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HomeMy WebLinkAboutResolutions - 2014.12.11 - 21626MISCELLANEOUS RESOLUTION #14297 December 11, 2014 BY: Planning and Building Committee, J m Runestad, Chairperson IN RE: FACILITIES MANAGEMENT — LEASE AMENDMENT #1 FOR 52-1 NOVI DISTRICT COURT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: WHEREAS the County of Oakland and Hannawa Novi Holdings, LLC, entered into a Lease for the 52-1 District Courthouse (Novi) on July 1, 2013; and WHEREAS the Lease (specifically Exhibit B) required that the Parties draft an agreement to set forth Preventative Maintenance for responsibilities for the HVAC system; and WHEREAS to that end, the Lease Amendment #1 attached has been drafted by Corporation Counsel, reviewed by Facilities Management, and agreed to by the Parties; and WHEREAS the Court Administrators and Judges of the 52-1 District Court have reviewed the Lease Amendment #1 and agree to its terms and conditions. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and accepts the terms and conditions of the attached Lease Amendment #1 for the 52-1 District Courthouse (Novi). BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its Chairperson or his designee to execute the attached Lease Amendment #1. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE PLANNING AND BUILDING COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Runestad absent. DIRECT REFERRAL TO FINANCE: Motion to directly refer this resolution to the Finance Committee for immediate consideration carried on a voice vote. AMENDMENT #1 BETWEEN THE COUNTY OF OAKLAND AND HANNAWA NOW HOLDINGS. LLC This First Amendment (0 Amendment) is entered into this 6`41, day of 1 v Sr ,, ^..',;14 ("Commencement Date"), between the County of Oakland, a municipal and constitutional corporation located at 1200 North Telegraph Road, Pontiac, MI 48341 (Tenant) and Hannawa Novi Holdings, LLC, a Michigan limited liability company, 2425 Franklin Road, Bloomfield Hills, Michigan 48302 (Landlord). BACKGROUND The Parties entered into a lease dated July 1, 2013 ("Lease"). The Lease is attached as Attachment A. Exhibit B to the Lease requires the Parties to draft an agreement to set forth preventative maintenance responsibilities for the HVAC system at the Premises. This Amendment will contain the agreement regarding preventative maintenance for the HVAC system at the Premises In consideration of the mutual covenants contained herein, the Parties agree to amend the Lease as follows: 1sT AMENDMENT §1. All preventative maintenance for the HVAC system at the Premises shall be performed by and paid by Landlord. §2. Notwithstanding Section 1 of this Amendment, Tenant shall reimburse Landlord for the actual costs associated with following HVAC system preventative maintenance: 2.1. Inspect electrical controls and compressor, hook gauges to compressor, check for proper gas levels and working pressures; 2.2. Inspect the heat exchanger; 2.3. Inspect and clean burners; 2.4. Check for proper pressure and manifold and gas pressure; 2.5. Remove and replace filters; 2.6. Cheek interior coils and filter box for debris and vacuum, if necessary; 2.7. Clean exterior coils; 2.8. Lube hinges on filter box door; 2.9. Grease bearings; 2,10. Oil and grease motor; Page 1 of 3 1st Lease Amendment (11-03-14) 2.11. Check all damper linkages for wear and tear and lube as necessary; and 2.12, Check all belts for wear and cracks and adjust and/or replace belts as necessary. §3. All preventative maintenance listed in Section 2 shall be performed according to manufacturer's specifications or according to best industry practices (if the manufacturer specifications are silent regarding a particular preventative maintenance task). §4. Before Landlord is entitled to reimbursement from Tenant, Landlord shall send Tenant a detailed invoice for the preventative maintenance costs. Tenant shall pay this invoice within ten (10) business days of receipt. The detailed invoice shall include a worksheet or job ticket from field technician specifying the tasks completed, labor hours and rates, and material costs. The preventative maintenance costs shall not include an administrative or service fee for Landlord. §5. All other terms and conditions of the Lease shall continue with full force and effect, except as modified herein. This 1 s` Amendment and the terms and conditions of the Lease, attached as Attachment A and incorporated by reference, constitute the entire agreement between the Parties and supersedes all other prior oral or written understandings, communications, or agreements between Landlord and Tenant. Page 2 of 3 1 St Lease Amendment (11-03-14) TENANT: COUNTY OF OAKLAND By: Michael J. Gingen, Chairperson Oakland County Board of Commissioners Subscribed and sworn to before me on the day of , 20 . Notary Public, Oakland County, Michigan My Commission Expires: Acting in the County Oakland LANDLO7 .HANNAWA NOVI HOLDINGS, LLC By: Date: 5- - o/c./ Subscribed and sworn to before me on thejett, day of ji 0,1 0,-. t , 20111 Notary lic 06, ya Oakland County, Michigan My Commission Expires: " 4 1, K.