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HomeMy WebLinkAboutAgenda - 02-03-2004-9cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 3, 2004 Action Agenda Item No. q - SUBJECT: Authorization to Use County Property and Terms of Lease Transition for Alternative School Temporary Site DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: Pam Jones, (919) 245-2652 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider permitting the Orange County Board of Education temporary use of County property located on the southeast corner of Tryon and Hassel Streets, Hillsborough for use as an alternative school; authorizing the County Attorney and Purchasing Director to prepare a lease between Orange County and the Orange County Board of Education for property necessary for the alternative school; and authorizing the Purchasing Director to negotiate a lease transition to the Orange County Board of Education for the leased modular unit currently rented by the County from GE Capital at this location. BACKGROUND: As the Board will recall, the County leased a modular unit from GE Capital- Modular Space in which to house workers dislocated during the Whiffed HVAC replacement and renovation project. The project is now completed and the migration of workers back to their permanent space will be completed by the end of January, thereby eliminating the need for the modular unit. The Orange County Board of Education (OCBOE) has approached the County regarding the potential use of the modular building as a temporary site for the alternative school that it is mandated to provide. The County was granted permission by the Town of Hillsborough to maintain the building on the Tryon Street site for 15-18 months, beginning October 22, 2002. Assuming the Town of Hillsborough approves the OCBOE's petition to allow the modular unit to remain in its existing location, the Board is requested to authorize the use of County property until a permanent site is provided for the alternative school, but not later than the date of expiration of the Town of Hillsborough's permit for the modular unit. 2 Suggested terms for the use include, but are not necessarily limited to the following: • Effective February 1, 2004, the existing lease terms between Orange County and GE Capital would be transferred to a lease citing like terms, but would be re-written between GE Capital and the OCBOE, • OCBOE would be responsible for the utilities and any maintenance (including cleaning) on the building that may be required by the lease. OCBOE will also ensure that the leased land is kept clean and debris free, although Orange County will continue to mow grass on the site. • Pursuant to the terms of the lease, GE Capital must make all interior modifications that may be required by the School program, OCBOE will work directly with GE Capital to effect those reconfigurations and will be responsible for resulting costs. GE Capital has indicated that most reconfigurations of interior space can be accomplished in no more than two weeks, • OCBOE would provide insurance coverages including, but not limited to: • Property and liability insurance; and • Liability insurance, which shall name the County of Orange as an additional insured, covering exposures that may be created by the School's presence on County property. • Up to six (6) parking spaces will be included in the leased land for teacher and staff associated with the School. Due to the significant shortage of parking already in existence for citizens and employees of the Whitted Building, students will be prohibited from parking at this location. • OCBOE will be responsible for all permits required by the Town of Hillsborough allowing the continued use of the modular unit. County Commissioner approval is contingent upon permit approval by the Town, The lease shall expire no later than contemporaneously with the expiration date on the Town's permit. • Orange County took special care to ensure that neighbors around the Whitted Building were kept informed about the important aspects of proposed renovations, including the purpose of the modular unit, estimated duration, etc. OCBOE is requested to provide similar information to the neighbors to ensure their understanding of program related issues, duration of program, etc, Upon Board of Commissioner approval of this concept, a lease articulating these conditions will be prepared and presented to the Board for formal action at their February 17 meeting. Note that this action authorizes the use of the land for the Alternative School and the action on February 17 formally approves a lease document that incorporates the aforementioned conditions and others that may be necessary. This will allow the OCBOE an opportunity to schedule and complete the interior reconfiguration work needed prior to their anticipated open date of March 1, which would not be the case if the authorization to use the land was delayed. The Board is further requested to authorize the Purchasing Director to negotiate the termination of Orange County's lease with GE Capital and to facilitate to the extent required, the re- issuance of a new lease with like terms with the OCBOE. The Board should note that the terms of the County's lease with GE Capital requires the County to pay $5,560 for tear down and return costs. In the absence of direction to the contrary, Orange County will remain responsible for that amount at the expiration of the agreement between Orange County and the OCBOE. Removal costs to GE Capital in excess of $5,560 for whatever purpose, would be the responsibility of the OCBOE. FINANCIAL IMPACT: The lease payments made by the County in the monthly amount of $1,400 will cease January 31, 2004, Orange County would remain responsible for the $5,560 in tear down and return costs as cited in the lease.. The County's financial obligation for the units would cease effective February 1, 2004 under this proposal, RECOMMENDATION(S): The Manager recommends that the Board: 1. Authorize the use of County property by the Orange County Board of Education under the conditions cited above; and 2. Direct the County Attorney and Purchasing Director to prepare a lease between Orange County and the Orange County Board of Education reflecting the conditions cited here, as well as others that are deemed necessary, for approval by the Commissioners no later than February 17, 2004; and 3. Direct the Purchasing Director to negotiate termination of the existing lease with GE Capital and to the extent required, to facilitate re-issuance of a new lease with like terms between GE Capital and the Orange County Board of Education.