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HomeMy WebLinkAboutCOW 2009-03-23 Item 4B - Lease Agreements - Record Storage with Sabey and Easy Up Storage SystemsCAS NUMBER: 09-037 AGENDA I I'EM TITLE CA IEGORY 1 SPONSOR SPONSOR'S SUMMARY EXPENDITURE REQUIRED $131,078.59 MTG. DATE 03/23/09 04/06/09 MTG. DATE 03/23/09 04/06/09 Meeting Date 03/23/09 04/06/09 COUNCIL AGENDA SYNOPSIS Prepared b J JM Initials ITEM INFORMATION Mayor's review Council review 1 ORIGINAL AGENDA DAI'L: MARCH 23, 2009 Record Storage Facility Lease with Sabey Corporation and Contract with Easy Up Storage Systems Discussion Motion Resolution Ordinance Bid Award Public Hearing Other Mtg Date 03/23/09 Mtg Date 04/06/09 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Council Mayor [l Adm Svcs n DCD Finance Fire (1 Legal P7'R Police PW This motion would approve a 5 -year lease with the Sabey Corporation for a record storage facility. The current record storage center is old, undersized and lacks adequate fire protection. A search for warehouse space was conducted and the most competitive was from Sabey Coporation. Council is being asked to approve the lease with Sabey Corporation and a contract with Easy Up Storage Systems for shelving relocation and installation. REVIEWED BY COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 01/21/09 and 02/03/09 RECOMMENDATIONS: SPONSOR /ADMIN. Public Works COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST IMPACT FUND SOURCE AMOUNT BUDGETED APPROPRIATION REQUIRED $1,186,000.00 Fund Source: 303 FACILITIES FUND (PAGE 81, 2009 CIP) Comments: Proposed lease is for 5 years, annual costs would average $83,000.00. RECORD OF COUNCIL ACTION ATTACHMENTS Informational Memorandum dated 03/18/09 Lease offer dated July 22, 2008 Easy Up Storage System Quote date February 18, 2009 Minutes from the Finance Safety Committee meeting of 02/03/09 Minutes from the Finance Safety Committee meeting of 01/21/09 ITEM No. L= TO: City of Tukwila INFORMATIONAL MEMORANDUM Mayor Haggerton Committee of the Whole FROM: Public Works Director DATE: March 18, 2009 SUBJECT: Record Storage Facility, Project No. 08 -BG06 Lease Agreement and Storage Shelving Contract ISSUE Jim Haggerton, Mayor Authorize the Mayor to sign a lease for a new record storage facility with Sabey Corporation; and authorize Mayor to sign a contract for storage shelving with Easy Up Storage Systems. BACKGROUND In November 2007, the City Clerk's Office expressed the need to obtain a larger records storage space than the current facility located at 12026 42 Avenue South (a former Fire Station). The existing facility provides records storage for all City departments and the Police Department. Currently the records storage facility holds 1,260 boxes of vital City records under the charge of the Clerk's Office. The City Clerk's Office receives an average of 81 more storage boxes annually than those purged, per the State Records Retention Schedule. in 2008, 211 boxes were archived at the Records Center and 121 boxes were purged. Continuing with this trend, the City Clerk's Office will not be able to accommodate the records needs of the City in 2009 and storage boxes will need to remain in their respective departmental work areas. As for the Police Department, their staff indicated the current available space should meet their storage needs until 2012. Due to the immediate and long -term need for additional storage space, staff surveyed available warehouse space within the City. Sabey Corporation was the most competitive with warehouse space at Intergate East Building 1, located at 3411 South 120 Place. The Sabey facility has a fire protection system, wherein there is no fire protection at the current records storage facility. The Sabey Corporation submitted a lease proposal of 6,651 square feet of warehouse with Options A and B (see attached lease offer). In brief, Option A is a 5 -year lease for $311,268 total rental cost including $105,000 worth of up -front tenant improvements. Option B is also a 5- year lease for $232,785 total rent, and includes only $33,255 tenant improvement allowance. For either Option, the annual operating cost for this storage facility is $18,290.25. Per Sabey's representatives, this lease offer is still valid today. ANALYSIS The net costs of Option A and B are relatively close. Option A costs slightly more than Option B, however, Option A provides the added benefit of cheaper tenant improvements than if improvements were accomplished by the City. Option B would require a designed set of plans and specifications for competitive bidding