- Acting in the County of Oakland Page 3 of 3 1St Lease Amendment (11-03-14) LEASE FOR 52ND DISTRICT COURT, FIRST DIVISION This Lease is made and entered into on July 1, 2013 ("Commencement Date") between Hannawa Novi Holdings, LLC, a Michigan limited liability company, 2425 Franklin Rd., Bloomfield Hills, Michigan 48302("LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, 1200North Telegraph Road, Pontiac, Michigan 48341 ("TENANT"). INTRODUCTION A. The TENANT currently leases the building and parking lot from the Landlord located at 48150 Grand River Avenue, Novi, Michigan for use as the 52n d District Court, First Division, pursuant to a lease executed on April 12, 2005 ("Current Lease"); B. On November 5, 2009, the TENANT exercised its option to extend the current lease for five (5) years until March 2, 2015; C. The TENANT desires to extend the length of its stay at 48150 Grand River Avenue, Novi, Michigan; D. In exchange for the extension, the LANDLORD is willing to decrease the rent as set forth in paragraph 3; and E. The Parties desire to terminate the Current Lease and agree to the following terms and conditions. I . Leased Premises of Lease. In consideration of the Rent to be paid and the covenants to be performed by the TENANT, the LANDLORD leases to the TENANT and the TENANT leases from the LANDLORD the entire building consisting of approximately 25,833 square feet and the parking lot for this building, located at 48150 Grand River Avenue, Novi, Michigan ("the Premises"). The Premises are depicted in Exhibit A, which is attached and incorporated by reference into this Lease. 2. Term. The term of this Lease shall begin on the Commencement Date and shall end on June 30, 2023. After June 30, 2020, the TENANT shall have the right to terminate this Lease, without any penalty, upon three hundred and sixty-five (365) days written notice to the LANDLORD, for any reason whatsoever. 3. Rent for Lease. From the Commencement Date of this Lease, the TENANT shall pay the LANDLORD thirty-one thousand dollars ($31,000.00) per month, as Rent for the Premises ("Rent"). 4. Rent Adjustment. On the eighth (8th) anniversary of the Commencement Date, the annual rent for each twelve (12) month period shall be increased and that increase shall be an amount equal to the prior twelve month's rent plus one percent (1.0%). 5. Place and Date of Payment. Payments due under this Lease from the TENANT to the LANDLORD shall be paid at the address of the LANDLORD set forth above or at such other place as LANDLORD may designate in writing. The Rent due under Paragraphs 3 and 4 of this Lease shall be paid on a monthly basis. The Rent shall be paid on the first calendar day of each month or another date agreed to by both Parties, in writing. 1 14DECO252-1 LEASE-FINAL 05 13.DOC 6. Partial Month Rent Proration. Should the Commencement Date be other than the first calendar day of a month, then the Rent for such month shall be prorated upon a daily basis based upon a thirty (30) day calendar month. Should this Lease terminate or expire other than the first calendar day of the month, then the Rent for such month shall be prorated upon a daily basis for a thirty (30) day calendar month. 7. Failure to Perform. In the event the LANDLORD fails to perform or comply with any obligation or requirement of this Lease, the TENANT shall give the LANDLORD five (5) business days written notice of such failure. If the LANDLORD does not perform or comply with the obligation or requirement within the five (5) business day period, then the TENANT may perform or cause the compliance with the obligation or requirement. TENANT may deduct any reasonable costs associated with performing or complying with the obligation or requirement of the Lease from the Rent. In an emergency situation, the TENANT may perform or cause compliance with the obligations or requirements of the Lease without prior written notice to the LANDLORD and still may deduct reasonable costs from the Rent. Upon request, the TENANT shall provide the LANDLORD with an itemized invoice or statement for the costs associated with performing or complying with the obligations or requirements in the Lease. 8. Hold Oyer. In the event the TENANT holds over after the expiration of the Renewal Tenn of this Lease without a written agreement between the LANDLORD and the TENANT, the hold over shall be construed to be a tenancy from month-to-month on the same terms and conditions contained in this Lease. 9. Use and Occupancy. The Premises shall be used as a Courthouse. The Premises shall not be used in violation of any law, municipal ordinance, or regulation. Upon expiration or termination of this Lease, the TENANT shall surrender the Premises in the same condition when taken, normal wear and tear excepted, and shall remove its personal property. 