SUBJECT:
title
Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute an amendment to the property management agreement with CIM TX Management, LLC for property management services for 3100 E. 5th Street, Austin, Texas to extend the agreement through December 31, 2024, for a total amount not to exceed of $217,500, plus related pass-through building expenses.
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FISCAL IMPACT:
Funding for this action is available in the FY2024 Operating Budget.
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☐ 2. Community
☒ 3. Workforce ☒ 4. Organizational Effectiveness
Strategic Objectives:
☐ 1.1 Safe & Reliable Service ☒1.2 High Quality Customer Experience ☐ 1.3 Accessible System
☐ 2.1 Support Sustainable Regional Growth ☐ 2.2 Become a Carbon Neutral Agency
☒ 2.3 Responsive to Community and Customer Needs ☐ 2.4 Regional Leader in Transit Planning
☐ 3.1 Diversity of Staff ☐ 3.2 Employer of Choice ☒ 3.3 Expand Highly Skilled Workforce
☐ 4.1 Fiscally Responsible and Transparent ☐ 4.2 Culture of Safety ☒ 4.3 State of Good Repair
EXPLANATION OF STRATEGIC ALIGNMENT: Property management services currently support the operation of the CapMetro owned facility located at 3100 E. 5th Street. The building currently has two tenants who occupy a portion of the 3rd floor of the facility. These property management services will continue to support the financial and operational needs of the agency and these tenants.
BUSINESS CASE: CapMetro leases a portion of its facility located at 3100 E. 5th street to two tenants who pay rent on a monthly basis. Property management services, including security, janitorial, maintenance, etc. are required to support the needs of these tenants and the upkeep and maintenance of CapMetro’s asset. CapMetro is in the process of establishing in-house capacity for these services, but this capacity will not be in place until the end of 2024. The funding for this amendment is included in the FY24 Operating Budget.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval at the Operations, Planning and Safety Committee meeting on April 10, 2024.
EXECUTIVE SUMMARY: CapMetro currently owns the facility located at 3100 E. 5th Street which is in the process of being converted into the agency’s new headquarters building. The building is currently occupied by two tenants who pay monthly rent for a portion of the 3rd floor of the building. Property management services are necessary to support these two tenants and the remainder of the building until the agency can acquire the necessary capacity to provide these services in-house, currently forecast to be by the end of 2024. This resolution is requesting approval for an amendment to the existing property management agreement with CIM, Inc. to continue to provide these services through December 31, 2024.
The CapMetro Board of Directors approved the property management agreement with CIM, Inc. as part of its approval of the real property acquisition of 3100 East 5th Street under Texas Transportation Code Section 451.110. This resolution is requesting approval to extend the property management agreement with CIM, Inc. through December 31, 2024, while CapMetro establishes an internal property management team to take over the services.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Facilities Management; Capital Construction, Engineering & Design (CCED)
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2024-1133
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors (“CapMetro”) and CapMetro management recognize the need to provide services for customers and tenants who occupy its facilities; and
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and CapMetro management recognize the need to provide reliable property management services to support the operations of its facilities; and
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the President & CEO, or her designee, is authorized to finalize and execute an amendment to the agreement with CIM TX Management, LLC for property management services for 3100 E. 5th Street, Austin, Texas to extend the agreement through December 31, 2024, for a total amount not to exceed of $217,500, plus related pass-through building expenses.
____________________ Date: ____________________
Secretary of the Board
Becki Ross