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Home My WebLink AboutReg 2016-12-05 Item 6A - Lease Agreement - 2017-2018 Municipal Court Window Lease Agreement with Alliance One Receivables Management for $900 Per MonthCOUNCIL AGENDA SYNOPSIS --_ ..----------------------- - - - - -- Initials --------------------------------- I ITEMNO. Meeliq Date Pre aced by M r4-,ejv aataal review 12/05/16 CT ❑ Resolution Alt ,g Date ❑ Ordinance Alig Date ENdAward M g Date ❑ Public.Heaiin g Alt ,g Date [:] 0119er Alt ,g Dale SPONSOR ❑ Council N Mayor ❑ TJR ❑ DCD []Finance E]sire ❑ IT ❑ P&R ❑ Police E].PWI' SPONSOR'S The Alliance One Lease Agreement expires on December 31, 2016. Administration is SUMMARY proposing a two year lease agreement for January 1, 2017 - December 31, 2018 to coincide with the bienniel budget cycle and recommending a 3.33% increase in the monthly rent. REvii'.W-,'Ii) iiy ❑ COW Mtg. ❑ CA&P Cmte N F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/22/2016 COMMITTEE CI-LIUR: SEAL RECOMMENDATIONS: SPONSOR /ADMIN. Mayor's Office Comm"I"'E'l.," Unanimous Approval; Forward to 12/5/16 Regular Meeting COST IMPACT / FUND SOURCE EXPI-'INDITURf,'RI '-Q UMF 'D AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments.- MTG. DATE RECORD OF COUNCIL ACTION 12/05/16 74W, ISTiU-TSPONsoR: DAVID CLINE ORIGINA.1,A(.,,I?NI),\DA'I'.13: 12/05/16 A(',i ,'IN DA 1, rj,"m Ti'I'LE' Alliance One Lease Agreement CATEG,0RY ❑ Discussion Mig Date M Motion Aft ,g Date 121051M ❑ Resolution Alt ,g Date ❑ Ordinance Alig Date ENdAward M g Date ❑ Public.Heaiin g Alt ,g Date [:] 0119er Alt ,g Dale SPONSOR ❑ Council N Mayor ❑ TJR ❑ DCD []Finance E]sire ❑ IT ❑ P&R ❑ Police E].PWI' SPONSOR'S The Alliance One Lease Agreement expires on December 31, 2016. Administration is SUMMARY proposing a two year lease agreement for January 1, 2017 - December 31, 2018 to coincide with the bienniel budget cycle and recommending a 3.33% increase in the monthly rent. REvii'.W-,'Ii) iiy ❑ COW Mtg. ❑ CA&P Cmte N F&S Cmte ❑ Transportation Cmte ❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: 11/22/2016 COMMITTEE CI-LIUR: SEAL RECOMMENDATIONS: SPONSOR /ADMIN. Mayor's Office Comm"I"'E'l.," Unanimous Approval; Forward to 12/5/16 Regular Meeting COST IMPACT / FUND SOURCE EXPI-'INDITURf,'RI '-Q UMF 'D AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments.- MTG. DATE RECORD OF COUNCIL ACTION 12/05/16 MTG. DATE ATTACHMENTS 12/05/16 Informational Memorandum from David Cline dated 11/3/16 Draft Lease Agreement for 2017-2018 Minutes from the Finance and Safety Committee Meeting of 11/22/16 74W, 340 1r►ity 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: TukwilaWA.gov 341 342 sy City of Tukwila Agreement Number: 0 • /1 Southcenter Boulevard, Tukwila WA 98188 1 _FT" X NUT _ 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 ( "Premises "). 2. Term. This agreement shall be in full force and effect for a period commencing January 1, 2017 and ending December 31, 2018 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 Nine Hundred Dollars ($900.00) per month ( "Rental Payment "). The Rental Payment shall be submitted to Lessor on a monthly basis due by the 15`x' 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 15`h 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 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. Si na e. 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 3 343 aaw ^ 11 Agreement Numb - �tJ 4s City of Tukwila k n mggw� Z • /1 Southcenter Boulevard, Tukwila WA 98188 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 full force throughout the duration of the Agreement Commercial General Liability insurance with limits no less than $1,000,000 each occurrence, $2,000,000 general 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 liability arising from premises, operations, independent contractors, products- completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide the Aggregate Per Project Endorsement ISO form CG 25 03 11 8`5 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 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 344 Page 2 of 3 �►�a w City of Tukwila • 00 Southcenter Boulevard, Tukwila WA 98188 O 1908 Alliance One Receivables, Inc. Tricia Purcell, Client 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 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 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 , 2016 CITY OF TUKWILA ALLIANCE ONE RECEIVABLES, INC. Allen Ekberg, Mayor Harry Neerenberg, CFO ATTEST /AUTHENTICATED City Clerk Alliance One Lease Agreement APPROVED AS TO FORM City Attorney Page 3 of 3 345 346 Finance and Safety Committee Minutes ............................................................................ ............................... November22, 2016 D. Contract: Public Defender Services Staff is seeking approval of a contract with Kirshenbaum & Goss, Inc. P.S. for continued public defender services during the 2017 -2018 biennium. The proposed rate is unchanged at $32,600 per month. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 5, 2016 REGULAR CONSENT AGENDA. E. Lease Agreement: Alliance One Staff is seeking approval of a lease agreement with Alliance One Management Receivables in the amount of $900.00 per month, which is a 3.33 increase from the previous rent. Alliance One provides collection services for court fines and fees and manages long -term payment plans for customers. Councilmember Kruller noted that there has been a recent leadership change with Alliance One. The Committee requested the item move forward to the December 5 Regular Meeting with the request that the Court Administrator address the Council with any concerns. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 5, 2016 REGULAR MEETING. F. Statement of Intent: Regional Animal Services of King County Staff is seeking Council approval of a non - binding Statement of Intent to enter into an interlocal agreement with Regional Animal Services of King County ( RASKC) beginning January 1, 2018. The City's 2012 contract with RASKC included a two -year extension which was approved by the Council last year and expires on December 31, 2017. The existing contract is currently under review by representatives of each of the member cities and by King County, and proposed changes are summarized in the memo. The Cost allocation method of 80% service usage and 20% population will remain the same. Next steps will include County approval of a draft contract and Council review of the proposal by June 1, 2017. UNANIMOUS APPROVAL. FORWARD TO DECEMBER 5, 2016 REGULAR CONSENT AGENDA. G. 2016 3rd Quarter Financial Report Staff presented the Committee with the City's 2016 3 d Quarter Financial Report which captures the general state of financial affairs and highlights significant items and trends. For the period ending September 30, 2016, revenues are above allocated budget by $1.83 million and expenditures are below budget by $1.39 million. INFORMATION ONLY. III. MISCELLANEOUS Adjourned at 5:52 p.m. Next meeting: Tuesday, December 6, 2016 Committee Chair A +� p roval p Minutes by LH