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HomeMy WebLinkAboutTR-32-88 TOWN OF NEWCASTLE REPORT File �'� Res. # _t 5� By-Law # MEETING: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE DATE: June 20, 1988 REPORT #: TR-32-88 FILE #: SUB.ECT: LEASE AGREEMENT WITH THE MINISTRY OF GOVERNMENT SERVICES PROBATION OFFICES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That this report be received; and 2. That rental of the Probation Offices in the amount of $8,2101.00 annually from July 1, 1988, provided demised area is available for occupancy on that date, be approved forthwith; and 3. That a By-Law authorizing the Mayor and Clerk to execute a Lease Agreement with Her Majesty the Queen, as represented by the Ministry of Government Services for the Province of Ontario, for the rental of the Probation Offices in the premises located at 132 Church Street, Bowmanville, be executed. BACKGROUND AND COMMENT: Upon completion of the Town of Newcastle's new Administrative Facility, the Community Services Department will be vacating the premises, at 132 Church Street, Bowmanville. Government Services aware of this, entered into discussions with the Purchasing and Supply Agent with respect to the leasing of the office space for their Probation Offices. Page - 2 - TR-32-88 LEASE AGREEMENT WITH THE MINISTRY OF GOVERNMENT SERVICES PROBATION OFFICES A total area of 821 square feet at an annual rental of $8,2101.00 ($101.001 per square foot, $684.17 per month) for a five (5) year term is proposed. This rate is the same rate currently paid by the Ministry of Government Services for the Holding Cells and Court Rooms. See the Offer to Lease, marked Schedule "A". With respect to the operating costs of the building, the lease includes an escalation clause derived by multiplying the base costs by the percentage of increase reflected by Statistic Canada Consumer Price Index. The base costs per square foot, per annum will be adjusted to the most current year's operating costs. For the information of Council, the Ministry of Government Services has been approached with respect to purchasing the building from the Town of Newcastle, and relative to this, a cancellation clause has been included in the agreement. All other terms and conditions of the original Lease Agreements remain the same. In reviewing rental space rates in the area, staff feel that the proposed rate is reasonable and recommend that the proposed lease be accepted. As the Ministry of Government ,Services is anxious for a commitment, a forthwith approval is requested. Respectfully submitted, Recommended for presentation to the Committee, .R. Blanchard, rence E. of ,eff, Treasurer. Chief Ad min st ative Officer. LABAjm Attachments .Ministry of Offer To Lease Government Services Ontario File No. L-5142 I/We Tbe Corporation of the Tam of Newcastle of the Town of Newcastle in the County/District of Durham being the owner(s)of the Premises situated on Lots 159, 160 & 161 Reg.Plan John Grant P.L.S. 1K2 fi il3�YlY IR in the County/District of Durharn hereby offer to lease to Her Majesty the Queen as represented by the Minister of Government Services for the Province of Ontario the said premises more fully described as follows, and according to the following terms and conditions: 1. Address of premises 132 Church Street, Bowmanville 2. Identification of area(room number) Main Floor 3. Total gross demised area offered(square feet) 821 sq.ft. q r 4. Total rent being$ 8.210.00 per year payable($ 684.17 monthly in advance). 5. Tenancy to be for a period of five years with the right to the Province to renew demised area for a further period of five years,at the same rental and under the same conditions for the period of renewal only. Payment of rent to commence on 1st day of July 19-aEL provided demised area is available for occupancy on that date. ( 6. Facilities and services to be supplied at our expense as owner(s),cost of which is included in the above- ` noted rent: (a) Heat to a temperature of 20-23 degrees Celsius between the 15th day of September and the 15th day of May during the term of the lease and any other times of the year if necessary for comfortable occupancy. (b) Satisfactory toilet facilities for male and female employees to comply with the requirements of The Occupational Health and Safety Act R,S.O. 1980, Chapter 321. (c) Premises to comply with all provincial requirements or regulations and municipal by-laws. (d) To supply hot and cold water to the said demised premises. (e) Suitable janitor service including the washing of windows inside and outside at least 6 times per year,the daily sweeping of floors and the washing and waxing of such floors at least once a week,the daily empty- '" ` ing of waste baskets, the keeping in proper repair and condition of the washrooms, the furnishing of washroom supplies,and daily dusting of furniture. ` (f� Adequate electric light fixtures,replacement of electric bulbs,fixtures,electric neon tubes,including all i maintenance and parts thereto,together with all charges for electric power and electric light. ay (g) The removal of snow and ice