Travis County Commissioners Court
February 7, 2012 (Agenda)
Item 16
Number 16.
consider and take appropriate action on request to modify the property management agreement with sentinel lavaca management corporation associated with the 700 lavaca building.
>> good morning, roger el khoury, director
>> [indiscernible] facilities department.
I discussed, I negotiated this deal with sentinel and was
>> [indiscernible] and one of the -- one of the main drive to it right there is the reduction, you know, for about like $150,000 for additional 15 months.
it is their desire to continue to work with us and mainly it's because the -- of the leases.
when we bought the building, there were about 30 leases.
and now as we speak right now, we have
>> [indiscernible] leases, by the time this proposal take effect, you know, which is on sent 1st, if the court -- on September 1st if court approve, we will have 11 leases in the building.
so this contribute to the negotiation terms, that's why the dollar amount went down from 20,000 per months to 10,000 per months for the base term.
now, also, we included a -- an option on the base term if we continue, you know, with sentinel after the 15 months, then we will reduce their $10,000 per month to nine thousand dollars per month because some of the leases also is going to drop.
this is how we approach that.
also if you look at your backup right there, I made clear to sent nil.
you have it in the backup, it does say that -- that it would continue to provide a vital role in the management of the building at the same level of diligence and cooperation as we have covered for the last three years.
>> my question is what specific services are they going to continue with?
are they discontinuing any -- what services are going to be provided or not provided under this reduction?
just a -- just the level of performance
>> [indiscernible] services.
>> as a member of the core team.
we discussed this.
if you remember the agreement, separate kind of the costs of operating the building and sentinel's overlay.
so all of the costs of operating the building, all of the people that work for sentinel, all of the people that clean, repair, all of those things, we pay for.
whatever that cost is.
and then what we do is sentinel, through their
>> [indiscernible] system and kind of overriding everything, they allocate those costs.
and chargeback to the private sector clients and then we, of course, pick up the rest for the building.
so the part that we're talking about here is really that sent -- sentinel overlay.
everything else, with running the building, we are paying for and then they are allocating back.
one of the big services that they run is the ary
>> [ phonetic ] system which is a real estate financial system that allocates all of those things, they have that system and they are running off of that and the charge-back is that.
but in terms of maintaining the building, cleaning the building, doris who we've all agreed has done a really fine job, that's all in place.
so it's that overlay.
and roger is right, when we first started, first of all, we really didn't know what it was going to be.
and sentinel didn't know.
it was sorts of a new venture for both of us.
it was, you know, we looked at it as one year.
so everyone kind of hedged their bets on that first year.
now we have some experience under it.
they do, so it is -- it is the -- it is the feeling of the core team, because we did meet on this, is that -- is that we should reduce -- that it is right for us to pay less than we have here in -- in -- I mean that --
>> [indiscernible]
>> there you --
>> the bottom line is right now it's being -- it's being maintained as a class a building.
it will continue to be.
if you will approve this today, it doesn't approve the amendment to the contract, this is just getting your okay to go forth and modify the contract to incorporate these new numbers into it in whatever language we feel is appropriate.
>> that would be the only change, just that amount.
>> these are the terms that we negotiated with them, though.
>> correct.
>> okay.
>> I move approval.
>> second.
>> any discussion on the motion?
all in favor?
that passes by unanimous vote.
thank you all very much.
>> thank you.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
Subscribe for updates