HomeMy WebLinkAboutL11-082 - Amendment - #9 - Aquatic Management Group, Inc. - Kent Pool Sub-Lease Agreement - 05/26/2019 Agreement Routing Form
KENT For Approvals,Signatures and Records Management
WASHIN GTON
This form combines&replaces the Request for Mayor's Signature and Contract Cover Sheet forms.
(Print on pink or cherry colored paper) {
Originator: Phung Huynh Department: Parks
Date Sent: June 20, 2019 Date Required: As Soon As Possible
R
� Authorized Director or Designee Date of
° May 11, 2011
IL to Sign: Council
aMayor Approval:
Budget 10006221.56250 Grant? Yes ✓❑ No
Account
Number: Type: N/A
Vendor or
Name: Aquatic Management Group Inc. Cate g y: Lease
= Vendor 060465 Sub-Category Amendment
o Number:
to E Project
L Name: Amendment No. Nine
°
= Project
C Details: Sub-!ease (Operationg Agreement) Addendum No. 9
a Agreement Basis for
w Amount: $25,849.45 Selection of
Contractor:
a Start Date: 5/26/2019 Termination Date: 7/31/2019
Notice required prior to Yes No Contract Number: L� ` e
disclosure?
Date R EC
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Comments:
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Y
ENT LAW DEPT.
Date Routed to the Mayor's Office: ECEIVED
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a Date Route to e City Clerk's Off'
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Date Sent to Originator: City of Kent
11 — 5-1AAk Office of the Mayor
Visit Documents.KentWA.gov to obtain copies of all agreements
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CITY CLERK
K E N T CITY OF KENT
w A 5 H I N G T o N 220 41h 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: Lll-082-009 (to be completed by Clerk's Office)
1. Responsible Department/Division: Parks and Recreation Dept. Admin.
2. Contact Person and Title: Phung Huynh, Accountant
Telephone Extension: 5102
3. Tenant (Customer) Name: Aquatic Management Group Inc
4. Tenant (Customer) Number: 060465
5. General Ledger Account Number: 10006221.56250
6. King County Tax Parcel Number: 202205-9066
7. Address of Parcel: 25316 101st Ave Se Kent WA
8. Type of Lease: Sub-Lease (Operating Agreement) Addendum No. 9
9. Council Authorization Date: 5/11/2011
10. Mayor Signature Date: 5/27/2011
SECTION 2 - LEASE DURATION AND IMPORTANT DATES:
11. Lease Start Date: 5/26/2019
12. Tenant Lease Option Renewal Notification Due Date: N/A
13. Lease Termination Date: 7/31/2019
14. Lease Duration: 2 Months
SECTION 3 - RENT DETERMINATION AND DUE DATE:
15. Rent: $25,849.45
16. Rent Due Date: Annual
17. Calculation of Rental Increase(s): N/A
Lease Agreement Cover Sheet—Page 1 of 2
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: N/A
23. Late Interest: N/A
SECTION 7 — OTHER LEASE CONSIDERATIONS:
Special lease considerations, e.g. non-monetary rent, etc
❑ None (check box if no considerations)
Lease Agreement Cover Sheet—Page 2 of 2
•
KENT
W A S H I N G T G N
AMENDMENT NO. NINE
NAME OF LESSEE: Aquatic Management Group, Inc.
CONTRACT NAME & PROJECT NUMBER: Kent Pool Sublease Agreement
ORIGINAL AGREEMENT DATE: May 27, 2011
This Amendment No. Nine is made between the City of Kent, a Washington municipal
corporation ("City"), and Aquatic Management Group, Inc., a Washington corporation ("Lessee"),
and amends the Kent Pool Sublease Agreement, dated May 27, 2011 ("Agreement").
I. RECITALS
1.1 Under the Agreement, the Lessee agreed to sublease the Kent Meridian Pool and its
associated areas (collectively defined in the Agreement as the "Premises") from the City, and to
occupy, manage, and operate the Premises as a public pool under the terms and conditions of the
Agreement. The initial term of the Agreement was for one year, but the Agreement allowed for
additional options to renew for subsequent one year terms upon the agreement of the parties
without additional Council approval being required. The Agreement has been renewed annually
since its original one year term.
1.2 The Agreement provided for Lessee's payment of annual rent in the amount of $1,
and state leasehold tax based upon the fair market value of the rent for the Premises, to be paid
on a quarterly basis. The Lessee agreed to maintain, operate, and improve the Pool, in accordance
with the Agreement's terms and conditions, and in exchange the City agreed to pay Lessee
$95,000 annually for its services, and up to an additional $25,000 for capital repairs and lifecycle
improvements to the Pool. This annual payment for operation services remained at $95,000 with
each annual renewal of the Agreement through May 25, 2013. Effective May 26, 2013, through
Amendment No. Seven', this annual payment was increased by $10,000 to $105,000 annually.
