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 a five-year term consisting of an initial one year term (May 1, 2012 - April 30, 2013) and four (4) automatic 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 fourth and final renewal term of the FMA contract.
The FMA sets the annual building management fee and details the duties of the management company in the oversight of the daily building operations and maintenance of the JHC and MCB, including the direct payment of all operating expenses, excluding utilities, 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 all expenditures of building operating funds. Per the terms of the FMA, the management company is required to establish and maintain separate JHC and MCB building operating accounts from which all building services for each building are paid. The FMA also requires that an annual building operating budget be prepared and submitted to the Real Estate Management Office each August for both the JHC and MCB projecting the building operating expenses for the next contract year.
This ordinance authorizes payment to Paradigm Properties of Ohio, LLC: as a total expenditure of $990,754.00 from the Property Management Fund that includes $712,995.00 for the payment of 2016 JHC building operating expenses and payment of $277,759.00 for the JHC building management fee for the fourth renewal term (May 1, 2016 - April 30, 2017) of the FMA contract; and authorizes payment as a total expenditure of $1,128,100.00 from the 2016 General Fund that includes $717,500.00 for payment of 2016 MCB building operating expenses and payment of $410,600.00 for the MCB the building management fee for the fourth renewal term (May 1, 2016 - April 30, 2017) of the FMA contract.
Emergency action is requested to ensure that daily building services to the JHC and MCB will continue without interruption.
Fiscal Impact: Funding for the Jerry Hammond Center ($990,754) is budgeted and available in Fund 2294, the Property Management Fund, 2016 Operating Budget and funding for the Franklin County Municipal Court Building ($1,128,100) is budgeted and available in Fund 1000, the 2016 General Fund Budget. ($2,118,854.00)
Title
To authorize the expenditure of $990,754.00 from the Property Management Fund and $1,128,100.00 from the 2016 General Fund Budget for payments to Paradigm Properties of Ohio, LLC for building operating expenses at the Jerry Hammond Center and Municipal Court Building and the fourth year of a Facilities Management Agreement; and to declare an emergency. ($2,118,854.00)
Body
WHEREAS, it is necessary to authorize the expenditure of $990,754.00 from the Property Management Fund and $1,128,100.00 from the from the 2016 General Fund Budget, to provide payments to Paradigm Properties of Ohio, LLC for building operating expenses at the Jerry Hammond Center (1111 E. Broad Street) and the Municipal Court Building (375 S. High Street) and the fifth year of a Facilities Management Agreement; 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 $2,118,854.00 to ensure that daily building services to both the JHC and MCB will continue without interruption, 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 purchase orders to make payments for building operating expenses at the Jerry Hammond Center and Municipal Court Building and continuance of a Facilities Management Agreement for the fifth year (May 1, 2016 to April 30, 2017) of a five year term.
SECTION 2. That the expenditure of $2,118,854.00,or so much thereof as may be necessary in regard to the action authorized in SECTION 1, is hereby authorized in Fund 2294 ($990,754.00) and Fund 1000 ($1,128,100.00) in Object Class 03 per the accounting codes in the attachment to this ordinance:
See Attached File: Ord 0409-2016 Legislation Template.xls
SECTION 3. That the funds necessary 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 the expenditures above shall be paid upon order from the Director of Finance and Management and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 5. That the City Auditor is authorized to make any accounting changes necessary to ensure that this contract is property accounted for and recorded accurately on the City’s financial record. The City Auditor is authorized to make any changes to revise the funding source for any contract or contract modification associated with this ordinance.
SECTION 6. 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.