HomeMy WebLinkAbout09-24-18 Council Workshop
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CALL TO ORDER
Mayor Barb Tolbert
PLEDGE OF ALLEGIANCE
ROLL CALL
Mayor Barb Tolbert – Kristin
APPROVAL OF THE AGENDA
Mayor Pro Tem Marilyn Oertle
INTRODUCTION OF SPECIAL GUESTS AND PRESENTATIONS
WORKSHOP ITEMS – NO FINAL ACTION WILL BE TAKEN
1. Fire Department Grants Update ATTACHMENT A
Staff Presentation: Dave Kraski
2. Interlocal Agreement with South Snohomish County Regional Fire ATTACHMENT B
Authority for Purchase of Power Cots
Staff Presentation: Dave Kraski
Council Liaison: Sue Weiss
3. Fire Station #48 Lease ATTACHMENT C
Staff Presentation: Paul Ellis
Council Liaison: Jesica Stickles
4. Amendment to Interlocal Agreement with Snohomish County for ATTACHMENT D
Tourism Promotion Area (TPA)
Staff Presentation: Paul Ellis
Council Liaison: Marilyn Oertle
5. Authority to apply for City of Arlington Tourism Grant ATTACHMENT E
Staff Presentation: Sarah Lopez
Council Liaison: Marilyn Oertle
6. Emergency Water Repair for Farmstead Community ATTACHMENT F
Staff Presentation: Jim Kelly
Council Liaison: Josh Roundy
Arlington City Council Workshop
Monday, September 24, 2018 at 7:00 pm
City Council Chambers – 110 E 3rd Street
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ADA coordinator at (360) 403‐3441 or 711 (TDD only) prior to the meeting date if special accommodations are required.
7. August Financial Report ATTACHMENT G
Staff Presentation: Kristin Garcia
8. Miscellaneous council items
PUBLIC COMMENT
For members of the public who wish to speak to the Council. Please limit your remarks to three minutes.
COUNCILMEMBER REPORTS
EXECUTIVE SESSION
RECONVENE
ADJOURNMENT
Mayor Barb Tolbert
City of Arlington
Council Agenda Bill
Item:
WS #1
Attachment
A
COUNCIL MEETING DATE:
September 24, 2018
SUBJECT:
Fire Department Grants Update
ATTACHMENTS:
Memo
DEPARTMENT OF ORIGIN
Fire and EMS
EXPENDITURES REQUESTED:
BUDGET CATEGORY: N/A
BUDGETED AMOUNT: N/A
LEGAL REVIEW:
DESCRIPTION:
Update for council on the success of the grant awards for the Fire Department.
HISTORY:
Since early 2018 the Fire Department has submitted for four different grants to fund staffing and
equipment programs. In the last few weeks we have learned we had tremendous good fortune and
were successful on all four grants.
ALTERNATIVES:
None.
RECOMMENDED MOTION:
Workshop; discussion only.
City of Arlington
Council Agenda Bill
Item:
WS #2
Attachment
B
COUNCIL MEETING DATE:
September 24, 2018
SUBJECT:
Interlocal Agreement with South County Fire for EMS Power Cots
ATTACHMENTS:
Interlocal Agreement with South County Fire and Resolution
DEPARTMENT OF ORIGIN
Fire
EXPENDITURES REQUESTED: Matching Grant Funds, not in ‘18 budget.
BUDGET CATEGORY: Ambulance Utility Fee Funds
BUDGETED AMOUNT: $6,230.00 match & Approx. $,4,000.00
installation. ($10,230.00)
LEGAL REVIEW:
DESCRIPTION:
Council is asked to consider approval of an inter‐local agreement that will allow the Arlington Fire
Department to participate in a cooperative purchase with South County Fire for EMS power cots.
HISTORY:
The Arlington Fire Department was recently awarded a FEMA Assistance to Firefighters Grant for 3
EMS power lift cots. The total grant award is $124,615.00 with a required 5% department match of
$6,230.00. South County has recently purchased 18 of these units and conducted an extensive
product review and secured a purchase price that is advantageous for us to continue. The grant
award will cover almost all of the project. We are asking council to approve the use of Ambulance
Utility Fees to cover the required grant match and installation fees estimated at $10,230.00. Two of
the installations are “retro” and will be time and material. An exact cost cannot be quantified.
ALTERNATIVES:
Deny the grant or purchase on our own without the interlocal.
RECOMMENDED MOTION:
Workshop; discussion only.
RESOLUTION NO. 2018-XXX 1
RESOLUTION NO. 2018-XXX
A RESOLUTION OF THE CITY OF ARLINGTON APPROVING THE TERMS AND
CONDITIONS OF AN INTERLOCAL AGREEMENT BETWEEN THE SOUTH
SNOHOMISH COUNTY FIRE & RESCUE (SSCF&R) AND THE CITY OF ARLINGTON
PROVIDING FOR COOPERATIVE PURCHASING PROGRAM FOR GOODS AND
SERVICES; DESIGNATING THE CENTRAL PURCHASING COORDINATOR AS
OFFICIAL REPRESENTATIVE OF THE CITY OF ARLINGTON RELATING TO THE
PROGRAM
WHEREAS, the City Council of the City of Arlington (“City”) has been presented a
proposed Interlocal agreement by and between the South Snohomish County Fire & Rescue
(SSCF&R), and the City finds said Interlocal to be acceptable and in the best interests of the City
and its citizens; and
WHEREAS, the City Council of the City of Arlington, WA, pursuant to the authority
granted under RCW Chapter 39.34, desires to participate in the described cooperative purchasing
program, whose lead agency is South Snohomish County Fire & Rescue, and in the opinion of
the City participation in the program will be highly beneficial to the taxpayers through the
anticipated savings to be realized;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF ARLINGTON, AS FOLLOWS:
1. The terms and conditions of the Interlocal Agreement has been reviewed by the
City Council of the City of Arlington and found to be acceptable and in the best
interests of the City and its citizens and is in all respects approved.
2. The Central Purchasing Coordinator of the City, Kurt Patterson, acting under the
direction of the City Council, is hereby designated to act for the City of Arlington in
all matters relating to South Snohomish County Fire & Rescue, including the
designation of specific contracts in which the City desires to participate.
3. This resolution shall be effective upon its passage and approval.
RESOLUTION NO. 2018-XXX 2
APPROVED by the Mayor and City Council of the City of Arlington this ______ day of
____________________, 2018.
CITY OF ARLINGTON
____________________________________
Barbara Tolbert, Mayor
ATTEST:
_________________________________
Kristin Banfield, City Clerk
APPROVED AS TO FORM:
__________________________________
Steven J. Peiffle, City Attorney
City of Arlington
Council Agenda Bill
Item:
WS #3
Attachment
C
COUNCIL MEETING DATE:
September 24, 2018
SUBJECT:
Fire Station #48 Lease Agreement
ATTACHMENTS:
Lease Agreement, Addendum Amendment, and Rent Rider
DEPARTMENT OF ORIGIN
Fire
EXPENDITURES REQUESTED: Continued Monthly Lease, in 19’ & 20 Budget
BUDGET CATEGORY: N/A
BUDGETED AMOUNT: N/A
LEGAL REVIEW:
DESCRIPTION:
Our current lease expires on 9/30/2018. As discussed at the council retreat in March. Fire Station #48
has been sold and will close escrow on October 3rd. Our new landlord is extending our existing lease
agreement for a final 3‐years with no cost increase in exchange the fire department abandoning some
space it currently occupies. The new landlord will access and use that space from his side of the
building.
HISTORY:
In the fall of 2008 the City of Arlington leased the vacant warehouse space and built it out to be a
temporary fire station. This will be our third and final lease agreement. The new property owner is
our neighbor to the south and has plans to utilize the entire space for his construction company.
ALTERNATIVES:
None.
RECOMMENDED MOTION:
Workshop; discussion only. At the October 1council meeting, the recommended motion will be, “I
move to approve the Station #48 lease agreement, and authorize the Mayor to sign it.”
THIS LEASE AGREEMENT (the “Lease”) is entered into and effective as of this 1st day of
October, 2018, between Powers Investing LLC. 18824 Smokey Point Blvd Suite 101
Arlington, WA 98223 “Landlord”), and City of Arlington, 238 N. Olympic, Arlington, WA
98223 (“Tenant”). Landlord and Tenant agree as follows:
1. LEASE SUMMARY.
a. Leased Premises. The leased commercial real estate (the “Premises”)
consist of the real property legally described on attached Exhibit A, and all
improvements thereon, and commonly described as 18824 Smokey Point
Blvd., Unit No. 4, Arlington, WA 98223.
b. Lease Commencement Date. The term of this Lease shall be for a period
of 36 months and shall commence on October 1, 2018 or such earlier or later date
as provided in Section 3 (the “Commencement Date”).
c. Lease Termination Date. The term of this Lease shall terminate at midnight
on September 30th, 2021 or such earlier or later date as provided in Section 3 (the
“Termination Date”). Tenant shall have no right or option to extend this Lease,
unless otherwise set forth in a rider attached to this Lease.
d. Base Rent. The base monthly rent shall be: $ 3,252.00, or according to the
Rent Rider attached hereto (“Base Rent”). Rent shall be payable at Landlord’s
address shown in Section 1(h) below, or such other place designated in writing by
Landlord.
e. Security Deposit. Tenant has paid $2975.00 as a security deposit
pursuant to Section 5 below.
f. Permitted Use. The Premises shall be used only for City Business, including
Public Safety and for no other purpose without the prior written consent of
Landlord (the “Permitted Use”).
g. Notice and Payment Addresses.
