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HomeMy WebLinkAboutResolutions - 2006.11.01 - 28268October 19, 2006 MISCELLANEOUS RESOLUTION # 06210 BY: Planning and Building Committee, Charles E. Palmer, Chairperson IN RE: DEPARTMENTS OF THE SHERIFF AND FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT FOR SHERIFF'S DEPARTMENT STORAGE FACILITY, 5782 TEREX AVE., SUITES A & B, CLARKSTON, MICHIGAN To the Oakland County Board of Commissioners Chairperson, Ladies and Gentlemen: WHEREAS, the Oakland County Sheriffs Department is in possession of various pieces of specialized mobile law enforcement equipment; and WHEREAS, the Sheriffs Department presently stores said specialized law enforcement equipment in an industrial building located at 5782 Terex Ave. in Springfield Township; and WHEREAS, at the present time no adequate County owned facility exists on or off the Oakland County Service Center, which would accommodate storage and provide for routine maintenance of said equipment; and WHEREAS, the administrative staff of the Departments of the Sheriff and Facilities Management with the assistance of Oakland County Corporation Counsel have negotiated the terms of the attached three year lease agreement at a rental rate of $2,875.00 per month for use of two units of an industrial building located at 5782 Terex Ave., Suites A & B, Clarkston, MI with Mr. Richard Detkowski, landlord; and WHEREAS, it is the recommendation of the Departments of the Sheriff and 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 the Sheriff, 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 suites A & B at 5782 Terex Ave., Clarkston, Michigan between the County of Oakland and Richard Detkowski. BE IT FURTHER RESOLVED that the County of Oakland Board of Commissioners hereby directs it's Chairperson or his designee to execute the attached Lease Agreement and all other related documents between the County of Oakland and Richard Detkowski, which may be required. Chairperson, on behalf of the Planning and Building Committee, I move the adoption of the foregoing resolution. PLANNING AND BUILDING COMMITTEE Planning & Building Committee Vote: Motion carried unanimously on a roll call vote LEASE This Lease is made and entered into on the day of , 2006, by Richard Detkowski, P.O.Box 932, Clarkston, Michigan 48347 ("LANDLORD"), and the COUNTY OF OAKLAND, a Michigan Constitutional Corporation, 1200 North Telegraph Road, Pontiac, Michigan 48341 ('''I'ENANT"). 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 a one-third portion of the industrial/warehouse building located in an industrial park at 5782, Ste A and B, Terex Ave., Springfield Township, Michigan containing 6,022 square feet ("Premises"). 2. Term and Commencement Date. The Term of this Lease shall begin on the Commencement Date, which is November 1, 2006, and shall run for three years from that date. The TENANT shall have possession of the Premises on the Commencement Date. Failure of the LANDLORD to provide TENANT with possession on that date shall be deemed a Default under the terms of this Lease. This Lease may be renewed at TENANT'S option for an additional three years upon notice by the TENANT to LANDLORD, upon the same terms and conditions contained herein. The TENANT must provide the LANDLORD with notice of its desire to renew this Lease 90 days before the expiration of the initial Term. 3. 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 or should an Oakland County owned facility become available then TENANT shall have the right to cancel this Lease upon thirty (30) days written notice to the LANDLORD with no penalty whatsoever. 4. Rent. From the date this Lease commences until the Lease expires or is terminated, the TENANT agrees to pay the LANDLORD Two Thousand Eight Hundred Seventy Five Dollars ($2,875.00) per month or $34,500 per year. This sum includes all structural maintenance, site maintenance, snow removal, lawn maintenance, trash removal, and taxes for the Premises. In the event TENANT renews this lease for a second term rent for a second term shall be at the rate of $36,000 per year or $3,000 per month. 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 monthly basis. The monthly rental payment shall be paid on the first calendar day of each month or another date agreed to by both Parties. The Rent shall be paid without any deduction or set off. 7. Hold 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 and conditions contained in this Lease, for a period not to exceed Six (6) months. 8. Use and Occupancy. The Premises shall not be used in violation of any law, municipal ordinance, or regulation. The Premises will be used to store motorized vehicles and other equipment. Some light maintenance of these vehicles will be performed on the Premises. Upon expiration or termination of this Lease, the TENANT shall surrender the Premises in the same condition as when taken (reasonable wear and tear excepted), and shall remove its personal property. 