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Home My WebLink AboutAgenda - 03-16-2010 - 4e 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 16, 2010 Action Agenda Item No. 4 -e SUBJECT: Lease Renewal- High Rock Solid Waste Convenience Center DEPARTMENT: Solid Waste Management- PUBLIC HEARING: (Y/N) No Sanitation & Asset Management & Purchasing Services ATTACHMENT(S): INFORMATION CONTACT: Gayle Wilson, Solid Waste Management Director, 968-2885 Renewal Agreement Pam Jones, AMPS Director, 245-2650 PURPOSE: To consider the renewal of the lease for the Solid Waste Convenience Center located on High Rock Road. BACKGROUND: The High Rock Road Solid Waste Convenience Center site is located on an eight-acre parcel owned by Elizabeth T. Walters. The initial lease agreement was executed on July 27, 2000, with renewals every five years (July 27, 2005). The lease agreement contains a rent escalator based on the United States Bureau of Labor Statistics through its Consumer Price Index. The present monthly lease amount is $265.55. The lease agreement also provides the County with the right of extending the lease for ten (10) additional five-year terms provided that the notice of the exercise is given in writing to the Owner not later than ninety (90) days prior to the date of termination of the then effective lease expiration. This renewal would be the second extension. The County's approach to collecting solid waste in unincorporated Orange County at five staffed Solid Waste Convenience Centers is expected to continue for the foreseeable future. Staff recommends the continuation of a five-year lease renewal period for this convenience center site. FINANCIAL IMPACT: It is recommended that the monthly rent be increased annually pursuant to the conditions of the initial lease. The average annual percentage increase for the present term is 3.5 percent. The estimated annual costs are: FY 2010-11 - $3,782; FY 2011-12 - $3,897; FY2012-13 - $4,033; and FY 2013-14 - $4,174; or an estimated total of $15,886 over a five (5) year period. The lease is managed through the Sanitation Division, which is a General Fund expense. RECOMMENDATION(S): The Manager recommends that the Board approve the lease renewal for the period of July 27, 2010 through July 26, 2015 at a monthly cost based on the escalator clause of the initial lease and authorize the Chair to sign the renewal agreement on behalf of the Board. 2 NORTH CAROLINA LEASE EXTENSION AGREEMENT ORANGE COUNTY THIS AGREEMENT made and entered into this day of 2010, by and between Orange County, a body politic and corporate of the State of North Carolina, (hereinafter called the "County"), and Elizabeth T. Walters (hereinafter called the Owner"); WITNESSETH: THAT WHEREAS, on the 5th day of April, 2000, the parties hereto entered into a certain lease ("Lease Agreement"), recorded in Book 2065 at Page 528, Orange County Registry, whereby the Owner leased to the County for a period of five (5) years the premises known and described as follows: Full Description Recorded in Book 2065 at Page 529, Orange County Registry AND WHEREAS, the parties have agreed to extend the period for which the said premises were leased for a five (5) year term that being the second of a possible ten (10), five (5) year terms. NOW THEREFORE, it is mutually agreed, that the premises described in the Lease Agreement above referred to are hereby leased unto the County for the additional term of five (5) years, beginning the 27th day of July, 2010 and ending the 26th day of July 2015. All of the terms, conditions, and covenants set forth in the above-described Lease Agreement apply to the additional period of this extension as fully as if set forth herein, save and except Owner acknowledges the timely receipt of County's notice of its intent to extend the Lease Agreement and waives any requirement of said Lease Agreement that such notice be in writing. IN TESTIMONY WHEREOF, the parties hereto have executed this Lease Extension Agreement on the day and date first above written. Elizabeth T. Walters, Owner Attest: Clerk to the Board Valerie Foushee, Chair Orange County Board of Commissioners [SEAL]