Landlord: Powers Investing, LLC
18824 Smokey Point Blvd Suite 101
Arlington, WA 98223
Mike Powers 360 631‐3655
Email: mike@alliancepartitions.com
Tenant: City of Arlington
238 N. Olympic
Arlington, WA 98223
Chief Dave Kraski 360‐403‐3607
Email: dkraski@arlingtonwa.gov
2. PREMISES.
a. Lease of Premises. Landlord leases to Tenant, and Tenant leases from
Landlord the Premises upon the terms specified in this Lease.
b. Acceptance of Premises. Except as specified elsewhere in this Lease,
Landlord makes no representations or warranties to Tenant regarding the
Premises, including the structural condition of the Premises or the condition of all
mechanical, electrical, and other systems on the Premises. Except for any tenant
improvements to be completed by Landlord as described on attached Exhibit B (the
“Landlord’s Work”), Tenant shall be responsible for performing any work necessary
to bring the Premises into a condition satisfactory to Tenant. By signing this Lease,
Tenant acknowledges that it has had an adequate opportunity to investigate the
Premises; acknowledges responsibility for making any corrections, alterations and
repairs to the Premises (other than the Landlord’s Work); and acknowledges that
the time needed to complete any such items shall not delay the Commencement
Date.
c. Tenant Improvements. Attached Exhibit B sets forth all Tenant’s Work, if
any, and all tenant improvements to be completed by Tenant (the “Tenant’s Work”),
if any, that will be performed on the Premises. Responsibility for design, payment
and performance of all such work shall be as set forth on attached Exhibit B. If
Tenant fails to notify Landlord of any defects in the Landlord’s Work within thirty
(30) days of delivery of possession to Tenant, Tenant shall be deemed to have
accepted the Premises in their then condition. If Tenant discovers any major defects
in the Landlord’s Work during this 30‐day period that would prevent Tenant from
using the Premises for the Permitted Use, Tenant shall notify Landlord in writing
and the Commencement Date shall be delayed until after Landlord has notified
Tenant that Landlord has corrected the major defects and Tenant has had five (5)
days to inspect and approve the Premises. The Commencement Date shall not be
delayed if Tenant’s inspection reveals minor defects in the Landlord’s Work that will
not prevent Tenant from using the Premises for the Permitted Use. Tenant shall
prepare a punch list of all minor defects in Landlord’s Work and provide the punch
list to Landlord, which Landlord shall promptly correct.
3. TERM. The term of this lease shall commence on the commencement
date specified in section 1.
4. RENT.
a. Payment of Rent. Tenant shall pay Landlord without notice, demand,
deduction, or offset, in lawful money of the United States, the monthly Base Rent
stated in Section 1 in advance on or before the first day of each month during the
Lease term beginning on (check one): the Commencement Date, or (if no date
specified, then on the Commencement Date), and shall also pay any other
additional payments due to Landlord (“Additional Rent”), including Operating Costs
(collectively the “Rent”) when required under this Lease. Payments for any partial
month at the beginning or end of the Lease shall be prorated. All payments due to
Landlord under this Lease, including late fees and interest, shall also constitute
Additional Rent, and upon failure of Tenant to pay any such costs, charges or expenses,
Landlord shall have the same rights and remedies as otherwise provided in this Lease
for the failure of Tenant to pay rent.
b. Triple Net Lease. This Lease is what is commonly called a “Net, Net, Net” or
“triple‐net” Lease, which means that, except as otherwise expressly provided herein,
Landlord shall receive all Base Rent free and clear of any and all other impositions,
taxes, liens, charges or expenses of any nature whatsoever in connection with the
ownership and operation of the Premises. In addition to Base Rent, Tenant shall pay
to the parties respectively entitled thereto, or satisfy directly, all Additional Rent and
other impositions, insurance premiums, repair and maintenance charges, and any
other charges, costs, obligations, liabilities, requirements, and expenses,, which arise
with regard to the Premises or may be contemplated under any other provision of the
Lease during its term, except for costs and expenses expressly made the obligation of
Landlord in this Lease.
c. Late Charges; Default Interest. If any sums payable by Tenant to Landlord
under this Lease are not received within five (5) business days after their due date,
Tenant shall pay Landlord an amount equal to the greater of $100 or five percent (5%)
of the delinquent amount for the cost of collecting and handling such late payment in
addition to the amount due and as Additional Rent. All delinquent sums payable by
Tenant to Landlord and not paid within five (5) business days after their due date
shall, at Landlord’s option, bear interest at the rate of fifteen percent (15%) per
annum, or the highest rate of interest allowable by law, whichever is less (the “Default
Rate”). Interest on all delinquent amounts shall be calculated from the original due
date to the date of payment.
d. Less Than Full Payment. Landlord’s acceptance of less than the full amount
of any payment due from Tenant shall not be deemed an accord and satisfaction or
compromise of such payment unless Landlord specifically consents in writing to
payment of such lesser sum as an accord and satisfaction or compromise of the
amount which Landlord claims. Any portion that remains to be paid by Tenant shall
be subject to the late charges and default interest provisions of this Section 4.
5. SECURITY DEPOSIT. Upon execution of this lease, tenant shall deliver to landlord
the security deposit specified in section 1 above. Landlord’s obligations with
respect to the security deposit are those of a debtor and not of a trustee, and
landlord may commingle the security deposit with its other funds. If tenant
breaches any covenant or condition of this lease, including but not limited to the
payment of Rent, landlord may apply all or any part of the security deposit to the payment
of any sum in default and any damage suffered by landlord as a result of tenant’s breach.
Tenant acknowledges, however, that the security deposit shall not be considered as a
measure of tenant’s damages in case of default by tenant, and any payment to landlord
from the security deposit shall not be construed as a payment of liquidated damages for
tenant’s default. If landlord applies the security deposit as contemplated by this section,
tenant shall, within five (5) days after written demand therefore by landlord, deposit with
landlord the amount so applied. If tenant complies with all of the covenants and conditions
of this lease throughout the lease term, the security deposit shall be repaid to tenant
without interest within thirty (30) days after the surrender of the premises by tenant in
the condition required hereunder by section 11 of this lease.
6. USES. The premises shall be used only for the permitted use specified in section 1
above, and for no other business or purpose without the prior written consent of
landlord. 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. Tenant shall not commit or allow to be committed
any waste upon the premises, or any public or private nuisance. Tenant 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 employees,
officers, agents, servants, contractors, customers, clients, visitors, guests, or other
licensees or invitees or to injure or annoy such persons.
7. COMPLIANCE WITH LAWS. Tenant shall not cause or permit the premises to be
used in any way which violates any law, ordinance, or governmental regulation or
order. Landlord represents to tenant that, as of the commencement date, to
landlord’s knowledge, but without duty of investigation, and with the exception of
any tenant’s work, the premises comply with all applicable laws, rules, regulations,
or orders, including without limitation, the Americans with Disabilities Act, if
applicable, and landlord shall be responsible to promptly cure at its sole cost any
noncompliance which existed on the commencement date. Tenant shall be
responsible for complying with all laws applicable to the premises as a result of the
permitted use, and tenant shall be responsible for making any changes or alterations
as may be
Required by law, rule, regulation, or order for tenant’s permitted use at its sole cost
and expense. Otherwise, if changes or alterations are required by rule, law,
regulation, or order unrelated to the permitted use, landlord shall make changes
and alterations at its expense.
8. UTILITIES. Landlord shall not be responsible for providing any utilities to the
premises and shall not be liable for any loss, injury or damage to person or property
caused by or resulting from any variation, interruption, or failure of utilities due to
any cause whatsoever, and rent shall not abate as a result thereof, except to the
extent due to the intentional misconduct or gross negligence of landlord. Tenant
shall be responsible for determining whether available utilities and their capacities
will meet tenant’s needs. Tenant shall install and connect, if necessary, and directly
pay for all water, sewer, gas, janitorial, electricity, garbage removal, heat, telephone,
and other utilities and services used by tenant on the premises during the term,
whether or not such services are billed directly to tenant. Tenant will also procure,
or cause to be procured, without cost to landlord, all necessary permits, licenses or
other authorizations required for the lawful and proper installation, maintenance,
replacement, and removal on or from the premises of wires, pipes, conduits, tubes,
and other equipment and appliances for use in supplying all utilities or services to
the premises. Landlord, upon request of tenant, and at the sole expense and liability
of tenant, shall join with tenant in any reasonable applications required for obtaining
or continuing such utilities or services.
