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HomeMy WebLinkAboutCity Council Committees - Operations - 08/20/2013 • KEN T WASH NOTON Operations Committee Agenda Councilmembers: Dennis Higgins * Jamie Perry * Les Thomas, Chair August 20, 2013 4:00 p.m. Item Description Action Speaker Time Pace 1. Approval of Minutes YES 1 dated August 6, 2013. 2. Approval of Check Summary YES Reports 7/16/2013through 7/21/2013. 3. Lease Agreement with Way Back YES J. Watling 5 Min 3 Inn Foundation - Authorize Unless otherwise noted, the Operations Committee meets at 4:00 p.m. on the first and third Tuesday of each month. Council Chambers East, Kent City Hall, 220 4th Avenue South, Kent, 98032-5895. Dates and times are subject to change. For information please contact Satwinder Kaur at (253) 856-5705. Any person requiring a disability accommodation should contact the City Clerk's Office at (253) 856- 5725 in advance. For TDD relay service call the Washington Telecommunications Relay Service at 1-800-833-6388. This page intentionally left blank 1 KENT WASHINGTON OPERATIONS COMMITTEE MINUTES August 6, 2013 Committee Members Present: Les Thomas, Chair, and Jamie Perry. The meeting was called to order by Les Thomas at 4:10 p.m. 1. APPROVAL OF MINUTES DATED JULY 2, 2013. J. Perry moved to approve the Operations Committee minutes dated July 2, 2013. L. Thomas seconded the motion, which passed 2-0. 2. APPROVAL OF CHECK SUMMARY REPORTS DATED 6/16/2013 THROUGH 6/30/2013 AND 7/1/2013 THROUGH 7/15/2013. J. Perry moved to approve the check summary reports dated 6/16/2013 through 6/30/2013 and 7/1/2013 through 7/15/2013. L. Thomas seconded the motion and it passed 2-0. 3. PLAYGROUND EQUIPMENT GOODS ANS SERVICES AGREEMENT FOR SEVEN OAKS PARK-AUTHORIZE. J. Watling explained that the playground equipment at Seven Oaks is the oldest in the city. It has to be removed for safety reasons. The play equipment was selected by a panel of residents and city staff. The project will be funded within the budget. J. Perry moved to recommend the Council authorize the Mayor to sign the agreement with Landscape Structures, Inc. for $32,824.89 to purchase playground equipment for Seven Oaks Park, subject to final terms and conditions acceptable to the City Attorney and the Parks Director. L. Thomas seconded the motion, which passed 2-0. 4. ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT REQUEST FOR FULLTIME, BENEFITED, LIMITED TERM, OFFICE TECH I POSITION- PERMIT CENTER- APPROVE. B. Wolters presented the previous approved position. Some aspects of the position were changed after discussion with AFSCME. There will be no changes to the budget. This temporary Office Tech I position was created to assist with the increase in workload in the Economic & Community Development Department. J. Perry moved to recommend Council to authorize the Limited Term Office Tech I Position in the 2013-2014 budget in the Permit Center, Economic & Community Development Department. L. Thomas seconded the motion and it passed 2-0. S. 2013-2014 PROPERTY INSURANCE UPDATE (INFORMATION ONLY). C. Hills presented the information on the property insurance for all the city buildings except for the ShoWare center. He informed that the insurance rate decreased with the new vendor Lexington. 2 Operations Committee Minutes August 6, 2013 Page: 2 The deductible for the property insurance went up from $10k to $100k, but the overall premium decreased by 6%. 6. MID-YEAR BUDGET ADJUSTMENT ORDINANCE. B. Nachlinger requested the council to approve the technical gross budget adjustment ordinance. The consolidation is done twice a year. The overall increase included items previously approved by Council, including the Final Assessment Roll for LID 363, KC Flood Control District Grants and King County Conservation Futures Grant. The reduction in the consolidation is due to the adjustment to Debt Service for the 2012 bond refund. J. Perry moved to recommend the Council approve the consolidating budget adjustment ordinance for adjustments made between January 1, 2013 and June 30, 2013 reflecting an overall budget increase of $14,565,844. 