Explanation
In December 2006, the City purchased 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 five 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 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 2010 funding for building operations, for the term May 1, 2010 through April 30, 2011, is $925,000.00 which is the same funding level provided for the 2009-2010 term. The funding includes $240,366 for payment of Paradigm Properties of Ohio, LLC for building management, $634,634 for payment of building operating expenses, and a contingency of $50,000 for any unforeseen and unbudgeted building expenses. Any expenditure from the contingency amount will require prior City approval.
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