HomeMy WebLinkAboutResolutions - 1998.09.03 - 25558September 3, 1998
FaENDFCT (Misc. #98208)
BY: PUBLIC SERVICE COMMITTEE - DAVID L. MOFFITT, CHAIR
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - LEASE RENEWAL FOR
COMMUNITY MENTAL HEALTH AT UNITED WAY OF OAKLAND COUNTY
BUILDING, 50 WAYNE STREET, PONTIAC, MICHIGAN:
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
The Public Services Committee, having reviewed the above referenced resolution
on August 25, 1998, recommends that the resolution be adopted.
Chairperson, on behalf of the Public Services Committee, I move the acceptance
of the foregoing Report.
PUBLIC SERVICES COMMITTEE
Public Services Committee Vote:
Motion carried on unanimous roll call vote with Obrecht absent
MISCELLANEOUS RESOLUTION 1198208 September 3, 1998
PANNING AND BlittOING COMMITTEE
BY: PLANNING AND BUILDING COMMITTEE - CHARLES E. PALMER, CHAIRPERSON
In RE: DEPARTMENT OF FACILITIES MANAGEMENT - LEASE RENEWAL FOR COMMUNITY MENTAL
HEALTH AT UNITED WAY OF OAKLAND COUNTY BUILDING, 50 WAYNE ST., PONTIAC, MI
TO: OAKLAND COUNTY BOARD OF COMMISSIONERS,
CHAIRPERSON, LADIES, AND GENTLEMEN:
WHEREAS, the North Oakland Family Mental Health Center is presently leasing 6,572 square feet
in the basement and first floor of the United Way Building, located in the City of Pontiac; and
WHEREAS, the original lease of the facility provided for 19 staff and there are now 31 staff housed
at this site; and
WHEREAS, due to the additional work load assigned to this agency through the placement of the
Services for Children with Developmental Disabilities program, and the continued expansion of existing
programs, dictates the expansion of this facility in offices and additional work space, and additional
employees; and
WHEREAS, the United Way of Oakland County has made available additional square footage on
the second floor of this building to meet the demand for additional square footage and employees; and
WHEREAS, the Oakland County Department of Facilities Management has negotiated with the
United Way of Oakland County for a total space of 9,733 square feet which includes the first and second floors
of the United Way of Oakland Building; and
WHEREAS, the base rate of $11.75 per square foot per year, not to exceed a rental increase of 5%
per year, which represents fixed cost (utilities, maintenance, and janitorial), which shall be payable to the
United Way of Oakland County in equal monthly installments of $9,530.23. This amount shall include all
utilities, maintenance, and janitorial services as well as free parking; and
WHEREAS, the term of this lease shall be for a five-year period; and
WHEREAS, The Community Mental Health Services Board approves and recommends this lease
agreement and the allocation of funds; and
WHEREAS, the Department of Facilities Management, along with Corporation Counsel, have
reviewed the proposed lease renewal; and
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners approves
this five year lease renewal for 9,733 square feet at a base rate of $11.75 per square foot per year, not to
exceed a rental increase of 5% per year, which represents fixed cost (utilities, maintenance, and janitorial),
which shall be payable to the United Way of Oakland County in equal monthly installments of $9,530.23. This
amount shall include all utilities, maintenance, and janitorial services as well as free parking for the United
Way of Oakland County Building, 50 Wayne Street, Pontiac, Michigan 48342.
BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners directs its
chairperson or designee to execute the necessary documents to effect the same.
Mr. Chairperson, on behalf of the Planning and BuilcjietrSommitte , I re doption of the
foregoing resolution.
P&B Committee Vote:
Motion carried unanimously on a roll
call vote with Amos absent.
. ,
UNITED WAY of OAKLAND COUNTY
50 WAYNE STREET
PONTIAC, MICHIGAN 48342
PROPERTY LEASE
(1) THIS LEASE made this day of by and
between United Way of Oakland County, the Lessor, hereinafter designated as the Landlord, and The County
of Oakland on behalf of The Oakland County Community Mental Health Services Board, the Lessee,
hereinafter designated as the Tenant.
