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HomeMy WebLinkAboutL12-027 - Original - Front Counter Space at City of Kent Municipal Court y CITY CLERK 220 4" Avenue South Kent, WA 9S032 Fax: 253-S56-6725 PHONE: 253-856-5725 Lease Agreement Cover Shreet This document is to he used in lieu of the Contract Cover Sheet SECTION I - CONTRACT PROCESSING AND TENANT SET-UP- Contract Number: L27-12 (to be completed by Clerk's Office) 1. Responsible Department/Division: Parks/Facilities 2. Contact Person and Title: Alex Ackley, Parks Facilities Superintendent Telephone Extension: 5081 3. Tenant (Custorner) Name: Ailiance One Receivables Management, Inc., 4, Tenant (Customer) Number: 64749 5. General Ledger Account Number: 54006900.56250 6. King County Tax Parcel Number, 000660-0043-0 7. Address of Parcel: 1220 Central Ave S, Kent, WA 8. Type of Lease: Lease Agreement One (1) Front Counter Space 9. Councid•Authorization Date: 02/07/2012 10. Mayor signature Date: 3/2012 SECTION 2 - LEASE DURATION AND IMPORTANT DATES: 11. Lease Start Date: 01/01/2012 12. Tenant Lease Option Renewal Notification Due Date: N/A 13. Lease Termination Date: 90 days advance written notice 14. Lease Duration: On-going SECTION 3 - RENT DETERMINlATIONI AND DUE DATE: 15. Rent: $443.11 16. Rent Due late: Fifth of each Month 17. Calculation of Rental Increase(s). N/A Lease Agreement Cover Sheet—Page 1 of 3 SECTION 4 — LEASEHOLD EXCISE TAX: 18. Is this lease subject to leasehold excise taxes? ® YES (go to Question 19) ❑ NO, reason: 19. Are leasehold excise taxes for this tenant centrally assessed, i.e. directly collected from the tenant by the Washington State Department of Revenue? ❑ YES (attach written verification received directly from DOR or indirectly through the tenant, e.g. DOR notification letter) ® NO (go to Question 20) 20. Does Lease Rent include Leasehold Excise Tax? (Leasehold taxes must be broken out on the invoice and coded: Business unit.32500.0303) ❑ YES Calculate the leasehold excise tax (Stated Rent divided by 1.1284) ® NO Calculate the leasehold excise tax (Stated Rent times .1284) SECTION 5 — APPLICABLITY OF UTILITIES: 21. Applicability of Utilities — Check all that utilities that are affected and indicate provider (e.g. City of Kent), Account Number or basis of exclusion. ® Does Not Apply ❑ Water: ❑ Sewer: ❑ Drainage: ❑ Garbage: ❑ Electricity/Natural Gas: SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES: 22. Monetary Penalties: If not paid within 10 days after the date specified, a one-time late charge of 5% of the payment due shall be added to the payment as a penalty, and the total sum shall become immediately due and payable. Any amount remaining unpaid by the first day of the month following the due date for payment shall bear interest at the rate of one (1) percent per month. 23. Late Interest: Lease Agreement Cover Sheet—Page 2 of 3 I 1 , SEC T b09y7 A _ OTHER LEASE CONvEDd�fi `3"IONSa Special lease considerations, e.g. non-monetary rent, etc None (check box if no cen•sderatlons) Lease Agreement Cover Sheet—Page 3 of 3 i LEASE AGREEMENT For Pay Station at Kent Municipal Court Between Kent Municipal Court and Alliance One Receivables Management, Inc. THIS LEASE is made by and between the City of Kent Municipal Court, a Washington municipal corporation, hereinafter referred to as "City," and Alliance One Receivables Management, Inc. a Washington corporation, hereinafter referred to as "Lessee," as of the last date executed below. SECTION 1. LEASED PREMISES. For and upon the conditions and provisions herein, the City hereby leases to the Lessee the following areas within the City of Kent Municipal Court ("Court") located at 1220 Central Avenue South, Kent, Washington, one (1) front counter workspace for one person to collect court fines and related costs. The City has sole discretion regarding the location and physical boundaries of said counter space, and reserves the right to modify the location and physical boundaries, as it sees fit, during the term of the Agreement. SECTION 2. USE OF PREMISES. The Lessee shall use the Premises to collect court fines and related costs, and other duties incidental to its collection business. The Lessee shall employ competent, courteous, and efficient staff in numbers to adequately serve its patrons. All Lessee's staff members shall, while on duty, be equipped with any apparatus or clothing that may be required by law, ordinance, or regulation. SECTION 3. DURATION OF AGREEMENT. The term of this Agreement shall begin on January 1, 2012, and shall terminate as provided for in this Agreement. ; SECTION 4. LEASE CONSIDERATION AND PAYMENT. The Lessee shall provide to the City the following consideration for the Lease: A. Services to the public pursuant to the terms of this lease. B. Rent to the City as follows: 1. Rent. Lessee shall pay monthly to the City four hundred forty-three dollars and eleven cents ($443.11). 