from the sidewalks adjacent to the said premises and the parking lot in connection therewith,and all private walks to the said premises. (h) The replacement, in case of breakage, of glass or plate glass windows,with glass of the same kind and quality,save where-such damage or breakage has been occasioned by servants or agents of the Province. (i) The provision of designated parking space for three cars at(location) adjacent to leased prpm ses, (k) Complete air-conditioning of premises,including maintenance of same. (1) It is understood &agr-eed that the original counter shall be reinstalled in the leased prenises, at the Lessor's expense. (m) Attached to and fonnirlg part of this Offer to Lease are Schedules "A", 'B" and "C", all of which are to be initialled by both parties for identification purposes. (n) Should the Ministry of Government Services purchase said building frcm the Tan of Mcastle, this lease beowes nal and void. 7. The Province shall have the right to assign the lease or sublet the whole or any part of the demised premises, subject to approval of the lessor,which approval will not be unreasonably withheld. 8. The Province at its option may remove its fixtures during or on termination of the lease. 9. If required We agree to execute a lease to be drawn by.-the Ministry of Government Services on its usual form. 10. This offer is open for acceptance by registered mail up to and including 30th day of Juno A.D., 19.88 , and UPON ACCEPTANCE by registered mail,shall constitute an agreement binding to both parties. ' 11. We acknowledge that no verbal promises have been made by any agent of the said Ministry. Witness my hand and seal this day of A.D., 19^„ Signature WITNESS Address REMARKS Date Assistant Director. MOS-40(2rtr7) SCHEDULE "A" ALL AND SINGULAR that certain parcel or tract of land and premises situate, lying and being in the Town of Newcastle, in the Regional Municipality of Durham i (formerly in the Town of Bowmanville, in the County of Durham) , and Province of Ontario, being composed of Lots 159, 160, 161 and 162 in Block "Q" according to a plan of the Village of Bowmanville by Sohn Grant , P.L.S. , registered in the Registry Office for the Registry Division of the West Riding of the County of Durham on April 20, 1852, the boundaries of the said parcel being described as follows: PREMISING that the bearings are astronomic, derived from observation on polaris and referred to the meridian through the south-easterly corner of Lot 162, Block "Q", according to the said plan by Sohn Grant , I . P.L.S., and relating all bearings herein thereto; COMMENCING at the south-easterly corner of the said Lot 162; THENCE north seventeen degrees, fifty-five minutes, forty seconds east (N. 17' 55' 40" E. ) along the south-easterly limit of the said Lot 162, one hundred and sixty-three and seventy-five one-hundredths feet (163.751) to the north-easterly corner of the said Lot 162; THENCE north seventy-one degrees, forty-three minutes, twenty seconds west (N. 71 43' 20" W.) along the north-easterly limit of the said Lots 162, 161 , 160 and 159, two hundred and fifty-nine and seventy-seven one-hundredths feet (259.771 ) to the north-westerly corner of the said Lot 159; THENCE south nineteen degrees, nine minutes, thirty seconds west (S. 19' 09' 30" W. ) along the north-westerly limit of the said Lot 159, one hundred and sixty-four and eight one-hundredths feet (164.08 ' ) to the south-westerly corner of the said Lot 159; THENCE south seventy-one degrees, forty-seven minutes, twenty seconds east (S. 71' 47 ' 20" E.) along the north-easterly limit of Church Street as shown on the said plan by Sohn Grant , P.L.S. , two hundred and sixty-three and nineteen one-hundredths feet (263.191 ) to the point of commencement. AND DESIGNATED AS Part 1 on Ontario Department of Public Works Plan of Survey Number 404-201L. i SCHEDULE " B " OPERATING COST ADJUSTMENT �. In this schedule: a) "operating costs" means the total amount paid by the landlord for the following supplies and services to the extent only that they are supplied to and consumed in the building. Janitorial services (cleaning and supplies for cleaning) , fuel for heating, elevator maintenance (labour only) , water, electricity not otherwise chargeable to tenants, air conditioning maintenance (labour only) , heating equipment maintenance (labour only) , window cleaning, fire, casualty and liability insurance costs, grass cutting and tending of flower beds only on the grounds forming part of the lands, snow removal, security service; provided that the operating costs as hereinbefore defined shall not include the costs of installation, repairs and replacement or pacts for any of the above mentioned services, any amounts directly chargeable by the landlord to any tenant or tenants other than operating cost adjustment, the cost to cure physical deterioration and the cost of any repairs to the extent covered by the proceeds of insurance claims made by the landlord; ! b) "building and the land pertinent thereto" means the total area of the landlord's building and the parcel of land upon which the