Lease

All new arrangements with schools will come under a long-term lease with one exception.

Level 1 dental units, which are used primarily for examination and screening (with no drilling or x-ray) are covered by a memorandum of understanding, which is a simple agreement between the board and the DHB. Read the memorandum of understanding information.

All other dental clinics and mobile dental units that are intended to operate from a pad provided exclusively for the mobile clinic are covered by the lease. This lease clearly spells out the new rights and responsibilities of both the board of trustees and the DHB in relation to clinics on school sites. For example, in return for a peppercorn rent ($1), the set-up costs for new clinics, refurbishing existing clinics or new pads for mobile clinics will be paid by the DHBs. The DHB will become responsible for all capital and operating costs, including maintenance, utilities, rates, insurance premiums and compliance costs, from the date the lease is signed.

For boards, there will be a marked reduction in their property responsibilities for clinics and much more clarity around the roles of boards and DHBs. Boards won’t be able to terminate the lease except in extreme circumstances - this recognises the DHBs’ investment into clinics and will provide greater incentive for oral health care providers to invest in these facilities over the long term.

Negotiating Schedule C of the lease

The standard terms of the lease cannot be amended

However, boards of trustees will need to negotiate a policy with the DHB covering important practical issues, such as access to toilets for the dental therapists, access to the clinic, parking, security etc. The agreed policy must be recorded in Schedule C of the lease before the lease is signed. See clause 2.11 and Schedule C of the lease for more information - the standard lease comes with a draft Schedule C Policy which can be adapted to suit the individual requirements of the school, the DHB and the therapists.

Legal advice not necessary

Boards of trustees will not need to seek independent legal advice before signing the lease – it has been through extensive consultation, including legal review, during its development. It has been approved by the Ministry of Education and the Minister of Health and is designed to cater for all arrangements for the provision of oral health care at schools.

Signing the lease

There are three signatories to the lease.

1. The Ministry of Education needs to sign its consent to the lease (this is a requirement of section 70B(1) of the Education Act 1989 for all third party occupancy agreements) – consent must be signed by the Group Manager Property.
2. The board of trustees.
3. The DHB.

When all signatories have signed, each must get a signed copy. Boards should send a signed copy to their local Ministry office. The DHB must provide a signed copy to the MOH before the MOH will release any capital funding to the DHB.

Maintenance funding ceases

Once the lease is signed, the school will stop receiving operational funding for the clinic. This is a simple deduction of the current rate multiplied by the square metres of the clinic. The current rate is shown in the PMIS under the Maintenance Grant menu.

The 10YPP may need to be adjusted if work was scheduled for the clinic.

Overview of terms and conditions in the lease

• The term of the lease is 35 years.
• The annual rent is $1 a year.
• Use of the leased premises is exclusively for a community oral health service (dental clinic).
• The DHB pays all operating costs such as:
• repairs and maintenance
• rates and charges for water, gas, electricity and phones telephones
• insurance premiums
• cleaning and rubbish costs
• grounds and car parking maintenance where applicable
• Operating costs are to be apportioned where services are shared.
• Access for the DHB staff and contractors, including use of ablution facilities, is permitted.
• DHB employees are to undergo police vetting.
• Hazards and noxious substances are to be managed by the DHB.
• The DHB is responsible for maintenance of the building, the grounds, rubbish removal, and signage.
• The board has the right to inspect the clinic.
• The Ministry and the board must consent before the DHB does any construction or alterations – see Construction Work.
• The DHB is responsible for insuring the buildings – the lease sets out how this is to be applied if the clinic is destroyed.
• No subletting is allowed but the lease can assigned to a successor of a DHB to continue using the clinic. 
• Vandalism is the board’s responsibility if caused by a student or someone in the control of the board.
• The DHB is responsible for the repair and maintenance of services, such as electrical, plumbing or drainage, which are for the use of the clinic.
• The lease terminates if the school closes or merges but there is provision to negotiate with the ministry to continue the clinic on the closed site.
• The DHB can give three months notice to terminate the lease (but the board cannot give notice to the DHB). However there is provision for default and disputes management where the DHB breaches the lease.
• The DHB can remove its improvements at the end of the lease but must make good any damage to the school premises.