HomeMy WebLinkAboutCOM 0596.000 2010-2012 N,..7i.
William P. Kenoi , '.
Nancy DE. Crrawford
Mayor l•�;r.•
Deanna S. Sako
•ir � Deputy Director
County of Hawaii
Finance Department _
25 Aupuni Street,Suite 2103 • Hilo,Hawaii 96720 "a '_ C7
(808)961-8234 • Fax(808)961-8569 =�
•
February 17, 2012
Dominic Yagong Council Chair and ,
Members of the Hawaii County Council co
Hawaii County Council
25 Aupuni Street
Hilo, Hawaii 96720
Re: Resolution for multi-year lease
Enclosed is a resolution authorizing the County of Hawaii to enter into a multi-year lease
for ten years, with one ten-year option to extend the lease, for office space located at the
Department of Water Supply, 345 Kekuanao'a Street, Hilo, Hawaii. By entering into this
lease, and relocating the Department of Environmental Management and the Department
of Information Technology offices to this location, the County expects to save $170,000
over the course of the initial ten years compared to present costs.
If there are any questions, please do not hesitate to call Ken Van Bergen from the
Finance Department's Property Management Division at 323-4323.
1111 Cj?-64
Nancy Crawford
Director of Finance
Enc.
Cc: Property Management
ies• 1. 15- 12)
Comm. No. S-1(47
Ref. To:
a.,�f. irate EEB 1 7 2dt2
Hawaii County is an Equal Opportunity Provider and Employer
Form #: B-52
7/18/91
DEPARTMENT OF FINANCE
REQUEST FOR COUNCIL ACTION
DEPARTMENT: Finance DATE: 02/15/12
STAFF CONTACT: Ken Van Bergen PHONE: 808-323-4323
A. REQUEST:
Please prepare a resolution authorizing the payment of funds - in a later fiscal year and for more than one
fiscal year-for a 10 year intitial lease with one 10 year option to Lease approximately 8880 sq ft at
Department of Water Supply (DWS) to provide office space for Department of Environmental Management
(DEM) and Department of Information Technology (IT). The monthly per sq ft rent, tenent improvement (TI),
and common area maintenance (CAM) schedule is as follows:
Years 1-5 Years 6-10
Rent $0.00 $.085
TI $1.02 $0.00
CAM $0.99 $0.99 (to be adjusted to share of actual cost each year)
Total cost per year is $17,848.80 plus GET for years 1-5 and $16,339.20 plus GET for years 6-10, using
current estimated CAM rate.
B. BACKGROUND AND JUSTIFICATION (USE ADDITIONAL SHEETS AS NEEDED):
In an effort to save cost and partner with the Department of Water Supply, we are seeking to move the
DEM and the IT personnel presently located at the Puainaco Town Center to an 8,880 sq ft space at Department
of Water Supply. We anticipate the savings on the intial 10-year lease to be $170,000 compared with the current
rent being paid, assuming current CAM fees.
SIGNED: ih s / DATE:
Department H -d
p
LAND COURT REGULAR SYSTEM
(AREA ABOVE RESERVED FOR RECORDING INFORMATION)
After Recordation,Return by®Mail or❑Pick-up Phone#:
FILL IN NAME AND ADDRESS BELOW:
Office of the Corporation Counsel(CTM)
333 Kilauea Avenue 2°d Floor
Hilo,Hawaii 96720
DOCUMENT CONTAINS PAGES
TITLE OF DOCUMENT: COUNTY OF HAWAII OFFICE LEASE
AGREEMENT
PARTIES TO DOCUMENT
LESSOR/LANDLORD: WATER BOARD OF THE COUNTY OF HAWAII
345 Kekuanaoa Street, Suite 20
Hilo,Hawaii 96720
LESSEE/TENANT: COUNTY OF IIAWAI`I
25 Aupuni Street
Hilo,Hawaii 96720
AFFECTS TAX MAP KEY: (3)2-2-030-015
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COUNTY OF HAWAI`I OFFICE LEASE AGREEMENT
This LEASE AGREEMENT, made this day of , 2012, by
and between the WATER BOARD OF THE COUNTY OF HAWAI`I, whose mailing address is 345
Kekuanaoa Street,Suite 20,Hilo, Hawaii 96720 (hereinafter referred to as"Landlord"or"Lessor"),
and the COUNTY OF HAWAII, a municipal corporation of the State of Hawaii, whose principal
place of business and mailing address is 25 Aupuni Street, Hilo,Hawaii 96720(hereinafter referred
to as"Tenant"or"Lessee").
