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Home My WebLink AboutFS 2016-11-22 Item 2E - Lease Agreement - 2017-2018 Municipal Court Window with Alliance One Management ReceivablesCity of Tukwila Allan Ekberg, Mayor Mayor's Office - David Cline, City Administrator TO: Mayor Ekberg Finance & Safety Committee FROM: David Cline, City Administrator DATE: November 3, 2016 SUBJECT: Alliance One Lease Agreement ISSUE The current lease agreement with Alliance One Management Receivables expires on December 31, 2016. BACKGROUND Alliance One is the company Tukwila Municipal Court contracts with to provide collection services for unpaid court fines and fees and manages long -term payment plans for court 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, 2017 - December 31, 2018 to coincide with the biennium budget cycle, as well as a 3.33% increase ($30 /month) in the monthly rent. FINANCIAL IMPACT The 3.33% increase in rent for means Alliance One would pay the City of Tukwila $900.00 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 5, 2016 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Draft Lease Agreement for 2017 -2018 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206 - 433 -1800 • Website: Tukwila WA.gov 71 72 �J lzo City of Tukwila Agreement Number: IL 6200 Southcenter Boulevard, Tukwila WA 98188 �9oa LEASE AGREEMENT 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: 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 "). Term. This agreement shall be in full force and ending December 31, 2018 unless sooner termin Rent. Lessee covenants and agrees to pay Lessor, rent of Nine Hundred Dollars ($900.00) per montl submitted to Lessor on a monthly basis due by the associated with Lessee's use of the Premises shall 4. Leasehold Excise Tax. Lessee shall p, Lessor by the 15th of each month at the shall be paid in addition to the monthly leasehold excise tax and another jurisdi be corresnondinaly modified in comDE the at Lessor's address, wit ( "Rental Payment "). T 15th day of each month. )e borne by Lessee. -ncing January 1, 2017 and hereinafter specified. deduction or offset, -ntal Payment shall be and all ancillary costs 1 excise tax due pursuant to RCW 82.29A to of rental amount. The Leasehold Excise tax . If the State of Washington changes the ses this tax, the tax payable by the Lessee shall M. 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 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 internet connections. 7. Sianne. 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. 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 Alliance One Lease Agreement Page 1 of 3 73 CK ILA W4 • ' • - • - 40 � L . 11 • :• • •i S: ,4 )0 1905 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, employees, customers, and guests, in 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, employees, customers, and guests. 10. Insurance. Lessee shall procure and maintain in Agreement Commercial General Liability insurai occurrence, $2,000,000 general aggregate and $2 limit. Commercial General Liability insurance sl shall cover liability arising from premises, operat operations, stop gap liability, personal injury and insured contract. The Commercial General Liabi Aggregate Per Project Endorsement ISC shall be no endorsement or modification arising from explosion, collapse or unde insured under the Contractor's Commen performed for the City using ISO Additi Insured- Completed Operations endorser equivalent coverage and shall include a of said bolicv]]excent upon thirty (30) da full force throughout the duration of the ce with limits no less than $1,000,000 each 000,000 products - completed operations aggregate all be written on ISO occurrence form CG 00 01 and ons, independent contractors, products- completed advertising injury, and liability' assumed under an ity insurance shall be endorsed to provide the 25 03 1185 or an equivalent endorsement. There wamercial General Liability Insurance for liability roperty damage. The City shall be named as an -al Liability insurance policy with respect to the work -ed endorsement CG 20 10 10 01 and Additional ;0 37 10 01 or substitute endorsements providing prohibiting cancellation or reduction in the amount mitten 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 Notices to Lessee shall be sent to the following address: Alliance One Lease Agreement 74 Page 2 of 3 City of Tukwila Agreement . - 6200 Southcenter Boulevard, 98188 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 parry. 16. WI accordance with the laws of the S proceeding s instituted to enforce agree that venue shall be properly action shall be entitled to its attor,, DATED this day of CITY OF TUKWILA Allen Ekberg, Mayor ATTEST /AUTHENTICATED City Clerk Alliance One Lease Agreement V's fees. This Agreement shall be governed by and construed in of Washington. In the event any suit, arbitration, or other y term of this Agreement, the parties specifically understand and id in King County, Washington. The prevailing parry in any such is' fees and costs of suit. , 2016 ALLIANCE ONE RECEIVABLES, INC. Harry Neerenberg, CFO APPROVED AS TO FORM City Attorney Page 3 of 3 75