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Agenda 05/22/2018 Item #16D 205/22/2018 EXECUTIVE SUMMARY Recommendation to approve a Second Amendment to Lease Agreement with Bigi & Bigi, LLC, for additional office space to be utilized by the Collier County Health Department, at State of Florida expense. OBJECTIVE: With Collier County designated by the State of Florida Department of Health (DOH) to continue as its Regional Human Resource Center, additional office space is required for increasing services. CONSIDERATION: The DOH is continuing to consolidate administrative public health functions and services to Collier County. DOH-Collier serves the residents and visitors of Collier County by providing services within the Center for Disease Control and Prevention’s (CDC) ten (10) essential Public Health Services and the Public Health Accreditation Board’s (PHAB) twelve (12) Public Health Accreditation Domains. 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 for procuring the insurance required by the landlord. The subject property is the space that was leased by the Clerk’s Finance Department several years ago, located at Court Plaza III, which is to the north of the Government Center. In 2015, the Board of County Commissioners (Board) approved a Lease Agreement for Suite 201 for the Health Department to occupy Suite 201 in the same building. The Health Department needs additional space, and if the Board approves this Lease, an additional Two Thousand Five Hundred (2,500) square feet of office space will be added for their operation. The 2015 Lease contains an initial five (5) year term with automatic annual renewals. The term for the additional space will commence on June 1, 2018, and will expire on the same day of the 2015 Lease. The annual rent for the additional space shall be $36,000. The total annual rent for the combined new space and the existing space shall be $72,000, in which annual three percent (3%) increases will commence on October 1, 2020. There is no common area maintenance cost, but the State will be required to pay for office janitorial service, electric, 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. The original Lease contains a provision for automatic annual renewals. The County can terminate the Lease at any time by providing sixty -day written notice to the landlord. FISCAL IMPACT: There is no Fiscal impact associated with this Executive Summary in that 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. LEGAL CONSIDERATIONS: This Item is approved for form and legality and requires a majority vote for Board action. -JAB RECOMMENDATION: To approve the attached Second Amendment to Lease Agreement with Bigi & Bigi, LLC, and authorize its Chairman to execute same. Prepared By: Michael Dowling, Senior Property Management Specialist, Division of Facilities Management 16.D.2 Packet Pg. 903 05/22/2018 ATTACHMENT(S) 1. Health Department HR Suite 202 Second Admendment to Lease Agreement JAB 2018 (PDF) 2. Health Departmetn HR First Amendment and Assignment to Lease Agreement Bigi and Big 2016 (PDF) 3. Health Departmetn HR Lease Agreement Carvallo 2015 (PDF) 16.D.2 Packet Pg. 904 05/22/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.2 Doc ID: 5474 Item Summary: Recommendation to approve a Second Amendment to Lease Agreement with Bigi & Bigi, LLC, for additional office space to be utilized by the Collier County Health Department, at State of Florida expense. Meeting Date: 05/22/2018 Prepared by: Title: Property Management Specialist, Senior – Facilities Management Name: Michael Dowling 04/26/2018 12:20 PM Submitted by: Title: Senior Network Administrator - Info Technology – Information Technology Name: Dennis Linguidi 04/26/2018 12:20 PM Approved By: Review: Operations & Veteran Services Sean Callahan Additional Reviewer Completed 04/30/2018 2:19 PM Facilities Management Toni Mott Additional Reviewer Completed 05/02/2018 4:09 PM Solid and Hazardous Waste Dan Rodriguez Additional Reviewer Completed 05/04/2018 2:19 PM Public Services Department Todd Henry Level 1 Division Reviewer Completed 05/04/2018 