BOARD o F iliiip. RT COMMISSIONERS

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1 : ' Los Angeles World Airports REPORT TO THE BOARD o F iliiip RT COMMISSIONERS Rem t nbor e A d C 1_% t le t A ' ttegillip r- 0 Approved Ma in Dep y ve Director Reviewed by: Debie Bowers De Tui Executive Director /-" : i a Marie Lindsey - Executive Direct Meeting Date: 1/13/ Completed CAO Review: D Pending M N/A Reviewed for Date Approval Status By Capital Budget 11/27/2013 QY O N 0 NA DS Operating Budget 11/20/2013 MD N!DNA RW CEOA ji (221(3 D3Y 0 N C--S Procurement 12/2/2013 ElY ON o Cond MT SUBJECT: Contract Award to Total Commercial Real Estate Inc Award a three-year contract for an amount not to exceed $ to Total Commercial Real Estate Inc to provide residential property management services for the Voluntary Residential Acquisition and Relocation Program areas of Manchester Square and Airport/Belford in the eastern vicinity of Los Angeles International Airport 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 II Section 2f of the Los Angeles City CEQA Guidelines 3 FIND that the work can be performed more economically or feasibly by an independent contractor than by City employees 4 APPROVE award of a three-year contract for an amount not to exceed $ to Total Commercial Real Estate Inc to provide residential property management services for the Voluntary Residential Acquisition and Relocation Program areas of Manchester Square and Airport/Belford in the eastern vicinity of Los Angeles International Airport 5 AUTHORIZE the Executive Director to execute this contract upon approval as to form by the City Attorney Page 1

2 DISCUSSION: 1 Purpose The purpose of this action is to provide Los Angeles World Airports (LAWA) property management services to manage its residential properties acquired in the Manchester Square and Airport/Belford Program Areas These property management services must address ever changing needs as single and multi-unit residential properties are investigated for purchase acquired and then managed from an occupied status through relocation of tenants an unoccupied state demolition and then as vacant land 2 Prior Related Actions None 3 Current Action In 1997 LAWA implemented the Residential Soundproofing Program for noise-impacted residential dwellings in areas surrounding Los Angeles International Airport (LAX) in accordance with the Federal Aviation Administration (FAA) Part 150 Airport Noise Compatibility Planning Program Owners and residents from the Manchester Square and Airport/Belford areas (see attached maps) requested that LAWA purchase their properties in lieu of soundproofing Therefore LAWA developed the Voluntary Residential Acquisition and Relocation Program (Program) as an alternative to noise mitigation for these areas The FAA approved the Program and implementation commenced in January 1998 The Program entails acquiring the noise-impacted properties within the Program areas on a voluntary basis relocating occupants demolishing vacant structures and providing fluctuating levels of property management during all phases including for vacant lots Currently the Program's real property portfolio consists of more than 80 acres of land including occupied and vacant single and multi-family properties In addition to those properties LAWA is currently negotiating the acquisition of additional single and multi-family properties Property management services are required to manage LAWA's residential real estate in the Program areas as well as to support the inspection and turnover to LAWA of additional acquired properties Property management services include: pre-acquisition due diligence tenant relations rent collection property inspections emergency repairs utilities management building and site maintenance landscaping service pest control custodial services waste removal coordination with relocation and demolition contractors and generating reports for all property management areas Procurement Process On June a Request for Proposals (RFP) for the Program's property management services was posted on the City of Los Angeles' Business Assistance Virtual Network (ie wwwlabavnorg a website hosted by the City of Los Angeles Mayor's Office that advertises the City's business opportunities) The following proposers submitted written proposals by the July deadline: Page 2

