A-65357, DECEMBER 12, 1935, 15 COMP. GEN. 483

A-65357: Dec 12, 1935

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THE IMPROVEMENTS ARE SUCH THAT THEIR REMOVAL. 1935: THERE ARE FOR CONSIDERATION LEASE NO. IS OBLIGATED TO FURNISH ALL LABOR AND MATERIALS. WHICH IS AS FOLLOWS: CHART ITEM ARTICLES OR SERVICES AND UNIT PRICES ESTIMATED NO. WAS ENTERED INTO BETWEEN THE GOVERNMENT AND PITTOCK BLOCK. IN WHICH LEASE IT WAS PROVIDED THAT PITTOCK BLOCK. THE OBLIGATION TO FURNISH LIGHT SERVICE CARRIES WITH IT NOT ONLY THE CONTRACT TO FURNISH THE CURRENT BUT THE NECESSARY WIRING AND OTHER EQUIPMENT BY AND THROUGH WHICH THE POWER IS TURNED INTO LIGHT. THIS OBLIGATION IS NOT LIMITED TO SUCH EQUIPMENT AND APPARATUS AS WERE IN USE IN THE OFFICES WHEN RENTED BUT EXTENDS ALSO TO SUCH AS MAY BE REASONABLY NEEDED DURING THE LIFE OF THE LEASE IN CONNECTION WITH THE PURPOSE FOR WHICH THE SPACE WAS RENTED.

A-65357, DECEMBER 12, 1935, 15 COMP. GEN. 483

REPAIRS AND IMPROVEMENTS TO LEASED BUILDINGS IMPROVEMENTS TO A LEASED BUILDING OF A PERMANENT CHARACTER AND SUCH AS MAY BE REASONABLY NECESSARY AND REQUIRED OF THE LESSOR TO FURNISH LIGHT SERVICE PROVIDED FOR BY THE CONTRACT MAY NOT BE PAID FROM APPROPRIATED FUNDS, PARTICULARLY WHERE THE LESSOR MAY REQUIRE RESTORATION OF THE PREMISES TO THE SAME CONDITION AS EXISTING AT THE TIME OF ENTERING UPON THE SAME, AND THE IMPROVEMENTS ARE SUCH THAT THEIR REMOVAL, IF PERMITTED BY THE LESSOR, CANNOT BE MADE WITHOUT TOTAL LOSS TO THE GOVERNMENT.

DECISION BY COMPTROLLER GENERAL MCCARL, DECEMBER 12, 1935:

THERE ARE FOR CONSIDERATION LEASE NO. W 698 ENG-471, DATED OCTOBER 3, 1933, ENTERED INTO WITH THE PITTOCK BLOCK, INC., PORTLAND, OREG., COVERING SPACE IN THE PITTOCK BLOCK BUILDING, AND CONTRACT NO. W 694 ENG-5, DATED MAY 15, 1935, ENTERED INTO WITH THE JAGGAR-SROUFE CO., PORTLAND, OREG., COVERING ELECTRICAL WORK IN THE PITTOCK BLOCK BUILDING, IN WHICH CONTRACT THE JAGGAR-SROUFE CO. IS OBLIGATED TO FURNISH ALL LABOR AND MATERIALS, AND PERFORM ALL WORK REQUIRED FOR REPLACING THE ORIGINAL LIGHTING SYSTEM IN THE DESIGNATED AREAS OF THE SIXTH FLOOR OF THE PITTOCK BLOCK WITH AN INDIRECT LIGHTING SYSTEM, INCLUDING THE RECONSTRUCTION OF ALL FEEDER AND BRANCH CIRCUIT WIRING, THE REPLACING OF SWITCH PANELS AND LOCAL SWITCHES; THE ADDITION OF CERTAIN NEW OUTLETS AND LOCAL SWITCHES; THE REMOVAL OF GOVERNMENT-OWNED FIXTURES FROM THIRD FLOOR OFFICES TO BE VACATED; AND THE HANGING OF FIXTURES AND LAMPS FURNISHED BY THE GOVERNMENT, ALL IN THE BUILDING KNOWN AS THE PITTOCK BLOCK, LOCATED ON WASHINGTON STREET BETWEEN NINTH AND TENTH AVENUES, PORTLAND, OREG., FOR THE CONSIDERATION OF THE UNIT PRICES ENUMERATED IN SCHEDULE FORM A, NO. 694-35-5, WHICH IS AS FOLLOWS:

