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Agenda 09/22/2015 Item #16E 6 9/22/2015 16.E.6. EXECUTIVE SUMMARY Recommendation to approve a Lease Agreement with Roger Carvallo for office space to be utilized by the Health Department. OBJECTIVE: To lease office space for the Florida Department of Health's consolidated Regional Human Resource Center. CONSIDERATION: The Florida Department of Health (State) has made the decision to consolidate its Human Resource (HR) operations for six (6) Regional Human Resource Centers currently located in Tallahassee, Alachua, Pinellas, Indian River, Collier, and Palm Beach. The State has designated Collier County to be a Regional Human Resource Center (HR Center) to oversee (9) counties that will include Sarasota, Desoto, Charlotte, Lee, Highlands, Hendry, Glades, Okeechobee, and Collier counties, with seven (7) employees occupying the proposed leased space. These HR employees will be supporting over 1,300 personnel for the nine (9) counties. There is a possibility of additional expansion of staff and office space in the future. The State will fund the entire cost of rent, utilities, furniture, and any improvements required with no cost to Collier County. The State will also be responsible to procure the required insurance required by the landlord. The subject property is the space leased by the Clerk's Finance Department several years ago, located at Court Plaza III which is to the north of the Government Center. The Lease contains an initial five-year term with automatic annual renewals. The Lease can be terminated at any time by providing sixty day written notice to the landlord. The annual rent for the first year shall be $36,000.00 with annual three percent increases. There is no common area maintenance cost, but the State will be required to pay for electrical and communications utilities, as well as contracting for an annual air conditioning maintenance contract. The landlord is responsible for major repairs and replacement of the air-conditioning, plumbing, and electrical systems. FISCAL IMPACT: There is no Fiscal Impact to the County associated with this Executive Summary. The State of Florida will fund the total cost of rent, utilities and improvements and pay the landlord directly. GROWTH MANAGEMENT: There is no Growth Management Impact associated with this Executive Summary. LEGAL CONSIDERATIONS: The proposed Lease Agreement is approved for form and legality and requires majority vote for Board action.—JAK RECOMMENDATION: That the Board of County Commissioners approves the attached Lease Agreement with Roger Carvallo and authorizes its Chairman to execute same. PREPARED BY: Michael Dowling, Senior Property Management Specialist, Division of Facilities Management Attachments: Lease Agreement Packet Page -1880- 9/22/2015 16.E.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.E.16.E.6. Item Summary: Recommendation to approve a Lease Agreement with Roger Carvallo for office space to be utilized by the Health Department. Meeting Date: 9/22/2015 Prepared By Name: DowlingMichael Title: Property Management Specialist, Senior, Administrative Services Department 8/28/2015 10:41:45 AM Submitted by Title: Property Management Specialist, Senior, Administrative Services Department Name: DowlingMichael 8/28/2015 10:41:46 AM Approved By Name: MottToni Title: Manager-Property Acquisition &Const M, Administrative Services Department Date: 9/1/2015 3:01:11 PM Name: LinguidiDennis Title: Division Director-Facilities Mgmt. Administrative Services Department Date: 9/1/2015 3:21:46 PM Name: PriceLen Title: Department Head -Administrative Svc, Administrative Services Department Date: 9/1/2015 5:29:08 PM Name: KlatzkowJeff Title: County Attorney, Date: 9/4/2015 1:28:05 PM Name: WellsLaura Packet Page -1881- 9/22/2015 16.E.6. Title: Management/Budget Analyst, Senior, Office of Management&Budget Date: 9/8/2015 2:40:19 PM Name: KlatzkowJeff Title: County Attorney, Date: 9/9/2015 10:20:47 AM Name: CasalanguidaNick Title: Deputy County Manager, County Managers Office Date: 9/9/2015 11:19:18 AM Packet Page -1882- 9/22/2015 16.E.6. Lease#HD - LEASE AGREEMENT THIS LEASE AGREEMENT (`Lease') entered into this day of , 2015, between ROGER CARVALLO, Trustee of the Roger Carvallo Revocable Trust, dated June 8, 1990, whose mailing address is 121 Baltusrol Drive, Naples, Florida 34113-8322, hereinafter referred to as "LESSOR", and COLLIER COUNTY, a political subdivision of the State of Florida, whose mailing address is c/o Real Property Management, 3335 East Tamiami Trail, Suite 101,Naples, Florida 34112, on behalf of the Collier County Health Department,hereinafter referred as "LESSEE". WITNES SETH In consideration of the mutual covenants contained herein,and other valuable consideration,the parties agree as follows: ARTICLE 1. Demised Premises LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR, for the benefit of the Collier County Health Department, approximately 2,500 square feet of office space located at Court Plaza III, Suite 202, 2671 Airport Road,Naples, Florida, hereinafter referred to as the "Demised Premises", for the sole purpose of operating a government office. LESSEE covenants and agrees not to use, occupy, suffer or permit said Demised Premises or any part thereof to be