Title
CATS Property Management Contract
Action
Action:
A. Approve a contract in the amount of $3,071,832 with NAI Southern Real Estate for property management services for a term of three years, and
B. Authorize the City Manager to renew the contract for two, one-year terms with possible price adjustments and to amend the contract consistent with the purpose for which the contract was approved.
Body
Staff Resource(s):
John Lewis, CATS
Allen Smith, CATS
Explanation
* The city uses the Charlotte Transit Center (CTC) as the main terminal and transfer point for Charlotte's public transit system.
* Property management services are needed at the CTC to manage leased spaces and CATS staff spaces.
* The contracted property management services include maintenance, janitorial, landscaping, and CTC tenant leasing.
* On June 18, 2020, the city issued a Request for Proposal (RFP); two responses were received.
* NAI Southern Real Estate best meets the city's needs in terms of qualifications, experience, cost, and responsiveness to RFP requirements.
* Under the contract:
* NAI Southern Real Estate will be reimbursed up to $872,207 annually for expenses paid on behalf of CATS to operate the CTC;
* The annual management, staff, and administrative fees are estimated to be $143,097; and
* Any commissions due to NAI Southern Real Estate for new or renewed leases will be paid in accordance with the contract. The annual commission rates are within industry standards and are estimated at $8,640.
* Total annual expenditures are estimated to be $1,023,944.
Charlotte Business INClusion
The city negotiates subcontracting participation after the firm is selected for this services contract (Part C: Section 2.1(h) of the Charlotte Business INClusion Policy). NAI Southern Real Estate has committed $1,586,263 or approximately 51.60% of the total contract amount to the following certified firm(s):
* Johnson Group (WBE) ($1,518,067) (Janitorial Services)
* Republic Electric (MBE) ...
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