10. Equipment and Furnishings. The TENANT shall provide, at its own expense, all computer and telephone systems, furniture and equipment it deems necessary. The TENANT, at its own expense, shall be solely responsible for the maintenance and repair of all computer and telephone systems, furniture and equipment. 11. Taxes. From and after the Commencement Date of this Lease, the TENANT agrees to pay all real estate taxes assessed or imposed on the Premises directly to the taxing authority prior to the date on which any penalty for nonpayment of such taxes attaches. The taxes for the year in which the Lease ends or is terminated shall be prorated and adjusted between the LANDLORD and TENANT on the due-date basis. 12. Utilities. The TENANT shall be solely responsible for and promptly pay all charges for water, gas, heat, electricity, telephone, sewer, and any other utility used upon or furnished to the TENANT. The LANDLORD agrees to provide utility service lines into the Premises and separate meters for utilities used upon or furnished to the Premises. 13. Maintenance, Repairs and Services. The division of responsibilities between the LANDLORD and the TENANT as they relate to maintenance, repairs, and services on, about, or to the Premises are set forth in Exhibits B, C and D. Exhibits B, C and D are incorporated by reference into this Lease. 13.1. Costs. Each Party shall be solely responsible, as set forth in Exhibits B, C, and D. for the costs associated with providing maintenance, repairs, and services on, about or to the Premises. 2 14DECO252-1 LEASE-FINAL 05 13.DOC 13.2. Third-Party Contractors. Either Party may hire a third-party to perform the maintenance, repairs, and services on, about, or to the Premises, as required by this Lease. The responsibilities contained in this Lease shall not be diminished in any manner if a Party hires a third-party to perform the responsibilities. 14. Alterations or Improvements. Except as set forth in this Lease and Exhibits, neither the LANDLORD nor the TENANT shall make any alterations or improvements on, about, or to the Premises without the prior written consent of the other party. Such consent shall include approval of designs for alterations or improvement; approval of Contractors to perform the alternations or improvements; and any request for proposals for the alterations or improvements. Any alterations or improvements made to or upon the Premises shall become an integral part of the Premises and shall become the sole property of the LANDLORD immediately upon the completion, unless agreed to in writing by the Parties. 15. Indemnification/Liability. 15.1. The LANDLORD shall save, defend, indemnify and hold the TENANT harmless from and against any and all loss, cost, liability, damage, expense (including, without limitation, reasonable attorneys' fees, litigation expenses, or court costs), penalties, fines and claims whatsoever in connection with loss of life, personal injury and/or damage to property arising from any acts or omissions of the LANDLORD, its agents, or employees. 15.2. TENANT shall be responsible for property damage to the Premises, including the structure thereon or fixtures attached to the structure, up to $5,000.00 per occurrence, which is caused by the acts of TENANT, TENANT'S employees or officers, or third-parties on the Premises for Court purposes, normal wear and tear to the Premises is excluded from this Section. 16. Landlord Insurance. The LANDLORD agrees to provide the following insurance or similar insurance: 16.1. Commercial General Liability Insurance in the minimum amount of $1,000,000 Combined Single Limit per occurrence, including Contractual Liability coverage recognizing this contract. The TENANT shall be an additional named insured on such policy. 16.2. LANDLORD shall cause the Premises, including the structure and improvements located thereon, to be insured against loss or damage under a policy or policies of fire and extended coverage insurance, including "additional perils." 16.3. All Insurance Certificates are to provide 30 days notice of material change or cancellation. Certificates of Insurance and insurance binders must be provided no less than ten (10) working days before commencement of this Lease. 16.4. Waiver of Subrogation. LANDLORD and LANDLORD'S insurance carrier agree to waive all rights of subrogation against TENANT for any loss or dame to the Premises and/or structure thereon exceeding $5,000.00, provided, however, that if LANDLORD makes a claim to its insurance carrier for such damage caused by TENANT, TENANT'S employees or officers, or third-parties on the Premises for Court purposes, then TENANT shall pay LANDLORD'S insurance deductible up to $5,000.00. 