HomeMy WebLinkAboutReg 2018-10-01 Item 4C - Lease Agreement - Kennedy's Cottage for Transitional HousingCOUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
ITEM No.
4.C.
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STAFF SpoNsoR: STACY HANSEN
ORIGINAL AGINDA DATE: 10/01/18
AGF:NDA Imm ' ITU: KENNEDY'S COTTAGE LEASE RENEWAL
C v tEGoio' E Discussion
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a Motion
AftgDate 10/01/18
E Resolution
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I Ordinance
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Bid Award
Mtg Date
J Public Flearing
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: i'c )Ns()it's Kennedy's Cottage is one of three city owned houses that is leased to non-proift Way Back
StimmARy Inn. The City has traditionally signed a 5-year lease with WBI on these properties to
provide temporary housing to Tukwila families experiencing homelessness. Kennedy's
Cottage will expire October 2018 and we are asking Council to approve another lease
ending December 31, 2022.
RFA'll'WI'l NV E C.O.W. Mtg.
E Trans &lnfrastructurc
DATE: 9-25-18
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CDN Comm E Finance Comm. Public Safety Comm.
Arts Comm. E Parks Comm. E Planning Comm.
COMMITTEE CHAIR: KRULLER
RECOMMENDATIONS:
SPoNsoR/AimtIN. Mayor's Office/Community Services and Engagement
CommITIEN Forward to Regular Council Consent
COST IMPACT / FUND SOURCE
EximiNDITuiwRKQUIRIA) AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
10/01/
MTG. DATE
ATTACHMENTS
10/01/
Informational Memorandum dated 9-17-18 (lease updated after CDN Committee)
Kennedy's Cottage Lease
Minutes from the 9/25 CDN Committee meeting
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City of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Community Development and Neighborhoods
FROM: Stacy Hansen, Human Services Program Coordinator
CC: Mayor Ekberg
DATE: September 13, 2018
SUBJECT: Kennedy's Cottage Lease renewal
ISSUE
The 5-year property lease on Kennedy's Cottage is expiring October 1, 2018.
BACKGROUND
Kennedy's Cottage is a City owned home that is on undevelopable land. The non-profit, Way
Back Inn, provides 90+ days of temporary shelter/transitional housing to Tukwila families
experiencing homelessness. Traditionally a 5-year lease, staff is requesting the lease time
frame be extended from October 1, 2018 until December 31, 2022. These three additional
months will allow the next renewal cycle to be consistent with Gregor House (another City
owned, Way Back Inn managed property).
DISCUSSION
Staff is asking Council to extend the lease on Kennedy's Cottage for another 5-year lease
agreement with the Way Back Inn. With this partnership, WBI volunteers clean and maintain
the homes, provide weekly supportive case management meetings with resident families.
Through our WBI partnership, Kennedy's Cottage provides roughly 1,300 bed nights annually to
families experiencing homelessness.
FINANCIAL IMPACT
There is no financial impact.
RECOMMENDATION
The Council is being asked to approve the lease agreement and consider forwarding this item to
the October 1, 2018 Regular Council meeting consent agenda.
ATTACHMENTS
Kennedy's Cottage lease agreement.
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RESIDENTIAL LEASE AGREEMENT
Kennedy's Cottage
THIS AGREEMENT is made on October 1, 2018, between the City of Tukwila, a
Washington municipal corporation, as "Lessor," and the Way Back Inn, a Washington
non-profit, as "Lessee" (collectively, the "Parties").
WHEREAS, homelessness continues to be an issue for residents of the City of
Tukwila and the greater community at large; and
WHEREAS, Lessor, a Washington municipal corporation, has determined that
the provision of transitional housing to homeless and impoverished members of the
community serves a fundamental governmental purpose as it protects the public health,
safety, and welfare; and
WHEREAS, Lessee is a Washington non-profit corporation that provides
temporary and transitional housing to the homeless;
NOW, THEREFORE, the Parties agree as follows:
1 PREMISES: Lessor shall lease to Lessee the residence currently situated at 15421
42nd Ave. South, Tukwila, Washington ("Premises").
