HomeMy WebLinkAboutReg 2015-07-20 Item 5F - Lease Agreement - 1-Year Extension for Records Center Facility with International Gateway East (Sabey) for $5,880.04 per MonthCOUNCIL AGENDA SYNOPSIS
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Meeting Date Prepared by d Mayor's revie Council view
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07/20/15 BGM A I ✓\
ITEMNO.
5. F.
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STAFF SPONSOR: BOB GIBERSON
I ORIGINALAGENDAD,\'IT": 07/20/15
AGENDA Ii,i,,m Ti-ij,E Records Storage Facility Lease Extension for 1-Year
Amendment No. 3 with Sabey Corporation
CATEGORY [:] Difcuffion
Mtg Date
M Motion
Mt Date 07120115
F-1 Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ BidAward
Mtg Date
❑ Public Hearing
Mtg Date
E] Other
Mt Date
SPONSOR ❑ Council ❑ Major ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police E PWI
SPONSOR'S In 2009, Tukwila entered into a 5-year lease agreement with Sabey Corporation for rental
SUMMARY of 6,392 square feet of controlled indoor storage for City Clerk and Police Department
records. Amendment No. 1 included a renovation and Amendment No. 2 extended the
contract to May 31, 2015. Sabey has offered an additional 1-year lease extension through
May 31, 2016 with a reasonable increase in rent. Council is being asked to formally approve
the 1-year lease extension with Amendment No. 3 for the Records Storage Facility lease.
RiwIEWED BY ❑ cow Mtg. ❑ CA&P Cmtc ❑ F&S Cmtc ❑ Transportation Cmte
F-1 Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DATE: 07/07/15 COMMITTEE CHAIR: KATHY HOUGARDY
RECOMMENDATIONS:
SPONSOR/ADMIN. Public Works Department
CONIm"171"' Unanimous Approval; Forward to Regular Consent Agenda
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$86,017.76 in 2014 $96,000.00 $0.00
Fund Source: FACILITIES 000.13.518
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
07/20/15
MTG. DATE
ATTACHMENTS
07/20/15
Informational Memorandum dated 07/03/15
Amendment No. 3 to Warehouse Lease Ag No. 09-083
Minutes from the Finance & Safety Committee Meeting of 07/07/ 15
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City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
TO: Mayor Haggerton
Finance and Safety Committee
FROM: Bob Giberson, Public Works Director, °4A
DATE: July 3, 2015
SUBJECT: Record Storage Lease Extension
Amendment No. 3 to Agreement No. 09 -083
ISSUE
The Record Storage Facility lease agreement with the Sabey Corporation ( Sabey) needs to be
extended.
BACKGROUND
In May 2009, the City of Tukwila entered into a 5 -year lease agreement with Sabey for 6,392 rentable
square feet of safe, secure and humidity controlled indoor storage of City Clerk and Police
Department records storage.
In December 2011, the City of Tukwila entered into Amendment No. 1 to Agreement 09 -083,
amending the base lease to revise the square footage based on a separate renovation of the building
common space and a relocate restroom facility. On April 25, 2014, the City of Tukwila entered into
Amendment No. 2 for a 1 -year lease extension through May 31, 2015. Sabey has offered a 1 -year
lease extension through May 31, 2016 with optional extensions after that date.
ANALYSIS
The increased rent from $5,708.78 to $5,880.04 is reasonable based on similar increases for market
rate rents in the region.
The budget for this lease is in facilities. We hope to accommodate permanent document storage
needs in our future facility projects, such as the combined Public Works maintenance facility.
RECOMMENDATION
The Council is being asked to formally approve this 1 -year lease extension and authorize the Mayor to
sign the 1 -year lease amendment and to consider this item on the Consent agenda at the July 20, 2015
regular meeting.
