Loading...
HomeMy WebLinkAboutCOW 2009-09-14 Item 4H - Lease Agreement - Seattle Southside Visitor Center at 3100 South 176th Street COUNCIL AGENDA SYNOPSIS �p11Lq i, �J` q,, Initials ITEM NO. <C 0' y i illeetinq Date 1 Prepared by 1 Mayor's review 1 Council review 1 09/14/09 I DCS 1 iL4-e- I iPraIA) J` 9 09/21/09 DCS I t 90$ I 1 1 I i4., f t. ITEM INFORMATION 1 CAS NUMBER 09-131 'ORIGINAL AGENDA Dx I SEPTEMBER 14, 2009 AG I;ND,\ I n .r\I Tali Seattle Southside Visitor Center Lease C•\ 1 I G( )RY Discussion Motion Resolution Ordinance O B I clAward Public Hearing Other Mtg Date 09/14/09 A1tg Date 09/21/09 Altg Date Mtg Date tlltg Date tlItg Date illtg Date 1SPONSOR n Council Mayor Adm Svcr DCD Finance Fire U Legal P &R Police n PW SPONSOR'S The Seattle Southside Visitor Center lease term ended on 8/31/09. The City needs a new SU\IM, \RY lease at the current location or a new location. After evaluating mutiple sites, staff recommends moving to a new location at 3100 South 176 Street in SeaTac. The Council is being asked to select a preferred location. Staff will then return to Council with a proposed lease. RI';VII :W] qD BY COW Mtg. CA &P Cmte F &S Cmte 1 Transportation Cmte Utilities Cmte Arts Comm. E Parks Comm. Planning Comm. DATE: 9/9/09 RECOMMENDATIONS: SP( )NS()R /ADMIN. Office of the Mayor COMMITTEE Forward to Committee of the Whole COST IMPACT FUND SOURCE ExPI N1)I1•URl'. RI?(QUIRI:D AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 Fund Source: Coi; MTG. DATE 1 RECORD OF COUNCIL ACTION 9/14/09 I MTG. DATE ATTACHMENTS 09/14/09 Informational Memorandum dated 9/3/09 Minutes from the Finance and Safety Committee meeting of 9/9/09 TO: ISSUE: BACKGROUND: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Finance and Safety Committee FROM: Derek Speck, Economic Development mit rator DATE: September 3, 2009 SUBJECT: Seattle Southside Visitor Center Lease Jim Haggerton, Mayor Seattle Southside Visitor Center's lease term ended on August 31, 2009 and is now continuing on a month -to -month basis. After a lengthy review of available office space locations, staff has selected the two best alternatives and is now seeking Council selection of a preferred alternative. Based on that feedback, staff will return to Council with a proposed lease agreement for the preferred location. In May 1998 the City of Tukwila implemented a special excise tax on lodging charges that is used to promote tourism (Chapter 82.08 RCW). In May 1999, the Southwest King County Chamber of Commerce (SWKCC) and the City of Tukwila (Tukwila) started a new partnership for tourism and marketing services and the Chamber hired Katherine Kertzman as the tourism program manager. In April 2000 Tukwila moved the program in -house in an effort to develop the tourism and marketing program beyond the Chamber membership and include more Tukwila tourism businesses. In January 2002, Tukwila and the City of SeaTac (SeaTac) entered into an interlocal agreement for joint tourism and marketing services for the combined cities under the program title Seattle Southside Visitor Services (SSVS). Tukwila is the administrator of the program and the SSVS staff are employees of the City of Tukwila. The program is funded from the special excise tax on lodging charges in both cities. The interlocal agreement separates costs into four types: basic operations, joint media campaign, joint special projects, and SeaTac specific projects. For basic operations, the agreement does not specify a specific contribution amount from each city but states the amount will be determined annually during the budget process. After the first year SeaTac has contributed 55% and Tukwila has contributed 45% of the basic operational expenses. The rationale was that this approximates a 50/50 split since Tukwila bears administrative costs that are not charged to the SSVS budget (information technology, finance, personnel, legal, insurance, city car, etc.). For the joint media campaign and joint speciai projects, the agreement specifies that the activities will be mutually agreed upon and that Tukwila and SeaTac will split the costs 50/50. For SeaTac (and Tukwila) specific projects, the cities pay for those projects themselves. Neither city contributes all of its lodging tax into the partnership. In 2009, Tukwila will contribute $497,000 which is approximately 80% of its budgeted lodging tax revenue. For the same year, SeaTac will contribute $652,000, which is approximately 54% of its budgeted lodging tax revenue. $100,000 of INFORMATIONAL MEMO Page 2 the additional amount SeaTac contributes is to provide extra shuttle service from SeaTac hotels to Westfield Southcenter and $55,000 is due to the 55/45 split of basic operating costs. It should be noted that SeaTac may contribute a higher percentage in 2010 and that a significant portion of their total lodging tax revenue is dedicated to debt service and is non discretionary. In 2004 Tukwila signed a lease for the current office location in the Fairway Center at 14220 Interurban Avenue South, Suite 130 in Tukwila. The lease was for 1,800 square feet for a five year term ending August 31, 