Agenda - 06-01-1999 - 8o - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 1, 1999 Action Agenda Item No. $ - ~ SUBJECT: Contract Renewal; Property Management Services/501 West Franklin St DEPARTMENT: Purchasing & Central Services PUBLIC HEARING: (YIN) No ATTACHMENT(S): Renewal INFORMATION CONTACT: Pam Jones, extension 2652 TELEPHONE NUMBERS: Hillsborough T32-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider renewing a contract with ESM Associates, Chapel Hill for property management services at 501 W. Franklin Street through June 30, 2000. BACKGROUND: ESM Associates has provided property management services at the referenced property since the County purchased it in July, 1996. The fee for property management services is 6% of the gross rent, which if all spaces are rented for the full year equals approximately $5,700 per year. Property manager responsibilities include: • Providing a point of contact for the tenants of 501 W. Franklin Street for any tenant issue and presenting these issues to the County as may be required. Examples of issues include maintenance items, parking locations, etc. ESM is also responsible for assigning parking and issuing the parking permits to the 501 tenants. Parking has become a higher profile issue since the opening of the Skills Development Center. Mr. Manton continues to work diligently to ensure tenant needs are met, while at the same time providing as much parking for the Skills Center as possible. • Authorizing expenditures for routine maintenance items up to $500 per expenditure. This includes certain such things as heating/cooling system emergency repairs, general clean up, stopped up drains, etc. All bills for such maintenance are reviewed by the property manager and sent to the County Purchasing Director who ensures that payment is made. • Further, the property manager seeks out suitable tenants to fill any vacancies which occur in the building. However, the County reserves "first right of refusal" to the vacated space prior to commitment to a new tenant. The Board of Commissioners approve leases and renewals with all tenants in the facility. As a general note, the property manager does not collect rent on behalf of the County. Rent checks are mailed directly to the County to ensure proper accounting is maintained. The term of the proposed renewal is July 1, 1999 through June 30, 2000, with a 90-day notice to terminate the agreement available to either party. FINANCIAL IMPACT: The County will pay approximately $5,700-per year for this service. As a point of reference for the amount of increase, the fee in 1998 was approximately $163 more than 1997, which