Attachment: Proposed Lease Extension (Amendment No. 3)
w \pw eng\ other \bob giberson \correspondence \info memo - record storage lease renewal 7.31. 15.doex
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THIRD AMENDMENT TO THE WAREHOUSE LEASE AGREEMENT
This Third Amendment to the Warehouse Lease Agreement ( "Amendment ") is entered
into by and between International Gateway East LLC ( "Landlord "), as Landlord, and City of
Tukwila, ( "Tenant ") as Tenant, under that certain Warehouse Lease Agreement ( "Lease "), dated
May 4, 2009, as amended by that certain First Amendment to the Warehouse Lease Agreement
dated December 12, 2011, as amended by that certain Second Amendment to the Warehouse
Lease Agreement dated April 25th, 2014, between the parties hereto.
RECITALS
A. Landlord and Tenant desire to extend the Term of the Lease and revise Tenant's
Option to extend the Term of the Lease in accordance with the terms herein.
B. Except as may be expressly provided otherwise in this Amendment, capitalized
terms in this Amendment shall have the meaning given such terms in the Lease.
NOW, THEREFORE, in consideration of the mutual promises contained herein,
Landlord and Tenant agree as follows:
Amendments.
1.1 Section 1.8 Expiration Date is amended and restated in its entirety as follows:
"Expiration Date" means May 31, 2016, which is the date that is seven (7) years after the
Commencement Date, unless sooner terminated or extended in accordance with this Lease.
1.2 Section 1.9 Term is amended and restated in its entirety as follows:
"Term" means a period of seven (7) years, commencing on the Commencement Date and
terminating on the Expiration Date, unless sooner terminated or extended in accordance with this
Lease.
1.3 Section 1.10 Base Rent is amended and restated in its entirety as follows:
Base Rent for Suite 110 shall be payable by the following schedule:
Term
Base Rent/Month
06/01/09 — 05/31/10
$4,600.28
06/01/10 — 05/31/11
$4,988.25
06/01/11 — 05/31/12
$5,265.38
06/01/12 — 05/31/14
$5,542.50
1
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06/01/14
— 05/31/15
$5,708.78
06/01/15
— 05/31/16
$5,880.04
Base Rent shall be payable as provided in Section 4.
1.4 Section 3.6 Extension Option is amended and restated in its entirety as follows:
i) Upon expiration of the seven (7) years of the initial Term, the Term of the
Lease will automatically extend for successive twelve (12) month periods
(each, an "Option Term ") on the same terms and conditions as contained in
this Lease as are provided for in the initial Term, except as provided below in
Section 3.7.
ii) Either party may prevent the Term from extending to additional Option
Terms by providing the other party with written notice of intent not to renew
( "Non Renewal Notice ") more than ninety (90) days prior to the expiration of
the initial Term, or the current Option Term, as the case may be.
iii) The first Option Term commences upon the date of expiration of the initial
Term.
iv) Neither party has the right to revoke its Non - Renewal Notice once the notice
is delivered to the other party.
v) For the purposes of this Lease, "Term" means the initial Term and any Option
Term.
1.5 Section 3.7 Base Rent During Option Term is amended and restated in its
entirety as follows:
i) The Base Rent in respect to each Option Term increases two percent (2 %)
from the Base Rent payable under the immediately prior period under this
Lease.
ii) The adjusted Base Rent commences on and is payable on the first day of each
Option Term.
2. Entire Amendment. This Amendment sets forth the entire agreement of the parties with
respect to the subject matter set forth herein and may not be modified other than by an agreement
in writing signed by the parties hereto or their respective successors and interests.
3. Acknowledgement. _ The parties hereto each acknowledge that as expressly modified by
this Amendment, all the terms and conditions of the Lease remain unchanged and are in full force
and effect and enforceable in accordance with their terms. In the event of a conflict between the
Lease and this Amendment, the terms and provisions of this Amendment shall control.
4. Execution. This Amendment may be executed in several counterparts and all so executed
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shall constitute one Amendment, binding on all the parties hereto even though all the parties are
not signatories to the original or the same counterpart. Delivery of a facsimile or other copy of
this Amendment has the same effect as delivery of an original.
5. Lender's Consent. The effectiveness of this Amendment is conditioned upon Landlord
receiving the consent of its lender.
DATED this day of '2015.
TENANT:
CITY OF TUKWILA
By:
Its:
LANDLORD:
INTERNATIONAL GATEWAY EAST LLC,
by Sabey Corporation, Manager
By:
Its: Senior VP, Finance
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STATE OF WASHINGTON)
) ss.