9. TAXES. Tenant shall pay all taxes (defined below) applicable to the premises during
the lease term. All payments for taxes shall be made at least ten (10) days prior to
their due date. Tenant shall promptly furnish landlord with satisfactory evidence
that taxes have been paid. If any taxes paid by tenant cover any period of time before
or after the expiration of the term, tenant’s share of those taxes paid will be prorated
to cover only the period of time within the tax fiscal year during which this lease was
in effect, and landlord shall promptly reimburse or credit tenant to the extent
required. If tenant fails to timely pay any taxes, landlord may pay them, and tenant
shall repay such amount to landlord upon demand. Landlord may also elect to pay all
such taxes directly to the appropriate taxing authority/ies and receive
reimbursement thereof from tenant within ten (10) days after invoice, either of the full
amount paid or at landlord’s election in equal monthly installments.
The term “Taxes” shall mean: (i) any form of tax or assessment imposed on the Premises by
any authority, including any city, county, state or federal government, or any improvement
district, as against any legal or equitable interest of Landlord or Tenant in the Premises or
in the real property of which the Premises are a part, or against rent paid for leasing the
Premises; and (ii) any form of personal property tax or assessment imposed on any
personal property, fixtures, furniture, tenant improvements, equipment, inventory, or
other items, and all replacements, improvements, and additions to them, located on the
Premises, whether owned by Landlord or Tenant. “Taxes” shall exclude any net income tax
imposed on Landlord for income that Landlord receives under this Lease.
Tenant may, upon reasonable prior notice to Landlord, contest the amount or validity, in
whole or in part, of any Taxes at its sole expense, only after paying such Taxes or posting
such security as Landlord may reasonably require in order to protect the Premises against
loss or forfeiture. Upon the termination of any such proceedings, Tenant shall pay the
amount of such Taxes or part of such Taxes as finally determined, together with any costs,
fees, interest penalties, or other related liabilities. Landlord shall reasonably cooperate
with Tenant in contesting any Taxes, provided Landlord incurs no expense or liability in
doing so.
10. ALTERATIONS. Tenant may make alterations, additions or improvements to the
premises, including any tenant work identified on attached exhibit c (the
“alterations”), only with the prior written consent of landlord, which, with respect to
alterations not affecting the structural components of the premises or utility
systems therein, shall not be unreasonably withheld, conditioned, or delayed.
Landlord shall have thirty (30) days in which to respond to tenant’s request for any
alterations so long as such request includes the name of tenant’s contractors and
reasonably detailed plans and specifications therefore. The term “alterations” shall
not include the installation of shelves, movable partitions, tenant’s equipment, and
trade fixtures that may be performed without damaging existing improvements or
the structural integrity of the premises and landlord’s consent shall not be required
for tenant’s installation or removal of those items. Tenant shall perform all work at
tenant’s expense and in compliance with all applicable laws and shall complete all
alterations in accordance with plans and specifications approved by landlord, using
contractors approved by landlord. Tenant shall pay, when due, or furnish a bond for
payment (as set forth in section 18) all claims for labor or materials furnished to or
for tenant at or for use in the premises, which claims are or may be secured by any
mechanics’ or materialmens’ liens against the premises or any interest therein. Tenant
shall remove all alterations at the end of the lease term unless landlord conditioned its
consent upon tenant leaving a specified alteration at the premises, in which case tenant
shall not remove such alteration, and it shall become landlord’s property. Tenant shall
immediately repair any damage to the premises caused by removal of alterations.
11. REPAIRS AND MAINTENANCE; SURRENDER. Tenant shall, at its sole expense,
maintain the entire premises including without limitation the roof surface and
normal repairs and maintenance to all heating, ventilation, and air conditioning
(“HVAC”) equipment at the premises, in good condition and promptly make all
repairs and replacements, whether structural or non‐structural, necessary to keep
the premises in safe operating condition, including all utilities and other systems
serving the premises, but excluding the roof structure, subfloor, foundation, exterior
walls, and capital repairs and replacements to the HVAC system (collectively,
“landlord’s repair items”), which landlord shall maintain in good condition and
repair at landlord’s expense, provided that tenant shall not damage any landlord’s
repair items and shall promptly repair any damage or injury done thereto caused by
tenant or its employees, officers, agents, servants, contractors, customers, clients,
visitors, guests, or other licensees or invitees . Notwithstanding anything in this
section to the contrary, tenant shall not be responsible for any repairs to the
premises made necessary by the negligence or willful misconduct of landlord or its
employees, officers, agents, servants, contractors, customers, clients, visitors, guests,
or other licensees or invitees therein. If tenant fails to perform tenant’s obligations
under this section, landlord may at landlord’s option enter upon the premises after
ten (10) days’ prior notice to tenant and put the same in good order, condition and
repair and the cost thereof together with interest thereon at the default rate set forth
in section 4 shall be due and payable as additional rent to landlord together with
tenant’s next installment of base rent. Upon expiration of the lease term, whether by
lapse of time or otherwise, tenant shall promptly and peacefully surrender the
premises, together with all keys, to landlord in as good condition as when received
by tenant from landlord or as Thereafter improved, reasonable wear and tear and
insured casualty excepted.
12. ACCESS AND RIGHT OF ENTRY. After twenty‐four (24) hours’ notice from landlord
(except in cases of emergency, when no notice shall be required), tenant shall permit
landlord and its agents, employees and contractors to enter the premises at all
reasonable times to make repairs, inspections, alterations or improvements,
provided that landlord shall use reasonable efforts to minimize interference with
tenant’s use and enjoyment of the premises. This section shall not impose any repair
or other obligation upon landlord not expressly stated elsewhere in this lease. After
reasonable notice to tenant, landlord shall have the right to enter the premises for
the purpose of (a) showing the premises to prospective purchasers or lenders at any
time, and to prospective tenants within one hundred eighty (180) days prior to the
expiration or sooner termination of the lease term; and, (b) for posting “for lease”
signs within one hundred eighty (180) days prior to the expiration or sooner
termination of the lease term.
13. SIGNAGE. Tenant shall obtain landlord’s written consent as to size, location,
materials, method of attachment, and appearance, before installing any signs upon
the premises. Tenant shall install any approved signage at tenant’s sole expense
and in compliance with all applicable laws. Tenant shall not damage or deface the
premises in installing or removing signage and shall repair any injury or damage
to the premises caused by such installation or removal.
14. DESTRUCTION OR CONDEMNATION.
a. Damage and Repair. If the Premises are partially damaged but not rendered
untenantable, by fire or other insured casualty, then Landlord shall diligently restore
the Premises to the extent required below and this Lease shall not terminate. The
Premises shall not be deemed untenantable if twenty‐five percent (25%) or less of
the Premises are damaged. Landlord shall have no obligation to restore the Premises
if insurance proceeds are not available to pay the entire cost of such restoration. If
insurance proceeds are available to Landlord but are not sufficient to pay the entire
cost of restoring the Premises, or if Landlord’s lender shall not permit all or any part
of the insurance proceeds to be applied toward restoration, then Landlord may elect
to terminate this Lease and keep the insurance proceeds, by notifying Tenant within
sixty (60) days of the date of such casualty.
If the Premises are entirely destroyed, or partially damaged and rendered
untenantable, by fire or other casualty, Landlord may, at its option: (a) terminate this
Lease as provided herein, or (b) restore the Premises to their previous condition to
the extent required below; provided, however, if such casualty event occurs during
the last six (6) months of the Lease term (after considering any option to extend the
term timely exercised by Tenant) then either Tenant or Landlord may elect to
terminate the Lease. If, within sixty (60) days after receipt by Landlord from Tenant
of written notice that Tenant deems the Premises untenantable, Landlord fails to
notify Tenant of its election to restore the Premises, or if Landlord is unable to restore
the Premises within six (6) months of the date of the casualty event, then Tenant may
elect to terminate the Lease upon twenty (20) days’ written notice to Landlord unless
Landlord, within such twenty (20) day period, notifies Tenant that it will in fact
restore the Premises or actually completes such restoration work to the extent
required below, as applicable.