and prevailing wage construction contracting. The Option A lease for Year 1 is 6,651 square feet at $8.30 per square foot or $55,203.30 and INFORMATIONAL MEMO Page 2 operating costs are 6,651 x $2.75 or $18,290.25 (for a total of $11.05 per square foot). Years 4 and 5 costs go up to $12.75 per square foot. To support this leased record storage space, additional costs include moving and installing shelving, moving and installing the security alarm system, and installing a new interior chain link security fence with gates to separate City Clerk record storage from Police Department record storage. Staff solicited quotes from the Small Works Roster for fencing and received three bids, with the lowest from Owl Fencing of Enumclaw at $4,565.59. After further review of the fencing design, it is very likely that an additional 15 ft of fence with a 5 ft gate will be necessary to divide the garage door entry area between records areas. The additional fence cost is estimated at $2,200.00 for a total of $6,765.59. Quotes for the shelving and security were requested from the vendors that will move their systems currently in use at the current 42 Ave S records storage site. The security system quote from Alarm Center, Inc. is $2,082.50, including tax and contingency. The shelving quote from Easy Up Storage Systems is $48,736.95, including tax and 10% contingency. The security system and fence contracts are under $25,000 and will be routed to the Mayor directly for approval. In Year 1, the following costs would come out of the 303 fund: Option A Lease: 55,203.30 Annual Operating Costs 18,290.25 Shelving: 48,736.95 Fence: 6,765.59 Security: 2.082.50 TOTAL: $131.078.59 The Year 2 thru Year 5 lease and operating costs, averaging about $83,000 per year, would come out of the general fund. RECOMMENDATION Approve the 5 -year lease with Sabey Corporation and the contract with Easy Up Storage Systems in the amount of $48,736.95 for the Records Storage Facility and consider this at the March 23, 2009 Committee of the Whole meeting and the subsequent April 6, 2009 Regular meeting. attachments: Sabey Corporation lease offer dated July 22, 2008. Easy Up Storage quote P:\PROJECTS\A- BG Projects108 -BG06 Record Storage Rental FacilitylBudgeting PhaselRecord Storage Memo rev. 3.18.09 gl.doc July 22, 2008 Sent Via Email U.S. Mail Mr. Jim Morrow, P.E. imorrow (ccci.tukwila.wa.us City of Tukwila Public Works Director 6300 Southcenter Blvd. Tukwila, WA 98188 -2544 Dear Jim: Re: Lease of Warehouse space at Intergate.East SABEY CORPORATION appreciates the opportunity to present to The City of Tukwila "Tenant our proposal for leasing warehouse space at Intergate.East Building 1( "IGE 1"). The following are the key business terms, which if acceptable to Tenant, shall be the basis for a new lease agreement. 1.- BUILDING PARAMETERS Owner Profile: Landlord: Premises: Additional Space: Use of Space: Access: Building Security: SABEY CORPORATION, a Washington State company with over 35 years of experience and over 4 million square feet under ownership, will own and manage the property. A Limited Liability Company wholly owned by Sabey Corporation will be the direct owner of the property. International Gateway East LLC c/o Sabey Corporation. Landlord shall provide up to approximately 6,651 square feet in IGE's Building #1 pursuant to BOMA standards, as outlined on the attached floor plan. In the event the Tenant needs additional space, Landlord is willing to discuss additional alternatives to accommodate Tenant's space needs. General record storage space or other uses incident thereto. Tenant will have access 365 days a year, 24 hours a day, subject to Landlord's security protocols for the property and building. Landlord has a contract with a security provider to monitor the building and site after hours. Tenant shall have the right to install a cardkey and camera security system on Tenants space, at Tenant's cost, subject to Landlord's building protocols. Landlord is willing to discuss any additional security requirements Tenant might have. Parking: Landlord shall provide Tenant up to one (1) unassigned parking stall per 1,000 rented square foot leased. X CORPORATION IL ECONOMIC TERMS Term: Commencement: Option A: Rental Rate: Option B: Rental Rate: Tenant Improvements to Space: Tenant Improvements to Space: Five (5) years. October 1, 2008 or sooner or upon substantial completion of Tenant Improvements. Year 1: Year 2: Year 3: Years 4 -5: Year 1: Year 2: Year 3: Year 4: Year 5: 8.30 per square foot, per year, NNN. 9.00 per square foot, per year, NNN. 9.50 per square foot, per year, NNN. $10.00 per square foot, per year, NNN. In the event that a five (5) year lease is fully- executed Landlord will patch paint the entire premises, provide door locks, heat premises (no cooling), demo ceiling, provide lighting, install gas electrical meters, add new exterior lighting, sidewalk and exterior door, provide a small amount of electrical, and clean up flooring, per the attached space plan. The total estimated cost for completing all the work requested by Tenant is a total of $105,000. Tenant shall incur the cost of any additional alterations, improvements, and repairs including all wiring cabling for data and communications. 