building is :. situated. The area of the parcel of land included in this description should be reasonable in relation to the* building and, in any case, should not exceed 1101 of the amount of land required for the building coverage under the applicable zoning reguiations. Any portion of the total parcel which can be severed should not be included as part of the lease. The landlord will make the necessary adjustment to reflect a reasonable area of the parcel of land; c) "base year" means the period of twelve months commencing on the first day of January , 198 6 and expiring-on the 31s day of -December , 1966 , and being the first annual financial account ng period of the landlord after the commencement of the term of this lease; d) "subsequent period" means each successive period of twelve consecutive months following the base year, the whole or part of which is included within the term; e) "rentable area" means the rentable area of the premises calculated in accordance with the American Standard Method of floor measurement (BOMA Rev. August/72) and being for the purpose of this lease 76.5 square meters ( 821 square feet) ; f) "total rentable area" means the total rentable area of the building, as if the building were entirely occupied 'by tenants renting whole floors, calculated in accordance with the American Standard Method of floor measurement (BOMA Rev. Augu3t/72) . The lobby and entrances on the ground floor used in common by tenants, and mechanical equipment areas shall be excluded from the foregoing calculations. For the purpose of this lease the total rentable area is _1,100.1 square meters (___11_,842 square feet) ; 9) "Proportionate share" means the fraction which has as �tts numerator the rentable area of the premises as calculated in 1(e) or as adjusted in 3 and has as its denominator the total rentable area of the building as calculated in accordance with paragraph 2. 2• The calculation of the total rentable area of the building, whether rented or not, shall 'be determined upon completion of the building, and shall be adjusted from time to time to give effect to any structural or functional change affecting the building; 3. The calculation of the rentable area of the premises shall be adjusted from time to time to give effect to any structural or functional change affecting the building and which affects the rentable area of the premises during the term of the lease; If the operating costs for any subsequent period is more than the operating costs for the base year, the tenant shall pay the landlord the proportionate share of any such ' Icrease. The landlord shall invoice the tenant for any such increase once a year, within sixty (60) days following the end of the subsequent period in which such increase occurs, anc the tenant shall remit payment within sixty (60) days of receipt and verification of such invoice, and time is to be of the essence. Should the landlord fail to invoice the tenant within the said sixty (60) days, the tenant shall have the privilege of paying the amount due, at its convenience, but within twelve months following receipt of the invoice. If the operating costs for any subsequent period is less than the operating costs for the base year, the landlord shall pay to the tenant the proportionate share of any _ .ch oecrease within sixty (60) days following the end of the subsequent period in which such decrease occurs. If only part of the final subsequent period is included within the term, any such amount payable for such period shall be based upon the amount payable for the preceding subsequent 'period, shall be reduced Proportionately, and shall be payable at the end of,the term. 5. The landlord's statement for operating costs must not include any expenses pertaining to: a) Parking and garage areas for which the landlord receive payment for parking services, and b) Costs which solely benefit one particular rentable area or group of occupants, other than the tenant. 6. The operating costs of the base year shall be calculated as follows: a) If the building was fully occupied by tenants during the whole of the base year, the operating costs for the base year shall be the operating costs incurred. 0) If the building was not fully occupied by tenants during the whole of the base year, the operating costs incurred for the base year shall be adjusted to reflect full occupancy during the whole of the base year. c) Where any service in the nature of operating costs, as hereinbefore defined, is performed in the base year under any form of warranty at no charge to the landlord, the usual cost of such service shall be ascertained and included in operating costs for the base year. . operating costs for any subsequent period shall be reasonable as compared to the base year and, in any case, the increase reflected shall not be more than the increase of the Consumer Price Index for the same period, and shall be calculated as follows: a) If the building was fully occupied by tenants during the whole of the subsequent period, the operating costs incurred? b) If the building was not fully occupied by tenants during the