Effective May 25, 2018, through Amendment No. Eight, this annual payment was increased by an
additional $20,000 to its current annual payment amount of $125,000.
1.3 In order to extend is provision of services under the Agreement, it was necessary for
Lessee to extend its point of sale software licensing through July 31, 2019, and the City has agreed
to reimburse Lessee for this additional expense.
1.4 The City of Kent and the YMCA of Greater Seattle ("YMCA") have negotiated
agreements that provide public access opportunities to the YMCA's pool at the YMCA's new facility
at Morrill Meadows Park in Kent, once construction is complete and the facility is opened to the
public. As a result, the City wishes to discontinue and decommission the Kent Meridian Pool and
ultimately terminate the sublease and Lessee's maintenance and operation of the pool. This
Amendment No. Nine memorializes the parties' agreement as it relates to Lessee's sublease and
' Although that amendment is titled "Amendment No. Seven," there were only five amendments executed prior to that
amendment. The first amendment to the Agreement was titled "Amendment No. Two" in error, and each subsequent
amendment was consecutively numbered thereafter. In an effort to avoid confusion, the amendments have been
referred to by their titles, and not the order in which they follow the Agreement.
AMENDMENT - 1 OF 3
maintenance and operation of the pool through the date the City is able to formally decommission
the pool and transfer ownership and responsibility to the Kent School District.
H. AGREEMENT
The parties agree to amend the Agreement as follows:
2.1 Annual Fee Converted to Pro-Rated Fee. Section 5 of the Agreement is amended to
extend the lease, and change the fee remitted to Lessee for its maintenance, operation, and
improvements to the pool from an annual fee of $125,000 to a pro-rated monthly fee of
$10,416.66, which changes shall be effective May 26, 2019, and shall continue under the same
terms and conditions of the Agreement and its subsequent amendments until the City formally
decommissions the pool and ownership of the pool converts to the Kent School District. Within 30
days of the parties' full execution of this Agreement, the City will remit to Lessee payment in the
amount of $25,849.45, for Lessee's services under the Agreement through July 31, 2019, which
includes the following costs:
May of 2019 $2,016.13
June of 2019 $10,416.66
July of 2019 $10,416.66
Software update $3,000.00
In the event the pool is not able to be decommissioned by July 31, 2019, the Agreement,
including the lease term and the fee for maintenance and operation services, will continue on a
daily basis under the same terms and conditions as provided for by the Agreement and its prior
amendments, as further amended by this Amendment No. Nine.
2.2 Decommissioning of Pool. It is the parties' intent that the pool will be decommissioned
on or about August 16, 2019, and that Lessee will keep the pool fully operational and open to the
public through July 31, 2019. Lessee may use the time between August 1 and August 16, 2019,
to pack up and vacate the Premises. Toward that end, Section 7 and Section 21 of the Agreement
are amended to provide that Lesse's public pool operation responsibilities will end at 11:59 p.m.
on July 31, 2019, and its tenancy and lease of the Premises will terminate at 11:59 p.m. on August
16, 2019.
2.3 Acceptance of Amendment by Lessee. The Lessee accepts all requirements of this
Amendment by signing below, by its signature waives any protest or claim it may have regarding
this Amendment, and acknowledges and accepts that this Amendment constitutes full payment
and final settlement of all claims of any kind or nature arising from or connected with the
Agreement or affected by this Amendment. This Amendment, unless otherwise provided, does not
relieve the Lessee from strict compliance with the provisions of the original Agreement, as
amended.
AMENDMENT - 2 OF 3
2.4 Agreement Ratified and Reinstated. The Agreement, which terminated by its own
terms on May 25, 2019, is ratified, renewed, and reinstated through this Amendment No. Nine.
The term of the Agreement is extended as provided for in this Amendment No. Nine. All acts
consistent with the authority of the Agreement, its prior amendments, and this Amendment No.
Nine, and prior to the effective date of this Amendment No. Nine, are hereby ratified and
affirmed, and the terms of the Agreement, its prior amendments, and this Amendment No Nine
shall be deemed to have applied.
2.5 Remaining Provisions. Except as specifically amended by this Amendment No. Nine,
all remaining provisions of the Agreement and its prior amendments shall remain in full force
and effect.
The parties whose names appear below swear under penalty of perjury that they are
authorized to enter into this Amendment, which is binding on the parties of this contract.
IN WITNESS, the parties below have executed this Amendment, which will
become effective on the last date written below.
CONSULTANT/VENDOR: CITY OF KENT:
By: _ By: l.0
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/11 (signature) (signa ur
Print Name:_'&2 5 ��a� Print Name: 1ti
Its Az'/ , xo-f Its Mftl 01fL1
(title) (titl )
DATE: 6 5 DATE: �/-l//y
APPROVED AS TO FORM:
(applic if Mayor's signature required)
Ke a Department
AMENDMENT - 3 OF 3