HomeMy WebLinkAboutAgenda - 05-20-2008-4wORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 20, 2008
Action Agenda
Item No. L{' ~ V~/
SUBJECT: Lease Renewal: Community School for People Under Six
DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Lease Renewal Pam Jones (919) 245-2652
PURPOSE: To consider approving cone-year renewal of a lease for space used as a daycare
at the Northside Center, Chapel Hill by Community School for People under Six.
BACKGROUND: The Community School for People Under Six has occupied space at the
Northside facility on Caldwell Street Extension in Chapel Hill since 1983. The attached lease
renewal will extend the lease for one year. Historically, the County has exercised afive-year
renewal for the daycare space, however, the County and the Chapel Hill Carrboro City Schools
(CHCCS) may choose to enter into discussions in the near term about this site as a potential
school location for the District. Due to the long-term relationship with the Community School,
staff would recommend that discussions with the CHCCS Board of Education also consider the
needs of Community School for People Under Six. The Board will recall that in 1999 the
Community School designed and paid for an approximately 2,000 square foot expansion of the
building at an estimated $150,000 in order to provide sufficient capacity for the growing number
of families that needed this type of service.
The one-year lease renewal is recommended under the following terms and conditions:
• The daycare is responsible for cleaning its space.
• Rent is provided as in-kind support, at an estimated value of $8,000 annually for
approximately 752 square feet of County space. The daycare sought approval in 1996 from
the County to add approximately 2,000 square feet to the building. The additional was
funded entirely'by the Community School for People Under Six and was completed in 1999.
• If the daycare is able to access funds for utilities cost from the State or other sources, by
terms of the lease, it is to .pay its pro-rata share of the building's utilities. If no funds are
available, the County continues to pay the utilities for the daycare space.
• 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.
• The daycare maintains insurance on personal property located within the facility.
FINANCIAL IMPACT: Operational costs are incurred by the County for the upkeep of the
building, which now has limited use for County programs. Heretofore, no revenue has been
derived from this lease.
RECOMMENDATION(S): The Manager recommends that the Board approve cone-year lease
renewal for space at the Northside facility in Chapel Hill for use as a daycare by Community
School for People under Six; and to keep the administrators of Community School for People
Under Six apprized of the discussions with the Chapel Hill-Carrboro City Schools regarding any
future use of the site that might impair its use by the Community School; and authorize the
Chair to sign the lease renewal on behalf of the Board.
3
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:
1. The lease agreement will be continued for a period of one year commencing on July 1, 2008 and
ending at 12:00 midnight on the day of June 30, 2009.
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 ,2008.
County Of Orange
BY:
Barry Jacobs, Chair
Orange County Board of Commissioners
Attest:
Community School for People Under Six
By:
Donna S. Baker, Clerk to the Board
Witness:
Printed Name and Title