3 14DECO252-1 LEASE-FINAL 05 13.DOC 17. Tenant Insurance. TENNAT is self-insured as to liability claims. Any personal property kep t o n t h e Premises by TENANT shall be insured at TENANT'S sole risk and at its dis c r e t i o n . T h e T E N A N T a n d TENANT's insurance carrier agree to waive all rights of subrogation aga i n s t t h e L A N D L O R D a n d LANDLORD'S insurance carrier for any loss or damage to TENANT'S pers o n a l p r o p e r t y k e p t o n o r a t t h e Premises. 18. Destruction of Premises. In the event, the Premises are partially or totally damaged or destroyed by fire or other casualty, the damage to the Premises shall be promptly re p a i r e d o r r e b u i l t b y t h e LANDLORD. Notwithstanding any other provision in this Lease, if the Prem i s e s c a n n o t b e r e p a i r e d o r rebuilt within one hundred eighty (180) days after such damage, destru c t i o n , o r c a s u a l t y , t h e n t h e TENANT shall have the right to terminate this Lease and vacate the Premises upo n w r i t t e n n o t i c e t o t h e LANDLORD, after the expiration of such one hundred eighty (180) day period . I n a n y e v e n t , t h e R e n t owed by the TENANT shall be reduced in proportion to the fraction of the Prem i s e s r e n d e r e d u n u s a b l e ( i n the discretion of the TENANT) until the Premises are repaired or rebuilt. If mo r e t h a n f i f t y p e r c e n t ( 5 0 % ) of the Premises are damaged or destroyed by a casualty, then the LANDLOR D m a y e l e c t t o e i t h e r r e p a i r o r rebuild the Premises or to terminate this Lease by giving written notice to the TEN A N T w i t h i n t h i r t y ( 3 0 ) days after the occurrence of such damage or destruction. 19. Compliance with Laws. The LANDLORD agrees, at its own expense, to promptly comply with al l applicable federal, state and municipal laws and regulations affecting the Prem i s e s , i n c l u d i n g a n y b a r r i e r - free requirements. Notwithstanding any provision of this Lease, if the LAND L O R D f a i l s t o c o m p l y w i t h such laws and regulations, then the TENANT may give the LANDLORD w r i t t e n n o t i c e o f i t s i n t e n t t o terminate the Lease one hundred fifty (150) days after the LANDLORD'S receipt o f t h e w r i t t e n n o t i c e ( o r as to any matter that cannot reasonably be cured within such one hundred fifty ( 1 5 0 ) d a y p e r i o d , t h e n LANDLORD shall not be in violation of this Section, if LANDLORD comme n c e s s u c h c u r e w i t h i n t h e one hundred fifty (150) day period and thereafter diligently prosecutes such cu r e u n t i l c o m p l e t i o n ) . I f t h e LANDLORD complies with the laws and regulations within the one hund r e d f i f t y ( 1 5 0 ) d a y p e r i o d , t h e TENANT shall not have the right to terminate the Lease. 20. Security. The TENANT is solely responsible for interior security measures and d e v i c e s f o r t h e Premises. 21. Access. The TENANT shall allow the LANDLORD access to the Premises during r e g u l a r b u s i n e s s hours or at other times mutually agreed to by the Parties for the purposes of i n s p e c t i n g , r e p a i r i n g a n d / o r maintaining the Premises as may be required under this Lease. The LANDLORD shall use its best efforts not to disrupt the usual operations of the TENANT at the Premises. The TENA N T s h a l l a l s o a l l o w t h e LANDLORD access to the Premises at any time in case of an emergency. Given T E N A N T ' S u s e o f t h e Premises as a courthouse, an employee of TENANT may have to escort LANDL O R D o r L A N D L O R D ' S agents or contractors while on the Premises. 22. Siam. The TENANT may attach, install or erect signs on the interior walls o f t h e P r e m i s e s a s necessary for the TENANT'S use of the Premises. The TENANT may not i n s t a l l o r e r e c t a s i g n o n t h e exterior walls of or the area surrounding the Premises without the prior w r i t t e n a p p r o v a l o f t h e LANDLORD and the City of Novi as to the form, content, material, lighting and s t r u c t u r e t h e r e o f . 23. Assienment. The TENANT shall not assign, sublet or in any manner transfer this Lease or an y e s t a t e or interest herein without the prior written consent of the LANDLORD. Notwith s t a n d i n g t h e f o r e g o i n g , i n the event of the State of Michigan, by action of its legislature, takes over and ass u m e s r e s p o n s i b i l i t y f o r t h e 4 14DECO252-1 LEASE-FINAL 05 13.DOC 52/1 District Court or assigns the responsibility for the District Court to another governmental e n t i t y , t h e ENANT may assign its interest in this Lease to the State of Michigan or other governmental e n t i t y , w h i c h shall in writing assume all of the liabilities and obligations of the TENANT under this Leas e . T h e i n t e r e s t of LAN DLORD in the Lease may be sold, conveyed, assigned or otherwise transferred without the c o n s e n t of TENANT, but any such sale, conveyance, assignment or transfer shall be subject to this Lease a n d t h e documents accomplishing such sale, conveyance, assignment or other transfer shall express l y r e q u i r e compliance with all terms and conditions of this Lease. Upon any such transfer of LANDLORD ' s i n t e r e s t in the Lease, LANDLORD shall have no further obligation under the Lease or to TENANT, e x c e p t t o t h e extent any obligation accrued prior to the date of such transfer. 