6.60 per square foot, per year, NNN. 6.80 per square foot, per year, NNN. 7.00 per square foot, per year, NNN. 7.20 per square foot, per year, NNN. 7.40 per square foot, per year, NNN. In the event that a five (5) year lease is fully- executed, Landlord will provide for a Tenant Improvement Allowance of up to $5.00 per rented square foot (or $33,255.00) to be used towards improvements, alterations and repairs, including any space planning or design costs, subject to Landlord's review and approval of the Working Drawings. Tenant shall incur the cost of any additional alterations, improvements, and repairs including all wiring cabling for data and communications. Security Deposit: A cash deposit equal to last month's rent will be required. Amount of additional security required, if any, to be determined upon Landlord's review of Tenant's current financial statements. Broker's Fee: 7 CORPORATION Operating Costs: III. OTHER PROVISIONS: Confidentiality: This Proposal does not create any legal rights or obligations to either party, but rather summarizes the key business terms of our offer. All of the legal rights and obligations of the parties will be set forth in the lease agreement. Please confirm that this Letter of Intent accurately sets forth your understanding of the key business terms by signing the enclosed copy of this Letter and returning it to me before July 31, 2008 Sincerely, SABEY CORPORATION, as agent for International Gateway East LLC Marcy A. Purdy Associate Vice President of Leasing Operating costs shall be passed through on a pro -rata basis and are currently estimated at $2.75 per rentable square foot, per year (which electricity will be separately metered). NNN Operating costs include the following services for a typical user: a. Real Estate Taxes b. Property Insurance c. Site, Building and Parking Lot Maintenance e. Standard Water Usage f. Standard Sewer Usage g. Building Site Security and Fire Monitoring i. Exterior Landscaping k. Property Management Each party hereto agrees to retain in confidence all information that is disclosed by the other party and is marked or otherwise identified as confidential at or near the time of discussion, including without limitation, the terms and conditions of this Letter of Intent. In addition, unless otherwise required by law, neither party shall make any press release or public announcement with respect to this Letter of Intent or the transactions completed hereby without prior consent of the other, which consent shall not be unreasonably withheld or delayed. The financial structure of this proposal is based on Landlord's and Tenant's desire to complete this transaction without the involvement of a third party Brokerage representation for either party. ACCEPTED AND APPROVED: CITY OF TUKWILA By: Its /Title: Date: cc: Mikel Hansen Ken Stickley SABEY CORPORATION, as agent for International Gateway East LLC By: Its /Title: Date: 9883 40 Ave South Seattle, WA 98118 Contractor License: ENGINPC931 CO Employment Security: 357076 00 6 Oregon Contractors License: 174426 Quotation: To: Mr. Peter Lau City of Tukwila 6300 Southcenter Blvd Tukwilla, WA 98188 RE: Archive shelving E ASYUP S TORAGE S YSTEMS REVISED Tel: (206) 394 -3330 Fax (206) 575 -6829 Federal ID# 22- 3949676 UBI 602-684-203 L &I 586,069 -04 Date: February 18, 2009 Page 1 of 2 We propose to furnish the equipment and or services described below based an acceptance of our General Terms and Conditions contained on the bottom of this quote. Easy Up Storage Systems will provide the following services as shown below. 