Description
Term
Rent
Cancellation
(2) WITNESSETH: The Landlord, in consideration of the rents to
be paid and the covenants and agreements to be performed by the Tenant,
does hereby lease unto the Tenant the following described premises situated in the
City of Pontiac, Oakland County, Michigan: First Floor and second floor space of
the United Way building located at 50 Wayne Street, totaling 9,733 square feet.
(3) The term of this lease shall be 60 months commencing on September 1,
and ending August 31.
(4) From the Commencement Date of this Lease until the date 24 months
after such Commencement Date, Tenant agrees to pay to Landlord as fixed annual
rent hereunder, One hundred and fourteen thousand, three hundred and sixty-two
dollars and 75/100 per year, which is based on a rate of eleven dollars and 75/100
($11.75) per square foot per year; which sum shall be payable by Tenant to Landlord
in equal monthly installments of nine thousand, five hundred and thirty dollars and
23/100 ($9,530.23), due and payable on the first day of each month.
From the date 24 months after the Commencement Date, until the
conclusion of the term of this Lease, Landlord shall have the option of increasing
Tenant's fixed annual Rent for each succeeding year. Additional rent may not
increase more than 5% over the rent for the immediately preceding year. Upon
request, the Landlord shall demonstrate to the Tenant, justification of rent increases
based upon increases in the cost of electricity, heat, cooling, water, maintenance
and the like.
The Tenant hereby hires the said premises for the said term as above
mentioned and covenants well and truly to pay, or cause to be paid unto the Landlord
at the dates and times above mentioned, the rent above reserved.
(5) Tenant shall pay his rental obligations under this lease from funds
lawfully appropriated to it for this purpose. In the event that appropriations are
made with the prohibition against the use for this lease, or in the event that
the State funding for Tenant is terminated or reduced to the extent that, in Tenant's
judgment the program for which the premises have been leased must be closed,
Tenant may cancel this lease upon 180 days prior written notice to Landlord.
Partial Month Rent (6) Should the Original Term of this Lease commence on a day other than
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the first day of a calendar month, then the rental for such month and the last month
of the term hereof shall be prorated upon a daily basis based upon a thirty (30) day
calendar month.
Holding Over
Assignment
(7) In the event Tenant holds over after the expiration of the Original Term
of this Lease without a written agreement between Landlord and Tenant to further
extend the term of the Lease, the same shall be construed to be a tenancy from
month-to-month on the same terms and conditions herein specified. It is the
intention of the Parties to enter into discussions for the extension of this Lease into
a second term upon terms and conditions mutually agreeable to the Parties.
(8) The Tenant covenants not to assign or transfer this lease or hypothecate
or mortgage the same or sublet said premises or any part thereof without the written
consent of the Landlord, except in the event that Oakland County Community
Mental Health becomes a Community Mental Health Authority, at which time the
lease is automatically assigned to Oakland County Community Mental Health as
an Authority. Any assignment, transfer, hypothecation, mortgage or subletting
without said written consent shall give the Landlord the right to terminate his lease
and to re-enter and repossess the leased premises.
Use and (9) It is understood and agreed between the parties hereto that said
Occupancy premises during the continuance of this lease shall be used and occupied for
a service to people as an Agency supported in part by United Way, and for no other
purpose or purposes without the written consent of the Landlord, and that the Tenant
will not use the premises for any purpose in violation of any law, municipal
ordinance or regulation, and that on any breach of this agreement the Landlord may
at his option terminate this lease forthwith and re-enter and repossess the leased
premises.
