HomeMy WebLinkAboutDoc 223 - Lease to Dept of Water Resourceso {
Deschutes 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 July 13, 2011
Please see directions for completing this document on the next page.
DATE: July 6, 2011
FROM: Teresa Rozic Property & Facilities 385-1414
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Document 2011-223, a Lease between Deschutes County as
Lessor and The State of Oregon, acting by and through its Department of Water Resources, as Lessee.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Deschutes County has provided space for the Department of Water Resources since 2005. They wish to
continue leasing the space for another two years. This lease is for approximately 2.240 square feet at
1128 NW Harriman Street, Bend, commonly known as the Courthouse Annex Building. Rent is
$3,159.00 per month.
FISCAL IMPLICATIONS:
Annual income is $37,908.00.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends signature of Document 2011-223.
ATTENDANCE: Teresa Rozic
DISTRIBUTION OF DOCUMENTS:
Three originals to Teresa Rozic. County will get a fully signed original after signature by Department
of Administrative Services.
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:
05/02/2011
Please complete all sections above the Official Review line
Department:
Contractor/Supplier/Consultant Name:
Property & Facilities
The State of Oregon acting by and through its
Department of Water Resources
Contractor Contact: Kyle Gorman Contractor Phone #:
Type of Document: Lease
Goods and/or Services: N/A
541-388-6669
Background & History: Deschutes County has provided space for the Department of
Water Resources since 2005. They wish to continue leasing the space for another two
years. This lease is for approximately 2,240 square feet at 1128 NW Harriman Street,
Bend, commonly known as the Courthouse Annex Building.
Agreement Starting Date:
07/01/2011
Annual Value or Total Payment:
Ending Date:
$37,908.00 annual rental income
N/A - Statutory
❑ Insurance Certificate Received (check box)
Insurance Expiration Date:
06/30/2013
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? E Yes ❑ No
If No, has budget amendment been submitted? E Yes n No
Is this a Grant Agreement providing revenue to the County? I1 Yes No
Special conditions attached to this grant:
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: Yes ` No
7/6/201 1
Contact information for the person responsible for grant compliance: Name:
Phone #:
Departmental Contact and Title: Teresa Rozic
Phone #: 385-1414
Department Director Approval: 1
5-/
Signature Date
Distribution of Document:
•9fte original to Teresa Rozic for the Lessee
3 -
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 2011-223
5/3/2011
Via EMail
June 27, 2011
Deshutes County
14 NW Kearney Avenue
Bend, Oregon 97701
Attn: Teresa Rozic
RE: Lease #1357 Deschutes County (Lessor) and Department of Water Resources (Lessee)
Dear Teresa,
The above referenced lease dated July 1, 2005, (DAS Lease #1357) is due to expire on 6/30/11.
It is the intent of Lessor and Lessee to extend this lease, however, as of this date, the formal
documentation has not been completed.
Therefore, this letter shall serve as formal documentation that the Lease between Lessor and
Lessee dated July 1, 2005, for the Premises consisting of approximately 2,240 rentable square
feet of office space plus the use of common spaces such as toilet rooms, break room. Hallways,
and a conference room located at 1128 NW Harriman, Bend, Deschutes County, Oregon 97701
will remain in full force and effect from the date of expiration until such Amendment to renew is
executed. The Base Rent shall remain the same until such documents are executed.
This letter is being sent by Department of Administrative Services acting as leasing agent for
Lessee, Department of Water Resources. On behalf of Lessor, please indicate your
acknowledgement and acceptance of these terms by signing below.
Thank you for your consideration in this matter.