9. Equipment and Furnishings. The TENANT shall provide, at its own expense, furniture and equipment it deems necessary. The TENANT, at its own expense, shall be solely responsible for the maintenance and repair of all furniture and equipment used on the Premises. 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, common areas, the roof, ceilings, walls, floors, foundations, electrical systems, plumbing, sidewalks, parking areas, exterior glass, heating and cooling systems, and the replacement of light bulbs. The LANDLORD agrees that all repairs will be made without delay. 12. Utilities and Services. a. Utilities. The LANDLORD shall be solely responsible for and promptly pay all utilities necessary to maintain the exterior, including parking lots and common areas, in a safe and secure manner. TENANT will promptly pay the charges for water, gas, heat, electricity, sewer service and any other utilities used or furnished to the TENANT that are separately metered to the portion of the facility that TENANT occupies (Premises). b. Services. The TENANT agrees to pay all costs associated with maintaining and operating its telephone system, computer system and any other system the TENANT installs in the Premises. 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 Laws. 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 bather-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 the LANDLORD'S receipt of the written notice. If the LANDLORD complies with the laws and regulations within the one hundred fifty (150) day period, then TENANT'S notice will be deemed withdrawn. 14. Destruction of Premises. 2 a.) In the event the Premises are partially damaged or destroyed by fire or other casualty, the damage to the Premises shall be promptly repaired or rebuilt by the LANDLORD. In the event the Premises cannot be repaired or rebuilt within one hundred eighty (180) days after such destruction, the TENANT shall have the right to terminate this Lease and vacate the Premises within ninety (90) days after the occurrence of such damage or destruction. During the time between when the Premises are damaged and the TENANT remains on the Premises during repair or vacates the Premises altogether, the Rent owed by the TENANT shall be reduced in proportion to the portion of the Premises rendered unusable (in the discretion of the TENANT). If more than thirty-five percent (35%) of the Premises are damaged or destroyed by a casualty, the TENANT may elect to remain on the Premises or to vacate the Premises. b.) In the event that more than thirty-five (35) percent of the Premises are damaged or destroyed by fire or other casualty, the LANDLORD may elect to either repair or rebuild the Premises, or to terminate this Lease by giving written notice to the TENANT within ninety (90) days after the occurrence of such damage or destruction. TENANT will have ninety (90) days from the date of the notice to vacate the Premises. If the LANDLORD elects to rebuild or repair the Premises, then the Rent owed by the TENANT shall be reduced in proportion to the portion of the Premises rendered unusable (in the discretion of the TENANT) until the Premises are repaired or rebuilt. In no event shall the LANDLORD be required to repair or replace any property of the TENANT. c.) In the event that less than Thirty-five (35) percent of the Premises are damaged or destroyed by fire or other casualty 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. 15. Insurance: The TENANT is self-insured. The LANDLORD agrees to, at its own expense, to maintain insurance according to the minimum specifications during the entire term of this lease. a. Commercial General Liability with the following as minimum requirements: $3,000,000 — General Aggregate Limit other than Products/Completed Operations $3,000,000 — Products/Completed Operations Aggregate Limit $3,000,000 — Personal & Advertising Injury Limit $3,000,000 — Each Occurrence Limit $ 500,000 - Fire Damage (Any One Fire) $ 10,000 — Medical Payments — Any One Person The insurance policy shall contain the following coverage(s): • Occurrence Form • Broad Form Property Damage • Products & Completed Operations • Premises/Operations • Independent Contractors 3 • (Blanket) Broad Form Contractual — Specifically Naming this Contract • Personal Injury - Delete Contractual Exclusion • Per Location General Aggregate Limit • Written Waiver of Subrogation naming the TENANT The total limits of general liability coverage required herein may be satisfied with a combination of a Primary_General Liability (and) Umbrella/Excess policy having J__191 less than $3,000,000 in per occurrence limits, specifically listing the Primary General Liability Policy as underlying insurance. b. Workers' Compensation: Coverage A: with limits statutorily required by any applicable