7. JUNE FINANCIAL SUMMARY (INFORMATION ONLY). B. Nachlinger presented the May Financial Statement and mentioned that the General Fund is expected to end the year at 10.6% of the expenditure budget. Sales tax and Property Tax are trending above budget. Building permits and Plan check fees are also above budget. The meeting was adjourned at 4:34 p.m. by L. Thomas. Satwinder Kaur Operations Committee Secretary 3 Parks, Recreation and Community Services Jeff Watling, Director Phone: 253-856-5007 T Fax: 253-856-6050 KEN WASHINGTON Address: 220 Fourth Avenue S. Kent, WA. 98032-5895 DATE: August 20, 2013 TO: City Council Operations Committee FROM: Alex Ackley, Superintendent of Facilities THROUGH: Jeff Watling, Director, Parks, Recreation and Community Services SUBJECT: Lease Agreement with Way Back Inn Foundation - Authorize MOTION: I move to recommend Council authorize the Mayor to sign the Lease Agreement with the Way Back Inn Foundation, a non-profit corporation to lease the city-owned building located at 9815 South 252nd Street. SUMMARY: The Way Back Inn Foundation, a nonprofit agency serving Kent residents, is a tenant in the city-owned building located at 9815 South 252nd Street. The building, know as The Campus House provides temporary single family dwellings for homeless families with children under fourteen years of age. In consideration of this five-year agreement, the Lessee pays all costs associated with or arising out of the maintenance, operation, and agreed upon tenant improvements of the leased premise in lieu of paying rent, as outlined in Exhibit B, attached. EXHIBITS: Exhibit A: Property Description Exhibit B: Tenant Improvements Exhibit C: Insurance Requirements BUDGET IMPACT: None 4 CITY CLERK KENT CITY OF KENT O wqs„,„cron 220 41°Avenue South Kent, WA 98032 Fax: 253-856-6725 PHONE: 253-856-5725 Lease Agreement Cover Sheet This document is to be used in lieu of the Contract Cover Sheet SECTION 1 — CONTRACT PROCESSING AND TENANT SET-UP: Contract Number: (to be completed by Clerk's Office) 1. Responsible Department/Division: Parks/Facilities 2. Contact Person and Title: Alex Ackley Telephone Extension: 5081 3. Tenant (Customer) Name: Way Back Inn Foundation 4. Tenant (Customer) Number: 228001 5. General Ledger Account Number: 54006900.32500.0303 (Leasehold Excise Tax Only Invoiced) 6. King County Tax Parcel Number: 192205-9075 7. Address of Parcel: 9815 Southeast 252nd Street, Kent 8. Type of Lease: Rental Agreement - Residential Building Rental 9. Council Authorization Date: 10. Mayor Signature Date: SECTION 2 — LEASE DURATION AND IMPORTANT DATES: 11. Lease Start Date: September 3,2013 12. Tenant Lease Option Renewal Notification Due Date: N/A 13. Lease Termination Date: August 31, 2018 14. Lease Duration: September 1, 2013 through August 31, 2018. No option to extend lease term. SECTION 3 — RENT DETERMINATION AND DUE DATE: 15. Rent: No monetary rent. In lieu of monetary rent, tenant to make all stated improvements at its sole expense (outlined in Exhibit B to the Rental Lease Agreement Cover Sheet—Page 1 of 3 5 Agreement), and pay all costs associated with or arising out of the maintenance and operation of the leased premises. The established estimated fair market value rental is $1410.00 per month. 16. Rent Due Date: 1't of the Month (Leasehold Excise Tax Only) 17. Calculation of Rental Increase(s): N/A - No increases within the term of the Rental Agreement except with respect impact of potential changes in fair market value of rental on leasehold excise tax. 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: 803-09625.02 ® Sewer: 803-09625.02 (hooked up to City Sewer April 13, 2009) ❑ Drainage: Property below the 2,500 square foot minimum established for billing purposes ® Garbage: Allied Waste ® Electricity/Natural Gas: Puget Sound Energy SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES: Lease Agreement Cover Sheet—Page 2 of 3 6 22. Monetary Penalties: None 23. Late Interest: None SECTION 7 — OTHER LEASE CONSIDERATIONS: Special lease considerations, e.g. non-monetary rent, etc This is a non-monetary lease rental. Leasehold excise tax is calculated based on the estimated fair market value of the property and is billed to the tenant. ❑ None (check box if no considerations) Lease Agreement Cover Sheet—Page 3 of 3 7 LEASE AGREEMENT BETWEEN THE CITY OF KENT AND THE WAY BACK INN FOUNDATION THIS LEASE AGREEMENT ("Lease") is entered into by and between the CITY OF KENT, a municipal corporation of the State of Washington ("City"), and The Way Back Inn Foundation, a Washington non-profit corporation ("Tenant"). The City and Tenant agree as follows: AGREEMENT 1. PREMISES. 1.1 Premises Defined. The City leases to Tenant and Tenant leases from the City the real property described in Exhibit A, which is attached to this Lease and incorporated by this reference, and buildings located at 9815 South 252nd Street, Kent, Washington (collectively the "Premises" or "Leased Premises"). 