Destruction of (10) In the event the Premises are partially or totally damaged or Premises
destroyed by fire or other casualty, the damage to the Premises shall be promptly
repaired or rebuilt by Landlord, unless Landlord shall elect not to rebuild as
hereinafter provided, and the rent payable by Tenant hereunder shall be reduced in
proportion to the fraction of the Premises rendered untenantable until the Premises
are repaired or rebuilt. Provided however that if Tenant shall fail to adjust its own
insurance or to remove its damaged goods, wares, equipment or property within a
reasonable time, and as a result thereof the repairing and restoration is delayed, there
shall be no abatement of rent during the period of such resulting delay, nor shall such
resulting delay accrue in the calculation of Tenant's waiting period for exercising
its termination option. In no event shall Landlord be required to repair or replace
any property of Tenant. In the event the Premises cannot be repaired or rebuilt
within one hundred eighty (180) days after such destruction, Tenant shall have the
right to terminate this Lease and vacate the Premises upon written notice to Landlord
after the expiration of such one hundred eighty (180) day period. If more than thirty-
five percent (35%) of the Premises are damaged or destroyed by such casualties as
aforesaid, Landlord may elect to either repair or rebuild the Premises or to terminate
this Lease by giving written notice thereof to Tenant within ninety (90) days after
the occurrence of such damage or destruction.
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Repairs
Insurance
(11) Landlord shall maintain and keep in good repair the roof, ceilings,
walls, floors, foundations, electrical systems, plumbing, sidewalks, parking
areas, exterior glass, heating and cooling systems at the Premises and common area
but not the inside doors, door frames, the window glass, window casings, window
frames, windows or any of the appliances or appurtenances of said doors or window
casings, window frames and windows, or any attachment thereto or attachments to
said building or premises used in connection therewith. Maintenance does not
include painting or decorating of the interior of Tenant's premises.
(12) Landlord shall maintain commercial general liability insurance with
respect to the Premises, at its own expense, in the minimum amount of One Million
and 00/100 Dollars ($1,000,000.00) combined single limit coverage per occurrence.
Landlord shall provide Tenant with an appropriate Certificate of Insurance
evidencing such insurance coverage as aforesaid. Tenant shall maintain commercial
general liability insurance or self-insurance with respect to the Premises, at its own
expense, in the minimum amount of One Million and 00/100 Dollars $1,000,000.00)
combined single limit coverage per occurrence for claims arising out of the use of
the leased premises caused by the negligence of the Tenant, its employees or agents.
In addition to the foregoing, Tenant shall also maintain a policy of fire and casualty
insurance covering Tenant's contents therein or self-insurance. Tenant and
Landlord mutually agree to have their property insurance companies endorse
their respective policies and issue policy endorsements evidencing the mutual
waiving of the right of subrogation against the opposing party for losses which
are covered under the policy of fire/property insurance. Tenant will supply
Landlord with a Letter of Self Insurance.
Repairs and (13) Except as provided in Paragraph 10 hereof, the Tenant further
Alterations covenants and agrees that will, at its own expense, during the continuation
of this lease, keep the said premises and every part thereof in as good repair and at
the expiration of the term yield and deliver up the same in like condition as when
taken, reasonable use and wear thereof and damage by the elements excepted. The
Tenant shall not make any alterations, additions or improvements to said premises
without the Landlord's written consent, and all alterations, additions or
improvements made by either of the parties hereto upon the premises, except
movable office furniture and trade fixtures put in at the expense of the Tenant, shall
be the property of the Landlord, and shall remain upon and be surrendered with the
premises at the termination of this lease.
The Tenant may, at its own expense, paint the walls using colors of its
choice. However, the Tenant will be responsible for restoring all walls to the pre-
lease existing colors.
The Tenant covenants and agrees that if the demised premises consists of
only a part of a structure owned or controlled by the Landlord, the Landlord may
enter the demised premised at reasonable times and install or repair pipes, wires and
other appliances or make any repairs deemed by the Landlord essential to the use and
occupancy of other parts of the Landlord's building.