CHART ITEM ARTICLES OR SERVICES AND UNIT PRICES ESTIMATED

NO. (QUANTITIES ESTIMATED) AMOUNT

1 FEEDERS, PANELS, AND WIRING, 1 JOB, THREE THOUSAND

FORTY-TWO DOLLARS ($3,042) FOR THE JOB ------------- $3,042.00

2 NEW CEILING OUTLETS, 60 EACH, AT UNIT PRICE OF

THREE DOLLARS ($3) EACH ---------------------------- 180.00

3 NEW SWITCH OUTLETS, 10 EACH, AT UNIT PRICE OF FIVE

DOLLARS ($5) EACH ---------------------------------- 50.00

4 LOCAL SWITCHES, 20 AMP., DOUBLE POLE, 23 EACH, AT UNIT

PRICE OF ONE DOLLAR AND SIXTY CENTS ($1.60) EACH --- 36.80

5 LOCAL SWITCHES, 10 AMP., SINGLE POLE, 9 EACH, AT UNIT

PRICE OF ONE DOLLAR ($1) EACH ---------------------- 9.00

6 REMOVAL OF 3D FLOOR FIXTURES, 1 JOB, ONE HUNDRED FIVE

DOLLARS ($105) FOR THE JOB ------------------------- 105.00

7 FIXTURE HANGING, 178 EACH, AT UNIT PRICE OF ONE

DOLLAR AND TEN CENTS ($1.10) EACH ------------------ 195.80

TOTAL ---------------------------------------- 3,618.60

ON OCTOBER 3, 1933, LEASE NO. W 698 ENG-471, SUPRA, WAS ENTERED INTO BETWEEN THE GOVERNMENT AND PITTOCK BLOCK, INC., PORTLAND, OREG., COVERING SPACE FOR USE BY THE GOVERNMENT IN THE PITTOCK BLOCK BUILDING, IN WHICH LEASE IT WAS PROVIDED THAT PITTOCK BLOCK, INC., THE LESSOR, "SHALL FURNISH TO THE GOVERNMENT, DURING THE OCCUPANCY OF SAID PREMISES, UNDER THE TERMS OF THIS LEASE, AS PART OF THE RENTAL CONSIDERATION, THE FOLLOWING: WATER, LIGHT, HEAT, TOILET, JANITOR, AND ELEVATOR SERVICE.'

THE OBLIGATION TO FURNISH LIGHT SERVICE CARRIES WITH IT NOT ONLY THE CONTRACT TO FURNISH THE CURRENT BUT THE NECESSARY WIRING AND OTHER EQUIPMENT BY AND THROUGH WHICH THE POWER IS TURNED INTO LIGHT, AND THIS OBLIGATION IS NOT LIMITED TO SUCH EQUIPMENT AND APPARATUS AS WERE IN USE IN THE OFFICES WHEN RENTED BUT EXTENDS ALSO TO SUCH AS MAY BE REASONABLY NEEDED DURING THE LIFE OF THE LEASE IN CONNECTION WITH THE PURPOSE FOR WHICH THE SPACE WAS RENTED. SEE 6 COMP. GEN. 250, ALSO UNITED STATES POST OFFICE CORPORATION V. UNITED STATES, CT.CLS. NO. 42469, MARCH 4, 1935.

IT IS ADMINISTRATIVELY URGED THAT AT THE TIME THE LEASE WAS EXECUTED IT WAS BELIEVED THE LIGHTING FURNISHED WAS SATISFACTORY BUT THAT LATER IT WAS FOUND THAT THE ADDITIONAL EQUIPMENT NOW SOUGHT IS NECESSARY TO FURNISH SUFFICIENT LIGHT FOR THE EMPLOYEES, PRINCIPALLY DRAFTSMEN, WHO OCCUPY THE SPACE, WORKING LONG HOURS, INCLUDING NIGHT SHIFTS, AND THAT THE FIXTURES TO BE INSTALLED ARE THE PROPERTY OF THE UNITED STATES AND WILL BE REMOVED WHEN THE PREMISES ARE VACATED.