2009. SSVS is currently holding over with the owner's permission on a month -to -month basis. The holdover rent is 50% higher than the most recent monthly rent and the tenancy may be terminated by either party with 20 days notice. In April 2009 staff began researching what sites were available for SSVS office space and in May started working with a SeaTac commercial nder 5,000 sgbaoreefeet The stings�ota edeove`r available office listings in Tukwila 0 sites. and The following general criteria were considered when evaluating the available sites: Located in the cities of Tukwila or SeaTac Lease rent lower than the current rent (market rents have fallen) Same or greater amount of space Within 2 miles of an 1 -5 exit for free WSDOT visitor center signage Visible exterior building signage Available clean public restrooms Entrance at street level and near front of the building The team completed 10 site visits, analyzed lease proposals on 4 sites, and selected the two best options: the current location in the Fairway Center at 14220 Interurban Avenue South in Tukwila and a new location called the "3100 Building" at 3100 South 176 Street in SeaTac. Now Tukwila needs to select one of the sites and negotiate a lease. The lease will require City Council approval. DISCUSSION: Both proposed leases are basically five year terms. The Tukwila lease proposes a 65 month term with five months of free rent. The SeaTac lease proposes a 66 month term with six months of free rent. To ensure a more "apples -to- apples" comparison, the rents reflected in the following table are averages over the terms of the leases. The following table compares the two sites. Comparison Rentable Sauare Feet Average Annual Rent Per Square Foot Average Annual Rent Moving Costs and Tenant Improvement Costs 1 Flood zone Fairway Center 3100 Building Tukwila SeaTac 1,800 $17.54 $31,569 None Within FZ 2,202 $16.41 $36,135 $38,000* Outside FZ INFORMATIONAL MEMO Page 3 Comparison Exterior building signage Fairway Center Tukwila Current building signage is only visible on a seasonal basis; in the summer it is partially blocked by trees. 3100 Building SeaTac Building owner will permit exterior Seattle Southside Visitor Center signage on South and West facades. Yes Yes Distance to 1 -5 0.7 miles 2.0 miles Distance to Airport 5.5 miles 1.0 miles Distance to Future Car Rental Building 4.4 miles 1.3 miles Distance to Airport Light Rail Station 5.5 miles 0.2 miles Distance to the Hilton Conference Center 5.7 miles Across Street Distance to Westfield Southcenter Mall 1.9 miles 3.0 miles Distance to Tukwila City Hall 1.4 miles Distance to Southwest King County Chamber Same Building 5.7 miles Located along Seattle Southside Express shuttle's regular route No Yes Access for RVs 1 Difficult turning Easy turning City of SeaTac Preference I No Yes SeaTac Hotel /Motel Committee Preference I No Yes Tukwila Hotel /Motel Committee Preference I No Yes We have strong preliminary indications that moving and tenant improvement costs up to $38,000 will be 100% covered by SeaTac lodging tax. Eligible for 1 -5 WSDOT Visitor Signage Top Reasons for Relocating to the 3100 Building in SeaTac 1. Partnership Considerations: The Cities of SeaTac and Tukwila entered into the interlocal agreement over seven years ago. Tukwila is the administrator of the partnership and clearly has the legal authority to select the location of the offices; however, the interlocal specifies that SeaTac and Tukwila will mutually agree upon the media campaign and marketing activities. Since SeaTac is contributing as much to the SSVS program as Tukwila (more if you include the shuttle funding) they feel locations in SeaTac should be considered equally. The City of SeaTac and SeaTac Hotel Motel Advisory Committee (HMAC) want to continue the partnership with Tukwila but also strongly prefer the 3100 Building. Because SeaTac has about 2.5 times more INFORMATIONAL MEMO Page 4 hotel rooms that Tukwila, is located with the airport, car rental agencies, airport parking, etc. and has a smaller retail base than Tukwila, the travel industry is a much larger business sector in SeaTac than it is in Tukwila. Due to the larger size of its tourism sector, SeaTac may have a greater need for a visitor center in their city than Tukwila does. At some point in the future, SeaTac may decide they must have a visitor center presence near the airport. If we keep SSVS in Tukwila, SeaTac may seek to have a branch office of SSVS or may decide they need their own organization. Moving the office to SeaTac now in the spirit of cooperation can solidify the cooperative nature of the partnership and protect Tukwila in the future. 