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Home My WebLink AboutContract 58786-A1CSC No. 58786-A1 FIRST AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF FORT WORTH AND MTU MAINTENANCE DALLAS, INC. This First Amendment to the Facility Lease Agreement (City Secretary Contract No. 58786) ("First Amendment") is made and entered into by and between the City of Fort Worth, a home -rule municipal corporation of the State of Texas ('`Landlord"). acting by and through its duly authorized Assistant City Manager, Dana Burghdoff, and MTU Maintenance Dallas, Inc. ("Tenant"), acting by and through its duly authorized President and General Manager, Nezam Moghadassian. WHEREAS, Landlord and Tenant entered into a certain Facilities Lease Agreement ("Lease"), executed January 25, 2023 per City Secretary Contract No. 58786 for Tenant's use of Buildings #12, #13. 915 located at 2100. 2014 and 2112 Eagle Parkway, Fort Worth Texas, 76177 ("Leased Premises") at the Alliance Fort Worth Maintenance Base, and WHEREAS, per Section 11.2 (b), "Deferred Maintenance," of the Lease, the parties agreed to amend the Lease at a future date once specific deferred maintenance obligations had been negotiated and finalized between the parties; and WHEREAS, the parties would now like to enter into this First Amendment to establish the deferred maintenance obligations of the parties under the Lease. NOW THEREFORE, in consideration of the covenants and agreements set forth in the Lease and herein, Landlord and Tenant agree to amend the Lease as follows: 1. In accordance with Section 11.2(b), "Deferred Maintenance." of the Lease, the Parties hereby agree to the following: Landlord and Tenant agree that the Landlord shall fund the completion of up to Eight Hundred and Sixty Thousand Dollars and 00/100 ($860,000.00) in deferred maintenance items described within Attachment "A" of this First Amendment through Landlord's Management Company. The parties understand that the cost of the deferred maintenance items to be completed to the Leased Premises may total more than the $860,000.00 allocated herein and that the Landlord shall only contribute funds up to. but not to exceed, $860,000.00 toward the deferred maintenance. Any remaining deferred maintenance items requiring repair or replacement listed within Attachment A of this First Amendment not covered by the Landlord's contribution herein will be the sole responsibility of the Tenant and must be performed within the Term or earlier termination of the Lease. The Landlord's deferred maintenance contribution established herein does not incur any additional obligations on the Landlord related to maintenance and repair obligations for the Leased Premises under the Lease and Section 11.3. OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX "Landlord's Maintenance and Repair Obligations," is in no way affected by this First Amendment. 2. For the purpose of clarity, the parties confirm. through this First Amendment, that Exhibit "H" under the Lease contains specific Tenant Improvements only and no deferred maintenance items. Anywhere within the Lease where Exhibit H references containing deferred maintenance items is null and void. 3. The Lease is hereby amended by incorporating Attachment A of this Amendment into the Lease as Exhibit "L "Deferred Maintenance items." 4. All other terms and conditions of the Lease shall remain unclhanoed and in full force and effect. j signature page following] EXECUTED on this day of day of /1/0 , 202 3- - - -- - - - - - -- - LESSOR: CITY OF FORT WORTH Dom EwaG kAr Dana Burghdoff (May 31, 2021A:24 CDT) Dana Burghdoff Assistant City Manager LESSEE: MTU MAINTENANCA DALLAS, INC. Name: �/ /gIc55I�►'I Title: City of Fort Worth Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. Mark Bro n (May 30, 202312:06 CDT) Name: Mark Brown Title: Lease Manager, Property Management Department APPROVED AS TO FORM AND LEGALITY: Thomas Royce Hansen Asst. City Attomey ATTEST: Jannette S. Goodall City Secretary Contract Authorization M&C: 23-0370 Date: 5/9/2023 1295: 2023-992259 3 OFFICIAL RECORD Ilk CITY SECRETARY FT. WORTH, TX Attachment "A" EXHIBIT L DEFERRED MAINTENANCE ITEMS TO LEASED PREMISES Alliance Maintenance Facility Deferred Maintenance List kern Tasks Location Area 1 General Service and Maintenance of Rooftop AHU MCC) Mechanical 2 General Service & Maintenance of Rooftop MAU MCC) Mechanical 3 Rebuild Heat Exchanger For HTG System MCO Mechanical 4 General Service d Maintenance of Mechanical Room MCO Mechanical 5 Replace Air Dryer For BMiS in Mechanical Room MCC) Mechanical 6 Inspection and testing of dry transformers MCOTTest Cell Electrical 7 Replacement and repair of dry transformers MCO Electrical g Reseal Concrete Wall and Floor Expansion Joints MCOi}kat Exterior Treat lest Cell 9 Overhaul R4olding Door & Weld Bottom Joint Test Cell Exterior 10 Replace Faulty Pneumatic Actuator Valves in Outstation CP Test Ccll Mechanical ; 11 Replace Clay Valve & Controller on CHW Return Pipework Test Cell Mechanical 12 T&M replacement of failed fans that coo[ the VFD for one of NCO Electrical the chilled water pumps 13 Replace VFD (CHW & HTG Pumps) NCO Electrical 14 