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HomeMy WebLinkAboutResolutions - 2025.03.18 - 41939 AGENDA ITEM: Amendment #2 of the Hangar Space Lease with Midfield Management, LLC for Sheriff's Office Aviation Unit DEPARTMENT: Facilities Management MEETING: Board of Commissioners DATE: Tuesday, March 18, 2025 9:30 AM - Click to View Agenda ITEM SUMMARY SHEET COMMITTEE REPORT TO BOARD Resolution #2025-5039 _ 25-7 Motion to adopt the attached suggested resolution. ITEM CATEGORY SPONSORED BY Lease Yolanda Smith Charles INTRODUCTION AND BACKGROUND 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. 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 #2. The Oakland County Department of Facilities Management and the Sheriff’s Office recommend that the Board of Commissioners approve and accept the lease Amendment #2 revision. The underlying lease to this amendment was approved through MR #20091. The lease was awarded through the procurement process with Midfield Management, LLC being selected as the lowest bidder and having the available space to house the two helicopters. Amendment #1 to the lease agreement was approved through MR #2022-2120 _ 22-359. This amendment expanded the office space being used by the Sheriff's Office in the hangar. POLICY ANALYSIS The space in the hangar being leased is made up of approximately 750 square feet of office space with 100 square feet of storage space and approximately 6,512 square feet in the hangar for aircraft storage. The commencement date of the lease was April 1, 2020 with a termination date of March 31, 2025. Amendment #2 would extend the term of the lease agreement for an additional 3 years (expiring March 31, 2028) with a two-year option to renew. Rent under this amendment begins at $2,020/mo. and increases annually at a rate of 3%. The full rent schedule is listed in Schedule B. BUDGET AMENDMENT REQUIRED: Yes Committee members can contact Barbara Winter, Policy and Fiscal Analysis Supervisor at 248.821.3065 or winterb@oakgov.com or the department contact persons listed for additional information. CONTACT Paul Zachos, Property Management Specialist Gaia Piir, Fiscal Officer ITEM REVIEW TRACKING Aaron Snover, Board of Commissioners Created/Initiated - 3/20/2025 David Woodward, Board of Commissioners Approved - 3/20/2025 Walt Herzig, Executive's Office Approved - 3/20/2025 Lisa Brown, Clerk/Register of Deeds Final Approval - 3/24/2025 AGENDA DEADLINE: 03/18/2025 9:30 AM ATTACHMENTS 1. FY25-27 Facilites Amend #2 Hangar Lease Midfield LLC Schedule A-Budget Amendment 2. 2nd Amendment - Midfield Maven Lease (final 3.3.25) COMMITTEE TRACKING 2025-03-12 Economic Development & Infrastructure - Recommend to Board 2025-03-18 Full Board - Adopt Motioned by: Commissioner Robert Hoffman Seconded by: Commissioner Ann Erickson Gault Yes: Marcia Gershenson, Yolanda Smith Charles, Charles Cavell, Ann Erickson Gault, Linnie Taylor, Robert Smiley, David Woodward, Michael Spisz, Penny Luebs, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell (15) No: None (0) Abstain: None (0) Absent: Michael Gingell, Karen Joliat, William Miller III, Brendan Johnson (4) Passed March 18, 2025 RESOLUTION #2025-5039 _ 25-7 Sponsored By: Yolanda Smith Charles Facilities Management - Amendment #2 of the Hangar Space Lease with Midfield Management, LLC for Sheriff's Office Aviation Unit Chair and Members of the Board: WHEREAS the Oakland County Sheriff Department owns and operates two ASTAR Tri-blade AS350 B2 helicopters, which are presently housed at the Oakland County International Airport (OCIA); and WHEREAS the current lease with Midfield Management, LLC expires March 31, 2025; and WHEREAS the Sheriff’s Office desires to continue to house the helicopters at the OCIA location; and WHEREAS Midfield Management current lease provides hangar storage, office space and fuel for the helicopters at market rates (see schedule B) at OCIA; and WHEREAS Midfield Management, LLC has updated the lease costs for this three-year extension with an option to extend for an additional two years; and WHEREAS the Departments of Facilities Management, the Sheriff’s Office and Corporation Counsel have reviewed Amendment #2 extending the lease. NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners hereby approves and authorizes the attached Amendment #2 to the lease agreement with Midfield Management, LLC, expiring March 31, 2028. BE IT FURTHER RESOLVED that the Oakland County Board of Commissioners hereby directs its Chair or their designee to execute the attached lease and all other related documents which may be required between the County and Midfield Management, LLC. BE IT FURTHER RESOLVED that the FY 2025-2027 budgets are amended as detailed in the attached Schedule A - Budget Amendment. Chair, the following Commissioners are sponsoring the foregoing Resolution: Yolanda Smith Charles. Date: March 20, 2025 David Woodward, Commissioner Date: March 20, 2025 Walt Herzig, Chief Deputy County Executive Date: March 24, 2025 Lisa Brown, County Clerk / Register of Deeds COMMITTEE TRACKING 2025-03-12 Economic Development & Infrastructure - Recommend to Board 2025-03-18 Full Board - Adopt Motioned by Commissioner Robert Hoffman seconded by Commissioner Ann Erickson Gault to adopt the attached Lease: Amendment #2 of the Hangar Space Lease with Midfield Management, LLC for Sheriff's Office Aviation Unit. Yes: Marcia Gershenson, Yolanda Smith Charles, Charles Cavell, Ann Erickson Gault, Linnie Taylor, Robert Smiley, David Woodward, Michael Spisz, Penny Luebs, Kristen Nelson, Christine Long, Robert Hoffman, Philip Weipert, Gwen Markham, Angela Powell (15) No: None (0) Abstain: None (0) Absent: Michael Gingell, Karen Joliat, William Miller III, Brendan Johnson (4) Passed ATTACHMENTS 1. FY25-27 Facilites Amend #2 Hangar Lease Midfield LLC Schedule A-Budget Amendment 2. 2nd Amendment - Midfield Maven Lease (final 3.3.25) 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 March 18, 2025, 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 Tuesday, March 18, 2025. Lisa Brown, Oakland County Clerk / Register of Deeds Oakland County, Michigan FACILITIES MANAGEMENT – AMENDMENT #2 OF THE HANGAR SPACE LEASE WITH MIDFIELD MANAGEMENT, LLC FOR SHERIFF'S OFFICE AVIATION UNIT 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 Affiliat e (BFA) Ledger Account Summary Account Title FY 2025 Amendment FY 2026 Amendment FY 2027 Amendment E General Fund Patrol Services FND10100 CCN4030601 SC731626 PRG116220 730000 Rent $3,054.00 $6,835.00 $7,584.00 E General Fund Non-Departmental FND10100 CCN9090101 SC730359 PRG196030 730000 Contingency (3,054.00)(6,835.00)(7,584.00) Total Expenditures $-$-$- 3/3/2025 Page 1 of 3 2nd Lease Amendment Final Version AMENDMENT #2 TO LEASE AGREEMENT BETWEEN THE COUNTY OF OAKLAND AND MIDFIELD MANAGEMENT, LLC This 2nd Amendment (2nd Amendment) is entered into on April 1, 2025 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 Agreement was amended on October 20, 2022 to add approximately 310 square feet of lease space. C. With the existing term for the Agreement expiring on March 31, 2025, the Parties desire to extend such term and amend other Agreement terms as set forth herein. D. In consideration of the mutual covenants contained herein, the Parties agree to amend the Lease as follows: 1st AMENDMENT 1.Term. The term of the Agreement is extended for three (3) years until March 31, 2028 (“Extended Term”). Prior to the expiration of the Extended Term, Lessee shall have an option to extend the Extended Term for an additional two (2) year period with thirty (30) days’ advance written notice to Lessor. Such written notice shall be given by Lessor’s Director of Facilities Management. 2.Rent. Schedule B to the Agreement and Schedule B-1 to the 1st Amendment are deleted and replaced with Schedule B attached to this 2nd Amendment. Schedule B attached to this 2nd Amendment is incorporated herein. 3.Schedule C. Schedule C remains the same except for the following: fuel price changes from $0.55/gal to $0.77/gal over cost provided by Maven by Midfield. 4.Continued Effect. All other terms and conditions of the Agreement and the 1st Amendment shall continue with full force and effect, except as modified herein. 5.Entire Agreement. This 2nd Amendment, the 1st Amendment, and the Agreement 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 2nd Lease Amendment Final Version IN WITNESS WHEREOF, David T. Woodward acknowledges that he is authorized by the County of Oakland to execute this 2nd 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 ____________, 2025. ____________________________________ Notary Public, Oakland County, Michigan My Commission Expires: ________________ Acting in the County of Oakland IN WITNESS WHEREOF, Jason Zimmerman acknowledges that he is authorized by Midfield Management, LLC to execute this 2nd Amendment. Lessor: Midfield Management, LLC By: _____________________________________ Authorized Agent Date:_______________________________________ Subscribed and sworn to before me on the _____ day of ____________, 2025. ______________________________________ Notary Public State of ___________ County of ____________ My Commission Expires: __________________ Acting in the County of ____________________ Page 3 of 3 2nd Lease Amendment Final Version HANGAR LEASE AMENDMENT #2 SCHEDULE B Aircraft Type: Two ASTAR Tri-blade AS350 B2 Helicopters Serial Number: Registration Numbers: N632SD and N6315D Monthly Rent Schedule Year Date Helicopters Office/Storage Space 1 4/1/2025 to 3/31/2026 $1,134.00 $886.00 2 4/1/2026 to 3/31/2027 $1,168.02 $912.58 3 4/1/2027 to 3/31/2028 $1,203.06 $939.96 4 4/1/2028 to 3/31/2029 $1,239.15 $968.16 5 4/1/2030 to 3/31/2031 $1,276.33 $997.20