2. Access to More Tourists: The 3100 Building's location is located more closely to the airport, car rental agencies, and the Hilton Convention Center. It's also within the largest cluster of hotels in the SSVS territory. This proximity makes it easier to reach more tourists. For example, when business people and their spouses stay at SeaTac hotels and have free time, it will be easier for them to stop at the visitor center and be directed to local shopping, dining, and entertainment in Tukwila and the rest of SSVS. The building will also have visitor center signage in view of International Boulevard which may draw in additional tourists looking for suggestions on shopping, dining, entertainment, etc. In 2008 we had 1,080 visitors stop in the Fairway Center location. The signage is better than signage at the Fairway Center. We do not know how many more tourists would visit SSVS in the new location but we believe it will be significantly more than at the Fairway Center. 3. Access to More Hoteliers: Since the 3100 Building is near the largest cluster of hotels in SSVS territory, it is easier for staff to build relationships with area hoteliers for developing travel packages including transportation providers, restaurants, retailers, etc. These travel packages can drive more visitors to Tukwila and the rest of SSVS. 4. Better Public Image: The 3100 Building offers an impressive reception area at the entrance to the building that would make a striking visitor info /concierge desk creating a more professional first impression. 5. Better Workflow: The 3100 Building has more square footage allowing for more storage and better workflow. 6. More Opportunity for Growth: The 3100 Building has more square footage and a physical layout allowing additional workstations to be added. The additional workstations would enable adding volunteers or staff if the need arises. 7. Better Location for Volunteers: Highline Community College and South Seattle Community College have tourism and hospitality management programs and the 3100 Building has better bus service linking to those schools which would make it easier for SSVS to get volunteers and interns. Top Challenges /Risks With Relocating to the 3100 Building in SeaTac 1. Wheelchair Access: The 3100 Building currently does not have sufficient wheelchair access to the reception area, bathrooms, and staff offices. The property owner has indicated a willingness to install necessary improvements to accommodate this need. 2. Front Desk Coverage: The reception area is separated from the main staff offices by a tiignt or approximately eight stairs and is not easily viewable. This makes it more challenging to use staff in offices to back -up reception desk staff. These challenges may be mitigated by installing security cameras and utilizing the intercom on the existing phone system. 3. Possible Staffing Costs: One of the main reasons to move to the 3100 Building is to receive more tourists into the visitor center. Providing high quality, personal assistance to tourists INFORMATIONAL MEMO Page 5 requires a significant amount of time which could necessitate additional staff and /or extra coordination of volunteers. Top Reasons for Remaining in the Fairway Center in Tukwila 1. More Focus on Tukwila: The tourism program started in Tukwila and having the employees located in Tukwila gives them greater knowledge and focus on our city. Over the years, Tukwila has been able to draw on SSVS marketing expertise for other city programs. SSVS staff are very supportive and attached to Tukwila and will continue to do their best to help other City programs but it will be more challenging if they are not as conveniently located to Tukwila. 2. Future Direction of SSVS: Moving the visitor center to SeaTac increases the convenience and access of SeaTac hotels and travel sector businesses to SSVS. That increased proximity might foster a greater sense of ownership with the SeaTac tourism sector which may then want to grow the joint SSVS program. If the program grows and Tukwila continues its current cost sharing with SeaTac, then Tukwila will need to contribute more. That could reduce the amount of lodging tax money Tukwila has for Tukwila only tourism programs. However, it's possible that SeaTac will agree to contribute a higher percentage in the future. 3. Lower Cost: The proposed new annual lease at the Fairway Center amount is $4,565 less annually than 3100 Bldg. in SeaTac. The office layout enables easier back -up support of the reception desk. 4. Administrative Convenience: Tukwila has only stationed city employees outside the city limits on rare occasion and on a temporary basis. This move would be a very new experience. It is possible to continue to administer the tourism program from outside the City limits though it may be slightly more challenging. The larger issue will come if some day the SeaTac contribution to SSVS grows to significantly more than Tukwila's and if SeaTac desires to provide greater direction to SSVS priorities. If that situation arises, it may raise the question of whether it makes sense for Tukwila to administer a program located outside the City limits when it is not the largest funder. 5. Less Moving Downtime: Staying in the current location saves on the staff time involved in moving. 