HomeMy WebLinkAboutReg 2013-01-07 Item 6C - Lease Agreement - Sound Cities Association for 6300 Building OfficeCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
01/07/13
Prepared by Mayor's review
BG .1
Council review
ITEM INFORMATION
ITEM NO.
6.C.
39
STAFF SPONSOR: BOB GIBERSON
ORIGINAL AGENDA DATE: 01/07/13
AGENDA IILM TITLE Suburban
Lease
Cities Association (now Sound Cities Association)
Agreement for 6300 Building Suite 206
CATEGORY ❑ Discussion
Mtg Date
Motion
Date 01/07/13
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
■
Mtg
SPONSOR ❑ Council ❑ Mayor ❑ HR ❑ DCD ❑ Finance ❑ Fire ❑ IT ❑ P&R ❑ Police ■ PW
SPONSOR'S In April 2006, the City entered into a five year lease of Suite 206 in the 6300 Building for
SUMMARY 1,100 sf with Suburban Cities (SCA). The rent was increased by 10% each year, but
Amendment #1 readjusted the rent amounts and extended the lease through January 31,
2013. Amendment #2 added billable IT service. SCA would like to expand into Suite 212
and PW staff will relocate to Suite 100. Council is being asked to approve the new lease
agreement with SCA for 3 years with a rent of $1,703.33 /month for a total of 1,460 sf.
REVIEWED BY ❑ COW Mtg. ❑ CA &P Cmte ❑ F &S Cmte ❑ Transportation Cmte
❑ Utilities Cmte ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm.
DA "IL: COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR /ADMIN.
COMMITTEE
Public Works Department
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
$0.00 $0.00 $0.00
Fund Source: GENERAL FUND REVENUE
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
01/07/13
MTG. DATE
ATTACHMENTS
01/07/13
Informational Memorandum dated 1/4/13
Sound Cities Association Lease Agreement
39
40
TO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
City Council
FROM: Bob Giberson, Public Works Director
DATE: January 4, 2013
SUBJECT: Suburban Cities Association (now Sound Cities Association)
New Lease Agreement — Suite 206, 6300 Building
ISSUE
Approve the new lease agreement with Sound Cities Association (SCA, formerly known as
Suburban Cities Association).
BACKGROUND
In April 2006, the City entered into a five year lease of Suite 206 in the 6300 Building (1,100
rentable square feet) with SCA that included telephone service. The rent started at $825 /month
in 2006 and was increased by about 10% every year until 2010 with a rent of $1,192/mo.
Amendment #1 was processed in January 2010 to extend the lease by three years and and
adjusted the 2010 rent downward to $1,128.42/mo, and set the rent for 2011 at $1,184.33/mo
and set 2012 rent at $1,243.92/mo.
Amendment #2 was processed in January 2012 to add in IT services for network and technical
support at the billable rate of $75 /hour for technical work and $100 /hour for network and
managerial support.
A new lease agreement was negotiated to include an additional 360 square feet of space and a
new monthly rent of $1,703.33 for 2013, $1,764.17 for 2014, and $1,825.00 for 2015.
DISCUSSION
The current lease with SCA expires on January 31, 2013. SCA has submitted a remodel plan to
the building department for review to gain partial approval of their expansion. The remainder of
the approval is through this new lease agreement.
The expansion of Suite 206 for SCA will result in the reduction of floor space for Public Works
Project Management staff in Suite 212. To accommodate this reduction, we are looking at
moving a few staff downstairs in Suite 100. The cost of the move downstairs will include a few
additional network and phone connections, cubicle panels and minor office adjustment costs.
The additional rent for the expanded space will cover the relocation costs for Public Works.
RECOMMENDATION
Council is being asked to authorize the Mayor to sign a new lease agreement with SCA for a
term of three years and a rent of $1,703.33 per month for 2013 including rent of an additional
360 square feet and consider this item at the January 7, 2013 Regular Meeting. (With no
Council Committee meetings in early January, in order to meet the necessary timeline, staff is
requesting consideration of this item at this meeting.)
Attachments: SCA Lease Agreement
W: \2013 Info Memos - Council \SCA 2013 Lease.doc
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LEASE AGREEMENT
This Lease Agreement (the "Lease ") is entered into on this day of , 20_, between the
City of Tukwila, a Washington municipal corporation, (the "City") and Sound Cities Association (the
"Lessee ", formerly known as "Suburban Cities Association "). The City and Lessee agree as follows:
1. PREMISES: The City leases to Lessee the commercial property currently situated at Suite 206,
6300 Southcenter Boulevard, Tukwila, Washington (the "Premises "), which consists of
approximately 1,460 rentable square feet. The premises do not include the exterior walls, roof,
land beneath, pipes, ducts, conduits, wires, fixtures and equipment above the suspended ceiling.