1.2 Survey, Mates, and Plans. Tenant is not relying upon and the City is not making any representations about any survey, plat, diagram, and/or legal description provided by the City. 1.3 Inspection. The City makes no representation regarding the condition of the Premises. Tenant is currently in possession of the Premises under a prior lease agreement. Tenant shall be deemed to have accepted possession of the Premises in "as-is condition." 2. TERM. 2.1 Term Defined. The term of this Lease shall commence on September 1, 2013 ("Commencement Date"), and shall terminate on August 31, 2018, (the "Termination Date"), unless terminated sooner under the terms of this Lease. 2.2 Right to Terminate Early Without Cause. City and/or Tenant shall have the right to terminate this Lease at any time during the Term upon ninety (90) days' prior written notice of termination to the other party. 2.3 End of Term. Upon the expiration or termination of the Term, as applicable, Tenant shall surrender the Premises to the City in the same or better condition as on the Commencement Date, reasonable wear and tear excepted. Non-permanent appliances, personal property, and trade fixtures belonging to Tenant or Tenant's Residents shall be removed by the Tenant at the end of the Term. Any of the aforementioned items remaining at the end of the Term shall be moved off of the Premises by the City at the Tenant's expense. LEASE AGREEMENT - 1 (September2013) (Between City of Kent and The Way Back Inn Foundation) 8 2.4 Hold Over. If Tenant remains in possession of the Premises after the Termination Date, the occupancy shall not be an extension or renewal of the Term. The occupancy shall be a month-to-month tenancy, on terms identical to the terms of this Lease, which may be terminated by either party with thirty (30) days' written notice. The monthly rent during the holdover shall be the same rent that would be due if the Lease were still in effect and all adjustments in rent were made in accordance with its terms. If the City provides a notice to vacate the Premises in anticipation of the termination of this Lease or at any time after the Termination Date and Tenant fails to do so within the time set forth in the notice, then Tenant shall be a trespasser and shall owe the City all amounts due under applicable law. 3. LEASE PAYMENT. 3.1 Monthly Payment. During the Term hereof, Tenant may occupy the leased premises rent free; in consideration of which Tenant shall: a. pay leasehold tax at a rate established by the State of Washington, currently 12.84%, in the amount required by law if Tenant were to pay the monthly rental market rate of $1410.00. b. make all improvements at Tenant's sole expense, as outlined in Exhibit B; subject to a final inspection and the approval of the Kent Building Code Inspector and the Facilities Superintendent of the Kent Parks, Recreation and Community Services Department; and C. pay all costs associated with or arising out of the use, maintenance, and operation of the Leased Premises. 4. OTHER EXPENSES. During the Term, Tenant shall pay the following additional expenses: 4.1 Utilities. Tenant shall pay all fees charged for utilities in connection with the use and occupancy of the Premises, including but not limited to electricity, water, sewer, garbage, gas, and telephone service in a timely manner and prior to delinquency. 4.2 Proof of Payment. Tenant shall, if required by the City, furnish to the City receipts or other appropriate evidence establishing the payment of any amounts required to be paid under the terms of this Lease. 4.3 Failure to Pay. If Tenant fails to pay any of the amounts due under this Lease, the City may pay the amount due, and recover its cost from the Tenant. Tenant shall pay City said amounts due within thirty (30) days of written notice LEASE AGREEMENT - 2 (September2013) (Between City of Kent and The Way Back Inn Foundation) 9 from the City. If the City pays or advances any amounts for or on behalf of Tenant, including but not limited to leasehold taxes, taxes, assessments, insurance premiums, costs of removal and disposal of unauthorized materials, costs of removal and disposal of improvements pursuant to Section 6 below, or other amounts not paid when due, Tenant shall reimburse the City for the amount paid or advanced and shall pay interest on that amount at the rate of one percent (1%) per month from the date the City notifies Tenant of the payment or advance. S. USE. 5.1 Permitted Use. Tenant shall use the Leased Premises to provide temporary single-family dwellings for homeless families with children under fourteen years of age ("Residents') and for no other purpose without first obtaining the City's prior written consent. 