whole of the subsequent period, the operating costs for such subsequent period shall be obtained by adjusting operating costs incurred to reflect full occupancy during the whole of the subsequent period] C) If there was no expenditure in the base year for any item of operating costs properly incurred in a subsequent period, a reasonable approximation of the cost of such item shall be made, as if it had been incurred in the base year, and the tenant's proportionate share shall be the difference between this approximation and the actual expenditure for that item incurred in ' the subsequent period. ! �;V 3 - • i B. The landlord shall provide a complete itemized audited statement of the base year operating costs to the tenant within sixty (60) days of the end ;1 of the base year, together with a statutory declaration by the landlord's auditor that all the provisions of Schedule " B " have been met. Itemization of the base year statement shall U as in 9) following. ; 9. The landlord's invoice for operating cost adjustment for each and every subsequent period shall be accompanied by an itemized audited statement of the operating costs for such subsequent period, signed by the auditor and with a statutory declaration by the landlord's auditor that all the provisions of Schedule " B " have been met. The itemization of the statement shall conform to the following twelve (12) categories, if applicable: a) Janitorial (including cleaning and washroom supplies) b) Hydro charges c) Insurance d) Security service e) Water f) Air conditioning equipment maintenance ('labour only) 9) Window cleaning h) Elevator maintenance (labour only) i) Snow removal j) Heating (fuel) - specify oil, gas, steam or electricity) k) Heating equipment maintenance (labour only) , 1) Grass cutting and tending of flower beds (labour only) - no replacements) . The operating cost adjustment should reflect only the increase (or decrease) in the cost of the services and supplies of the standard, quality and volume accounted for in the base year. Any upgrading or increase in the standard or volume of services and supplies, in subsequent years, over the standard or volume of services and supplies of the base year, will not be given consideration in subsequent years unless specific prior written approval has been obtained from the tenant. to. The tenant shall have the right to examine .the landlord's books--o-f account upon reasonable notice as a means of verifying the itemized audited statement of operating costs submitted by the landlord in support of its claim for operating cost adjustment with respect to both the base year and subsequent period. 11. If at any time during the term of this lease, or any renewal thereof, fifty per cent (50%) or more of the premises become unoccupied and vacant for periods in excess of thirty days, the landlord shall abate the rent for any savings in janitorial or other services which result from such vacancy. This provision shall only apply where the vacant area can be isolated from the rest of the premises and no janitorial or other services are required. Where this situation exists and where, for ,whatever reasons, the landlord does not abate the rent accordingly, the tenant shall have the right to deduct her reasonable estimate of the amount of the abatement from the rent payable under this lease agreement. Such abatement is not required to be effected at the time of such vacancy, but may take place at any time during the existene?4 of the lease, when the tenant becomes aware of the savings due to the vacancy. i SCHEDULE " C " JANITOR SERVICE offices: Daily Cleaning Empty all waste baskets Empty and damp wipe all ash trays Dusc all furniture and equipment oust all window sills, partition ledges and other horizontal surfaces Dust mop all tile floors using a dust control method vacuum clean all carpeted areas Remove finger marks and smudges from all walls, doors, glass partitions and other surfaces Washrooms: Daily Cleaning Clean all wash bowls, plumbing fixtures and mirrors Clean and disinfect toilet bowls and seats and urinals Empty waste receptacles Restock wash-room supply dispensers Wipe down t—let partitions wash floors with a disinfectant - detergent solution Public Areas: (Corridors, Main Lobby and Elevators) Daily Cleaning i Sweep ano damp mop all floors Remove finger marks and smudges from all glass, metal and painted surfaces Vacuum clean all carpe d areas Dust all furniture and equipment DLst all window sills and other horizontal surfaces Clean elevator door tracks Sweep, wash and spray buff all elevator floors Stairways: Daily and Weekly Cleaning Sweep all stairs daily Damp wipe all hand railings daily Wash stairs weekly Tile Floors: Spray buff all tile floor surfaces twice weekly Remove all wax and refinish at least three times per year Carpets: 0 Steam clean all carpeted areas once a year vertical Surfaces other than Walls: oust weekly trall Pictures: Dust weekly rinaows: Wash inside and outside at least six times per year NOTE: Daily cleaning may be performed on either a Monday to Friday or Sunday to Thursday schedule. 5.I d ''` S-.