24. Parking. The LANDLORD agrees to provide sufficient parking at the Premises for the TENANT'S use of the Premise, provided, however, that a minimum of 227 parking spaces shall be provi d e d f o r TENANT'S exclusive use. The TENANT may use additional parking spaces, if available. 25. Eminent Domain, if the whole Premises are taken by any public authority under the power of eminent domain, then this Lease shall be terminated on the day the public authority takes poss e s s i o n o f t h e whole Premises. If less than the whole, but more than thirty-five percent (35%) of the Premi s e s a r e t a k e n by any public authority under the power of eminent domain, then either Party may terminate this L e a s e upon thirty (30) days written notice to the other Party. In the event neither Party elects to termina t e t h i s Lease, the Lease shall terminate on the date the public authority takes possession of the Premise s . N e i t h e r Party shall have any future liability or obligation under the Lease if it is terminated under this P a r a g r a p h . 26. Quiet Enjoyment. Upon performance of its obligations under this Lease, the TENANT shall peacefully and quietly hold and enjoy the Premises without hindrance or interruption by the L A N D L O R D , its agents or employees, subject to the terms of this Lease. 27. Modifications. This Lease may be modified or amended only by written agreement of the LANDLORD and the TENANT. 28. Governing Law. This Lease shall be interpreted under and governed by the laws of the State of Michigan. 29. Severabilitv. If a term, condition, or provision of this Lease is found, by a court of competent jurisdiction, to be invalid, unenforceable, or to violate or contravene federal or state law, t h e n t h e t e r m , condition, or provision shall be deemed severed from this Lease; all other terms, conditions a n d p r o v i s i o n s shall remain in full force and effect. 30. Right to Mortgage. The LANDLORD reserves the right to subordinate this lease to the lien of any mortgage now or hereafter upon LANDLORD'S interest in the Premises and on the land and bu i l d i n g s o f which the Premises are part or upon any buildings hereafter placed upon the land of which t h e P r e m i s e s form a part. The l'ENANT agrees to execute and deliver upon demand an instrument or i n s t r u m e n t s subordinating this lease to the lien of any such mortgage or mortgages. TENANT agrees, within t w e n t y (20) days after LANDLORD'S request, to execute an estoppel certificate in a form reasonably accep t a b l e to LANDLORD or any third party relying on said estoppel certificate. 31. Waiver. No waiver of any term, provision or condition of this Lease, whether by conduct or otherwise, in one or more instances, shall be deemed or construed as a further continuing waiver of a term , p r o v i s i o n or condition of this Lease. No remedy available to a Party for the other Party's breach of t h i s L e a s e i s 5 14DECO252-1 LEASE-FINAL 05 13.DOC intended to be an exclusive remedy. A Party's exercise of any remedy for breach of this Lease shall not be deemed or construed to be a waiver of its right to pursue another remedy. 32. Entire Agreement. This Lease constitutes the entire agreement of the Parties with respect to the Premises and all prior negotiations, agreements and understandings, either oral or written, are merged herein. The Current Lease executed by the Parties on April 12, 2005 is terminated and is null and void. 33. Binding Effect. The tenns and conditions of this Lease shall be binding and shall inure to the benefit of the Parties and their respective heirs, representatives, successors and assigns. 34. Use of Words. The pronouns and relative words used in this Lease shall be read interchangeably in masculine, feminine or neuter, singular or plural, as the context requires. 35. Notice. Any notice or other communication required or desired to be given shall be deemed to have been sufficiently given for all purposes if delivered personally to the Party to whom the same is directed, or if sent by registered or certified mail, postage and charges prepaid, addressed to the address of such Party as set forth above. Any notice which is served personally shall be deemed to be given on the date on which the same is actually served, and any notice which is sent by mail shall be deemed given two (2) days after the same is deposited in a regularly maintained receptacle for the deposit of United States mail, addressed as provided in the immediately preceding sentence. Any Party may change its address for purposes of this Lease by giving the other Party written notice of the address change. 