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Home My WebLink AboutReg 2014-10-20 Item 4D - Lease Agreement - 2015-2016 Municipal Court Window Lease with Alliance One Receivables Management for $870.00 per MonthCOUNCIL AGENDA SYNOPSIS Medi tz,g Date Prepared by Mtiyorr review Council review 10/20/14 CT Resoluiion A N Date Ordinance Mg Dale — Bid Award ANDale Pahh° Hearing A/11,g Dale [ Other il/kg Date SP ( )N S( 1R Council Mayor HR E DCD E Finance ! ire IT 111 P&R Police SP ONSoR' S The Alliance One Lease Agreement expires on December 31, 2014. Administration is SUMMARY proposing a two year lease agreement for January 1, 2015 - December 31, 2016 to coincide with the biennial budget cycle and proposing a 5% increase in the monthly rent. RiNikwE 1 ' cow mtg, ] CA&P Cmte Utilities Cmte Arts Comm. DATE: 10/07/2014 g F & S Cmte Transportation Cmte Comm. Planning Comm. CHAIR: SEAL 11 Parks COMMITTEE RECOMMENDATIONS: Si )NS( Commi'llEl. Mayor's Office Unanimous Approval; Forward to Consent Agenda on 10/20/2014 ITEM INFORMATION ITEM No. 4.D. 11 STAFF SPONSOR: DAVID CLINE ORIGINAL AG KNDA A' E: 10/20/14 AGI,NDA mm Trri,i; Alliance One Lease Agreement Amendment — Discussion 11/N Dale kl Motion A'NI)ate 10/20/14 Resoluiion A N Date Ordinance Mg Dale — Bid Award ANDale Pahh° Hearing A/11,g Dale [ Other il/kg Date SP ( )N S( 1R Council Mayor HR E DCD E Finance ! ire IT 111 P&R Police SP ONSoR' S The Alliance One Lease Agreement expires on December 31, 2014. Administration is SUMMARY proposing a two year lease agreement for January 1, 2015 - December 31, 2016 to coincide with the biennial budget cycle and proposing a 5% increase in the monthly rent. RiNikwE 1 ' cow mtg, ] CA&P Cmte Utilities Cmte Arts Comm. DATE: 10/07/2014 g F & S Cmte Transportation Cmte Comm. Planning Comm. CHAIR: SEAL 11 Parks COMMITTEE RECOMMENDATIONS: Si )NS( Commi'llEl. Mayor's Office Unanimous Approval; Forward to Consent Agenda on 10/20/2014 COST IMPACT / FUND SOURCE ExPF;NDITuRF RkQuiRkr) AMOUNT BUDGE:11'D APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 10/20/14 MTG. DATE ATTACHMENTS 10/20/14 Informational Memorandum from David Cline dated 09/24/14 Draft Lease Agreement for 2015-2016 Minutes from the Finance and Safety Committee Meeting of 10/07/14 11 12 TO: 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 13 14 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 LEASE AGREEMENT Agreement Number: THIS LEASE AGREEMENT, 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 ("Preinises"). 2. Term. This agreement shall be in full force and effect for a period commencing January 1, 2015 and ending December 31, 2016 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 (S870.00) per month ("Rental Payinent"). 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 Lessor by the 1.5" 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 Preinises, included but not limited to computers, 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 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, Alliance One Lease Agreement Page 1 of 3 15 City of ��o� x^*xnwxxa 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: including attorneys' fees, arising from injury or death to per oos or damage to property occasioned by any act, omission or failure of Lessee, its officers, agents, employees, customers, and guests, in performing ihevvorkreguiredbythio&oreonnenL With respect to the performance of this Agreernent as to claims against l.eyyochsn8Uceo,ugentoundcnop]nyees.Leooee expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for i jories to its enup|oyeex, 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, ernployees, custorners, and guests. 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 $l,OOO,0OOeach 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 CG 00 01 and shall cover Iiability arising from premises, operations, independent contractors, products-completed operations, stop gap Iiability, personal injury 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 jectEodormemeotl8OforzoCG25O3 l\ 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 C{} 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. ||. 