0150-09432-0002TRANSMITTAL

COUNCIL FILE NO.DATETODeborah Flint, Chief Executive Officer Department of Airports NOV $ a ?.0f6

COUNCIL DISTRICTCity of

Palmdale

FROMThe Mayor

Approval to Award a Contract to ABM Onsite Service - West, Inc. for Property Management Services at Palmdale Landholdings

^Council consideration, report, attached.

Transmitted for further propessfng, includi See the City Administrative Officdi

Ana Guerrero/MAYO

MAS.'AVM: 101700611

CAO 649-d

REPORT FROM

OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Date: November 29, 2016 0150-09432-0002CAO File No.Council File No.Council District: City of Palmdale

To: The Mayor

From: Miguel A. Santana, City Administrative Officer

Reference: Communications from the Department of Airports dated November 1, 2016; referred by the Mayor for a report on November 3, 2016

Subject: APPROVAL TO AWARD A CONTRACT TO ABM ONSITE SERVICE - WEST, INC., FOR PROPERTY MANAGEMENT SERVICES AT PALMDALE LANDHOLDINGS

RECOMMENDATIONS

at the Mayor:TWi I

Approve the award of a proposed Contract (Contract) with ABM Onsite Service - West, Inc. (ABM Onsite) for a five-year term and an amount not-to-exceed $7,500,000 to provide property management services at Palmdale Landholdings, subject to City Attorney approval as to form. ABM Onsite must have approved insurance documents in the terms and amounts required prior to issuance of a Notice to Proceed, and is to comply with the City’s Standard Provisions for contracts, including Affirmative Action Program; Bidder Contributions City Ethics Commission Form 55; Child Support Obligations Ordinance; Contractor Responsibility Program; Equal Benefits Ordinance; Living Wage Ordinance; and Service Contract Worker Retention Ordinance;

1.

Authorize the Chief Executive Officer to execute the proposed Contract; and2.

Return the request to the Department of Airports for further processing, including Council consideration.

3.

SUMMARY

The Department of Airports (Department) has utilized several firms since 2003 to provide property management services for its Palmdale Landholdings consisting of approximately 17,500 acres. The acreage contains developed properties, tenant-occupied buildings, leased area to Kinkisharyo International, LLC a light rail car manufacturer and to National Aeronautics and Space Administration (Site 9), a tenant-leased and operated golf course, land leased to a Los

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Angeles County district and to agricultural tenants as well as unleased areas. A contract with Line Facility Services, LLC initially was approved by the Board of Airport Commissioners (BOAC) in December 2010. Subsequently, the BOAC approved a Consent to Assignment and Assumption document, which granted a name change to ABM Facility Services, Inc. (ABM), and a first amendment to the contract. The contract with ABM to provide property management services at Palmdale Landholdings will expire on December 31, 2016. According to Department staff, total expenditures are projected to be approximately $5,709,000 for contract base and additional services, from February 2011 through December 2016.

In response to a Request for Proposals (RFP) released in June 2016 for property management services at Palmdale Landholdings, the Department received proposals from ABM Onsite Service - West, Inc. (ABM Onsite) and Jones Lang LaSalle Brokerage, Inc. Through the competitive selection process, which included a review of the Administrative Requirements documents submitted and candidate interviews conducted by a panel of Department management staff, ABM Onsite was ranked highest based upon criteria outlined in the RFP.

The award of the five-year Contract to ABM Onsite, for a total amount not-to-exceed $7,500,000, will provide property management services at Palmdale Landholdings, which consists of approximately 17,500 acres of land and buildings. A summary of the Contract base services scope of work includes: property management responsibilities overview; facility maintenance and repair responsibilities for Palmdale Landholdings; safety and security services; administration and staffing; and, reporting requirements. Any Contract additional services, such as construction projects, emergency repairs, various contracted services, certifications and inspections, and unforeseen required services, will be provided to the Department based upon actual cost, with an administrative fee for certain services. Department staff will approve all additional costs outside of the base services.

The Department’s Procurement Services Division staff has reviewed this action (File No. 7152) and established a 10 percent mandatory Small Business Enterprise (SBE) goal. Likewise, ABM Onsite has committed to 10 percent SBE participation. The Contract contains provisions requiring 60 days written notice prior to suspension or termination of services. Also, Department staff notes that ABM Onsite was formed due to a restructuring of its parent company, ABM Industries, inc.

The BOAC approved the proposed Contract at its meeting on November 3, 2016.

FISCAL IMPACT STATEMENT

Approval of the proposed Contract between the Department of Airports (Department) and ABM Onsite Service - West, Inc. will have no impact on the General Fund. The total proposed Contract cost is $7,500,000 for the five-year term. Funds for projected current year costs are available in the Department’s 2016-17 Operating Budget in PMD Cost Center 1500005-PMD Asset Management, Commitment Item 520-Contractual Services. Funding for subsequent years will be requested as part of the annual budget process.

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