Loading...
HomeMy WebLinkAboutReg 2018-11-19 Item 3C.5 - Agreement - 2019-2020 Court Window Lease Agreement with Alliance One Receivables Management for $930 per Month Plus $119.41 Leasehold Excise Tax per MonthCOUNCIL AGENDA SYNOPSIS Initials MeetingDate Prepared by Mayor's rev i Council review 11/19/18 CT (/Th ITEM INFORMATION ITEM No. 3C.5 STAFF SPONSOR: DAVID CLINE ORIGINAL AGENDA DATE: 11/19/18 AGENDA ITEM TITLE 2019-2020 Alliance One Lease Agreement CATEGORY Discussion Mt g Date Motion Date 11/19/18 Ell Resolution ilifgDate E Ordinance Mg Date 11] Bid Award Altg Date E1 Public Hearins MtsDate III Other Mfg MtgDate SPONSOR Eournii VA Mayor EHR El DCD El Finance LI -ire LJTS LP&R LI Police LIPW LI Court SPONSOR'S The Alliance One Lease Agreement expires on December 31, 2018. Administration is SUMMARY proposing a two-year lease agreement for January 1, 2019 - December 31, 2020 to coincide with the bienniel budget cycle. The agreement includes a 3.33 percent increase in the monthly rent and leasehold excise tax per RCW 82.29A. RIWIIM71;1) BY C.O.W. Mtg. Eil CDN Comm Z Finance Comm. El Public Safety Comm. Trans &Infrastructure Arts Comm. E] Parks Comm. El Planning Comm. DATE: 11/06/18 COMMI 11 EE CHAIR: QUINN RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Mayor's Office Unanimous Approval; Forward to 11/19/18 Consent Agenda COST IMPACT / FUND SOURCE EXPINDITURI RU,C)JJ 'RED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 11/19/18 MTG. DATE ATTACHMENTS 11/19/18 Informational Memorandum dated 10/26/2018 Draft Lease Agreement Minutes from 11/06/18 Finance Committee 63 64 Allan Ekberg, Mayor TO: Mayor's Office - David Cline, City Administrator Mayor Ekberg Finance & Safety Committee FROM: David Cline, City Administrator DATE: October 26, 2018 SUBJECT: Alliance One Lease Agreement ISSUE The current lease agreement with Alliance One Management Receivables expires on December 31, 2018. 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, 2019 - December 31, 2020 to coincide with the biennium budget cycle, as well as a 3.33 percent increase ($30/month) in the monthly rent. FINANCIAL IMPACT The 3.33 percent increase in rent means Alliance One would pay the City of Tukwila $930.00 a month to lease space in the court area. In addition to the monthly rent, Alliance One will pay leasehold excise tax pursuant to RCW 82.29A at the rate of 12.84 percent of the monthly rent in the amount of $119.41 per month. RECOMMENDATION The Committee is being asked to move this item forward to the consent agenda of the November 19, 2018 City Council Meeting for approval and authorization for execution by the Mayor. ATTACHMENTS Draft Lease Agreement for 2019-2020 Tukwila City Hall • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 65 66 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 is the owner of the commercial property located at 6200 Southcenter Boulevard, Tukwila, Washington (the "Property"). Lessor does hereby agree to lease to Lessee, upon the following terms and conditions, a portion of the Property consisting of one (1) front counter workspace at the Tukwila Municipal Court located at 6200 Southcenter Boulevard, Tukwila, Washington (the "Premises"). Term. This Agreement shall be in full force and effect for a period commencing January 1, 2019 and ending December 31, 2020 unless sooner terminated under the provisions hereinafter specified. 2. Rent. Lessee covenants and agrees to pay Lessor, at Lessor's address, without deduction or offset, rent in the amount of Nine Hundred Dollars ($930.00) per month ("Rental Payment"). The Rental Payment shall be submitted to Lessor on a monthly basis, due by the first day of each month. If payment is not received by the fifth day of each month, Lessee shall be responsible for paying a late fee equivalent to five percent (5%) of the delinquent amount in addition to the past due payment. All delinquent sums not paid within thirty (30) days of the due date shall bear interest at the rate of twelve percent (12%) per annum. Interest on all delinquent amounts shall be calculated from the original due date to the date of payment. The City's acceptance of less than the full amount of any payment due from Lessee shall not be deemed an accordance and satisfaction or compromise of such payment. Any and all ancillary costs associated with Lessee's use of the Premises shall be borne by Lessee. 