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Eminent (14) In the event that eminent domain proceedings should be instituted
Domain which would take all or any part of the leased premises, the Landlord shall
have the right to terminate this lease at any time it deems appropriate. Any
and all awards of damages for such taking, including any damages attributable
to Tenant's leasehold interest, shall belong to the Landlord.
Care of Premises
Lawful Compliance
Condition
Re-Renting
(15) The Tenant shall not perform any act or carry out any practices which
may injure the building or be a nuisance or menace to other tenants in the building.
The Landlord shall be responsible for the collecting of paper waste, cleaning ash
trays, vacuuming carpet areas as needed, cleaning halls, restrooms and common
areas. Landlord agrees to provide maintenance of mechanical and electrical systems
including such items as heating/cooling adjustments, light bulb replacements, leaky
faucet and clogged drain repairs, etc. Landlord is also responsible, at its own
expense, for trash removal, snow and ice removal from sidewalks, steps and parking
areas, complete parking lot maintenance, lawn care services, and complete janitorial
services.
(16) Landlord agrees to be responsible for the exterior and common
elements of the premises as well as the building and structural soundness of same.
To this end, Landlord agrees at its own expense to promptly comply with all
applicable Federal, State and Municipal laws and regulations effecting those portions
of the premises mentioned above, including any barrier free requirements. If
Landlord fails to comply with such laws and regulations, Tenant may give Landlord
written notice of its intent to quit the premises upon the date ninety (90) days after
Landlord's receipt of such notice. In the event Landlord does not comply with such
laws and regulations within said ninety (90) day period, Tenant may quit the
premises.
Tenant agrees for the leasehold premises, at its own expense, to promptly
comply with all applicable, Federal , State and Municipal laws and regulations
effecting the leasehold premises including any barrier free requirements.
(17) The Tenant further acknowledges that Tenant has examined the of
leased premises prior to the making of this lease, and knows the condition thereof,
and that no representations as to the condition or state of repairs thereof have been
made by the Landlord, or his agent, which are not herein expressed, and the Tenant
hereby accepts the leased premises in their present condition at the date of the
execution of this lease.
(18) The Tenant hereby agrees that for a period commencing 90
days prior to the termination of this lease, the Landlord may show the premises
to prospective Tenants, and 60 days prior to the termination of this lease, may
display in and about said premises and in the windows thereof, the usual and
ordinary "TO RENT" signs.
Gas, Water (19) The Landlord will pay all charges made against said leased
Heat
premises for gas, water, heat and electricity the continuance of this lease, as Electricity
the same shall become due. It will be the responsibility of the Tenant to keep
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Advertising
Access to Premises
all outside windows and doors closed when the heating or cooling units are
in operation.
(20) It is further agreed that all signs and advertising displayed in and Display
about the premises shall be such only as advertise the business carried on upon
said premises, and that the Landlord shall control the character and size thereof, and
that no sign shall be displayed excepting such as shall be approved in writing by the
Landlord, and that no awning shall be installed or used on the exterior of said
building unless approved in writing by the Landlord.
(21) Tenant shall allow Landlord access to the Premises at all reasonable
times for the purposes of inspecting, repairing and/or maintaining the Premises;
provided, however, that Landlord shall use its best efforts not to disrupt the usual
operations of Tenant at the Premises. In addition to the foregoing, Tenant shall allow
Landlord access to the Premises at any time in the event of an emergency. If the
Landlord deems any repairs necessary, he will demand that the Tenant make the same
and if the Tenant refuses or neglects forthwith to commence such repairs and
complete the same with reasonable dispatch, the Landlord may make or cause to be
made such repairs and shall not be responsible to the tenant for any loss or damage
that may accrue to by reason thereof and if the Landlord makes or causes to be made
such repairs, the Tenant agrees that it will forthwith on demand pay to the Landlord
the cost thereof with interest at the rate of 7% per annum. Prior to the commencement
date of this Lease, Tenant agrees to provide Landlord with written notice indicating
the name, address and telephone number of Tenant's representative who will provide
Landlord with access to the Premises in emergency situations.