2. TERM: The term of this Lease shall commence on February 1, 2013 and shall terminate in 36
months on January 31, 2016, in accordance with the termination provisions set forth in Section 23,
unless sooner terminated as a result of Lessee's default hereunder. Upon termination of this Lease,
Lessee shall surrender all keys and/or access cards to the City at the place then fixed for notice.
3. POSSESSION: Lessee shall be deemed to have accepted possession of the Premises in an "as -is"
condition. The City makes no representations to Lessee regarding the Premises including the
structural condition of the Premises and the condition of all mechanical, electrical, and other
systems. Lessee shall be responsible for performing any work necessary to bring the Premises into
condition satisfactory to Lessee. Lessee shall not engage in any improvements or alterations to the
Premises without the express written consent of the City.
4. RENT: The monthly base rent shall be set at $14.00 per square feet per year, or $1,703.33 per
month ($20,440 per year) for the period from February 1, 2013 through January 31, 2014, $14.50
per square feet per year, or $1,764.17 per month ($21,170 per year) for the period of February 1,
2014 through January 31, 2015 and $15.00 per square feet per year or $1,825.00 per month
($21,900 per year) for the period of February 1, 2015 through January 31, 2016. Rent shall be due
on the 1st day of each month. If any sums payable by Lessee to the City are not received by the
fifth (5) day of each month, Lessee shall be responsible for paying a late payment for the cost of
collecting and handling the late payment. The amount of the late payment shall be five (5) percent
of the delinquent amount and shall be in addition to the delinquent amount due. In addition, all
delinquent sums not paid within thirty (30) days of the date due shall bear interest at the rate of
twelve (12) percent per annum or the highest rate of interest allowable by law, whichever is less.
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. The City and
Lessees agree that Lessees Pro Rata share is 3.45 %, based on the ratio of the agreed rentable area of
the Premises to the agreed rentable area of the Building and all other buildings on the Property as of
the date of this Lease.
5. SECURITY DEPOSIT: Upon execution of this Lease, Lessee shall deliver to the City a security
deposit in the amount of $0 (no security deposit required on prior lease). If Lessee breaches any
covenant or condition of this Lease including but not limited to the payment of Rent, the City may
apply all or any part of the security deposit to the payment of any sum in default or any damages
suffered by Landlord as a result of Lessee's breach. Any payment to the City from the security
deposit shall not be construed as a payment of liquidated damages for any default. If Lessee
complies with all of the covenants and conditions of this Lease throughout the Lease term, the
Sf ct, G, f GtNnt- S Page 1 of 8
SCA LEASE AGREEMENT
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security deposit shall be repaid to Lessee without interest within thirty (30) days after the vacation
of the Premises by Lessee.
6. USE: Lessee shall use the Premises for the following purposes: general office use. The Premises
shall be used only for the uses specified herein and for no other business or purpose without the
prior written consent of the City. No act shall be done on or around the Premises that is unlawful
or that will increase the existing rate of insurance on the Premises or cause the cancellation of any
insurance on the Premises. Lessee shall not commit or allow to be committed any waste upon the
Premises or any public or private nuisance. Lessee shall not do or permit anything to be done on
the Premises which will obstruct or interfere with the rights of other tenants, or occupants of the
Premises or their customers, clients, and visitors or to injure or annoy such persons.
7. LESSEE MAINTENANCE AND REPAIR RESPONSILIBITY: Lessee shall, when and if
needed, at Lessee's sole expense, make repairs to the Premises and every part thereof; and Lessee
shall maintain the Premises in a neat, clean, sanitary condition. Lessee shall surrender the Premises
to the City in good condition upon the termination of this Lease, reasonable wear and tear excepted.
8. SIGNAGE: Lessee shall obtain the City's written consent before installing any signs up on the
Premises. Lessee shall install any approved signage at Lessee's sole expense and in compliance
with all applicable laws. Lessee shall not damage or deface the Premises when installing or
removing signage and shall repair any injury or damage to the Premises caused by such installation
or removal.
9. UTILITIES: City shall provide the Premises the following services, the cost of which shall be
included in the rent: water, electricity, heating, cooling seven (7) days per week, and janitorial
service five (5) nights per week, exclusive of holidays.
The City shall provide six (6) extensions to the City phone system for use by the Lessee. City shall
be responsible to maintain the phone system at no additional cost to the Lessee. Lessee shall be
responsible for all costs associated with long distance and other toll calls which may be billed
separately by City.
