Section 5-E3507. TERMS AND CONDITIONS OF LEASES

 

3507.1The rent to be charged pursuant to net, co-tenancy, and joint occupancy leases shall be based upon the appraised fair market rental value as established by a professional assessor to be selected by the Superintendent; provided, that in those instances where the Board of Education determines there to be a value to services to be provided supplementary to the educational programs of the School System, the Board may credit such in-kind services to the fair market rental value; provided, that the Board of Education must, by a two-thirds (2/3) vote, agree to charge rent in an amount less than the fair market value; provided, that the Board of Education shall publish an explanation of the basis on which it decided to forego rent in the D.C. Register and the public shall be allowed to comment on this decision; provided further, that in no event, shall in-kind service credits reduce rental payments below the following levels:

 

(a)The cost of operating the leased premises, for those lessees who directly support the educational programs of the D.C. Public Schools; or

 

(b)The full ownership costs of the leased premises, consisting of operating costs plus indirect costs, for any lessees other than those described in § 3507.1(a).

 

3507.2In order for credit to be given for in-kind services, the prospective tenant shall make a written request stating therein the estimated value of the services.  The Superintendent shall review this request and advise the Board as to whether or not the Administration agrees with the estimated value contained therein prior to the Board’s vote in regard to providing rental credit for the in-kind services in question.  The credit for in-kind services must be reapplied for each year.  In order for credit to be given for facility improvements, the following requirements shall be met:

 

(a)Improvements may only be credited against rent due if they are expected to outlast the anticipated term of the lease in question;

 

(b)Rental payments shall not fall below the levels set out in § 3507.1; and

 

(c)Credits granted for improvements may be carried over into subsequent years if the limitation of § 3507.2(b) prevents full amortization.

 

3507.3Any prospective lessee shall be responsible for compliance with all zoning regulations (or obtaining a variance therefrom); as well as compliance with Federal and local codes governing safety, health, and the environment. If an occupancy permit is required pursuant to the District of Columbia law and regulations, it shall be the responsibility of the lessee to obtain the permit. All cost attendant thereto shall be borne by the lessee.

 

3507.4The lessee shall submit proof of compliance with § 3507.5 and § 3507.6 to the Superintendent or his or her designee.

 

3507.5Other than for District of Columbia and Federal agencies, all lessees shall obtain and keep in effect the following insurance coverage:

 

(a)Public liability insurance in the amount of one million dollars ($1,000,000) for bodily injury per person and three million dollars ($3,000,000) maximum per accident;

 

(b)Property damage insurance in the amount of two hundred thousand dollars ($200,000) for any one accident and an aggregate of five hundred thousand dollars ($500,000); and

 

(c)Fire and extended coverage insurance for a minimum of one hundred percent (100%) of the value of the improvements on the property.

 

3507.6Leases for terms exceeding five (5) years shall require that the insurance to be obtained provide for escalation clauses in its coverage, as deemed sufficient by the Superintendent of Schools or his or her designee.

 

3507.7Evidence of procurement of the insurance or a binder to the effect that the coverage will be provided upon the execution of the lease shall be submitted to the Superintendent or his or her designee.

 

3507.8The Superintendent or his or her designee shall maintain a listing of insurance carriers known to the School System which have provided coverage as stipulated in §3507.7.

 

3507.9All leases shall contain appropriate language to hold the Board of Education and its employees and agents harmless as to any and all claims, demands, suits, or other liability arising from the use of space leased to a tenant.

 

3507.10As a condition to entering into a lease, the Superintendent or his or her designee may require that the lessee provide additional personnel and/or hardware to secure the building from potential vandalism.  In this regard, the Board of Education reserves the right for the Superintendent or his or her designee to make periodic inspections at reasonable times.

 

3507.11Other than for net leases, tenants shall not have control of keys to outside doors to buildings.

 

3507.12In negotiating leases, the Superintendent or his or her designee may require a security deposit.

 

3507.13The Superintendent shall insure that the initial terms of net and co-tenancy leases are for a period of time consistent with the projected space needs of D.C. Public School programs and operations; provided, that the Board of Education shall reserve the right to terminate a lease for convenience upon six (6) months written notice served upon the lessee(s) or, if for cause, upon sixty (60) days advance written notice.

 

3507.14Joint occupancy leases shall be for a minimum term of one (1) year, subject to extensions from year-to-year thereafter; provided, that the Board of Education shall reserve the right to terminate such lease for convenience upon six (6) months written notice or, if for cause, upon sixty (60) days advance written notice.

 

3507.15For the purpose of serving notice pursuant to §§ 3507.13 and 3507.14, violation of any material provision of the lease or non-payment of rent when due shall be cause for termination of the lease.

 

3507.16If at any time, the Board of Education acting pursuant to this chapter votes to release from its control the leased premises for use or other disposition by the District of Columbia Government, the Board of Education may terminate any existing lease covering in whole or in part the premises upon a minimum of ninety (90) days written notice to the lessee.

 

source

Final Rulemaking published at 30 DCR 5849, 5860 (November 11, 1983); as amended by Final Rulemaking published at 37 DCR 6944, 6945 (November 2, 1990).