3. Leasehold Excise Tax. Lessee shall pay leasehold excise tax due pursuant to RCW 82.29A to Lessor by the first day of each month at the rate of 12.84% of the rental amount, which amounts to $119.41 per month. The leasehold excise tax shall be paid on the first day of each month in addition to the monthly Rental Payment. If the State of Washington changes the leasehold excise tax, the tax payable by the Lessee shall be correspondingly modified in compliance with RCW 82.29A, without further action by the Parties. 4. Use of Premises by Lessee. Lessee shall have exclusive use of the Premises for payment collection and shall provide its own personnel to staff the Premises between 8:30 a.m. and 4:30 Alliance One Lease Agreement Page 1 of 6 67 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: 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. 5. Utilities, Equipment and Services. Lessee shall provide daily armored car service, Monday through Friday, to transport deposits from the Premises, the cost of which shall be borne by Lessee. Lessee shall provide any equipment necessary for the prescribed use of the Premises, including, but not limited to, computers, fax/copy machines and telephones. Lessee shall be responsible for setting up and maintaining its own telephone and internet connections. 6. Signage. Lessee shall provide, at its own expense, signage to be placed at the Premises; all signage shall be pre -approved by Lessor before being posted on the Premises. Lessee shall not damage or deface the Premises when installing or removing signage and if any damages to the Premises are caused by such installation or removal they shall be promptly repaired by Lessee at Lessee's sole expense. 7. 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. 8. Insurance. The Lessee shall procure and maintain in full force throughout the duration of this Agreement, 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 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 City's recourse to remedy available under law or in equity. a. Minimum Scope of Insurance. The Lessee shall obtain insurance of the types described below: i. 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 Public Entity shall be named as additional an 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. ii. Property insurance shall be written on an all risk basis. b. Minimum Amounts of Insurance. Lessee shall maintain the following insurance limits: i. Commercial General Liability insurance shall be written with limits no less than $1,000,000 each occurrence, $2,000,000 general aggregate. Alliance One Lease Agreement Page 2 of 6 68 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: ii. Property insurance shall be written covering the full value of the Lessee's property and improvements with no coinsurance provisions. c. Other Insurance Provisions. The Lessee's Commercial General Liability insurance policy or policies are to contain or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Lessee's insurance and shall not contribute with it. d. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M Best rating of not less than A: VII. e. Verification of Coverage. Lessee shall furnish the City with original certificates and a copy of any applicable amendatory endorsements, including, but not limited to, the additional insured endorsement, evidencing the insurance requirements of the Lessee. f. Waiver of Subrogation. Lessee and the City 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. g. City's Property Insurance. The City shall purchase and maintain during the term of the Lease, all-risk property insurance covering the Premises for full replacement value without any coinsurance provisions. h. Notice of Cancellation. The Lessee shall provide the City with written notice of any policy cancellation, within two (2) business days of receiving such notice. Failure to Maintain Insurance. Failure on the part of the Lessee to maintain the required insurance shall constitute a material breach of this Lease upon which the City may, after giving five (5) business days' notice to the Lessee to correct the breach, terminate this 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 City on demand. 