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The rent escalator provision acts as a cost of living adjustment and the percentage increase is <br />determined by utilizing the applicable indices determined by the United States Bureau of Labor <br />Statistics through its Consumer_Price Index. Adjustments would be made annually based on the <br />effective date of the_commencement of lease notice. <br />Mr. Walters has agreed to the provision, which would allow for the renewal of such lease for ten <br />additional consecutive five-year terms (50 years). However, either the County or The Walters <br />would be able to terminate the lease upon submittal of a 90-day written notice. <br />The leases for the other Solid Waste Convenience Centers do not contain a rent escalator <br />clause given that they do not contain an automatic renewal provision and the term is only for a <br />five-year period. <br />FINANCIAL IMPACT: <br />The proposed initial lease amount is $200.00 per month or $2,400.00 per year. The annual <br />adjustment would be variable based on the Consumer Price Index. <br />Avers a Perce t C an es er the Consumer Price Index <br />1995 2.8 1996 3.0 1997 2.3 1998 1.6 <br />Funds are currently allocated in the operating budget to accommodate the proposed lease <br />amount. <br />RECOMMENDATION(S): The Manager recommends that the Board approve the inclusion of <br />the rent escalation clause in the new High Rock Road lease agreement and authorize the Chair <br />to sign the lease on behalf of the Board. <br />