AGENDA #4m
MEMORANDUM
TO: Mayor and Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Resolution Authorizing Renewal of a Lease for Old Town Hall
DATE: June 15, 2005
The attached resolution would authorize a new lease agreement with the Inter-Faith Council for use of the Old Town Hall as a shelter for the homeless and a community kitchen for a period of two years.
BACKGROUND
The current lease agreement included a two-year term from September 1, 2002 to August 31, 2004. The proposed new lease would be for the period beginning on July 1, 2005, and ending on June 30, 2007, with a provision for another two-year extension. (Please see attached lease). Minor changes in the proposed lease have been made to reflect the new dates. All other provisions would remain unchanged.
Under the proposed lease agreement, the key responsibilities assigned to each party are as follows:
Duties of the Inter-Faith Council (IFC)
· Pay for all telephone and cable television services in the leased premises
· Provide all routine janitorial services for the leased premises
· Ensure that the leased premises are maintained and operated in a safe and sanitary manner
· Comply with all applicable statutes and provisions relating to occupancy by a certain number of persons, building code provisions for kitchens, fire regulations and provisions governing food preparation and handling; take reasonable precautions to prevent damage to the leased premises from fire and other causes, and to prevent bodily and personal injury
· Be responsible for all necessary staffing, programming and operations of the shelter for the homeless; be responsible for all necessary staffing, programming, operations and maintenance of the community kitchen and its associated equipment
· Provide all equipment necessary for program operations
· Submit all plans for building alterations or renovation, both interior and exterior, to the Town for prior approval.
Duties of the Town of Chapel Hill (Town)
· Provide the facility without rent
· Pay for all utilities (except telephone and cable television services) for the leased premises
· Provide routine and extraordinary maintenance and repair of the leased premises (exclusive of the kitchen and its associated equipment), parking lot of the Old Town Hall, exterior of the Old Town Hall and heating, plumbing and electrical systems; the Town will not provide janitorial service for the leased premises
· Assist with, review and approve all alteration or renovation plans for the building, both interior and exterior
· Administer bidding and contracting procedures for alterations, renovations and improvements in accord with applicable statues and grant procedures when the Town has applied for and received local, state or federal grant funds to be used in conjunction with the Human Services Center.
As required by N. C. General Statute 160A-272, a notice of intent to execute this lease extension was published in the June 5, 2005, edition of The Chapel Hill News.
DISCUSSION
The Town of Chapel Hill offered the Inter-Faith Council the use of the Old Town Hall in 1985. Since the renovation in 1989, the Inter-Faith Council has offered 24-hour shelter services for the homeless. They also provide about 80,000 hot meals annually. The Inter-Faith Council for Social Services calculates that 95 percent of the food used for its meals is donated by local businesses, groceries and individuals. Between the communities of Chapel Hill and Carrboro, volunteers contribute approximately 51,000 hours of service in a variety of ways, including medical clinics, social service assistance, clothing, transportation, Alcoholics Anonymous meetings, literacy assistance and child services.
We understand that the IFC may be considering moving its shelter and kitchen operations. However, because there is no timetable for such a move and because the proposed lease has a provision for 120-day notice of cancellation, we believe that a lease should be in place.
RECOMMENDATION
That the Council adopt the attached resolution authorizing the lease agreement for the Old Town Hall for use as a shelter for the homeless and community kitchen, for a period beginning on July 1, 2005 and ending on June 30, 2007.