6. Local Pride: The tourism program started in Tukwila and many people feel a strong sense of attachment and pride. We should continue to dedicate a portion of our lodging tax funds for tourism programs that support local pride such as the Centennial, marathon, etc. 7. Better Proximity to Chamber: The Fairway Center site is adjacent with the Chamber of Commerce which fosters communication and joint support. Both organizations will continue to do referrals to each other. Top Challenges /Risks to Remaining in the Fairway Center in Tukwila 1. Flooding: There is an increased risk of flooding along the Green River which could affect the Fairway Center location in the next few years. BUDGET IMPACT: Following is a summary of the anticipated budget impact related to the office space decision. 1. Rent: Because both sites are proposing rent levels lower than the current rent, the future rent is within the 2010 budget and no adjustment is necessary. 2. Staffing and Ongoing Operations: At this time, no additional staffing or operational INFORMATIONAL MEMO Page 6 SUMMARY: costs are anticipated for either location for 2010. 3. One Time Only Expenses: The 3100 Building location would cause one time moving and tenant improvement expenses. A detailed listing is attached. The City of SeaTac and SeaTac Hotel /Motel Advisory Committee have indicated a willingness to pay 100% of the moving and tenant improvement costs up to the current estimate of $38,000. It is unclear at this time whether that commitment extends if costs exceed the current estimate. The HMAC will meet on September 9, 2009 and we will confirm this. Depending on whether SeaTac is able to pay for these costs directly, or if Tukwila needs to process them as the administrator of the facility, we may need to do a budget adjustment to reflect the expenses and offsetting revenue (from SeaTac). This is a challenging decision for the City of Tukwila since the tourism office started in Tukwila and moving to SeaTac signals a significant transition. The decision is especially challenging because it raises the question of was the original intent and what were the original expectations for the interlocal agreement signed in 2002. And, more importantly, we now have to ask ourselves what sort of partnership we want to have in the future. Whether we move or not, this issue should be discussed and we should examine whether the interlocal agreement should be updated. Ideally, the future direction of SSVS and any changes to the interlocal agreement would have been worked out prior to selecting a location; however, time does not permit that approach. We inquired into a one year extension on our current location to enable the evaluation of the interlocal but the property owner was not interested. Since we are on a month -to -month tenancy we need to make the site location decision soon. Both locations are good sites. Both would work well. The 3100 Building offers greater potential for growth, especially for marketing the region. It offers an opportunity to show that Tukwila is committed to the partnership and ensures a stronger and longer term partnership by fulfilling SeaTac's need to have a visitor center. It raises questions of whether Tukwila will always be the administrator of the program and those questions may need to be addressed at some point in the future. The Tourism staff believes it will increase tourism revenues for Tukwila. The Tukwila Lodging Tax Advisory Committee (LTAC) prefers the 3100 Building location and voted in favor of moving on August 27, 2009. RECOMMENDATION: Staff recommends moving to the new location in the 3100 Building at 3100 South 176 Street in SeaTac, WA. Based on Council selection of a preferred alternative staff will return to Council with a proposed lease agreement for the preferred location. ATTACHMENTS: Draft Letter of Intent for the 3100 Building Photos Plotted Street Map Interlocal Agreement Estimated Moving Expenses July 30, 2009 Richard Davidson GVA Kidder Mattews 12886 Interurban Ave. South Seattle, WA 98168 RE: Letter of Intent Dear Katherine: 3100 South 176th Street Seatac, WA 98188 1. Landlord 2. Tenant 3. Trade Name: 4. Premises 5. Area 6. Use 7. Term 8. Options Cassan Enterprises, Inc. 2737 78`'' Ave SE, Suite 201 Mercer Island, Washington 98040 Seattle Southside Visitor Center (City of Tukwila) 14220 Interurban Ave. South 130 Seattle, WA 98168 Seattle Southside General office use. Five (5) years 9. Base Rent The Full Service Rent shall be: Months 1— 6 Months 7 —18 Months 19 66 DR 3100 South 176 Street, SeaTac, WA 98188 $0.00 psf /yr, Full Service $17.00 psf/yr, Full Service 3% annual increase 1 DOLLAR 'DEVELOPMENT 00. F T This letter shall serve as a non- binding Letter of Intent which sets forth the basic terms and conditions under which Dollar Development Co. "Landlord would consider entering into a lease with Seattle Southside "Tenant in the above referenced location "Office Building Estimated Square Footage: 1915 (office and reception area). Plus Load Factor (15 287 Total Rentable SF: 2202 Two (2) periods of five (5) years each. Rent during the option periods to be negotiated and Tenant to provide 180 days prior written notice. Rate shall be of fair market rent 10. Security Deposit 11. NNN Cam Charges: 12. Tenant Improvements: 13. Utilities Included in Full Service rent. 14. Lunchroom Area: 15. Signage 16. Parking DOLLAR DEVELOPMENT C 0. Upon Tenant's execution of the