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HomeMy WebLinkAboutE-15 Staff Report - CoStar Superseding AgreementCONSENT ITEM E-15 TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS VIA: SERGIO GONZALEZ, CITY MANAGER FROM: ANN GRAF, DIRECTOR OF INFORMATION TECHNOLOGY AND LIBRARY SERVICES DATE: JULY 15, 2019 SUBJECT: REQUEST TO ENTER INTO A SUPERSEDING THREE (3) YEAR AGREEMENT WITH COSTAR FOR PROPERTY AND REAL ESTATE DATABASE TOOLS BACKGROUND: The City entered into a one (1) year subscription with CoStar, a firm that provides property and market information for the real estate industry. The rate under the current agreement is $12,240 annually. CoStar offers a 20% discount on three (3) year agreements. The annual cost with the 20% discount is $9,792 which results in a savings of $2,448. In order to take advantage of the same level of service at a discounted rate, Staff recommends the City enter into a superseding agreement. This action approves a superseding three (3) year agreement with CoStar. RECOMMENDATION: Staff recommends the City Council take the following actions: 1)Waive formal sealed bids in accordance with Azusa Municipal Code Section 2-520 section b.2; and 2)Award a three (3) year superseding agreement with CoStar Realty Information, Inc., in the amount of $9,972 annually; and 3)Authorize the City Manager to execute the agreement, in a form acceptable to the City Attorney on behalf of the City. APPROVED CITY COUNCIL 7/15/2019 ANALYSIS: On April 11, 2019, the City entered into a one (1) year subscription with CoStar, a firm that provides research information and analytics for the real estate industry. Through the CoStar Suite, the City has access to CoStar Property, CoStar COMPS and CoStar Tenant. The suite provides access to information such as but not limited to: • Access to a full market inventory of properties and spaces available and fully leased; • View of market activity; • Market performance with key metrics; • Target prospective tenants with expiring leases; and • Alerts to track tenants, recent transactions and broker activity. CoStar was instrumental in preparing for developer and retailer meetings scheduled at ICSC RECon 2019 and it continues to support Staff’s economic development efforts. Its commercial real estate market reports provide useful data when attracting investment opportunities. FISCAL IMPACT: Funding for the superseding three (3) year agreement with CoStar was included in the Information Technology Fiscal Year 2019-2020 budget in Computer Software/Licensing account number 48-49-930-000-6504. The annual cost associated with the agreement is $9,792, for a total contract amount of $29,376. Prepared by: Reviewed and Approved: Carina Campos Ann Graf Economic Development Specialist Director of Information Technology and Library Services Reviewed and Approved: Sergio Gonzalez City Manager Attachment: 1) CoStar Subscription Form Attachment 1