If Landlord restores the Premises under this Section 14, Landlord shall proceed with
reasonable diligence to complete the work, and the base monthly rent shall be abated
in the same proportion as the untenantable portion of the Premises bears to the
whole Premises, provided that there shall be a rent abatement only if the damage or
destruction of the Premises did not result from, or was not contributed to directly or
indirectly by the act, fault or neglect of Tenant, or Tenant’s employees, officers, agents,
servants, contractors, customers, clients, visitors, guests, or other licensees or
invitees. No damages, compensation or claim shall be payable by Landlord for
inconvenience, loss of business or annoyance directly, incidentally or consequentially
arising from any repair or restoration of any portion of the Premises. Landlord shall
have no obligation to carry insurance of any kind for the protection of Tenant or any
alterations or improvements paid for by Tenant; Tenant’s furniture; or on any
fixtures, equipment, improvements or appurtenances of Tenant under this Lease, and
Landlord’s restoration obligations hereunder shall not include any obligation to
repair any damage thereto or replace the same.
b. Condemnation. If the Premises are made untenantable by eminent domain,
or conveyed under a threat of condemnation, this Lease shall automatically terminate
as of the earlier of the date title vests in the condemning authority or the condemning
authority first has possession of the Premises and all Rents and other payments shall
be paid to that date. If the condemning authority takes a portion of the Premises that
does not render the Premises untenantable, then this Lease shall continue in full force
and effect and the base monthly rent shall be equitably reduced based on the
proportion by which the floor area of any structures is reduced The reduction in Rent
shall be effective on the earlier of the date the condemning authority first has
possession of such portion or title vests in the condemning authority. Landlord shall
be entitled to the entire award from the condemning authority attributable to the
value of the Premises and Tenant shall make no claim for the value of its leasehold.
Tenant shall be permitted to make a separate claim against the condemning authority for
moving expenses, provided that in no event shall Tenant’s claim reduce Landlord’s award.
15. INSURANCE.
Waiver of Subrogation. Landlord and Tenant hereby release each other and any
other tenant, their agents or employees, from responsibility for, and waive their entire
claim of recovery for any loss or damage arising from any cause covered by property
insurance required to be carried or otherwise carried by each of them. Each party
shall provide notice to the property insurance carrier or carriers of this mutual
waiver of subrogation, and shall cause its respective property insurance carriers to
waive all rights of subrogation against the other. This waiver shall not apply to the
extent of the deductible amounts to any such property policies or to the extent of
liabilities exceeding the limits of such policies.
16. INDEMNIFICATION.
a. Indemnification by Tenant. Tenant shall defend, indemnify, and hold
Landlord and its property manager, if any, harmless against all liabilities, damages,
costs, and expenses, including attorneys’ fees, for personal injury, bodily injury
(including death) or property damage arising from any negligent or wrongful act or
omission of Tenant or Tenant’s employees, officers, agents, servants, contractors,
customers, clients, visitors, guests, or other licensees or invitees on or around the
Premises, or arising from any breach of this Lease by Tenant. Tenant shall use legal
counsel reasonably acceptable to Landlord in defense of any action within Tenant’s
defense obligation.
b. Indemnification by Landlord. Landlord shall defend, indemnify and hold
Tenant harmless against all liabilities, damages, costs, and expenses, including
attorneys’ fees, for personal injury, bodily injury (including death) or property
damage arising from any negligent or wrongful act or omission of Landlord or
Landlord’s employees, officers, agents, servants, contractors, customers, clients,
visitors, guests, or other licensees or invitees on or around the Premises, or arising
from any breach of this Lease by Landlord. Landlord shall use legal counsel
reasonably acceptable to Tenant in defense of any action within Landlord’s defense
obligation.
c. Waiver of Immunity. Landlord and Tenant each specifically and expressly
waive any immunity that each may be granted under the Washington State Industrial
Insurance Act, Title 51 RCW. Neither party’s indemnity obligations under this Lease
shall be limited by any limitation on the amount or type of damages, compensation,
or benefits payable to or for any third party under the Worker Compensation Acts,
Disability Benefit Acts or other employee benefit acts.
d. Exemption of Landlord from Liability. Except to the extent of claims arising
out of Landlord’s gross negligence or intentional misconduct, Landlord shall not be
liable for injury to Tenant’s business or assets or any loss of income therefrom or for
damage to any property of Tenant or of its employees, officers, agents, servants,
contractors, customers, clients, visitors, guests, or other licensees or invitees, or any
other person in or about the Premises.
e. Survival. The provisions of this Section 16 shall survive expiration or
termination of this Lease.
17. ASSIGNMENT AND SUBLETTING. Tenant shall not assign, sublet, mortgage,
encumber or otherwise transfer any interest in this lease (collectively referred to as
a “transfer”) or any part of the premises, without first obtaining landlord’s written
consent which shall not be unreasonably withheld, conditioned, or delayed. No
transfer shall relieve tenant of any liability under this lease notwithstanding
landlord’s consent to such transfer. Consent to any transfer shall not operate as a
waiver of the necessity for landlord’s consent to any subsequent transfer. In
connection with each request for consent to a transfer, tenant shall pay the
reasonable cost of processing same, including attorneys’ fees, upon demand of
landlord, up to a maximum of $1,250.
If Tenant is a partnership, limited liability company, corporation, or other entity, any transfer
of this Lease by merger, consolidation, redemption or liquidation, or any change in the
ownership of, or power to vote, which singularly or collectively represents a majority of the
beneficial interest in Tenant, shall constitute a Transfer under this Section.
As a condition to Landlord’s approval, if given, any potential assignee or sub lessee otherwise
approved by Landlord shall assume all obligations of Tenant under this Lease and shall be
jointly and severally liable with Tenant and any guarantor, if required, for the payment of
Rent and performance of all terms of this Lease. In connection with any Transfer, Tenant shall
provide Landlord with copies of all assignments, subleases and assumption agreement or
documents.
18. LIENS. Tenant is not authorized to subject the landlord’s assets to any liens or
claims of lien. Tenant shall keep the premises free from any liens created by or
through tenant. Tenant shall indemnify and hold landlord harmless from liability
for any such liens including, without limitation, liens arising from any alterations. If a
lien is filed against the Premises by any person claiming by, through or under
tenant, tenant shall, within 10 days after landlord’s demand, at tenant’s expense,
either remove the lien or furnish to landlord a bond in form and amount and issued
by a surety satisfactory to landlord, indemnifying landlord and the premises against
all liabilities, costs and expenses, including attorneys’ fees, which landlord could
reasonably incur as a result of such lien.
19. DEFAULT. THE FOLLOWING OCCURRENCES SHALL EACH CONSTITUTE A DEFAULT
BY TENANT (AN “EVENT OF DEFAULT):
a. Failure To Pay. Failure by Tenant to pay any sum, including Rent, due under
this Lease following five (5) days’ notice from Landlord of the failure to pay.
b. Vacation/Abandonment. Vacation by Tenant of the Premises (defined as an
absence for at least fifteen (15) consecutive days without prior notice to Landlord),
or abandonment of the Premises (defined as an absence of five (5) days or more while
Tenant is in breach of some other term of this Lease). Tenant’s vacation or
abandonment of the Premises shall not be subject to any notice or right to cure.
c. Insolvency. Tenant’s insolvency or bankruptcy (whether voluntary or
involuntary), or appointment of a receiver, assignee or other liquidating officer for
Tenant’s business; provided, however, that in the event of any involuntary bankruptcy
or other insolvency proceeding, the existence of such proceeding shall constitute an
Event of Default only if such proceeding is not dismissed or vacated within sixty (60)
days after its institution or commencement.
d. Levy or Execution. The taking of Tenant’s interest in this Lease or the
Premises, or any part thereof, by execution or other process of law directed against
Tenant, or attachment of Tenant’s interest in this Lease by any creditor of Tenant, if
such attachment is not discharged within fifteen (15) days after being levied.
e. Other Non‐Monetary Defaults. The breach by Tenant of any agreement, term
or covenant of this Lease other than one requiring the payment of money and not
otherwise enumerated in this Section or elsewhere in this Lease, which breach
continues for a period of thirty (30) days after notice by Landlord to Tenant of the
breach.
f. Failure to Take Possession. Failure by Tenant to take possession of the
Premises on the Commencement Date or failure by Tenant to commence any Tenant’s
Work in a timely fashion.
Landlord shall not be in default unless Landlord fails to perform obligations required of
Landlord within a reasonable time, but in no event less than thirty (30) days after notice by
Tenant to Landlord. If Landlord fails to cure any such default within the allotted time,
Tenant’s sole remedy shall be to seek actual money damages (but not consequential or
punitive damages) for loss arising from Landlord’s failure to discharge its obligations under
this Lease. Nothing herein contained shall relieve Landlord from its duty to perform of any
of its obligations to the standard prescribed in this Lease.
Any notice periods granted herein shall be deemed to run concurrently with and not in
addition to any default notice periods required by law.
20. REMEDIES. Landlord shall have the following remedies upon an event of default.
Landlord’s rights and remedies under this lease shall be cumulative, and none
shall exclude any other right or remedy allowed by law.
a. Termination of Lease. Landlord may terminate Tenant’s interest under the
Lease, but no act by Landlord other than notice of termination from Landlord to
Tenant shall terminate this Lease. The Lease shall terminate on the date specified in
the notice of termination. Upon termination of this Lease, Tenant will remain liable to
Landlord for damages in an amount equal to the Rent and other sums that would have
been owing by Tenant under this Lease for the balance of the Lease term, less the net
proceeds, if any, of any reletting of the Premises by Landlord subsequent to the
termination, after deducting all of Landlord’s Reletting Expenses (as defined below).
