Agenda - 05-15-2012 - 5d - Laserfiche WebLink

Browse Search

2 The term of this lease shall be for an initial term of ten (10) years commencing on July 1, 2012. The lease shall automatically renew for an additional term of ten (10) years unless notice of termination is provided in writing by either party at least two (2) years prior to the lease termination date. Termination of the lease by either party within the initial 10 years shall constitute a breach of the lease. 2. Guaranteed Minimum Rental. The re-negotiated lease cost would be $450 per month. Also, effective on the first day of each Lease Year after the first Lease Year ("Adjustment Date"), the monthly lease cost will be increased annually by Twenty Dollars ($20) per month. The present lease payment is the lowest of the payments paid to both the Walnut Grove Church Road ($350) and Bradshaw Quarry Road ($400) property owners and the lease term of these other leases is five (5) years and not ten (10) years. 3. Right of First Offer to Purchase and Right of First Refusal. A clause is included to give the County Right of First Offer to Purchase and Right of First Refusal. The County's approach to collecting solid waste in unincorporated Orange County through staffed Solid Waste Convenience Centers will continue for the foreseeable future and will incur increased demands once the Orange County Municipal Solid Waste Landfill closes. Therefore, staff recommends the approval of the re-negotiated lease. The property owner has agreed to an initial first year lease cost of $5,400 per year ($450 per month), with annual escalated lease costs of $20 per month thereafter. It should be noted that staff will continue to cooperate with Ms. Walters in the long time practice of allowing the grazing of livestock on the portion of the leased property not actively utilized by the SWCC. FINANCIAL IMPACT: The lease renewal includes a rent increase of $155.84 per month (from $294.16 to $450) for the initial one-year, with annual escalated lease costs per month of $20 thereafter. This represents an additional $29,500.80 in rental costs over the full ten-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 that the Board approve the lease renewal for the period of July 1, 2012 through June 30, 2022 at a cost of $450 per month for the initial first year, with annual escalated lease costs per month of $20 thereafter, and authorize the Chair to sign on behalf of the Board.