SUBJECT:
title
Approval of a resolution authorizing the Interim President & CEO, or their designee, to finalize and execute a lease with Met Phase I 95, Ltd. for five years for 20,822 rentable square feet of storage space at 9715-A Burnet Road, Austin, TX 78758 in an amount not to exceed $2,850,000, plus a $440,000 allotment option for build out, for a total not to exceed amount of $3,290,000.
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FISCAL IMPACT:
Funding for this action is available in the FY2023 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: This proposed lease will be for a new CapMetro central warehouse to add space needed for parts to accommodate long lead items and for new zero-emission vehicles. The new fleet of electric vehicles will not fully replace the diesel buses until 2035 so more storage space is needed. In addition, this central warehouse will be used to move rail items being stored and tested in bays at the 9315 Old McNeil Road CapMetro north operations and maintenance facility to allow for more buses to be maintained. This warehouse will also be used to support IT storage needs and potentially for uniform distribution.
BUSINESS CASE: CapMetro growth requires additional storage space for parts that will help ensure transit part delays do not create unnecessary transit service interruptions. This central warehouse lease will provide additional storage space needs and allow a more efficient and less costly storage solution to be provided for Procurement and Facilities. This central warehouse will also replace lease spaces that were used by Procurement and Facilities and will support the new MetroBike program that CapMetro recently took responsibility for. The funding for this lease is included in the FY 23 Operating Budget.
COMMITTEE RECOMMENDATION: This item was presented and recommended for approval at the Operations, Planning and Safety Committee on December 7, 2022.
EXECUTIVE SUMMARY: CapMetro is seeking lease space for a central warehouse. This lease space will provide more storage for transit parts to support the expanded zero emission fleet and to mitigate the wait for longer part lead times. In addition, this central warehouse will eliminate the need for less efficient and more costly storage solutions for Procurement and Facilities. This central warehouse will also provide needed storage space for MetroBike, Rail, and IT and potentially for uniform distribution. The proposed location is approximately ½ mile north of the CapMetro 9315 Old McNeil Road site. The proposed lease term is for 5 years with any early-out termination clause at 3 years with a 6-month rent penalty. The total not to exceed amount includes a $440,000 optional allotment for the building owner to complete the build out of the space which could be exercised.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Facilities Management
body
RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2022-601
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management recognize the need to provide for the safety of all customers and staff and comply with city, state and federal code requirements; and
WHEREAS, the Capital Metropolitan Transportation Authority Board of Directors and Capital Metro management recognize the need to provide a central warehouse that better supports the storage needs of Transit, Procurement, Facilities, and IT.
NOW, THEREFORE, BE IT RESOLVED by the Capital Metropolitan Transportation Authority Board of Directors that the Interim President & CEO, or their designee, is authorized to finalize and execute a lease with Met Phase I 95, Ltd. for five years for 20,822 rentable square feet of storage space at 9715-A Burnet Road, Austin, TX 78758 in an amount not to exceed $2,850,000, plus a $440,000 allotment option for build out, for a total not to exceed amount of $3,290,000.
____________________ Date: ____________________
Secretary of the Board
Leslie Pool