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HomeMy WebLinkAboutAgenda - 06-22-1998 - 8vi ~, ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. ~~ ACTION AGENDA ITEM ABSTRACT Meeting Date: June 22, 1998 SUBJECT: Lease Renewal; Community School for People Under Six DEPARTMENT: PURCHASING AND Public Hearing: No CENTRAL SERVICES Budget Amendment Reqd? No ATTACHMENT(S): Renewal INFORMATION CONTACT: PAM JONES, ext. 2650 Telephone Number- Hillsborough 732-8181 Chapel Hill 967-9251 Mebane 227-2031 Durham 688-7331 PURPOSE: To consider extending the lease with Community School for People Under Six for five years with one five year renewal: BACKGROUND: The Community School for People Under Six has leased space from the County at the Northside facility on Caldwell Street Extension in Chapel Hill since 1983. In 1996 COMMUNITY SCHOOL FOR PEOPLE UNDER SIX received approval from the County to add on to our building. Unfortunately, the project was cost prohibitive and the Community School for People Under Six has spent the past year raising additional funds to build the project. Approximately $90,000 has been pledged by the Chapel Hill Training and Outreach Program. In return, the Community School for People Under Six has guaranteed 15 spaces for children in the Early Head Start program. The funding agency has requested a fifteen year guarantee for the 15 spaces. Such guarantee should correspond to the term of the lease. In order to maintain decision making flexibility for future Boards, however, the County has suggested as an alternative one five year term with one five year renewal. Community School For People Under Six has indicated this to be acceptable compromise to their funding agency. With the exception of the length of the renewal, the remaining conditions of the lease are the same as those for the other non-departmental agencies which the Board is considering as a separate item on this agenda. They are summarized below: • Each agency cleans their own space. • Although by terms of the lease, rent is provided as in-kind support, an estimated value is shown. The value and associated square footage for Community School for People Under Six is reflected on the spreadsheet attached to the earlier referenced agenda item for non-departmental agency lease renewals. • Each agency, by terms of the lease, is to pay their pro-rata share of the building's utilities. • Building maintenance is provided by the County for HVAC, plumbing and electrical systems. • Grounds care is provided by the County (the lease does not include maintenance of playground or other program related equipment. The daycare provides all maintenance for playground equipment since it is placed for the exclusive use of the daycare.); • Parking lot maintenance is provided by the County. • Each agency maintains insurance on their own personal property located within the facility. RECOMMENDATION: The Manager recommends that the Board approve a five year lease extension, with one five year renewal for space to be used as a daycare at the Northside Community Center, Chapel Hill by Community School for People under Six; and authorize the Chair to sign on behalf of the Board. LEASE AGREEMENT RENEWAL NORTH CAROLINA ORANGE COUNTY WHEREAS, a lease agreement was made and entered into as of the 15th day of November, 1983, by and between Orange County, LESSOR and the Community School for People Under Six, TENANT, for space to be used as a Day Care Center at the Southern Human Services Center, Chapel Hill, NC; WHEREAS, the LESSOR and the TENANT wish to renew the lease agreement as amended; NOW, THEREFORE, LESSOR and TENANT mutually agree to the following: The lease agreement will be continued for a period of five years commencing on July 1, 1998 and ending at 12:00 midnight on the day of June 30, 2003. The Tenant shall have the right to renew the lease for one additional five year term, provided the Northside Community Center remains a viable County facility. 2. Section 3, "Utilities" shall be modified to read as follows: Utilities: In the event TENANT's funding source will reimburse TENANT for utilities at the leased facility, the TENANT shall pay for the electricity and fuel for heat based on the following formula: Total square footage used by TENANT Divided by total usable square feet of the building where property is located Times the amount of electricity and fuel for heat bills received the COUNTY during the term of this lease for the building where the leased property is located. The COUNTY shall send the TENANT on a timely basis a statement itemizing such utility charges. Payment shall be due to the COUNTY within thirty (30) days of the date on such statements. The COUNTY shall pay for all water and sewer charges. 3. All other terms and conditions will remain the same. This agreed to the day of ,1998. COUNTY OF ORANGE BY: Margaret W. Brown, Chair Orange County Board of Commissioners ATTEST: Beverly A. Blythe, Clerk to the Board Community School for People Under Six By: Printed Name and title Witness: