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 second of four consecutive one-year renewal terms 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 except utilities at the JHC and MCB and janitorial at the MCB, and 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. The terms of the FMA requires the management company 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 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 $1,572,183 for payment to Paradigm Properties of Ohio, LLC for building management services at the JHC and MCB for the term May 1, 2014 through April 30, 2015. The allocation of the funds is as follows: $964,354 for the JHC which includes $702,540 for payment of JHC building operating expenses and $261,814 for payment of the building management service fee; and $607,829 for the MCB includes $220,800 for payment of MCB building operating expenses and $387,029 for payment of the building management service fee. The transfer of funds within the 2014 budget for the MCB is necessary to properly reflect payment to Paradigm Properties for funding of MCB operating expenses.
Paradigm's Contract Compliance Number is 311609350, expiration 1/3/2016.
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: Funding for the Jerry Hammond Center ($964,354) is budgeted and available in Fund 294, the Property Management Fund, 2014 Operating Budget and funding for the Franklin County Municipal Court Building ($607,829) is budgeted and available in the 2014 General Fund Budget. The transfer of funds within the 2014 budget for the Municipal Court from the materials/supplies to the services designation is requested to more accurately reflect where the actual expenses will be incurred, and does not reflect a change in the 2014 budget amount for the Municipal Court. ($1,572,183.00)
Title
To authorize the transfer of $119,000.00 within the General Fund operating budget; to authorize the expenditure of $964,354.00 from the Property Management Fund and $607,829.00 from the 2014 General Fund Budget for payments to Paradigm Properties of Ohio, LLC for the third year of a Facilities Management Agreement; and to declare an emergency. ($1,572,183.00)
Body
WHEREAS, it is necessary to authorize the expenditure of $964,354.00 from Fund 294, the Property Management Fund, and the expenditure of $607,829 from the 2014 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 and building management fees; and
WHEREAS, it is necessary to authorize the transfer of funds between object levels within the 2014 General Fund operating budget to provide sufficient funds in the appropriate accounting designation for certain Franklin County Municipal Court Building operating expenses; 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 $1,572,183.00 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 transfer of appropriation within the General Fund be authorized as follows:
FROM:
Dept/Div: 45-51
Fund: 10
OCA Code: 455102
Object Level 1: 02
OL3: 2290
Amount $119,000.00
TO:
Dept/Div: 45-51
Fund: 10
OCA Code: 455102
Object Level 1: 03
OL3: 3390
Amount $119,000.00
SECTION 2. That the Finance and Management Director is hereby 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 second of four automatic one-year renewal terms for the period May 1, 2014 through April 30, 2015.
SECTION 3. That the expenditure of $1,572,183.00, or so much thereof as may be necessary in regard to the action authorized in SECTION 2, be and is hereby authorized and approved as follows:
Dept./Div.: 45-07
Fund: 294
OCA: 294001
Object Level 01: 03
Object Level 03: 3370
Amount: $964,354.00
Dept./Div.: 45-51
Fund: 010
OCA: 455102
Object Level 01: 03
Object Level 03: 3370
Amount: $607,829.00
SECTION 4. 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 5. That the expenditures above shall be paid upon order of 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 6. That the City Auditor is authorized to make any accounting changes necessary to ensure that this contract is properly 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.
SECTION7. 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.