Landlord shall be entitled to either collect damages from Tenant monthly on the days
on which rent or other amounts would have been payable under the Lease, or
alternatively, Landlord may accelerate Tenant’s obligations under the Lease and
recover from Tenant:
(i) unpaid rent which had been earned at the time of termination; (ii) the amount by
which the unpaid rent which would have been earned after termination until the time
of award exceeds the amount of rent loss that Tenant proves could reasonably have
been avoided; (iii) the amount by which the unpaid rent for the balance of the term of
the Lease after the time of award exceeds the amount of rent loss that Tenant proves
could reasonably be avoided (discounting such amount by the discount rate of the
Federal Reserve Bank of San Francisco at the time of the award, plus 1%); and (iv)
any other amount necessary to compensate Landlord for all the detriment
proximately caused by Tenant’s failure to perform its obligations under the Lease, or
which in the ordinary course would be likely to result from the Event of Default,
including without limitation Reletting Expenses described in Section 20(b) below.
b. Re‐Entry and Reletting. Landlord may continue this Lease in full force and
effect, and without demand or notice, re‐enter and take possession of the Premises or
any part thereof, expel the Tenant from the Premises and anyone claiming through or
under the Tenant, and remove the personal property of either. Landlord may relet the
Premises, or any part of them, in Landlord’s or Tenant’s name for the account of
Tenant, for such period of time and at such other terms and conditions as Landlord, in
its discretion, may determine. Landlord may collect and receive the rents for the Premises. To
the fullest extent permitted by law, the proceeds of any reletting shall be applied: first, to pay
Landlord all Reletting Expenses (defined below); second, to pay any indebtedness of Tenant
to Landlord other than rent; third, to the rent due and unpaid hereunder; and fourth, the
residue, if any, shall be held by Landlord and applied in payment of other or future obligations
of Tenant to Landlord as the same may become due and payable, and Tenant shall not be
entitled to receive any portion of such revenue. Re‐entry or taking possession of the Premises
by Landlord under this Section shall not be construed as an election on Landlord’s part to
terminate this Lease, unless a notice of termination is given to Tenant. Landlord reserves the
right following any re‐entry or reletting, or both, under this Section to exercise its right to
terminate the Lease. Tenant will pay Landlord the Rent and other sums which would be
payable under this Lease if repossession had not occurred, less the net proceeds, if any, after
reletting the Premises and after deducting Landlord’s Reletting Expenses. “Reletting
Expenses” is defined to include all expenses incurred by Landlord in connection with reletting
the Premises, including without limitation, all repossession costs, brokerage commissions
and costs for securing new tenants, attorneys’ fees, remodeling and repair costs, costs for
removing persons or property, costs for storing Tenant’s property and equipment, and costs
of tenant improvements and rent concessions granted by Landlord to any new Tenant,
prorated over the life of the new lease.
c. Waiver of Redemption Rights. Tenant, for itself, and on behalf of any and all
persons claiming through or under Tenant, including creditors of all kinds, hereby
waives and surrenders all rights and privileges which they may have under any
present or future law, to redeem the Premises or to have a continuance of this Lease
for the Lease term, or any extension thereof.
d. Nonpayment of Additional Rent. All costs which Tenant is obligated to pay
to Landlord pursuant to this Lease shall in the event of nonpayment be treated as if
they were payments of Rent, and Landlord shall have the same rights it has with
respect to nonpayment of Rent.
e. Failure to Remove Property. If Tenant fails to remove any of its property
from the Premises at Landlord’s request following an uncured Event of Default,
Landlord may, at its option, remove and store the property at Tenant’s expense and
risk. If Tenant does not pay the storage cost within five (5) days of Landlord’s request,
Landlord may, at its option, have any or all of such property sold at public or private
sale (and Landlord may become a purchaser at such sale), in such manner as
Landlord deems proper, without notice to Tenant. Landlord shall apply the proceeds
of such sale: (i) to the expense of such sale, including reasonable attorneys’ fees
actually incurred; (ii) to the payment of the costs or charges for storing such
property; (iii) to the payment of any other sums of money which may then be or
thereafter become due Landlord from Tenant under any of the terms hereof; and (iv)
the balance, if any, to Tenant. Nothing in this Section shall limit Landlord’s right to sell
Tenant’s personal property as permitted by law or to foreclose Landlord’s lien for unpaid
rent.
21. MORTGAGE SUBORDINATION AND ATTORNMENT. This lease shall automatically
be subordinate to any mortgage or deed of trust created by landlord which is now
existing or hereafter placed upon the premises including any advances, interest,
modifications, renewals, replacements or extensions (“landlord’s mortgage”).
Tenant shall attorn to the holder of any landlord’s mortgage or any party acquiring
the premises at any sale or other proceeding under any landlord’s mortgage
provided the acquiring party assumes the obligations of landlord under this lease.
Tenant shall promptly and in no event later than fifteen (15) days after request
execute, acknowledge and deliver documents which the holder of any landlord’s
mortgage may reasonably require as further evidence of this subordination and
attornment. Notwithstanding the foregoing, tenant’s obligations under this section to
subordinate in the future are conditioned on the holder of each landlord’s mortgage
and each party acquiring the premises at any sale or other proceeding under any
such landlord’s mortgage not disturbing tenant’s occupancy and other rights under
this lease, so long as no uncured event of default by tenant exists.
22. NON‐WAIVER. Landlord’s waiver of any breach of any provision contained in this
lease shall not be deemed to be a waiver of the same provision for subsequent acts
of tenant. The acceptance by landlord of rent or other amounts due by tenant
hereunder shall not be deemed to be a waiver of any previous breach by tenant.
23. HOLDOVER. If tenant shall, without the written consent of landlord, remain in
possession of the premises and fail to return them to landlord after the expiration
or termination of the term, the tenancy shall be a holdover tenancy and shall be on
a month‐to‐month basis, which may be terminated according to Washington law.
During such tenancy, tenant agrees to pay to landlord 150% of the rate of rental
last payable under this lease, unless a different rate is agreed upon by landlord. All
other terms of the lease shall remain in effect. Tenant acknowledges and agrees
that this section does not grant any right to tenant to holdover, and that tenant
may also be liable to landlord for any and all damages or expenses which landlord may
have to incur as a result of tenant’s holdover.
24. NOTICES. All notices under this lease shall be in writing and effective (i) when
delivered in person or via overnight courier to the other party, (ii) three (3) days
after being sent by registered or certified mail to the other party at the address set
forth in section 1; or (iii) upon confirmed transmission by facsimile to the other
party at the facsimile numbers set forth in section 1. The addresses for notices and
payment of rent set forth in section 1 may be modified by either party only by
written notice delivered in conformance with this section.
25. COSTS AND ATTORNEYS’ FEES. If tenant or landlord engage the services of an
attorney to collect monies due or to bring any action for any relief against the other,
declaratory or otherwise, arising out of this lease, including any suit by landlord for
the recovery of rent or other payments, or possession of the premises, the losing
party shall pay the prevailing party a reasonable sum for attorneys’ fees in such
action, whether in mediation or arbitration, at trial, on appeal, and in any
bankruptcy proceeding.
26. ESTOPPEL CERTIFICATES. Tenant shall, from time to time, upon written request of
landlord, execute, acknowledge and deliver to landlord or its designee a written
statement specifying the following, subject to any modifications necessary to make
such statements true and complete: (i) the total rentable square footage of the
premises; (ii) the date the lease term commenced and the date it expires; (iii) the
amount of minimum monthly rent and the date to which such rent has been paid; (iv)
that this lease is in full force and effect and has not been assigned, modified,
supplemented or amended in any way; (v) that this lease represents the entire
agreement between the parties; (vi) that all obligations under this lease to be
performed by either party have been satisfied; (vii) that there are no existing claims,
defenses or offsets which the tenant has against the enforcement of this lease by
landlord; (viii) the amount of rent, if any, that tenant paid in advance; (ix) the amount
of security that tenant deposited with landlord; (x) if tenant has sublet all or a
portion of the premises or assigned its interest in the lease and to whom; (xi) if
tenant has any option to extend the lease or option to purchase the premises; and
(xii) such other factual matters concerning the lease or the premises as Landlord may
reasonably request. Tenant acknowledges and agrees that any statement delivered
pursuant to this section may be relied upon by a prospective purchaser of landlord’s
interest or assignee of any mortgage or new mortgagee of landlord’s interest in the
premises. If tenant shall fail to respond within ten (10) days to landlord’s request for the
statement required by this section, landlord may provide the statement and tenant shall be
deemed to have admitted the accuracy of the information provided by landlord.
27. TRANSFER OF LANDLORD’S INTEREST. This lease shall be assignable by landlord
without the consent of tenant. In the event of any transfer or transfers of landlord’s
interest in the premises, other than a transfer for collateral purposes only, upon the
assumption of this lease by the transferee, landlord shall be automatically relieved of
obligations and liabilities accruing from and after the date of such transfer, including
any liability for any retained security deposit or prepaid rent, for which the
transferee shall be liable, and tenant shall attorn to the transferee.