2. Leasehold Tax. Pursuant to Chapter 82.29A RCW, Lessee shall pay monthly to the City, the amount of state leasehold tax owing at a rate established by the State of Washington, currently 12.84%. Leasehold tax will be due and owing for any months in which rent is waived. Should the leasehold tax rate increase or decrease in the Lease Agreement Between Kent Municipal Court and Alliance One Page 1 of 6 future, the monthly rental rate will be adjusted to arrive at a total rent and tax payment of five hundred dollars ($500.00). 3. Payment. Lessee shall make payment to the City for each calendar month of operation, said payment being due and payable no later than the fifteenth (15th) of the following month. All payments due under the Lease to the City shall be paid or delivered to: City of Kent Finance Department Customer Services Division 220 4th Avenue South Kent, WA 98032-5895 I SECTION S. PENALTY INTEREST AND PARTIAL PAYMENTS. A. If any payment due under this Lease is not paid to the City within ten (10) days after the date specified, a one-time late charge of five (5) percent of the payment due shall be added to the payment as a penalty, and the total sum shall become immediately due and payable. Any amount remaining unpaid by the first day of the month following the due date for payment (i.e., approximately 15 days late) shall bear interest at the rate of one (1) percent per month. B. Payments made by Lessee must be applied to amounts due and owing under the Lease in the following order: leasehold tax and Rent. The City has authority to apply partial payments received in the manner it sees fit based on the financial responsibilities of the City. i SECTION 6. CITY OBLIGATIONS. The City shall have the following obligations under this Lease: A. Provide and maintain hours of operation; provided, the Court may be closed during such times because of snow, inclement weather, or any other reason. B. Provide telephone service. C. Provide a clean, safe and secure workspace. SECTION 7. SIGNAGE. All graphics placed upon or affixed to any of the Premises shall be subject to the prior written approval of the City, which approval shall not be unreasonable withheld The Lessee will follow all City sign codes. The Lessee shall submit detailed Plans and secure any needed permits/approvals for all exterior and interior signs. In all cases, signage shall be consistent in size, color, lettering, and theme with the Court design and signage. SECTION B. TAXES, FEES, AND PERMITS. A The Lessee shall obtain and at all times maintain a current City of Kent business license and shall obtain all other regulatory licenses and permits as may be required or become necessary to fulfill Lessee's obligations under this Lease at Lessee's sole expense. Each party agrees to execute such additional documents as may be required to fully implement the intent of this subsection. Lease Agreement Between Kent Municipal Court and Alliance One Page 2 of 6 B. The Lessee shall promptly pay all taxes and fees for Its operations to the appropriate collecting agencies. All such taxes and fees shall be paid, before delinquent, all fees, charges, and costs arising out of the Lessee's use and occupancy of the Premises Including, but not limited to, charges Imposed for license and excise fees, sales tax, taxes on personal property of the Lessee and on the leasehold Interest (leasehold tax) created by this Lease, and any other taxes Imposed by governmental agencies pertaining to Lessee's operations under this Lease. a SECTION 9. NON-DISCRIMINATION. r Lessee shall conduct Its business in a manner which assures fair, equal and non- discriminatory treatment at all times in all respects to all persons without regard to race, color, religion, sex, sexual orientation, age, or national origin. No person shall be refused service, be given discriminatory treatment or be denied any privilege, use of facilities, or participation in activities on the Premises on account of race, color, religion, sex, age, sexual orientation, or nation origin. Failure to comply with any of the terms of this provision shall be a material breach of this Lease. Lessee shall comply with all applicable Federal, State, County, and City laws, ordinance, rules and regulations regarding non-discrimination in employment, the provision of services to the public in a non-discriminatory manner. The Lessee shall be responsible for complying with the ADA and respect to any improvements installed by the Lessee, the placement of furniture and furnishings, and