Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Subject: RPP Property Management, LLC, to provide continued property management services related to County-owned property
RECOMMENDATION:
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Adopt a resolution:
A) Authorizing the County Executive, or their designee, to execute property management agreements (“Agreements”) with RPP Property Management, LLC, to provide management services of certain County-owned properties; and
B) Authorizing the County Executive, or their designee, to execute agreements, amendments, agreements for optional services, extensions, terminations, instructions, and documents required to facilitate the purposes of the Agreements.
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BACKGROUND:
The County has recently purchased several commercial properties in order to reduce leasing of offices for County programs in privately owned commercial office buildings. The County’s recent and long-term investment in real property will enable the County to relocate County programs from leased office buildings to newly purchased County-owned office buildings. The County’s recent and pending real property acquisitions include executive offices and mixed-use commercial buildings and research and development buildings, which will provide needed administrative, executive, and professional office space for County programs. The properties are purchased by the County subject to existing commercial leases, which means that current business tenants will continue to occupy a percentage of the building’s office spaces through the duration of their lease term periods. As current leases expire and offices become vacant and available, the County will have the option to either move a County program into the office suite, or enter into a short-term tenancy with a new commercial tenant, as best suits the County’s needs at the time the vacancy occurs.
DISCUSSION:
The County desires to engage the services of a commercial property management firm to manage tenants and oversee the day-to-day operations of the recently purchased County-owned buildings. The County’s Department of Public Works will oversee and manage all property maintenance, repairs and capital improvements of the properties.
On July 25th, 2024, the County published a Request for Proposal inviting qualified property management firms to submit proposals for the provision of all aspects of site property management for the newly-acquired office buildings. In response, on July 31st, 2024, six firms submitted timely proposals and participated in interviews before a selection committee comprised of administration of the County Executive’s Office, the Department of Public Works and Real Property Services. After thoroughly reviewing proposals and presentations, RPP Property Management, LLC, was selected by the committee as the most qualified service provider.
County Executive is requesting the Board authorize entering into Agreements with RPP Property Management, LLC, to provide property management services and to serve as the liaison between the County and the existing tenants of the acquired office spaces.
County Attorney has reviewed and approved the resolution as to form.
EQUITY IMPACT:
The County is dedicated to providing critical access to services for vulnerable individuals. It is anticipated the acquisition of Real Property for County use would further enable the County to administer said essential services by increasing County office facility capacity when needed.
FISCAL IMPACT:
There is no Net County Cost associated with this agreement. The contractor is funded through operating charges paid by the tenants of the property locations managed under this agreement. Due to the structure of the agreement, the total cost to the County of the contract is less than $200,000, as the management fee is calculated as a percentage of Gross Revenue which is expected to exceed expenses and the minimum management fee, such as no General Fund revenue will be needed while commercial tenants occupy the buildings. The term of this agreement is for one year, renewable at the County’s option and thereafter terminable on 30 days’ notice.