AG 21-016 - BALLI ROAD, LLCRETURN TO:
EXT:
I CITY OF FEDERAL WAY LAW DEPARTMENT ROUTING FORM I
1. ORIGINATING DEPT./DIV: Police Department
2. ORIGINATING STAFF PERSON: Raymond Bunk
4.
EXT:
3. DATE REQ. BY:
TYPE OF DOCUMENT (CHECK ONE):
❑ CONTRACTOR SELECTION DOCUMENT (E.G., RFB, RFP, RFQ)
❑ PUBLIC WORKS CONTRACT ❑ SMALL OR LIMITED PUBLIC WORKS CONTRACT
❑ PROFESSIONAL SERVICE AGREEMENT ❑ MAINTENANCE AGREEMENT
❑ GOODS AND SERVICE AGREEMENT ❑ HUMAN SERVICES / CDBG
❑ REAL ESTATE DOCUMENT ❑ SECURITY DOCUMENT (E,G. BOND RELATED DOCUMENTS)
❑ ORDINANCE ❑ RESOLUTION
❑ CONTRACT AMENDMENT (AG#): A INTERLOCAL
❑ OTHER
5. PROJECTNAME: Police Substation Lease
6.
NAM E OF CONTRACTOR: Balli Road, LLC
ADDRESS:
E-MAIL:
SIGNATURE NAME:
T1
TELEPHONE
FAX:
7. EXI-I IBITS AND ATTACHMENTS: ❑ SCOPE, WORK OR SERVICES ❑ COMPENSATION ❑ INSURANCE REQUIREMENTS/CERTIFICATE ❑ ALL
OTHER REFERENCED EXHIBITS ❑ PROOF OF AUTHORITY TO SIGN ❑ REQUIRED LICENSES 19 PRIOR CONTRACT/AMENDMENTS
8. TERM: COMMENCEMENT DATE: 1/1/2021
COMPLETION DATE: 12/31/2022
9. TOTAL COMPENSATION $ 3500 per month = 84k for 2 years (INCLUDE EXPENSES AND SALES TAX, IF ANY)
(1 F CALC U LATED ON HOURLY LABOR CHARGE - ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES)
REIMBURSABLE EXPENSE: ❑ YES A NO 1F YES, MAXIMUM DOLLAR AMOUNT: $
IS SALES TAX OWED 10YES ONO IF YES, $ PAID BY: ❑ CONTRACTOR ❑ CITY
RETAINAGE: RETAIN AGE AMOUNT: ❑RETAINAGE AGREEMENT (SEE CONTRACT) OR ❑RETAINAGE BOND PROVIDED
19 PURCHASING: PLEASE CHARGE TO:
10. DOCUMENT/CONTRACT REVIEW INITIAL/DATE REVIEWED
IR PRO.IECTMANAGER
❑ DIRECTOR
❑ RISK MANAGEMENT (IFAPPLICABLE)
A LAW DK 10-20-2020
11. COUNCI LAPPROVAL (IF APPLICABLE) COMMITTEE APPROVAL DATE
12. CONTRACT SIGNATURE ROUTING
INITIAL / DATE APPROVED
COUNCIL APPROVAL DATE:
❑ SENT TO VENDOR/CONTRACTOR DATE SENT: DATE REC'D:.
❑ ATTACH: SIGNATURE AUTHORITY, INSURANCE CERTIFICATE, LICENSES, EXHIBITS
❑ CREATE ELECTRONIC REMINDER/NOTIFICATION FOR I MONTH PRIOR TO EXPIRATION DATE
(Include dept. support staff if necessary and feel free to set notification more than a month in advance if council approval is needed.)
❑ LAW DEPARTMENT
❑ SIGNATORY (MAYOR OR DIRECTOR)
❑ CITY CLERK
❑ ASSIGNED AG#
COMMENTS,.
INITIApL / DATE SIGNED
L 7.
AG#
2/2017
LEASE AGREEMENT
BETWEEN
BALLI ROAD, LLC AND THE CITY OF FEDERAL WAY
THIS AGREEMENT ("Agreement") made on the date indicated by the signatures
below, by and between BALLI ROAD, LLC, a Washington Limited Liability Company
hereinafter referred to as "Lessor", and the CITY OF FEDERAL WAY, a municipal corporation
of the State of Washington hereinafter referred to as "Lessee."