IT APPEARS MOST OF THE IMPROVEMENTS ARE SUCH AS CANNOT BE REMOVED (EVEN IF PERMITTED BY THE LESSOR) WITHOUT A TOTAL LOSS TO THE GOVERNMENT, ESPECIALLY IN VIEW OF THE OBLIGATION ON THE PART OF THE GOVERNMENT TO "RESTORE THE PREMISES TO THE SAME CONDITION AS THAT EXISTING AT THE TIME OF ENTERING UPON THE SAME UNDER THIS LEASE.' IN THIS CONNECTION SEE 26 C.J. 700, SECTION 86.

OBVIOUSLY, THE LESSOR IS BOUND TO MAKE THE IMPROVEMENTS NECESSARY TO FURNISH THE LIGHT SERVICE IN ACCORDANCE WITH ITS CONTRACT WITH THE GOVERNMENT WITHOUT COST TO THE GOVERNMENT.

THERE IS NOTED SECTION 8 OF THE LEASE IN WHICH IT IS PROVIDED:

THE GOVERNMENT SHALL HAVE THE RIGHT, DURING THE EXISTENCE OF THIS LEASE TO MAKE ALTERATIONS, ATTACH FIXTURES, AND ERECT ADDITIONS, STRUCTURES, OR SIGNS, IN OR UPON THE PREMISES HEREBY LEASED (PROVIDED SUCH ALTERATIONS, ADDITIONS, STRUCTURES, OR SIGNS SHALL NOT BE DETRIMENTAL TO OR INCONSISTENT WITH THE RIGHTS GRANTED TO OTHER TENANTS ON THE PROPERTY OR IN THE BUILDING IN WHICH SAID PREMISES ARE LOCATED); WHICH FIXTURES, ADDITIONS, OR STRUCTURES SO PLACED IN OR UPON OR ATTACHED TO THE SAID PREMISES SHALL BE AND REMAIN THE PROPERTY OF THE GOVERNMENT AND MAY BE REMOVED THEREFROM BY THE GOVERNMENT PRIOR TO THE TERMINATION OF THIS LEASE, AND THE GOVERNMENT, IF REQUIRED BY THE LESSOR, SHALL, BEFORE THE EXPIRATION OF THIS LEASE OR RENEWAL THEREOF, RESTORE THE PREMISES TO THE SAME CONDITION AS THAT EXISTING AT THE TIME OF ENTERING UPON THE SAME UNDER THIS LEASE, REASONABLE AND ORDINARY WEAR AND TEAR AND DAMAGES BY THE ELEMENTS OR BY CIRCUMSTANCES OVER WHICH THE GOVERNMENT HAS NO CONTROL, EXCEPTED: PROVIDED, HOWEVER, THAT IF THE LESSOR REQUIRES SUCH RESTORATION, THE LESSOR SHALL GIVE WRITTEN NOTICE THEREOF TO THE GOVERNMENT NINETY DAYS BEFORE THE TERMINATION OF THE LEASE.

HOWEVER, WITH HEREINAFTER MENTIONED EXCEPTIONS, THE IMPROVEMENTS ARE PERMANENT AND NOT SUCH AS MAY BE MADE UNDER THIS SECTION, ESPECIALLY WHEN THE LEASE PROVIDES THAT THE LESSOR SHALL FURNISH THEM "AS PART OF THE RENTAL CONSIDERATION.' SEE 5 COMP. DEC. 478; 2 COMP. GEN. 607; 5 ID. 366; A-64095, AUGUST 5, 1935.

IT APPEARS THAT ITEMS 6 AND 7 OF SCHEDULE FORM A IN THE TOTAL AMOUNT OF $300 ARE FOR SERVICES IN CONNECTION WITH THE REMOVAL AND HANGING OF REMOVABLE GOVERNMENT-OWNED FIXTURES AND MAY BE PAID FOR BY THE GOVERNMENT UNDER SECTION 8 OF THE LEASE.

ACCORDINGLY, AS THE LESSOR IS BOUND TO MAKE THESE IMPROVEMENTS, WITH THE ABOVE EXCEPTIONS, WHEN AND AS NECESSARY TO FURNISH LIGHT SERVICE AS PROVIDED IN THE CONTRACT, THEY MAY NOT BE PAID FOR FROM APPROPRIATED FUNDS.