1. We will dismantle the existing Easy Up shelving for the City Clerks (City) archive boxes, and the existing Police Department (Police) file storage that are now in the former fire station, package for shipment, and transport same to your new location at 3411 South 120 Place. The City file area currently has 35 shelving sections, the new plan calls for an additional 59 units. (see attached drawing) All units will be 8' tall, either 15" or 24" or 30" deep, and either 39" or 52" long, with 7 adjustable particle board shelf levels including the dust cover. (except transfer case units which will only have 6 levels) Prices include the trade in value of your existing 7' non seismic posts. All other existing material will be re -used. 2. We will re- assemble the existing City material as well as the additional units shown on the attached drawing. For the Police section, we will replace the existing 7' posts with 8' posts with seismic footplates to comply with current seismic requirements and re- assemble the units with 7 levels with the proper beams to support the loads. 13 sections will be provided for the Police transfer case files. The Police area now contains 14 sections, the new plan adds 53 additional units. (see attached drawing) Units will be 8' tall, either 15" or 30" deep, either 39" or 52" long, with 7 adjustable particle board shelves, including the dust cover. All existing material will be re -used_ All units will be anchored to the floor, and either have overhead earthquake bracing or will be secured in some way, per engineering direction. 3. Prior to the move and assembly, Easy Up will secure the necessary building permits for the construction of these shelving units. Our permit will attest to the structural integrity and installation of the system. Fire protection, ADA, special inspections, or any other issues that may arise as a result of this installation will The responsibility of the City of Tukwila. Storage and Material Handling SPecialists CONFIDENTIAL AND PROPRIETARY 1. Normal terms are cash or net 15 days with approved credit. 2. Materials are quoted FOS EasyUp, Tukwila, excluding any applicable taxes, unless otherwise specified: 3. Minimum order, $50.00. 4. A 25% Restocking fee is assessed for canceled orclers that have been pulled and return of normally stacked materials. 5. Special order product is non- retumable. 6. Quote is valid for 30 days. 7. Pricing for used material is based upon stock on hand at the tiro of quotation and is subject to change without notice. Easy Up o'.:. w Systems is a division of Engineered Products, a Pape Company Page 2 The drawings and subsequent layouts are best estimated from building information provided to date, and are subject to field inspection. Proposed layouts and structural engineering are subject to review and correction by the City of Tukwila. Pricing will be adjusted accordingly, of course. Your pre -tax price for the goods and services described above: City file area Take -down, move, re- install old and new units $21,433.00 Police area: Take -down, move, re- install old and new units $18,022.00 Combined engineering and permit processing: 1.500.00 (Actual City of Tukwila charges not included) TOTAL: $40,955.00 Thank you for the opportunity to be of assistance on this project. oger H. Stuessi, Sales Manager Easy Up Storage Systems Accepted by (206) 394 3331 Direct (206) 368 -0437 Fax Direct The: (206) 915 -9455 Cell roger @easyupusa.com Date: February 18, 2009 FINANCE AND SAFETY COMMITTEE Meeting Minutes February 3, 2009, 5:00 p.m.; Conference Room #3 City of Tukwila Finance and Safety Committee PRESENT Councilmembers: Pam Linder, Chair; Joe Duffle and De'Sean Quinn Staff: Shawn Hunstock, Jim Morrow, Barbara Saxton, Christy O'Flaherty, Mary Miotke, Lori Sutter, Rhonda Berry and Kimberly Matej Guests: Chuck Parrish CALL TO ORDER: Chair Linder called the meeting to order at 5:05 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. Amendments to Gambling Tax Ordinance: Charitable and Non Profit Oranizations Staff is seeking full Council approval of to amend the City's current Gambling Tax Ordinance No. 2150 to expand the definition of eligible non profit and charitable organizations. Currently, Ordinance No. 2150 waives the gambling tax for charitable and non profit organizations located within the City of Tukwila. The amendment will expand the eligibility requirements of charitable and non profits to include organizations that provide services to the Tukwila community, rather than limiting it to only those organizations located within City limits According to the amendment, the gambling tax is waivered when the non profit or charitable organization donates at least 70% of the tax due to charitable or non profits serving the City of Tukwila. Additionally, the amendment will reference Revised Code of Washington (RCW) 9.46.0209, the state legislature's definition of the term charitable nonprofit organization, which