Federal or State law (and) Employers Liability Insurance -Coverage B: with minimum limits of $500,000 each accident, $500,000 disease each employee, and $500,000 disease policy limit. c. LANDLORD Owned Premises, Personal Property and TENANT Alterations and Improvements and Betterments: LANDLORD shall be responsible for, at its own expense, to maintain insurance providing special form fire and extended coverage insurance on all real property including leased premises, owned personal property, and any TENANT Alterations or Improvements made to the leased premises in which ownership has transferred to the LANDLORD per lease agreement. The LANDLORD agrees to waive all rights, including any insurance company subrogation rights, against the TENANT (his agents and/or employees) for any damage or loss of such property. d. Waiver of Subrogation. With regard to the leased premises, owned personal property and/or equipment of the LANDLORD, the LANDLORD agrees that the TENANT (his agents and/or employees) shall not be liable to the LANDLORD 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. With regard to personal property and/or equipment owned by the TENANT, the TENANT agrees that 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. General Insurance Provisions: All certificates of insurance and policies of the LANDLORD shall be endorsed to contain the following provisions and/or clauses: All policies of insurance shall be ona primary, non-contributory basis with any other insurance and/or self-insurance carried by the Tenant. (2) The insurance company(s) issuing the policy or policies shall have no recourse against the Tenant for payment of any premiums or for assessments under any form of policy. Any and all deductibles in the above-described insurance policies shall be assumed by, and be for the amount of, and at sole risk of, the LANDLORD. (4) Commercial General Liability insurance policy shall be endorsed to name the TENANT (agents and employees) as additional insured and shall specifically include the liability assumed hereunder by LANDLORD, (1 ) (3) 4 All certificates are to provide thirty (30) days written notice of material change, non- renewal or cancellation. Certificates of insurance must be provided no less than ten (10) working days before occupancy or use of the leased premises. (6) All certificates of insurance shall bear evidence of all required endorsements and clauses. 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, unless agreed to in writing by the Parties. Office furniture and trade fixtures used or installed in the Premises shall not be deemed to be Alterations and shall remain the property of the TENANT. 18. Care of Premises. TENANT shall keep the Premises in good repair, wear and tear from reasonable use and damage from the elements excepted. 19. Security. 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. The LANDLORD will provide keys for the TENANT's employees, agents, or independent contractors to enter the Premises. TENANT shall have the right to install a security system of its choice on the Premises. TENANT will pay the cost of installing, operating, and maintaining the security system. TENANT shall have the right to remove the security system upon expiration or termination of this Lease. 20. 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 when accompanied by an agent or employee of IENANT. 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. 21. Signs. The TENANT may attach, install or erect signs on the interior walls of the Premises as necessary for the TENANT'S 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 Township of Springfield as to the form, content, material, lighting and structure thereof 22. 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. (5) 23. Parking. The LANDLORD agrees to provide sufficient parking to satisfy the requirements of the TENANT. 24. Eminent Domain. If the whole Premises or any part of the Premises is taken by any public authority under the power of eminent domain, TENANT has the right to terminate the Lease and vacate the Premises anytime between the award of taking to the public authority and the day the public authority takes possession. If less than the whole of the Premises is taken by any public authority under the power of eminent domain, and TENANT elects to remain on the Premises, the rent shall be reduced in proportion to the amount of space taken by the public authority. Neither Party shall have any future obligation or liability under the Lease if the Lease is terminated pursuant to this Paragraph. 25. 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. 26. Modifications. This Lease may be modified or amended only by written agreement of the LANDLORD and the TENANT. 27. Remedies not Exclusive. It is agreed that each and every right and benefit provided by this Lease shall be cumulative, and shall not be exclusive of any other right, remedy and/or benefit allowed by law or in equity to either party. 