HomeMy WebLinkAboutReg 2013-12-02 Item 5D - Lease Agreement - 2014 Municipal Court Window Lease with Alliance One Receivables Management for $825 per MonthCOUNCIL AGENDA SYNOPSIS
Imtiais
Meeting Date
Prepared by
Ma ,or's review
Council raven)
12/02/13
CT
1 1 Resolution
AN Date
L Ordinance
Mig Date
1 1 Bid .42Pard
illigDate
Public Hearing
AkgDate
Other
Mig Date
SPONSOR — Council
r HR DCD Finance Fire 1 1 IT — P&R — Police — PW
Mayor
SPONSOR'S The Alliance One Lease Agreement expires on December 31, 2013. Administration is
SUMMARY proposing extending the lease through December 31, 2014 to coincide with the bienniel
budget cycle and proposing a 10% increase in the monthly rent.
REVIEWED BY — COW Mtg. CAM) Cmte
— ..
tilites Cmte 1 1 Arts Comm.
U i
DATE: 11/19/2013
F&S Cmte
Transportation Cmte
Comm. Planning Comm.
CHAIR: DENNIS ROBERTSON
Parks
COMMITTEE
ITEM INFORMATION
ITEM No.
5.D.
47
STAFF SPONSOR: DAVID CLINE
ORIGINAL AGENDA DATi.:: 12/02/13
AGENDA ITEM TITI,I Alliance One Lease Agreement Amendment
CxtEGoRy 1 1 Disaission
AN Date
z Motion
ilkgDate 12/2/13
1 1 Resolution
AN Date
L Ordinance
Mig Date
1 1 Bid .42Pard
illigDate
Public Hearing
AkgDate
Other
Mig Date
SPONSOR — Council
r HR DCD Finance Fire 1 1 IT — P&R — Police — PW
Mayor
SPONSOR'S The Alliance One Lease Agreement expires on December 31, 2013. Administration is
SUMMARY proposing extending the lease through December 31, 2014 to coincide with the bienniel
budget cycle and proposing a 10% increase in the monthly rent.
REVIEWED BY — COW Mtg. CAM) Cmte
— ..
tilites Cmte 1 1 Arts Comm.
U i
DATE: 11/19/2013
F&S Cmte
Transportation Cmte
Comm. Planning Comm.
CHAIR: DENNIS ROBERTSON
Parks
COMMITTEE
RECOMMENDATIONS:
SpoNsoR/ADmIN.
COMMITIEN,
Mayor's Office
Unanimous Approval; Forward to Consent Agenda on 12/02/2013
COST IMPACT / FUND SOURCE
EXPI,INDITURI REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$ $ $
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
12/02/13
MTG. DATE
ATTACHMENTS
12/02/13
Informational Memorandum dated 11/06/13
Copy of Lease Agreeement No.13-147 with Alliance One
Draft Amendment to Lease No. 13-147
Minutes from the Finance and Safety Committee Meeting of 11/19/13
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
CITY COUNCIL
FROM: David Cline, City Administrator fie
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
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50
Agreement Number: 13 -147
City of Tukwila Council Approval 8/5/13
6200 Southcenter Boulevard, Tukwila WA 98188
LEASE AGREEMENT
THIS LEASE AGREEMENT, dated .5 (d1 M4 J'DP.)-1, 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 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's 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. a nd 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
1 —�f a
51
City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
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
52
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 F3e-13-4-C..01.%-P)-)
CITY OF TUKWILA
ATTEST /AUTHENTICATED
.-,,f,
City Clerk
Alliance One Lease Agreement
U
,2013
ALLIANCE ONE RECEWABLE f, INC.
31111
1v rQ -Afz, CCU
APPROVED AS TO FORM J
ager
City Attorney
Page 3 of 3
53
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City of Tukwila
6200 Southcenter Boulevard, Tukwila WA 98188
Agreement Number:
LEASE AGREEMENT
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.
CITY OF TUKWILA ALLIANCE ONE MANAGEMENT RECEIVABLES, INC.
Jim Haggerton, Mayor
ATTEST /AUTHENTICATED
City Clerk
Harry Neerenberg, CFO
APPROVED AS TO FORM
City Attorney
Alliance One Management Receivables Inc. Amendment #1 Page 1 of 1
55
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Finance & Safety Committee Minutes November 19, 2013 — Page 3
E. Contract Amendment with Berk and Associates
Staff is seeking Council approval of an amendment to the contract with Berk and Associates for services
relating to Strategic Plan implementation. This amendment would extend the contract through 2014 and
will not exceed $65,000, funding for which will continue from the Mayor's Office 2013/2014 budget.
Project components include facilitated work sessions with City leadership and the development of action
oriented work plans. Berk has engaged in extensive work with the City thus far and has great
understanding of its unique strengths and challenges.
In response to questions and discussion from Committee members, staff confirmed that Berk does have a
role in public outreach and engagement efforts. After this contract renewal expires at the end of 2014, it is
reasonable to expect that Berk's primary relationship to the Strategic Plan implementation will end. Staff
noted that Brian Murphy's hourly rate will be corrected to $200 /hour in the budget on the second page of
the Scope of Work. This does not affect the dollar amount for the contract amendment. UNANIMOUS
APPROVAL. FORWARD TO DECEMBER 2 REGULAR CONSENT AGENDA.
F. Lease Agreement Amendment with Alliance One Receivables
Staff is seeking Council approval of an amendment to the lease agreement with Alliance One Receivables
Management, Inc. that would extend the lease through December 31, 2014 and increase the monthly rent
by 10% to $825. Committee members had no questions. UNANIMOUS APPROVAL. FORWARD TO
DECEMBER 2 REGULAR CONSENT AGENDA.
G. Council Review and Approval Process for Vouchers
At its September 17 meeting, the Committee requested staff return with information about the process and
legal standard for Council approval of vouchers. It has been the Council's practice for an individual
Councilmember, selected on a rotating basis, to review and sign off on vouchers prior to the full Council's
approval in a Regular meeting. The RCW and the State Auditor's BARS manual grants the governing
body the responsibility to "ensure that the system of auditing and certifying vouchers is operating in a
manner to provide the greatest possible protection for the governing body members and the municipality."
The City's current financial management system has numerous procedural checks and balances, including
review and approval by the initiating department director, the Accounts Payable Fiscal Specialist, the
Accounts Payable Fiscal Coordinator and the Finance Director. The level of review provided by the
Council is a matter of judgment and confidence placed in the existing controls of the financial management
system. The City's procurement policy and procedures will be reviewed in 2014 and voucher approval
will be re- addressed then.
Further discussion by Committee members revealed that they like having the access and opportunity for
voucher review, but there is disparity between the detail of review provided by each of them. The
Committee asked Finance Director Peggy McCarthy to state her expectation of the individual Council
review. She mentioned that it is a learning opportunity for the Councilmember to learn fund numbers and
gain a general understanding of the City's expenditures. The reviewing Councilmember should understand
the nature of transactions, be comfortable with the business purposes of spending, be alert to large,
unusual, or sensitive items, and gain confidence that transactions are consistent with City policies.
The Committee asked the Council Analyst to work with staff to add similar language to the draft Council
Policy on Voucher Review that is scheduled to come before the Committee of the Whole on November 25.
A related issue regarding Council signoff on payroll expenditures will be further explored in 2014
INFORMATION ONLY.
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