is currently not included in the Tukwila Municipal Code. The reference is recommend by the City Attorney and is intended to bring greater clarity to the term charitable nonprofit organization. Delay to full Council until representatives from Jaycees are able to attend a Committee meeting in which information as set forth in the ordinance amendment can be clarified. RETURN TO COMMITTEE AT A LATER DATE. B. Records Storage Facility Lease This item is returning to Committee from the January 20 Finance Safety Committee meeting. Staff is seeking full Council approval to enter into a lease contract with Sabey Corporation in an amount not to exceed $311,268 (terms to be negotiated) for a five -year lease of a record storage facility at Intergate.East Building 1 in Tukwila. Additional funding is requested in the amount of approximately $72,000 for shelving, fence and gates needed for the facility distributed as follows: $41,783 to Easyup Storage Systems for shelving work. Approximately $30,000 for fencing and gates, vendor to be determined. This leased facility will serve as the new location for the storage of City records. The current location at 12026 42n Avenue South is inadequate in storage capacity and lacks improved amenities such as fire protection. The new facility will allow for 24 -hour accessibility as well as the protected (i.e.: security and Finance Safety Committee Minutes February 3, 2009 Paae 2 fire) storage of vital City and Police Department records and evidence storage. Funding for the annual lease, shelving and fence costs will be taken from the City's 303 Fund. UNANIMOUS APPROVAL. FORWARD TO FEBRUARY 9 COW FOR DISCUSSION. C. Recommendation for Armored Car Service According to current Finance Department Policy, when an unbudgeted expenditure over $5,000 is going to be made, staff must bring the item forward to the respective Council Committee for approval prior to purchase. With that consideration, staff is seeking Committee approval to begin implementation of armored car service for delivery of daily City deposits. Armored car service will provide increased security and efficiency as well as reduce costs relative to the City's current method of employee delivered bank deposits. Annual armored car service for five locations (City Hall, Tukwila Community Center, Foster Golf Course, Tukwila Pool and Fire Station 51) will cost $16,808. It is expected that this unbudgeted amount for service will be absorbed through the existing operations budget for each effected department; however, funding may be considered during the budget's mid biennium adjustment period. UNANIMOUS COMMITTEE APPROVAL FOR IMPLEMENTATION. III. MISCELLANEOUS Meeting adjourned at 5:34 p.m. Next meeting: Tuesday, March 3, 2009 5:00 p.m. Conference Room #3 Committee Chair Approval Minutes by KAM. Reviewed by SH EB. FINANCE AND SAFETY COMMITTEE Meeting Minutes January 21, 2009, 5:00 p.m.; Conference Room #3 City of Tukwila Finance and Safety Committee PRESENT Councilmembers: Pam Linder, Chair; and De'Sean Quinn Absent: Joe Duffle Staff Shawn Hunstock, Jim Morrow, Barbara Saxton, Rebecca McGregor, Bob Giberson, Dave Haynes and Kimberly Matej Guests: Chuck Parrish CALL TO ORDER: Chair Linder called the meeting to order at 5:09 p.m. I. PRESENTATIONS No presentations. II. BUSINESS AGENDA A. A Resolution Establishing a City Clerk's Office Chance Fund Level Staff is seeking full Council approval of a resolution that will establish a change fund in the amount of $100.00 for the City Clerk's Office. The addition of the change fund is needed for implementation of a new cashiering system that will increase operational efficiency and improve customer service. This will require the repeal of Resolution No. 1664. UNANIMOUS APPROVAL. FORWARD TO JANURY 26 COW FOR DISCUSSION. B. Records Storaee Facility Rental Committee members expressed their knowledge of the City's need for a new records storage facility. Members are in agreement that there is a need to store these records in a safe, accurate and organized location. However, they have asked staff to make several changes to the informational memo presented at Committee and return at a later date for approval. Committee Chair Linder suggested that once the current records facility is vacated (old fire station located in Allentown) it might serve as a potential location for an artists' loft. RETURN TO FINANCE SAFETY COMMITTEE ON FEBRUARY 3, 2009. III. MISCELLANEOUS Meeting adjourned at 5:39 p.m. Next meeting: Tuesday, February 3, 2009 5:00 p.m. Conference Room #3 P s Committee Chair Approval Minutes by KAM.