WHEREAS, Lessor is the owner of certain real property that includes office space
containing fixtures and equipment located at 31620 23rd Ave S, Suite 102, Federal Way,
Washington 98003 (the "Property"); and
WHEREAS, the City's Police Department has been using office space at the Property as
a downtown substation; and
WHEREAS, Lessee believes that the property will be continue to be sufficient to
accommodate a downtown substation within the existing retail space within the Property; and
WHEREAS, Lessor has agreed to permit Lessee to continue to use the Property for such
police office use subject to certain conditions; and
WHEREAS, Lessee desires to continue to use the Property, subject to the terms and
conditions provided for herein,
NOW THEREFORE, for good and valuable consideration, the receipt of which are
hereby acknowledged and the terms of which are hereinafter outlined, the parties agree as
follows:
1. Lessor hereby grants to Lessee a temporary, non -perpetual, non-exclusive license (the
"Lease") to occupy and use a portion of the Property for use as a substation of the Federal Way
Police Department. Lessee's use of the Property shall be in compliance with any and all
conditions of any applicable permits, licenses and other governmental and regulatory approvals
and in compliance with all applicable laws, statutes, and governmental rules and regulations.
This Lease will be used by Lessee and its employees, agents, and representatives, subject to all
the terms and conditions of this Agreement.
2. Lessee shall pay Lessor rent in the amount of Three Thousand and N01100 Dollars
($3,000.00) on a monthly basis commencing January 1, 2021.
3. Lessee shall not be required to pay for electric utilities associated with the lighting
and/or heating of the Property during the term of this Agreement.
4. Lessor hereby grants to Lessee the non-exclusive right and privilege to enter on the
Property for the purposes set out herein. Lessee's use of the Property shall be conducted in a
manner whereby it will not preclude or interfere with Lessor's use of the Property and/or any
adjacent property. In addition, Lessee agrees that the retail space will be available to Lessor with
24 hours' notice to Lessee for the purpose of showing the space to potential renters.
5. The Property may be used by Lessee solely for the purpose described in paragraph 1
herein, during the Lease Terra which shall be limited to the days commencing January 1, 2021
and ending on December 31, 2022. if at any time during the course of the License Agreement the
retail space is rented to a new renter, Lessor may choose to allow Lessee to utilize similar retail
space within the Property subject to the same conditions listed in this License Agreement.
6. Lessee agrees that it shall use the Property for only the stated purposes and no other
purpose. Lessee shall be solely responsible for undertaking the activities on the Property in a
safe, secure and careful manner without waste or damage to the Property or improvements
thereon. Lessee will not be a nuisance or menace to other tenants in the Building and shall not in
any way interfere with the quiet enjoyment of such other tenants. Additionally, Lessee shall
clean up and remove any debris created by such activities prior to the termination of the Term of
this License. Lessee hereby acknowledges and agrees that It has inspected the Property and
examined all conditions thereon relative to Lessee's use thereof, and that Lessor makes no, and
expressly disclaims, any warranty or representation as to the condition of Property, its safety or
suitability for Lessee's intended activities, or as to any improvements thereon, whether express,
implied or arising by operation of law, including, without limitation, any warranty of fitness for
any particular purposes.
7. Notwithstanding anything contained herein to the contrary, Lessor may terminate this
agreement early for any reason with thirty (30) days' notice upon Lessor's notification to Lessee.
On early termination of the License granted by this Agreement, as well as on the natural
termination of this License on December 31, 2022, Lessee shall quietly and peaceably surrender
the Lessor's Property in a manner that fully complies with all applicable state, federal, or local
statute, regulation or ordinance and will leave the Lessor's Property in as good condition as such
Property was in at the time of Lessee's entry on the Property under this Agreement. Furthermore,
the terms of this Agreement that would, by their nature, survive termination, including, without
limitation, the terms that govern Lessee's removal obligations and Lessee's indemnification
obligations, as well as this survival provision, will survive termination or expiration of this
Agreement,
8. Lessee agrees to defend and to indemnify and hold Lessor, its parent, subsidiaries,
affiliates, and Its and their officers, directors, shareholders, agents, employees, and
representatives harmless from and against any and all losses, costs, claims, damages, and
liabilities, Including reasonable attorney's fees, court costs, and fees of expert witnesses, arising
from Lessee's use of the Property as a police substation and from any of Lessee's police activities
conducted on the Property. Lessor is responsible for maintaining the Property, including
common areas, in a safe condition for commercial use and Lessee's indemnification does not
cover Lessor's legal duties as a landlord and property owner.
