AGENDA #4g
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Recommended Lease with Holmes Day Care Center for a Portion of the Hargraves Recreation Center
DATE: December 11, 2000
The attached resolution would authorize the Manager to execute on behalf of the Town a five-year lease agreement with the Holmes Day Care Center, Inc. for approximately 3,850 square feet of space in the basement of the Hargraves Recreation Center, 216 N. Roberson Street.
The Holmes Day Care Center has operated in the Hargraves Recreation Center for approximately thirty years. The current five-year lease, which will expire on December 31, 2000, was approved by the Council in November 1995.
North Carolina General Statute 160A-372 states that property may be rented or leased by a municipality pursuant to a resolution of the Council authorizing the execution of the lease, adopted at a regular meeting, and upon 10 days’ public notice. We published such notice in the Chapel Hill News on December 1, 2000.
The proposed lease agreement would be substantially the same as the current agreement with the following modifications:
Please see the attached copy of the proposed lease agreement.
Manager’s Recommendation: That the Council adopt the attached resolution authorizing the Manager to execute a lease, in substantially the same form as the one attached, with Holmes Day Care Center Inc. for operation of a child care center at the Hargraves Recreation Center from January 1, 2001 until December 31, 2006.
ATTACHMENT
1. Copy of proposed lease agreement (p. 4).
A RESOLUTION AUTHORIZING THE MANAGER TO EXECUTE A LEASE AGREEMENT FOR A PORTION OF THE HARGRAVES RECREATION CENTER FOR A CHILD CARE CENTER (2000-12-11/R-7)
WHEREAS, the current five-year lease with Holmes Day Care Center, Inc. expires on December 31, 2000; and
WHEREAS, the Town wishes to continue to offer space for the operation of a child care center in the basement of the Hargraves Recreation Center; and
WHEREAS, the Town has published a public notice of the Council’s intent to enter into a lease agreement with Holmes Day Care Center, Inc.; and
WHEREAS, no other party has requested to lease said premises;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council authorizes the Manager to execute a lease agreement on behalf of the Town with the Holmes Day Care Center, Inc. for approximately 3,850 square feet of the Hargraves Recreation
Center for the operation of a child care center, said lease being substantially in the form presented by the Manager with his report on this matter on December 11, 2000, a copy of which shall be kept with the records of this meeting.
This the 11th day of December, 2000.
STATE OF NORTH CAROLINA AGREEMENT FOR
COUNTY OF ORANGE LEASE OF PROPERTY
This Lease Agreement, made and entered into by and between the Town of Chapel Hill, N.C., a North Carolina municipal corporation, 306 N. Columbia Street, Chapel Hill, N.C., hereinafter referred to as “Town”, and the Holmes Day Care Center, Inc., a not-for-profit corporation organized under Chapter 55A of the North Carolina General Statutes, 216 N. Roberson Street, Chapel Hill, N.C., hereinafter referred to as “Holmes”.
W I T N E S S E T H
In consideration of the mutual covenants and conditions set forth below, the Town and Holmes mutually agree as follows:
a) For Holmes – Director of Holmes
b) For the Town – Facility Director, Hargraves Park
a) Holmes shall make a monthly payment by the 10th day of each month, of $225 per month beginning in January 2001. The Town may adjust the amount of the monthly payment to reflect the actual percentage increase in the prorated cost for utilities used for the space occupied by Holmes. Any cumulative increase in payment shall not increase more than 10% per year.
b) Holmes shall ensure that the Leased Premises are maintained and operated in a safe and sanitary manner. Holmes shall also be responsible for proper safekeeping and security of the Leased Premises.
c) Holmes shall strictly comply with all applicable statutes, ordinances, codes and regulations respecting use and occupancy of the Leased Premises, including any provisions relating to licensing of the Day Care Center, occupancy by a certain number of persons, building code provisions for kitchens, fire regulations, provisions governing food preparation and handling, and the like. Holmes shall take reasonable precautions to prevent damage to the Leased Premises, from fire or other causes, to prevent bodily and personal injury, and to prevent loss from theft or other causes.