36. Reservation of Rights. This Lease does not and is not intended to impair, divest, delegate, or contravene any constitutional, statutory, and/or other legal right, privilege, power, obligation, duty, capacity, or immunity of the IENANT. 37. Default. If the TENANT defaults in any of its obligations under this Lease, the LANDLORD shall have all remedies available to it under the law. 6 14DECO252-1 LEASE-FINAL 05 13.DOC IN WITNESS WHEREOF, the parties hereto have executed this lease as of the day and year above written. HANNAWA NOVI HOLDINGS, LLC (LANDLORD) By: WITNESS Kenny Hannawa Managing Member The foregoing instrument was acknowledged before me this day of Hannawa. ,201 by Kenny Notary Public, State of Michigan, Oakland County, My Commission Expires: Acting in the County of Oakland COUNTY OF OAKLAND, a Michigan Constitutional Corporation (TENANT) By: WITNESS Michael J. Gingell Chairperson, Oakland County Board of Commissioners The foregoing instrument was acknowledged before me this day of , 201 by Michael J. Gingell of the Board of Commissioners on behalf of the County of Oakland. Notary Public, State of Michigan, Oakland County, My Commission Expires: Acting in the County of Oakland 7 14DECO252-1 LEASE-FINAL 05 13.DOC EXHIBIT B The LANDLORD and the TENANT shall perform and/or provide or cause a third party to perform and/or provide the following maintenance, repairs, and services on, about, or to the Premises as set forth below. Item Responsibility of Floor mats for the entries and exists of the structures Pest control for the interior of the structure Custodial services for the interior of the structure and Parking Lot Interior and exterior window cleaning Routine cleaning and minor repair of carpet and floors Restroom fixtures (including toilet paper holders, soap dispensers, paper towel holders, toilets, stalls, sinks and counters) Painting interior walls and doors Ground maintenance and all landscaping (including but not limited to shrubs, trees, flowers, turf and mulch, moving and trimming of such items and related exterior pest management) Snow and ice removal Trash removal for the Premises, including the Parking Lot Fire Extinguishers Light bulb replacement, excluding conversion of light bulbs from TI2 to T8 Alterations or changes to structure requested by TENANT for TENANT'S operation of the District Court Any repair to parts of the plumbing system beyond bathroom fixtures Electrical System maintenance and repair, including but not limited to, wiring, connections, relays, distribution panels, switchgear, or other components of the building electrical system 8 14DECO252-1 LEASE-FINAL 05 13.DOC TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT TENANT LANDLORD LANDLORD Building fire alarm, annunciator panel, lights, strobes, wiring, transformers Building fire suppression system Exit lights, emergency lighting retrofits (excluding light bulb replacement) Exterior Concrete repairs Exterior Masonry repairs Air or moisture penetration thru the building envelope Window and sealing repair or replacement due to weather damage or defect of workmanship only Interior doors, built-in cabinetry, or counter top repair/replacement due to normal wear and tear / usage only Repair/replacement/moving of specialty items (coat hooks, stall and other handrails, broken electrical outlets, switches, etc.) Preventive Maintenance for HVAC (Parties shall draft an agreement to set forth Preventative Maintenance for HVAC) Exterior and interior light fixtures, including T12 to T8 conversions of existing fixtures, as needed Parking lot and sidewalks, including repair and replacement of asphalt and Concrete Heating, ventilation, and air conditioning (HVAC) for the structure Exterior doors, roof, walls, fixtures (other than restroona fixtures), and ceiling of structure beyond interior painting LANDLORD LAN DLORD LANDLORD LANDLORD LANDLORD LANDLORD LANDLORD TENANT TENANT LANDLORD/TENANT LANDLORD LANDLORD LANDLORD LANDLORD CAPITAL IMPROVEMENTS/REPLACEMENTS/RESOLUTION OF INSPECTION FINDINGS The Parties acknowledge that during the first year of this Lease certain capital improvements to the Premises shall be made by LANDLORD, at its sole expense. Those capital improvements to the Premises 9 14DECO252-1. LEASE-FINAL 05 13.DOC include the following: (1) new roof, (2) repairs to the building envelope (tuck pointing, caulking, cleaning, sealing, and window replacements), (3) repairs/replacement of parking lot, and (4) repairs/replacement for HVAC system for the Premises. During the design, selection, and implementation of LANDLORD' s capital