9. During the Term hereof, Lessee shall have in full force and effect commercial general
liability Insurance with respect to Lessee's use of the Property and the activities and operations of
Lessee on the Property, with a limit for bodily injury, death, property damage and personal injury
of not less than One Million and NO/Dollars ($1,000,000.00) per occurrence. Two Million and
NO/Dollar ($2,000,000) general aggregate. A certificate of insurance shall be delivered to Lessor
evidencing the coverage required herein prior to commencing any activity on the Property.
Lessee' shall include Lessor and Lessor's property manager, Power Property Consultants, Inc., as
additional insureds on the policy.
10. Lessee may not assign its rights hereunder without first obtaining Lessor's approval,
which may be granted or withheld in Lessor's sole discretion.
11. This Agreement shall constitute the -entire agreement between the parties and any
prior understanding or representation of any kind preceding the date of this Agreement shall not
be binding upon either party except to the extent incorporated in this Agreement. No alteration,
modification, amendment, or waiver hereto shall be valid unless evidenced by a writing signed
by both parties hereto.
12. Lessee shall not permit the roads or any driveways, sidewalks or other rights -of -way
adjacent to the Property to be obstructed or disturbed in connection with the use of the Property.
13. All notices, demands, or requests required or permitted to be given under this
Agreement shall be hand -delivered or sent by mail, return receipt requested and addressed to the
parties as follows:
LICENSOR: Balli Road, LLC
c/o Power Property Consultants, Inc.
31620 23rd Ave S #218
Federal Way, WA 98003
Attn: John Hunt
Tel: 253-214-2122
LICENSEE: Federal Way Police Department
Attention: Commander Raymond Bunk
33325 8th Ave S
Federal Way, WA 98003
Tel. 253-835-6746
14. The failure of either party to this Agreement to insist upon the performance of any of
the items and conditions of this Agreement, or the waiver of any breach of any of the terms and
conditions of this Agreement, shall not be construed as thereafter waiving any such terms and
conditions, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.
15. The invalidity of any portion of this Agreement will not and shall not be deemed to
affect the validity of any other provision. In the event that any provision of this Agreement is
held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full
force and effect as if they had been executed by both parties subsequent to the expungement of
the invalid provision.
16. This Agreement may be executed in one (1) or more counterparts, all of which taken
together shall constitute one (1) instrument and constitutes the entire Agreement between the
parties as to the subject matter herein described.
17. Lessee has Inspected the Property and accepts the space in its current state "as -is."
Lessee, at Lessee's sole cost, will be responsible for an improvements, repairs and maintenance
in the Property during their tenancy.
18. Lessee, at Lessee's sole cost, may install signage. Lessor will review and approve
signage and proposed location prior to signage Installation. At the end of the tenancy, whether by
natural or early termination, Lessee, at Lessee's sole cost, will have the signage removed and the
impacted area returned to its condition prior to signage installation.
19. Lessee is granted a non-exclusive license to use the designated parking areas for
police vehicles. In the Project for the use of motor vehicles during the term of this Agreement.
Lessor reserves the right at any time to grant similar non-exclusive use to other tenants, to
promulgate rules and regulations relating to the use of such parking areas, including reasonable
restrictions on parking by tenants and lessor. The Parties agree that two packing stalls, the
selection of which is to be mutually agreed upon by the Lessor and the Lessee, will be designated
as police use only. These stalls will be located for maximum visibility to the adjacent streets and
transit center and may have a marked patrol car present at certain times to deter criminal activity.
Any and all costs associated with markings or signage for these designated spaces will be borne
by the Lessee.
IN WITNESS WHEREOF, Lessor and Lessee have executed this agreement as of the
date indicated below.