The City shall provide Informational Technology (IT) services to the Lessee with the agreement
that:
a) The City shall invoice the City monthly for any technical support billed in 0.25 hour
increments, with a minimum 0.25 hour charge, at a rate of $75 /hour for the City's IT field
technicians for walk -in or call -out visits, and $100/hour for network support and managerial
support/consulting. All work performed will be during standard office hours of 8:30 a.m. to
5:00 p.m. during the City's regular, non - holiday business hours.
b) Any after -hours emergency call -outs or any mutually agreed upon after -hours project work
that might be necessary will be billed in one -hour increments at a flat rate of $150 /hour with
a minimum charge of one hour.
c) A detailed Lessee hardware equipment and software inventory listing will be provided to the
City upon the signing of this Lease and will be updated annually. Any hardware equipment
or software requested for purchase by the City to update the Lessee's inventory will be billed
at the actual costs with addition of the City's staff time necessary to order the equipment to
SCA LEASE AGREEMENT Page 2 of 8
44
specification. Any hardware equipment or software purchased by the Lessee will be first
reviewed approved by the City's technical staff for system compatibility and supportability.
d) A virus checking software that has been approved by the City will be mandatory on all Lessee
computers, laptops, and servers in use by the Lessee. Any virus signature files released by
the virus checking software company will be set to automatically update to keep the Lessee
on the latest version available.
e) A City- approved data backup program will be mandatory, and will be configured to
automatically back up any of the Lessee's server -based live, primary data. Data that is stored
only locally (computers, laptops) will NOT be backed up nor monitored, and is kept locally
at the Lessee's own risk. The performance of the backup program will be monitored and
periodically tested by both parties.
10. DESTRUCTION OF PREMISES: If the Premises are completely or partially destroyed by fire or
other casualty, or if they are damaged by an uninsured casualty, or by an insured casualty to such an
extent that the damage cannot be repaired within sixty (60) days of the occurrence, Lessor shall have
the option to restore the Premises or to terminate this Agreement on thirty (30) days written notice, and
Lessee shall have the option to terminate this Agreement on thirty (30) days written notice, effective as
of any date not more than sixty (60) days after the occurrence. If this Section becomes applicable,
Lessor shall advise Lessee within thirty (30) days after such casualty whether Lessor elects to restore
the Premises or to terminate this Agreement. If Lessor elects to restore the Premises, it shall
commence and prosecute the restoration work with diligence. For the period from the date of the
casualty until completion of the repairs (or the date of termination of this Agreement, if Lessor elects
not to restore the Premises), the monthly minimum rent shall be abated in the same proportion that the
untenantable portion of the Premises bears to the whole thereof, unless the casualty results from
Lessee's negligence or its breach of its obligations under this Agreement.
11. HAZARDOUS SUBSTANCES: Lessee shall not generate, release, spill, store, deposit, transport, or
dispose of (collectively "Release ") any hazardous substances, sewage, petroleum products, radioactive
substances, medicinal, bacteriological, or disease - producing substances, hazardous materials, toxic
substances or any pollutants or substances defined as hazardous or toxic in accordance with applicable
federal, state and local laws and regulations in any reportable quantities (collectively "Hazardous
Substances ") in, on or about the Premises. Lessee shall attach a separate list of Hazardous Substances
they propose to store on site and Lessor must accept the list in writing or the Hazardous Substances
cannot be stored on site. Lessee shall indemnify, hold harmless, and defend Lessor from any and all
claims, liabilities, losses, damages, clean -up costs, response costs and expenses, including reasonable
attorney's fees, arising out of or in any way related to the Release by Lessee, or any of its agents,
representatives or employees, or to the presence of such Hazardous Substances in, on or about the
Premises occurring at any time after the effective date of this Agreement to the full extent of Lessee's
liability.
12. ALTERATIONS AND ADDITIONS BY LESSEE: After obtaining the prior written consent of
the City, Lessee may make, at its sole expense, such additional improvements or alterations to the
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 the City. All work
performed shall be done in a workmanlike manner and shall become the property of the City.
SCA LEASE AGREEMENT Page 3 of 8
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Expansion: In consideration for expansion into the City's Suite 212 by 460 square feet, Lessee
agrees to have their architect conduct a conceptual space needs analysis and
conceptual remodel design of the remaining area of Suite 212 to study how to
remodel the remaining space to accommodate existing staff.
13. LIENS: Lessee shall keep the Premises free from any liens arising out of any work performed,
materials furnished, or obligations incurred by Lessee, including those utilities which Lessee is
responsible for.
14. INSURANCE: The Lessee shall procure and maintain for the duration of the 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 leased Premises. Lessee's maintenance of
insurance as required by the 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 any remedy
available at law or in equity.
A. Minimum Scope of Insurance.
Lessee shall obtain insurance of the types described below:
1. Commercial General Liability insurance shall be written on Insurance Services Office
(ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The
City shall be named as 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 equivalent coverage.
2. Property insurance shall be written on an all risk basis.
B. Minimum Amounts of Insurance.
Lessee shall maintain the following insurance limits:
1. Commercial General Liability insurance shall be written with limits no less than
$1,000,000 each occurrence, $2,000,000 general aggregate.