1. Grant. In consideration of the rents,covenants,and agreements hereinafter reserved and
contained and on the part of the Tenant to be observed and performed,the Landlord demises
and leases to the Tenant,and Tenant rents from the Landlord,the following for use as an
office space for the Tenant:
Those certain premises consisting of approximately 8,880 square feet of lower level
office space being 3,273 square feet of the Hamakua wing and 5,607 square feet of the
Ka`u wing, situated at Waiakea Office Plaza, 345 Kekuanaoa Street, Hilo, Hawaii
96720 in the District of South Hilo,County and State of Hawaii,and identified as Tax
Map Key: (3)2-2-030-015(hereinafter"the premises")and described in Exhibit A.
Together with the full right of access to said premises over, across, and
through any alleys,common entrances, lobbies, stairways,halls, and corridors
in or around said building.
2. Use. The premises shall be utilized as office space for the County of Hawaii.
3. Term. The term of this Lease Agreement and the Tenant's obligation to pay rent and other
charges hereunder,shall be a ten year term starting August 1,2012 or when the Improvements
are completed but in no event later than July 1,2013. At least ninety(90)days prior to the end
of the term Tenant shall notify Landlord of their intent to exercise the option for a second ten
(10)year term at a rental rate to be negotiated.
4. Delivery of Possession. Tenant shall be given occupancy of the premises upon execution of
this Lease Agreement. If the Landlord,for any reason,cannot deliver possession of the
demised premises to the Tenant at the commencement of the Lease Agreement term,as
specified above,this Lease Agreement shall not be void or voidable,unless the Tenant elects
to terminate the lease by giving notice in writing.
5. Quiet Enjoyment. Landlord agrees that upon payment by the Tenant of the rent and other
charges herein provided and upon the faithful observance and performance of all the
covenants,terms,and conditions in this Lease Agreement on the part of the Tenant to be
observed and performed,the Tenant shall peaceably and quietly hold and enjoy the leased
premises for the term of this Lease Agreement without hindrance or interruption by the
Landlord or any other person or persons lawfully or equitably claiming by,through,or under
the Landlord.
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6. Rent. Tenant shall pay to the Landlord upon completion of the Improvements,in such coin or
currency of the United States of America as at the time of payment shall be legal tender for the
payment of public and private debts,without any setoff or deduction whatsoever,a monthly
rent per square foot based on 8,880 square feet as follows:
Years 1-3 Years 4-5 Years 6-10
$0.00 $0.00 $0.85
Rent and other charges,including the CAM and cost of the Improvements shall be due and
payable on the fifth day of the calendar month,such first installment to be prorated for the
period between the date of commencement of this lease and the fifth day of the following
month. Tenant will be allowed to prepay rent without penalty. Should the cost of the
Improvements be fully paid prior to the expiration of the initial five(5)year terms of the lease,
the monthly rent per square foot stated above for years 6-10 shall commence immediately.
7. Deposit. No deposit shall be required.
8. Common Area Maintenance and Building Services. A common area maintenance("CAM")
charge that is set for the first twelve months of the lease term at NINTY-NINE CENTS per
square foot,per month($0.99/sq.ft./month),will be paid in addition to the rent. Thereafter,
such CAM charges will be adjusted annually on July 1 st based on the actual cost of the
expenses included in the CAM charge for the prior twelve month period.
Landlord shall operate and maintain the property,common area and facilities therein in a
manner deemed as reasonable,appropriate and in the best interest of the tenants of the
property. Landlord shall be responsible for all building services included in the CAM charges.