2. TERM: The term of this lease shall be for five (5) years, commenceing on October 1,
2018, and shall terminate on December 31, 2022 in accordance with the termination
provisions set forth in paragraph 19, unless sooner terminated as a result of
Lessee's default hereunder. The Lessor reserves the right to terminate the lease
prior to the completion of the one-year term at any time for any reason with ninety
(90) days' notice.
3 POSSESSION: Lessee shall be deemed to have accepted possession of the leased
premises in an "as -is" condition. Lessor has made no representations to Lessee
respecting the condition of the lease premises.
4. CONSIDERATION: In consideration of Lessee providing housing to homeless
members of the Tukwila community, Lessee may occupy the leased premises rent
free for the duration of this Lease; provided, Lessee shall make any and all
necessary improvements to the Premises, including the residence located thereon,
at Lessee's sole expense. Such improvements shall not be commenced without the
express written consent of Lessor and shall be subject to final inspection and the
approval of the Lessor. Further, Lessee shall pay all costs associated with or arising
out of the maintenance and operation of the leased Premises as set forth herein.
5. USE: Lessee shall use the leased premises to provide free, temporary single-family
dwellings for homeless families with children whose income falls below 50% of the
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King County median household income, and all current uses incidental thereto,
and for no other purpose without first obtaining Lessor's prior written consent.
Families housed by Lessee at Lessee shall screen all housing applicants to ensure
that applicants meet the income qualifications set forth herein. Lessee shall provide
Lessor with an annual report each year reflecting data regarding the populations
served by Lessee at the Premises.
6. LESSEE MAINTENANCE AND REPAIR RESPONSILIBITY: Lessee shall, when
and if needed, at Lessee's sole expense, make any and all necessary repairs to the
leased premises and every part thereof. Lessee shall maintain the leased Premises
in neat, clean, sanitary condition. Lessee shall surrender the leased Premises to
Lessor in good condition upon the termination of this lease, reasonable wear and
tear expected.
7. UTILITIES: Lessee shall pay prior to delinquency for all heat, light, water, and
other utility services supplied to the leased premises.
8. ALTERATIONS AND ADDITIONS BY LESSEE: After obtaining the prior consent
of Lessor, Lessee may make, at its sole expense, such additional improvements or
alterations to the leased premises, which it may deem necessary or desirable. Any
repairs or new construction by Lessee shall be done in conformity with plans and
specifications approved by Lessor. All work performed shall be done in a
workmanlike manner and shall become the property of the Lessor.
9. LIENS: Lessee shall keep the leased premises free from any liens arising out of any
work performed, materials furnished, or obligations incurred by Lessee.
