Agenda - 06-24-2008-4aa - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 24, 2008 Action Agenda Item No. ~- - C,?q SUBJECT: Releasing of Budgeted Funds for Rent to the NC Department of Motor Vehicles DEPARTMENT: Purchasing and Central Srvcs. PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Pam Jones (919) 245-2652 PURPOSE: To consider releasing funds to the NC Department of Motor Vehicles (DMV) for a portion of the rent at the DMV site at Carrboro Plaza. BACKGROUND: The State of North Carolina has previously indicated it will provide only one Driver License office per County. Orange County provided space for a second office in the southern portion of the County for many years prior to the initial lease at Carrboro Plaza in 1986. Over the years, the client traffic load caused this office to be significantly over-crowded. In FY 2006-2007, the State signed a new lease for larger office space located a few doors down from the space leased by the County and moved the operation. At that time, the County's lease obligation ended, although the State requested the County continue to contribute funding each year equivalent to the 2006-2007 lease amount (approximately $16,600). The State has alluded that failure by the County to continue supporting partial. funding for the space could make the office subject to cutback and potential closure of the office, which would leave the County's largest population center without local services. Other area service centers for the DMV include one in Hillsborough, two in Durham and one in Siler City. The Board is asked to release funds currently budgeted to support the lease and authorize the staff and attorney to formulate documentation to support the transaction. Further, the Board is asked to authorize this transaction for future years based on the following: 1) Annual contribution shall not exceed $16,600; and 2) Should funding not be approved for whatever reason, the agreement would terminate. FINANCIAL IMPACT: The $16,600 in funds currently budgeted in the Central Services-Rents account is equal to the amount of the last year for which the County was responsible for paying the rent. Should the Board authorize the expenditure, the amount would not be increased without further approval by the Board. RECOMMENDATION(S): The Manager recommends that the Board: 1) Authorize the release of $16,600, currently budgeted in the Central Services-Rents account, to support a portion of the rent paid by the State of North Carolina for a Driver License Office at Carrboro Plaza; 2) authorize the continued contribution of this amount and no more for future years during which the amount may be included in the County's budget;