TO: Chair and Members of the Board
FROM: Samuel A. May, Executive Director
DATE: February 19, 2019
Title
RESOLUTION: APPROVING A THIRD AMENDMENT TO THE AGREEMENT WITH ADVANCED ASSET MANAGEMENT TO PROVIDE FOR OWNER REPRESENTATIVE SERVICES FOR ACE PLAZA IMPROVEMENTS
BACKGROUND: The MCRA asked Jim Nardi, property manager, Advanced Asset Management (AAM) to assist the MCRA with the coordination and oversight of the Ace Plaza improvement project which includes, but is not limited to, stormwater pipe lining, asphalt and striping of parking lot, sidewalk repairs/painting, glass replacements, mansard repairs, façade and mansard painting, stonework on columns, lighting, signage, and landscaping work.
A review of MCRA’s agreement with AAM specifies that the Property Manager will act on behalf of the MCRA as an owner’s representative administering and/or providing all related services which may include, but not be limited to:
• Leasing, rent collections, lease terminations
• General property management
• Financial management/property accounting
• Janitorial, trash removal and recycling
• Management of operations, vendors, and maintenance
• Oversight of maintenance contracts, contractor performance and billings
The intent of the agreement was for the property manager to serve as an owner’s representative for routine, customary services and repair work on projects of limited scope and size. Compensation for such falls under the agreement’s fee schedule for Commercial Property Management (see Exhibit B attached).
However, MCRA staff and the property manager acknowledge and agree that the improvements to the Ace Plaza go beyond the scope of the agreement and fee schedule. Therefore, the MCRA staff recommends consideration of separate compensation for the more intense owner representative services. MCRA staff is of the opinion that Mr. Nardi is highly qualified to serve in the capacity needed as he has been the property manager for 12 years and has in-depth knowledge of the plaza and the project being undertaken, and he possesses the skills required to see the project through from start to completion. A copy of Mr. Nardi’s proposal is attached.
RECOMMENDATION: Approval of $14,500 lump sum fee payable in two increments: 50% to be paid after the sidewalk and parking lot paving is completed; remaining 50% at time of project completion.
FISCAL IMPACT: $14,500 to be charged to #340-0510-512.69-10 Ace Hardware Plaza Facade
CONTACT PERSON: Samuel A. May, Executive Director