10. INSURANCE: Lessee shall procure and maintain for the duration of this Lease,
insurance against claims for injuries to persons or damage to property which may
arise from or in connection with the Lessee's operation and use of the leased
Premises. Lessee's maintenance of insurance as required by this Agreement shall
not be construed to limit the liability of the Lessee to the coverage provided by
such insurance, or otherwise limit the Lessor's recourse to any remedy available at
law or in equity. Lessee shall maintain Commercial General Liability insurance
written with limits no less than 51,000,000 each occurrence, $2,000,000 general
aggregate. Commercial General Liability insurance shall be at least as broad as
Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises
and contractual liability. The Lessor shall be named as an additional insured on
Lessee's Commercial General Liability insurance policy using ISO Additional
Insured -Managers or Lessors of Premises Form CG 20 11, or a substitute
endorsement providing at least as broad coverage. Lessee shall also maintain
property insurance, which shall be written covering the full value of Lessee's
property and improvements with no coinsurance provisions. Property insurance
shall be written on an all risk basis. The Lessee's Commercial General Liability
insurance policy or policies are to contain, or be endorsed to contain, that they
shall be primary insurance as respect the Lessor. Any Insurance, self-insurance, or
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self -insured pool coverage maintained by the Lessor shall be excess of the Lessee's
insurance and shall not contribute with it. Insurance is to be placed with insurers
with a current A.M. Best rating of not less than A: VII. Lessee shall furnish the
Lessor with original certificates and a copy of the amendatory endorsements,
including, but not necessarily limited to, the additional insured endorsement,
evidencing the insurance requirements of the Lessee. Lessee and Lessor hereby
release and discharge each other from all claims, losses and liabilities arising from
or caused by any hazard covered by property insurance on or in connection with
the premises or said building. This release shall apply only to the extent that such
claim, loss or liability is covered by insurance. The Lessee shall provide the Lessor
with written notice of any policy cancellation within two (2) business days of their
receipt of such notice. Failure on the part of the Lessee to maintain the insurance
as required shall constitute a material breach of lease, upon which the Lessor may,
after giving five (5) business days' notice to the Lessee to correct the breach,
terminate the Lease or, at its discretion, procure or renew such insurance and pay
any and all premiums in connection therewith, with any sums so expended to be
repaid to the Lessor on demand. If the Lessee maintains higher insurance limits
than the minimums shown above, the Lessor shall be insured for the full available
limits of Commercial General and Excess or Umbrella liability maintained by the
Lessee, irrespective of whether such limits maintained by the Lessee are greater
than those required by this contract or whether any certificate of insurance
furnished to the Lessor evidences limits of liability lower than those maintained by
the Lessee.
During the term of this Lease, the Lessor shall maintain all-risk property insurance
covering the residence located on the Premises for its full replacement value.
Lessee expressly agrees that should damage arise to the Premises or residence that
is covered by Lessor's insurance but not Lessee's, Lessee shall reimburse Lessor for
the cost of Lessor's deductible. Such reimbursement shall be made within thirty
(30) days of Lessor's written request for reimbursement.
11. INDEMNIFICATION: The Way Back Inn hereby releases, discharges, defends,
indemnifies and holds harmless the Lessor, and its agents, contractors, and others
from any and all claims, costs (including attorneys' fees), and liability, arising in
any manner, including, but not limited to, those arising from injury or death to
persons or damage to property occasioned by any act, omission or failure of the
Way Back Inn, its officers, agents or employees, whether they be direct or indirect.
12. ASSIGNMENT AND SUBLETTING: Lessee shall not assign this lease or any part
thereof, either by operation of law or otherwise, without first obtaining the prior
written consent of Lessor.
13. DEFAULT: Failure by Lessee to observe or perform any of the covenants,
conditions, or provisions of this lease, where such failure shall continue for a
period of ten (10) days after written notice from Lessor to cure the default, shall
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constitute a default and breach of the lease by the Lessor. Lessee shall notify Lessor
promptly of any default not by its nature necessarily known to Lessor.
14. ACCESS: Lessee shall permit Lessor to enter the leased premises at reasonable
times for the purpose of inspecting the leased premises and ascertaining
compliance with the provisions hereof by Lessee, but nothing herein shall be
construed as imposing any obligation on Lessor to perform any such work or
duties. Lessor reserves the right to property inspection and testing for the Lessor's
future development purposes. Lessor will give Lessee at least forty-eight (48)
hours' notice in the event of access needed for property testing.
15. COMPLIANCE WITH LAWS, RULES AND REGULATIONS: Lessee shall, at its
sole cost and expense, promptly comply with all laws, statutes, ordinances, and
governmental rules, regulations or requirements now in force or which may
hereafter be in force relating to or affecting the conditions, use, or occupancy of the
leased premises. Lessee shall faithfully observe and comply with the rules and
regulations that Lessor shall from time to time promulgate, including, without
limitation, those regulations affecting signage on the Property.