3:03 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 05/04/2018 4:18 PM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 05/08/2018 3:28 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/08/2018 4:21 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/09/2018 11:32 AM Budget and Management Office Ed Finn Additional Reviewer Completed 05/11/2018 5:01 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 05/13/2018 8:55 PM Board of County Commissioners MaryJo Brock Meeting Pending 05/22/2018 9:00 AM 16.D.2 Packet Pg. 905 WHEREAS, the LESSOR and LESSEE have previously entercd into a Lease Agreement dated September 22, 2015, and as assigned under the Assignment and Amendment of Lease Agreement dated September 2;2, 2016, hereinaffer referred to collectively as the 'Lease,' which are ottrched hereto and made a part hereof this Amendment; and WHEREAS' the LESSEE and LESSOR arc desirous of amending the L,ease to add additional square footage to the oflice space, to clariff the term ofthe Lease, and to adjust the;nt; and NOW, THEREFORE, in consideralion of the covenants and agreem€nts provided within the Lease, and Ten Dollars ($10.00) and other valuable consideration, th€ Lease is hereby further amended as follows: l. The following provision shall be added to Article l, f,remised premises, ofthe Lease: LESSOR hereby leases to LESSEE and LESSEE hereby leascs from LESSOR approximately ir5e0 5.000 squate feet of oflice space located at Court Plaza lll, Suite 201 and 202,2671Airport Road, Naples, Florida, hereinafter referred to as the "Demised prcmises", for the sole purpose ofoperating a govemmenioffice. LESSEE cov€nants and agrees not to use, occupy, suffer or permit said Demised premises or any pan thereofto be used or occupied for any purpose contrary to law or the rules or regulations ofany public authority. 2. The following provision shall be added to Article 2, Term, ofthe Lease #HD-104 SECOND AMENDMENT TO LEASE AGREEMENT of THIS SECoND AMENDMENT To LEASE ACREEMENT ('Amendmenr"), entered inro this _ day 2018, by and between BIGI & BIGI, LLC, a Florida Limited Liability Company, whose mailing address i s 144 Governors Hill Road, Oxford, CT 06478, hereinaffer referred to as.,LESSOR," and CO LLIER COUNTY, a political subdivision of lhe Stste of Florida, whose mailing addrcss is c/o Real property l0l, Naples, Florida 341 12, on behalf of the Collier County Health E." WITNESSETH Management, 3335 East Tamiami Trail, Suite Department, hereinafter referred to as "LESSE LESSEE shall have and hold the Demised prerni ses for a term of five years, commencing onOctober l, 2015, and ending Seprember 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 lbr additional annual terms under the terms and conditions as provided herein. The term for Suite 202 shall commence on June l. 201g. and end September 30. 2 020. LESSEE hereby covenants and agrees to pay as rent for the Demised premises the sum of Thiq. Seventy-'I'wo Thousand and 00/100 Cents 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 ARTICI-E 13 ofthis lrase. Said notice shall be effective upon actual receipt by LESSOR. 3. The following provision shall be added to A(icle 3, Rent ofthe [rase: - LESSOR shall grant LESSEE occupancy of the Dernised Premises from September zz, ZOl5 toSeptember 30, 2015 without rent in order to assist LESEE to prcpare lhe space for LESSEE'S occupancy. ($72,000.00), commencing on ee{ebe+{4e}S June l. 2018. to Seotember 30. 2020, to be paid in equal @ 16.D.2.a Packet Pg. 906 Attachment: Health Department HR Suite 202 Second Admendment to Lease Agreement JAB 2018 (5474 : Health Department Office Space at monthly installments of Three Six Thousand Dollars and 00/100 Cenrs ($3+0030 $6.000.00) each; the LESSEE is tax exempt. 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 olevery calendar month during the term hereof. If the terms of this Lease shall commence on a day other than the first day ofthc month, LESSEE shall pay rental equal to one thirtieth (l/30th) of the monthly rental multiplied' by the number ofrental days of such fractional month. 