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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: May 16, 2000 <br />Action Agenda <br />Item No. ~' O <br />SUBJECT: Contract Renewal; Property Management Services/501 West Franklin St <br />DEPARTMENT: Purchasing ~ Central Services PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Pam Jones 245-2652 <br />Renewal TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 _ <br />Durham 688-7331 <br />Mebane 336-227-2031 <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, 2001. <br />BACKGROUND: ESM Associates has provided property management services at the <br />referenced property since the County purchased it in July, 1996. The fee for property <br />management services is 6% of the gross rent, which if all spaces are rented for the full year <br />equals approximately $6,000 per year. Property manager responsibilities include: <br />• Providing a point of contact for the tenants of 501 W. Franklin Street for any tenant issue <br />and presenting these issues to the County as may be required. Examples of issues include <br />maintenance items, parking locations, etc. <br />• Authorizing expenditures for routine maintenance items up to $500 per expenditure. All bills <br />for such maintenance are reviewed by the property manager and sent to the County <br />Purchasing Director who ensures that payment is made. <br />• Further, the property manager seeks out suitable tenants to fill any vacancies that occur in <br />the building. However, the County reserves "first right of refusal" to the vacated space prior <br />to commitment to a new tenant. The Board of Commissioners approves leases and <br />renewals with .all tenants in the facility. <br />As a general note, the property manager does not collect rent on behalf of the County. Rent <br />checks are mailed directly to the County to ensure proper accounting is maintained. <br />The term of the proposed renewal is July 1, 2000 through June 30, 2001, with a 90-day notice <br />to terminate the agreement available to either party. <br />FINANCIAL IMPACT: The County will pay approximately $6,000 per year for this service. As <br />a point of reference for the amount of increase, the fee in 2000 is approximately $168 more <br />