SUBJECT:
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Approval of a resolution authorizing the President & CEO, or her designee, to finalize and execute a commercial lease amendment with Omega Media Properties, LP, a Texas limited partnership for the addition of parking area and remodeling of office building spaces at 817 W. Howard Lane, Austin, Travis County, TX 78728 concurrent with the original lease base period of three (3) years, with three (3), 1-year renewal options, for an increase of $4,007,249, resulting in a new total not to exceed amount of $8,367,406.end
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FISCAL IMPACT:
Funding for this action is available in the FY2025 Capital and Operating Budgets.
STRATEGIC PLAN:
Strategic Goal Alignment:
☒ 1. Customer ☒ 2. Community
☒ 3. Workforce ☒ 4. Organizational Effectiveness
EXPLANATION OF STRATEGIC ALIGNMENT: Demand Response operations currently occupy three separate locations, two of which are leased. The leased facilities are located at 817 West Howard Lane and 4811 E. 7th Street. To more efficiently serve Demand Response customers, the agency is proposing to consolidate its north operations at 817 W. Howard Lane until the new North Base Demand Response facility is built. This 817 W. Howard Lane lease amendment includes expanding and improving the parking areas and improving the building interiors to consolidate staff and operations at this location.
BUSINESS CASE: The 817 W. Howard Lane Demand Response facility serves as the North Austin operating location for CapMetro Access (Paratransit) & Pickup (Micro transit) services. The additional parking areas and office space remodeling included in this lease amendment would allow for the consolidation of the Demand Response fleet operations to more efficiently serve the north service area and eliminate the rent currently paid for the second leased area. This expanded facility would support the MetroAccess fleet, CapMetro staff, service provider staff, operators, vehicle maintenance, fueling and related support infrastructure. This would eliminate the $70,981 monthly rent that is currently paid for the 4811 E. 7th St. leased facility. The funding for this amendment is included in the FY 2025 operating and capital budgets.
COMMITTEE RECOMMENDATION: This item was presented to the Operations, Planning and Safety Committee on June 11, 2025, and recommended for approval.
EXECUTIVE SUMMARY: CapMetro is proposing a lease amendment to the existing lease for 817 W. Howard Lane, which is the north operations location for agency Demand Response services. This lease amendment will allow the agency to consolidate two separate lease facility operations into one to improve service performance and improve efficiency. The lease amendment includes additional parking areas and related improvements, along with building interior remodeling to consolidate staff and vehicles at this location. This expanded facility would support the MetroAccess fleet, CapMetro staff, service provider staff, operators, vehicle maintenance, fueling and related support infrastructure.
The capital improvement cost for the building remodeling and parking lot improvements totals $1,913,680 plus $280,068 contingency ($2,193,748). The monthly lease for the additional parking areas totals $781,500 for the base lease period (2025-2027) and $1,032,000 for the option period (2028-2030) if necessary. The total addition to the existing lease for the capital improvements plus the additional lease cost for the base period plus the option period totals $4,007,249.
DBE/SBE PARTICIPATION: Does not apply.
PROCUREMENT: Does not apply.
RESPONSIBLE DEPARTMENT: Real Estate Department
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RESOLUTION
OF THE
CAPITAL METROPOLITAN TRANSPORTATION AUTHORITY
BOARD OF DIRECTORS
STATE OF TEXAS
COUNTY OF TRAVIS
AI-2025-1473
WHEREAS, the Capital Metropolitan Transportation Authority (“CapMetro”) Board of Directors and CapMetro 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 reliable operations facility that better support the needs of its Demand Response operations.
WHEREAS, the agency strives to increase operational efficiency by consolidating Demand Response north operations into a single leased facility.
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 a commercial lease amendment with Omega Media Properties, LP, a Texas limited partnership for the addition of parking area and remodeling of office building spaces at 817 W. Howard Lane, Austin, Travis County, TX 78728 concurrent with the original lease base period of three (3) years, with three (3), 1-year renewal options, for an increase of $4,007,249, resulting in a new total not to exceed amount of $8,367,406.end
____________________ Date: ____________________
Secretary of the Board
Becki Ross