ATTACHMENT
1. Renewal Lease Agreement (p. 4).
A RESOLUTION AUTHORIZING A LEASE FOR OLD TOWN HALL FOR USE AS A SHELTER FOR THE HOMELESS (2005-06-15/R-10)
WHEREAS, the Council of the Town of Chapel Hill, on November 23, 1987, authorized the Town Manager to enter into a lease for the Old Town Hall for use as a shelter for the homeless; and
WHEREAS, the Council of the Town of Chapel Hill has subsequently authorized a continuous series of lease extensions or renewals for the Old Town Hall for use as a shelter for the homeless; and
WHEREAS, the term of the most current lease was for two years, ending on August 31, 2004; and
WHEREAS, Inter-Faith Council for Social Services, Inc., has requested that the lease be renewed; and
WHEREAS, a notice of intent to execute this lease extension was published in the June 5, 2005, edition of The Chapel Hill News to satisfy the requirements of N. C. General Statute 160A-272;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Town Manager to enter into an agreement for the lease to the Inter-Faith Council for Social Services, Inc., for the Old Town Hall at 100 West Rosemary Street, for use as a shelter for the homeless and community kitchen, for a period beginning on July 1, 2005 and ending on June 30, 2007, said agreement to contain language substantially the same as contained in the attached lease agreement.
This the 15th day of June, 2005.
STATE OF NORTH CAROLINA LEASE AGREEMENT
COUNTY OF ORANGE
This Lease Agreement, made and entered into the 1st day of July, 2005 by and between the Town of Chapel Hill, a North Carolina Municipal Corporation, 405 Martin Luther King Jr. Blvd., Chapel Hill, North Carolina, hereinafter referred to as "Town" and the Inter‑Faith Council for Social Service, Incorporated, 110 West Main Street, Carrboro, North Carolina, hereinafter referred to as "IFC".
In consideration of the mutual covenants and conditions set forth below, the Town and Inter‑Faith Council agree as follows:
1. Lease of Premises: The Town agrees to lease the Old Municipal Building and the adjacent parking lot, hereinafter referred to as “Leased Premises” at 100 West Rosemary Street, Chapel Hill, North Carolina to the Inter-Faith Council. IFC shall lease the Old Municipal Building to provide a 24-hour emergency shelter, community kitchen (food storage and meal preparation), medical services, general support and other services for homeless and low-income persons.
2. Rent: The Town agrees to rent the Leased Premises to the IFC at no charge.
3. Term of Lease: The term of this lease shall be for two years, commencing on July 1, 2005, and ending on June 30, 2007, renewable for a subsequent two‑year term upon Town Manager approval. The IFC shall give the Town Manager notice in writing of its desire to enter into a subsequent two‑year lease at least 120 days before expiration of the term.
4. Parking: The IFC may, as a right and incident of this lease, use the parking spaces marked off in the upper parking lot of the Old Municipal Building. All spaces in the lower lot shall be reserved for use by the Town.
5. Duties of the IFC:
a. IFC shall pay for all telephone and cable television services in the Leased Premises.
b. The IFC shall provide all routine janitorial services for the Leased Premises at its own expense. Provisions for contract janitorial service shall include workers' compensation insurance, general liability insurance and employee bonds.
c. The IFC shall ensure that the Leased Premises are maintained and operated in a safe and sanitary manner. The IFC shall also be responsible for proper safekeeping and security of the Leased Premises.
d. The IFC shall comply with all applicable statutes, and provisions relating to occupancy by a certain number of persons, building code provisions for kitchens, fire regulations, and provisions governing food preparation and handling. The IFC shall take reasonable precautions to prevent damage to the Leased Premises from fire and other causes, and to prevent bodily and personal injury.
e. The IFC shall be responsible for all necessary staffing, programming, and operations of the shelter for the homeless; and, the IFC shall be responsible for all necessary staffing, programming, operations and maintenance of the community kitchen and its associated equipment.
f. The IFC shall provide all equipment necessary for program operations.
g. The IFC shall submit all plans for building alterations or renovation, both interior and exterior, to the Town for prior approval, whether the renovations or alterations will be financed through the Town, the IFC or funds raised from other sources. This review does not relieve the IFC from the necessity of obtaining approval for the renovations or alterations from the North Carolina Department of Cultural Resources.
