HomeMy WebLinkAboutAgenda - 05-16-2000-8oORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 16, 2000
Action Agenda
Item No. ~' O
SUBJECT: Contract Renewal; Property Management Services/501 West Franklin St
DEPARTMENT: Purchasing ~ Central Services PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Pam Jones 245-2652
Renewal TELEPHONE NUMBERS:
Hillsborough 732-8181
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, 2001.
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 $6,000 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.
• 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.
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, 2000 through June 30, 2001, with a 90-day notice
to terminate the agreement available to either party.
FINANCIAL IMPACT: The County will pay approximately $6,000 per year for this service. As
a point of reference for the amount of increase, the fee in 2000 is approximately $168 more
2
than 1999, which represents a 2.8% increase. The fee is based upon 100% occupancy 12
months of the year. The fee is paid on the actual occupancy of the space. 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, 2001; 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, 199fi, 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, 2000 and ending at
12:00 midnight on June 30, 2001.
2. All other terms and conditions shall remain the same.
COUNTY OF ORANGE
Moses Carey, Jr., Chair
ESM Associates
Date:
Date:
Stephen J. Manton