HomeMy WebLinkAboutDoc 191 - Lease of Server Space to SAIFDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of April 23, 2014
Please see directions for completing this document on the next page.
DATE: April 14, 2014
FROM: James Lewis Property & Facilities 541-385-1414
TITLE OF AGENDA ITEM:
Consideration of Board signature of Document 2014-191, a Lease between Deschutes County and the
State Accident Insurance Fund Corporation (SAIF Corp.).
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
The State Accident Insurance Corporation, an Oregon Independent public corporation, dba SAIF
Corporation, is leasing 448 cubic feet of space (eight feet square by seven feet tall) within the
Deschutes County computer center located at 14 NW Kearney Ave., Bend. Under the terms of the
lease, SAIF is to use the space for their remote computer server, storage and network communications
systems. The lease expires May 31, 2016, and SAIF will have an option to renew the lease in
successive terms of two years.
FISCAL IMPLICATIONS:
Monthly rent is $1,500 per month.
RECOMMENDATION & ACTION REQUESTED:
Staffrecommends Board signature of Document 2014-191.
ATTENDANCE: James Lewis
DISTRIBUTION OF DOCUMENTS:
Return all original documents to James Lewis.
DESCHUTES COUNTY DOCUMENT SUMMARY
(NOTE: This form is required to be submitted with ALL contracts and other agreements. regardless of whether the document is to be
on a Board agenda or can be signed by the County Administrator or Department Director. If the document is to be on a Board
agenda, the Agenda Request Form is also required. If this form is not included with the document, the document will be returned to
the Department. Please submit documents to the Board Secretary for tracking purposes, and not directly to Legal Counsel. the
County Administrator or the Commissioners. In addition to submitting this form with your documents. please submit this form
electronically to the Board Secretary.)
Please complete all sections above the Official Review line.
Date: !April 14, 2014 Department: IProperty & Facilities
Contractor/Supplier/Consultant Name: State of Ore oni
Contractor Contact: Richard Hanson, V.P/C.I.O. Contractor Phone #: IS03.373.872~
Type of Document: Lease
Goods and/or Services: N/A
Background & History: The State Accident Insurance Corporation, an Oregon
Independent public corporation, dba SAIF Corporation, is leasing 448 cubic feet of
space (eight feet square by seven feet tall) within the Deschutes County computer
center located at 14 NW Kearney Ave., Bend. Under the terms of the lease, SAIF is to
use the space for their remote computer server, storage and network communications
systems. The lease expires May 31,2016, and SAIF will have an option to renew the
lease in successive terms of two years.
Agreement Starting Date: P6/01/201~ Ending Date: PS/31/20161
Annual Value or Total Payment: 1$1 ,SOO.OO per month -$18,000.00 annuall~
N/ A -Statutory
D Insurance Certificate ReCeiVjd (ChjCk box)
I nsurance Expiration Date: N / A _ 0tP?-1 v (A{ It--? f~
--------------~----~-----N/A
Check all that apply:
D RFP, Solicitation or Bid Process
D Informal quotes «$1S0K)
D Exempt from RFP, Solicitation or Bid Process (specify see DCC §2.37)
N/A
Funding Source: (Included in current budget? DYes D No
If No, has budget amendment been submitted? DYes D No
Is this a Grant Agreement providing revenue to the County? DYes [gJ No
Special conditions attached to this grant:
Deadlines for reporting to the grantor:
4/1412014
If a new FTE will be hired with grant funds, confirm that Personnel has been notified that
it is a grant-funded position so that this will be noted in the offer letter: DYes D No
Contact information for the person responsible for grant compliance: Name:
Phone#:
Departmental Contact and Title: James Lewis Phone #: 541-385-1414
Department Director Approval: --f~-=~-------l Signature Date
Distribution of Document:
Return all original documents to James Lewis.
Official Review:
County Signature Required (check one): SOCC 0 Department Director (if <$25K)
o Administrator (if >$25K but <$150K; if >$150K, SOCC Order No. _____I
Legal Review Date
Document Number 2014--J!i (
4/14/2014
REVIEWED
LEGAL COUNSEL
LEASE
This Lease is made by and between DESCHUTES COUNTY, a political subdivision of the State
of Oregon ("Lessor"), and the State Accident Insurance Fund Corporation, an Oregon
independent public corporation dba SAIF Corporation ("Lessee").
Lessor hereby leases to Lessee and Lessee takes from Lessor the "Premises" described as
follows:
Approximately 448 cubic feet (eight square feet by seven feet tall) within the
Computer Center of the building located at 14 NW Kearney Avenue, Bend,
Deschutes County, Oregon 97701, (the "Premises").
