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HomeMy WebLinkAbout2014-189 Rent Increase - Claycomb Plaza Mall Claycomb's Plaza Mall Claycomb Charitable Remainder Unitrust Stefanie Claycomb, Trustee 105 Christy Court Phoenix, Oregon 97535 July 17, 2014 Chief Terry Holdemess Ashland Police Department 1155 East Main Street Ashland OR 97520, Re: Lease in Clavcomb's Plaza Mall Dear Chief Holdemess: This letter is to notify you of the April 1, 2014 rent increase for the Ashland Police Substation. The increase has been calculated pursuant to paragraphs 1.5, 1.6, and 1.7 of the lease. Effective April 1, 2014 the monthly rent increased from $685.00 to $699.95 calculated as follows: Basic rent per lease effective April 1, 2013 $ 685.00 CPI, property tax and insurance adjustments 14.95 Total adjusted rent $ 699.95 The increased amount should be paid for the August rent payment. Additionally, the increase of $14.95 a month was effective April 1, 2014, so the amount of $59.80 ($14.95 x 4 months) for the 2014 rent increase should also be paid for the Substation. Ja CJ~ C C Stefame Claycomb SC:ahs LEASE THIS LEASE is made as of the day of 20 by and between the Claycomb Charitable Remainder Unitrust, hereinafter referr to as "Landlord" and The City of Ashland, a municipal corporation, hereinafter referred to as "Tenant(s)". RECITALS 1. Landlord is the owner of the Plaza Mall, located at 40 North Main Street, Ashland, Oregon and the Claycomb/Block Building, located at 25 East Main Street, 30, 40, and 60 North Main Street, and 10 Water Street, Ashland, Oregon (said Mall, Land and said Building hereinafter referred to collectively as the "Property"); 2. Tenant desires to lease from landlord, and landlord desires to lease to tenant, a certain portion of the property for a term of five (5) years; and 3. In consideration of the above recitals and of the terms, covenants and conditions hereof, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be bound hereby, tenant and landlord hereby agree as follows: 1. LETTING OF PREMISES AND PAYMENTS 1.1 Premises Covered. Landlord hereby leases and lets to tenant that certain portion of the property consisting of approximately 270 square feet (said portion of the property hereinafter referred to as the "Leased Premises"), in addition to the non-exclusive right to use, but in no event possess, all common areas adjoining the leased premises. Tenant is also given exclusive use of two parking spaces immediately adjacent to the leased space. 1 1.2 Use of Leased Premises. Tenant agrees to use the leased premises for a police substation. Tenant shall not change the nature of such use without landlord's written consent. 1.2.1 In no event shall tenant be entitled to use the leased premises in any way which increases the probability or the occurrence of fire or which increases landlord's expense of obtaining fire insurance as described in paragraph 3.3 of this lease. 1.2.2 Tenant will not make any unlawful, improper or offensive use of the premises; tenant will not permit any objectionable noise or odor to escape or to be emitted from the premises or do anything or permit anything to be done upon or about the premises in any way tending to create a nuisance; tenant will not sell or permit to be sold any product, substance or service upon or about the premises, excepting such as tenant may be licensed by law to sell and as may be herein expressly permitted. 1.2.3 Tenant shall regularly occupy and use the premises for the conduct of tenant's business, and shall not abandon or vacate the premises for more than ten days without written approval of landlord. 1.2.4 Tenant shall comply at tenant's own expenses with all laws and regulations of any municipal, county, state, federal or other public authority respecting the use of the premises. These include, without limitation, all laws, regulations, and ordinances pertaining to air and water quality, hazardous materials as herein defined, waste disposal, air emissions and other environmental matters. As used herein, hazardous material means any hazardous or toxic substance, material or waste, including but not limited to those substances, materials, and waste listed in the U.S. Department of Transportation of Hazardous Materials Table or by the U.S. Environmental Protection Agency as hazardous substances and amendments thereto, petroleum products, or such other substances, materials, and waste that are or become regulated under any applicable local, state, or federal law. 1.3 Term of Lease. The term of this lease is five (5) full calendar years, commencing on the 1st day of April, 2013 and terminating on the 31" day of March, 2018, unless renewed as provided in paragraph 1.11 below. 