Lease, Tenant shall pay a security deposit in the amount of $5000.00 and total rent for one month. The lease shall be a full service lease with a 2009 Base Year. Electricity is included in the full service rent. Landlord shall provide Tenant with Tenant Improvements as outlined in exhibit "A" which shall include: A. 5 private offices B. 1 workroom C. 1 storage area D. 1 wall across the back of the reception area with a locking door /screen and a 1 way window E. 1 work area/cabinet along the back wall of the reception area for mailing area with lower and upper cabinets. F. Landlord shall install dishwasher and place a refrigerator in the common lunchroom area upstairs. Phone jack is already in place. G. Relites in all private offices. H. Phone room to be at existing location Tenant shall be allowed the use of the upstairs lunchroom area throughout the term of the lease at no charge along with other office Tenants. Tenant shall be allowed signage, subject to Tenant's compliance with all applicable governmental codes, regulations, and Landlord's approval. Signage and LCD/Plasma type screens above the reception area. Exterior signage above the south door and on the west facing wall of the building. All signage to be approved by Landlord. Tenant shall have the use of six (6) parking stalls in common with other tenants and an additional four (4) stalls that will be marked as visitor parking for Seattle Southside. Tenant may use additional parking as available after 6pm and on weekends. Landlord, at Landlord's discretion, may police the parking and may make adjustments to hours and availability as necessary. There shall be no less than four (4) visitor parking stalls. 17. Term Commencement The later of: substantial completion of improvements or September 1, 2009. 18. Maintenance: Landlord shall maintain, repair and replace all of the structural elements and exterior surfaces of the office building and the Premises, including but not limited to the roof, exterior walls, exterior glass, concrete slab, footings, electrical, and plumbing exterior to the Premises at Landlord's This offer shall expire on August 6, 2009, if not accepted by the Tenant. The Ietter of intent is intended solely as a preliminary expression of general intentions and is to be used for discussion purposes only. This letter of intent is not a lease for the property The parties intend that neither shall have any contractual obligations to the other with respect to the matters referred to in this letter of intent unless and until a definitive lease agreement has been fully executed and delivered by all of the necessary parties. The parties agree that this letter of intent is not intended and does not create any agreement or obligation by either party to negotiate a definitive lease agreement and does not impose any duty on either party to continue negotiations, including without limitation any obligation to negotiate in good faith or in any other way other than at arm's length. Prior to due execution and delivery of a definitive lease agreement, and without liability to the other party, either party may propose different terms from those summarized herein; enter into negotiations with other parties; and/or unilaterally terminate all negotiations. Agreed to by: 19. Assignability 20. Guarantor 21. Lease Form: 22. Broker's Commission: k, 0 ik, 1,;. sole expense. Tenant shall maintain, repair and replace the interior walls, interior ceiling, and doors of the Premises at Tenant's sole expense. No assignment or sublease will be allowed without the Landlord's prior written consent. Tenant shall provide financial statements for the principals of the incorporated entity and shall sign a personal guaranty. Landlord's lease form acceptable to Tenant shall be used for this Transaction. Both Parties acknowledge and agree that David Hall and Cleavon Steele of Fursse Hall Realty, Inc. represents the Landlord and Richard Davidson of GVA Kidder Matthews represents the tenant and represent that no other brokers are involved in this transaction. Landlord agrees to pay a leasing fee to Fursse Hall Realty, Inc. and a commission as per the listing agreement of which4% of the gross aggregate rent shall be paid to GVA Kidder Matthews. All parties acknowledge receipt of the pamphlet "Law of Real Estate Agency" and Tenant By 1 J r Its Date 34,7 Date DOLLAR DEVELOPMENT GO, DOLL AR DEVELOPMENT co. SO. SEATTLE VISITORS CENTER OPTION 1 1915 S.F. DATE 1 3100 BLUILDING 6/30/09 PRONE ROOM s sAeuxies 7.' BASE CABDETS V/ TOP E o CD i p N 221 XI t 11 n u 11 r ri rn 0 o i Ti N N r7 a 8'-0' 12' -0• COUNTER TQK� VDRK ROOM 0 m 0 Tl n m 0 1 n m N 'o O n n m 0 5' -6' tU' -6• 4' 0 N Southside Visitor Center Photos Southside Visitor Center Photos Southside Visitor Center Photos Southside Visitor Center Photos Southside Visitor Center Photos —77' ,a-....., S'777'. 1 ;W i; 1 th i; 'S 4 St ',..--:4->-_,-..,. 4 f /ill I.e.& 3 -7" hit., i 4 ,c1)----- 0, r.. -71-4,...--- t' -S. 1 4th- i, ai-- avy S i 'r ""Str Rr" l' i'',.