COUNTY OF KING )
On this day of , 2015, before me, the undersigned, a Notary
Public in and for the State of Washington, duly commissioned and sworn as such, personally
appeared , to me known to be the
of CITY OF TUKWILA, a municipality that executed the within and foregoing instrument, and
acknowledged the said instrument to be the free and voluntary act and deed of said corporation
for the uses and purposes therein mentioned, and on oath stated that he /she was authorized to
execute said instrument.
WITNESS my hand and official seal the day and year in this certificate first above written.
Printed Name:
NOTARY PUBLIC in and for the State of
Washington, residing at
My commission expires:
STATE OF WASHINGTON)
) ss.
COUNTY OF KING )
On this day of , 2015, before me, the undersigned, a Notary
Public in and for the State of Washington, duly commissioned and sworn as such, personally
appeared Patricia A. Sewell, to me known to be the Senior VP, Finance, of Sabey Corporation,
Manager of INTERNATIONAL GATEWAY EAST LLC, the corporation that executed the
within and foregoing instrument, and acknowledged the said instrument to be the free and
voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on
oath stated that she was authorized to execute said instrument.
WITNESS my hand and official seal the day and year in this certificate first above written.
Printed Name:
NOTARY PUBLIC in and for the State of
Washington, residing at
My commission expires:
4
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City of Tukwila
• Finance and Safety Committee
FINANCE AND SAFETY COMMITTEE
Meeting Minutes
July 7, 2015 — 5:30 p.m.; Hazelnut Conference Room
PRESENT
Councilmembers: De'Sean Quinn, Acting Chair; Joe Duffie, Kate Kruller (Absent: Kathy Hougardy)
Staff: Peggy McCarthy, Rick Mitchell, Adam Balcom, Bob Giberson, Chris Flores, Laurel
Humphrey
CALL TO ORDER:
Acting Chair Quinn called the meeting to order at 5:30 p.m.
I. PRESENTATIONS No presentations.
II. BUSINESS AGENDA
A. Interlocal Agreement: Mobile ID Fingerprint Device
The Police Department is seeking Council approval of an interlocal agreement with King
County for the use of portable mobile ID fingerprint devices. King County Automated
Fingerprint Identification System (AFIS) is a voter - approved regional provider of fingerprint
identification services relied upon in the County criminal justice system. The portable
MobilelD device is a new tool used by street officers to identify suspects more efficiently.
Tukwila police have pilot tested two MobilelD devices since January 2014 and are very
pleased with the results. This agreement outlines the terms under which AFIS devices will
be used and maintained in Tukwila, and the MobilelD devices are provided by the County
free of charge under these terms. Training is also provided. The Committee requested that
the informational memo be revised to include more detail regarding the levy and its timeline
as well as any pertinent changes to the draft ILA. UNANIMOUS APPROVAL. FORWARD
TO JULY 13, 2015 COMMITTEE OF THE WHOLE.
B. Purchase of Thermal Imaging Cameras for Fire Department
The Fire Department is seeking Council approval to purchase 11 thermal imaging cameras
for a total cost of $62,578.10. All existing cameras are scheduled to be replaced in 2015 and
$72,000.00 was included in the 2015 -2016 department budget already approved by the
Council. Since the budget was adopted a team was convened to research and make a
recommendation on the specific model to be purchased. The Committee requested a photo
of the unit be included in the packet for full Council review. UNANIMOUS APPROVAL.
FORWARD TO JULY 20, 2015 REGULAR CONSENT AGENDA.
C. Lease Extension: Record Storage Facility Lease
Staff is seeking Council approval of a one -year extension to the Record Storage Facility lease
agreement (No. 09 -083) with the Sabey Corporation, expiring May 31, 2016 with optional
extensions thereafter. This lease agreement is for 6,392 square feet of safe, secure and
humidity controlled storage of City Clerk and Police Department records. Annual increases
to the rent were built into the base lease, and the rent of $5,880.04 for the extended year is
reasonable based on the previous rent schedule. UNANIMOUS APPROVAL. FORWARD
TO JULY 20, 2015 REGULAR CONSENT AGENDA.
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