Quiet (22) The Landlord covenants that the said Tenant, on payment of all the
Enjoyment aforesaid installments and performing all the covenants aforesaid, shall and
may peacefully and quietly have, hold and enjoy the said demised premises
for the term aforesaid.
Remedies (23) It is agreed that each and every one of the rights, remedies and Exclusive
benefits provided by this lease shall be cumulative, and shall not be exclusive
of any other of said rights, remedies and benefits, or of any other rights,
remedies and benefits allowed by law.
Waiver (24) One or more waivers of any covenant or condition by the Landlord shall
not be construed as a waiver of a further breach of the same covenant or condition.
Delay of (25) It is understood that if the Tenant shall be unable to enter into and
Possession occupy the premises hereby leased at the time above provided, by reason of
the said premises not being ready for occupancy, or by reason of the holding
over of any previous occupant of said premises or as a result of any cause or
reason of any previous occupant of said premises or as a result of any cause
or reason beyond the direct control of the Landlord, the Landlord shall not be
liable in damages to the Tenant therefor, but during the period the Tenant shall
be unable to occupy said premises as hereinbefore provided, the rental therefor
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shall be abated and the Landlord is to be the sole judge as to when the
premises are ready for occupancy.
Notices (26) Any notice or other communication required or desired to be given
hereunder 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 acetified
mail, postage and charges prepaid, return receipt requested, addressed to the address ofsuch
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 notice thereof in the manner hereinbefore provided for the giving
of notices.
Use of Words (27) It is agreed that in this lease the word "he" shall be used as
synonymous with the words "she", "it" and "they", and the word "his" synonymous
with the words "her", "its" and "their".
Binding (28) The covenants, conditions and agreements made and entered into by
the parties hereto are declared binding on their respective heirs, successors,
representatives and assigns.
Tenant Access (29) The Tenant shall be granted immediate and unlimited access to agreed
upon lease space at all dates and times of this lease. To achieve this end, the Tenant
will be granted limited access to the building security system. It is the responsibility
of the Tenant to abide by all necessary security precautions to maintain the security
of all building Tenants. The Tenant will be financially responsible for any
unauthorized police, fire, or emergency personnel building visits caused by the
Tenants' misuse or abuse of the security system. Continued misuse of the building
security system could result in the discontinuation of this unlimited access.
Parking (30) Landlord agrees to provide at its expense sufficient parking for
Lessee's employees in Landlord's lot immediately west of the premises in the
amount of no less than 30 parking spaces.
Signage (31) Tenant shall have the right to install or erect signs within the
windows fronting Wayne Street which signs shall be of sufficient size to indicate
the presence of Lessee and its functions; and Tenant shall have the right to
install or erect a sign within the exterior wall of the leased premises announcing
the entry into Tenant's offices. Tenant shall the right to erect such interior
signs on both the first and second floors of the leased premises.
Repossession (31) In the event that the Landlord shall during the period covered by this
By Landlord lease obtain possession of said premises by re-entry, summary proceedings or
otherwise, except pursuant to the terms and conditions contained paragraph 5
(Cancellation) the Tenant hereby agrees to pay the Landlord the expenses incurred
by Landlord in obtaining possession of said premises.
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Entire Agreement
Modifications
Governing Law
Severabi lity
(32) This Lease and the Exhibits attached hereto constitute the entire
agreement of the parties hereto with respect to the Premises, and all prior
negotiations, agreements and understandings, either oral or written, are hereby
merged herein.
(33) This Lease may be modified or amended only by the written agreement
of Landlord and Tenant.
(34) This Lease shall be interpreted under and governed by the laws of the
State of Michigan.
(35) If any provisions of this Lease, or the application thereof, to any extent
become invalid or unenforceable, the remainder of this Lease, or the application of
such provision to the parties or circumstances other than those to which it is invalid
or unenforceable, shall not be affected thereby, and each provision of this Lease shall
be valid and enforceable to the fullest extent permitted by law.