4. Except as expressly provided herein, the Lease remains in full force and effect according to the terms and conditions contained therein, and said terms and conditions are applicable herelo except as expressly provided otherwise herein. IN WITNESS WHEREOF, the LESSEE and LESSOR have hereto executed this Amendmenr the day and year first above written. AS TO THE LESSOR: DATED: BY: Witness (signature)AL BIGI, Manager Print name and Title Witness (signatue) (print name) AS TO THE LESSEE:BOARD OF COLINTY COMMISSIONERS, COLLIER COLNTY, FLORIDA DATED: ATTEST: DWIGHT E. BROCK, Clerk BY: ANDY SOLIS, Chairman BY: , Deputy Clerk "'o9''s @ 2 Jennifer A. Belpedio, Assistant County Attomey Approved as to form and legality: \\tG 16.D.2.a Packet Pg. 907 Attachment: Health Department HR Suite 202 Second Admendment to Lease Agreement JAB 2018 (5474 : Health Department Office Space at ASSIGNⅣIENT AND AMENDⅣIENT OF LEASE AGMEMENT " This Assignment and Amendment of Lease Agreement is dated this -2 J D of \ /,o-fCo--r*1,"-"- ,2016,by and between ROGER CARVALLO, Trustee of the Roger Carvallo ffi8,l990,hereinafterreferredtoas.Assignor,,BIGI&BIGI,LLC,aFlorida Limited Liability Company, whose mailing address is 144 Govemors Hill Road, Oxford, CT 06478, hereinafter referred to as 'Assignee.' RECITALS: WHEREAS, on September 22,2015 the ROGER CARVALLO, Trustee of the Roger Carvallo Revocable Trust, dated June 8, 1990, and COLLIER COUNTY entered into a Lease Agreement, dated September 22, 2015, for office space located at 2671 Airport Road, Naples, Florida (hereinafter referred to as the Premises); and WHEREAS, on August 30,2016, the Premises were conveyed to BIGI & BIGI, LLC; and WHEREAS, Assignor desires to assign all of his rights, title and interest in the Lease Agreement to Assignee as of the date of conveyance as well as amended the Lease Agreement to correct a scrivener's error in the suite number in the address of the Premises. NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the Parties agree as follows: l. The foregoing Recitals are true and correct and are incorporated by reference herein. 2. Assignor hereby assigns the Lease and all of its right, title and interest thereunder to Assignee. 3. Assignee hereby accepts such assignment. Assignee shall have all of the rights of Assignor under the Lease including, without limitation. 4. Assignee hereby assumes and agrees to be bound by all of Assignor's obligations under the Lease. Assignee shall perform all the terms, covenants and conditions of the Lease. This Assignment shall be binding upon and shall inure to the benefit of the Assignee and COLLIER COLfNTY and their respective heirs, legal representatives, successors and assigns. Article I of the Lease Agreement, attached hereto is amended to read as follows: ARTICLE I. 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 W 2Ol, 2671 Airport Road, Naples, Florida, hereinafter referred to as the 'Demised Premises,' for the sole purpose of operating a govemment 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. 5. 6. ヾ ・ ‐ t静 16.D.2.b Packet Pg. 908 Attachment: Health Departmetn HR First Amendment and Assignment to Lease Agreement Bigi and Big 2016 (5474 : Health Department Office IN WITNESS WHEREOF,the Parties havc executcd this Assigllment and AFnendlncnt the datc flrst written abovc. DATED: 9 ユ」 /し WIINESSES: (Signature) ノ′'ィ ι (Signature ASSIGNOR: ASSIGNEE:総評ユー ALLO, Trustee of the Roger Rcvocable Trust,datcd June 8,1990 (print or type name) (Signature) (print or type name) ALI BIGI, Manager 16.D.2.b Packet Pg. 909 Attachment: Health Departmetn HR First Amendment and Assignment to Lease Agreement Bigi and Big 2016 (5474 : Health Department Office Lease #HD -′0/ ,2015, bcm、cn ROGER CARVALLO,Tnistcc of thc Roger Cawallo Rcvocablc Trust,daFed Junc 8,1990, whosc mJling addrcss is 121 Baltusrol DHvc,Naples,FloⅡda 34H3‐8322,hereinaftcr rcferred to as∥LESSOR∥,and COLLIER COUNTY,a political subdi宙 sion of thc Statc of Flo五 dtt whosc m“ling ddrcss is c/o Rcal Propc●Management,3335E"t Tttdalni Trail,Suite 101,Naplcs,Flo五 da 34112, on bchafofthe c。