--- 1 ,71 Pi F 1 ,i o ,'9 1 a> 4.8tif F"'• •1" 'St”" '7' h---;--7 1 ..1.7 7 IL' i 7,7- 1 '=S ii!,71111 -l bj.irie n ill v w,----cp4---1,-- --.1 SW-L ----f Stir:520---St ..c. •1 •••f. 71 j I il 17 tl 1Z, it I,' I, .Heights ,z__ _.1• 1 5 C t 7 CT 30[1 s,,, I. 1-4--Stinnyclale 7i 42;1' it ;t0) 77 k'J7'..3, t T\ -14 fir -=-17- ;kk -r 0 ;St. Lil !I li If 1 I \V, 1S 6t.h St 1 j '",i ko' A f f' __1 (1 2-d--- 1 11 '7 :j1 1 1 Five Cdeners ,Iti r w---t->-1.[ 1 -T-T-T1F-11 t fC i; il 'I 509 f L. up Sorirlgs,,Park Light Rail Route 9 II e 1, Route to SSVS Li l c Hotels 1 1 1, 1 f 1 1 fir 1 17 :1 ftr 1-5 Information Signs 0 e J..v. CP ,j /%1 Car Rentals 4 .1 Bus Route 174 Normandy Park City f I Park 509, co a) Within 2 miles access of 1-5 Within 1.5 miles acces of 518 .84 miles from Seatac International Airport .2 miles from Seatac Light Rail Station .2 miles from Metro bus 174 to downtown 3100 Building map A North Seatac P Park,Sonset .8----r1p8th- Crystal 11 (17 fr S i.poih sr Playfields 0, .ceitf fq cri 1 '166th 6 1C) 7. 93100 BuildingI_I I I d) I-- '"•I I- I I I I S1 82nd St 7 2--- -----7 Valley Ridge Park ,I pi I. I I.M I i y.ii S:1--St 6. 't,t, 17,1., h s N' (1) Angle Lake 6, Copyright 01988-2004 Microsoft Corp. and/or its iers. All rights reserved. http://www.microsoft.comrstreels/ 0 Copyright 2003 by Geographic Data Technology, Inc. All rights reserved.* 2004 NAVTEQ. 011 rights reserved. This data includes information taken with permission from Canadian authorities Her Majesty the Queen in Right of Canada. 11 2 5 4.-'-- 1 Seattle Southside 1 Foster u 54B ====l Fort Dent. —I Park i1 i 40 k- Westfieldl 4 ;1 i "A, St a ;iv: spy -r--f------",1 f■ ;L ndei 1 I i n'ts 1, L-. CD CL .1 CD 1 I c\. 0 a— St i '8 co Briscoe b Park CTS s 194th St 0 mi '1 1 Kent 3reir, 900 I 1 Longacres <61 I n p u a s r t k ri a I 70, 76 a> Renton :I_ (1 73p I d f I 1 1 1.5 2 2.5 INTERLOCAL AGREEMENT FOR TOURISM AND MARKETING SERVICES BETWEEN THE CITY OF TUKWILA AND THE CITY OF SEATAC This Interlocal Agreement, made and entered into this January,31 2002, by and between the City of Tukwila, a municipal corporation, hereinafter called Tukwila and the City of SeaTac, a municipal corporation, hereinafter called SeaTac. RECITALS WHEREAS, SeaTac desires to purchase professional tourism marketing services for the purpose of increasing awareness of SeaTac and the surrounding area as a tourist destination; WHEREAS, Tukwila is willing to expand the scope of its existing tourism and marketing services to include SeaTac; WHEREAS, it is agreed that the most desirable arrangement for conducting this operation is an Interlocal Agreement; NOW THEREFORE, for the reasons recited above, and in consideration of the mutual covenants contained in this agreement, the parties agree as follows: SECTION ONE. SCOPE AND DESCRIPTION SECTION TWO. CONTRIBUTIONS -D/3 Pursuant to Chapter 39.34 RCW, Tukwila and SeaTac agree to jointly provide Tourism and Marketing services for the combined cities beginning February 1, 2002. This Interlocal Agreement shall be conducted under the program title of Seattle's Southside Visitor Services (SSVS) from -a- place of service at 16400- Southcenter Parkway, -City, of Tukwila,- County of King, and State of Washington. Services include but are not limited to providing comprehensive visitor information services to tourists and facilitating input from area tourism businesses for the purpose of developing, implementing and evaluating an annual marketing and media plans. The marketing and media plans includes budget information, implementation schedule and evaluation strategies. Tukwila is designated as Administrator responsible for administering this joint agreement. Basic Operational Expenses: Tukwila and SeaTac will share basic operational expenses for the SSVS. The basic operational expenses shall be based on a valuation derived from the final Tukwila Tourism Marketing Budget. SeaTac's contribution for the first year's (eleven months) basic operational expenses is valued at ONE HUNDRED AND FOUR THOUSAND FIVE HUNDRED DOLLARS ($104,500) to be paid to Tukwila in eleven equal payments of NINE THOUSAND AND FIVE HUNDRED DOLLARS ($9,500). SeaTac will pay Tukwila at the beginning of each month beginning February 2002. The basic annual operational cost contribution for SeaTac for 2003 and subsequent years will be determined annually during ORLGNA the budget process. Joint Media Campaign: Tukwila will implement a mutually agreed upon annual media campaign. Tukwila and SeaTac will share media campaign expenses equally for the SSVS. SeaTac will reimburse Tukwila for 50% of all media campaign commitments for the duration of the Interlocal Agreement. Tukwila will invoice SeaTac 50% of actual media commitments incurred at the end of each month. Joint Special Projects: Tukwila will implement mutually agreed upon supplemental marketing activities (special projects). Tukwila and SeaTac will share special project expenses equally. SeaTac will reimburse Tukwila for 50% of all special project commitments for the duration of the Interlocal Agreement. Tukwila will keep expense records of all special projects (including but not limited to web site development, printed materials, professional creative services, and direct mail campaigns). Tukwila