Agenda - 06-27-2006-5w - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 27, 2006 Action Agenda Item No. 5-w SUBJECT: Lease Approval: Parks Operations Base DEPARTMENT: Purchasing and Central PUBLIC HEARING: (Y/N) No Services ATTACHMENT(S): INFORMATION CONTACT: Current Lease Pam .)ones (919) 245-2652 PURPOSE: To authorize the extension of the lease for the Parks Operations base through June 30, 2007, pursuant to the lease agreement. BACKGROUND: The advent of parks development in the County has given rise to the need for an operations base specifically for the parks fianction. Since August of 2004, Orange County has leased a 4,000 square foot building with surrounding grounds (approximately 3,500 sq ft) at 503 Cornerstone Court, Hillsborough (close to the intersection of Highways 86 and 70A). The shop space is used for carpentry (picnic tables, play structure repair, kiosk and sign construction, painting) for equipment care and lubrication, and to allow for productivity during inclement weather. County equipment assigned to the Parks division is secured in the fenced yard surrounding the building. Work crews are dispatched from this base daily to service Efland, Central, Fairview and Northern Parks. Southern Human Services Center, New Hope, Blackwood and Twin Creeks properties also receive regular attention and maintenance. While options have been considered over the past year that would provide space far this function on County-owned property, none have proven to be economically viable. The terms of the lease approved by the Board in 2004 (attached) provides that the lease may be extended for three one-year terms with a 3% escalation in the current lease amount (currently $33,990 per year going to $35,010 per year). All other terms remain the same. Should along-term solution be identified for this lease within the renewal term, the County may provide notice as provided in the lease and pursue the alternative location. FINANCIAL IMPACT: $35,010 is included in the Parks Operating portion of the 2006-2007 Manager's Recommended Budget to support this lease payment. RECOMMENDATION(S): The Manager recommends that the Board authorize the extension of the current lease for the parks operations base through June 30, 2007 at a rental fee of $35,010 per year, noting that the lease may be terminated earlier per mutual agreement between the County and the Landlord.