1lier COunty Health Dcpartlnent,hereinaner refcrred as"LESSEE" WITNES SETH In consideration of the mutual covenants contained herein, and other valuable consideration, the parties agree as follows: ARTICLE l. Demised Premises LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR" for the benefit of the Collier County Health Departrnent, approximately 2,500 square feet of offrce space located at Court Plaza III, Suite 202, 2671 Atport Road, Naples, Florida, hereinafter referred to as the "Demised Premises", for the sole purpose of operating a govemment 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. ARTICLE2. Term oflease 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 terrns of this Lease, to renew same automatically for additional annual terms urder 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 ofthis Lease. Said notice shall be effective upon actual receipt by LESSOR. ARTICLE3. Rent LESSOR shall grant LESSEE occupancy ofthe 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. ⅥENT(lilii:tiliiiiiliis z′:ィ 4る 。fTⅢS ELヽ SE AGREEl OCノ● 16.D.2.c Packet Pg. 910 Attachment: Health Departmetn HR Lease Agreement Carvallo 2015 (5474 : Health Department Office Space at Court Plaza III) 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 0/30th) 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, specifring 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. -;:'-. .'.-tj 16.D.2.c Packet Pg. 911 Attachment: Health Departmetn HR Lease Agreement Carvallo 2015 (5474 : Health Department Office Space at Court Plaza III) 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 properly of LESSOR. Prior to the termination of this Lease or any renewal term thereof, or within thifty 1iO; aayr 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 complele 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 pu{pose of examining same and making repairs or janitoriai sirvice 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 legaliy possible, the parties will continue the insurance arrangements in efflect at the time of the commencement of this Lease, adjusted only so far as necessary to account for their change in legal position vis-i-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, LESSORwill 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 bV LESSEE within thitty (30) days of receipt of written notice of costs incurred by LESSoR. ARTICLE ll.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). 16.D.2.c Packet Pg. 912 Attachment: Health Departmetn HR Lease Agreement Carvallo 2015 (5474 : Health Department Office Space at Court Plaza III) ARTICLE 12.Dcfault 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 llOydays (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: Board ofCounty Conlmissioners c/o Real Propett Management 3335 East Talniami Trail Naples,Flo五 da 34H2 ccI Business Manager,Collier COunty Hcalth Department LESSOR: Roger Carva1lo 121 Baltusrol Drive Naples,Flo五 da 34113-8322 ARTICLE 15。Sllrrender ofPrenllses LESSEE covenants and agrees to deliver up and surrender to LESSOR possession of the 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 o. 1,uy hur. 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 16. 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 otheibusiness 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. 為 16.D.2.c Packet Pg. 913 Attachment: Health Departmetn HR Lease Agreement Carvallo 2015 (5474 : Health Department Office Space at Court Plaza III) 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:7 ∠∠上 ノご VALLO, Trustee of the Roger Carvallo Trust dated June 8,1990 易どι∠ム:ン ガ仁 print name LESSEE'S signature appears on the following page. つ 16.D.2.c Packet Pg. 914 Attachment: Health Departmetn HR Lease Agreement Carvallo 2015 (5474 : Health Department Office Space at Court Plaza III) AS TO THE LESSEE: DATED: 7‐∠∠‐/う 〆 BOARD OF COUNTY COMヽ IISSIONERS, COLLIER COUNTY,FLORIDA ATTEST卜 :‐ DwIGHT E:澤I TIM NANCE,Chai.11lan 'Э 一時 /4多4 16.D.2.c Packet Pg. 915 Attachment: Health Departmetn HR Lease Agreement Carvallo 2015 (5474 : Health Department Office Space at Court Plaza III)