improvements/projects, TENANT shall have the right to review all work and documents and offer comments/suggestions. TRIAGE OF CALLS REGARDING MAINTENANCE AND REPAIR ISSUES FOR THE PREMISES TENANT'S Department of Facilities Management shall be responsible for fielding all calls regarding maintenance, repair, and service issues for the Premises. After fielding the call, the Department of Facilities Management shall determine if the maintenance, repair or service issue is the responsibility of the TENANT or LANDLORD pursuant to Exhibit B, C or D. If the Department of Facilities Management determines that the maintenance, repair or service issue is the responsibility of LANDLORD, then the Department shall immediately contact LANDLORD and LANDLORD shall immediately respond and commence maintenance, repair or service. If there is a disagreement between the Parties as to whose responsibility correcting an issue is, then such disagreement shall be communicated to the other Party via a written letter clearly stating the following: (1) what the maintenance, repair or service issue is, (2) why the issue is the responsibility of the other Party, and (3) any other relevant rationale. 10 14DECO252-1 LEASE-FINAL 05 13.DOC EXHIBIT C The LANDLORD and the TENANT shall inspect the Premises prior to signing this Lease. During this inspection, the TENANT and LANDLORD shall create a list that identifies maintenance, repairs, and services to be performed by Landlord. The items identified during the inspection may or may not be listed in Exhibits B and D and inclusion on this initial list shall not in any manner change the responsibilities as set forth in Exhibits 13 and D. The items identified on such list shall be completed or performed within ninety (90) days of the Commencement Date of this Lease and shall include, but not limited to the following: Carpeting: 2012 Phase: Replace carpet throughout court; except lobby; courtroom 2; courtroom 3; and courtroom 4 Clean Judge Bondy's chambers carpet Clean Judge Powers' chambers carpet Repair/replace carpet by Judge MacKenzie's desk Lights: Deliver round, vanity and beam lights for custodial/employee usage Lights Bulbs Needed: Outside women's public restroom Jury assembly Storage by ticket area Probation emergency exit Clerk office Conference room in lobby Screen cover over light in holding Facility/General: Cleaning air vents through court Door hinge repair when entering Judge Bondy courtroom Soap installation in jury assembly bathroom; jury assembly between chambers Repair dry wall; large hole in filing storage Spray for insects; ant problem currently Rust removal by Judge Bondy exit; probation offices exit; clerk exit exit and clerk exit Hole in wall by lobby probation; also door hinge repair Window washing Toilet leakage in women's staff bathroom; and urinal in men's public bathroom Painting as needed by wall marks and dry wall repair Security Issue: 11 14DECO252-1 LEASE-FINAL 05 13.DOC Fix employee entrance doors—doors not shutting completely 12 14DECO252-1 LEASE-FINAL 05 13.DOC EXHIBIT D The following service levels shall apply to the responsibilities set forth in Exhibit B.: Janitorial (custodial services are not required on observed District Court holidays) Carpet Cleaning / Shampooing — accidents/spots M-F Carpet Cleaning / Shampooing — general/overall Semi-annual Carpet-Vacuuming Bi-weekly Spot Clean M-F (furniture, walls, carpeting, partition glass, wall switch plates, door hardware, etc.) Empty, Clean, and Reline Waste Containers with Plastic Liners M-F Empty Recycled Paper Bins Weekly Dumpster Weekly minimum Clean and Refill Paper Towel/Soap Dispensers M-F Dust Mop / Damp Mop Floor with Germicidal Disinfectant M-F Hard Surface Stripping and Waxing (Floors) — general/overall Annual Empty / Clean Interior of Refrigerators with Germicidal Disinfectant As needed Wash / Scrub Sinks and Fixtures with Germicidal Disinfectant M-F Clean / Disinfect Phones Weekly Dust/Wash Vertical Surfaces Weekly (furniture, equipment, hand rails, window ledges, kick plates, Venetian blinds, partition glass, wall switch plates, door hardware, etc.) Desk / Counter / Chair Mats Cleaning Weekly Vacuum Upholstered Chairs Monthly Air Vent / Grill Cleaning Qrtly. Window Cleaning — interior Qrtly. Window Cleaning — exterior Semi-annual Provide / Clean Floor Mats Weeldy Respond to Complaints Two hours Comply with District Court Standards for, and Provision of Supplies Daily (restroom and break room paper products, tissue, hand soap / sanitizer, personal hygiene products, etc.) Pest Control As needed Rodents, Insects Preventative Services Additional Services U.S. Department of Agriculture Certification Integrated Pest Management Practices Respond to Complaints Two hours Mechanical / HVAC Mechanical / HVAC Inspections / Coil Cleaning / Belts / System Mods Air Filter Changes Day-to-Day Maintenance Supplies Seasonal