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Home My WebLink AboutFS 2013-11-19 Item 2F - Contract Amendment - 2014 Municipal Court Window Lease Agreement with Alliance One ReceivablesTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton CITY COUNCIL FROM: David Cline, City Administrator DATE: November 6, 2013 SUBJECT: Alliance One Lease Agreement ISSUE The current lease agreement with Alliance One Management Receivables expires on December 31, 2013. BACKGROUND Alliance One is the company Tukwila Municipal Court contracts with to provide collection services for unpaid court fines and fees and also manages long-term payment plans for our customers not in collections. In May 2009, Alliance One began leasing space with the City of Tukwila. Per RCW 35A.11.010 and 35A.11.020 all lease agreements must go before City Council for authorization. DISCUSSION Per direction from the Council in August, 2013 Administration continued the lease agreement with Alliance One Management Receivables through December 31, 2013. We are proposing to extend the lease agreement through December 31, 2014, to coincide with the biennium budget cycle, as well as a 10% increase ($75/month) in the monthly rent as there has not been an increase since 2011. FINANCIAL IMPACT The 10% increase in rent for 2014 means Alliance One would pay the City of Tukwila $825.00 a month to lease space in the court area. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda of the December 2, 2013 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Copy of Contract 13-147, Draft of Proposed Amendment 83 84 City of Tukwila Agreement Number: 13 -147 Council Approval 8/5/13 6200 Southcenter Boulevard, Tukwila WA 98188 LEASE AGREEMENT THIS LEASE AGREEMENT, dated 5 5cp }GW ti'DON 2013 is made between the City of Tukwila ( "the City" or "Lessor ") and Alliance One Receivables Management, Inc. ( "Alliance" or "Lessee "). IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Premises. Lessor does hereby agree to lease to Lessee, upon the following terms and conditions, one (1) front counter workspace at the Tukwila Municipal Court located at 6200 Southcenter Blvd., Tukwila, Washington ( "Premises "). 2. Term. This agreement shall be in full force and effect for a period commencing July 1, 2013 and ending December 31, 2013 unless sooner terminated under the provisions hereinafter specified. 3. Rent. Lessee covenants and agrees to pay Lessor, at Lessor's address, without deduction or offset, rent of Seven Hundred Fifty Dollars ($750.00) per month ( "Rental Payment "). The Rental Payment shall be submitted to Lessor on a monthly basis due by the 15th day of each month. Any and all ancillary costs associated with Lessee's use of the Premises shall be borne by Lessee. 4. Leasehold Excise Tax. Lessee shall pay any leasehold excise tax due pursuant to RCW 82.29A to Lessor by the 15`" of each month at the rate of 12.84% of rental amount. The Leasehold Excise tax shall be paid in addition to the monthly rental payment. If the State of Washington changes the leasehold excise tax and another jurisdiction also imposes this tax, the tax payable by the Lessee shall be correspondingly modified in compliance with RCW 82.29A. 5. Use of Premises by Lessee. Lessee shall have exclusive use of the Premises for payment collection and shall provide their own personnel to staff the Premises between 8 :30 a.m. and 4:30 p.m. Monday through Friday. Lessee's personnel at the Premises shall provide customer service at a level satisfactory to the Lessor. Lessor reserves the right to immediately terminate this lease agreement should the Lessee's customer service levels fail to meet the standards Set by Lessor. 6. Utilities, Equipment and Services. Lessee shall provide daily armored car service, Monday through Friday, to transport deposits from the Premises. Lessee shall provide any equipment necessary for the prescribed use of the Premises, included but not limited to computers, fax/copy machines and telephones. Lessee shall be responsible for setting up and maintaining their own telephone and interne connections. 7. Signage. Lessee shall provide, at their own expense, signage to be placed at the Premises; all signage shall be pre- approved by Lessor before being posted on the Premises. 8. Assignment and Subletting. Lessee shall not assign this lease or sublet any portion of the Premises. Any sublease or assignment made in violation of this provision shall be void. 9. Indemnification and Hold Harmless. Lessee shall indemnify, defend and hold harmless Lessor, its officers, agents and employees, from and against any and all claims, losses or liability, including attorneys' fees, arising from injury or death to persons or damage to property occasioned by any act, omission or failure of Lessee, its officers, agents and employees, in Alliance One Lease Agreement Page 1 of 3 85 City of Tukwila Agreement Number: 6200 Southcenter Boulevard, Tukwila WA 98188 performing the work required by this Agreement. With respect to the performance of this Agreement as to claims against Lessor, its officers, agents and employees, Lessee expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to its employees, and agrees that the obligation to indemnify, defend and hold harmless provided for in this paragraph extends to any claim brought by or on behalf of any employee or Lessee. This waiver is mutually negotiated by the parties. This paragraph shall not apply to any damages resulting from the sole negligence of the Lessor, its agents or employees. To the extent that any of the damages referenced by this paragraph were caused by or resulted from the concurrent negligence of Lessor, its agents or employees, this obligation to indemnify, defend and hold harmless is valid and enforceable only to the extent of the negligence of Lessee, its officers, agents and employees. 