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HomeMy WebLinkAboutResolutions - 2005.04.28 - 27765MISCELLANEOUS RESOLUTION #05075 April 14, 2005 BY: Planning and Building Committee, Charles E. Palmer, Chairperson IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH WHITE OAKS PROPERTIES FOR USE OF OFFICE SPACE AT 2805 PONTIAC LAKE ROAD, WATERFORD, MICHIGAN To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Oakland County Department of Risk Management is presently housed in leased office space at 2805 Pontiac Lake Road, Waterford, Michigan; and WHEREAS, the Department of Risk Management is scheduled to be relocated to Oakland County Building 41 West in approximately eighteen months or upon completion of renovations; and WHEREAS, under the terms and conditions of the attached Lease Agreement, the Department of Risk Management will continue to occupy approximately 2,203-sf of office space on the second floor of the premises for a period of eighteen months at the present rental rate of $2,937.33 per month or $35,248 per year, and WHEREAS, it is the recommendation of the Department of the Facilities Management that the Oakland County Board of Commissioners accept and approve the terms and conditions of the attached Lease Agreement, and; WHEREAS, the Departments of Facilities Management and Corporation Counsel have reviewed and/or prepared all necessary documents related to the attached lease agreement. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Lease Agreement for use of office space at 2805 Pontiac Lake Road, Waterford, Michigan between the County of Oakland and White Oaks Properties. BE IT FURTHER RESOLVED that the County of Oakland Board of Commissioners hereby directs its Chairperson or his designee to execute the attached Lease Agreement and all other related documents between the County of Oakland and White Oaks Properties, which may be required. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. IN G AND BUILD COMMITTEE Al10 Ã L Charles E. Palmer, — airperson PLANNING & BUILDING COMMITTEE: Motion carried unanimously on a roll call vote with Potter and Palmer absent. LEASE This Lease is made and entered into on the day of , 2005, by WHITE OAKS PROPERTIES, 2805 Pontiac Lake Road, Waterford, Michigan 48328 (hereinafter "LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341 (hereinafter "TENANT"). 1. Leased Premises. 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 rents from the LANDLORD portions of the Office Building located at 2805 Pontiac Lake Road, Waterford, Michigan, containing approximately 2,203 square feet of space (hereinafter "Premises"). 2. Term. The Term of this Lease shall commence on April 30, 2005 ("Commencement Date") and shall end eighteen (18) months after the Commencement Date. TENANT, at its option, may extend this Term, at the same rent set forth in Paragraph 3, for up to two (2) years on a month to month basis. 3. Rent. From the date this Lease commences until the Lease expires or is terminated, the TENANT agrees to pay the LANDLORD sixteen dollars ($16.00) per square foot of the Premises, approximately Thirty-Five Thousand Two Hundred Forty-Eight Dollars and 00/100 ($35,248.00) per year. This sum includes all utilities, all maintenance, snow removal, lawn maintenance, trash removal, storage space, and all taxes for the Premises. 4. Termination, Notwithstanding Paragraph 2 (or any other term of this Lease) should the Oakland County Board of Commissioners remove or revoke funding for this Lease, then TENANT shall have the right to cancel this Lease upon sixty (60) days written notice to the LANDLORD with no penalty whatsoever. 5. Partial Month Rent Proration. Should the Term of this Lease commence on a day other than the first calendar day of a month, then the Rent for such month and the last month of the Term shall be prorated upon a daily basis based upon a thirty (30) day calendar month. 6. 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 Paragraph 3 of this Lease shall be paid on a quarterly basis, such quarterly rental payment shall be paid on the first calendar day in the quarter. All other payments due under this Lease shall be paid on a date mutually agreed upon by the LANDLORD and the TENANT. 7. Holding Over. In the event the TENANT holds over after the expiration of the original Term 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 1 and conditions contained in this Lease, except that the Rent to be paid by the TENANT to the LANDLORD shall be equal to 110% of the Rent contained in Paragraph 3 of this Lease. 8. Use and Occupancy. The Premises shall not be used in violation of any law, municipal ordinance, or regulation. 9. 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. 10. Taxes. All taxes are included in the rental payments due under Paragraph 3 of this Lease. 11. Maintenance and Repairs. The LANDLORD shall maintain and keep the Premises in good repair, including, but not limited to, the roof, ceilings, walls, floors, foundations, electrical systems, plumbing, sidewalks, parking areas, exterior glass, and the heating and cooling systems. 