Start-up/Inspection OSHA Safety Testing Michigan Boiler Inspections / Certifications Monthly Qrtly. M-F Semi-annual Annual Per code 13 14DECO252-1 LEASE-FINAL 05 13.DOC Testing of Water Treatment Testing / Certification (back flow preventers — lawn irrigation, etc.) Remote Control of All Room Temperatures Respond to High / Low Temperature Complaints Electrical Lamp / Ballast Replacement Clean Fixtures / Lenses Misc. PM and Testing Respond to Complaints Security / Life Safety Fire Extinguisher Inspections / Tagging Door / Window Inspections (closing securely, locked from outside, etc.) Panel and Alarm Testing Monitor Building Alarms Respond to Complaints Qrtly. Qrtly. Daily Two hours As needed Semi-annual Monthly Two hours Monthly / Annual Weekly Monthly Daily Two hours Building Envelope / Roof! Pavement Inspection of Building Envelope / Roof Spring/Fall/After storms (coping, flashing, mortar joints, caulking joints, wall surfaces inside and out, etc.) Building Envelope / Roof Repairs As needed Pavement Repairs (crack seal, re-striping, leveling, curb/sidewalk/ lot) As needed Leaks / Respond to Complaints Two hours Grounds General Clean Up Bi-weekly Seasonal Opening! Winterization of Irrigation System Semi-annual Weeding Weekly Mulching Annual and as needed Tree & Shrub Feeding / Trimming As needed Fertilizing Four times/year Mowing / Edging / Removal of Clippings Weekly Flower / Other Planting Annually Emptying of External Trash Cans / Smoking Urns, etc Bi-weekly Parking Lot Sweeps Bi-weekly Walkway Sweeps Bi-weekly Bed Work Bi-monthly (maintain a neat appearance, cultivate soil areas, provide soil hydration and weed control, trim soil edged beds) Other Procedures As needed (chemical turf weed controls, irrigation system repairs/maintenance, aerating, power raking, leaf removal, soil conditioning, pest control, late season mowings) Snow Removal / Salting As needed (keep entrances, walks, and lots clear of snow and ice to minimize risk of accidents / injuries; snow plowing required when snow fall exceeds 1.5 inches) 14 14DECO252-1 LEASE-FINAL 05 13.DOC Respond to Complaints Two hours Signage — Internal As needed Painting & Decorating Rotating / five years Material Safety Data Sheets On-going 15 14DECO252-1 LEASE-FINAL 05 13.DOC FISCAL NOTE (MISC . #14297) December 11,2014 BY: FINANCE COMMITTEE, TOM MIDDLETON, CHAIRPERSON IN RE: FACILITIES MANAGEMENT — LEASE AMENDMENT #1 FOR 52-1 NOVI DISTRICT COURT TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS Chairperson, Ladies and Gentlemen: Pursuant to Rule XII-C of this Board, the Finance Committee has reviewed the above referenced resolution and finds: 1. The resolution approves and authorizes the terms and conditions of the Lease Amendment #1 between the County (Tenant) and Hannawa Novi Holdings, LLC (Landlord) for the 52-1 Novi District Court. 2. The Lease (specifically Exhibit C) required that the parties draft an agreement to set forth preventative maintenance responsibilities for the HVAC system. 3. All preventative maintenance for the HVAC system shall be performed and paid for by the Landlord. 4. The County will reimburse actual costs of the preventative maintenance to the Landlord subsequent to Facilities Management obtaining and reviewing all related invoices detailing labor hours, rates, and material costs excluding any administrative or service fees from the Landlord. 5. Facilities Maintenance and Operations will rebill the invoiced costs to the 52-1 Novi District Court as Maintenance Department Charges. 6. Sufficient funds are available in the FY 2015 Facilities Maintenance and Operations Fund for sublet repairs. Maintenance Department charges for General Fund/General Purpose departments, including 52-1 Novi District Court are included in the Non-Departmental General Fund budget. 7. No budget amendment is required. FINANCE COMMITTEE VOTE: Motion carried unanimously on a roll call vote with Long and Quarles absent. Resolution #14297 December 11, 2014 Moved by Crawford supported by McGillivray the resolutions (with fiscal notes attached) on the amended Consent Agenda be adopted (with accompanying reports being accepted). AYES: Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Hoffman, Jackson, Long, Matis, McGillivray, Middleton, Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic, Crawford. (20) NAYS: None. (0) A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended Consent Agenda were adopted (with accompanying reports being accepted). HEREBY APPROVE THIS RESOLUTION CHIEF DEPUTY COUNTY EXECUTIVE ACTING PURSUANT TO MCL 45.559A (7) STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and accurate copy of a resolution adopted by the Oakland County Board of Commissioners on December 11th , 2014, with the original record thereof now remaining in my office. In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at Pontiac, Michigan this 11 th day of December 2014.