Such services shall include,but not be limited to: electricity;water;supplies for restroom;
janitorial services for lower level restrooms;rubbish hauling;grounds keeping;security
patrols;air conditioning;and sewer but excludes interior maintenance,repairs,and services for
leased premises including but not limited to lighting fixtures,plumbing fixtures,janitorial
services,glass and windows,flooring,ceilings,walls,furniture,tenant possessions and
response to security patrol trouble calls.. All such expenses for the maintenance and operation
shall be included in the rental charge. Tenant acknowledges that the standard operating hours
for the air conditioning units is from 6:30 a.m.to 5:00 p.m.Monday through Friday.Should
Tenant request to have air-conditioning beyond these hours,it shall make a request to
Landlord at least 24 hours in advance,and will pay all electrical and other costs associated
with the extended use of the air-conditioning. Additionally,should extra-ordinary rubbish
hauling be required,over and beyond normal office use,Tenant agrees to be solely responsible
for such charges.
The term"common area and facilities"as used in this lease agreement shall be deemed to
include those portions of the property as are designated and/or designed for the non-exclusive
use of the Tenant in common with other authorized users,and shall include,but not be limited
to: parking areas;roadways;service areas;driveways;areas of ingress and egress; landscaped
and planted areas;sidewalks and other pedestrian ways;corridors;courts;public washrooms;
drinking fountains;community rooms;toilets;stairs;ramps;buildings or structures used in
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connection with the maintenance of said common area;and all other similar facilities,from
time to time provided for the joint use and convenience of such authorized users.
9. Assignment and Sublease. Tenant shall not,without the prior written consent of Landlord,
which consent will not be unreasonably withheld,assign or mortgage this lease or any interest
herein,or sublet or grant any concession or license to use the premises or any part thereof,or
allow any other person to use the whole or any part of the premises.
10. Use and Maintenance of Premises. Tenant shall use the leased premises solely for the purpose
of office space and shall not use the same for any other purpose without the prior written
consent of Landlord. Tenant shall not make or suffer any waste,strip or unlawful,improper,
or offensive use of said premises. Tenant shall not do or suffer any act or carry on any
practice which may damage the premises or become a nuisance. Landlord shall be
responsible for general maintenance,painting and repairs of the structural and exterior of the
building,and common areas,air conditioning maintenance,water piping,and electrical
wiring,sewer connection,and grounds maintenance. Tenant shall keep the premises in good
order,condition and repair,and in a strictly clean and sanitary condition.Tenant shall be
responsible for payment of any services/repairs related to air conditioning system within
tenant's premises that is not related to mechanical or system failure and/or included in routine
maintenance services(i.e.schedule changes,temperature changes,etc.)
11. Parking. Lower level parking stalls are reserved for County,however DWS building
maintenance shall be allowed access as needed. Unmarked upper level stalls and parking
stalls in the common parking area between Landlord's property and adjacent Waiakea Villas
property are available on the first come first served basis.
12. Inspection. Landlord and Landlord's agents will be allowed to enter said premises to examine
the state of repair and condition during regular business hours after providing Tenant with
reasonable written notice. If Landlord deems that repairs by the Tenant are necessary,
Landlord may request in writing that the Tenant make the same forthwith.
13. Signs. Tenant shall not,without the prior written consent of Landlord,erect,install,or affix
any sign about the exterior or on the windows of the premises. Tenant shall allow Landlord to
affix or keep on the premises a"For Lease"or"For Sale"notice.
14. Improvements. Landlord shall fund the cost of Improvements to the Premises up to$500,000
upon execution of this Lease Agreement. Tenant shall be responsible for planning,design,
procurement,contract execution and administration,project management,construction,
inspections,and project completion,utility costs,waste disposal costs,a/c adjustment costs,
any repair costs for damages related to construction for all Improvements within the Tenant's
Premises. Tenant shall receive Landlord's approval of final building plans and/or contract
change orders before proceeding with construction. Tenant shall also provide Landlord copies
of the final contract(including change orders),plans,and project closing documents.Landlord
and Tenant shall work cooperatively to ensure public safety and minimal disturbance to
Landlord and its customers during construction and timely completion of build-
out/Improvements.Tenant and its contractors shall make every effort to minimize dust and
noise during the construction of the Improvements.