12. Utilities and Services. The LANDLORD shall be solely responsible for and promptly pay all utilities including water, gas, heat, electricity, sewer service and any other utility used or furnished to the TENANT. The TENANT agrees to pay all charges for janitorial services and costs and fees associated with the telephone system and computer system. The LANDLORD agrees to provide, at its own expense, trash removal, snow and ice removal from sidewalks, steps and parking areas, complete parking lot maintenance and lawn care services. 13. Compliance with Law. The LANDLORD agrees, at its own expense, to promptly comply with all applicable federal, state and municipal laws and regulations affecting the Premises, including any barrier-free requirements. If the LANDLORD fails to comply with such laws and regulations, the TENANT may give the LANDLORD written notice of its intent to terminate the Lease one hundred fifty (150) days after LANDLORD'S receipt of the written notice. If the LANDLORD complies with the laws and regulations within the one hundred fifty (150) day period, the TENANT shall not have the right to terminate the Lease. 14. 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 repaired or rebuilt by the LANDLORD. If the LANDLORD elects not to rebuild or repair the Premises, then the Rent owed by the TENANT shall be reduced in proportion to the fraction of the Premises rendered unusable (in the discretion of the TENANT) until the Premises are repaired or rebuilt. In the event the Premises cannot be repaired or rebuilt within one hundred eighty (180) days after such destruction, the 'l ENANT shall have the right to terminate this Lease and vacate the Premises upon written notice to the 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 a casualty, the LANDLORD may elect to either repair or rebuild the Premises, or to terminate this Lease by giving 2 written notice to the TENANT within ninety (90) days after the occurrence of such damage or destruction. In no event shall the LANDLORD be required to repair or replace any property of the TENANT. 15. Insurance. a. $1,000,000 combined Single Limit Commercial General Liability with a $1,000,000 annual aggregate. The policy shall be equivalent to ISO form CG00010196 with endorsements and/or the following coverages as minimums: Products and completed operations - Broad form property damage - Premises/Operations - Independent contractors (Blanket) Broad form contractual - Personal injury - Exclusions CG2142 and CG2143 will not apply Additional Insureds-The County of Oakland, its elected and appointed officials employees and volunteers. b. Worker's Compensation as required by law: $100,000 Employer's Liability c. 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. d. With regard to the premises and/or contents, to the extent that a loss is covered by insurance, the LANDLORD agrees that the TENANT (his agents and/or employees) shall not be liable to the LANDLORD and the LANDLORD shall not be liable to the TENANT for any loss resulting directly or indirectly from fire, explosion, smoke damage, vehicle damage, aircraft damage, riot and civil commotion, vandalism and malicious mischief, or other similar event, 16. Indemnification. 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), penalties, fines and claims whatsoever in connection with loss of life, personal injury and/or damage to property arising from any negligent or willful acts or omissions of the LANDLORD, its agents or employees. 17. Alterations or Improvements. The TENANT shall not make any alterations or improvements to or upon the Premises without the prior written consent of the LANDLORD. 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, 3 unless agreed to in writing by the parties. 18. Security. The TENANT acknowledges that during this Lease, the LANDLORD has the right to have keys for access to the Premises upon written request by the LANDLORD. The LANDLORD shall use the keys only for inspecting, repairing and/or maintaining the Premises. The LANDLORD agrees to provide lighting for the interior and exterior of the Premises, including parking areas directly adjacent to the Premises, in an adequate manner consistent with other similar office buildings in the metropolitan Detroit area. 19. Access. The TENANT shall allow the LANDLORD access to the Premises during regular business hours for the purposes of inspecting, repairing and/or maintaining the Premises. The LANDLORD shall use its best efforts not to disrupt the usual operations of the TENANT at the Premises. The TENANT shall also allow the LANDLORD access to the Premises at any time in case of an emergency. 20. Signs. The TENANT may attach, install or erect signs on the interior walls of the Premises as necessary for the TENANT'S usual business at the Premises. The TENANT may not attach, install or erect any signs on the exterior walls of, or the area surrounding, the Premises without the prior written approval of the LANDLORD and the City of Waterford as to the form, content, material, lighting and structure thereof. 21. Assignment. The TENANT shall not assign, sublet or in any manner transfer this Lease or any estate or interest therein without the prior written consent of the LANDLORD. 22. Parking. The LANDLORD agrees to provide sufficient parking to satisfy the requirements of the TENANT. 23. 