HomeMy WebLinkAboutDoc 003 - Amend Lease - TelecareDeschutes 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 January 12, 2011 Please see directions for completing this document on the next page. DATE: December 22, 2010 FROM: Teresa Rozic Property & Facilities 385-1414 TITLE OF AGENDA ITEM: Consideration of Board Signature of Document 2011-003, an Amendment to Industrial Lease with Telecare Mental Health Services of Oregon, Inc. PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: Deschutes County recently completed construction for a 7500 -square foot mental health residential treatment center at the public safety complex in Bend. Telecare Mental Health Services of Oregon, Inc. operates the facility under contract with County Health Services Department. Staff negotiated an industrial lease with this tenant. The parties find now that some provisions must be modified. This amendment clarifies the parties' obligations to maintain and repair the building and grounds as well as the purchase, installation and maintenance of certain improvements that Telecare will use. The amendment will be effective retroactively to the commencement date of the lease (the date Telecare began paying rent). FISCAL IMPLICATIONS: None RECOMMENDATION & ACTION REQUESTED: Staff recommends signature of Document 2011-003 ATTENDANCE: Teresa Rozic DISTRIBUTION OF DOCUMENTS: One original to Teresa Rozic for the Lessee. Brenda Palatnick 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.) Date: 12/21/2010 Please complete all sections above the Official Review line. Department: Property & Facilities Contractor/Supplier/Consultant Name: [Telecare Mental Health Services, Inc. Contractor Contact: Type of Document: Amendment to Lease Goods and/or Services: N/A Contractor Phone #: 214-770-7901 Background & History: Deschutes County recently completed construction for a 7500 -square foot mental health residential treatment center at the public safety complex in Bend. Telecare Mental Health Services of Oregon, Inc. operates the facility under contract with County Health Services Department. Staff negotiated an industrial lease with this tenant. The parties find now that some provisions must be modified. This amendment clarifies the parties' obligations to maintain and repair the building and grounds as well as the purchase, installation and maintenance of certain improvements that Telecare will use. The amendment will be effective retroactively to the commencement date of the lease (the date Telecare began paying rent). Agreement Starting Date: 12/19/2010 Annual Value or Total Payment: Ending Date: ❑ Insurance Certificate Received check box) Insurance Expiration Date: 12/18/2020 Check all that apply: ❑ RFP, Solicitation or Bid Process ❑ Informal quotes (<$150K) ❑ Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37) Funding Source: (Included in current budget? ❑ Yes ❑ No If No, has budget amendment been submitted? ❑ Yes ❑ No Is this a Grant Agreement providing revenue to the County? ❑ Yes ® No Special conditions attached to this grant: 12/22/2010 Deadlines for reporting to the grantor: 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: n Yes ❑ No Contact information for the person responsible for grant compliance: Name: Phone #: Departmental Contact and Title: Teresa Rozic Department Director Approval: Phone #: 385-1414 Signature Date Distribution of Document: One original to Teresa Rozic for the Lessee. Official Review: County Signature Required (check one): ❑ BOCC ❑ Department Director (if <$25K) ❑ Administrator (if >$25K but <$150K; if >$150K, BOCC Order No. ) Legal Review Date Document Number 2011-003 12/22/2010 REVIEWED LEGAL COUNSEL AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL SINGLE -TENANT LEASE Parties: DESCHUTES COUNTY, a political subdivision of the State of Oregon, "Lessor". TELECARE MENTAL HEALTH SERVICES of OREGON, INC. an Oregon corporation, "Lessee". WHEREAS, Lessor and Lessee entered into a Lease (DC 2010-163) with an effective date of December 19, 2010, ("the Lease") covering space described as certain real property located at 20370 Poe Sholes Road, Bend, Oregon (the "Premises"); and WHEREAS, the parties desire to modify certain provisions of the Lease relating to the parties' obligations to (i) maintain and repair the Premises and (ii) the purchase, installation and maintenance of certain improvements and other items to be used by Lessee; NOW, THEREFORE, the parties agree that the Lease is hereby amended to read as follows: 1. This Amendment shall be effective December 19, 2010. 