2 1.4 Basic Rent. Rent for the term of this lease shall be payable in advance on the first day of each month (hereinafter referred to as the "Payment Date") during the term of this lease, including any renewals, in installments of $685.00, commencing with the V day of April, 2013 payment date and continuing until the full amount due hereunder is paid. The basic rent shall be adjusted as set forth in paragraphs 1.5, 1.6, and 1.7 hereof. 1.5 Tenant's Pro Rata Share of Tax Increases. The basic rent shall be adjusted as of each January payment date during the term hereof, including any renewals, to provide additional rental proportionate to the increase in real property taxes, assessments and other charges levied on the property by any authority (hereinafter referred to as "Landlord Tax Cost"), regardless of whether such increase resulted from increased valuation, increased rate of taxation, imposition of special or general assessments, or any other source. For this purpose, landlord's tax cost for the 2012-2013 annual period, which was billed to landlord in October of 2012, shall be the basis upon which increases in landlord's tax cost are determined. Each year during the term hereof, including any renewals, upon landlord's tax cost being billed to landlord, the increase, if any, tax cost for the subsequent annual period, shall be prorated between all tenants on the property. The increase will be calculated by dividing the square footage of the leased premises first, above mentioned by the then total leased square footage of the property, such figure as of the date hereof being Twelve Thousand Four Hundred Twenty Three (12,423) square feet. The figure thus reached shall then be divided by twelve (12) and the sum thus obtained added to the basic rent payable by tenant to landlord for the twelve (12) payment dates, beginning with the next January payment date. 1.6 Cost of Living Adjustments. The basic rent shall be further adjusted as of each January payment date, beginning with the January 2014 payment date, during the term hereof, including any renewals, to provide additional rental proportionate to the increase in the cost of living, based on the Consumer Price Index, All Items, All Urban Consumers, Portland, Oregon (the "Index") published by the Bureau of Labor Statistics of the United States Department of Labor. For this purpose, the First Half 2012 Index shall be the basis upon which the increase in the cost of living is determined. Each year during the term hereof, including any renewals, the basic rent, exclusive of any other adjustments called for hereunder, shall be increased by an amount corresponding to the increase of the index most recently published in that year over the First Half 2012 Index. 3 1.6.1 In no event shall the cost of living adjustment called for in paragraph 1.6 for any annual period exceed FIVE PERCENT (5%). If an increase in rent called for by paragraph 1.6 should exceed FIVE PERCENT (5%), the increase in rent for that annual period shall be FIVE PERCENT (5%) and the increase in rent foregone pursuant to this subparagraph 1.6.1 shall be carried over to, and added to the increase in rent called for by paragraph 1.6 for the next ensuing annual period. If the increase in rent called for by paragraph 1.6 for that ensuing annual period, plus the increase in rent carried over to that ensuing annual period, pursuant to this subparagraph, should also exceed FIVE PERCENT (5%), the increase in rent for that ensuing annual period shall be FIVE PERCENT (5%) and the increase in rent foregone similarly carried over to the next annual period. 1.7 Tenant's Pro Rata Share of Insurance Cost Increases. The basic rent shall be adjusted as of each January payment date during the term hereof, including any renewals, to provide additional rental proportionate to the increase in the cost to landlord of insuring the property as described in paragraph 3.3 of this lease (said cost hereinafter referred to as "Landlord's Insurance Cost"). For this purpose, landlord's insurance cost for 2012 shall be the basis upon which increases in landlord's insurance cost are determined. Each year during the term hereof, including any renewals, upon landlord's insurance cost being billed to landlord, the increase, if any, of landlord's insurance cost for that annual period over landlord's insurance cost for the 2012 annual period, shall be prorated between all tenants on the taxed property, said proration to be determined with and calculated by using the method described in paragraph I.S. In no event shall the monthly rental be decreased pursuant to this paragraph. 