5-16-22 BOC Regular Meeting - Laserfiche WebLink

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WHEREAS, once the purchase of the building is complete, the City will enter into a lease with the County based on their occupied square footage and this lease will be for a minimum of at least ten years; and NOW, THEREFORE, for and in the consideration of the payment hereinafter mentioned, the mutual promises herein contained and the mutual benefits to result therefrom, and pursuant to the provisions of Chapter 160A and Chapter 1 53A of the North Carolina General Statutes, the County and City agree as follows: 1. TERM. The term of the Interlocal Agreement shall be for one(10) years beginning upon execution and ending the 30th day of June, 2032. After the ten-year period, both Parties will evaluate the need for each local government and the community as a whole, on whether to maintain the joint facilities. At that time, the Parties can then enter into a new arrangement. If after this first ten-year term, either party decides not to renew said lease, it must provide a six-month written notice to the other party before the ten-year term expires. 2. DIVISION OF RENTAL EXPENSES. Parties agree that the City shall pay rent according to the terms of the lease,based on current usage of space as shown on Exhibits A and B. Each year of the lease, the County will adjust rent payments based on the consumer price index, southeast region,but will cap any increases for a given year at 3%. No later than March 1, the County will notify the City of its rent payment in order for the City to budget accordingly for the next fiscal year. 3. DIVISION OF UTITLITY EXPENSES. The City and County shall pay one half(1/2)of the cost of utilities attributable to the occupancy of the building by city and county departments based on current use of space as shown on Exhibits A and B. If the City ever increases its leased space, the division of utility expenses will be addressed in an amendment to the lease. 4. EQUIPMENT AND FURNISHINGS. City and County shall be responsible for furnishing the offices of their respective departments. Furnishings for conference rooms and open areas shared by all Tenants have already been completed and a division of that property will take place at the end of the lease term. 5. INFORMATION TECHNOLOGY. City and County shall be responsible for the telephone and Internet service fees associated with their respective departments. 6. INSURANCE. The City shall, at its own expense throughout the term of the lease, maintain fire and extended coverage insurance for furniture, supplies and equipment. Both City and County shall maintain public liability insurance including bodily injury and property damage and commercial liability insurance on the premises. City shall provide County with a Certificate of Insurance naming County as an additional insured and providing a ten-day written notice to County in the event of cancellation or material change and all other insurance requirements will be governed in the lease document.