the Lessee's operation SECTION 10. INSURANCE The Lessee shall procure and maintain for the duration of the Agreement, insurance of the types and in the amounts described in the Goods & Services Agreement Between Kent Municipal Court and AllianceOne Receivables Management, Inc., of May 18, 2011. SECTION 11. INDEMNIFICATION AND HOLD HARMLESS Lessee shall defend, indemnify and hold the City, its officers, officials, employees, agents and volunteers harmless from any and all claims, injuries, damages, losses or suits, including all legal costs and attorney fees, arising out of or in connection with the Lessee's performance of this Lease, except for that portion of the injuries and damages caused by the City's negligence City shall defend, indemnify and hold the Lessee, its officers, officials, employees, and agents harmless from any and all claims, injuries, damages, losses, or suits, including all legal costs and attorney fees, arising out of or in connection with the City's negligent performance of this Lease, except for that portion of the injuries and damages caused by the Lessee's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE LESSEE'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51 RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. THE PARTIES FURTHER ACKNOWLEDGE THAT THEY HAVE MUTUALLY NEGOTIATED THIS WAIVER. In the event either party (the "Indemnitor") refuses tender of defense in any suit or any claim, if that tender was made pursuant to this indemnification clause, and if that refusal is subsequently determined by a court having jurisdiction (or other agreed tribunal) to have been a wrongful refusal on the Indemnitor's part, then Lessee shall pay all costs for defense Lease Agreement Between Kent Municipal Court and Alliance One Page 3 of 6 for the tendering party (the "Indemnitee"), Including all reasonable expert witness fees and reasonable attorneys' fees, plus the Indemnitee's legal costs and fees Incurred because there was a wrongful refusal on the Indemnitor's part. The provisions of this section shall survive the expiration or termination of this Agreement. SECTION 12. TERMINATION Either party may terminate this Agreement, with or without cause, upon providing the other party ninety (90) days advance written notice as its address set forth in section 16 of this Agreement. SECTION 13. MISCELLANEOUS PROVISIONS. A. Non-Waiver of Breach. The failure of either party to insist upon strict performance of any of the covenants and agreements contained in this Agreement, or to exercise any option conferred by this Agreement in one of more instances shall not be construed to be a waiver or relinquishment of those covenants, agreements or options, and the same shall be and remain in full force and effect. B. Resolution of Disputes and Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. If the parties are unable to settle any dispute, difference or claim arising from the parties' performance of this Agreement, the exclusive means of resolving that dispute, difference or claim, shall only be by filing suit exclusively under the venue, rules and jurisdiction of the King County Superior Court, King County, Washington, unless the parties agree in writing to an alternative dispute resolution process. In any claim or lawsuit for damages arising from the parties' performance of this Agreement, each party shall pay all its legal costs and attorney's fees incurred in defending or bringing such claim or lawsuit, in addition to any other recovery or award provided by law; provided, however, nothing in this paragraph shall be construed to limit a party's rights to indemnification under Section 11 of this Agreement. C. Written Notice. All communications regarding this Agreement shall be sent to the parties at the address listed on the signature page of the Agreement, unless notified to the contrary. Any written notice hereunder shall become effective three (3) business days after the date of mailing by registered or certified mail, and shall be deemed sufficiently given is sent to the addressee at the address stated in this Agreement or such other address as may be hereafter specified in writing. D. Assignment 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. E Modification. No modification or amendment of this Agreement shall be valid until the same is reduced to writing and executed with the same formalities as this present Agreement. F. Entire Agreement. The written provisions and terms of this Agreement, together with any Exhibits attached hereto, shall supersede all prior verbal statements of any officer of other representative of the City, and such statements shall not be effective or be construed as entering into or forming