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Tenant shall repay Landlord 100%of improvement costs plus 3.47%interest within the initial
five(5)year of the lease term,at a rate of no less than$1.02 per square foot for 8,880 sq ft per
month,until fully paid. Should the actual cost of the Improvements be less than$500,000,the
repayment term only will be decreased accordingly,and the Tenant shall begin payment of the
rental amount as stated in Paragraph 6 above. The monthly charge for the Improvements shall
be due and payable on the fifth day of the calendar month,such first installment to be prorated
for the period between the date of commencement of this lease and the fifth day of the
following month. Tenant will be allowed to prepay for the cost of Improvements without
penalty.
15. Landlord's and Agent's Insurance. The Tenant is self-insured and no additional insurance
policy is required.
16. Surrender, The Tenant shall,at the end of the term of this Lease Agreement or earlier
termination thereof,peaceably and quietly vacate and deliver up to Landlord the possession of
the premises,together with all additions and alterations made by Tenant,unless Landlord
requires removal of the same. Tenant may remove all moveable trade fixtures(if installed by
Tenant)on the condition that Tenant shall repair any damage to the premises resulting from
the removal of said fixtures. Tenant shall not be required to remove any exterior
improvements other than its signs.
Any property of the Tenant remaining on the premises after the termination of the Lease
Agreement may be disposed of by the Landlord upon 30 days written notice and failure of
Tenant to retrieve the property. The parties shall act in good faith.
17. Destruction of Premises. If the premises are partially or totally damaged or destroyed by fire
or other casualty so as to become partially or totally untenantable,such damage or destruction,
insofar as the same pertains to the building itself,exclusive of any damage to Tenant's
fixtures,furniture or other property,shall be repaired or rebuilt at the discretion of the
Landlord. Landlord shall advise Tenant within thirty(30)days after the casualty whether they
intend to rebuild or repair. If the Landlord elects not to repair or rebuild,this lease shall
terminate without further notice and the obligations of either party shall cease. No rent shall
be payable from the date such casualty occurs until the repair or rebuilding shall be completed,
unless the premises shall be tenantable and there is no substantial interference with Tenant's
business.
18. Subordination of Lease to Mortgage. Tenant agrees that this Lease Agreement and all rights
of Tenant hereunder shall be subject and subordinate to all present and future mortgages made
or to be made by Landlord as security for any indebtedness of Landlord;provided,however,
that the mortgagee shall agree to recognize this lease in the event of foreclosure and will cause
the sale of said premises to be made subject to Tenant's lease,provided that the Tenant is not
in default under any of the terms,conditions,or covenants of this lease at the time of such
foreclosure.
19. American With Disabilities Act. Landlord and Tenant understand Tenant,as a government
entity,is required to comply with the Americans with Disabilities Act,hereinafter"ADA."
Landlord herein expressly warrants that all access from the parking area and common areas to
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the premises is in compliance with the aforesaid ADA,and that if there are comfort stations in
the common areas open to the public,those comfort stations are in compliance with the
aforesaid ADA. Should it be later determined that the premises are not ADA compliant,
Landlord shall be responsible for all construction of accessibility improvements which may be
necessary to be in compliance with this law.
20. Additional Construction or Remodeling. Landlord reserves the right to remodel,repair,paint,
or renovate the said building or do additional construction at any time to the extent that it does
not compromise the integrity or the security of the demised premises. Said work shall be
undertaken by Landlord with minimum interference or inconvenience to Tenant's use of the
premises,and any interference or inconvenience resulting to Tenant or its use of the premises
shall not constitute a breach or violation of Landlord's covenant of quiet enjoyment or any
other covenant. If Landlord's additional work requires entry into Tenant's premises,Landlord
and Tenant shall enter into a written agreement on the terms and conditions of such entry and
work.
21. Non-Waiver of Breach. The acceptance of rent by Landlord shall not be deemed a waiver by
Landlord of any breach by Tenant or of the right of Landlord to terminate this Lease
Agreement for any such breach,and that the failure of Landlord to insist upon strict
performance of any covenant or condition of this lease,or to exercise any option herein
conferred,shall not be construed as a waiver or relinquishment for the future of any such
covenant or condition but the same shall remain in full force and effect.
22. Notice.
a. Notices to the Tenant. All notices to be given to the Tenant should be given in writing
and by depositing the same in the United States mail,registered or certified,postage
prepaid,and addressed to the County of Hawaii at 25 Aupuni Street,Department of
Finance,Property Management,Suite 1101,Hilo,Hawaii 96720.
b. Notice to Landlord. Notice to Landlord shall be given in writing personally to an
agent or employee of Landlord or by depositing the same in the United States mail,
registered or certified, postage prepaid, and addressed to Landlord at 345 Kekuanaoa
Street,Suite 20,Hilo,Hawaii 96720 or at such other addresses as Landlord may give
to the Tenant in writing from time to time.
c. Time of Service. Any written notice sent by registered or certified mail shall be
deemed to have been served as of the date it is mailed in accordance with the
foregoing provisions.
23. Force Majeure. In the event that either Landlord or the Tenant shall be delayed,hindered,or
prevented from the performance of any act required under this lease agreement by reason of
strikes,lockouts,labor troubles,inability to procure materials,failure of power,restrictive
governmental laws or regulations,riots,insurrection,war,or other reason of like nature,not
the fault of the party delayed in performing the work or doing the acts required under the
terms of this lease agreement,then performance of such act shall be excused for the period of
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1
the delay and the period for the performance of any such act shall be extended for a period
equivalent to the period of such delay.
24. Hazardous Materials. The Landlord affirms,upon due diligence,that the premises are free of
hazardous materials. Landlord warrants that they have not received written notice from any
governmental authority having jurisdiction over the premises that the premises is in violation
of the Comprehensive Environmental Response,Compensation and Liability Act of 1989,as
amended("CERCLA"),the Resources Conservation and Recovery Act of 1976,as amended
("RCRA"),the Toxic Substance Control Act,as amended,the Hazardous Materials
Transportation Act,as amended,or any statute governing underground storage tanks or
asbestos. Landlord represents and warrants that to Landlord's actual knowledge(without
undertaking any investigation or inquiry)the premises do not contain any hazardous or toxic
materials prohibited by law. Landlord shall indemnify and hold harmless the Tenant from and
against any and all claims,demands or losses in connection with the release of hazardous or
toxic materials caused by Landlord. Tenant shall indemnify and hold harmless the Landlord
from and against all claims,demands or losses in connection with the release of hazardous or
toxic materials caused by Tenant,its agents or employees.
25. Construction of Language. Nothing herein contained is intended or shall be construed as
creating a relationship of principal and agent,or of a partnership or joint venture,between
Landlord and Tenant. Wherever used herein,the singular number shall include the plural and
the neuter gender shall include the masculine and feminine genders,unless the context clearly
requires otherwise. The obligations of the parties executing this lease agreement shall be joint
and several. The term"premises"shall mean the premises demised under the lease;the term
"Landlord"shall include the Landlord,its successors,and assigns;and the term"Tenant"shall
include Tenant and Tenant's successors and permitted assigns.
26. Facsimiles. The parties hereto agree that telephone facsimile(fax)copies of any documents
required to be executed by the provisions herein will be accepted as if signed in person,as
originals. Upon request,the party submitting the facsimile shall provide the original
document within a reasonable time. However,failure to provide such an original shall have
no effect upon the validity of the execution by facsimile.
27. Dispute Resolution/Forum Selection. Any dispute action or proceeding involving this Lease
Agreement,commenced by any party,if not resolved by mutual consent,shall be commenced
in the District Courts of the Third Circuit,County and State of Hawaii.
28. Governing Law. It is agreed that this Lease Agreement shall be governed by,construed,and
enforced in accordance with the laws of the State of Hawai`i.