3 1 DreamWorks Realty 2 Equity North Investments Inc 3 Total Commercial Real Estate Inc 4 Vesta Management Inc LAWA's Procurement Services Division (PSD) reviewed the proposals and determined that three of the four firms passed the administrative requirements review PSD disqualified DreamWorks Realty's proposal due to their inability to meet the mandatory 20% Small Business Enterprise (SBE) administrative requirement participation level Equity North Investments Inc's proposal was disqualified due to failure to comply with the RFP's minimum qualifications requirements Consequently the evaluation panel reviewed the two remaining proposals The evaluation panel consisted of the following staff: Deputy Executive Director Commercial Development Group - Real Estate Services Property Manager Commercial Development Group Senior Management Analyst Airports Development Group - Soundproofing The evaluation panel conducted interviews on September to further clarify the proposers' written responses Both the written proposals and the interviews were evaluated using the following evaluation criteria published in the RFP: N Evaluation Criteria Max Points Cost Proposal 40 Relevant Experience of Project Manager and team; demonstrated capability to perform work required Management Plan (staffing and procedures needed to perform the scope of work and a transition plan) demonstrated customer service / response time Financial Capability TOTAL 100 Based on the panel's evaluation the proposers were ranked as follows: Proposer Rank Total Commercial Real Estate Inc 1 Vesta Management Inc 2 The evaluation panel determined that Total Commercial Real Estate Services Inc was the most qualified firm to perform the Program's property management services due to their staffing plan standard operating procedures and property management experience Total Commercial Real Estate Services Inc proposed a SBE participation level of 2203% exceeding the 20% participation level required for the contract Page 3

4 Action Requested Staff requests the Board approve award of a three-year contract to Total Commercial Real Estate Inc Fiscal Impact The total cost for the three-year property management services contract being requested is not to exceed $ Until tenants are relocated after purchase of properties there will be rental income generated from the properties 4 Alternatives Considered Not award this contract Not awarding this contract leaves LAWA with no residential property manager Through the Program LAWA is obligated to maintain and manage the property including any tenants of acquired buildings APPROPRIATIONS: The Program's property management services have been approved by the FAA to be funded from PFC funds Therefore it is requested that funds for this contract in the amount not-toexceed $ be appropriated and allocated from the LAX Passenger Facility Charge Fund to WBS Element R as may be required Additional authorization required for property management services associated with new acquisitions will be requested within the Board reports seeking approval of the acquisitions The unit prices for supplemental property management services have been pre-determined as part of this RFP / contract process STANDARD PROVISIONS: 1 This item as a continuing administrative maintenance and personnel-related activity is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Article ll Section 2f of the Los Angeles City CEQA Guidelines 2 This item 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 Total Commercial Real Estate will comply with the provisions of the Living Wage Ordinance 5 Procurement Services reviewed this action (File No 6215) and established a mandatory 20% Small Business Enterprise goal Total Commercial Real Estate committed to 2203% SBE participation 6 Total Commercial Real Estate will comply with the provisions of the Affirmative Action Program 7 Total Commercial Real Estate has been assigned Business Tax Registration Certificate No Total Commercial Real Estate will comply with the provisions of the Child Support Obligations Ordinance Page 4

5 9 Total Commercial Real Estate will have approved insurance documents in the terms and amounts required on file with the Los Angeles World Airports prior to issuance of a Notice to Proceed 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 Total Commercial Real Estate has submitted the Contractor Responsibility Program Questionnaire and Pledge of Compliance and will comply with the provisions of the Contractor Responsibility Program 12 Total Commercial Real Estate 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 execution of contract 13 Total Commercial Real Estate will be required to comply with the provisions of the First Source Hiring Program for all non-trade LAX Airport jobs 14 Total Commercial Real Estate has submitted the Bidder Contributions CEC Form 55 and will comply with its provisions Attachments Page 5

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8 MANCHESTER SQUARE December PROPERTY ELIGIBLE FOR ACQUISITION ACQUIRED PROPERTIES ACQUIRED AND CLEARED PROPERTIES ARBOR VITAE ST 93RD ST 94TH ST CENTURY BLVD Page 6 RAD Property Management Seivices Board Report

9 WESTCHESTER PARKWAY ARBOR VITAE ST 98Thl ST AIRPORT/BELFORD December ACQUIRED AND CLEARED PROPERTIES ACQUIRED PROPERTIES PROPERTY IN ESCROW Page 7