The parties agree that the terms of this Lease are as follows:
1. Term and Renewal. The effective date of this Lease is the date on which each party
has signed this Lease. Lessee's right of occupancy begins June 1, 2014. The Lease,
continues until May 31,2016. This Lease may be terminated prior to that date by either
party upon thirty (30) days' prior written notice.
If this Lease is not terminated and Lessee is not in default, Lessee shall have the option
to renew this Lease for successive terms of two years. This option, if exercised, shall be
made by written notice to Lessor given not less than sixty (60) days prior to the last day
of the expiring term. This Lease shall not be considered renewed for the additional 24
months unless and until Lessor agrees in writing.
2. Rent. Beginning June 1, 2014, Lessee shall pay to Lessor as base rent the sum of:
One Thousand Five Dollars ($1500.00) per month.
Rent shall be payable on the first day of each month without notice or demand at the
office of Deschutes County Property & Facilities Department, PO Box 6005, Bend, OR.
97708, or at such other place as may be designated in writing by Lessor. Rent may be
prorated for the first partial month.
Base rent includes utilities as defined in Section 10(a).
3. Additional Charges. Lessee agrees to pay the one-time installation cost shown on the
attached Exhibit A, which is incorporated herein by reference, with the first month's rent.
Lessee may exercise Upgrade Options, as defined in Exhibit A, anytime during the term
of the lease by giving written notice to Lessor not less than five (5) business days in
advance. Lessor will bill Lessee monthly for Upgrade Options based on the fee
schedule in Exhibits A.
4. Use of Premises. Lessee shall use the Premises to locate Lessee's remote computer
server, storage, and network communications systems for the Lessee.
Document 2014-191 Page 1 of 8 DC 2014--191
1
5. Possession. Lessee may have access to the Premises prior to occupancy date of June
1, 2014 and during Lessor's normal operating hours for the purpose of installing cabling
(either by Lessee or by Lessee's service providers) and other equipment necessary or
useful for Lessee's authorized use of the Premises. Lessor will provide Lessee with
security badge access to the Premises for the purpose of installing equipment and
during the term of the Lease. Beginning June 1, 2014, Lessor will provide access to the
premises 24/7 year around via help desk staff and on-call pager. Normal hours of help
desk operation are M-F 8:00am to 5:00pm. After hours pager caUs incur a cost of $200
per incidence.
When on-site, Lessee must be accompanied by a County staff member of Lessor.
6. Parking. Lessee, its employees, and clientele shall have a nonexclusive right to access
and utilize vehicle parking spaces in County parking lots.
7. Restrictions on Use. In connection with the use ofthe Premises, Lessee shall:
a) Conform to all applicable laws and regulations affecting the Premises and correct at
Lessee's own expense any failure of compliance created through Lessee's fault or by
reason of Lessee's use of the Premises. Lessee shall not be required to make any
structural changes to affect such compliance, unless such changes are required
because of Lessee's specific use.
b) Refrain from any use which would be reasonably offensive to the Lessor, other
tenants, or owners or users of adjoining property or unoccupied portions of the real
property, or which would tend to create a nuisance or damage the reputation of the real
property.
c) Refrain from making any unlawful or offensive use of said property or to suffer or
permit any waste or strip thereof.
d) Exercise diligence in protecting from damage the real property and common area of
Lessor covered by and used in connection with this Lease.
e) Be responsible for removing any liens placed on said property as a result of Lessee's
use of leased premises.
f) Comply with Lessor's policies regarding smoking, parking, fragrances, facilities
maintenance, facilities use and violence in the workplace. Those policies are attached
to this Agreement as Exhibit C and by this reference are incorporated herein.
8. Lessee's Obligations. The following shall be the responsibility of the Lessee:
a) Lessee shall not be required to make structural repairs that would place the
Premises in a better condition than at the commencement of this lease.
b) Any repairs necessitated by the negligence of Lessee, its agents, employees or
invitees.
Document 2014-191 Page 2 of 8
c) Any repairs or alterations required under Lessee's obligation to comply with laws and
regulations as set forth in "Restrictions on Use" above.
9. Lessor's Obligations.
a) Lessor will provide a one-time installation set up which includes:
i. Provisioning of network connections to server rack with copper CAT5e cable.
ii. Installing dedicated server rack. In this case the rack space provided is
provisioned as a 42U standard computer server rack (sample reference: Dell
4210).
b) Lessor will provide the following equipment within the Premises:
i. One 20 AMP 11 OV electrical circuit
ii. Two 20 AMP 208V electrical circuit
iii. Backup power (UPS and generator)
iv. Fire suppression
v. Security Badge Access
vi. Security surveillance
vii. 1 EIA 19-inch , 42U standard server rack
c) Lessor technician labor resources are limited to providing power switch cycling of
equipment on a component basis. This action will only be performed while actively in
communication with a designated technical representative of the Lessee.