5.2 Restrictions on Use. Tenant shall not cause or permit any damage to natural resources on the Premises. Tenant covenants and agrees that Hazardous Substances, as defined in Section 5.5, will not be used, stored, generated, processed, transported, handled, released, or disposed of in, on, under, or above the Premises, except in accordance with all applicable laws. Tenant shall also not cause or permit any filling activity to occur on the Premises. This prohibition includes any deposit of rock, earth, ballast, refuse, garbage, waste matter (including chemical, biological or hazardous substances, or toxic wastes), hydrocarbons, any other pollutants, or other matter in or on the Premises. Tenant shall neither commit nor allow waste to be committed to or on the Premises. If Tenant fails to comply with all or any of the restrictions on the use of the Premises set out in this Subsection 5.2, the City shall notify Tenant and provide Tenant a reasonable time to take all steps necessary to remedy the failure. If Tenant fails to do so in a timely manner, then the City may take any steps reasonably necessary to remedy this failure. Upon demand by the City, Tenant shall pay all costs of such remedial action, including but not limited to the costs of removing and disposing of any material deposited improperly on the Premises. The covenants contained in Section 5.2 shall survive expiration or termination of this Lease. 5.3 Conformance with Laws. Tenant shall, at all times, keep current and comply with all conditions and terms of any permits, licenses, certificates, regulations, ordinances, statutes, and other government rules and regulations regarding its use or occupancy of the Premises. 5.4 Liens and Encumbrances. Tenant shall keep the Premises free and clear of any liens and encumbrances arising out of or relating to its use or occupancy of the Premises. Should a lien be recorded against the Premises arising from actions by the Tenant, Tenant shall have thirty days after written notice by City to remove the lien. LEASE AGREEMENT - 3 (September2013) (Between City of Kent and The Way Back Inn Foundation) 10 5.5 Definition — Hazardous Substance. "Hazardous Substance" means any substance that now or in the future becomes regulated or defined under any federal, state, or local statute, ordinance, rule, regulation, or other law relating to human health, environmental protection, contamination or cleanup, including but not limited to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. 9601 and Washington's Model Toxics Control Act, RCW 70.105D.010. 5.6 Miscellaneous. Tenant shall maintain smoke detection devices and carbon monoxide detectors in accordance with the manufacturer's recommendations, including the replacement of batteries as required for the proper operation of the smoke detection device and carbon monoxide detectors. Tenant shall properly dispose of all rubbish, garbage, and other organic or flammable waste in a clean and sanitary manner at reasonable and regular intervals, and Tenant shall assume all costs of extermination and fumigation for infestation caused by Tenant. 6. IMPROVEMENTS. 6.1 Tenant-Owned Improvements. Tenant shall be responsible for all of Tenant's improvements to the Premises. So long as this Lease remains in effect, Tenant shall retain ownership of all authorized Tenant improvements and trade fixtures it may place on the Premises (collectively "Tenant-Owned Improvements"). Tenant-Owned Improvements shall not include any construction, reconstruction, alteration, or addition to the Premises by the City or any Unauthorized Improvements as defined in Subsection 6.4 below. No Tenant-Owned Improvements shall be placed on the Premises without the City's prior written consent. 6.2 Construction. Prior to any construction, alteration, replacement, removal or major repair of any improvements (whether City-Owned or Tenant- Owned), Tenant shall submit to the City its plans that describe the proposed activity. The City shall have fifteen (15) days in which to review the proposed plans. The plans shall be deemed approved and the requirement for the City's written consent shall be treated as waived, unless the City notifies Tenant otherwise within the fifteen (15) days. The City's consent and approval shall not be required for any routine maintenance or repair of improvements made by the Tenant pursuant to its obligation to maintain the Premises in good order and repair that does not result in the construction, alteration, replacement, removal, or major repair of any