1.8 Utilities. Tenant shall be responsible for payment of all utilities and trash pickup service provided to the leased premises. Those utilities which are supplied to tenant in common with the other tenants on the property shall be paid for on a prorated basis, according to the ratio that is currently being utilized. Should landlord, pursuant to paragraph 1.2 of this lease allow tenant's use of the leased premises to change in a manner which substantially increases the cost of utilities used by tenant, there shall be a reevaluation of tenant's obligation under this paragraph. Landlord shall include a provision identical in effect to this paragraph in all leases which he may execute with other tenants on the property. 1.9 Landlord's Right of Inspection. Landlord, or any agents or representatives of landlord, shall have the right to, at all reasonable times, enter upon and inspect the leased premises. 4 1.10 Payment. Tenant agrees to make all payments called for by this lease before the 7tb of the month. A late fee of $50.00 will be charged for rent payments arriving after the 7`h of the month. Payments shall be posted to the landlord at 105 Christy Court, Phoenix, OR 97535, or to such other person or place as landlord may hereafter direct. Checks are to be made payable to Claycomb Charitable Remainder Unitrust (Claycomb CRUT). 1.11 Option to Renew. If tenant is not and has never been in default of any term of this lease, tenant shall have an option to renew this lease on the same terms and conditions for one additional extension for a period of five years. In order to exercise this renewal option, tenant must notify landlord of his intent to renew the lease no earlier than one hundred fifty (150) days and no later than sixty (60) days prior to expiration of the initial term hereof. Any renewal option is subject to possible rent increases. 1.12 Termination. Upon the termination of this lease, tenant shall deliver up the leased premises to landlord peaceably and quietly and in as good condition and repair as the leased premises were in or may hereafter be placed in, reasonable wear and use excepted, and, if such termination be pursuant to paragraph 3.5 of this lease, damage from fire or other casualty covered by applicable insurance excepted. Provided tenant is not then in default and has not breached this lease, it is agreed that upon termination of this lease, tenant shall be entitled to remove any fixtures or items of personal property placed on the property, and owned by tenant provided, however, that tenant shall have the duty to repair any damage caused by such removal and provided that such removal shall be performed prior to termination of this lease unless landlord shall have otherwise given to tenant notice of landlord having consented to a later removal. II. MAINTENANCE 2.1 Landlord's Repairs. Landlord agrees to (i) make repairs necessary to maintain the roof and gutters, exterior walls, bearing walls, structural members and foundation of the leased premises; (ii) repair sidewalks and curbs and areas used in common by tenant and other tenants on the property; (iii) repair and maintain exterior water, sewage, gas and electrical services up to the point of entry of same onto the leased premises; and (iv) repair and maintain the heating and air conditioning system within the common area which tenant shares with other tenants on the property. 5 2.2 Tenant's Maintenance. Tenant agrees to maintain the leased premises in good and clean condition. Tenant further agrees that tenant will maintain a pleasant and aesthetic appearance of the leased premises. Notwithstanding anything in paragraph 2.1 above to the contrary, tenant shall make all necessary repairs of any condition on the leased premises and/or the property caused by tenant's deliberate or negligent act. Tenant agrees not to alter the premises without first obtaining landlord's permission. Tenant agrees not to make any modifications to existing infrastructure including walls, doors, windows, light fixtures, electrical, or plumbing. Any electrical or plumbing repairs will be performed by licensed and bonded contractors approved by landlord. Tenant specifically agrees to reimburse landlord for the cost of repairing any damage caused by non-adherence to the above limitations. 2.3 Liens and Encumbrances. Tenant shall pay when due all claims for services rendered and materials furnished to tenant in connection with the leased premises and/or the property. Tenant shall keep the property free and clear of all liens and encumbrances of any nature. If tenant fails to pay any such claim or claims or to discharge any such lien or encumbrance, landlord may do so and collect the same from tenant. Any amount so paid by landlord shall bear interest at the rate of TEN PERCENT (10%) per annum from the date expended by landlord and shall be payable upon demand. Such action by landlord shall not constitute a waiver of any right or remedies which landlord may have on account of tenant's default. Tenant may withhold payment to any person rendering such services or providing such materials in connection with a good faith dispute over the obligation to pay, so long as landlord's property interest is not jeopardized. If a lien is filed as a result of tenant's conduct or lack thereof, tenant shall defend the same. If tenant suffers an adverse decision in connection with any such lien, tenant will satisfy the same within thirty (30) days and if tenant shall fail to do so, landlord may pay the same as above provided and collect the same from tenant. Any amount so paid by landlord shall bear interest at the rate of TEN PERCENT (10%) per annum from the date expended by landlord and shall be payable upon demand. III. RISK ALLOCATIONS 3.1 Indemnification. Unless caused by landlord's negligence or breach of landlord's obligations as set forth in paragraph 2.1 above, tenant will indemnify and hold landlord harmless from any and all expenses (including attorney's fees), fines, damages, costs, losses, claims, suits and actions arising out of or in any way connected with the lease and occupancy of the leased premises. 6 3.2 Liability Insurance. Tenant shall continuously maintain during the term of this lease, including any renewals, comprehensive public liability and property damage insurance, with a cross-liability clause of endorsement, insuring landlord and tenant against all legal liability for damages to persons or property caused by the ownership, possession, maintenance, use or occupancy of the leased premises or by reason of the conduct of any business carried on therein, in amounts not less than the following limits: a. Public Liability $300,000.00 per person $1,000,000.00 per occurrence b. Property Damage $300,000.00 Landlord Claycomb Charitable Remainder Unitrust shall be named as an additional insured in such policy of insurance and a memo copy of the policy acceptable to landlord shall be given by tenant to landlord which shall evidence tenant's compliance with the terms of this section and which shall acknowledge that any notice of cancellation shall be furnished by the insurance company to landlord not less than ten (10) days prior to the effective date thereof. The insurance policy/Certificate of Liability should be endorsed and read as follows: Claycomb Charitable Remainder Unitrust is an/the additional insured. The box marked Certificate Holder should read as follows (all spelled out correctly with no initials): Claycomb Charitable Remainder Unitrust Stefanie Claycomb, Trustee 105 Christy Court Phoenix, Oregon 97535 3.3 Fire and Extended Coverage Insurance. Each of the parties agrees to maintain full fire insurance with extended coverage on the properties owned by the respective parties. Specifically, tenant agrees to maintain coverage to the full insurable value of his inventories, supplies, fixtures and personal property which may at any time be located on the leased premises. Landlord agrees to maintain fire insurance with extended coverage on the property. Tenant shall have no interest in said policy or the proceeds therefrom nor any right to make claim thereon except as expressly provided herein. 3.4 Release and Waiver of Subrogation. Each of the parties hereby releases the other party, his employees and his successors of any kind, from any and all liability and waives his right to recover against the other party, his employees and his successors of any kind, for any loss or damage to the property resulting from fire, explosion or other casualty enumerated in a standard fire insurance policy with extended coverage, irrespective of whether the limits thereof are sufficient to fully cover such loss 7 or damages, and each of the parties hereby waives the subrogation rights of his insurance carriers providing coverage against such loss or damage. Each of the parties further agrees to take any and all steps which may be required to inform his carrier of this provision and to have endorsements, if necessary, placed on the respective policies of insurance to carry into effect the provisions of this paragraph. 