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Home My WebLink AboutFS 2014-10-07 Item 2C - Lease Agreement - 2015-2016 Municipal Court Window Lease with Alliance One for $870 per MonthTO: City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM Mayor Haggerton Finance & Safety Committee FROM: David Cline, City Administrator DATE: September 24, 2014 SUBJECT: Alliance One Lease Agreement ISSUE The current lease agreement with Alliance One Management Receivables expires on December 31, 2014. 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 We are proposing a two-year lease agreement from January 1, 2015 — December 31, 2016 to coincide with the biennium budget cycle, as well as a 5% increase ($45/month) in the monthly rent. FINANCIAL IMPACT The 5% increase in rent means Alliance One would pay the City of Tukwila $870.00 a month to lease space in the court area. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda of the October 20, 2014 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Copy of Lease Agreement 17 18 �� City of � xuykwxvuo S2OOSouthoent*r Boulevard, Tukwila VVA08188 LEASE AGREEMENT Agreement Number: THIS LEASE AGREEMENT, is made between the City of Tukwila ("the City" or "Lessor") and Alliance One Receivables Management, Umo (-Alliance" or "Lessee"). IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: |. Premises. Lessor does hereby agree to lease to Lessee, upon the fotlowing terms and conditions, one (1) front counter workspace at the Tukwila Municipal Court located at 6200 Southcenter Blvd., Tukwila, Washington ("Premises"). 2. Term. This agreement shall be in full force and effect for a period cornrnencing January 1, 2015 and ending Decemher 31, 2016 uiiless soonerterrninated under the provisions hereinuftcr specified. 3. Rent. Lessee covenants and agre s to pay Lessor, at Lessor's address, without dedu tion or offset, rent of Seven Hundred Fifty Dollar ($B70.00) per month (^]{ent^|Puvnzeo('`). The Rental Payrnent shall be suhmitted to Lessor on a monthly basis due hy 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 l51hof each month u1 the rate o[l2.8496o[ 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 corresponding y modified in compliance with RCW 82.29A. 5. Use of Premises by Lessee. Lessee shall have exclusive use of the Prernises for payrnent 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 custorner r 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 arrnored car service, Monday through Friday, to transport deposits from the Premises. Lessee shall provide any equipment necessary for the prescribed use of the Pr udaex,inc|udcdhutnotiindtcdtwoonopu\em.fax/copy machines and telephones. Lessee shall be responsible for setting up and maintaining their own telephone and internet 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 HoId Harmless. Lessee shall indemnify, defend and hold harmless Lessor, its officers, agents and employees, from and against any and all claims, losses or liability, Alliance One Lease Agreement Page 1 of 3 City� ��" � ��x� Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: including attorneys' fees, arising from injury or dea h to persons or damage to property occasioned by any act, omission or failure of Lessee, its officers, agents, employees, customers, and guests, in performing the work required by this Agreement. With respect to the performance of this Agreement as to claims against Lcsxor, its oDGccrs, 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 reaolting from the sole negligence of the Lessor, its agents or employees. To the extent that any of the damages referenced by this p 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 ofthe negligence of Lessee, its officers, agents, ernployees, c ustorners, and guests. 10. Insurance. Lessee shall procure and maintain in full force throughout the duration ofthe Agreement Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 genera aggregate and $2,000,000 products-completed operations aggregate limit. Commercial General Liability insurance shall be written on ISO occurrence form CG0O0| and shall cover liabili arising from premises, operations, independent contractors, products-completed opera kno, stop gap liability, personal injury and advertising i jury, and liability assumed under an insured contra L The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO forrn 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 insuraiice shall automatically result in termination of this Agreement. |i Certificates of coverage as required by Paragraph A above shall be delivered to Lessor within fifteen (15) days of execution of this Agreement. Holding Over. Any holding over on the Premises after the termination of the terrn 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 terrns and conditions of this Lease Agreement. 12. Notices. Notices to Lessor sha | be sent to the following address: City ofTukwila Attention: Ci Clerk 6200 Southcenter Boulevard Tukwila WA 98188 Alliance One Lease Agreement Page 2 of 3 20 � of City ��x � mu«ouwxx«n 6200 Southcenter Boulevard, Tukwila WA 98188 Notices to Lessee shall be sent to the following address: Alliance Onc Receivables, Inc. Tricia Purcell, Client Service Manager 6565 Kimball Drive, Suite 200 PO Box 2449 Gig Harbor WA 98335 Agreement Number: 13. Effect of Invaliditv. If any provision of this Lease Agreernent or the application thereof to any person or circumstance shall to any extent be invalid, the rconaindc, 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 he valid and enforced to the fullest extent permitted by law. 14. Entire Agreement — Amendments. This printed Lcuoe/\grcenunt together with all exhibits expressly incorporated herein by reference and attached hereto shall constitute the whole agreement hetween 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 he 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 hy 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 CITY OF TUKWILA day of .20l4 Jim Haggerton, Mayor ATTEST/AUTHENTICATED City Clerk ALLIANCE ONE RECEIVABLES, INC. Harry Neerenberg, CFO APPROVED AS TO FORM City Attorney