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 n[Tukwila Attention: Ci Clerk 6200 Southcenter Boulevard Tukwila WA 98188 Alliance One Lease Agreement Page 2 of 3 16 ��m of City vukwmva 6200 Southcenter Boulevard, Tukwila WA 98188 Notices to Lessee shall be sent to the foliowing address: Alliance One Receivables, Inc. Tricia Purcell, Clien Service Manager 6565 Kimball Drive, Suite 200 PO Box 2449 Gig Harbor WA 98335 Agreement Number: 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 amendrnent 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 terininate 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. W. 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 , 2014 CITY OF TUKWILA ALLIANCE ONE RECEIVABLES, INC. Jim Haggerton, Mayor Harry Neerenberg, CFO ATTEST/AUTHENTICATED APPROVED AS TO FORM City Clerk City Attorney Alliance One Lease Agreement Page 3 of 3 18 Finance & Safety Committee Minutes October 7, 2014 - Pape 2 D. Lease Agreement: Alliance One Staff is seeking Council approval of a lease agreement with Alliance One Management Receivables for a term of January 1, 2015 to December 31, 2016. Alliance One provides collection services and payment agreements for Municipal court fines and fees and has leased the space since 2009. This proposed agreement includes a 5% increase in the monthly rent, to $45.00 per month. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 20, 2014 REGULAR CONSENT AGENDA. E. Ordinance: Amending TMC 2.70.050, Public Defense Standards Staff is seeking Council approval of an ordinance that would amend Tukwila Municipal Code Chapter 2.70.050 to remove the statement that the City shall adopt and implement a case - weighting system on or before January 1, 2015. Since that language was added to the Code in 2013, further analysis led staff to decide against adoption of a case weighting system. It was determined that such a system would result in no impact to staffing requirements yet would require significant administrative work. In addition, Washington Cities Insurance Authority has notified municipalities that they do not recommend adoption of a case weighting system. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 20, 2014 REGULAR CONSENT AGENDA. F. Contract: Public Defender Services - Kirshenbaum & Goss, Inc. Staff is seeking Council approval to enter into a contract with Kirshenbaum and Goss, Inc. P.S. for public defender services during the 2015 -2016 biennium. Public Defense Standards delineating the number of cases each attorney can handle per year and mandating that compensation include administrative and training costs were adopted by the Washington State Supreme Court and become effective January 1, 2015. The federal court decision Wilbur v. Mt. Vernon also mandates significant changes to public defense programs and Administration has taken steps to ensure the City is in compliance. In order for the City to be in compliance with the new standards and the Wilbur v. Mt. Vernon mandates, the proposed contract includes a flat rate of $32,600 per month and $200 per day for Attorney of the Day services, providing the City with three dedicated attorneys plus support staff. The City has applied for grant funding from the Office of Public Defense and staff expects to learn the result shortly. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 13, 2014 COMMITTEE OF THE WHOLE. G. Contract: Legal Services - Kenyon Disend, LLC Staff is seeking Council approval to enter into a contract with Kenyon Disend, LLC for City Attorney services during the 2015 -2016 biennium. Under the current and proposed contracts, general City Attorney services are provided at a flat monthly rate. Litigation, contested administrative proceedings and other special services are subject to prior approval and billed at the hourly rates of the contractor staff involved. The 2015 -2016 proposal increases the flat rate to $39,318 per month, representing an increase of approximately 6% to account for cost of living adjustments, increases in billing rates, and increased prosecution services. Councilmember Hougardy asked for an explanation of the decision to contract for services rather than move City Attorney duties in- house. City Administrator David Cline asserted that the City considers this a cost - effective strategy because the contract includes the varying expertise of all attorneys at Kenyon Disend. With an in -house City Attorney, municipalities still must occasionally seek outside special expertise at an additional cost. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 20, 2014 REGULAR CONSENT AGENDA. 19