Inspection and possible upgrade of fire alarm system NCO 15 Replacement of emergency fighting and exit door signs All 16 Replace Smoke VendSkylights MCO Fire & Life Safety 17 Replace Metal halide Test C-elI Light fixtures Test Cell Electrical 18 General maintenances of the exhaust fans MCO 19 Repair of test bed hydraulic lifting Test Cell Conveyance System j 20 i Replace Clay Valve & Controller on CHW Return Pipework Heat Treat Mechanical 21 Inspection VFD (CHW & HTG Pumps) Hem Treat Mechanical 22 Replace VFD (CHW & HTG Pumps) Heat Treat Electrical 23 Repair Concrete Wall Damage on South Elevation Hut Treat Exterior 24 Repair Cracks in Concrete Paving Site site sytems 4 l'" M&C R�:View Page I of 2 CITY COUNCIL AGENDA Create New From This M&C DATE: 5/9/2023 REFERENCE NO.: *'M&C 23- 0370 LOG NAME: CODE: C TYPE: CONSENT PUBLIC HEARING: Official site of the City of Fort Worth, Texas FORTIVORT11 21 MTU MAINTENANCE AMENDI 1011A] SUBJECT: (CD 7 / Future CD 10) Authorize the Execution of a Lease Amendment with MTU Maintenance Dallas, Inc. to Use Settlement Proceeds Approved in Mayor and Council Communication 22-1060 to Fund Specific Items of Deferred Maintenance Uncompleted by Former Tenant of Leased Premises at the Alliance Maintenance Base, Adopt Appropriation Ordinance, and Amend the Fiscal Year 2023 Adopted Budget in the Total Amount of $860,000.00 RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of a lease amendment with MTU Maintenance Dallas, Inc, to use settlement proceeds approved in Mayor and Council Communication 22-1060 to fund specific items of deferred maintenance uncompleted by former tenant of leased premises at the Alliance Maintenance Base; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Alliance Maintenance Facility Fund in the amount of $860,000.00, From available settlement proceeds, for the purpose of funding specific items of deferred maintenance to leased premises at the Alliance Maintenance Base; and 3. Amend the Fiscal Year 2023 Adopted Budget in the total amount of $860,000. DISCUSSION: On January 13, 2023 the City of Fort Worth (City) executed a Mutual Termination, Settlement, and Release Agreement with Rolls-Royce Corporation (Rolls-Royce) as City Secretary Contract No. 50094-T1 (Mayor and Council Communication (M&C) 22-1060) (Settlement) wherein Rolls-Royce agreed to pay $860,000.00 to the City in lieu of completing their required deferred maintenance obligations to the space located at 2100, 2014 and 2112 Eagle Parkway, Fort Worth Texas, 76177 (Premises). On January 25, 2023, the City entered into a Facilities Lease Agreement with MTU Maintenance Dallas, Inc. (MTU) as City Secretary Contract No. 58786 (M&C 22-1058) for MTU's use of the Premises that has been recently vacated by former tenant Rolls-Royce. As a result of discussions and negotiations between the City's Property Management Department, the City's property manager Hlllwood Properties, and MTU, it has been agreed, subject to City Council approval, that the City will use the proceeds from the Settlement for the completion of certain items of deferred maintenance to the Premises that were not completed by Rolls-Royce, in an amount tip to but not to exceed $860,000.00. This M&C will appropriate the $860,000.00 received from the Settlement to fund the completion of certain deferred maintenance items to the Premises. The action in this M&C will amend the Fiscal Year 2023 Adopted Budget as approved in connection with Ordinance 25773-09-2022, Section 2. Special Revenue Funds, as listed on page 5: Alliance Maintenance FY2023 Adopted Budget FY2023 Revised Facility Fund Budget Adjustment Budget 1ittp:Ilapps.cfm,nct.orglcotincif_jiackct/{nc—review.asp?ID—i0997&cotiiicildatc--5/9/2023 5/11/202 / *1 Vt&C ReVi0v Page 2of2 Revenues Settle Up Revenue $0.00 $860,000.00 $860,000.00 Expenditures Facility Repair & Maint $0.00 $860,000.00 $860,000.00 This property is located in COUNCIL DISTRICT 7 1 Future COUNCIL DISTRICT 10- FISCAL INFORMATIONICERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations, execution of the lease amendment and adoption of the attached appropriation ordinance, funds will be available in the Alliance Maintenance Facility Fund. Prior to any expense being incurred, the Property Management Department has the responsibility to validate the availability of funds. TO Fund Department Account Project Program Activity IReference # Year (Chartfield 2�BudgetAmount — -- FROM Fund Department Account Project Program Activity Budget Reference # Amount 1 ID j ID Year__ j (Chartfield 2) Submitted for Citv Manager's Office bv: Dana Burghdoff (8018) ❑riainatina Department Head: Steve Cooke (5134) Additional Information Contact: Mark Brown (5197) Marilyn Schoening (7581) ATTACHMENTS 21MTU MAINTENANCE AMEND funds avaiiabilitv.gdf (CFW Internal) FI❑ TABLE - MTU MAINTENANCEAMEND1.xlsx (CFW Internal) Form 1295, Texas Ethics Commission, 03-08-2023.0f (CFW Internal) GL0019-02 - Operatinq Dept Sum ❑etail.pdf (CFW Internal) MTU M AND C MAP for amendment 1.pdf (Public) ORD.APP 21 MTU MAINTENANCE AMENDI 28009 A023(r2).docx (Public) littP:,`lapfas.cAVnct.nr&'/couTic iI_packet/rnc—review.asp?[D--30997&counciIdatc-5/9/2023 511 €/2023