3.5 Damage or Destruction to Property. In the event a portion of the property is damaged or destroyed from any cause, and said damage or destruction exceeds FIFTY PERCENT (50%) of the then replacement value of the property then either party may within thirty (30) days after such damage or destruction, elect to terminate this lease by giving notice to the other. In the event of such an election, this lease shall terminate as of the date of such damage or destruction. In the event the property is damaged or destroyed from any cause, and said damage or destruction does not exceed FIFTY PERCENT (50%) of the then replacement value of the property, landlord shall restore the property to substantially the same condition as it was in immediately before such damage or destruction and this lease shall remain in full force and effect, but only if such restoration can be made under the existing laws and can be completed within ninety (90) working days after the date of such damage or destruction. If said restoration cannot be made in such time, then within fifteen (15) days after the parties determine that such restoration cannot be made in such time, tenant may terminate this lease immediately by giving notice to landlord. If tenant fails to terminate this lease and if restoration is permitted under the existing laws, landlord, at his election may either terminate this lease or restore the property within a reasonable time and this lease shall continue in full force and effect. If the existing laws do not permit the restoration, either parry may terminate this lease immediately by giving notice to the other party. 3.5.1 Upon any such damage or destruction, landlord shall have the right to take possession of the property or any portion thereof, including the leased premises, as may be reasonably necessary to the landlord. Tenant agrees to vacate same upon landlord's request. For the period of time between the date of such damage or destruction and until such repairs have been substantially completed, there shall be such abatement of tenant's rent as may be fair and equitable to the parties, considering the use which tenant may be able to make of the leased premises during such period. 3.6 Condemnation. If the whole or any part of the property shall be condemned or taken for public or quasi-public use by an properly constituted authority and the taking is such as to render the leased premises unsuitable for the further conduct of tenant's business therein, tenant shall be entitled to cancel this lease and receive from landlord any unearned rent paid to landlord in advance. If, despite 8 the taking, any portion of the leased premises is still suitable for the further conduct of tenant's business therein, then this lease shall continue in effect, except only that there shall be such an abatement of tenant's rent as may be fair and equitable to the parties, considering the use which tenant may be able to make of the leased premises subsequent to such taking. The amount of any condemnation award attributable to improvements installed or erected by tenant at his expense or to loss or interference with tenant's business or moving expense shall belong to tenant. IV. DEFAULT 4.1 Default by Tenant. In the event of default by tenant of any obligation to landlord, landlord shall give notice of such default. Tenant shall then cure the default within fifteen (15) days, then landlord, besides other rights or remedies available to him, shall have the immediate right of re-entry and may remove, at the cost and for the account of tenant, all persons and property from the leased premises. Any property so removed by landlord may be stored in a public warehouse or elsewhere at the cost and for the account of tenant. Should landlord elect to re-enter, as herein provided, or should landlord take possession pursuant to legal proceedings or pursuant to any notice provided for by law, landlord may either terminate this lease or may, from time to time and without terminating this lease, re-let the leased premises or any part thereof for such term or terms (including a term extending beyond the term of this lease) and at such rental or rentals and upon such other terms and conditions as landlord in his sole discretion may deem advisable. Upon such re-letting, tenant shall pay to landlord, in addition to all sums otherwise due hereunder, all costs and expenses incurred by landlord in connection with such re- letting, including, by way of example only, (i) any deficiency between the sums payable by tenant to landlord hereunder and sums actually paid to landlord by the person to whom the leased premises were re-let; and (ii) the cost of any repairs which, pursuant to paragraph 2.2 of this lease, tenant was obligated to make. No such re-entry or taking possession of the leased premises by landlord shall be construed as an election on landlord's part to terminate this lease unless a written notice of such intention be given by landlord to tenant or unless the termination hereof be decreed by a court of competent jurisdiction. Notwithstanding any re-letting without termination, landlord may at any time thereafter elect to terminate this lease for such previous default. Should landlord at any time elect to terminate this lease for any breach, in addition to any other remedies he may have, landlord may recover from tenant all damages incurred by such breach, including the cost of recovering the leased premises. 