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HomeMy WebLinkAboutAgenda - 06-05-2001-8xORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 5, 2001 Action Agen~ ~- Item No. ~* SUBJECT: Contract Renewal; Pro ert Mana ement Services - 501 West Franklin Street DEPARTMENT: Purchasing S~ Central Services PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones 245-2552 Renewal TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968501 Durham 688-7331 Mebane 33fi-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,.2002. BACKGROUND: ESM Associates has provided property management services at the referenced property since the County purchased it in July, 1990. The fee for property management services is 5% of the gross rent, which if all spaces are rented for the full year equals approximately $6,000 per year. Property manager responsibilities include: • Providing a point of contact for the tenants of 501 W. Franklin Street far any tenant issue and presenting these issues to the County as may be required. Examples of issues include maintenance items, parking locations, etc. • Authorizing expenditures for routine maintenance items up to $500 per expenditure. 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 that 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 approves leases and renewals with all tenants in the facility. Asa .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, 2001 through June 30, 2002, with a 90-day notice to terminate the agreement available to either party. FINANCIAL IMPACT: One small suite remains open at this time, however, a tenant appears imminent according to the property manager. If the suite is filled, an estimated $6,000 would be needed to cover the cost of this contract. Funds are budgeted in the Rents and Insurance Account. RECOMMENDATION: The Manager recommends that the Board approve the renewal agreement with ESM Associates through June 30, 2002; and authorize the Chair to sign on behalf of the Board. RENEWAL AGREEMENT BETWEEN COUNTY OF ORANGE AND STEPHEN J. MANTON, d/b/a/ ESM ASSOCIATES NORTH CAROLINA COUNTY OF ORANGE WHEREAS, an agreement was made and entered into as of the 20th day of August, 1996, by and between Orange County, hereinafter referred to as the "County" and ESM Associates, hereinafter referred to as "ESM", for property management services at 501 West Franklin Street, Chapel Hill,. NC; WHEREAS, the County and ESM mutually agree to the following: 1. The agreement will be continued for a period beginning July 1, 2001 and ending at 12:00 midnight on June 30, 2002. 2. All other terms and conditions shall remain the same. COUNTY OF ORANGE Stephen Halkiotis, Chair ESM Associates Stephen J. Manton Date: Date: 2