d) Lessor shall perform all necessary maintenance and repairs to the structure,
foundation, exterior walls, roof, doors and windows, elevators, emergency lighting, and
Lessor-provided fire extinguishers, sidewalks, and parking area which are located on or
serve the Premises. Lessor shall maintain the premises in a hazard free condition and
shall repair or replace, if necessary and at Lessor's sole expense, the heating, air
conditioning, plumbing, electrical, and lighting systems in the Premises, obtaining
required permits and inspections from Codes enforcement authorities, and shall keep
the Premises, improvements, grounds and landscaping in good repair and appearance
replacing dead, damaged or diseased plant materials when necessary.
e) Should Lessor fail to maintain the Premises in accordance with above requirements,
and after at least fourteen (14) days prior written notification to Lessor, Lessee may
contract for necessary labor equipment and material to bring Premises within those
requirements and may deduct reasonable and necessary costs from future rent
payments.
f) Lessee shall take good care of the interior of the Premises and at the expiration of
the term surrender the Premises in as good condition as at the commencement of this
Lease, excepting only reasonable wear, permitted alterations, and damage by fire or
other casualty.
10. Utilities, Services and Real Property Tax.
a) Lessor shall provide water, sewer, gas, electricity, heat, air conditioning, trash
removal and janitorial services for the Premises.
Document 2014-191 Page 3 of 8
b) Lessee is not tax exempt as to real property tax liability on leased real. Lessee shall
pay promptly, when due, any property taxes assessed against the Premises.
11. Liens.
a) Except with respect to activities for which the Lessor is responsible, the Lessee shall
pay as due all claims for work done on and for services rendered or material furnished
to the leased real property and shall keep the real property free from any liens. If
Lessee fails to pay any such claims or to discharge any lien, Lessor may do so and
collect the cost from Lessee. Any amount so expended shall bear interest at the rate of
nine percent (9%) per annum from the date expended by Lessor and shall be payable
on demand. Such action by Lessor shall not constitute a waiver of any right or remedy
which Lessor may have on account of Lessee's default.
b) Lessee may withhold payment of any claim in connection with a good faith dispute
over the obligation to pay, so long as Lessor's property interests are not jeopardized. If
a lien is filed as a result of nonpayment, Lessee shall, within thirty (30) days after
knowledge of the filing, secure the discharge of the lien or deposit with Lessor cash or a
sufficient corporate surety bond or other surety satisfactory to Lessor in an amount
sufficient to discharge the lien plus any costs, attorney fees and other charges that
could accrue as a result of a foreclosure or sale under a lien.
12. Insurance.
a) Lessee shall provide for its own personal property damage coverage and liability
insurance, within the limits as provided under ORS 30.260 to 30.300, and as limited by
Oregon Constitution, Article XI, Section 7. Lessor shall provide for its own liability
coverage and real property damage coverage for the building structure and the building
systems, subject to the same limitations as provided under the law.
b) Indemnification: Lessor and Lessee shall each be responsible for the negligent and
wrongful acts of their employees, agents and invitees. Lessor's liability exposure is
limited by the Oregon State Constitution, Article XI, and Oregon Revised Statutes
30.260 through 30.300, the Oregon Tort Claims Act. Lessee's liability exposure is
subject to the limitations of liability and conditions of the Oregon Tort Claims Act, ORS
30.260 through 30.300.
13. Casualty Damage. If the Premises or improvements thereon are damaged or destroyed
by fire or other casualty to such a degree that the Premises are unusable for the
purpose leased, and if repairs cannot reasonably by made within ninety (90) days,
Lessee may elect to cancel this Lease. Lessor shall in all cases promptly repair the
damage or ascertain whether repairs can be made within ninety (90) days, and shall
promptly notify Lessee of the time required to complete the necessary repairs or
reconstruction. If Lessor's estimate for repair is greater than ninety (90) days, then
Lessee, upon receiving said estimate will have twenty (20) days after such notice in
which to cancel this Lease. Following damage, and including any period of repair,
Lessee's rental obligation shall be reduced to the extent the Premises cannot
reasonably be used by Lessee.
Document 2014-191 Page 4 of 8
14. Surrender of Leased Premises. Upon abandonment, termination, revocation or
cancellation of this Lease or the surrender of occupancy of any portion of or structure on
the leased premises, the Lessee shall surrender the real property or portion thereof to
Lessor in the same condition as the real property was on the date of possession, fair
'wear and tear excepted, except, that nothing in this lease shall be construed as to
relieve Lessee of Lessee's affirmative obligation to surrender said premises in a
condition which complies with all local, state or federal environmental laws, regulations
and orders applicable at the time of surrender that was caused by Lessee or occurred
during the term of this lease. Upon Lessor's written approval, Lessee may leave site
improvements authorized by any land use or building permit. Lessee's obligation to
observe and perform this covenant shall survive the expiration or the termination of the
Lease.
15. Nonwaiver. Waiver by either party of strict performance of any provision of this Lease
shall not be a waiver of or prejudice of the party's right to require strict performance of
the same provision in the future or of any other provision.
16. Default. Neither party shall be in default under this Lease until written notice of its
unperformed obligation has been given and that obligation remains unperformed after
notice for fifteen (15) days in the case of the payment or for thirty (30) days in the case
of other obligations. If the obligation cannot be performed within the thirty-day period,
there shall be no default if the responsible party commences a good faith effort to
perform the obligation within such period and continues diligently to complete
performance. In case of default the non-defaulting party may terminate this Lease with
thirty (30) days' notice in writing to the defaulting party, shall be entitled to recover
damages or any other remedy provided by applicable law, or may elect to perform the
defaulting party's obligation. The cost of such performance shall be immediately
recoverable from the defaulting party plus interest at the legal rate for judgment. If
Lessee makes any such expenditures as the non-defaulting party, those expenditures
may be applied to monthly rent payments(s).
17. Notices. Notices between the parties shall be in writing, effective when personally
delivered to the address specified herein, or if mailed, effective 48 hours following
mailing to the address for such party specified below or such other address as either
party may specify by notice to the other:
Lessor:
Lessee:
Deschutes County
Attn: Susan Ross
14 NW Kearney Avenue
Bend,Oregon 97701
Fax: 541.317.3168
SAIF Corporation
Attn: Richard Hanson
400 High Street SE
Salem, OR 97312
Phone (503) 373-8727
Fax: (503) 584-8727
18. Assignment. Lessee shall not assign or sub-rent the premises.
Document 2014-191 Page 5 of 8
19. Audit. Lessee reserves the right to audit, at Lessee's expense, Lessor's access records
pertinent to this agreement.
20. Attorneys' Fees. In the event a suit or action of any kind is instituted on behalf of either
party to obtain performance under this Lease or to interpret or enforce-any rights or
obligations arising from this Lease, each party will be responsible for paying its own
attorney fees.
21. Authority. The signatories to this agreement covenant that they possess the legal
authority to bind their respective principals to the terms, provisions and obligations
contained within this agreement.
22. MERGER.
THIS LEASE CONSTITUTES THE ENTIRE LEASE BETWEEN THE PARTIES. NO
WAIVER, CONSENT. MODIFICATION OR CHANGE OF TERMS OF THIS LEASE
SHALL BIND EITHER PARTY UNLESS IN WRITING AND SIGNED BY BOTH
PARTIES. SUCH WAIVER, CONSENT. MODIFICATION OR CHANGE, IF MADE,
SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR THE
SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDINGS. AGREEMENTS,
OR REPRESENTATIONS, ORAL OR WRITTEN, NOT SPECIFIED HEREIN
REGARDING THIS LEASE. LESSOR, BY THE SIGNATURE BELOW OF ITS
AUTHORIZED REPRESENTATIVE. HEREBY ACKNOWLEDGES THAT LESSOR HAS
READ THIS LEASE, UNDERSTANDS IT. AND AGREES TO BE BOUND BY ITS
TERMS AND CONDITIONS.
(The remainder of this page is blank. Signature page follows.)
Document 2014-191 Page 6 of 8
LESSOR:
DATED this __ day of _______, 2014
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
TAMMY BANEY, Chair
ATTEST: ANTHONY DEBONE, Vice-Chair
Recording Secretary ALAN UNGER, Commissioner
LESSEE:
State Accident Insurance Fund Corporation, An Oregon
::~:t :r~a~~oo SAIF Co~orntion
Its: Vi CR Pces ,deJa t a GLQ
DATE 1-~-W\~
SAIF Contract ReView@
Document 2014-191 Page 7 of 8
Exhibit A
Installation and Monthly Charges
One-Time Installation: Cost
EIA 19 inch, 42U Rack (std 42U rack) $500.00 i
Option: Provision Two Network
Connections to rack w/Copper CAT5e
(in-room cabling) $200
Lease Document Preparation $1,000.00
Total = $1,500.00
Monthly recurring charges
i Monthly Charges Cost
Facility Charges (42U rack) $1,500.00 I
Optional Half-Rack $1,000
!
Total
Recurring $1,500.00
Optional Charges & Upgrades
Technician Labor M-F 8:00am to 5:00pm Hourly Labor
Rate = $100
Technician Labor Non-(M-F 8:00am to
5:00pm)
$200+
2x(Hourly
Rate)
Document 2014-191 Page 8 of 8