28. LANDLORD’S LIABILITY. Anything in this lease to the contrary notwithstanding,
covenants, undertakings and agreements herein made on the part of landlord are
made and intended not as personal covenants, undertakings and agreements for the
purpose of binding landlord personally or the assets of landlord but are made and
intended for the purpose of binding only the landlord’s interest in the premises, as
the same may from time to time be encumbered. In no event shall landlord or its
partners, shareholders, or members, as the case may be, ever be personally liable
hereunder.
29. RIGHT TO PERFORM. If tenant shall fail to timely pay any sum or perform any other
act on its part to be performed hereunder, landlord may make any such payment or
perform any such other act on tenant’s behalf. Tenant shall, within ten (10) days of
demand, reimburse landlord for its expenses incurred in making such payment or
performance. Landlord shall (in addition to any other right or remedy of landlord
provided by law) have the same rights and remedies in the event of the nonpayment
of sums due under this section as in the case of default by tenant in the payment of
rent.
30. HAZARDOUS MATERIAL. As used herein, the term “hazardous material” means any
hazardous, dangerous, toxic or harmful substance, material or waste including
biomedical waste Which is or becomes regulated by any local governmental
authority, the state of Washington or the united states government, due to its
potential harm to the health, safety or welfare of humans or the environment.
Landlord represents and warrants to tenant that, to landlord’s knowledge without
duty of investigation, there is no hazardous material on, in, or under the premises as
of the commencement date except as may otherwise have been disclosed to tenant in
writing before the execution of this lease. If there is any hazardous material on, in, or
under the premises as of the commencement date which has been or thereafter
becomes unlawfully released through no fault of tenant, then landlord shall
indemnify, defend and hold tenant harmless from any and all claims, judgments,
damages, penalties, fines, costs, liabilities or losses including without limitation sums
paid in settlement of claims, attorneys’ fees, consultant fees and expert fees, incurred
or suffered by tenant either during or after the lease term as the result of such
contamination.
Tenant shall not cause or permit any Hazardous Material to be brought upon, kept, or used
in or about, or disposed of on the Premises by Tenant, its employees, officers, agents,
servants, contractors, customers, clients, visitors, guests, or other licensees or invitees,
except with Landlord’s prior consent and then only upon strict compliance with all
applicable federal, state and local laws, regulations, codes and ordinances. If Tenant breaches
the obligations stated in the preceding sentence, then Tenant shall indemnify, defend and
hold Landlord harmless from any and all claims, judgments, damages, penalties, fines, costs,
liabilities or losses including, without limitation, diminution in the value of the Premises;
damages for the loss or restriction on use of rentable or usable space or of any amenity of
the Premises, or elsewhere; damages arising from any adverse impact on marketing of space
at the Premises; and sums paid in settlement of claims, attorneys’ fees, consultant fees and
expert fees incurred or suffered by Landlord either during or after the Lease term. These
indemnifications by Landlord and Tenant include, without limitation, costs incurred in
connection with any investigation of site conditions or any clean‐up, remedial, removal or
restoration work, whether or not required by any federal, state or local governmental agency
or political subdivision, because of Hazardous Material present in the Premises, or in soil or
ground water on or under the Premises. Tenant shall immediately notify Landlord of any
inquiry, investigation or notice that Tenant may receive from any third party regarding the
actual or suspected presence of Hazardous Material on the Premises.
Without limiting the foregoing, if the presence of any Hazardous Material brought upon,
kept or used in or about the Premises by Tenant, its employees, officers, agents, servants,
contractors, customers, clients, visitors, guests, or other licensees or invitees, results in any
unlawful release of any Hazardous Materials on the Premises or any other property, Tenant
shall promptly take all actions, at its sole expense, as are necessary to return the Premises
or any other property to the condition existing prior to the release of any such Hazardous
Material; provided that Landlord’s approval of such actions shall first be obtained, which
approval may be withheld at Landlord’s sole discretion. The provisions of this Section shall
survive expiration or termination of this Lease.
31. QUIET ENJOYMENT. So long as tenant pays the rent and performs all of its
obligations in this lease, tenant’s possession of the premises will not be disturbed by
landlord or anyone claiming by, through or under landlord.
32. MERGER. The voluntary or other surrender of this lease by tenant, or a mutual
cancellation thereof, shall not work a merger and shall, at the option of landlord,
terminate all or any existing subtenancies or may, at the option of landlord, operate
as an assignment to landlord of any or all of such subtenancies.
33. GENERAL.
a. Heirs and Assigns. This Lease shall apply to and be binding upon
Landlord and Tenant and their respective heirs, executors, administrators,
successors and assigns.
b. Entire Agreement. This Lease contains all of the covenants and agreements
between Landlord and Tenant relating to the Premises. No prior or
contemporaneous agreements or understandings pertaining to the Lease shall be
valid or of any force or effect and the covenants and agreements of this Lease shall
not be altered, modified or amended to except in writing signed by Landlord and
Tenant.
c. Severability. Any provision of this Lease which shall prove to be invalid, void
or illegal shall in no way affect, impair or invalidate any other provision of this
Lease.
d. Force Majeure. Time periods for either party’s performance under any
provisions of this Lease (excluding payment of Rent) shall be extended for
periods of time during which the party’s performance is prevented due to
circumstances beyond such party’s control, including without limitation, fires,
floods, earthquakes, lockouts, strikes, embargoes, governmental regulations,
acts of God, public enemy, war or other strife.
e. Governing Law. This Lease shall be governed by and construed in
accordance with the laws of the State of Washington.
f. Memorandum of Lease. Neither this Lease nor any memorandum or
“short form” thereof shall be recorded without Landlord’s prior consent.
g. Submission of Lease Form Not an Offer. One party’s submission of this
Lease to the other for review shall not constitute an offer to lease the Premises. This
Lease shall not become effective and binding upon Landlord and Tenant until it has
been fully signed by both of them.
h. No Light, Air or View Easement. Tenant has not been granted an
easement or other right for light, air or view to or from the Premises. Any
diminution or shutting off of light, air or view by any structure which may be
erected on or adjacent to the Premises shall in no way effect this Lease or the
obligations of Tenant hereunder or impose any liability on Landlord.
i. Authority of Parties. Each party signing this Lease represents and
warrants to the other that it has the authority to enter into this Lease, that the
execution and delivery of this Lease has been duly authorized, and that upon
such execution and delivery, this Lease shall be binding upon and enforceable
against the party on signing.
j. Time. “Day” as used herein means a calendar day and “business day”
means any day on which commercial banks are generally open for business in
the state where the Premises are situated. Any period of time which would
otherwise end on a non‐business day shall be extended to the next following
business day. Time is of the essence of this Lease.
EXHIBITS AND RIDERS
The following exhibits and riders are made a part of this Lease, and the terms thereof
shall control over any inconsistent provision in the sections of this Lease:
Exhibit A: Legal Description of the Property Exhibit
B: Rent Rider
Exhibit C: Addendum/Amendment
LANDLORD: TENANT:
LANDLORD: TENANT:
BY: BY:
ITS: ITS:
STATE OF WASHINGTON
COUNTY OF
ss.
I certify that I know or have satisfactory evidence that is the person who
appeared before me and said person acknowledged that signed this
instrument,
on oath stated that 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 this day of , 20 .
(Signature of Notary)
(Legibly Print or Stamp Name of
Notary) Notary public in and for the state of
Washington,
residing at
My appointment expires
STATE OF WASHINGTON
COUNTY OF
ss.
I certify that I know or have satisfactory evidence that is the person who
appeared before me and said person acknowledged that signed this
instrument,
on oath stated that 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 this day of , 20 .
(Signature of Notary)
(Legibly Print or Stamp Name of
Notary) Notary public in and for the state of
Washington,
residing at
My appointment expires
STATE OF WASHINGTON
COUNTY OF
ss.
I certify that I know or have satisfactory evidence that is the person who
appeared before me and said person acknowledged that signed this
instrument,
on oath stated that 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 this day of , 20 .
(Signature of Notary)
(Legibly Print or Stamp Name of
Notary) Notary public in and for the state of
Washington,
residing at
My appointment expires
STATE OF WASHINGTON
COUNTY OF
ss.
I certify that I know or have satisfactory evidence that is the person who
appeared before me and said person acknowledged that signed this
instrument,
on oath stated that 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 this day of , 20 .
(Signature of Notary)
(Legibly Print or Stamp Name of
Notary) Notary public in and for the state of
Washington,
residing at
My appointment expires
EXHIBIT A
[Legal Description of the Property]
Description of property to be leased
18824 Smokey Point Blvd, Unit No. 4, a 3500 Square Foot ground level
commercial space. Parcel No.011006000000400
Section 17 Township 31 Range 05 Quarter SW Smokey Point Warehouse Condominium
Unit No. Four TGW 9.72% INT in Com areas and FAC as DECL in AFN 200806100259
In addition to the property described, Tenant receives exclusive use of the nine most
Northern parking stalls along the West fence line. Stalls to be identified as Fire Department
use only by the tenant and will remain as part of the lease space for the duration of this lease
agreement.