improvements on the Premises. Any improvements shall be done in conformity with the Uniform Building Code and City of Kent regulations. All work performed shall be done in a workmanlike manner. The provisions of this section do not apply to obviate any permit requirements that may apply to the proposed activity. LEASE AGREEMENT - 4 (September2013) (Between City of Kent and The Way Back Inn Foundation) 11 6.3 Removal. Tenant-Owned Improvements shall be removed by Tenant by the Termination Date, so long as such removal does not damage the Premises and the Premises is restored to its original condition or better. If the Tenant-Owned Improvements remain on the Premises after the Termination Date, they shall become the property of the City without payment by the City. Any Tenant-Owned Improvements remaining on the Premises at the end of the term that the City deems need to be removed shall be removed by the City at the Tenant's expense. 6.4 Unauthorized Improvements. Improvements made on the Premises without the City's prior consent pursuant to Subsection 6.2 or that are not in conformance with the plans submitted to and approved by the City ("Unauthorized Improvements") shall immediately become the property of the City, unless the City elects otherwise. Regardless of ownership of Unauthorized Improvements, the City may, at its option, require Tenant to sever, remove, and dispose of them. If Tenant fails to remove an Unauthorized Improvement upon request, the City may remove it and charge Tenant for the cost of removal and disposal. 7. ASSIGNMENT AND SUBLETTING. 7.1 City Consent Required. Tenant shall not sell, convey, mortgage, assign, pledge, sublet, or otherwise transfer or encumber all or any part of Tenant's interest in this Lease or the Premises without the City's prior written consent. In the event of such consent, each permitted transferee shall assume all obligations under this Lease. No assignment, sublet, or transfer shall release, discharge, or otherwise affect the liability of Tenant. 7.2 Event of Assignment. If Tenant is a corporation, a dissolution of the corporation or a transfer (by one or more transactions) of a majority of the voting stock of Tenant shall be deemed to be an assignment of this Lease. If Tenant is a partnership, a dissolution of the partnership or a transfer (by one or more transactions) of the controlling interest in Tenant shall be deemed an assignment of this Lease. 7.3 Rent Payments Following Assignment. The acceptance by the City of consideration following an assignment or other transfer shall not constitute consent to any assignment or transfer. S. INDEMNITY. 8.1 The City shall not be liable for any injury to any person or for any loss of or damage to any property (including property of Tenant or Tenant's Residents) occurring on or about the Premises and caused by or resulting from any act or omission by Tenant, Resident, officer, agent, employee, guest, invitee, or visitor of Tenant or Tenant's Resident, and Tenant agrees and covenants to indemnify, defend, and hold harmless the City and those persons who were, now are, or shall LEASE AGREEMENT - 5 (September2013) (Between City of Kent and The Way Back Inn Foundation) 12 be duly elected or appointed officials or members or employees or agents of the City, against and from any loss, damage, costs, charge, expense, liability, claim, demand, or judgments of whatsoever kind or nature whether to persons or property, to the extent arising on said Premises or on any areas adjoining the Premises that is under the control or use of Tenant pursuant to this Lease and arising out of or in connection with Tenant's use and occupancy of the Premises, including all legal costs and attorney fees, arising out of or in connection with this Lease, except for that portion of injuries and damages caused solely by the City's negligence. 8.2 Should a court of competent jurisdiction determine that this Lease is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of Tenant and the City, its officers, officials, employees, and volunteers, the Tenant's liability hereunder shall be only to the extent of the Tenant's negligence. IT IS FURTHER SPECIFICALLY AND EXPRESSLY UNDERSTOOD THAT THE INDEMNIFICATION PROVIDED HEREIN CONSTITUTES THE TENANT'S WAIVER OF IMMUNITY UNDER INDUSTRIAL INSURANCE, TITLE 51, RCW, SOLELY FOR THE PURPOSES OF THIS INDEMNIFICATION. This waiver has been mutually negotiated by the parties. 8.3 The provisions of this Section 8 shall survive the expiration or termination of this Lease. 9. INSURANCE. Tenant agrees to comply with the insurance requirements of Exhibit C at all times during the term of this Lease. 