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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> Action Agenda <br /> Item No. R—m <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 30, 1997 <br /> SUBJECT: Contract Renewal; Property Management Services/501 West Franklin St. <br /> DEPARTMENT: PURCHASING AND Public Hearing: No <br /> CENTRAL SERVICES Budget Amendment Reqd? No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> PAM JONES, ext. 2650 <br /> Renewal <br /> Telephone Number- <br /> Hillsborough 732-8181 <br /> Chapel Hill 967-9251 <br /> Mebane 227-2031 <br /> Durham 688-7331 <br /> PURPOSE: To consider renewing a contract with ESM Associates, Chapel Hill for property <br /> management services at 501 W. Franklin Street through June 30, 1998. <br /> BACKGROUND: ESM Associates has provided property management services at the referenced <br /> property since the County purchased it in July, 1996. The fee for property management services <br /> is 6%of the gross rent, which if all spaces are rented for the full year equals approximately $5,500 <br /> per year. Property manager responsibilities include: <br /> • Providing a point of contact for the tenants of 501 W. Franklin Street for any tenant issue and <br /> presenting these issues to the County as may be required. Examples of issues include maintenance <br /> items, parking locations, etc. ESM is also responsible for assigning parking and issuing the parking <br /> permits to the 501 tenants. <br /> • Authorizing expenditures for routine maintenance items up to$500 per expenditure. All bills for such <br /> maintenance are reviewed by the property manager and sent to the County Purchasing Director who <br /> ensures that payment is made. <br /> • Further,the property manager seeks out suitable tenants to fill any vacancies which occur in the <br /> building. However, the County reserves"first right of refusal'to the vacated space prior to <br /> commitment to a new tenant.The Board of Commissioners approve any leases with tenants in the <br /> facility. <br /> As a general note,the property manager does not collect rent on behalf of the County. Rent checks are <br /> mailed directly to the County to ensure proper accounting is maintained. <br /> The term of the proposed renewal is July 1, 1997 through June 30, 1998,with a 90 day notice to terminate <br /> the agreement available to either party. <br /> RECOMMENDATION: The Manager recommends that the Board approve the renewal <br /> agreement with ESM Associates through June 30, 1998; and authorize the Chair to sign on behalf <br /> of the Board. <br />