Authorize agreement with Lloyd B.I.D., Inc. for Lloyd District Property Management Services for an estimated amount of $3,550,000 over five years

Pursuant to Chapter 6.06 of the City Code, the City has established a property management license fee within the Lloyd Enhanced Services District, also called the “Lloyd District,” “Lloyd ESD,” or the, “District.” The purpose of the license fee is to provide revenues to fund supplemental transportation management and assistance, community engagement and resource sharing, neighborhood promotion, right-of-way landscaping projects, and temporary assistance to those experiencing houselessness in the Lloyd district. This ordinance approves the new 5-year agreement with Lloyd BID for ESD management services. A companion ordinance is before the City Council on December 13, 2023, to meet the sunset review requirements in City Code 6.06.280 and extend the Lloyd District for an additional ten (10) years. Lloyd B.I.D., Inc. (“Lloyd BID”) is a non-profit organization representing a large number of property owners and managers in the District. Lloyd BID initiated the establishment of the license fee. Lloyd BID also represents the property managers who will be responsible for paying most of the license fee revenues, and it is uniquely qualified to manage the provision of District services. Lloyd BID is a “qualified contractor” as defined in PCC 6.06.020.N. In the absence of any other qualified non-profit who could fulfill the work of the Lloyd ESD, in accordance with City Code 5.33.120.C, a Sole Source Procurement Notice was published on November 16, 2023, and remained posted for a minimum of seven (7) business days. No comments or protests were received. The City may award a sole source contract in accordance with City Code Chapter 5.33

The amendments proposed via the companion ordinance to City Code 6.06.260 change the property management fee structure, originally based on property tax assessments in 2010-2011, and adjusts to inflation rates over the past ten years, yielding a more robust projected operating revenue for the Lloyd BID, which plans to add right-of-way cleaning to the bevy of work they currently provide on behalf of the Lloyd ESD. This change will increase the projected operating revenue for the Lloyd BID to continue existing work while adding in new right-of-way cleaning work, further contributing to the vibrancy of the District. This ordinance gradually increases the license fee paid by district property owners. This increases the resources available to the ESD Board to spend on procuring additional services within the district. The City charges administrative fees to collect and distribute these fees. These fees total between 3 and 4% of the total revenue collected and cover the Revenue Division’s costs to collect and distribute fees, a variable fee associated with the costs of the City’s ITS system replacement and a portion of the cost of the ESD Coordinator position housed within the Office of the CAO at OMF. These details are described in the new 5-year contract scheduled to be approved at the same City Council meeting by separate companion ordinance.

Providing additional services for this district contributes to the attractiveness and vitality of the Lloyd ESD, enhancing the vibrancy for all who live, work, or visit the Lloyd district. Furthermore, these services increase the district’s resiliency and aids in the attraction and retentions of businesses, residents, and visitors from near and far. Home to the Moda Center and the Oregon State Convention Center, a vibrant and attractive Lloyd district is imperative due to this district’s ability to attract conferences, exhibitions, and sports fans from all over. A vital Lloyd district increases tourism and business revenue, which increases city tax revenue that supports the General Fund and other public services. The Lloyd ESD conducted extensive outreach to district ratepayers to assess the value of their services and build support for district renewal, with gradual rate increases reflected in the proposed PCC amendments. With the support of the Lloyd ESD Board and ratepayers, the district will be continuing past services while expanding their cleaning services within the district and hiring a part-time administrator. District renewal and service expansion received strong support from district ratepayers. The City mailed a postcard and letter about the renewal process on November 17th. The mailer included a link to a survey and provided information on how to submit comments, attend a virtual open house on November 28, or participate in the City Council hearing on December 13.