Agenda - 10-06-2009 - 4e - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 6, 2009 Action Agenda Item No. ~- ' e SUBJECT: Termination of Lease with State for Space at the Moody Buildin DEPARTMENT: Asset Management & PUBLIC HEARING: (Y/N) No Purchasing Services ATTACHMENT(S): INFORMATION CONTACT: Keller Letter to County Managers Pam Jones, 919-245-2652 Mutual Termination of Lease Agreement PURPOSE: To approve the termination of a lease between the County and the State of North Carolina for space used by Probation and Parole Intensive Unit at the Moody Building in Carrboro. BACKGROUND: The FY 2009-10 state budget approved by the North Carolina General Assembly (Senate Bill 202, Session Law 2009-451) included provisions shifting the State's responsibility to provide space for the Probation and Parole Intensive unit to counties. Prior to the passage of this legislation, the County was not responsible for providing space for the nine (9) Intensive Probation and Parole officers serving Orange County. The impact of this action on Orange County is as follows: 1. The State currently subleases space in the Moody Building, 103 Laurel Avenue, Carrboro for five (5) of its Intensive team members at a cost of $19,183 per year. The State will cease to honor the rent obligation to the County effective October 31, 2009. The County's revenue loss for the remaining portion of FY 2009-10 will be approximately $12,792. 2. The State has a direct lease with a private owner for space in Hillsborough to house four (4) Intensive team members. According to the legislation, the County must: a. Assume financial responsibility for the lease; or b. Relocate the staff to a County-owned facility. Staff is working with the Probation/Parole supervisor to relocate the staff from the privately leased facility in Hillsborough to space currently provided by the County to Probation and Parole in Hillsborough and Carrboro. FINANCIAL IMPACT: The County will receive approximately $6,391 of the $19,183 budgeted as revenue for FY 2009-10. This will leave a shortfall of budgeted revenue in the amount of $12,972 that will not be paid by the State. The sublease with the State was approved through June 30, 2011, thereby making the total lost revenue through the remaining lease period approximately $32,000. RECOMMENDATION(S): The Interim Manager recommends the Board approve the termination of the lease between the County and the State of North Carolina for space used by Probation and Parole Intensive Unit at the Moody Building in Carrboro; and authorize the Manager to sign the letter of "Mutual Termination of Lease Agreement".