9 4.2 Late Payments. As stated in paragraph 1.10, rent is due by the 7`h of each month. Rent payments received after the 71h of the month will be subject to a FIFTY DOLLAR ($50.00) late fee which will be due immediately and payable by tenant to landlord. Tenant's failure to pay any sums payable by tenant to landlord within five (5) days of when due, shall constitute a breach of this lease. 4.3 Cumulative Remedies. No remedy set forth in Article IV shall be deemed to be landlord's exclusive remedy. Landlord shall at all times have such other and further rights and remedies as may be available to landlord either at law or in equity, including, but not limited to, the recovery of future rents immediately, without waiting until the date fixed for expiration of the term of this lease. V. MISCELLANEOUS PROVISIONS 5.1 Assignment of Sublease. Tenant shall neither assign nor sublease any portion of the leased premises without first obtaining the written consent of landlord, which consent shall not be unreasonably withheld. Any attempted assignment or sublease in violation hereof shall be void and constitute a breach of this lease. 5.2 Joint and Several Obligations. Each and every obligation of tenant set forth in this lease shall be the joint and several obligation of each individual and/or entity, as the case may be, executing this lease as tenant. 5.3 Entire Agreement. This lease contains the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements or understandings, oral or written, between or among the parties hereto relating to the subject matter of this lease which are not fully expressed herein. 5.4 Governing Law. This lease shall be construed in accordance with, and governed by, the laws of the State of Oregon. 5.5 Attorney's Fees. In the event that either party hereto shall commence any arbitration (if arbitration is consented to by the parties), legal action or proceeding, including not by way of limitation an action for declaratory relief, against the other by reason of the alleged failure of the other to perform or keep any term, covenant or condition of this lease by him to be performed or kept, the party prevailing in said action or proceeding shall be entitled to recover, in addition to his court costs, a 10 reasonable attorneys fee to be fixed by the court, and such recovery shall include court costs and attorney's fee at trial, for arbitration, and on appeal, if any. 5.6 Construction. Whenever used herein, the singular number shall include the plural, and the plural number shall include the singular, and all words used in any gender shall extend to and include both genders. 5.7 Agreement to Perform Necessary Ads. Each party to this lease agrees to perform any further acts and to execute and deliver any documents that may be reasonably convenient or necessary to carry out the provisions of this lease. 5.8 Amendments. The provisions of this lease may be altered, amended or repealed, in whole or in part, only on the written consent of all parties to this lease. 5.9 Successors and Assigns. All of the provisions hereof shall be binding on, and inure to the benefit of, the parties hereto and their respective heirs, legal representatives, successors, and assigns, subject to the limitation on assignment or transfer otherwise herein contained. 5.10 Invalidity. If any term, covenant, condition or provision of this lease is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereto shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby. 5.11 Subsumed Obligation. In the event that any portion of a provision or covenant contained in this lease is held unreasonable or unenforceable in an unappealed final decision to which both parties are bound, by a court or agency having valid jurisdiction, the applicable party expressly agrees to be bound by each lesser covenant imposing the maximum duty permitted by law that is subsumed within the terms of such promise or covenant, as if it were separately stated in and made a part of this lease. 5.12 Captions. The captions of articles and paragraphs of this lease are for reference and convenience only and are not to be construed in any way as part of this lease to explain, modify, amplify or aid in the interpretation of the lease. 5.13 Time of Essence. Time is of the essence in the performance of each provision of this lease. 5.14 Interest on Money Due. Any sum accruing to a party under the provisions of this lease which are not paid when due shall bear interest at the rate of TEN PERCENT (10%) per annum from the date written notice specifying such non-payment is given to the defaulting party until paid. 11 5.15 Agency. Nothing contained in this lease shall be deemed or construed by the parties hereto or by a third person to create the relationship of principal and agent or of partnership or of joint venture or of any other association. 