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HomeMy WebLinkAboutResolutions - 2022.10.20 - 37677 AGENDA ITEM: Lease Approval of Amendment #1 to the Sheriff's Office's Lease Agreement with Midfield Management, LLC for Aircraft Storage and Office Space at the Oakland County International Airport 22-359 COMMITTEE MEETING: Board of Commissioners DATE: Thursday, October 20, 2022 6:04 PM - Click to View Agenda ITEM SUMMARY SHEET DEPARTMENT SPONSORED BY Facilities Management William Miller III INTRODUCTION AND BACKGROUND The Sheriff's Office Aviation unit needed expansion of the office space to accommodate personnel. Midfield Management, LLC is the current Lessor and has extra space next to the existing office space. Midfield Management, LLC will prepare the space for occupancy and the Amendment will modify the lease for additional monthly rent and build-out costs. POLICY ANALYSIS This is a request to authorize Amendment #1 to the Hangar Lease Agreement with Midfield Management LLC (Midfield), at 6544 Highland Road at the Oakland County International Airport for (2 helicopters currented housed MR #20091, expires 2023) additional space. The additional space is needed for office space to accommodate personnel and the Lessor has space available for modification that is next to the existing office space. The term of Amendment #1 is for the duration of the original agreement and will end on March 31,2023, and has a two-year extension option. Midfield will expand the current office space by approximately 310 square feet (from 450 square feet) equating to a total of 759 square feet. The 310 square feet of additional space will be at a rental rate of $361 per month, $4,332 annually. Per Amendment #1, Midfield will provide the improvements for the office space for an additional amount of $8,100 and the County will reimburse Midfield. The improvement will be completed prior to the move in date November 1, 2022 (estimated). Lease (space) expenditures for Midfield Mgmt. (current & additional): Lease of current 450 sq. ft. annually $ 3,600 Lease of additional 310 sq. ft. annually $ 4,332 Sub-total $ 7,932 Two helicopters annually $10,200 Total $18,132 *Expenditures for improvements or gas for helicopters not calculated in total Facilities Management, the Sheriff’s Office and Corporation Counsel have negotiated and approved Amendment #1. On final approval of the Board the Chairman or his designee will execute the lease and related documents. The FY2023 – FY 2025 budget is amended as reflected in the attached Schedule A – Budget Amendment (intent is to extend the two-year option in 2023 to 2025). BUDGET AMENDMENT REQUIRED: No Committee members can contact Michael Andrews, Policy and Fiscal Analysis Supervisor at 248.858.5115 (office) or andrewsmb@oakgov.com, or the department contact persons listed for additional information. CONTACT Gaia Piir, Sheriff Fiscal Officer Undersherriff Curtis Childs piirg@oakgov.com ITEM REVIEW TRACKING William Miller III, Created/Initiated - 10/20/2022 David Woodward, Board of Commissioners Approved - 10/20/2022 Hilarie Chambers, Executive's Office Approved - 10/21/2022 Lisa Brown, Clerk/Register of Deeds Final Approval - 10/26/2022 AGENDA DEADLINE: 10/20/2022 7:20 PM COMMITTEE TRACKING 2022-10-12 Economic Development & Infrastructure - Recommend to Board 2022-10-20 Full Board - Adopted ATTACHMENTS 1. Lease Amendment #1 Bckgrd 2. MR Lease Amendment #1 with Midfield Managment, LLC 3. 1st Amendment - Midfield Maven Lease (final version ) 4. Copy of SO 2022 hanger lease Schedule A (updated)10.10.22 October 20, 2022 RESOLUTION #2022-2120 _ 22-359 Sponsored By: William Miller III Facilities Management - Lease Approval of Amendment #1 to the Sheriff's Office's Lease Agreement with Midfield Management, LLC for Aircraft Storage and Office Space at the Oakland County International Airport Chairperson and Members of the Board: WHEREAS the two helicopters are presently housed at the Oakland County International Airport (OCIA) with Midfield Management, LLC (M.R. #20091); and WHEREAS the Departments of the Sheriff and Facilities Management, with the assistance of Oakland County Corporation Counsel, have negotiated the terms and conditions of the attached Amendment #1 to the Hangar Lease Agreement; and WHEREAS under the terms and conditions of Amendment #1 to the Hangar Lease Agreement, Midfield Management LLC, will expand the current office space by approximately 310 sq. ft. from 450 sq. ft. with additional 100 sq. ft. of floor space in hangar for storage cabinets (included) at a rental rate of $300.00 per month ($3,600 annually) to 759 sq. ft. and maintaining the additional 100 sq. ft. of floor space in hangar for storage cabinets (included) at a rental rate of $661.00 per month ($7,932 annually); and WHEREAS under the terms and conditions of Amendment #1 to the Hangar Lease Agreement, Midfield Management LLC will provide improvements, to be completed prior to the move in date of the new space, to the office space totaling $8,100 and the County will reimburse Midfield Management LLC for these improvements. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Amendment #1 to the Hangar Lease Agreement for use of space at Midfield Management LLC, 6544 Highland Road at the Oakland County International Airport, Waterford, Michigan. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its Chairperson or his designee to execute the attached Hangar Lease Agreement and all other related documents between the County and Midfield Management, LLC, which may be required. BE IT FURTHER RESOLVED that the FY2023 – FY 2025 budget is amended per the attached Schedule A. Chairperson, the following Commissioners are sponsoring the foregoing Resolution: William Miller III. Date: October 20, 2022 David Woodward, Commissioner Date: October 21, 2022 Hilarie Chambers, Deputy County Executive II Date: October 26, 2022 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2022-10-12 Economic Development & Infrastructure - Recommend to Board 2022-10-20 Full Board - Adopted VOTE TRACKING Motioned by Commissioner William Miller III seconded by Commissioner Philip Weipert to adopt the attached Lease: Approval of Amendment #1 to the Sheriff's Office's Lease Agreement with Midfield Management, LLC for Aircraft Storage and Office Space at the Oakland County International Airport. Yes: David Woodward, Michael Gingell, Michael Spisz, Karen Joliat, Kristen Nelson, Eileen Kowall, Christine Long, Philip Weipert, Gwen Markham, Angela Powell, Thomas Kuhn, Chuck Moss, Marcia Gershenson, William Miller III, Yolanda Smith Charles, Penny Luebs, Janet Jackson, Gary McGillivray, Robert Hoffman, Adam Kochenderfer (20) No: None (0) Abstain: None (0) Absent: (0) Passed ATTACHMENTS 1. Lease Amendment #1 Bckgrd 2. MR Lease Amendment #1 with Midfield Managment, LLC 3. 1st Amendment - Midfield Maven Lease (final version ) 4. Copy of SO 2022 hanger lease Schedule A (updated)10.10.22 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 October 20, 2022, 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 Circuit Court at Pontiac, Michigan on Thursday, October 20, 2022. Lisa Brown, Oakland County Clerk / Register of Deeds Departments of Facilities Management and Sheriff’s Office 10/12/2022 Acceptance and Approval of Lease Amendment #1 Hangar Lease Agreement Pursuant to Board of Commissioner's rules and procedures for lease of real property the Department of Facilities Management and the Sheriff’s Office is seeking Board of Commissioners approval of the attached Lease Amendment #1. The Sheriff’s Office Aviation Unit uses hangar and office space at the Oakland County International Airport as provided by the landlord Midfield Management, LLC. The landlord has additional office space next to the existing office space and which is needed for expanded operations of the Aviation Unit. Description of premises to be leased. The property is approximately 750 square feet of office space with 100 square feet of storage space in the hangar. The aircraft storage is approximately 6512 square feet in the hangar. Terms and Conditions of Lease Original Commencement date: April 1, 2020 Termination date: March 31, 2023 Options: Two years until March 31, 2025 Rent: See Schedule B-1 Recommendation It is the recommendation of the Oakland County Department of Facilities Management and the Sheriff’s Office that the Board of Commissioners approve and accept the lease Amendment #1 revision. MISCELLANEOUS RESOLUTION #22xxx Sponsored By: William Miller IN RE: DEPARTMENTS OF FACILITIES MANAGEMENT AND SHERIFF’S OFFICE – APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT WITH MIDFIELD MANAGEMENT, LLC FOR AIRCRAFT STORAGE AND OFFICE SPACE AT THE OAKLAND COUNTY INTERNATIONAL AIRPORT (OCIA) Chairperson and Members of the Board: WHEREAS the two helicopters are presently housed at the Oakland County International Airport (OCIA) with Midfield Management, LLC (M.R. #20091); and WHEREAS the Departments of the Sheriff and Facilities Management, with the assistance of Oakland County Corporation Counsel, have negotiated the terms and conditions of the attached Amendment #1 to the Hangar Lease Agreement; and WHEREAS under the terms and conditions of Amendment #1 to the Hangar Lease Agreement, Midfield Management LLC, will expand the current office space by approximately 310 sq. ft. from 450 sq. ft. with additional 100 sq. ft. of floor space in hangar for storage cabinets (included) at a rental rate of $300.00 per month ($3,600 annually) to 759 sq. ft. and maintaining the additional 100 sq. ft. of floor space in hangar for storage cabinets (included) at a rental rate of $661.00 per month ($7,932 annually); and WHEREAS under the terms and conditions of Amendment #1 to the Hangar Lease Agreement, Midfield Management LLC will provide improvements, to be completed prior to the move in date of the new space, to the office space totaling $8,100 and the County will reimburse Midfield Management LLC for these improvements; and NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Amendment #1 to the Hangar Lease Agreement for use of space at Midfield Management LLC, 6544 Highland Road at the Oakland County International Airport, Waterford, Michigan. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its Chairperson or his designee to execute the attached Hangar Lease Agreement and all other related documents between the County and Midfield Management, LLC, which may be required. BE IT FURTHER RESOLVED that the FY2023 – FY 2025 budget is amended per the attached Schedule A. Chairperson, on behalf of the Economic Development and Infrastructure Committee, I move the adoption of the foregoing resolution. ____________________________________________ Commissioner William Miller, District #14 Chairperson, Economic Development and Infrastructure Committee Page 1 of 3 1st Lease Amendment Final Version AMENDMENT #1 TO LEASE AGREEMENT BETWEEN THE COUNTY OF OAKLAND AND MIDFIELD MANAGEMENT, LLC This First Amendment (1st Amendment) is entered into this ______ day of _____________, 2022 between the County of Oakland, located at 1200 North Telegraph Road, Pontiac, MI 48341 (“Lessee”) and Midfield Management, LLC (“Lessor”). BACKGROUND A. The Parties entered into a Lease Agreement that commenced on April 1, 2020 (“Agreement”) with the term of the Agreement ending March 31, 2023, with a two-year extension option. B. The Parties desire to amend the Agreement to add approximately 310 square feet, which includes one new office and will require an increase in rent. C. In consideration of the mutual covenants contained herein, the Parties agree to amend the Lease as follows: 1st AMENDMENT 1. Description and Depiction of Leased Premises. Schedule A to the Agreement describing and depicting the Leased Premises is deleted and replaced with the Schedule A-1 attached to this 1st Amendment. Schedule A-1 is incorporated into the Agreement. 2. Rent and Build-Out Costs. Schedule B to the Agreement is deleted and replaced with the Schedule B-1 attached to this 1st Amendment. Schedule B-1 is incorporated into the Agreement 3. Continued Effect. All other terms and conditions of the Lease shall continue with full force and effect, except as modified herein. 4. Entire Agreement. This 1st Amendment, the Agreement, and Schedules A-1 and B-1 constitute the entire agreement and understanding between Lessor and Lessee and supersedes any and all other prior oral or written understandings, communications or agreements between Lessor and Lessee. Page 2 of 3 1st Lease Amendment Final Version IN WITNESS WHEREOF, David T. Woodward acknowledges that he is authorized by the County of Oakland to execute this 1st Amendment. Lessee: County of Oakland By: ____________________________________ David T. Woodward, Chairperson Oakland County Board of Commissioners Date: ____________________________________ Subscribed and sworn to before me on the _____ day of ____________, 2022. ____________________________________ Notary Public, Oakland County, Michigan My Commission Expires: ________________ Acting in the County Oakland IN WITNESS WHEREOF, Jason Zimmerman acknowledges that he is authorized by Midfield Management, LLC to execute this 1st Amendment. Lessor: Midfield Management, LLC By: _____________________________________ Authorized Agent Date:_______________________________________ Subscribed and sworn to before me on the _____ day of ____________, 2022. ______________________________________ Notary Public State of ___________ County of ____________ My Commission Expires: __________________ Acting in the County of ____________________ Schedule A-1759 sf office space as outlined in red100 sf general storage space in hangar6,512 sf (approx) aircraft storage space in hangar Page 3 of 3 1st Lease Amendment Final Version HANGAR LEASE AMENDMENT #1 SCHEDULE B-1 Aircraft Type: Two ASTAR Tri-Blade AS350 B2 Helicopters Serial Number: Registration: N631SD & N6315D Monthly Rent: $425.00 per Helicopter for initial term and any renewal terms. $661 per month for office space as described in schedule A-1. This includes 100 square feet of floor space in hangar for storage. Build-Out Costs: The Lessor will provide the following improvements to the space and the County will reimburse the Lessor for these improvements. The improvement will be completed prior to the move in date of the new space. - Solid door, lockable handle, trim molding - $900.00 - Move IT cabinet and associated equipment using existing box, patch panels, LAN switches with additional Cat5 wiring - $2,600.00 Additional network jacks provided by Lessee. - Adjust all HVAC vents - no cost to Lessee - Lessor to ensure property HVAC vent diffusors are appropriately installed – no cost to Lessee. - Paint all walls and ceilings, includes preparing and patching of existing and new space - $4,600.00. Color TBD by Lessee. Oakland County, Michigan SHERIFF'S OFFICE – APPROVAL OF AMENDMENT #1 TO THE LEASE AGREEMENT WITH MIDFIELD MANAGEMENT, LLC Schedule "A" DETAIL R/E Fund Name Division Name Fund # (FND) Cost Center (CCN) # Account # (RC/SC) Program # (PRG) Grant ID (GRN) # Project ID # (PROJ) Region (REG) Budget Fund Affiliate (BFA) Ledger Account Summary Account Title FY 2023 Amendment FY 2024 Amendment FY 2025 Amendment R $-$-$- Total Revenues $-$-$- E General Fund Sheriff ERP Admin FND10100 CCN4030501 SC730198 PRG116220 730000 Building Maintenance Charges $8,100.00 $-$- E General Fund Sheriff ERP Admin FND10100 CCN4030501 SC731626 PRG116220 730000 Rent $4,332.00 $4,332.00 $4,332.00 E General Fund Non-Departmental FND10100 CCN9090101 SC730359 PRG196030 730000 Contingency $(12,432.00)$(4,332.00)$(4,332.00) Total Expenditures $-$-$-