d) Holmes shall be responsible for all necessary staffing, programming, and operations of the Day Care Center. Holmes agrees to ensure appropriate and prudent supervision by responsible adults, at the Leased Premises, at all times when the Day Care Center is open.
e) Holmes agrees to obtain approval of the Town in advance of alterations to the hours of operation for the Day Care Center.
f) Holmes will provide all equipment necessary for day care operations, including, but not limited to, curtains, bulletin boards, and kitchen equipment. The Town shall not be responsible for the care, storage, repair, replacement or maintenance of any equipment not belonging to the Town.
g) The Town Parks and Recreation Department staff may permit Holmes to use Town owned property such as chairs, tables, and other equipment for Day Care purposes, on a day-to-day basis. It is understood that the Town has no obligation under this Agreement to provide any equipment.
h) Holmes shall provide regular janitorial service and supplies for the Leased Premises, at its own expense. Holmes shall also strip and wax the floor at least once per year. Provisions for contract janitorial service shall include Workmen’s Compensation Insurance, General Liability Insurance, and Employee Bonds.
i) In the event that an accident or incident related to the Holmes Day Care operation occurs on Town property, Holmes shall notify the Hargraves Park facility manager or his designee of the details of the accident and/or incident and assist in the preparation of an accident/incident report form. Such notification shall occur as soon as is possible, but no later than 24 hours from the time of the accident or incident. Accidents to be reported include any that result in injury or death (excluding minor cuts and scrapes), or damage to personal or Town property. Incidents to be reported include any criminal acts; threats; complaints related to Town facilities, staff, or programs; and any other event of which the Town should have knowledge.
j) Except for special provisions stated herein, Holmes shall pay all rental, program, and admission fees as outlined in the annually revised and adopted Parks & Recreation Department’s User Fee Policy.
k) Holmes agrees to direct all requests for routine maintenance to the Hargraves Park facility manager.
a) The Town shall provide Holmes with approximately 3,850 square feet of space suitable for certified day care operations, in the basement of the Hargraves Recreation Center Building, between 7 a.m. and 5:30 p.m., Monday through Friday (except for annual maintenance, extraordinary maintenance, and in the event of structural alterations to the Center which may require temporary closing of the day care space); provided, however, that the Town shall not be liable for any failure to provide such space during the term of this Lease.
b) The Town shall provide, at its expense, all necessary utilities, including electricity, gas, sewer, and water. The Town shall provide necessary repairs to all utilities for which it is responsible. The Town shall not be responsible for providing telephone or cable television service. Holmes shall be responsible for all fees and charges related to the provision of telephone and cable television service to the Leased Premises.
c) The Town shall perform general maintenance and repairs on said space (e.g., replacing windowpanes, repairing light fixtures, and maintenance of plumbing) as needed. However, to the extent that repairs are, in the opinion of the Town Manager, excessive and/or become repeated, the Town reserves the right to charge Holmes for the costs of said repairs based upon time and material expenses incurred by the Town. The Town Manager, or his designee, shall provide the Director of Holmes an opportunity to discuss, on a case-by-case basis, the costs of any repairs that would be charged to Holmes, prior to submission of an invoice for said repairs.
d) Holmes shall have free use of the outdoor open space areas of Hargraves Park, during the Day Care Center’s operating hours, unless said use interferes with programs sponsored by the Town.
a) Workers’ Compensation: Coverage to apply to all employees for statutory limits in compliance with the applicable state and federal laws. The coverage must include employer's liability with a limit of $100,000 each accident, $100,000 bodily injury by disease each employee, and $500,000 bodily injury by disease policy limit.
b) Comprehensive General Liability: Holmes shall maintain coverage having minimum limits of $1,000,000 per occurrence and $2,000,000 annual aggregate for bodily injury liability and property damage liability. Such insurance shall also cover premises and/or operations, independent contractors, products and/or completed operations, broad form property damage, contractual liability endorsement, and insurance to protect against charges such as child abuse.