Sincerely,
Dim &AMAPA
Diana Grimes, Leasing & Property Agent
Real Property Services
Phone: (503) 373-7131
Fax: (503) 373-7210
Email: Diana.E.Grimes@state.or.us
cc: Salem Opeifa WR
ACCEPTED AND AGREED:
LESSOR: Deschutes County, a political
subdivision of the State of Oregon
Tammy Baney, Chair
Deschutes County Board of
Commissioners
By:
LESSEE: STATE OF OREGON,
acting by and through its
Departnyefi`e Water Resources
By:
DEPARTMENT OF ADMINSTRATIVE SERVICES
Facilities Division
1225 Ferry Street SE, U100
Salem OR 97310
Phone: (503) 378-2865
Fax: (503) 373-7210
ELECTRONIC CONTRACT TRANSMITTAL LETTER AND CONFIRMATION
June 30, 2011
1, .r&12 A i �' 2 -1 , (title) P g.o PE--7ar
received a copy of DAS Lease Control # 1357 between the State of Oregon acting by and through the
Water Resources Department and DESCHUTES COUNTY, a politieal subdivision of the State of
Oregon by email from Diana Grimes on June 30, 2011. On , 2011, I signed the
printed form of this Contract without change from the electronically transmitted document. A copy of
the signature page from this Contract containing my signature and dated , 2011 is
included with this electronic transmission.
Signature Date
p -c.'Q-1-) I r -3( --
Return
-3( --
Return the signed and dated Lease and completed Electronic Contract Transmittal Letter, by email to:
Diana Grimes
1225 Ferry StSE,U100
Salem, OR 97301
Phone: (503) 373-7131
Fax: (503) 373-7210
Email: Diana.e.grimes@state.or.us
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 OF OREGON acting by and through its DEPARTMENT
of WATER RESOURCES, ("Lessee").
Lessor hereby leases to Lessee and Lessee takes from Lessor the "Premises" described as
follows:
Approximately Two Thousand Two Hundred Forty (2,240) square feet of office space
plus use of common spaces such as toilet rooms, break room, hallways, and conference
room, located at 1128 NW Harriman Street, Bend, Oregon 97701.
The parties agree that the terms of this Lease are as follows:
1. Term. The effective date of this Lease shall be July 1, 2011, or the date on which each
party has signed this Lease, whichever is later, and shall continue until June 30, 2013, or
twenty-four (24) months. Lessor and Lessee each reserve the right to terminate this
Lease prior to its expiration with thirty (30) days written notice, given to the other party.
Except as otherwise provided in this Lease, if the Lessee is not then in default and with
Lessor's approval, Lessee has the option to renew this lease for one (1) year by giving at
least thirty (30) days written notice to Lessor prior to the expiration of the lease term.
2. Rent. Lessee shall pay to Lessor as monthly base rent per month Three Thousand One
Hundred Fifty -Nine Dollars ($3,159.00), 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.
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, Oregon Department of Water Resources. 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 2011-223 Page 1 of 7
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 2011-223 Page 2 of 7
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.
9. 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 eight
percent (8%) 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.
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.
d) Subject to the limitations and conditions of the Oregon Tort Claims Act, ORS 30.260
through 30.300, and the Oregon Constitution, Article XI, Section 7, Lessee shall carry
DC 2011-223 Page 3 of 7
commercial general liability insurance, on an occurrence basis with a combined single
limit of not less than limitations set forth in ORS 30.271. Lessee may fulfill its obligations
through a program of self-insurance pursuant to applicable law. Lessee shall provide
Lessor with a certificate of insurance, as well as an endorsement, naming Deschutes
County, its officers, agents, 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 or a legally
established program of self-insurance for workers compensation claims.
f) Indemnification: Subject to the limitations of Article XI, Section 7 of the Oregon
Constitution and the Oregon Tort Claims Act (ORS 30.260 through 30.300), the Lessee
shall indemnify, within the limits of and subject to the restrictions in the Tort Claims Act,
the Lessor against any liability for personal injury or damage to life or property arising
from the Lessee's negligent activity under this Lease, provided, however, the Lessee
shall not be required to indemnify the Lessor for any such liability arising out of the
wrongful acts of Lessor, its officers, employees or agents. Subject to the limitations of
Article XI, Section 10 of the Oregon Constitution and the Oregon Tort Claims Act (ORS
30.260 through 30.300), the Lessor shall indemnify, within the limits of and subject to the
restrictions in the Tort Claims Act, the Lessee against any liability for personal injury or
damage to life or property arising from the Lessor's negligent activity under this Lease,
provided, however, the Lessor shall not be required to indemnify the Lessee for any
such liability arising out of the wrongful acts of Lessee, its officers, employees or
agents.
