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Allan Ekberg, Mayor <br />TO: <br />Mayor's Office - David Cline, City Administrator <br />Mayor Ekberg <br />Finance & Safety Committee <br />FROM: David Cline, City Administrator <br />DATE: October 26, 2018 <br />SUBJECT: Alliance One Lease Agreement <br />ISSUE <br />The current lease agreement with Alliance One Management Receivables expires on December 31, <br />2018. <br />BACKGROUND <br />Alliance One is the company Tukwila Municipal Court contracts with to provide collection services <br />for unpaid court fines and fees and manages long-term payment plans for court customers not in <br />collections. In May 2009, Alliance One began leasing space with the City of Tukwila. Per RCW <br />35A.11.010 and 35A.11.020 all lease agreements must go before City Council for authorization. <br />DISCUSSION <br />We are proposing a two-year lease agreement from January 1, 2019 - December 31, 2020 to coincide <br />with the biennium budget cycle, as well as a 3.33 percent increase ($30/month) in the monthly rent. <br />FINANCIAL IMPACT <br />The 3.33 percent increase in rent means Alliance One would pay the City of Tukwila $930.00 a month <br />to lease space in the court area. In addition to the monthly rent, Alliance One will pay leasehold <br />excise tax pursuant to RCW 82.29A at the rate of 12.84 percent of the monthly rent in the amount of <br />$119.41 per month. <br />RECOMMENDATION <br />The Committee is being asked to move this item forward to the consent agenda of the November 19, <br />2018 City Council Meeting for approval and authorization for execution by the Mayor. <br />ATTACHMENTS <br />Draft Lease Agreement for 2019-2020 <br />Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov <br />65 <br />