16. PERMITS: Lessee shall, at its sole cost and expense, be responsible for obtaining
any permits or licenses that are necessary to perform the work and covenants of
this lease Agreement.
17. PROPERTY TAXES: Lessor shall be responsible for keeping all property taxes paid
and up to date.
18. NOTICE: All notices under this lease shall be in writing and shall be effective
when mailed by certified mail or delivered to Lessor at the address below stated, or
to Lessee at the address below stated or to such other address as either party may
designate from time to time:
LESSOR: City of Tukwila LESSEE: Way Back Inn
Attn: Mayor's Office PO Box 621
6200 Southcenter Boulevard Renton, Washington 98057-0621
Tukwila, Washington 98188
19. TERMINATION: Either party has the right to terminate this Agreement if the
other party is in default of any material obligation or representation of this lease
which default is incapable of cure, or which being capable of cure, is not cured
within ten days after receipt of written notice of such default.
20. GENERAL PROVISIONS:
A. TIME IS OF THE ESSENCE OF THIS LEASE.
B. In the event of any action or proceeding brought by either party against the
other under this lease, the prevailing party shall be entitled to recover for the
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fees of its attorneys in such action or proceeding, including costs of appeal, if
any, in such amount as the court may adjudge reasonable attorneysfees. For
the purposes of this provision, the terms "action" or "proceeding" shall include
arbitration, administrative, bankruptcy, and judicial proceedings, including
appeals therefrom.
C. This lease shall be construed and governed by the laws of the State of
Washington.
D. Upon termination of this lease, Lessee shall surrender all keys to the Lessor at
the place then fixed for notice.
21. AUTHORITY OF LESSEE: Lessee, and each individual executing this lease on
behalf of Lessee, represent and warrant that he/she is duly authorized to execute
and deliver this lease, and that this lease is binding upon Lessee in accordance with
its terms.
22. WAIVER AND FORBEARANCE: No waiver by Lessor of any breach or default by
lessee of any of its obligations or agreement or covenants herein, shall be deemed
to be a waiver of any subsequent breach or default of the same or any other
covenant, agreement or obligation, nor shall forbearance by Lessor to seek remedy
for any breach or default of Lessee be deemed a waiver by Lessor or its rights and
remedies with respect to such breach or default.
THIS LEASE IS SUBJECT TO ACCEPTANCE BY LESSOR.
IN WITNESS THEREOF, the parties hereto have executed this Lease the date and
year above written.
CITY OF TUKWILA: WAY BACK INN:
By: By:
Its: Its:
Date: Date:
APPROVED AS TO FORM:
Office of the City Attorney
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City of Tukwila
City Council Community Development & Neighborhoods Committee
COMMUNITY DEVELOPMENT & NEIGHBORHOODS COMMITTEE
Meeting Minutes
September 25, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall
Councilmembers: Kate Kruller, Chair; Kathy Hougardy, Zak Idan
Staff: David Cline, Stacy Hansen, Nora Gierloff, John Dunn, Moira Bradshaw, Henry
Hash, CraigZellerhoff, Jack Pace, Robert Eaton, Brandon Miles, Cyndy Knighton,
Jeff Friend
CALL TO ORDER: Chair Kruller called the meeting to order at 5:30 p.m.
I. PRESENTATIONS
II. BUSINESS AGENDA
A. Potential Real Property Donations
Staff updated the Committee on two potential property donations to the City. One is
approximately 4.5 acres near Tukwila Park and the other is 4.32 acres abutting Raisbeck
Engineering in the Ryan Hill neighborhood. If the City accepted these properties both would be
categorized as Service Level 4, Open Space, which means minimal annual maintenance at this
time. The Park Commission supports staff exploring the acceptance of both of these properties
for park use. Acquisition is estimated at around $25,000 for appraisals, environmental
assessments, surveys and title reports. The Committee gave approval for staff to pursue the
property donations and return at a future meeting. RETURN TO COMMITTEE.