used or occupied for any purpose contrary to law or the rules or regulations of any public authority. ARTICLE 2. Term of Lease LESSEE shall have and hold the Demised Premises for a term of five years, commencing on October 1, 2015 and ending September 30, 2020. LESSEE is granted the option,provided it is not then in default of any of the terms of this Lease, to renew same automatically for additional annual terms under the terms and conditions as provided herein. LESSEE, however, reserves the right to terminate this Lease, with or without cause, upon ninety (90) days prior written notice of such termination to LESSOR at the address set forth in ARTICLE 13 of this Lease. Said notice shall be effective upon actual receipt by LESSOR. ARTICLE 3. Rent it LESSOR shall grant LESSEE occupancy of the Demised Premises from September 22, 2015 to September 30, 2015 without rent in order to assist LESSEE to prepare the space for LESSEE'S occupancy. LESSEE hereby covenants and agrees to pay as rent for the Demised Premises the sum of Thirty-six Thousand Dollars and 00/100 Cents ($36,000.00), commencing on October 1, 2015, to be paid in equal monthly installments of Three Thousand Dollars and 00/100 Cents ($3,000.00) each; the LESSEE is tax exempt. Packet Page -1883- 9/22/2015 16.E.6. LESSEE shall provide LESSOR with the first month's rent payment, in advance, within ten days from LESSOR'S execution of this Lease. All rental payments shall be due and payable in advance on the first day of every calendar month during the term hereof. If the terms of this Lease shall commence on a day other than the first day of the month, LESSEE shall pay rental equal to one thirtieth (1/30th) of the monthly rental multiplied by the number of rental days of such fractional month. ARTICLE 4. Renewal Term Rent In the event LESSEE elects to renew this Lease, as provided for in ARTICLE 2, the rent set forth in ARTICLE 3 shall be increased for the ensuing one year renewal by 3%compounded annually. ARTICLE 5. Other Expenses and Charges LESSEE shall pay all janitorial services, electrical utilities, and communications services pertaining to the Demised Premises. LESSEE shall pay for any additions to the existing electrical system should it require to upgrade the service currently in place at the Demised Premises. LESSEE shall be required to procure and pay for an annual air-conditioning maintenance contract to also include the cost of any Freon required. LESSEE shall also replace the air-conditioning filters within the Demised Premises at its sole cost and expense. LESSOR shall be solely responsible for the cost of any repairs or replacement of the air- conditioning system,plumbing and electrical systems, and pest control at the Demised Premises. ARTICLE 6. Modifications to Demised Premises Prior to making any changes, alterations, additions or improvements to the Demised Premises, LESSEE will provide to LESSOR all proposals and plans for alterations, improvements, changes or additions to the Demised Premises for LESSOR'S prior written approval, specifying in writing the nature and extent of the desired alteration, improvement, change, or addition, along with the contemplated starting and completion time for such project. LESSOR or its designee will then have sixty (60) days within which to approve or deny in writing said request for changes, improvements, alterations or additions. LESSOR shall not unreasonably withhold its consent to required or appropriate alterations, improvements, changes or additions proposed by LESSEE. If after sixty (60) days there has been no written rejection delivered by LESSOR to LESSEE regarding-said proposals or plans, then such silence shall be deemed as an APPROVAL to such request of LESSEE. LESSEE covenants and agrees in connection with any maintenance, repair work, erection, construction, improvement, addition or alteration of any authorized modifications, additions or improvements to the Demised Premises, to observe and comply with all then and future applicable laws, ordinances, rules, regulation, and requirements of the United States of America, State of Florida, County of Collier, and any and all governmental agencies having jurisdiction over the Demised Premises. 2 Packet Page 4884- 9/22/2015 16.E.6. All alterations, improvements, and additions to said Demised Premises shall at once, when made or installed, be deemed as attached to the freehold and to have become property of LESSOR. Prior to the termination of this Lease or any renewal term thereof, or within thirty(30) days thereafter, if LESSOR so directs, LESSEE shall promptly remove all such additions, improvements, alterations, fixtures and installations which were placed in, on or upon the Demised Premises by or on behalf of LESSEE, and which are designated in said notice, and repair any damage occasioned to the Demised Premises by such removal and in default thereof, LESSOR may complete said removals and repairs at LESSEE'S expense. ARTICLE 7. Access to Demised Premises LESSOR, its duly authorized agents, representatives and employees, shall have the right after reasonable oral notice to LESSEE, to enter into and upon the Demised Premises or any part thereof at all reasonable hours for the purpose of examining same and making repairs or janitorial service