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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: October 5, 1999 <br />Action Agenda <br />Item No. g_ h <br />SUBJECT: Temporary Lease Adjustment; 501 West Franklin Street, Suite 105 <br />DEPARTMENT: Purchasing 8~ Central Services PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Pam Jones extension 2652 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider amending the lease amount for Rental Resources for a period of six-months. <br />BACKGROUND: Rental Resources of Durham/Chapel Hill occupies suite 105 at 501 West Franklin <br />Street. The lease extends through May 31, 2000 at a monthly rate of $1,076.89. As we reported in a <br />previous abstract, the suite has flooded several times over the past two years in periods of significant <br />rainfall. The problem was diagnosed by engineers as being a hydrostatic water problem, with the water <br />source likely to be rainwater runoff that accumulated around the building. The issue was addressed as <br />part of the Skills Development Center renovations by providing additional drainage for the water that <br />accumulated around the building during periods of heavy rain. However, during the recent high wind <br />and heavy rain incident, the roof was damaged and the suite flooded once again to the point the interior <br />two rooms are not serviceable to the tenant. The roof damage allowed water to accumulate between the <br />two inner walls of the 501 and 503 buildings and seep into the suite. <br />The roof is scheduled for replacement within the next couple of years per the roof study completed last <br />year. However, in light of the recent problems with this suite and with the threat of significant damage to <br />the newly renovated Skills Development Center, compounded by the recent storm damage, we believe it <br />prudent to move forward with roof replacement rather than continuing to patch. Bidding of that work is <br />imminent. <br />The tenant has indicated discomfort with allowing equipment to be placed in the two offices most affected <br />by the water until the leak is repaired. She has requested that her rent be reduced to $800 per month <br />until such time that repairs are made and it is determined that this fix is permanent and she can again use <br />the two interior offices. We are recommending that the rent be reduced to $800 per month from <br />September, 1999 through March, 2000, by which time work will be completed and determination of the <br />success of the mitigation efforts can be verified. <br />FINANCIAL IMPACT: Lease revenue will decrease by approximately $1600 for FY 99-2000. <br />RECOMMENDATION(S):: The Manager recommends that the Board authorize adjustment of the rent <br />amount for Rental Resources to be $800 per month from September 1999 through March 2000. <br />