Explanation
In December 2006, the City purchased the building at 1111 East Broad Street (now the Jerry Hammond Center, "JHC"), as authorized by Ordinance No. 1005-2006, and passed by City Council on June 8, 2006. Pursuant to the terms of the purchase agreement, the City assumed a Facility Management Agreement ("FMA") for the professional management of the building and grounds that had five years remaining on its term. Paradigm Properties of Ohio, LLC (Paradigm), per Ordinance 0479-2008, is the company currently providing building management services under the FMA. This legislation authorizes funding for the fourth year of the four year FMA contract.
The FMA sets the annual building management fee and details the duties of the management company in the oversight of the daily building operations and maintenance of the JHC, the direct payment of all operating expenses except utilities (paid directly by City), and establishes standards for procuring services, preparing RFP's and soliciting bids for outside maintenance and repair services, and requires certain accounting and reporting procedures for all expenditures of building operating funds. The terms of the FMA require the management company to establish and maintain a separate JHC building operating account from which all building services are paid. Per the terms of the FMA, each August the management company prepares and submits to the City an annual building operating budget projecting building operating expenses for the next contract year.
The 2011 funding for building operations, for the term May 1, 2011 through April 30, 2012, is $930,000.00. The funding includes $246,786.00 for payment of Paradigm Properties of Ohio, LLC for building management, $633,010.00 for payment of building operating expenses, and a contingency of $50,204.00 for any unforeseen and unbudgeted building expenses. Any expenditure from the contingency amount will require prior City approval.
Paradigm's Contract Compliance Number is 311609350; expiration date 03/25/2012.
Fiscal Impact: This ordinance authorizes the expenditure of $930,000.00 for 2011 - 2012 building operating expenses to Paradigm Properties of Ohio, LLC, and includes a $50,204.00 contingency for unforeseen building expenses and repairs. The funds have been appropriated for this purpose and are available in the Property Management Fund, fund 294, formerly known as the 1111 East Broad Street Operations Fund.
Title
To authorize the Director of Finance and Management to establish a purchase order for the expenditure of $930,000.00 from the Property Management Fund for payments to Paradigm Properties of Ohio, LLC for the fourth year of a Facilities Management Agreement for the Jerry Hammond Center. ($930,000.00)
Body
WHEREAS, it is necessary to authorize the expenditure of $930,000.00 from the Property Management Fund (fund 294, formerly known as the 1111 East Broad Street Operations fund) to provide payments to Paradigm Properties of Ohio, LLC for the fourth year of a four-year term building maintenance service contract for 1111 East Broad Street, known as the Jerry Hammond Center, for payment of operating expenses for the building, except utilities; and
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director is authorized to establish a purchase order to make payments for the continuance of the Facilities Management Agreement with Paradigm Properties of Ohio, LLC, for the fourth year of a of a four year term, for the period May 1, 2011 through April 30, 2012.
SECTION 2. That the expenditure of $930,000.00, or so much thereof as may be necessary, be and is hereby authorized and approved from the Property Management Fund as follows:
Dept./Div.: 45-07
Fund: 294
Subfund: 001
OCA: 294001
Object Level 01: 03
Object Level 03: 3370
Amount: $930,000.00
SECTION 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.