10. MAINTENANCE AND REPAIR. 10.1 The City's Repairs. The City shall not be required to make any alterations, maintenance, replacements, or repairs in, on, or about the Premises, or any part of the Premises, during the term of this Lease. 10.2 Tenant's Repairs, Alteration, Maintenance, and Replacement. (a) Tenant shall, at its sole cost and expense, keep and maintain the Premises, including the grounds, parking lot, and all improvements in good order and repair, in a clean, attractive, and safe condition. (b) Tenant shall, at its sole cost and expense, make any and all additions, repairs, alterations, maintenance, replacements, or changes to the Premises or to any improvements on the Premises that may be required by any public authority. LEASE AGREEMENT - 6 (September2013) (Between City of Kent and The Way Back Inn Foundation) 13 (c) All additions, repairs, alterations, replacements or changes to the Premises and to any improvements on the Premises shall be made in accordance with, and ownership shall be governed by Section 6 above. 11. DAMAGE OR DESTRUCTION. In the event of any damage to or destruction of the Premises or any improvements, Tenant shall promptly give written notice to the City. In the event of damage or destruction that renders the Premises unfit for Tenant's use, Tenant may terminate this Lease upon thirty (30) days' written notice to the City. 12. DEFAULT AND REMEDIES. 12.1 Event of Default. Tenant shall be in default of this Lease on the occurrence of any of the following: (a) Failure of Tenant to make the improvements as set forth in Exhibit B; (b) Failure to observe or perform any of the covenants, conditions or provisions of this Lease, where such failure shall continue for a period of thirty (30) days after written notice from City to cure the default; (c) Failure to comply with any law, regulation, policy, or order of any lawful governmental authority; (d) Failure to comply with any other provision of this Lease; (e) If proceedings are commenced by or against Tenant under any bankruptcy act or for the appointment of a trustee or receiver of Tenants' property. 12.2 City's Remedies Upon Default. Upon an Event of Default, the City may terminate this Lease with thirty (30) days' written notice to terminate and remove Tenant by summary proceedings or otherwise. The City may also, without terminating this Lease, relet the Premises on any terms and conditions as the City in its sole discretion may decide are appropriate. If the City elects to relet, rent received by it shall be applied: (1) to the payment of any indebtedness other than rent due from Tenant to the City; (2) to the payment of any cost of such reletting; and 3) to the payment of the cost of any alterations and repairs to the Premises. Any balance shall be held by the City and applied to Tenant's future rent as it becomes due. Tenant shall be responsible for any deficiency created by the reletting during any month and shall pay the deficiency monthly. The City's reentry or repossession of the Premises under this subsection shall not be construed as an election to terminate this Lease or cause a forfeiture of rents or other charges to be paid during the balance of the Term, unless the City gives a written notice of LEASE AGREEMENT - 7 (September2013) (Between City of Kent and The Way Back Inn Foundation) 14 termination to Tenant or termination is decreed by legal proceedings. The City may at any time after reletting elect to terminate this Lease for the previous Event of Default with ten (10) days' written notice. 13. ENTRY BY THE CITY. The City shall have the right to enter the Premises at any reasonable hour to inspect for compliance with the terms of this Lease upon forty-eight (48) hours notice, unless an emergency exists in which event the City may enter immediately. 14. NOTICE. Any notices required or permitted under this Lease may be personally delivered, delivered by facsimile machine, or mailed by certified mail, return receipt requested, to the following addresses or to such other places as the parties may direct in writing from time to time: The City: City of Kent Parks, Recreation and Community Services Attn: Superintendant of Facilities 220 Fourth Avenue South Kent, Washington 98032 Tenant: The Way Back Inn Foundation c/o Dorothy Francis P.O. Box 621 Renton, WA 98057-0621 A notice shall be deemed given and delivered upon personal delivery, upon receipt of a confirmation report if delivered by facsimile machine, or three (3) days after being mailed as set forth above, whichever is applicable. 