28. Gender. The gender of any word contained in this Lease shall not affect the meaning of this Lease, and whenever herein the singular number is used, the same shall include the plural, and any gender shall be deemed to include the masculine, feminine, or neuter genders. 29. Common Areas. The term "Common Areas" shall include, facilities, service corridors, pedestrian sidewalks, stairways, hallways, bathroom area, landscaped areas, parking areas, access roads, driveways, loading areas, lighting and facilities which may be furnished by LANDLORD in or near the building which are outside of the Premises, and designated from time to time by Landlord as Common Areas. TENANT and its invitees shall have right to access the common areas during the term of this Lease. LANDLORD shall at its sole cost and expense, operate, insure and maintain the common areas. 30. Security Deposit. LANDLORD acknowledges that no security deposit is being required of TENANT. 31. Governing Law. This Lease shall be interpreted under and governed by the laws of the State of Michigan. 32. Severability. 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, then the term, condition, or provision shall be deemed severed from this Lease; all other terms, 6 conditions and provisions shall remain in full force and effect. 33. 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. 34. 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. 35. 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. 36. 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. 37. 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 Patty 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. 38. 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. 39. Default. If the either party defaults in any of its obligations under this Lease, either party shall have all remedies available to it under the law. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year above written. WITNESSES: RICHARD DETKOWSKI (LANDLORD) By: 7 COUNTY OF OAKLAND (TENANT) By: Michael D. Hughson Bill Bullard, Jr., Chairperson Oakland County Board of Commissioners STATE OF MICHIGAN ) ) SS. COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me in Oakland County, Michigan this day of , 2006, by Richard Detkowski, Landlord. Notary Public, Oakland County, Michigan Acting in Oakland County My Commission Expires: STATE OF MICHIGAN ) ) SS. COUNTY OF OAKLAND ) The foregoing instrument was acknowledged before me in Oakland County, Michigan this day of , 2006, 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 Notary Public, Oakland County, Michigan Acting in Oakland County My Commission Expires: 5/5/2008 Mh8/16/2006 NATEMPFILE\ lnumber\2003\2003-0700 ihru 200343799\2003-0784 Sheriff Storage Building Lease with R. Detkowski RE-5782 Terex Ave, ClarkstorMinal.doc 8 FISCAL NOTE (M.R. 4406210) November 2, 2006 BY: FINANCE COMMITTEE, CHUCK MOSS, CHAIRPERSON IN RE: DEPARTMENTS OF THE SHERIFF AND FACILITIES MANAGEMENT - APPROVAL AND ACCEPTANCE OF LEASE AGREEMENT FOR SHERIFF'S DEPARTMENT STORAGE FACILITY, 5782 TEREX AVE., SUITES A & B, CLARKSTON, 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 resolution authorizes a three year agreement (with three year extension option) between Oakland County and Richard Detkowski to provide storage facilities for specialized law enforcement equipment. 2. The Sheriff's Department is proposing to expand the use of the storage facility located at 5782 Terex Ave, from 3,200-sf to approximately 6,022-sf. 3. The lease agreement rental rate is $2,875 per month. The annual cost is $34,500. The current rental rate is $2,000 per month, $24,000 annually. 4. The contract shall be effective from November 1, 2006 through October 31, 2009. 5. An amendment to the FY 2007/2008 Budget is recommended as follows: GENERAL FUND #10100 Expenditures 9090101 -196030 -730359 Contingency 4030601-110000-731626 Rent Total General Fund Expenditures FY 2007 FY 2008 ($ 9,625)($ 9,625) $ 9,625 $ 9,625 $ 9,625 $_2 FINANCE COMMITTEE FINANCE COMMITTEE Motion carried unanimously on a roll call vote. Resolution #06210 October 19, 2006 The Chairperson referred the resolution to the Finance Committee. There were no objections. Resolution #06210 November 2, 2006 Moved by Moss supported by Coleman the resolutions (with fiscal notes attached) on the amended Consent Agenda, be adopted (with accompanying reports being accepted). AYES: Coleman, Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, Jamian, KowaII, Long, Melton, Moss, Nash, Palmer, Potter, Rogers, Suarez, Wilson, Woodward, Zack, Bullard. (21) 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) . 11" 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 November 2, 2006, 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 2nd day of November, 2006. Rutriittligits , County Clerk