29. Condition. This Lease Agreement is subject to approval of the Hawaii County Council and
the Water Board of the County of Hawai`i.
30. Entire Agreement. This Lease Agreement contains the entire agreement between the parties.
Any agreement hereafter made shall be ineffective to change,modify,discharge or effect an
abandonment of the lease,in whole or in part,unless such agreement is in writing and signed
by the party against whom enforcement of the change,modification,discharge or
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abandonment is sought.It is expressly understood and agreed that each and all of the
provisions of this lease agreement are conditions precedent to be faithfully and fully
performed and observed by the Tenant and to entitle the Tenant to continue in possession of
the premises hereunder;that said conditions are also covenants on the part of the Tenant;and
that time of performance of each is of the essence of this interim lease.
IN WITNESS WHEREOF,the parties hereto have entered into this Lease Agreement as of
the day and year first above written. - _ _
RECO I i t APPROVAL: WATER BOARD OF THE COUNTY OF`:_-._.. '
0
HAWAII ,' '-
By rr '
QUIRINO •' ONIO,JR. N. -: �' . K. Taniguchi
Manager- f Engineer Title- ice-Chairperson .
APPRO ` AS TO FORM LESSOR/LANDLORD
AND LEGALITY:
KATHERINE A.GARSON
Assistant Corporation Counsel
COUNTY OF HAWAII
RECOMMEND APPROVAL:
By
Dora Beck Its
Acting Director of Environmental Management
LESSEE/TENANT
RECOMMEND APPROVAL:
Burt Tsuchiya
Director of Information Technology
RECOMMEND APPROVAL:
Nancy Crawford
Director of Finance
APPROVED AS TO FORM
AND LEGALITY: ( ..,-----'--------____=__)
CI T. ASUDA
Depu orporation Counsel
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STATE OF HAWAI`I )
SS.
COUNTY OF HAWAII )
On this day of ,2012 before me personally appeared
WILLIAM P.KENOI,to me personally known,who,being by me duly sworn,did say that he is the
Mayor of the County of Hawai`i,a municipal corporation of the State of Hawaii,that the seal affixed
to the foregoing instrument is the corporate seal of said County of Hawaii,the foregoing instrument
was signed and sealed on behalf of the County of Hawai`i by authority given to said Mayor of the
County of Hawai`i by Sections 5-1.3 and 13-13 of the County Charter,County of Hawai`i(2010),as
amended,and said WILLIAM P.KENOI acknowledged said instrument to be the free act and deed of
said County of Hawai`i.
Signature
Print or Type Name
Notary Public, State of Hawaii
My Commission Expires:
NOTARY CERTIFICATION
Doc.
Date: No.of Pages:
Notary Third Circuit
Name:
Doc.
Description:
Notary Signature Date
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STATE OF HAWAII )
) SS:
COUNTY OF HAWAII )
This id-page COUNTY OF HAWAII OFFICE LEASE AGREEMENT,dated
undated at time of notari za was-sworn to before me this 26tliay of January ,2012,in
the Third Circuit of the State of Hawaii by Arthur K. Taniguch,ito me personally known,who,
being by me duly sworn,did say that the person is the Vice-Chai rpersonof the Water Board of the
County of Hawaii and that the seal affixed to the foregoing instrument is the seal of the Department
of Water Supply of the County of Hawaii,and that the instrument was signed and sealed in behalf of
the Water Board by authority of the Water Board and said Arthur K. Taniguchi
acknowledged the instrument to be the free act and deed of the Water Board.
.JO .9 • • - at . -.a+ . ,BAs •
`k"�.: Notary Public-Doreen 7.Jollimore
Q ra°""'``JR -pc,=_ State of Hawaii
* 06-405
N'•:.+'t ms /, My commission expires:July 9,2014
•o F•N;q��� Commission#06-405
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NOTARY CERTIFICATION
Doc.
Date: undated at time of notarization No.of Pages: 10
Notary Third Circuit
Name: Doreen M. Jollimore
Doc. 0"Vril i per
Description: County of Hawaii Office 4'1�k.,.1,...... .
or
Lease Agreement
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