will invoice SeaTac 50% of actual special projects commitments incurred at the end of each month. SeaTac Specific Projects: SeaTac will implement SeaTac specific projects. SeaTac will manage and assume 100% financial responsibility for all SeaTac specific projects. At such time as SeaTac and Tukwila mutually agree, Tukwila may advise or assist SeaTac regarding SeaTac specific projects. SECTION THREE. CONDUCT OF INTERLOCAL AGREEMENT Tukwila shall have following responsibilities as administrator of this Interlocal Agreement. Tukwila will: (a) conduct, manage, operate, and arrange all the business affairs of the tourism and mar -keting_services, to -hire other-. employees- needed to- carry- -on- the- business,- determine- the wages and make contracts with the employees, enter into other contracts in the name of and for the SSVS, and in general do anything ordinarily done by the manager of a business (b) facilitate the involvement of SeaTac tourism businesses into the existing Tukwila Tourism Networking Committee and hereafter the committee will be known as Seattle's Southside Tourism Networking Committee for the purposes of creating awareness, support and participating in SSVS various marketing activities (c) regularly attend SeaTac's Hotel Motel Tax Advisory Committee meeting (d) coordinate joint SeaTac and Tukwila Lodging Tax Advisory Board meetings (at least but not limited to two times annually) (e) prepare and implement annually approved marketing and media plans by the Tukwila Lodging Tax Advisory Board and SeaTac Hotel Motel Tax Advisory Committee and the Tukwila and SeaTac City Councils. (f) prepare and submit quarterly outcome reports to the Tukwila Lodging Tax Advisory Board January 17, 2002 Page 2 and SeaTac Hotel Motel Tax Advisory Committee (g) select subcontractors and vendors (h) ascertain creative production (typed layouts, type specs, mechanical assembly) Such authority may be increased or decreased from time to time on mutual written agreement of the cities. SECTION FOUR. RECORDS AND ACCOUNTING Tukwila shall maintain or cause to be maintained books of accounts concerning the total operation of the Interlocal Agreement, in which books shall be entered, fully and accurately, each transaction pertaining to the Interlocal Agreement. All the books will be open at any reasonable time for inspection and examination by SeaTac. The fiscal year of the Interlocal Agreement shall commence on January 1 and close on December 31 of each year of operation. All accounting based on fiscal year figures shall be completed within 45 days after the close of the fiscal year. SECTION FIVE. TERM The effective date of the Interlocal Agreement shall be February 1, 2002, and this Interlocal Agreement shall continue in effect for a period of three years from that date. On or before April 30, 2004 the cities will determine if this Interlocal Agreement may be continued for another period of three years, or for such time as the parties may then see fit. SECTION SIX. TERMINATION OF INTERLOCAL AGREEMENT It is agreed that either SeaTac or Tukwila may terminate this Interlocal Agreement with 60 days notice prior to the beginning of each new calendar year, and such termination shall be in writing. However, the party initiating the termination shall be responsible for paying 50% of any remaining office lease obligation. The agreement can be terminated at any time provided both parties are in agreement on the terms of such termination. Tukwila maintains ownership of all SSVS capital assets at the termination of this Interlocal Agreement except any such assets purchased by SeaTac with its own funds. SECTION SEVEN. HOLD HARMLESS OF INTERLOCAL AGREEMENT Tukwila and SeaTac agree that each party shall defend, indemnify, and hold harmless the other party and its officers, officials, agents employees, and volunteers from any and all claims, January 17, 2002 Page 3 injuries, actions, damages, losses or suites including reasonable attorney's fees, which arise out of, are connected with, or due to any errors, omissions or negligent acts in the performance of this agreement, except for each party's own comparative negligence. In witness whereof, the parties have executed this Interlocal Agreement at the day and year first above written. CITY OF TUKWILA CITY OF SEATAC O r.0 IANAA 441C— Steve Mullet, Mayor Attest: abal 30.(tiL Red- City Clerk Approved as to Form: S1•‘ City Attorney January 17, 2002 Ja f Hol an, Acting City Manager Attest: 6 Judith L. Cary, City Clerk v Approved as to Form: Robert L. McAdams City Attorney Page 4 INTERLOCAL AGREEMENer FOR TOURISM AND MARKETING SERVICES BETWEEN THE CITY OF TUKWILA AND THE CITY OF SEATAC Pursuant to Section Five of the interlace! Agreement between the City of Tukwila and City of SeaTac, the parties agree to extend the Agreement beyond the three year expiration date of January 31, 2005, until terminated. CITY OF TUKWILA By: Steven Mullet Mayor Approved as to Form: APP'S d+- 19-a -F City of Tukwila Bob Baker, CMC Deputy City Clerk Administrative Services Department 206 433 -1854 6200 Southcenter Boulevard Tukwila. Washington 98188 -2544 Aik 02:0 