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HomeMy WebLinkAboutDoc 604 - Lease - Pot of Gold Thrift ShopDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.orp AGENDA REQUEST & STAFF REPORT For Board Business Meeting of October 28, 2009 Please see directions for completing this document on the next page. DATE: October 20, 2009 FROM: Teresa Rozic Property & Facilities 385 -1414 TITLE OF AGENDA ITEM: Consideration of Board Signature of Document 2009 -604, a Lease between Deschutes County and tae Pot of Gold Thrift Shop. PUBLIC HEARING ON THIS DATE? No. BACKGROUND AND POLICY IMPLICATIONS: The Pot of Gold Thrift Shop is a private nonprofit organization doing business as Cascade Peer & Self Help Center (the "Center "). It is a peer -run program serving adults with mental health issues. The program compliments Deschutes County Mental Health's Community Support Services, which supports it with some paid staff and funding. The Center operates the Rainbow Clubhouse located in the County's Courthouse Annex building and occupies the building known as the Pot of Gold Thrift Stare (currently used for office space, meeting room and resource center). The facilities are located in thc County's downtown Bend complex. Although the Center works closely with the County's Mental Health Department, and has been operating on the premises for years, it is a separate entitly and should operate its business in Count buildings under the terms of a lease agreement. FISCAL IMPLICATIONS: None. RECOMMENDATION & ACTION REQUESTED: Staff recommends signature of Document 2009 -604. 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: 10/20/09 Please complete all sections above the Official Review line. Department: Contractor /Supplier /Consultant Name: Contractor Contact: Beth Quinn Type of Document: Lease Property & Facilities Pot of Gold Thrift Shop Contractor Phone #: Goods and /or Services: Lease of County -owned property 419 -6521 Background & History: The Pot of Gold Thrift Shop is a private nonprofit organization doing business as Cascade Peer & Self Help Center (the "Center "). It is a peer -run program serving adults with mental health issues. The program compliments the Deschutes County Community Support Services, which supports it with some paid staff and funding. The Center operates the Rainbow Clubhouse located in the County's Courthouse Annex building and occupies the building known as the Pot of Gold Thrift Store (currently used for office space, meeting room and resource center). The facilities are located in the County's downtown Bend complex. Although the Center works closely with the County's Mental Health Department, and has been operating on the premises for years, it is a separate entitly and should operate its business in County buildings under the terms of a lease agreement. Agreement Starting Date: 11/01/2009 Annual Value or Total Payment: N /P■ Ending Date: 10/31/20121 ❑ Insurance Certificate Received deck box) I Insurance Expiration Date: r0 N/A Check all that apply: RFP, Solicitation or Bid Process Informal quotes ( <$150K) Exempt from RFP, Solicitation or Bid Process (specify — see DCC §2.37) I I I o a 3 /c f- �� N/A Funding Source: (Included in current budget? 1 1 Yes ❑ No If No, has budget amendment been submitted? 1 1 Yes ❑ No Is this a Grant Agreement providing revenue to the County? ❑ Yes ® No 10/21/20C 9 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: n Yes ❑ No Contact information for the person responsible for grant compliance: Name: Phone #: Departmental Contact and Title: Department Director Approval: Teresa Rozic Signature Phone #: 385 -1414 /0 1D1 Date Distribution of Document: One signed 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 10/20/2009 REVIEWED LEGAL COUNSEL LEASE This Lease is made by and between DESCHUTES COUNTY, a political subdivision of the State of Oregon ( "Lessor ") and POT OF GOLD THRIFT SHOP, a nonprofit corporation doing business as Cascade Peer & Self Help Center ( "Lessee "). Lessor hereby leases to Lessee and Lessee takes from Lessor the "Premises" described as follows: Property commonly known as 1128 NW Hill Street, Bend Oregon, 97701 (the "Hill Street Building ", and approximately Two Thousand Three Hundred Twenty (2,320) square feet of space in the building commonly known as the Courthouse Anne): located at 1128 NW Harriman Street, Bend, Oregon, 97701 (the "Courthouse Annex "). The parties agree that the terms of this Lease are as follows: 1. Occupancy a) Term. The effective date of this Lease shall be November 1, 2009, and shall continue until October 31, 2012, or three (3) years. 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 Hill Street Building twenty -hour hours a day, seven days a week. During the Lease terrn Lessee shall be entitled to access the Courthouse Annex Building Monday through Wednesday, 8:00 a.m. until 1:00 p.m., except on official Deschutes County holidays. Changes to the hours and days of access are at the discretion of County behavioral health staff. c) Renewal Option. 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 thus lease for three (3) years by giving at least thirty (30) days written notice to Lessor prior to the expiration of the lease term. 2. Rent. In exchange for the benefit the Lessee's service provides to the general public, Lessor shall not charge Lessee rent during the term of this Lease. Document 2009 -604 Page 1 of 7 3. Use of Premises. The Premises shall be used by Lessee for offices, meeting space; providing educational resources and operating a warm line. Capacity for the meeting room at the Hill Street Building is fifteen (15) persons. 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 oi` 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 of 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 tD 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 and volunteers 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 we attached to this lease as Exhibit A and by this reference are incorporated herein. Document 2009 -604 Page 2 of 7 Maintenance and Repair of Premises. a) Lessor's Obligations 1) 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. 2) 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 allowed but must be approved by the Lessor prior to installation. 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. 6. Inspection of Premises. Lessor shall have the right to inspect the Premises ary reasonable time or times to determine the necessity of repair and Lessee's compliance with its other obligations set forth in this Lease. Document 2009 -604 Page 3 of 7 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 dci so and collect the cost from Lessee. Any amount so expended shall bear interest ai 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 fee; 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 a certificate of insurance, as well as an endorsement, naming Deschutes County, is 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. Document 2009 -604 Page 4 of 7 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 (901 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 (90i 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 car 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 unperforated 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 g Dod 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 Document 2009 -604 Page 5 of 7 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: Jean Elizabeth Quinn 1128 NW Hill Street Bend, Oregon 97701 Phone: 419 -6521 15. Assignment. Lessee shall not assign or sub -rent the Premises without the prier 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 or 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 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, NDT 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 Document 2009 -604 Page 6 of 7 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 ALAN UNGER, COMMISSIONER Dated this day of , 2009 LESSEE: POT OF GOLD THRIFT STORE By: Jean Elizabeth Quinn Board Director Document 2009 -604 Page 7 of 7