9. Indemnification and Hold Harmless. Lessee shall indemnify, defend and hold harmless the Lessor, its officers, agents and employees, from and against any and all claims, losses or liability, including 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 Alliance One Lease Agreement Page 3 of 6 69 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 Agreement Number: 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. Indemnification and Hold Harmless. Lessee shall indemnify, defend and hold harmless the City, its officers, officials, employees and volunteers, from and against any and all claims, suits, actions, losses or liability, arising from injury or death to persons or damage to property, which arises out of Lessee's use of Premises, or from the conduct of Lessee's business or from any activity or work permitted or suffered by Lessee in or about the Premises except only such injury or damage as shall have been occasioned by the sole negligence of the City. 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 Receivables, Inc. Tera Cappa-Bachaud, Client Service Manager PO Box 11641 Tacoma WA 98411 13. Entire Agreement - Modifications. This Lease Agreement together with all exhibits or addenda 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 Alliance One Lease Agreement Page 4 of 6 70 City of Tukwila Agreement Number: 6200 Southcenter Boulevard, Tukwila WA 98188 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. 14. 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. 15. Applicable Law - Venue: Attorneys' 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 , 2018 CITY OF TUKWILA ALLIANCE ONE RECEIVABLES, INC. Allen Ekberg, Mayor Harry Neerenberg, Vice President/CFO ATTEST/AUTHENTICATED City Clerk APPROVED AS TO FORM: By: City Attorney Alliance One Lease Agreement Page 5 of 6 71 City of Tukwila 6200 Southcenter Boulevard, Tukwila WA 98188 STATE OF WASHINGTON ss. COUNTY OF KING Agreement Number: I certify that I know or have satisfactory evidence that Allan Ekberg is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Mayor of the City of Tukwila to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated this day of , 2018. (Print Name) Residing at [Stamp or Seal] My appointment expires STATE OF WASHINGTON COUNTY OF KING ) ss. I certify that I know or have satisfactory evidence that Harry Neerenberg is the person who appeared before me, and said person acknowledged that she signed this instrument, on oath stated that she was authorized to execute the instrument and acknowledged it the Executive Director of Sound Cities Association to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated this day of , 2018. [Stamp or Seal] Notary Public for Washington (Printed or Stamped Name of Notary) Residing at My appointment expires: Alliance One Lease Agreement Page 6 of 6 72 City of Tukwila City Council Finance Committee FINANCE COMMITTEE Meeting Minutes November 6, 2018 - 5:30 p.m. - Hazelnut Conference Room, City Hall Councilmembers: De'Sean Quinn, Chair; Dennis Robertson, Kate Kruller Staff: David Cline, Peggy McCarthy, Vicky Carlsen, Bruce Linton, Chris Flores CALL TO ORDER: Committee Chair Quinn called the meeting to order at 5:30 p.m. I. PRESENTATIONS II. BUSINESS AGENDA A. MAYOR'S OFFICE CONTRACTS AND AGREEMENTS Staff is seeking Council approval of the following contracts and agreements: Prosecution Services Contract with the Walls Law Firm for a flat rate of $13,100 per month, which is a 3% reduction from their current monthly rate. Public Defense Services Contract with Kirshenbaum & Goss, Inc. for a flat rate of $30,600 per month for 2019 and 2020, which is a reduction from the 2017-2018 rate of $32,600. City Attorney Services Contract with Kenyon Disend for general City Attorney services, public records support, litigation and contested administrative proceedings, specialized services, and paralegal services in the amount of $33,940 per month. Lease Agreement with Sound Cities Association Renewed lease agreement with Sound Cities Association for office space in the 6300 Building for a base rent of $24,820.00 in 2019 and $25,550 in 2020. In addition to the base rent, SCA will pay leasehold excise tax at the rate of 12.84%. Provisions also include internet services for $100/month, payment of long distance and toll calls, and after-hours emergency callouts or other agreed upon project work at a flat rate of $150/hour. Lease Agreement with Alliance One Renewed lease agreement with Alliance One Management Receivables for space in the court area at a rate of $930/month, which represents a 3.33% increase. In addition to the monthly rent, Alliance One will pay leasehold excise tax at the rate of 12.84%. UNANIMOUS APPROVAL. FORWARD TO NOVEMBER 19, 2018 REGULAR CONSENT AGENDA. 73