LESSEE:
CITY OF FEDERAL WAY:
.Tin errell, Mayor
DATE:`
LESSOR:
BALLI ROAD, LLC
Patrick W. Rhodes, Manager
ATTEST:
tep anie Courtney, CMd City Clerk
APPROVED AS TO FORM:
V &A
J. Ryan Call, City Attorney
STATE OF WASHINGTON )
ss.
COUNTY OF
On this day personally appeared before me J�+ LCS
, to me known to be the
of L that executed the
foregoing instrur nt, and acknowledged the said instrument to be the free and voluntary act and
deed of said limited liability company, for the uses and purposes therein mentioned, and on oath
stated that he/she was authorized to execute said instrument.
,r• b (� r
GIVEN my hand and official seal this day of ' I rl • h , 20A.
,H`yµ11H1lI�l���, ,
RICFIF�; a, Notary's signatureAmo-)
PA. .oW192 y=.3 Notary's printed n�' ` c .
'���Y ... ' �%s Notary Public in and for the State of as iington.
r' a4 N s My commission expires f f
�yry.�q'�.E IOF 1� P`c����`•
COUNCIL MEETING DATE: January 19, 2........................ .021. ...... ITEM #: 51
........ . .......................
CITY OF FEDERAL WAY
CITY COUNCIL
AGENDA BILL
SUBJECT: Lease agreement between Balli Road, LLC and The City of Federal Way for the Downtown
Substation.
POLICY QUESTION: Should the City of Federal Way/Federal Way Police Department (FWPD) enter into
an Agreement with Balli Road, LLC for a FWPD Downtown Substation for $3000 a month?
COMMITTEE: PRHS&PSC MEETING DATE: January 12, 2021
CATEGORY:
® Consent ❑ Ordinance ❑ Public Hearing
❑ City Council Business ❑ Resolution ❑ Other
STAFF REPORT BY: Ra-X mond Bu.nkz.Corninan.der . ... DEPT: Police Department
- ._.__�._._..._.._.._......_ — . _:....._......_. ..._............_....... ..... .... __..... .................... .............
Attachments:
1. Staff Memo
2. MOU between Balli Road, LLC and the City of Federal Way
Options Considered:
1. Accept the MOU
2. Reject the MOU
MAYOR'S RECOMMENDATION:MAYOR APPROVAL:
ion 1
APPROVAL:
Imnai
COMMITTEE RECOMMENDATION: I move to forward the MOU between Balli, LLC. and the City of Federal Way
to the January 19, 2021 consent agenda for approval.
Committee Chair Committee Member Committee Member
PROPOSED COUNCIL MOTION: I move approval of the proposed lease agreement between Balli Road, LLC.
and the City of Federal Way, for the continued FWPD Downtown Substation, and authorize the Mayor to
execute said agreement.
(BELOW TO BE COMPLETED BY CITY CLERKS OFFICE)
I N('II- A('T[O:
APPROVE[ O`Itq"' ( f� �
COUNCIL BILL #
DENIED ` �1
I" reading
❑
"TABLED/DEFERRED/NO ACTION
Enactment reading
❑
NIOVED TO SECOND READING (ordinances only)
ORDINANCE #
REVISED
— 08/ 12/2010
RESOLUTION #
CITY OF FEDERAL WAY
CITY COUNCIL COMMITTEE STAFF REPORT
DATE: January 12, 2021
TO: Parks, Recreation, Human Services and Public Safety Council Committee
VIA: Jim Ferrell, Mayor
FROM: Andy J. Hwang, Chief of Police
SUBJECT: Lease Agreement between Balli Road, LLC and the City of Federal Way,
Washington
Financial Impacts:
Balli Road, LLC will be charging $3,000 a month for rent for this space. There are no other
planned or expected costs.
BackUound Information;_
Since 2015, there has been an agreement between Balli Road, LLC and the City of Federal Way
for the use of office space, identified as the Downtown Substation, by the Federal Way Police
Department. This space is utilized by the Traffic Division, as well as other officers for various
police related matters.
Balli Road, LLC will provide the secure office space for $3,000 a month and parking for police
vehicles will be available. FWPD officers will utilize the space for administrative tasks, and
when available, provide assistance with law enforcement issues arising at or near the Transit
Station.
The term of this MOU is from January 1, 2021 through December 3, 2022.
1