2. Section 6. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations, shall be amended to read as follows: 6.1 Lessee's Obligations. Subject to the provisions of Paragraph 2.2 (Condition), 5.3 (Lessee's Compliance with Applicable Law), 6.2 (Lessor's Obligations), 8 (Damage or Destruction), and 13 (Condemnation), Lessee shall, at Lessee's sole expense, keep maintain the Premises, - ' ' - - - - - - - - - - - - , including installations, alterations and fixtures (except alterations and fixtures provided by Lessor) in good order, condition and repair, including : - - - •• - - =, - - - - - • - • - - - - , such as plumbing, clectrical, lighting facilities, millwork/cabinetry, internal non-structural walls, ceilings, finished floor surfaces (e.q., buffing), interior finished wall surfaces = : _ :. - - - - (including interior touchup painting and repainting), lawns and landscaping, driveways, parking lots, fences, signs, sidewalks and parking Tots (including keeping driveways, sidewalks and parking lots cleared, clean, and free of snow, ice and debris), and signs located on the Premises. Lessee's obligations further include regular, periodic custodial and janitorial services, such as light bulb replacement and cleaning services (including shampooing of carpets). Lessor shall perform all DC 2011-003 Page 1 of 3 systems. Lessee's obligations shall include restorations, replacement or renewals when necessary to keep the Premises and all -improvements thereon or a part thereof, in good order, condition and state of repair. Lessee shall be obligated to repair and maintain all appliances that are furnished at the Premises as of the Commencement Date. Replacement of any appliances are the responsibility of Lessee. 3. Section 6.2 Lessor's Obligations, shall be deleted in full and in lieu thereof shall state: 6.2 Lessor's Obligations. Subject to the provisions of Paragraphs 2.2 6.2 Lessor's Obligations. Subject to the provisions of Paragraph 2.2 (Condition), 8 (Damage or Destruction), and 13 (Condemnation), Lessor shall, at Lessor's sole expense, have the obligation to maintain at the Premises in good order, condition and repair the structure, foundation, all life/safety systems and equipment (including without limitation fire sprinklers, fire alarms, fire extinguishers and other fire protection systems and equipment), building systems (including plumbing, electrical and HVAC) existing at the Premises as of the Commencement Date, perimeter fencing, irrigation system, security/access system (including the electronic card reader system existing at the Premises as of the Commencement Date), foundation, sub -floor, exterior/structural walls (including exterior painting and repair and replacement of any exterior building finishes (siding, rock, etc.)), internal structural components of interior bearing walls, interior and exterior doors, interior and exterior windows, the roof and roof supporting and drainage systems. Lessor hereby warrants that, as of the effective date of this First Amendment, Lessor knows of no defects in the electrical or plumbing systems and that the electrical and plumbing systems are in good working order. 4. Purchase, Installation and Maintenance of Certain Items. The Lease is amended to include the following new Section 45. 45. Lessee's Trade Improvements, Equipment and Fixtures. Subject to the provisions of Section 6, Lessee may install or cause to be installed at its expense such improvements, equipment and/or fixtures (collectively, the "Improvements") as are reasonably necessary for the operation of its business. The Improvements shall remain Lessee's personal property, and subject to the requirements of Section 6.2(c), title thereto shall continue in the owner thereof, whether installed on the Premises or not, and may include, without limitation, furniture and equipment for bedrooms, administrative offices, conference rooms and exercise rooms. 5. Except as otherwise provided in this Amendment, the terms and conditions of the DC 2011-003 Page 2 of 3 Lease remain in effect. LESSOR: DATED this day of , 2011 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON Tammy Baney, Chair ATTEST: Anthony DeBone, Vice -Chair Recording Secretary Alan Under, Commissioner LESSEE: DATED this day of , 2011 Telecare Mental Health Services of Oregon, Inc. By: Marshall D. Langfeld Title: Chief Financial Officer 1100 Marina Village Parkway, Alameda, CA 94501 Telephone: (510) 337-7950_ Facsimile: (510) 337-7969 Federal ID No. 94-1735271 DC 2011-003 Page 3 of 3