Background
In January 2012 the Real Estate Management Office issued an RFP for professional building management services for the Jerry Hammond Center (JHC) at 1111 E. Broad Street and the Franklin County Municipal Court Building (MCB) at 375 S. High Street to assist the City in properly maintaining and operating these buildings in a professional, cost effective and efficient manner. Paradigm Properties of Ohio was awarded the contract and a Facilities Management Agreement (FMA) was approved by City Council via Ordinance 0767-2012. The FMA provided for an initial one year term (May 1, 2012 - April 30, 2013) and four (4) consecutive one (1) year renewal terms each subject to the appropriation of necessary funds by Columbus City Council and certification of funds availability by the City Auditor. This legislation authorizes funding for the first of four consecutive one-year renewal terms of the FMA contract.
The FMA sets the annual building management fee and identifies the duties the management company is required to perform as part of its oversight of the daily building operations and maintenance of the JHC and MCB, establishes standards for procuring services, preparing RFP's and soliciting bids for outside maintenance and repair services, and requires certain accounting and reporting procedures for expenditure of building operating funds including the establishment and maintenance of separate building accounts for the JHC and MCB. At the JHC, these responsibilities include the direct payment of all building operating expenses except utilities (paid directly by City). For the initial year of the FMA at the MCB, the City chose to continue its existing contracts for preventative maintenance and also building operation expenses, and the payment thereof under funds budgeted for the Facilities Management Division to allow for a phased transition of these responsibilities to Paradigm Properties of Ohio. For the 2013-2014 term, contracting and payment of MCB preventative maintenance services has been transitioned to Paradigm Properties of Ohio as previously authorized by Ordinance 0611- 2013. The FMA also requires that an annual building operating budget be prepared and submitted each August for both the JHC and MCB projecting the building operating expenses for the next contract year.
This ordinance authorizes a total expenditure of $1,301,925.00 for payment to Paradigm Properties of Ohio, LLC for building management services at the JHC and MCB for the term May 1, 2013 through April 30, 2014. The allocation of the funds is as follows: $922,48.003 for the JHC which includes $668,294.00 for payment of JHC building operating expenses and $254,189.00 for payment of the building management service fee; and $379,442.00 for the MCB for payment of the building management service fee.
Paradigm Properties of Ohio's Contract Compliance Number is 311609350 with an expiration of 3/25/2014.
Emergency action is requested to ensure that ongoing building management, maintenance, and repair services are provided to the Jerry Hammond Center and the Franklin County Municipal Court Building without interruption.
Fiscal Impact: Funds for the Jerry Hammond Center ($922,483) have been appropriated and are available in Fund 294, the Property Management Fund, and funds for Budget for the Franklin County Municipal Court Building ($379,442.00) have been appropriated and are available in the 2013 General Fund Budget. ($1,301,925.00)
Title
To authorize the expenditure of $922,483.00 from the Property Management Fund, and $379,442.00 from the 2013 General Fund, for payments to Paradigm Properties of Ohio, LLC for the second year of a Facilities Management Agreement with Paradigm Properties of Ohio, LLC; and to declare an emergency. ($1,301,925.00)
Body
WHEREAS, it is necessary to authorize the expenditure of $922,483.00 from Fund 294, the Property Management Fund, and the expenditure of $379,442 from the 2013 General Fund Budget to provide payments to Paradigm Properties of Ohio, LLC for the first of four renewal terms of a Facilities Management Agreement for 1111 East Broad Street (Jerry Hammond Center) and 375 S. High Street (Franklin County Municipal Court Building), for payment of building operating expenses (except utilities) and building management fees; and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Real Estate Management Office, in that it is immediately necessary to authorize the expenditure of $1,301,925 to ensure that proper and efficient building operations of both the Jerry Hammond Center and the Municipal Court Building MCB continue uninterrupted, thereby immediately preserving the public health, peace, property, safety, and welfare; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director is authorized to establish a purchase order to make payments for the continuance of the Facilities Management Agreement with Paradigm Properties of Ohio, LLC, for the first of four automatic one- year renewal terms for the period May 1, 2013 through April 30, 2014.
SECTION 2. That the expenditure of $1,301,925.00, or so much thereof as may be necessary, be and is hereby authorized and approved as follows:
Dept./Div.: 45-07
Fund: 294
Subfund: 001
OCA: 294001
Object Level 01: 03
Object Level 03: 3370
Amount: $922,483
Dept./Div.: 45-51
Fund: 010
OCA: 455102
Object Level 01: 03
Object Level 03: 3370
Amount: $379,442
SECTION 3. That the necessary funds to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves or vetoes the same.