3 Ca) 2izx Ok EXTENSION OF AGREEMENT LETTER OF INTENT CITY OF SEATAC By: ruce Rayburn City Manager Approved .as to Form: Jv e 0 4A-ti Mary Mira City Attorney v51 e COL mfa/ i r) to r Seattle Southside Office Space Estimated Moving Expenses Items neede End Tables Coffee Table Lobby Chairs Potted Plants Certified Kiosk 3 -D Logo Sign Outdoor Building Sign Sign Install Computers Stations Phones Head Sets Security Monitors Flat Screen TV Wall mount Exhibit Stands Spot Lighting Desk Chairs Stationary Re- design Stationary Printing Phone /Cable Install Lease Holdover Moving Cost Price Amount $400.00 2 $550.00 1 $800.00 3 $100.00 2 $0.00 2 $1,600.00 1 $3,000.00 2 $600.00 3 $1,000.00 3 $200.00 4 $250.00 2 $300.00 1 $1,200.00 1 $100.00 1 $500.00 4 $150.00 1 $200.00 4 $1,800.00 1 $3,200.00 1 $3,000.00 1 $1,500.00 2 $1,117.70 1 Grand Total $37,749.47 Sales Tax 10% Draft 9/3/09 Total $800.00 $550.00 $2,400.00 $200.00 $0.00 $1,600.00 Estimate $6,000.00 Estimate $1,800.00 Estimate $3,000.00 $800.00 $500.00 $300.00 $1,200.00 $100.00 $2,000.00 $150.00 $800.00 $1,800.00 $3,200.00 Estimate $3,000.00 $3,000.00 $1,117.70 Estimate $34,317.70 $3,431.77 Finance Safety Committee Minutes September 9, 2009 Paae 2 B. Seattle Southside Visitor Center Lease Staff is seeking full Council direction regarding a new office location. Seattle Southside Visitor Center's current lease ended on August 31, 2009 and is now continuing on a month -to -month basis. After a lengthy review of available office space locations, staff has selected the two best alternatives and is now seeking Council selection of a preferred alternative. Staff recommends moving the SSVS offices to a new location at 3100 South 176 Street, in SeaTac. Staff indicated that in 2002 Tukwila and the City of SeaTac entered into an Interlocal Agreement for joint tourism and marketing services for the combined cities under the program title Seattle Southside Visitors Services. The partnership between the two cities has been mutually beneficial, and SeaTac is committed to assisting SSVS with acquiring a new space that will benefit both cities. Jeff Robinson, City of SeaTac Economic Development Administrator, indicated at their Hotel -Motel Advisory Committee (HMAC) meeting, the Committee indicated they have authorized the expenditure of a not to exceed $50,000 for moving and tenant improvements, if SSVS were to acquire a new office location in SeaTac. Preserving the partnership between the two cities is the most important factor of the request. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 14 COW FOR DISCUSSION. C. Solid Waste Utility Tax Ordinance Staff is seeking full Council approval for a six percent solid waste utility tax on gross receipts of any solid waste and recycling activities within the City limits on commercial accounts. Residential accounts, defined as a single family residential structure, including mobile homes and duplexes, tri- plexes and four plexes, are not included. Condominium and apartment complexes are classified as a commercial account. The City is in need of increasing revenue and reducing expenditures in an attempt to address our current revenue shortfalls. The City currently taxes electricity, gas and telephone utilities at the maximum of six percent. The tax is also in recognition of the cost of maintenance of City streets given the nature of solid waste collection, the size and type of equipment used and the normal wear and tear on our streets by that equipment. In 2008, a survey was conducted by the Association of Washington Cities indicating over 140 cities tax solid waste at the six percent level. Staff has based their recommendation on the AWC Survey results. Current rates for a 6 -yard container are $57.37, with a six percent increase, the new rate would be $60.81, which equals an increase of $3.44 per month. A 6 -yard container is a common size used at multi- family complexes. The Committee reviewed and discussed the impacts to the rental population. The Committee was unanimous regarding the six percent utility tax and the Commercial Residential definitions. Committee Chair Linder requested the information relating to the amount of the increase per month is published in the next Hazelnut. UNANIMOUS APPROVAL. FORWARD TO SEPTEMBER 14 COW FOR DISCUSSION. D. New Checking Account. Shawn reviewed the history of the Finance Department's implementation of an armored car service several months ago with daily pickup and delivery to U.S. Bank, eliminating the need for Finance staff to drive to the bank each day. The Municipal Court utilizes Wells Fargo Bank for their banking. The current contract with the armored car service is for U.S. Bank. It was decided that the Court staff would drive their deposit to Wells Fargo daily, rather than contract with a separate armored car service, at an increased expense. The Municipal Court has now indicated they would like to change banks from Wells Fargo Bank to U.S. Bank effective October 1, 2009. The primary reason for this change is to enable the Court to take advantage of the armored car service currently that is being provided by Finance. INFORMATION ONLY.