therein, and for the purposes of inspection for compliance with provisions of this Lease. ARTICLE 8. Assignment and Subletting LESSEE covenants and agrees not to assign this Lease or to sublet the whole or any part of the Demised Premises, or to permit any other persons, other than another County agency, to occupy same without the prior expressed written consent of LESSOR. Any such assignment or subletting, even with the consent of LESSOR, shall not relieve LESSEE from liability for payment of rent or other sums herein provided or from the obligation to keep and be bound by the terms, conditions and covenants of this Lease. The acceptance of rent from any other person shall not be deemed to be a waiver of any of the provisions of this Lease or to be a consent to the assignment of this Lease or subletting of the Demised Premises. ARTICLE 9. Indemnity and Insurance To the extent legally possible, the parties will continue the insurance arrangements in effect at the time of the commencement of this Lease, adjusted only so far as necessary to account for their change in legal position vis-à-vis. ARTICLE 10. Maintenance LESSEE shall, at its sole cost and expense, keep the Demised Premises clean at all times. If said Demised Premises are not kept clean in the opinion of LESSOR, LESSEE will be so advised in writing. If corrective action is not taken within thirty (30) days of the receipt of such notice, LESSOR will cause the same to be cleaned and corrected and LESSEE shall assume and pay all necessary cleaning costs and such costs shall constitute additional rent which shall be paid by LESSEE within thirty(30) days of receipt of written notice of costs incurred by LESSOR. ARTICLE 11. Default by LESSEE Failure of LESSEE to comply with any provision or covenant of this Lease shall constitute a default and LESSOR may, at LESSOR'S option, terminate this Lease after thirty (30) days written notice to LESSEE, unless the default be cured within that notice period (or such additional time as is reasonably required to correct such default). 3 -,r Packet Page -1885- 9/22/2015 16.E.6. ARTICLE 12. Default by LESSOR LESSOR shall in no event be charged with default in the performance of any of its obligations hereunder unless and until LESSOR shall have failed to perform such obligations within ninety (90) days (or such additional time as is reasonably required to correct such default) after written notice from LESSEE to LESSOR properly specifying wherein LESSOR has failed to perform any such obligations. ARTICLE 13. Notices Any notice which LESSOR or LESSEE may be required to give to the other party shall be in writing to the other party at the following addresses: LESSEE: LESSOR: Board of County Commissioners Roger Carvallo c/o Real Property Management 121 Baltusrol Drive 3335 East Tamiami Trail Naples,Florida 34113-8322 Naples, Florida 34112 cc: Business Manager, Collier County Health Department ARTICLE 15. Surrender of Premises LESSEE covenants and agrees to deliver up and surrender to LESSOR possession of the olk Demised Premises upon expiration of this Lease, or its earlier termination, broom clean and in as good condition and repair as the same shall be at the commencement of the term of this Lease or may have been put by LESSOR or LESSEE during the continuance thereof, ordinary wear and tear and damage by fire or the elements beyond LESSEE'S control excepted. ARTICLE I6. General Provisions LESSEE fully understands that the police and law enforcement security protection provided by law enforcement agencies to the Demised Premises is limited to that provided to any other business or agency situated in Collier County, and LESSOR acknowledges that any special security measures deemed necessary for additional protection of the Demised Premises shall be the sole responsibility and cost of LESSEE and shall involve no cost or expense to LESSOR. LESSEE expressly agrees for itself, its successor and assigns, to refrain from any use of the Demised Premises which would interfere with or adversely affect the operation and maintenance of LESSOR'S standard operations as well as the LESSOR'S right to make improvements upon the Demised Premises as deemed necessary by LESSOR. 4 Packet Page -1886- . 9/22/2015 16.E.6. ARTICLE 17. Radon Gas In compliance with Section 404.056, Florida Statutes, all parties are hereby made aware of the following: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your County Public Health Department. ARTICLE 18. Effective Date This Lease shall become effective upon execution by both LESSOR and LESSEE. ARTICLE 19. Governing Law This Lease shall be governed and construed in accordance with the laws of the State of Florida. IN WITNESS WHEREOF,the parties hereto have hereunder set forth their hands and seals. AS TO THE LESSOR: DATED: By: ROGER CARVALLO, Trustee of the Roger Carvallo Revocable Trust dated June 8, 1990 WITNESS (signature) print name WITNESS (signature) print name LESSEE'S signature appears on the following page. =.1 Packet Page -1887- 9/22/2015 16.E.6. AS TO THE LESSEE: DATED: BOARD OF COUNTY COMMISSIONERS, COLLIER COUNTY, FLORIDA ATTEST: DWIGHT E. BROCK, Clerk By: By: ,Deputy Clerk TIM NANCE, Chairman Appro e, S: '.rm and legality: Irt Jeffrey 1. 14 atzkow, County Attorney 6 Packet Page -1888-