Tenant shall also require clear and unrestricted access in all common driveway areas. If at
any time during the course of this lease agreement, the tenant believes the emergency
access is compromised, the landlord agrees to identify these areas as Fire Lanes and mark
them appropriately. Tenant will abide by the binding site plan and the city ordinance.
EXHIBIT B
Rent Rider
See attached document
ADDENDUM/AMENDMENT TO CITY OF ARLINGTON LEASE
Exhibit C
The following is part of the Commercial Lease Agreement dated October 1, 2018, between
Powers Investing LLC and City of Arlington regarding the lease of the property known as:
18824 Smokey Point Blvd, Unit No. 4, Arlington, WA.
IT IS AGREED BETWEEN THE LANDLORD AND TENANT AS FOLLOWS:
INSURANCE: The tenant is self‐insured as a member of the Washington Cities Insurance
Authority. The tenant shall provide the landlord with evidence of said self‐ insurance in a
form reasonably acceptable to the landlord and shall maintain, during the term of the lease,
sufficient coverage to insure the building and its contents and maintain liability protection
not less than the current limits. Tenant shall notify landlord at least 30 days in advance of
any termination or substantial changes in the landlord’s level of self‐insurance.
NNN Charges: $593.65 per month.
The property tax for year one is $4,327.78 which is $360.65 per month.
HOA dues for year one will be $233.00 per month.
The HOA dues and property taxes for the following years of this lease will be presented to
the tenant by the landlord 60 days prior to an increase if there are any changes.
AGENT (COMPANY): Powers Investing LLC. By: Mike Powers
ALL OTHER TERMS AND CONDITIONS of said Agreement remain unchanged.
INITIALS: Tenant/Lessee: Date
Landlord/Lessor: Date
Powers Investing LLC
18824 Smokey Point Blvd, Suite 101, Arlington, WA 98223
RENT RIDER
Exhibit B
This Rent Rider (“Rider”) is a part of the lease agreement dated October 1, 2018 (the
“Lease”) between Powers Investing LLC (“Landlord”) and City of Arlington (“Tenant”)
concerning the space commonly known as 18824 Smokey Point Blvd, Unit No. 4 (the
“Premises”), located at the property commonly known as 18824 Smokey Point Blvd,
Arlington, WA 98223, Unit No. 4 (the “Property”).
1. BASE MONTHLY RENT SCHEDULE. Tenant shall pay Landlord base monthly rent
during the Lease Term according to the following schedule:
Lease Year Base Monthly Rent Amount
Year One $3,252.00 + NNN
Year Two $3,252.00 + NNN
Year Three $3,252.00 + NNN
SEE ADDENDUM FOR NNN CHARGE
INITIALS:
LANDLORD DATE
TENANT DATE
City of Arlington
Council Agenda Bill
Item:
WS #4
Attachment
D
COUNCIL MEETING DATE:
September 24, 2018
SUBJECT:
Amendment to the Interlocal Agreement establishing the Snohomish County Tourism Promotion
Area – Room Rate Increase
ATTACHMENTS:
Amendment Number 1 to the Interlocal Agreement – Rate Increase and Draft Amendment to
Snohomish County Ordinance relating to the Snohomish County Tourism Promotion Area
DEPARTMENT OF ORIGIN
Administration
EXPENDITURES REQUESTED: N/A
BUDGET CATEGORY: N/A
BUDGETED AMOUNT:
LEGAL REVIEW:
DESCRIPTION:
Council is being asked to give the Mayor authority to sign amended intergovernmental agreement for
the Snohomish County Tourism Promotion Area. The lodging charge will increase from $1.00 per day
to $2.00 per day on furnishing of lodging by lodging businesses located within the tourism promotion
area. This revenue can also be used for land acquisition and/or infrastructure improvements
designed to increase tourism and convention business. This is a revision of the county’s ordinance.
HISTORY:
The original Snohomish County ordinance was established December 15, 2010. The use of the
lodging charge revenue is for the general promotion of tourism within Snohomish County as
specified in the annual tourism promotion area business plan.
ALTERNATIVES:
RECOMMENDED MOTION:
Workshop; discussion only. At the October 1, 2018 council meeting, the recommended motion will
be, “I move to approve the interlocal agreement with Snohomish County amending the lodging
charges for the Snohomish County Promotion Area, and authorize the Mayor to sign the agreement.”
City of Arlington
Council Agenda Bill
Item:
WS #5
Attachment
E
COUNCIL MEETING DATE:
September 24, 2018
SUBJECT:
Authority to apply for City of Arlington Tourism & Economic Development Grant
(Lodging Tax Grant)
ATTACHMENTS:
Grant applications
DEPARTMENT OF ORIGIN
Administration; Sarah Lopez – Community Revitalization 360‐403‐3448
EXPENDITURES REQUESTED: Matching funds for grant #3 $15,000
BUDGET CATEGORY: General Fund
BUDGETED AMOUNT: N/A
LEGAL REVIEW:
DESCRIPTION:
1. Eagle Festival: $6,700
2. Summer Entertainment Series: $12,045
3. Downtown Tree Lighting Power Project: $15,000. This project is a piece of
revitalization of downtown, which leads to the goal of economic sustainability and
increased tourism. The power infrastructure is currently missing.
HISTORY:
Grant applications require official approval of projects and authorization to apply. Eagle
Festival and Summer Entertainment series have been funded by Tourism Grant
previously.
ALTERNATIVES
Do not authorize
Choose which to authorize
RECOMMENDED MOTION:
Workshop; discussion only. At the October 1, 2018 council meeting, the recommended
motion will be, “I move to authorize staff to apply for the 2019 City of Arlington
Tourism/Economic Development Grant.”
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91-6001401 311-001-370
Arlington Stillaguamish Eagle Festival
Sarah Lopez
238 N Olympic Ave
Arlington WA 98223
360-403-3448 slopez@arlingtonwa.gov
Same as above
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several partner organizations
6,700
7,830
14,530
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fund for the portion of event paid with tourism money. We could also ask Tribe for a larger
sponsorship if necessary.
Advertising 3200 3200
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donations 1500
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$900 from Arts Council for photo contest awards; Skagit Bank sponsorship for carving show, $6,330 staff and volunteer hours,
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This event brings in chainsaw carvers from out of state and out of area, requiring overnight stays.
Having a two-day event and advertising outside the area also increases the possibility of
overnight stays. We promote the event as a multiple day tourist activity, by providing outdoor
recreation activities such as eagle watching and river rafting. We also pair this with evening
entertainment. We are providing visitor attractions as well as promoting the area's natural
attractions, which will bring people back to the area to visit and explore the outdoor recreation.
This event is in February, thereby attracting visitors in the off season. This event requires
continued partnerships with the Stillaguamish Tribe, Arlington Arts Council, Country Carvers,
Lifeway Church, United Methodist Church, Sound Salmon Solutions, Sarvey Wildlife, Nature
Conservancy, Pilchuck Audubon, North Cascades River Expeditions, and many volunteers.
Event includes:
Country Carvers Show, live entertainment at the Mirkwood, float trip on the Stillaguamish,
Nature Conservancy bird viewing/tours, nature exhibits and education, salmon obstacle course,
Sarvey Wildlife open house, hands on arts and crafts, Rock Paper Scissors Art Show,
Stillaguamish Tribe Salmon Stop, horse wagon rides, tractor display, food vendors, Pioneer
Museum open house, nature movie, nature lecture and such.
The event was featured in Alaska Airline magazine in 2018.
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2019- advertise the event and manage the plans
2019 host the event
2018- meet with partners to plan the event
2018- finalize plans
2018- advertise event, work with volunteers
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91-6001401 311-001-370
Summer Entertainment Series
Sarah Lopez
238 N Olympic Ave
Arlington WA 98223
360-403-3448 slopez@arlingtonwa.gov
same
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If event was not funded by the tourism grant, the city would need to decide whether to fund from
the city's general fund.
Street Fair Entertainment 4400 4400
Music, movies, Shakespeare 5,500 5,500
Face Painter for music in the park 160 160
Sound Tech for music in the park 800 800
Staff & volunteer time towards events & Sponsors 7800 C & I 7800
Advertising for events 1185 1185
12,045 7800 19,845
In kind includes sponsorship of concert by Calvary estimated value $800, Olympic Theater staff labor $600, staff and volunteer labor
for all other events $6,400. Includes booking bands, creating marketing,distributing marketing, and volunteers at events.
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The Summer Entertainment Series is providing visitor attractions-events that are marketable to
visitors when they are visiting Arlington and also marketable as stand alone attractions. These
events help make Arlington a destination for visitors. The funds being applied for are used to help
advertise the special events and encourage visitor attendance. We are using the existing tourism
facilities for these events, including, Legion Park and the Stage that was paid for with tourism
grant funds.