5.16 Extensions. All references to the term of this lease shall include any extensions or renewals of the initial term. 5.17 Waiver. Any waiver of landlord in enforcing any of the terms and conditions hereof shall not constitute a waiver of landlord's right to insist upon strict compliance with such terms and conditions in the future. 5.18 Notices. All notices, requests, demands, and other communications under this lease shall be writing and shall be deemed to have been duly given on the date of service if served personally on the party to whom notice is to be given, or on the third day after mailing if mailed to the party to whom notice is to be given, by first class mail, registered or certified, return receipt requested, postage prepaid, and properly addressed as follows: To Landlord: Claycomb Charitable Remainder Unitrust Stefanie Claycomb, Trustee 105 Christy Court Phoenix, Oregon 97535 To Tenant: City of Ashland Police Department 1155 East Main Street Ashland, Oregon 97520 The address for such notices may be changed by notice given in accordance herewith. THE PARTIES HERETO have executed this lease on the dates set forth below. TENANT(S) L/ - 3- 8y: Dated LANDLORD a WSAr C ey Da ed 12 L CITY RECO . L- Page 1 / 1 CITY OF DATE --'PO NUMBER . - r PWA ASHLAND 20 E MAIN ST. `7/1!2014 11744 ASHLAND, OR 97520 (541)488-5300 VENDOR: 015216 SHIPTO: City of Ashland - Police Dept. CCRUT, CLAYCOMB CHARITABLE, REMAINDER l 1155 E MAIN STREET 105 CHRISTY COURT ASHLAND, OR 97520 PHOENIX, OR 97535 FOB Point: Req. No.: Terms: Net Dept.: Req. Del. Date: Contact: Gail Rosenberg Special Inst: Confirming? No -Quantity Unit% `[Descn tion'r""^ .'tS - e,Unit Price'i. .;'Eztr:Priee THIS ISA REVISED PURCHASE ORDER 12.00 MO Rental for Contact Station (ED $685.00/Mo 685.00 8,220.00 FY 2014 12.00 MO FY 2015 699.95 8,399.40 Processed change order 07/21/2014 Rent increased $14.95/MoApril 1, 2014 from $685.00 to $699.95 per month i SUBTOTAL 16 619.40 BILL TO: Account Payable TAX 0.00 20 EAST MAIN ST FREIGHT 0.00 541-552-2010 TOTAL 16,619.40 ASHLAND, OR 97520 Account Number '--Project Number.-,- . ' . "-"Amount Account. Number. =ProjecfNumber"^ Amount E 110.06.09.00.60416 -16 619.40 OX AUt ized Signa Ure VENDOR COPY FORM #10 may,, yes CITY Of CONTRACT AMENDMENT APPROVAL REQUEST FORM h,~5 H LAN D Request for a Change Order Name of Supplier/ Contractor] Consultant:Claycomb/CCRUT Total amount of this contract amendment: Purchase Order Number: 11744 Title 1 Description: Rental for Contact Station $ ® Per attached contract amendment Contract Amendment Original contract amount .$16440.00 100 % of original contract Total amount of previous contract amendments 0 0 % of original contract Amount of this contract amendment $225.00 1.3_% of original contract TOTAL AMOUNT OF CONTRACT $16665.00 101.3 % of original contract In accordance with OAR 137-047-0800: 1) The amendment is within the scone of procurement as described in the solicitation documents, Sole Source notice or approval of Special Procurement 2) The amendment is necessary to comply with a change in law that affects performance of the contract. 3) The amendment results from renegotiation of the terms and conditions, including the contract price, ofa contract and the amendment is advantageous to the City of Ashland, subject to all of the following conditions: a) goods and services to be provided under the amended contract are the same as the goods and services to be provided under the unamended contract: b) The City determines that, with all things considered, the amended contract is at least as favorable to the City as the unamended contract; c) The amended contract does not have a total term greater than allowed in the solicitation document, contract or approval of a Special Procurement An amendment is not within the scope of the procurement if the City determines that if it had described the changes to be made by the amendment in the procurement documents, it would likely have increased competition or affected award of contract Contract amendment is within the scope of procurement YES x NO` (If "NO", requires Council approval l Attach copy of CC.) Sourcing Method: SMALL PROCUREMENT - Less than $5000 INVITATION TO BID or COOPERATIVE PROCUREMENT. ORF or [D 'YES", the total amount of contract and cumulative REQUEST FOR PROPOSAL EXEMPTION PURSUANT TO AMC 2.50 amendments s $6,000. ❑ 'YES the total amount of cumulative amendments ❑'YES', the total amount of original contract and ❑If'NO', amount exceeding authority requires s25% of original contract amount or $250,000 cumulative amendments s$1o0K for Goods &Services, s Council approval. Attach copy of Council whichever is less. $75K for