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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: March 16, 2010 <br /> Action Agenda <br /> Item No. 4 -e <br /> SUBJECT: Lease Renewal- High Rock Solid Waste Convenience Center <br /> DEPARTMENT: Solid Waste Management- PUBLIC HEARING: (Y/N) No <br /> Sanitation & Asset <br /> Management & Purchasing <br /> Services <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Gayle Wilson, Solid Waste <br /> Management Director, 968-2885 <br /> Renewal Agreement Pam Jones, AMPS Director, 245-2650 <br /> PURPOSE: To consider the renewal of the lease for the Solid Waste Convenience Center <br /> located on High Rock Road. <br /> BACKGROUND: The High Rock Road Solid Waste Convenience Center site is located on an <br /> eight-acre parcel owned by Elizabeth T. Walters. The initial lease agreement was executed on <br /> July 27, 2000, with renewals every five years (July 27, 2005). <br /> The lease agreement contains a rent escalator based on the United States Bureau of Labor <br /> Statistics through its Consumer Price Index. The present monthly lease amount is $265.55. <br /> The lease agreement also provides the County with the right of extending the lease for ten (10) <br /> additional five-year terms provided that the notice of the exercise is given in writing to the <br /> Owner not later than ninety (90) days prior to the date of termination of the then effective lease <br /> expiration. This renewal would be the second extension. <br /> The County's approach to collecting solid waste in unincorporated Orange County at five staffed <br /> Solid Waste Convenience Centers is expected to continue for the foreseeable future. Staff <br /> recommends the continuation of a five-year lease renewal period for this convenience center <br /> site. <br /> FINANCIAL IMPACT: It is recommended that the monthly rent be increased annually pursuant <br /> to the conditions of the initial lease. The average annual percentage increase for the present <br /> term is 3.5 percent. The estimated annual costs are: FY 2010-11 - $3,782; FY 2011-12 - <br /> $3,897; FY2012-13 - $4,033; and FY 2013-14 - $4,174; or an estimated total of $15,886 over a <br /> five (5) year period. The lease is managed through the Sanitation Division, which is a General <br /> Fund expense. <br /> RECOMMENDATION(S): The Manager recommends that the Board approve the lease <br /> renewal for the period of July 27, 2010 through July 26, 2015 at a monthly cost based on the <br /> escalator clause of the initial lease and authorize the Chair to sign the renewal agreement on <br /> behalf of the Board. <br />