The Street Fair entertainment is a partnership with Downtown Arlington Business Association's
Street Fair. This year we are also partnering with Kornstalk, to bring the Kornstalk music event
into the Street Fair, combining will increase attendance and make a stronger music event by
adding evening concerts. We also partner with Arlington Calvary for the music in the park series;
they sponsor one of the concerts. The bands for Music in the Park are usually from out of the
area and they bring with them visitors from out of the area. This year, we are negotiating with
Strutz Band to do a concert at the park to raise funds for public art. If we are able to contract with
this regionally famous band, we will be able to bring in tourists from outside this area, while raising
money to support another visitor attraction, the Arlington Art Walk.
The movies will be hosted at Olympic Theater this year, due to revitalization of the Terrace Park
Terraces, we will not use Terrace Park. Also the events will be Fridays and Saturdays.
Entertainment Series 2019
June 21 Friday Movie at Olympic Theater
June 29 Sat. Shakespeare in the Park
July 4 Thurs
July 5 Fri
July 12-13-14 Street Fair
July 19 Fri Movie at Olympic Theater
July 26 Fri Music at Legion Park
Aug 2 Fri Movie at Olympic Theater
Aug 9 Fri Music- Calvary at Legion Park
Aug 16 Fri Music at Legion & “Hot August Nights” DABA event
Aug 23 Fri
Aug 24 Sat Concert
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create advertising
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91-6001401 311-001-370
Downtown Tree Lighting Power
Sarah Lopez
238 N Olympic Ave
Arlington WA 98223
360-403-3448 slopez@arlingtonwa.gov
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Electrical contractor will install conduit and electrical wire and boxes to 13 trees on Olympic
Avenue, so that we can have permanent lights on trees downtown. The power infrastructure is
currently missing. We tried solar and it did not light the trees during twilight hours and only would
have enough energy on sunny days to power the lights.
The project will help create a vibrant downtown for economic and social benefit. Lights on trees
will create a brighter downtown during all seasons that is attractive to visitors. Other cities benefit
from lighting trees in their downtown corridors and creating a vibrant downtown for shopping and
events. A vibrant downtown is a draw for visitors.
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vibrant downtown
vibrant downtown
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City of Arlington
Council Agenda Bill
Item:
WS #6
Attachment
F
COUNCIL MEETING DATE:
September 24, 2018
SUBJECT:
Resolution Declaring an Emergency with the Failing Condition of the Farmstead Estates Water Main
ATTACHMENTS:
Resolution Declaring An Emergency And Waiving Competitive Bidding Requirements
Bid Estimate from Reece Construction for Infrastructure Repair and Replacement Work
DEPARTMENT OF ORIGIN
Public Works – Jim Kelly
EXPENDITURES REQUESTED: $ 345,000 estimate
BUDGET CATEGORY: Water Utility 2018 Capital Budget
BUDGETED AMOUNT:
LEGAL REVIEW:
DESCRIPTION:
Emergency Declaration for the Farmstead Estates water system repair and award of infrastructure repair
work to Reece Construction.
HISTORY:
On July 21, 2018 City staff responded to a water main break on Keith Lane. After the water main was excavated,
staff discovered that the underside of the ductile iron water pipe was badly corroded and leaking – outer layers
of the pipe were breaking off in the worker’s hand. A repair sleeve was placed over the leak, the leak was
slowed down but not fully stopped. Later excavation of the water main at other areas within the Farmstead
Estates community revealed similar corrosion; the extent of corrosion stops near the community’s tie‐in to the
204th St water main.
This water main is currently leaking and needs to be repaired immediately.
ALTERNATIVES
Remand to staff for further evaluation
Reject the resolution and schedule the repair work for 2019
RECOMMENDED MOTION:
Workshop; discussion only. At the October 1, 2018 council meeting, the recommended motion will be, “I
move to adopt the resolution declaring an emergency for the Farmstead Estates failing water system and
waiving competitive bidding requirements, award the infrastructure repair and replacement work to Reece
Construction Company in the amount of $330,000 and authorize the Mayor to sign the construction contract,
pending review by the City Attorney.”
RESOLUTION NO. XXX
A RESOLUTION DECLARING AN EMERGENCY AND WAIVING
COMPETITIVE BIDDING REQUIREMENTS DUE TO A
BREAK IN THE FARMSTEAD ESTATES WATER MAIN
WHEREAS, a July 21, 2018 break in the Keith Lane water main pipe has impacted
residences in the Farmstead Estates community; and
WHEREAS, the Farmstead Estates water main was installed in acidic soils over 23
years ago and is displaying critical signs of failure, and
WHEREAS, the City’s investigation of the water main at other locations in Farmstead
Estates clearly show similar pipeline deterioration and corrosion; and
WHEREAS, a major water main failure will leave many residents without water
service and fire protection;
NOW, THEREFORE, the City Council of the City of Arlington Washington does
hereby resolve as follows:
1. The City Council finds an emergency was caused by the July 21, 2018 break in
the Farmstead Estates water main pipe which presents a real and immediate
threat to the proper performance of essential functions, and potential loss or
damage to property, bodily injury, or loss of life if immediate action is not taken,
and therefore competitive bidding requirements for the work necessary as a result
of the emergency are hereby waived.
Approved by the City Council of the City of Arlington this 1st day of October, 2018.
CITY OF ARLINGTON
___________________________
Barb Tolbert, Mayor
ATTEST:
________________________
Kristin Banfield, City Clerk
APPROVED AS TO FORM:
________________________
Steven J. Peiffle, City Attorney
BID PROPOSAL
81ST DR NE & KETIH LN WATER MAINC18-039 09/07/2018 10:06 AMJosh
Bid TotalUnit PriceUnitsQuantityDescriptionBiditem
20,500.0020,500.00LS1.000MOBILIZATION/ DEMOBILIZATION1
16,500.0016,500.00LS1.000TEMPORARY TRAFFIC CONTROL3
2,900.002,900.00LS1.000SHORING OR EXTRA EXCAVATION CLASS A4
3,200.003,200.00LS1.000EROSION CONTROL AND WATER POLLUTION CONTROL5
1,960.00980.00EA2.000REMOVING HYDRANT6
3,760.0047.00LF80.000DUCTILE IRON PIPE FOR WATER MAIN 6" DIAM.9
64,500.0075.00LF860.000DUCTILE IRON PIPE FOR WATER MAIN 8" DIAM.10
3,550.003,550.00EA1.000CONNECTION TO EXISTING WATER MAIN12
1,100.001,100.00EA1.000GATE VALVE 8"15
11,900.005,950.00EA2.000HYDRANT ASSEMBLY17
30,800.001,400.00EA22.000SERVICE CONNECTION 5/8 IN.DIAM. (LONG SIDE)18
9,900.001,650.00EA6.000SERVICE CONNECTION 5/8 IN.DIAM. (SHORT SIDE)19
18,480.00660.00EA28.000SERVICE PRESSURE REDUCING VALVE23
3,120.00260.00SY12.000CEMENT CONC. DRIVEWAY ENTRANCE TYPE RES.24
13,800.00120.00TON115.000HMA FOR PAVEMENT REPAIR CL. 1/2 IN. PG64-2225
5,780.008.50SY680.000REMOVING ASPHALT CONC. PAVEMENT26
4,600.00115.00LF40.000CEMENT CONC. SIDEWALK27
2,900.002,900.00LS1.000RECORD DRAWINGS28
10,000.0010,000.00EST1.000UNFORSEEN CONDITIONS (FORCE ACCOUNT)29
8,000.005.00SY1,600.000PLANING BITUMINOUS PAVEMENT203
2,926.00133.00SY22.000REMOVING CEMENT CONC. SIDEWALK206
800.0020.00LF40.000REMOVING CEMENT CONC. CURB AND GUTTER207
51,940.0098.00TN530.000HMA CL. 1/2 IN. PG64-22210
2,200.0055.00LF40.000CEMENT CONC. TRAFFIC CURB AND GUTTER211
1,500.00100.00TN15.000CRUSHED SURFACING TOP COURSE216
4,600.002,300.00EA2.000CATCH BASIN TYPE 1235
13,300.0095.00LF140.000AWWA C900 PVC STORM PIPE 6-IN. DIAM.236
$314,516.00Bid Total
1
City of Arlington
Council Agenda Bill
Item:
WS #7
Attachment
G
COUNCIL MEETING DATE:
September 24, 2018
SUBJECT:
August 2018 Financial Report
ATTACHMENTS:
Financial Reports –
Narrative
General Fund Operating Statement
Revenue Charts
Other Fund Operating Statements
DEPARTMENT OF ORIGIN
Finance; Kristin Garcia – Finance Director 360‐403‐3431
EXPENDITURES REQUESTED: 0
BUDGET CATEGORY: N/A
BUDGETED AMOUNT: N/A
LEGAL REVIEW:
DESCRIPTION:
Attached is the August 2018 financial report.
HISTORY:
ALTERNATIVES:
RECOMMENDED MOTION:
Workshop; discussion only.