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HomeMy WebLinkAbout18-230 - Alliance One Receivables Management - 2019-2020 Municipal Court Window Lease AgreementAgrc mt Number:18-230 Council Approval 1119118 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 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 $119.41 per month. The leasehold excise tax shall be paid on the first day of each month in addition to the monthly Rental Payment. If the State of Washington changes the leasehold excise tax, the tax payable by the Lessee shall be correspondingly modified in compliance with RCW 82.29A, without further action by the Parties. 4. Use of Premises by Lessee. Lessee shall have exclusive use of the Premises for payment collection and shall provide its own personnel to staff the Premises between 8:30 a.m. and 4:30 Alliance One Lease Agreement 2019-2020 -} o ri 0 }'2 Page 1 of 6 Lt ' • +e f1r4r_l i tl! y1l Z9Q$ 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 Sublettin~. 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 2019-2020 Page 2 of 6 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 2019-2020 Page 3 of 6 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 2019-2020 Page 4 of 6 City o, _ akwila Agrf- -mt 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. Appticabte 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 e- C , 2018 CITY OF TUKWILA ALLIANCE ONE RECEIVABLES, INC. -�APlanEkberg, Mayor Harry Neeren erg, Vice President/CFO ATTEST/AUTHENTICATED a f .f r e City Clerk i•ur By: (kvj City Attorney Alliance One Lease Agreement 2019-2020 Page 5 of 6 City o, akwila Agri mt Number: • 6200 Southcenter Boulevard, Tukwila WA 98188 STATE OF WASH INGTON ) ) ss. COUNTY OF KING ) 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 of2018. tr,t2/1 (Print Name) Residing at `T- -- t> My appointment expires 1 _ —6 STATE OFWA'SfiI1i�� ) ss. COUNTY OF4f 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 executethe instrument and acknowledged itthe Executive Directorof Sound Cities Association to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. f Dated this clay of '_ 1 `_ _ )2018. NOTARIAL SEAL STACY SUIMIPUS Notary Public BENSALEM TWtP, BUCKS COUNTY My Commission Expires Jul 25, 2020 [Stamp or Sea[] 1 • F. I VJ • -0t (Printed -Stamped'Nameof Mary) Residing at ' My appointment expires: Alliance One Lease Agreement 2019-2020 Page 6 of 6