Agenda - 06-02-2009 - 4v - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 2, 2009 Action Agenda Item No. ~-- - V SUBJECT: Lease Renewal -Bradshaw Quarry Solid Waste Convenience Center DEPARTMENT: Solid Waste Management- PUBLIC HEARING: (Y/N) No Sanitation Division ATTACHMENT(S): Lease Renewal Agreement INFORMATION CONTACT: Gayle Wilson, 968-2885 PURPOSE: To consider the renewal of the lease for the Solid Waste Convenience Center located on Bradshaw Quarry Road. BACKGROUND: The Bradshaw Quarry Road Solid Waste Convenience Center site is located on a one-acre parcel owned by Thoms Creek, LLC. The initial lease agreement was executed in 1989, with renewals every five years. Since 2004, the County has leased this property for $3,600 per year ($300 per month). The County's approach to collecting solid waste in unincorporated Orange County at staffed Solid Waste Convenience Centers will continue for the near future. Therefore, staff recommends the continuation of a five-year lease renewal period for this convenience center site. In the event an alternative manner of solid waste collection is identified before the end of the lease period, the lease agreement includes a clause that permits either party to terminate the lease with 90 days notice. The property owner has agreed upon a lease renewal cost of $4,800 per year ($400 per month). The closure of the Bradshaw Quarry Center is under consideration as a budget reduction measure. If this reduction is approved, the lease will be terminated per the termination clause. The Center would be slated for closure on September 20, and the site returned to its original state by October 1. FINANCIAL IMPACT: The lease renewal includes a rent increase of $100 per month (from $300 to $400) for the five-year renewal term. This represents an additional $6,000 in rental costs over the full five-year term. The funds necessary to cover the annual lease payments would be included in the each fiscal year's departmental budget request. RECOMMENDATION(S): The Manager recommends the Board approve the lease renewal for the period of July 1, 2009 through June 30, 2014 at a cost of $400 per month and authorize the Chair to sign on behalf of the Board subject to final review by staff and the County Attorney and approval of the FY 2009-10 budget.