Personal Services, < $50K for Attorney Fees. Communication. ❑ If 'NO', amount exceeding authority requires ❑ If 'NO", amount exceeding authority requires Council ❑ Exempt-Reason: Council approval. Attach cony of Council approval. Attach cony of Council Communication. PERSONAL SERVICES Communication. ❑ Exempt-Reason: ❑ "YES", Direct appointments $35,000 ❑ Exempt-Reason: ❑ If "NO' requires approval. INTERMEDIATE PROCUREMENT SOLESOURCE EMERGENCY PROCUREMENT Goods & Services - $5.000 to $100.000 ® "YES", the total amount of cumulative amendments ❑ Written Findings: Document the nature of the Personal Services - $5.000 to $75.000 s 25% of original contract amount or $250,000 emergency, including necessity and circumstances ❑ 'YES', the total amount of cumulative whichever is less. requiring the contract amendment amendments s 25% of original contract amount ❑ If ❑ If 'NV, amount exceeding authority requires ❑ Obtain direction and written approval from City 'NO-, amount exceeding authority requires Council Council approval. Attach copy of Council Administrator approval. Attach copy of Council Communication. Communication. ❑ If applicable, attach copy of Council Communication ❑ Exem t-Reason: ❑ Exam t-Reason: ❑ Exempt -Reason: SPECIALPROCUREMENT INTERGOVERNMENTAL AGREEMENT ❑'YES', the total amount of original contract and cumulative amendments are ❑'YES', the original contract was approved by City Council. within the amount and terms initially approved by Council as a Special Provide date approved by City Council: (Date) Procurement If 'NO", Council approval is required. Attach copy of Council Communication. ❑ If'NO", amount exceeding authority requires Council approval. ❑ Contract amendment approved and signed by City Administrator. Attach copKof Council Communication. Project Number Account Number Account Number 110.06.09.00.604160 "Expenditure must be charge th ppropria account umbers for the financials to reflect the actual expenditures accurately. Attach extra pages if needed. Employee Signature: Department Head Signature: zj:~_ / (Total am tofcontract2:$5,000) ministrator: (Equal to or greater th $25 000 or 10%) Funds appropriated fJ current fiscal year., 6P/ NO Finance Director (Equal to org rthan$5,000) T Dat4 Comments: Form #10 -Contract Amendment Approval Request Form, Request fora Change Order, Page 1 of 1, 7/21/2014 CITY OF -ASHLAND Council 'C®mmun!cation March 19, 2013, Business Meeting Authorization of A1eW lease for the fDovMown Police Contact Station FROM: Terry Holdemess, Police Chief, holdenet@ashland.or.us SUMMARY The Ashland Police Department requests Council's authorization of a new lease for the Downtown Police Contact Station. The current lease agreement between the City of Ashland and the Claycomb Charitable Remainder Uaitrust will expire on April 1, 2013. Although the lease agreement had a provision allowing the landlord to increase the rent by 5% each year, the rent did tot increase and remained consistent throughout its duration. The existing lease agreement appears to be significantly below fair market value, while the proposed agreement seems consistent with current fair market values. BACKGROUND AND P®LIC~ IMPLICATIONS: The Downtown Police Contact Station is leased to the City of Ashland at a monthly cost of $350. Since the current five-year lease agreement will expire on April 1, 2013, a new five-year lease has been presented to the City for consideration. Although the cost will increase from $350 per month to $635 per month, the increase appears to be consistent with current fair market values. The Police Contact Station is 270 square feet and has two parking spaces included in the cost. It is nestled on the corner of the Clayc6mb Mall directly across from the Plaza.. This is au ddeal location as it is in the heart of downtown Ashland surrounded by the city's high exposure business district. Furthermore, the City of Ashland Police Department has established a strong footprint in the downtown corridor to which our citizens have become accustomed. Two additional properties were compared against the Downtown Police Contact Station in an effort to estimate a true fair market value. 1 88 North Main Street is 1125 sq/ft and is currently available for leas e at the following rate: $1.5 sq/ft plus NNN charges estimated at $250 - NNN means the tenant pays towards all taxes, insurance, and common area maintenance expenses, in addition to rent. This does not include any parking spaces. $1.5 x 270 sq/ft (Contact Station sq/ft) = $405 / phis NNN fee of $250 = $655.00 2. 184 Clear Creek Drive is currently available for lease at the following rate: Suite#k - which includes 330 square feet is available for $699.00 Suite #2 - which includes 250 square feet is available for $600.00' Page 1 oft