2. Property insurance shall be written covering the full value of 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 as 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.
SCA LEASE AGREEMENT Page 4 of 8
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Lessee shall furnish the City 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.
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 Building for their 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
business days of their receipt of such notice.
I. Failure to Maintain Insurance.
Failure on the part of the Lessee to maintain the insurance as required shall constitute a
material breach of Lease, upon which the City 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 City on demand.
15. INDEMNIFICATION: Lessee shall defend, indemnify, and hold harmless the City, its officers,
officials, employees and volunteers from and against any and all claims, suits, actions, or liabilities
for injury or death of any person, or for loss 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, work or thing done,
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.
16. 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 the City.
17. 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 the City to cure the default, shall constitute a default and breach of the Lease by the
City. Lessee shall notify the City promptly of any default not by its nature necessarily known to the
City.
18. ACCESS: After reasonable notice from the City (except in cases of emergency where no notice is
required), Lessee shall permit the City and its agents, employees, and contractors to enter the
Premises at all reasonable times to make repairs, alterations, improvements, or inspections. This
Section shall not impose any repair or other obligation upon the City not expressly state elsewhere
in this-Lease.
SCA LEASE AGREEMENT Page 5 of 8
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19. 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 the City shall from time to time promulgate, including,
without limitation, those regulations affecting signage on the Property.
20. 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.
21. PROPERTY TAXES: The City shall be responsible paying all property taxes on the premises.
22. NOTICE: All notices under this lease shall be in writing and shall be effective when mailed by
certified mail or delivered to the City 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:
CITY OF TUKWILA: LESSEE:
CITY OF TUKWILA
ATTN: Mayor's Office
6200 Southcenter Boulevard
Tukwila, Washington 98188
SCA
ATTN: Deanna Dawson, Executive Director
6300 Southcenter Boulevard, Suite 206
Tukwila, WA 98188
23. 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 (10) days after receipt of written notice of
such default.
24. 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 is 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 attorney's fees and costs of suit.
25. AUTHORITY OF LESSEE: Lessee, and each individual executing this Lease on behalf of
Lessee, represent and warrant that s /he is duly authorized to execute and deliver this Lease, and that
this Lease is binding upon Lessee in accordance with its terms.
26. WAIVER AND FORBEARANCE: No waiver by the City 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 the City to seek remedy for any breach or default of Lessee be deemed a waiver by
the City or its rights and remedies with respect to such breach or default.
27. ENTIRE AGREEMENT; MODIFICATION: This Lease, together with any attachments or
addenda, represents the entire and integrated Lease Agreement between the City and the Lessee and
supersedes all prior negotiations, representations, or agreements written or oral. No amendment or
modification of this Lease shall be of any force or effect unless it is in writing and signed by the
parties.
SCA LEASE AGREEMENT Page 6 of 8
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28. SEVERABILITY AND SURVIVAL: If any term, condition or provision of this Lease is declared
void or unenforceable or limited in its application or effect, such event shall not affect any other
provisions hereof and all other provisions shall remain fully enforceable. The provisions of this
Lease, which by their sense and context are reasonably intended to survive the completion,
expiration or cancellation of this Lease, shall survive termination of this Lease.
IN WITNESS THEREOF, the parties hereto have executed this Lease the date and year above written.
CITY OF TUKWILA: LESSEE:
By: By:
Its: kIGti Ty** Its: flea her Are+ 4--
Date: Date: / Zi( /(1/'�'�
APPROVED AS TO FORM:
Of ice of the
City O y y
STATE OF WASHINGTON
) ss.
COUNTY OF KING
I certify that I know or have satisfactory evidence that y •4 c o QActc,.\ , Mayor, is
the person who appeared before me, and said person acknowledged that they signed this instrument, and
on oath stated that they were authorized to execute the instrument on behalf of the City of Tukwila and
acknowledged it to be his /her free and voluntary act for the purposes mentioned in the instrument.
DATED:
(Signature of Notary)
(Legibly Print or Stamp Name of Notary)
Notary Public in and for the State of Washington
My appointment expires:
[Stamp or Seal]
SCA LEASE AGREEMENT Page 7 of 8
49
STATE OF WAShinj
COUNTY OF n�
) ss.
I certify that I know or have satisfactory evidence that Deanna %✓S4-1 is the person
who appeared before me, and said person acknowledged that said person signed this instrument, and on
oath stated that said person was authorized to execute the instrument and acknowledged it to be his/her
free and voluntary act for the purposes mentioned in the instrument.
DATED: DeCtinOW 1/2-1
[Stamp or Seal]
(Signature of Notary)
K-kisf-ti4 U -Je 11
(Legibly Print or Stamp Name of Notary)
Notary Public in and for the State of OJ
My appointment expires: 12- 127 ! 2-613
SCA LEASE AGREEMENT Page 8 of 8
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