B. Capital Purchase: Replacement Gym Carpet
Staff is seeking Committee approval to purchase new carpet tiles for the Tukwila Community
Center gym floor in the amount of $30,581.25. Carpet tiles are used during large events and
rentals to protect the floor and reduce noise. The current tiles have been in use for over 18 years
and are due for replacement. Staff is also considering charging a new fee for rentals that would
be used to fund future carpet replacements. The question was raised if Committee or full Council
approval would be needed on the fee, and staff will follow up. COMMITTEE APPROVAL TO
PURCHASE CARPET.
C. Lease Renewal: Kennedy's Cottage
Staff is seeking Council approval to renew the lease on "Kennedy's Cottage" through December
31, 2022. Kennedy's Cottage is a home owned by the City that is leased by the Way Back Inn, a
nonprofit that provides 90+ days of temporary shelter to Tukwila families experiencing
homelessness. Staff is seeking three additional months to make the renewal cycle consistent
with Gregor House, another City owned home managed by the Way Back Inn. The Committee
asked staff to clarify the length of the term directly in the lease agreement, since it references five
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Community Development & Neighborhoods Minutes September25, 2018
years, not five years and three months. UNANIMOUS APPROVAL. FORWARD TO OCTOBER 1,
2018 REGULAR CONSENT AGENDA.
D. Tukwila International Boulevard Rechannelization Project and Neighborhood Plan
The City Council has requested a status update on implementation of the Tukwila International
Boulevard (TIB) recommendations that came out of the Congress for New Urbanism report in
2017. One of those recommendations was to reduce the number of through lanes on TIB by half
and add bike lanes and on -street parking. Tukwila contracted with Fehr & Peers to study the
impacts of doing this, and their preliminary report suggested likely adverse impacts to parallel
residential streets. Staff believes that more analysis needs to be done, including consideration
of type and funding of traffic calming on side streets, since the cost of implementation will be
significantly higher than previously understood. Staff is now proposing three options: Option A
allows for updating the zoning code and assumes no change to the TIB roadway, Options B and
C would plan further study on traffic and mitigation with Option C including an economic benefit
study. Further study would take at least six months. Further study is estimated at $100,000 with
an economic impact component requiring an additional estimated $40,000. Chair Kruller
requested that a PDF of the Fehr & Peers study be provided to the full Council. She also pointed
out that the staff report claims "the direction" is to not move forward with TIB rechannelization,
but that direction is a policy decision and the Council has not yet given any direction. The
Committee requested this be brought to the Committee of the Whole for a full Council discussion.
NO RECOMMENDATION. FORWARD TO OCTOBER 8, 2018 COMMITTEE OF THE WHOLE.
E. 2019-2020 Biennial Budget
Staff presented proposed 2019-2020 budgets for the following:
Department of Community Development
The DCD Budget proposes a 3% reduction in the areas of travel, supplies, professional services,
and overtime and grant reductions for the Recycling and the Transportation Demand
Management Programs. Revenue estimates include grants, pass through fees, and over 2
million in application fees due to development activity. The department is also proposing to
replace the permitting software with a new vendor in 2020, funded by the DCD technology fee.
Research would take place next year.
Foster Golf Links
The golf course is operated as an enterprise fund with revenues covering maintenance, pro
shop service, and capital. In 2017, golf rounds were down 8%, drawing down the Ending Fund
Balance. In addition, City Light began requiring the city to lease a portion of its property, so
staff placed the rental golf car replacement plan on hold and delaying or modifying planned
maintenance and improvements. The proposed budget reflects 8% reductions for the 2019-
2020 biennium. Staff recommends that Admissions Tax revenues remain within the golf budget,
which would require a code amendment. In 2016, the Council directed staff to explore the use
of reclaimed water. A pilot test area began in May 2018 and to date has used 6,343 gallons at a
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