10. Insurance. Lessee shall procure and maintain in full force throughout the duration of the Agreement Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products - completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products- completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 85 or an equivalent endorsement. There shall be no endorsement or modification of the Commercial General Liability Insurance for liability arising from explosion, collapse or underground property damage. The City shall be named as an insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the. City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured - Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing equivalent coverage and shall include a provision prohibiting cancellation or reduction in the amount of said policy except upon thirty (30) days prior written notice to Lessor. Cancellation of the required insurance shall automatically result in termination of this Agreement. Certificates of coverage as required by Paragraph A above shall be delivered to Lessor within fifteen (15) days of execution of this Agreement. 11. Holding Over. Any holding over on the Premises after the termination of the term of this lease shall be construed to be a tenancy from month -to -month with the same valuable consideration for rent being provided on a pro rata basis per month. Such holding over shall otherwise be on all the terms and conditions of this Lease Agreement. 12. Notices. Notices to Lessor shall be sent to the following address: City of Tukwila Attention: City Clerk 6200 Southcenter Boulevard Tukwila WA 98188 Alliance One Lease Agreement Page 2 of 3 86 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: Notices to Lessee shall be sent to the following address: Alliance One Receivables, Inc. Tricia Purcell, Client Service Manager 6565 Kimball Drive, Suite 200 PO Box 2449 Gig Harbor WA 98335 13. Effect of Invalidity. If any provision of this Lease Agreement or the application thereof to any person or circumstance shall to any extent be invalid, the remainder of this Lease. Agreement or the application of such provision to persons or circumstances other than those as to which it is held invalid shall not be affected thereby and each provision of this Lease Agreement shall be valid and enforced to the fullest extent permitted by law. 14. Entire Agreement — Amendments. This printed Lease Agreement together with all exhibits expressly incorporated herein by reference and attached hereto shall constitute the whole agreement between the parties. There are no terms, obligations, covenants or conditions other than those contained herein. Except as otherwise provided, no modification or amendment of this Lease Agreement shall be valid or effective unless evidenced by an agreement in writing signed by both parties. 15. Termination. Lessor or Lessee may terminate this lease at any time on or before the expiration of the lease term upon thirty (30) days prior written notice to the other. party. 16. Applicable Law — Venue: Attorney's Fees. This Agreement shall be . governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding s instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorneys' fees and costs of suit. DATED this day of %- f `" WLb-Pl CITY OF TUKWILA ATTEST /AUTHENTICATED Alliance One Lease Agreement , 2013 1 \MngL ' I ALLIANCE ONE RECEIVABLEI, IN7C. ager t\rri N APPROVED AS TO FORM J 1 City Attorney Page 3 of 3 87 88 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: CONTRACT FOR SERVICES Amendment #1 Between the City of Tukwila and Alliance One Receivables Management, Inc. That portion of Contract No. 13 -147 between the City of Tukwila and Alliance One Receivables Management, Inc. is amended as follows: Section 2: Term. This agreement shall be in full force and effect for a period commencing January 1, 2014 and ending December 31, 2014 unless sooner terminated under the provisions specified in Contract 13 -147. Section 3: Rent. Lessee covenants and agrees to pay Lessor, at Lessor's address, without deduction or offset, rent of Eight Hundred Twenty -Five Dollars ($825.00) per month ( "Rental Payment "). The Rental Payment shall be submitted to Lessor on a monthly basis due by the 15th day of each month. Any and all ancillary costs associated with Lessee's use of the Premises shall be borne by Lessee. All other provisions of the contract shall remain in full force and effect. Dated this day of , 2013. ALLIANCE ONE MANAGEMENT RECEIVABLES, INC. CITY OF TUKWILA Jim Haggerton, Mayor Harry Neerenberg, CFO ATTEST /AUTHENTICATED APPROVED AS TO FORM City Clerk City Attorney Alliance One Management Receivables Inc. Amendment #1 Page 1 of 1 89