c) Business Auto Policy: Holmes shall maintain coverage having minimum limits of $1,000,000 per occurrence combined single limit for bodily injury liability and property damage liability. Such insurance shall include: owned vehicles, hired and non-owned vehicles, and employee non-ownership. If Holmes does not own or operate any vehicles as a part of it program, then such insurance shall not be required.
a) The Town is to be included as an additional insured on both the comprehensive general liability and business auto liability insurance policies.
b) Current, valid insurance policies meeting the above requirements shall be maintained for the duration of the lease. Renewal certificates on an Acord form shall be forwarded to the Town of Chapel Hill's Purchasing Agent at least 30 days in advance of any expiration date. There shall also be a 30-day notification to the Town in the event of cancellation or modification in any stipulated insurance coverage. Certificates of insurance on an Acord form, meeting the required insurance provisions, shall be forwarded to the Town. Wording on any Certificate which states that no liability shall be imposed on the company for failure to provide such notice is not acceptable. The Town may require original policies or certified copies of policies at any time.
c) It is the responsibility of Holmes to insure that all subcontracts comply with the same insurance requirements, with the exception of insurance to protect against charges of child abuse, that Holmes is required to meet.
Holmes agrees to protect, defend, indemnify and hold harmless the Town of Chapel Hill from all loss, liability, claims or expense (including reasonable attorney’s fees) arising from bodily injury, death or property damage to any person or persons caused in whole or in part by the negligence or willful misconduct of Holmes, except to the extent same are caused by the negligence or misconduct of the Town of Chapel Hill.
a) For the Town,
Town Manager
306 N. Columbia Street
Chapel Hill, N.C. 27516
b) For Holmes,
Holmes Day Care
216 N. Roberson Street
Chapel Hill, NC 27516
21. Non-Discrimination: In matters of employment, provision of services and contracting, Holmes agrees to act without regard to race, color, sex, religion, age, national origin, affectional preference, or handicapped status.
22. Amendments: This Agreement may be amended by mutual agreement of Holmes and the Town.
23. Cancellation: Either party may terminate this Agreement by giving six months written notice of intent to cancel. Written notice shall be delivered by certified mail to the addresses listed herein.
24. Entire Agreement: This Agreement constitutes the entire Agreement of the parties hereto.
IN WITNESS WHEREOF, the parties to this Lease Agreement have duly and validly approved it and caused it to be executed in their behalf by the undersigned authorized agents.
This the _________ day of _____________,2000.
Town of Chapel Hill
___________________________________
W. Calvin Horton, Town Manager
___________________________________
Attest: Joyce Smith, Town Clerk
Approved as to form and authorization:
___________________________________
Town Attorney
This instrument has been preaudited in a manner required by the Budget and Fiscal Control Act.
___________________________________
Finance Director
___________________________________
Director of Parks and Recreation
This is to certify that on this day personally appeared before me, Joyce Smith, with whom I am personally acquainted, who being by me duly sworn, says that W. Calvin Horton is Manager of the Town of Chapel Hill and that she, Joyce Smith, is the Town Clerk, a body politic and corporate, described in and which executed the foregoing Agreement; that she knows the common seal of the Town of Chapel Hill; that the seal affixed to said instrument is said common seal; that the name of the Town of Chapel Hill was subscribed thereto by said Manager of the Town of Chapel Hill and said Town Clerk subscribed their names thereto and said common seal was affixed, all by and that said instrument is the act and deed of said Town of Chapel Hill.
WITNESS my hand and seal, this the _______ day of ____________, 2000.
My Commission Expires: _____________________________
_____________________________________
Notary Public
Holmes Day Care Center, Incorporated
______________________________________
Name, Chair
______________________________________
Name, Secretary
I, ________________________, a Notary Public of the county and state aforesaid, certify that ________________________________ personally appeared before me this day and acknowledged that _he is the ____________ Secretary of Holmes Day Care Center, Inc., a North Carolina Corporation, and that by authority duly given and as an act of the corporation, the foregoing instrument was signed in its name by its ______________ Chair, sealed with its corporate seal and attested by ________________ as its ______ Secretary.
Witness my hand and notarial seal, this the ______ day of ____________, 2000.
_____________________________
Notary Public
My Commission Expires: ____________________________