HomeMy WebLinkAboutDoc 358 - Lease to United WayDeschutes 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 June 30,2014
Please see directions for completing this document on the next page.
DATE: June 12, 2014
FROM: James Lewis Property & Facilities 541-385-1414
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Document 2014-358, a Lease between Deschutes County as
Lessor and Deschutes United Way, doing business as United Way of Deschutes County, as Lessee.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Deschutes United Way is separately incorporated and independently governed by a local board of
community leaders and volunteers. Established in 1953, they serve the community with focused
campaigns that support local nonprofit agencies. Deschutes County has provided space for this
program since 2006. United Way will continue leasing the space for another two years. This lease is
for approximately 865 square feet at 1130 NW Harriman Street, Bend, commonly known as the Mike
Maier Building. Rent is $528 per month for the first year, with a 2.5% increase for the second year
($541.00).
County policy authorizes leases to nonprofit organizations that serve the same client base as county
departments or programs. Deschutes United Way meets that criterion.
FISCAL IMPLICATIONS:
Annual income is $6,336.00 for the first year, and $6,492.00 for year two.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends signature of Document 2012-358.
ATTENDANCE: James Lewis
DISTRIBUTION OF DOCUMENTS:
One original to J ames Lewis for the lessee.
DESCHUTES COUNTY DOCUMENT SUMMARY
(NOTE: This tonn 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 Fonn is also required. It this tonn is not included with the document, the document will be retumed 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 tonn with your documents, please submit this tonn
electronically to the Board Secretary.)
Please complete all sections above the Official Review line.
Date: @6/12/2011 Department: IProperty & Facilities
Contractor/Supplier/Consultant Name: United Wa of Deschutes Count
Contractor Contact: IKen Wilhelmi Contractor Phone #: 541-389-54681
Type of Document: Lease
Goods and/or Services: N/A
Background & History: Deschutes United Way is separately incorporated and independently
governed by a local board of community leaders and volunteers. Established in 1953, they serve
the community with focused campaigns that support local nonprofit agencies. Deschutes County
has provided space for this program since 2006. United Way will continue leaSing the space for
another two years. This lease is for approximately 865 square feet at 1130 NW Harriman Street,
Bend, commonly known as the Mike Maier Building. Rent is $528.00 per month for the first
year, with a 2.5% increase for the second year ($541.00).
Agreement Starting Date: 107/01/2014, Ending Date: 106/30/20161
Annual Value or Total Payment: $6,336.00 annual year one, $6,492 year twol
xx: Insurance Certificate Received (check box)
Insurance Expiration Date: 8/17/2014
Check all that apply: o RFP, Solicitation or Bid Process o Informal quotes «$150K)o Exempt from RFP, Solicitation or Bid Process (specify -see DCC §2.37)
Funding Source: (Included in current budget? 0 Yes D No
If No, has budget amendment been submitted? DYes D No
Is this a Grant Agreement providing revenue to the County? DYes [gI No
Special conditions attached to this grant:
Deadlines for reporting to the grantor:
6/23/2014
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: parnes Lewiij Phone #: 385-1414
Department Director Approval: ~ t?L~~I' t.(
Signature Date
Distribution of Document:
One original to James Lewis for the Lessee
Official Review:
County Signature Required (check one): 0 SOCC 0 Department Director (if <$25K)
o Administrator (if >$25K but <$150K; if >$150K, SOCC Order No. _____,)
Legal Review Date
Document Number 2014-358
6/23/2014
REVIEWED
LEGAL COUNSEL
LEASE
This Lease is made by and between DESCHUTES COUNTY, a political subdivision of the State
of Oregon ("Lessor") and DESCHUTES UNITED WAY, an Oregon nonprofit corporation, doing
business as United Way of Deschutes County, ("Lessee").
Lessor hereby leases to Lessee and Lessee takes from Lessor the "Premises" described as
follows
Approximately Eight Hundred Sixty-five (865) square feet of office space located at 1130
NW Harriman Street, Rooms, 210 -213, Bend, Oregon 97701 (171232AC03400).
Lessee shall be entitled to use of common areas, such as conference rooms, kitchen,
and work center without additional charge.
The parties agree that the terms of this Lease are as follows:
1. Term. The effective date of this Lease shall be July 1, 2014, or the date on which each
party has signed this Lease, whichever is later, and shall continue until June 30, 2016, or
twenty-four (24) months. Lessor and Lessee each reserve the right to terminate this
Lease prior to its expiration with sixty (60) days written notice, given to the other party.
2 Rent Lessee shall pay to Lessor as monthly base rent per month according to the
schedule below, commencing with the date specified in Paragraph 1. Rent may be
prorated for the first partial month. Rent shall be payable on the first day of each month
without notice or demand at the office of the Deschutes County Property & Facilities
Department, 14 NW Kearney Avenue, Bend, Oregon 97701, or at such other place as
may be designated in writing by Lessor.
