HomeMy WebLinkAboutAgenda - 02-29-2000-8gORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: February 29, 2000
Action Agenda
Item No. J
SUBJECT: Lease Agreement for Relocation of the High Rock Road Solid Waste
Convenience Center -
DEPARTMENT; Public Works/Sanitation PUBLIC HEARING; (Y!N) No
ATTACHMENT(S~: INFORMATION CONTACT:
Wilbert McAdoo, Director of Public Works
TELEPHONE NUMBERS: ext. 2627
Hillsborough 732-8181
Chapel Hill 968501
Durham 688-7331
Mebane 336-227-2031
PURPOSE:
To consider the inclusion of a rent escalator clause in the lease agreement for the relocation
site of the High Rock Road Solid Waste Convenience Center.
BACKGROUND
At the November 16, 1999 meeting, the Board of Commissioners approved:
• the relocation of the existing Solid Waste Convenience Center from 6906 High Rock Road to
7001 High Rock Road
• the termination of Saddle Club Road lease effective December 1, 1999
• the execution of a new High Rock Road lease agreement to replace the existing High Rock
lease; new lease to coincide with the termination of the existing site lease and
• the initial monthly lease amount to be $ 200.
Carl Walters, Jr. is the properly owner of all three properties.
The initial High Rock Road lease was executed in 1987 and the Saddle Club Road lease in
1989. Mr. Walters had indicated his desire for the new High Rock Road agreement to mirror the
more recently executed Saddle Club Road agreement. The Saddle Club Road agreement
contained a rent escalator provision; however, the existing High Rock Road agreement does
not. Since the existing High Rock Road lease does not contain an escalator clause, Board
approval would be required to include such provision. The staff inadvertently overlooked this
requirement in the preparation of the November 16 agenda abstract.
The rent escalator provision acts as a cost of living adjustment and the percentage increase is
determined by utilizing the applicable indices determined by the United States Bureau of Labor
Statistics through its Consumer_Price Index. Adjustments would be made annually based on the
effective date of the_commencement of lease notice.
Mr. Walters has agreed to the provision, which would allow for the renewal of such lease for ten
additional consecutive five-year terms (50 years). However, either the County or The Walters
would be able to terminate the lease upon submittal of a 90-day written notice.
The leases for the other Solid Waste Convenience Centers do not contain a rent escalator
clause given that they do not contain an automatic renewal provision and the term is only for a
five-year period.
FINANCIAL IMPACT:
The proposed initial lease amount is $200.00 per month or $2,400.00 per year. The annual
adjustment would be variable based on the Consumer Price Index.
Avers a Perce t C an es er the Consumer Price Index
1995 2.8 1996 3.0 1997 2.3 1998 1.6
Funds are currently allocated in the operating budget to accommodate the proposed lease
amount.
RECOMMENDATION(S): The Manager recommends that the Board approve the inclusion of
the rent escalation clause in the new High Rock Road lease agreement and authorize the Chair
to sign the lease on behalf of the Board.