15. MISCELLANEOUS. 15.1 Authority. Tenant and the person or persons executing this Lease on behalf of Tenant represent that Tenant is qualified to do business in the State of Washington, that Tenant has full right and authority to enter into this Lease, and that each and every person signing on behalf of Tenant is authorized to do so. 15.2 Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties, their successors and assigns. 15.3 Headings. The headings used in this Lease are for convenience only and in no way define, limit, or extend the scope of this Lease or the intent of any provision. 15.4 Entire Agreement. This Lease, including the exhibits and addenda, if any, contains the entire agreement of the parties. LEASE AGREEMENT - 8 (September2013) (Between City of Kent and The Way Back Inn Foundation) 15 15.5 Waiver. The waiver by the City of any breach or default of any term, covenant, or condition of this Lease shall not be deemed to be a waiver of such term, covenant, or condition; of any subsequent breach or default of the same; or of any other term, covenant, or condition of this Lease. The City's acceptance of a rental payment shall not be construed to be a waiver of any preceding or existing breach other than the failure to pay the particular rental payment that was accepted. 15.6 Cumulative Remedies. The rights and remedies of the City under this Lease are cumulative and in addition to all other rights and remedies afforded to the City by law or equity or otherwise. 15.7 Time is of the Essence. TIME IS OF THE ESSENCE as to each and every provision of this Lease. 15.8 Language. The word "Tenant" as used in this Lease shall be applicable to one or more persons, as the case may be. The singular shall include the plural, and the neuter shall include the masculine and feminine. If there is more than one Tenant, their obligations shall be joint and several. The word "persons," whenever used, shall include individuals, firms, associations, and corporations. 15.9 Invaliditv. If any provision of this Lease shall prove to be invalid, void, or illegal, it shall in no way affect, impair, or invalidate any other provision of this Lease. 15.10 Applicable Law and Venue. This Lease shall be interpreted and construed in accordance with the laws of the State of Washington. Any reference to a statute shall mean that statute as presently enacted or hereafter amended or superseded. Venue for any action arising out of or in connection with this Lease shall be in the Superior Court for King County, Washington. 15.11 Modification. Any modification of this Lease must be in writing and signed by the parties. The City shall not be bound by any oral representations or statements. 15.12 Survival of Covenants. The covenants contained herein survive the termination or expiration of the Lease for the applicable statute of limitation periods. 15.13 Quiet Enjoyment. The City covenants and agrees that Tenant, upon performing the terms and conditions of the Lease, may peacefully hold and enjoy the Premises during said term without any interruption by the City, its successors or assigns, or any person or company lawfully claiming by or through it. LEASE AGREEMENT - 9 (September2013) (Between City of Kent and The Way Back Inn Foundation) 16 15.14 Duplicate Originals. This Lease Agreement may be executed in duplicate originals. THIS AGREEMENT requires the signature of all parties and is executed as of the date of the last signature below. CITY OF KENT THE WAY BACK INN FOUNDATION By: By: Print Name: Suzette Cooke Print Name: Its: Mayor Its: Date: Date: (Notary Acknowledgements Appear on Next Page) LEASE AGREEMENT - 10 (September2013) (Between City of Kent and The Way Back Inn Foundation) 17 STATE OF WASHINGTON ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that Suzette Cooke 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 as the Mayor of the City of Kent to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. (Signature) NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires LEASE AGREEMENT - 11 (September2013) (Between City of Kent and The Way Back Inn Foundation) 18 STATE OF WASHINGTON ) ss. COUNTY OF KING ) I certify that I know or have satisfactory evidence that is the person who appeared before me, and said person acknowledged that (he/she) signed this instrument, on oath stated that (he/she) was authorized to execute the instrument and acknowledged it as the of to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. Dated: -Notary Seal Must Appear Within This Box- IN WITNESS WHEREOF, I have hereunto set my hand and official seal the day and year first above written. (Signature) NOTARY PUBLIC, in and for the State of Washington, residing at My appointment expires P:\Civil\Files\Open Files\0733-Human Services-2013\Way BackInnFoundation-Lease.2013.doc LEASE AGREEMENT - 12 (September2013) (Between City of Kent and The Way Back Inn Foundation) 19 'y HOME NPN S_RVICES D[pECTORY CONTACT Search Xing County Department of Asses-9ments Fair,Equitable,and Understandable Property Valuations i �_YN �.