a part of or altering in any manner this Agreement. All of the above documents are hereby made a part of this Agreement G. Compliance with Laws. The parties agree to comply with all federal, state, and municipal laws, rules, and regulations that are now effective or in the future become applicable to the parties' performance under this Agreement, including in the case Lease Agreement ' Between Kent Municipal Court and Alliance One Page 4 of 6 i of Lessee, those applicable to Lessee's business, equipment, and personnel engaged in operations covered by this Agreement or accruing out of the performance of those operations. SECTION 14 SURRENDER OF PREMISES AND REMOVAL OF LESSEE'S PROPERTY. A. Upon termination or expiration of this Lease, the Lessee shall surrender the Premises to the City and promptly surrender and deliver to the City all keys that it may have to any and all parts of the Premises. B. The Premises shall be surrendered to the City in as good a condition as at the date of execution of this Lease, except for the effects of reasonable wear and tear, alterations, and repairs made with concurrence of the City, and property damage by fire and other perils insured in contracts or policies of all risk insurance C. Prior to the expiration of the term of this Lease, Lessee shall remove from the Premises, at its sole expense, all equipment, furnishings, and other personal property owned and placed in or on the Premises by the Lessee. , D. All City purchased and owned equipment and furnishings and any such equipment and furnishings situated within the premises subsequently purchased and owned by the City shall remain City property and be left on the Premises. SECTION 15. BREACH. A In the event that either party claims that the other is in a breach of any of the provisions of this Lease, notice of the breach shall be submitted to the party alleged to be in breach and the party in breach shall have thirty (30) days from receipt of the notice within which to make payments and/or correct any activity or conduct claimed by the other to have constituted a breach of this Lease. I B In the event that the party in breach shall fail to correct the activity claimed to constitute a breach of this Lease within thirty (30) days of receipt of the notice of breach, the party claiming breach may seek judicial remedy or specific performance; and/or pursue any other remedy available at law or equity. C. Notice of breach may be served on the other party by certified mail (return receipt requested) or by personal delivery on the Lessee setting forth the manner in which the Lessee in is default. D. Examples of a breach of the Lessee, which warrants termination of this Lease, if not cured, shall include: 1. Failure to pay Rent or other expenses when due; 2. Failure to comply with any law, regulation, policy, or order of any lawful governmental authority; 3. Failure to comply with any other provision of this Lease; or 4. Lessee vacates or abandons the Premises. Lease Agreement Between Kent Municipal Court and Alliance One Page 5 of 6 16. Notices. Notices to Lessor shall be sent to the following address: City of Kent Parks Department 220 Fourth Avenue South Kent, WA 98032 Notices to Lessee shall be sent to the following address: Alliance One Receivables Management, Inc 6565 Kimball Drive, Suite 200 P.O. Box 2449 Gig Harbor, WA 98335-4449 IN WITNESS, the parties below execute this Agreement, which shall become effective on the last date entered below. CITY OF KENT ALLIANCE ONE RECEIVABLES, INC By: By: iv1 Print N LGZr!fl-e, evrlfe Print Name I LVf d&.r /TiXq� Title: JI Date: 3 Z- Date: L'-olI- Approved as to Form Kent Law Depart n Lease Agreement Between Kent Municipal Court and Alliance One Page 6 of 6 REQUEST FOR MAYOR'S SIGNATURE KENT Please FIII in All Applicable Boxes Routing Information (ALL REQUESTS MUST FIRST BE ROUTED THROUGH THE LAW DEPARTMENT) Reviewed by Parks Director Originator: Rosalie Givens Phone (Originator): 5083 Date Sent: 3/9/2012 Date Required: 3/14/2012 Return Signed Document to: Rosalie CONTRACT TERMINATION DATE: 90 Days Written notice VENDOR NAME: Alliance One Receivables DATE OF COUNCIL APPROVAL: 2/7/2012 Management, Inc. Brief Explanation of Document: Lease Agreement for one (1) counter space at Kent Municipal Court. This is to benefit the Court in collecting court fines and related costs. All Contracts Must Be Routed Through The Law Department (This area to be completed by the Law Department) A Received: IRE Cv Approval of Law Dept.: Law Dept. Comments: RtT LAW Date Forwarded to Mayor: Z Shaded Areas To Be Completed By Administration Staff Received: ��.Recommendations and Comments: � f 2012 � IJ Disposition:✓9�w r���-��/��I '/��/—J Date Returned: