HomeMy WebLinkAboutLease - KGs Bistro - State CourtsDeschutes 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 24, 2009
Please see directions for completing this document on the next page.
DATE: June 17, 2009
FROM: Teresa Rozic Property & Facilities 385 -1414
TITLE OF AGENDA ITEM:
Consideration of Signature of Document 2009 -296, a Lease between Deschutes County and KG's
Bistro, LLC.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
The State Courts want coffee cart services similar to those in the County Services Building. The
Courts and the County have attempted to obtain ventor services but were unsuccessful until now .
KG's Bistro LLC has agreed to provide coffee cart services at the Justice Building. They will offer
food and beverages for sale to the public at a 200 square foot location on the second floor of the
Justice Building, 1100 NW Bond Street, Bend.
This is a two -year lease with an option to renew. In exchange for the benefit to the general public and
state and county employees, the County will not charge rent.
FISCAL IMPLICATIONS:
Staff is requesting and suggesting that the space be leased free of charge.
RECOMMENDATION & ACTION REQUESTED:
Staff recommends signature of Document 2009 -296.
ATTENDANCE: Teresa Rozic
DISTRIBUTION OF DOCUMENTS:
One fully signed original to Teresa Rozic for the Lessee.
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:
06/17/2009
Please complete all sections above the Official Review line.
Department:
Contractor /Supplier /Consultant Name:
Contractor Contact:
Jerry Kaping
Type of Document: Lease
Property & Facilities
KG's Bistro LLC, Lessee
Contractor Phone #:
541 - 385 -5504
Goods and/or Services: Lease for a coffee cart in the Justice Building
Background & History: The State Courts want coffee cart services similar to those in
the County Services Building. The Courts and the County have attempted to obtain
ventor services but were unsuccessful until now.
KG's Bistro LLC has agreed to provide coffee cart services at the Justice Building. They
will offer food and beverages for sale to the public at a 200 square foot location on the
second floor of the Justice Building, 1100 NW Bond Street, Bend.
This is a two -year lease with an option to renew. In exchange for the benefit to the
general public and state and county employees, the County will not charge rent.
Agreement Starting Date:
July 1, 2009
Ending Date:
June 30, 2011
Annual Value or Total Payment: Staff is requesting and suggesting that the space be
leased free of charge.
® Insurance Certificate Received (check box)
Insurance Expiration Date:
01/12/2010
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
6/17/2009
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 n No
Contact information for the person responsible for grant compliance: Name:
Phone #:
Departmental Contact and Title:
Phone #: 385 -1414
Teresa Rozic, Property Specialist
Department Director Approval: Ce I Ii /D
Signature Date
Distribution of Document: One fully signed original to Teresa Rozic for the Lessee.
Official Review:
County Signature Required (check one): ❑ BOCC ❑ Department Director (if <$25K)
LI Administrator (if >$25K but <$150K; if >$150K, BOCC Order No. )
Legal Review Date
Document Number 2009 -296
6/17/20, ,9
LEASE
This Lease is made by and between DESCHUTES COUNTY, a political subdivision ofthe
State of Oregon ( "Lessor ") and KG'S BISTRO LLC, an Oregon corporation ( "Lessee ").
Lessor hereby leases to Lessee and Lessee takes from Lessor the "Premises" described
as follows:
Approximately Two Hundred (200) square feet of space on the second floor of the Justice
Building located at 1100 NW Bond Street, Bend, Oregon 97701, together with necessary
ingress and egress for such space.
The parties agree that the terms of this Lease are as follows:
1. Occupancy
a) Term. The effective date of this Lease shall be July 1, 2009, and shall continue
until June 30, 2011, 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.
b) Possession. During the Lease term Lessee shall be entitled to access the
Premises Monday through Friday, 7:00 a.m. until 5:00 p.m., except on official
Deschutes County holidays.
c) Renewal Option. Except as otherwise provided in this Lease, if the Lessee is not
then in default, this lease shall automatically renew upon the same terms for a
period of one month unless at least thirty (30) days prior to the expiration of the
lease term either party gives the other party notice of termination or modification.
2. Rent. In exchange for the benefit the Lessee's service provides to the general
public and employees, Lessor shall not charge Lessee rent during the term of this
Lease.
3. Use of Premises. The Premises shall be used by Lessee for operation of a Class III
mobile food unit. Lessee shall offer for sale to the general public food and
beverages, including, but not limited to, sandwiches, soup, pastries, and fruit, as
well as coffee, tea, soft drinks and juices. Lessee shall furnish customer seating
and tables. Lessee shall provide all necessary materials and supplies for food and
beverage preparation, service, and sanitation. Lessee shall operate such use
KG Bistro 2009 -296 Page 1 of 7
during the hours of 7:00 a.m. until 4:00 p.m. Monday through Friday, except
Deschutes County holidays.
4. Restrictions on Use. In connection with the use of the Premises, Lessee shall:
a) Conform to all applicable laws and regulations of any public authority affecting
Lessee's use, and correct at Lessee's own expense any failure of compliance
created through Lessee's fault or by reason of Lessee's use.
b) Refrain from making any marks on or attaching any sign, insignia, antenna,
aerial, or other device to the walls or windows without the prior written consent of
Lessor, which consent shall not be withheld unreasonably.
c) Lessee shall not cause or permit any Hazardous Substance to be spilled, leaked,
disposed of, or otherwise released on or under the Premises. Lessee shall comply
with all Environmental Laws and exercise the highest degree of care in the use,
handling, and storage of Hazardous Substances and shall take all practicable
measures to minimize the quantity and toxicity of Hazardous Substances used,
handled, or stored on the Premises. Upon the expiration or termination of this
Lease, Lessee shall remove all Hazardous Substances from the Premises. The
term Environmental Law shall mean any federal, state, or local statute, regulation or
ordinance or any judicial or other governmental order pertaining to the protection cif
health, safety or the environment. The term Hazardous Substance shall mean any
hazardous, toxic, infectious or radioactive substance, waste and material as defined
or listed by Environmental Law and shall include, without limitation, petroleum oil
and its fractions.
d) Lessee shall maintain its facilities and equipment on the Premises so as to
impact in the least possible way Lessor's equipment, facilities and personnel.
Lessee shall also secure its personal property on the Premises in a clean, safe and
sanitary condition when not in use.
e) Lessee warrants the honesty and integrity of all personnel Lessee authorizes to
access or use the Premises. Lessee shall notify Lessor in writing in advance of any
changes in personnel having access to the Premises, including without limitation
suspension, termination or resignation. Lessee shall have access to and through
Lessor's security access system and shall be responsible for retrieving access keys
from Lessee's personnel who are no longer authorized on the Premises.
f) Comply with Lessor's policies regarding smoking, parking, fragrances, facilities
maintenance, facilities use and violence in the workplace. Those policies aTe
attached to this lease as Exhibit A and by this reference are incorporated herein.
5. Maintenance and Repair of Premises.
a) Lessor's Obligations
KG Bistro 2009 -296 Page 2 of 7
1) Lessor will make adequate electrical outlets and power available for
Lessee's equipment.
2) 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 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 improvements, grounds and
landscaping in good repair and appearance replacing dead, damaged or diseased
plant materials when necessary.
3) 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.
b) Lessee's Obligations.
1) 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.
2) Lessee's signage and decorative accessories may be provided but must
be approved by the Lessor prior to installation. Interior wall- mounted or free-
standing signs and decorative accessories may also be allowed, but must not
interfere with visitor traffic flow or County and State message boards. Placement of
exterior signs, whether wall- mounted or free - standing, will be subject to the prior
approval of the County's Building Services Division. Exterior signs, if allowed, must
also comply with the City of Bend sign code and be installed in accordance with all
related City permit regulations. Printed flyers, menus, notices, announcements, and
other promotional materials may be distributed among the neighboring buildings of
the County's complex for the purposes of increasing customer traffic with prior
approval of the Lessor.
3) Lessee, at its expense, shall keep Lessee's equipment and facilities in a
first -class repair, operating condition, working order and appearance. Lessee shall
also be responsible for any repairs to other property necessitated by its negligence
or the negligence or wrongful acts of its agents, employees and invitees.
KG Bistro 2009 -296 Page 3 of 7
6. Inspection of Premises. Lessor shall have the right to inspect the Premises any
reasonable time or times to determine the necessity of repair and Lessee's,
compliance with its other obligations set forth in this Lease.
7 Utilities and Services.
a) Lessor shall provide water, sewer, gas, electricity, and trash removal service for
the Premises and janitorial services for the common areas of the building. Lessee
shall provide its own telephone service and janitorial services for the Premises.
b) Lessee agrees to pay property taxes on its leased space.
8. 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.
9. 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) Lessee shall carry commercial general liability insurance, on an occurrence
basis; with a combined single limit of not less than $500,000 each occurrence, with
an annual aggregate limit of $1,000,000. Lessee shall provide Lessor with
certificate of insurance, as well as an endorsement, naming Deschutes County, it 3
KG Bistro 2009 -296 Page 4 of 7
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 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.
10. 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.
11. 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.
12. 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.
13. 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
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 gook
faith effort to perform the obligation within such period and continues diligently to
KG Bistro 2009 -296 Page 5 of 7
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).
14. 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: 383 -6713
Lessee: KG's Bistro LLC
Jerry L. Kaping
66519 Ponderosa Loop
Bend, OR 97701
Phone: 385 -5504
15. Assignment. Lessee shall not assign or sub -rent the Premises without the prior
written consent of the Lessor, which consent shall not be withheld unreasonably
16. 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 cr
obligations arising from this Lease, each party will be responsible for paying its own
attorney fees.
17. 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.
18. 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, I =
MADE, SHALL BE EFFECTIVE ONLY IN THE SPECIFIC INSTANCE AND FOR
THE SPECIFIC PURPOSE GIVEN. THERE ARE NO UNDERSTANDING
AGREEMENTS, OR REPRESENTATIONS, ORAL OR WRITTEN, Nor
KG Bistro 2009 -296 Page 6 of 7
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.
Dated this day of , 2009
LESSOR:
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
TAMMY BANEY, CHAIR
ATTEST: DENNIS R. LUKE, VICE CHAIR
Recording Secretary
Dated this
LESSEE:
ALAN UNGER, COMMISSIONER
KG Bistro 2009 -296 Page 7 of 7