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 possession of the Premises. If less than the whole, but more than thirty-five percent (35%) of the Premises are taken by any public authority under the power of eminent domain, then either party may terminate this Lease upon thirty (30) days written notice to the other party. In the event neither party elects to terminate this Lease, the Lease shall terminate on the date the public authority takes possession of the Premises. Neither party shall have any future liability or obligation under the Lease if it is terminated under this Paragraph. 24. Quiet Enjoyment. Upon performance of its obligations under this Lease, the TENANT shall peacefully and quietly hold and enjoy the Premises for the Term of this Lease without hindrance or interruption by the LANDLORD, its agents or employees, subject to the terms of this Lease. 25. Modifications. This Lease may be modified or amended only by written agreement of the LANDLORD and the TENANT. 4 26. Governing Law. This Lease shall be interpreted under and governed by the laws of the State of Michigan. 27. Severability. If a term, condition or provision of this Lease is found, by a court of competent jurisdiction, to be invalid or unenforceable or to violate or contravene federal or state law, then the term, condition, or provision so found shall be deemed severed from this Lease, but all other terms, conditions and provisions shall remain in full force and effect. 28. 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, provision or condition of this Lease. No remedy available to a party for the other party's breach of this Lease is 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. 29. 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. 30. Binding Effect. The terms 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, except no right shall inure to the benefit of any assignee of the TENANT unless the assignment has been approved by the LANDLORD in writing. 31. 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. 32. 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. 33. 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 TENANT. 34. Security Deposit. LANDLORD acknowledges that no Security Deposit is being required of TENANT. 5 IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year above written. WITNESSES: WHITE OAKS PROPERTIES (LANDLORD) VERN KORS, Owner COUNTY OF OAKLAND (TENANT) By: BILL BULLARD, Jr., Chairperson Oakland County Board of Commissioners STATE OF MICHIGAN ) ) S S. COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me in Oakland County, Michigan, this day of , 2005, by VERN KORS, owner of WHITE OAKS PROPERTIES. Michael D. Hughson, Acting in Oakland County Notary Public, Oakland County, Michigan My Commission Expires: 5/5/08 Acting in Oakland County 6 STATE OF MICHIGAN ) ) SS. COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me in Oakland County, Michigan, this day of , 2005, by BILL BULLARD, Jr., Chairperson of the Board of Commissioners of the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, on behalf of the Corporation. Michael D. Hughson, Acting in Oakland County Notary Public, Oakland County, Michigan My Commission Expires: 5/5/08 Acting in Oakland County 7 FISCAL NOTE (M.R. #05075) April 28, 2005 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: DEPARTMENT OF FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT WITH WHITE OAKS PROPERTIES FOR USE OF OFFICE SPACE AM 2805 PONTIAC LAKE ROAD, WATERFORD, MICHIGAN 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 Department of Risk Management plans to relocate to Oakland County Building 41 West in approximately eighteen months. 2. The Department of Risk Management will continue to occupy the office space located at 2805 Pontiac Lake Road on the second floor of the premises until the renovations at Oakland County Building 41 have been completed. 3. The lease agreement stipulates a rental rate of $2,937.33 per month or $35,248 per year during Risk Management's occupancy from May 1, 2005 through October 31, 2006. 4. No budget amendment is needed for FY 2005. 5. FY 2006 and FY 2007 County Executive Recommended Budget will reflect adjustment of transferring funds from Contractual Rent Tine-item to Internal Service Building Space line-item for the remainder of the eighteen months. FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote with Wilson absent. Resolution #05075 April 14, 2005 The Chairperson referred the resolution to the Finance Committee. There were no objections. Resolution #05075 April 28, 2005 Moved by Crawford supported by Melton the resolutions on the Consent Agenda be adopted and the report be confirmed. AYES: Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, KowaII, Long, Melton, Middleton, Molnar, Moss, Nash, Palmer, Patterson, Potter, Scott, Suarez, Wilson, Woodward, Zack, Bullard, Coleman. (24) NAYS: None. (0) A sufficient majority having voted therefore, the resolutions on the Consent Agenda were adopted and the report was confirmed. piam STATE OF MICHIGAN) COUNTY OF OAKLAND) I, Ruth Johnson, 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 April 28, 2005 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 28th day of April, 2005. 4 e hit Johns,/ , County Cie! Ruttl Johnstiih, County Clerk