDOR OR FEDERAL ID: NAICS: NAME: CITY /STATE /ZIP: VENDOR OR FEDERAL ID: NAICS: Rviled ):}111.1

10 SUBCONTRACTOR PARTICIPATION PLAN Page 5of5 SUBCONTRACTOR COMPANY INFORMATION PROFILE INFORMATION S PROPosaD % PROPOSED DESCRIPTION OF PROJECT SERVICES NAME: Southshore Building Services Window Washing 4208 E. La Palma Avenue CITY /STATE/ZIP: Anaheim, CA $16,000 0 Michael Boghoskhan TELEPHONE No: (800) michael@southshoreinc.com VENDOR OR FEDERAL ID: NAICS: NAME: Ricoh USA, Inc. Copier Lease Five Dedrick Place CITY /STATE/ZIP: West Caldwell, NJ N/A $14,000 0 TELEPHONE No: (973) N/A VENDOR OR FEDERAL ID: NAICS: NAME: SWN Communications Emergency Notification Services 224 W. 30th Street, Suite 500 CITY / STATE/ZIP: New York, NY $2'000 0 Andrew Meyer (212) ameyer«sendwordnow.com VENDOR OR FEDERAL ID: NAICS: NAME: AT &T (TP1e acific Communication< Telecom Agreement 515 South Flower Street, 47th Floor Coy/STATE/ZIP: Los Angeles, CA Michael W. James $27,600 0 (877) N/A VENDOR OR FEDERAL ID: NAICS: I certify under the penalty of perjury that the information contained on this form is true and correct and that the firms listed are the subcontractors that will be utilized if this contract is awarded to the above prime contractor. I agree to comply with any applicable provisions for additions and substitutions, and I further understand and agree that any and all changes or substitutions must be authorized by LA WA Procurement Services Division prior to their implementation. Participation Level Proposed by BidderlProposer: 15% % MIWBE DBE SBE ACOBE Participation Level or Goal Stated in the Request for Bid /Proposal: 10 % SBE MNVBE DBE AC DBE 5/12/2015 SIGNATURE DATE Kevin Rude Managing Director NAME TITLE PHONE RrnN7,29,1