Additional (36) Upon acceptance of this Lease Agreement by Tenant and Landlord,
Provisions the Landlord agrees within ninety (90) days to complete the work ordered for the (if
any) first and second floor intended to bring those areas into compliance with Federal,
State and local building codes. Details of such work ordered to be completed can
be found on the attached Addendum A.
IN WITNESS WHEREOF, The parties have hereunto set their hands and seals the day and year first above
written.
WITNESSED BY: United Way of Oakland County
by:
its:
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WITNESSED BY: Oakland County Community Mental
Health Services Board
by:
its:
a:WWLeas3.oinh
DMAYDIA 199tA\GWMAIL8 \SAVE \ UWAY_LS9.MAF
Subscribed and sworn to before me this day of , 1998.
Notary Public, Oakland County,
Michigan
My Commission Expires:
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ADDENTMLNIA
Work to be completed upon commencement of Lease:
1. The electrical work
Fire and emergency lights
2. Sprinkler Installation
First floor
Basement
3. Door and Frame installation
On all floor stairwells
17,I *
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IN 4
FISCAL NOTE (Misc. #98208) September 3, 1998
BY: FINANCE COMMITTEE, SUE ANN DOUGLAS, CHAIRPERSON
IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - LEASE RENEWAL FOR COMMUNITY MENTAL
HEALTH AT UNITED WAY OF OAKLAND COUNTY BUILDING 50 WAYNE ST., PONTIAC, MI
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-F of this Board, the Finance Cuttiturcee has reviewed
the above referenced resolucion and finds:
1. The resolution requests authorization and approval of an agreement
to lease two floors of the United Way Building at 50 Wayne Street,
in Pontiac, Mi to Community Mental Health (CMH) for a period of five
years, with an option to renew the lease for an additional five
years.
2. The 5 year lease extension also incorporates additional square
footage from 6,527 sq. ft. to 9,733 sq. ft., to accommodate
additional staff and consumer work load, under the tentative lease
agreement CMH would pay a base rate of $11.75 per sq. ft. adjustable
yearly by a not to exceed increase amount of 5% per year necessary
to recover all maintenance and operating expenses for the facility.
3. CMH has agreed to pay $9,530.23 per month lease payments, for a
total of $114,362.75 per year.
4. The lease agreement would commence 10/1/98 and extend through Sept.
30, 2003
FINANCE COMMITTEE
FINANCE COMMITTEE VOTE:
Motion carried unanimously on a roll call vote.
op I 11. • ••
Resolution #98208 September 3, 1998
Moved by Palmer supported by Amos the Public Services Committee Report be
accepted.
A sufficient majority having voted therefor, the report was accepted.
Moved by Palmer supported by Amos the resolution be adopted.
Moved by Palmer supported by Moffitt the resolution be amended in the first
WHEREAS paragraph to add the words "the County of Oakland on behalf" after the
word "WHEREAS", so the paragraph reads:
WHEREAS the County of Oakland on behalf of the North Oakland Family
Mental Health Center is presently leasing 6,572 square feet in the
basement and first floor of the United Way Building, located in the City
of Pontiac; and
A sufficient majority having voted therefor, the amendment carried.
Vote on resolution, as amended:
AYES: Johnson, Kaczmar, Kingzett, Law McCulloch, Millard, Moffitt,
Obrecht, Palmer, Schmid, Taub, Amos, Coleman, Dingeldey, Douglas, Garfield,
Gregory, Hoffman, Holbert, Huntoon, Jacobs, Jensen. (22)
NAYS: None. (0)
A sufficient majority having voted therefor, the resolution, as amended,
was adopted.
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lynn D. Allen, 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 September 3, 1998 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 3rd day t t_:::57100047.:„
Lyn h D. Allen, County Clerk