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Home My WebLink AboutFS 2013-01-23 Item 2B - Lease Agreement - Municipal Court Window with Alliance OneT{]: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL �� nn�n��nnn�n��n n»��nm��~ o�n�~nmn��n�mn��n�n Mayor Haggerton FINANCE AND SAFETY COMMITTEE FROM: David Cline, City Administrator DATE: January 16, 2013 SUBJECT: Lease Agreement — Alliance One ISSUE The current Lease Agreement with Alliance One expired on December 31, 2012. The City has prepared a new Agreement for approval. BACKGROUND In April of 2009, the City executed a Lease Agreement with Alliance One Receivables Management, which provided the agency with counter space at Tukwila Municipal Court, in exchange for $500/month rent. The Lease was renewed in subsequent years, and the current rent amount is $750 per month. DISCUSSION At the time the original Lease was executed the City believed it was worthwhile to provide this space to Alliance One while monitoring the advantages and impacts this situation would create for the City and residents utilizing City Hall. In the past year, Alliance One has opened additional offices in Seattle and Kent. While it appears having Alliance One located in City Hall has provided an increase in payments made to Tukwila accounts, it has also increased the volume of traffic and vehicles, creating challenges for residents who need to utilize City Hall for a wide range of services (payment of utility bills, pet licenses, business license renewals, etc.). The main City Hall lobby has a large volume of Alliance One customers, waiting in a queue. The tenant has taken steps to improve the flow of foot traffic and reduce noise and disruptions but the City believes the negative impacts and image this activity creates does not offset the rent and other benefits. As a result, the proposed lease is for the period January 1, 2013 through June 30, 2013, and will provide notice to Alliance One that the City does not intend to extend the Lease beyond that time. The Lease may be terminated by either party upon 30 days written notice but the City will actually be providing 90-120 days advance notice. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda at the Regular City Council Meeting on February 4, 2013, for approva and authorization for execution by the Mayor. ATTACHMENTS Copy of Lease Agreement. 12 City of °�x� �� " u«ropmova G2OOSouthcenier Boulevard, Tukwila VVAQ8188 LEASE AGREEMENT Agreement Number: THIS LEASE AGREEMENT, dated , 2013 is made between the Tukwila Municipal Court ("the Court" or "Lessor") and Aliiance One Receivables Management, Inc. ("Alliance" or "Lessee"). IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: L. Premises. Lessor does hereby agree to lease to Lessee, upon the following terms and conditions, one (1) front counter workspace at the Tukwila Municipa Court located at 6200 Southcenter 2. Term. This agreement shall be in full force and effect for a period c 1, 2013 and ending June 30, 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 ("Renta Payment"). The Rental Payment shall be submitted to Lessor on a monthly basis due by the 15" 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 Lessorby the 15 th of each month at the rat of 12.84% of renta 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 82.29/t. 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 irnrnediately 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 ioternotconnections. 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. O. Assignment and Subletting. Lessee shall not assign this lease or subiet 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, defen and hold harmless Lessor, its officers, agents and employees, from and against auyuudo|iolaiom,losscmorliabUdv, including attorneys' fees, arising from injury or death to persons or damage to property CA: 2012 Page 1 of 3 City vt �=u � Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: occasioned by any act, ornission or failure of Lessee, its officers, agents and employees, in g the work required by this Agreement. With respect to the performance of this Agreement as to claims against Loxunz, its officers, agents and employees, Lessee expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for i jorics to its employees, and agrees that the obligation to indenunifv, 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 S1,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products-cornpleted 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 i jury and advertising i jury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Pr jcct 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-Cornpleted 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 autornatically 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 foliowing address: City of Tukwila Attention: City Clerk 6200 Southcenter Boulevard Tukwila WA 98188 CA: 2012 Page 2 of 3 14 City of w�x� x**kwx"a 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 B. 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 inc herein by reference and attached hereto shaU 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 nf 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 February, 20l3 CITY OF TUKWILA ALLIANCE ONE RECEIVABLES, INC. Jim Haggerton, ayor Tricia Purcell, Client Service Manager ATTEST/AUTHENTICATED APPROVED AS TO FORM City Clerk City Attorney CA: 2012 Page 3 of 3