6. Duties of the Town:
a. The Town shall pay for all utilities for the Leased Premises except as provided in paragraph 5a.
b. The Town will provide routine and extraordinary maintenance and repair of the Leased Premises (exclusive of the kitchen and its associated equipment), the parking lot of the Old Municipal Building, the exterior of the Old Municipal Building, and the heating, plumbing and electrical systems; the Town will not provide janitorial service for the Leased Premises.
c. The Town will assist with and review, and must approve all alteration or renovation plans for the building, both interior and exterior. The Town will not unreasonably withhold approval of alterations or renovations proposed by IFC.
d. When the Town has applied for and received local, State or federal grant funds to be used in conjunction with the Human Services Center, the Town will administer bidding and contracting procedures for alterations, renovations, and improvements in accord with applicable statutes and grant procedures.
7. Insurance: The IFC shall provide and maintain at its expense liability insurance, naming the Town as an additional insured, covering its activities at the Leased Premises in limits approved by the Town Manager, and any other insurance required by law or the Town, such as for Workers' Compensation. Copies of such insurance policies shall be provided to the Town Manager's office. Said insurance shall provide that the Town shall be given at least 30 days prior written notice before the policy may be altered, amended or canceled or terminated or allowed to lapse.
8. Waiver of Subrogation: The Town agrees to maintain fire, extended coverage, and vandalism and malicious mischief insurance on the Leased Premises and on personal property of the Town contained therein to the extent of its full insurable value; the IFC shall do the same with respect to its property located in or on the Leased Premises. The Town and IFC hereby mutually release and discharge each other from all claims or liabilities arising from or caused by fire, or other casualty covered by the above insurance on the Leased Premises, or property in or on the Leased Premises.
9. Sublease or Assignment: This Lease Agreement may not be assigned or transferred, nor may any of the Leased Premises be sublet, without the prior written approval of the Town Manager.
10. Alterations, Repairs: The IFC shall not perform or order the performance of any alterations, renovations or repairs to the Leased Premises without the prior written approval of the Town.
11. Right of Inspection: The Town reserves the right to enter the Leased Premises and inspect them, or to repair or maintain them, at reasonable times and upon reasonable notice.
12. Cancellation: The Lease Agreement may be canceled upon 120 days prior written notice by either the Town or IFC. If either party exercises the option to cancel the lease, the IFC shall have the right to remove from the premises any furnishings, installed kitchen equipment and other property of the IFC up to and including the final day the lease is in force. Any IFC property remaining on the leased premises after the termination of the lease shall become the property of the Town and may be removed by the Town for disposal or sale by the Town.
13. Personal Injury or Property Damage: The IFC shall indemnify and hold harmless and defend the Town and its agents and employees from any claim, cost, expense, liability, action, or judgment including attorney's fees arising out of or related to any personal injury, death, or property damage with respect to the use of the Leased Premises and operation of the Human Services Center.
14. Notice: Any notice or written communication related to this Lease shall be deemed effective if mailed or delivered to:
a. For the Town:
Town Manager
405 Martin Luther King Jr. Blvd.
Chapel Hill, NC 27514
b. For the IFC:
President, Inter‑Faith Council Board of Directors
110 West Main Street, Carrboro, NC 27514
This the _____day of ____________, 2005.
IN WITNESS WHEREOF, the parties hereunto cause this Lease Agreement to be executed in their respective names.
TOWN OF CHAPEL HILL THE INTER‑FAITH COUNCIL FOR
SOCIAL SERVICE, INC.
By: __________________________ ____________________________
Town Manager President
Attest: ______________________ Seal Attest:_______________________
Town Clerk
Approved as to Form: _____________________________________________
Town Attorney
This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act.
_____________________________
Finance Director
______________________________
Director of Public Works
STATE OF NORTH CAROLINA
COUNTY OF ORANGE
I, ____________________________, a Notary Public in and for said County and State, do hereby certify that _________________________ personally appeared before me on behalf of the Inter‑Faith Council for Social Services, Inc. this day and acknowledged the due execution of the foregoing instrument.
WITNESS my hand and notarial seal this _____ day of ______________, 2005.
_____________________________
Notary Public
My Commission Expires: __________________________