•4;=cv'.�r V lour I lAsu=meurt, .O._DIh—_re S v is : aRPa r P rty anag- MenSearh Property T.Bill rapThi PrP r/ Glos erI , orTeo. Area Report�Print Propartq petnll Reference Links: !PARCEL DATA — � -- ' I Kinc Counbl Tax Links =ar<el 192.A5-sots J tlictlp FRfr j PYooefb/T.=e Advisor Nara -- kwrclTr of L vycoee tszs '— _site Aeemss 9014 SE 262ND ST 98030 ;Pmreey Typa 1R IAlashinalon State Plot Brack I etting P pdtlylslA - - O'1905(6NAPomisal Olsltict) Plat ItLet see NT wunder sM1 P'Ran9 sE-19 25 Rw nu (External • las ' ton State Board of Tax Aooeals LegaLDescnptlon - - (External link) N 112 OF NE 114 OF SE 1/4 OF SE 114 LESS W 100 FT OF E 450 FT LESS ST • Board of I;Plat Block: AaoealsiEnuali¢c ti on '�.Plat Lot: — _.__ Districts Resort __-.-__. LAND DATA '. • iNlag • Recorders Office Hkdrest S Bel Use As if VAmanl SINGLE FAMILY P 19eU bl o Scannetl e imags o mr&Best u As Improved ;PRESENT US Unbutton NO __— stedreand other 9 Present Use ;Single Fau,ly(R U IZPne) '.Residents plos shape ENO me dCCtl m euls -0 Len- ---- ---------------- ______. ____ _______ Does Wntl Value 0?2,9C0 •Neter ;WAIER DI- R.CT ease Land P clad 95 5 resepll PU2LIC __ —.__ - �a.,,LpmJVdIud0vIp 1MC09 Read Access PUBLIO i Bate Land V eTa%Tear 2099 P rrc n9 .. -----------------.. --- [,.,it _ SrlFl 1 it,I Steel Surface GRAVEL ! Acres 499 -.. _ ... __.. Views Wale rtront I Ramer ,_.. iweleRrent Lo Uhn ----- Tornmemal Waterfrcnt Fmtaos Olyr,do, Lot Depth Factor @ S -- 0,,.deaVAI.,fentB k Settle l Skyllad Ttl IaM1 re —_ ....___. ____ _ _. -------_-_ I`u9et Sound V! dmntR t a dAccess ---------------- Lakebla,him,ten WaterfrontA Metals NO _. 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Yen,fau.'ald] -t0 ,stories i1 Lvrg Units I : IGmde 1Avtta9 C dsVadanl e1 j Condition IAvemOe ' http://iiifo.I,iligeoLmty.gov/Assessor/eRea]Property/Detail.aspx?PareciNbr=1922059075 8/14/2013 20 EXHIBIT B TENANTIMPROVEMENTS WAY BACK INN 9815 South 252"d Street General/Routine Maintenance to be performed on an on-going basis • Ensure that routine cleaning and custodial work is completed within the interior of the building • Paint interior walls and ceilings • Maintain smoke detectors per Kent City Code • Remove tree limbs • Provide and spread bark mulch around all landscaping • Clean gutters and downspouts • Clean roof • General clean up of yard and out-building • Quarterly review of plumbing, electrical, structural, fire extinguishers • Professionally clean inside of house Capital Improvements to be completed during the term of the lease • Clean and paint fascia — entire building (2014) • Repair floor in laundry area • Terminate unused wiring and put covers on open electrical boxes in garage (2013) • Add GFI outlet in back patio area (2013) • Kitchen lights need to have shades installed • Have a metal cap made for the chimney and secure loose bricks (2014) • Prune apple tree when time is appropriate Rental Agreement Exhibit B Way Back Inn August 2013 21 EXHIBIT C INSURANCE REQUIREMENTS FOR STANDARD LEASE 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 City of Kent facilities. 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. 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 $2,000,000 each occurrence, $2,000,000 general aggregate. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance 1. The Lessee's insurance coverage shall be primary insurance with respect to the City. Any Insurance or self-insurance coverage maintained by the City shall be excess of the Lessee's insurance and shall not contribute with it. 2. The Lessee's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City. zz EXHIBIT C (Continued) D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than ANII. E. Verification of Coverage 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. The City shall be named as an Additional Insured on the Amendatory Endorsement provided by the Insurer. F. Waiver of Subrogation Lessee and 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 City shall purchase and maintain during the term of the lease, all-risk property insurance covering City of Kent property.