July 1, 2014 -June 30, 2015 $52800
July 1, 2015 -June 30, 2016 $541 00
The rent payable by Lessee has been established to reflect the savings below market
rent resulting from the exemption from taxation.
3. Use of Premises. The Premises shall be used by Lessee for the purpose of operating
Lessee's primary business, United Way of Deschutes County Lessee, its principals or
agents shall not use the Premises to operate a business other than that specified in this
Lease and shall not use the Premises address as the business or mailing address for
any other business than that specified in this Lease Without obtaining the Lessor's
written consent in advance.
4. Parking Lessee, its employees, and clientele shall have a nonexclusive right to access
and utilize vehicle parking spaces in County parking lots Lessee's employees will be
required to adhere to the County Parking PoliCY and Regulations, which County in its
sole discretion may amend from time to time
DC 2014-358 Page 1 of 6
5. Restrictions on Use. In connection with the use of the 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 lease as Exhibit A and by this reference are incorporated herein.
6. 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. Lessee may place
fixtures, partitions, personal property, and the like in the Premises and may make
nonstructural improvements and alterations to the Premises at its own expense. Lessee
may be required to remove such items at the end of the Lease term.
b) Any repairs necessitated by the negligence of Lessee, its agents, employees or
invitees.
c) Any repairs or alterations required under Lessee's obligation to comply with laws and
regulations as set forth in "Restrictions on Use" above.
7. Maintenance and Repair of Premises.
a) 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 Code 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.
DC 2014-358 Page 2 of 6
9
b) 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.
c) 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.
8. Utilities and Services.
a) Lessor shall provide adequate heat. electricity, water, air conditioning, trash removal
service, sewage disposal service, and janitorial services for the Premises. Lessee shall
provide its own telephone and Internet service for the Premises.
b) Unless it is an exempt entity, Lessee agrees to pay property taxes and assessments
applicable to the Premises which are due and payable during the term of this Lease or
any extension hereof.
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.
10. Insurance.
a) It is expressly understood that Lessor shall not be responsible for carrying insurance
on any property owned by Lessee.
b) Lessee will be required to carry fire and casualty insurance on Lessee's personal
property on the Premises.
c) Lessor will carry fire and casualty insurance only on the structure where Premises are
located.
DC 2014-358 Page 3 of 6
d) Lessee shall carry commercial general liability insurance, on an occurrence basis;
with a combined single limit of not less than $1,000,000 each occurrence, with an annual
aggregate limit of $2000,000. Lessee shall provide Lessor with a certificate of
insurance, as well as an endorsement, naming Deschutes County, its officers, agents,
and employees and volunteers as an additional insured. There shall be no cancellation,
termination, material change, or reduction of limits of the insurance coverage during the
term of this lease.
e) Lessee shall provide to Lessor proof of workers compensation insurance.
f) Indemnification Lessor and Lessee shall each be responsible for the negligent and
wrongful acts of their officer, agents, employees and Invitees Lessor's liability exposure
is restricted by the Oregon State Constitution, Article XI, and Oregon Revised Statutes
30.260 through 30.300, the Oregon Tort Claims Act.
11. 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.
12 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.
13. 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.
14. 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
DC 2014-358 Page 4 of 6
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).
15. 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: Deschutes County
Attn Susan Ross Mail:
14 NW Kearney Avenue PO. Box 6005
Bend. Oregon 97701 Bend, OR 97708-6005
Phone: 541-383-6713
Lessee: United Way of Deschutes County
Attn: Ken Wilhelm
1130 NW Harriman Street
Bend, Oregon 97701
Phone 541-389-6507
16. Assignment. Lessee shall not assign or sub-rent the premises without the prior written
consent of the Lessor.
17. Attorneys' Fees. I n the event a suit or action of any ki nd is instituted on behalf of either
party to obtain performance under this Lease or to enforce any rights or obligations
arising from this Lease, each party will be responsible for paying its own attorney fees.
18. 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.
19. 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 CHANG 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 WRITTEI'l, 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.
DC 2014-358 Page 5 of 6
LESSOR:
Dated this ___ day of ________, 2014
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
TAMMY BANEY, CHAIR
ATTEST: ANTHONY DEBONE. COMMISSIONER
Recording Secretary ALAI\! UNGER, COMMISSIONER
LESSEE
4"" ~
Dated this :kO -day of ..J VVl \0( , 2014
DESCHUTES UNITED WAY, doing business as
United Way of DesChutes County
By: ~j)!.j-
Ken Wilhelm, Executive Director
DC 2014-358 Page 6 of 6