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.
DC 2011-223 Page 4 of 7
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
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
14 NW Kearney Avenue
Bend, Oregon 97701
Phone: 541-383-6713
Lessee: State of Oregon
Dept. of Administrative Services — Facilities Division
1225 Ferry St SE, U100
Salem, Oregon 97301-4281
Phone: 503-378-2865
16. Assignment. Lessee shall not assign or sub -rent the premises without the prior written
consent of the Lessor.
17. 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 enforce any rights or obligations
arising from this Lease, each party will be responsible for paying its own attorney fees.
18. Waiver of Subrogation. Neither Lessor nor Lessee shall be liable to the other for any loss
arising out of damage to or destruction of the Premises or the building or the contents
thereof, when such loss is caused by any of the perils which are or could be included
within or insured against by a standard form of fire insurance with extended coverage,
including sprinkler leakage insurance, if any. All such claims against one another for any
and all Toss, however caused, hereby are waived. Said absence of liability shall exist
whether or not the damage or destruction is caused by the negligence of either Lessor or
Lessee or by any of its respective agents, servants or employees. Each party shall fully
provide its own property damage insurance protection at its own expense, and each
DC 2011-223 Page 5 of 7
party shall look to its respective insurance carriers for reimbursement of any such loss,
and further, the insurance carriers involved shall not be entitled to subrogation under any
circumstance.
19. Funding. The parties understand that rental and other charges to Lessee under this
Lease are to be paid only from funds derived by legislative appropriation or budget
limitation, The parties mutually understand that this Lease is made by the Lessee in its
official capacity as a state agency and not by its officers as individuals.
20. Non -appropriation.
(a) If sufficient funds have not been provided in the legislatively approved budget of
Lessee, Department of Water Resources, to permit Lessee in the exercise of its
reasonable administrative discretion to continue this Lease, Lessee may terminate this
Lease without further liability to Lessor with not less than one hundred twenty (120) days
prior written notice to Lessor. During such termination notice period, Lessee may
negotiate with Lessor for continued occupancy in a portion of the Premises at a reduced
rent. If that is not feasible on mutually acceptable terms, then the Lease shall terminate
as notified. In determining the availability of funds to Lessee, Lessee will use the budget
approved by the Oregon State Legislature or acts of the Legislative Emergency Board.
(b) If by a specific legislative act, Lessee as named herein is abolished or its functions
absorbed into other state agency or agencies, Lessee may terminate this Lease without
further liability to Lessor with not less than one hundred twenty (120) days prior written
notice to Lessor.
(c) If any of the foregoing occurs with respect to an agency/division occupying only a
portion of the Premises, Lessee shall have the right to terminate as to that portion of the
Premises.
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.
DC 2011-223 Page 6 of 7
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 UNGER, COMMISSIONER
LESSEE:
APPROVAL:
STATE OF OREGON acting by and through its
Department of Water Resources
By:
Date:
STATE OF OREGON acting by and through its
Department of Administrative Services
By:
Facilities Division
Date:
DC 2011-223 Page 7 of 7
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 UNGER, COMMISSIONER
LESSEE:
APPROVAL:
STATE OF OREGON acting by and through its
Department of Water Resources
By:
Date:
STATE OF OREGON acting by and through its
Department of Administrative Services
By:
Date:
Facilities Division
COUNTERPART SIGNATURE PAGE 1
DC2011-223 Page7of7
LESSOR:
Dated this day of , 2011
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
TAMMY BANEY, CHAIR
ATTEST: ANTHONY DEBONE, VICE -CHAIR
Recording Secretary
LESSEE:
APPROVAL:
ALAN UNGER, COMMISSIONER
STATE OF OREGON acting by and through its
Departmer o V ter Resources
By: if',
Date: /.a'` ` 1
STATE OF OREGON acting by and through its
Department of Administrative Services
By:
Facilities Division
Date:
COUNTERPART SIGNATURE PAGE 2
DC 2011-223 Page 7 of 5