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Home My WebLink AboutAgenda - 10-06-2009 - 4eORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 6, 2009 Action Agenda Item No. ~- ' e SUBJECT: Termination of Lease with State for Space at the Moody Buildin DEPARTMENT: Asset Management & PUBLIC HEARING: (Y/N) No Purchasing Services ATTACHMENT(S): INFORMATION CONTACT: Keller Letter to County Managers Pam Jones, 919-245-2652 Mutual Termination of Lease Agreement PURPOSE: To approve the termination of a lease between the County and the State of North Carolina for space used by Probation and Parole Intensive Unit at the Moody Building in Carrboro. BACKGROUND: The FY 2009-10 state budget approved by the North Carolina General Assembly (Senate Bill 202, Session Law 2009-451) included provisions shifting the State's responsibility to provide space for the Probation and Parole Intensive unit to counties. Prior to the passage of this legislation, the County was not responsible for providing space for the nine (9) Intensive Probation and Parole officers serving Orange County. The impact of this action on Orange County is as follows: 1. The State currently subleases space in the Moody Building, 103 Laurel Avenue, Carrboro for five (5) of its Intensive team members at a cost of $19,183 per year. The State will cease to honor the rent obligation to the County effective October 31, 2009. The County's revenue loss for the remaining portion of FY 2009-10 will be approximately $12,792. 2. The State has a direct lease with a private owner for space in Hillsborough to house four (4) Intensive team members. According to the legislation, the County must: a. Assume financial responsibility for the lease; or b. Relocate the staff to a County-owned facility. Staff is working with the Probation/Parole supervisor to relocate the staff from the privately leased facility in Hillsborough to space currently provided by the County to Probation and Parole in Hillsborough and Carrboro. FINANCIAL IMPACT: The County will receive approximately $6,391 of the $19,183 budgeted as revenue for FY 2009-10. This will leave a shortfall of budgeted revenue in the amount of $12,972 that will not be paid by the State. The sublease with the State was approved through June 30, 2011, thereby making the total lost revenue through the remaining lease period approximately $32,000. RECOMMENDATION(S): The Interim Manager recommends the Board approve the termination of the lease between the County and the State of North Carolina for space used by Probation and Parole Intensive Unit at the Moody Building in Carrboro; and authorize the Manager to sign the letter of "Mutual Termination of Lease Agreement". 0~ North Carolina I)epaxtment o~ C'oI•rection ?1~! West Janis tiueet • 4~t)i :•1950 • Raleigh. North Carlilina 27Ci~i?-4~U1 Fhone: {919j 716-17t)0 ~ l~ ix: (9191716-79'1 Beverly Eaves C'erdue ;alvin W. Keller, Jr. Governor August 25, 2009 Secretary Dear County Managers: The state budget passed by the General Assembly (Senate Bi// ?02, Session Law 2009-451) included a special provision that reduces the Department of Correction, Division of Community Corrections' budget in lease payments and shifts the funding responsibility to the counties. The spedat provision (Section 19.19) is as follows: G.S. i5-209 Accommodatfons for Probation Offices {a) The county commissioners in each county in which a probation office exists shall provide, in or near the courthouse, suitable office space for those probation officers assigned to the county who have probationary caseloads and their administrative support. This requirement does not include management staff of the Department of Correction, nonprobation staff, or other Department of Correction employees. _ _{b) If a_county is unable to provide the space required under subsection (a) of this -- section for any reason, it may elect to request that the Department of Correction lease space for the probation office and receive reimbursement from the county for the leased space. If a county fails to reimburse the Department for such leased space, the Secretary of Correction may request that the Administrative. Office of the Courts transfer the unpaid amount to the Department from the county's court and jail facility fee remittances. Staff witfi the North Carolina Association of County Commissioners provided information regarding this mandate to county managers, finance officers and commissioners in its Legislative Bol%tin X09 28 dated August 6, 2009. This is to advise that the following transition plan has been developed to ensure compliance with the statutory mandate. County Provided tease Space: Effective October 31, 2009, the Department will stop payments to the counties that provide (eased office space occupied by probation officers and their administrative support staff, which now must be funded by the counties pursuant to the statutory mandate. Co-located County Provided Lease Space: Currently some counties provide leased office space that probation ofFlcers and administrative support staff occupy, which now must be funded by the counties pursuant to the statutory mandate, as well as management and their administrative support staff which is not covered under the special provision. A determination will be made as to the amount this Department will continue to pay effective October 31, 2009 for the staff not covered under the specal provision. Private Vendor Provided Lease Space: in many of the counties, the Departrnent has private vendor provided lease space for probation officers and their administrative support. In this ~~ r~ An Gyual C)pportunity i Allirmativr Action T~mployer 3 County Managers August 25, 2009 Page 2 situation, counties must decide whether to "take over" the tease and allow the Division of Community Corrections to remain at the same location or "to move" the operation to another location. It is this Department's goal to accomplish this no later than December 31, 2409. Within the next few weeks, Ron Moore, Real Property Agent, DOC Departmenta{ Purchasing & Services will: Provide each county manager with detailed information specific to their county; Schedule a three way conference call between Mr. Moore, the county manager, and the appropriate Judicial District Manager with the Division of Community Corrections to open the dialogue; and Provide any assistance needed with the transition plan. Thls was a particularly difficult legislative session for a!1 of us, and I recognize this places a greater financial burden on your county. We appreciate the excellent reiatlonship that our agency has with you, and we look forward to maintaining that relationship in the future. Your assistance, cooperation, and willingness to provide accommodations to our staff are greatly appreciated. If you have any questions about this matter, please fees free to contact Sandra Shearin, DCC-Chief of Administrative Services at (9-19)-T16-31.16. Sincerely, Alvin W. Keller, Jr. AWKjr:SP/jk cc: Jennie Lancaster, Chief Operating Officer Tracy Litt{e, Deputy Secretary Frank Rogers, Deputy Secretary Timothy D. Moose, DCC Director 3udicial Division Administrators Judicial District Managers John Webb, Manager -Planning & Leasing -Department of Administration ~~ .~ ~,. North Carolina Department of Correction Division of Departmental Purchasing $ Services 2020 Yonkers Road 4227 MSC Raleigh, NC 27b99-4227 Phone: (919) 716-3250 Fax: (919) 716-3983 or (919) 716-3984 Beverly Purdue, Governor August 31, 2009 Frank Clifton, County Manager Orange County PO Box 8181 Hillsborough, NC 28139 Alvin Keller, Secretary RE: Mutual Termination of Lease Agreement -for +/- 1,236 Square Feet of Office Space Located at 103 Laurel Avenue, Hillsborough, Orange County, NC Dear Mr. Clifton: Due to the"recent amendments-to NCGS-15-209-(Accommodations_for Probation Offices) and with the _ .... _. understanding that the County will continue to provide suitable office space in accordance with State Property "" "" "" guidelines, the State of North Carolina would like to terminate the above-referenced lease agreement by mutual termination effective October 31, 2009. Please indicate the County's acceptance of this mutual termination by signing below, Please return this letter via fax 919-71b-3984 and mail original to the North Carolina Department of Correction, 4227 MSC, Raleigh, NC 27699-4227 Attn: Ronald R Moore Should you have any questions or concerns, please feel free to contact our leasing agent, Ronald Moore, at 919- 716-3279. The North Carolina Department of Correction appreciates your service to our organization. Sincerely, Barbara Baker, Chief 1?rocurement and Budget Officer Upon concurrence and acceptance Signature Date An Equal OpportunitylAffirmat(ve Aodon Empbyer a~