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AG 21-136 - TWIN LAKES PLAZA, LLCRETURN TO: EXT: CITY OF FEDERAL WAY LAW DEPARTMENT ROUTING FORM 1. ORIGINATING DEPT./DIV: Police Department 2. ORIGINATING STAFF PERSON: Raymond sunk EXT: 3. DATE REQ. BY: 4. 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#): n INTERLOCAL ❑ OTHER 5. PROJECT NAME: Police Substation Lease 6. NAME OF CONTRACTOR: Twin Lakes Plaza, LLC ADDRESS: 33919 9lh Ave 5, Federal Way, WA 98003 TELEPHONE 253-839-4100 E-MAIL: FAX: SIGNATURE NAME: TITLE 7. EXHIBITS AND ATTACHMENTS: ❑ SCOPE, WORK OR SERVICES ❑ COMPENSATION ❑ INSURANCE REQUIREMENTS/CERTIFICATE ❑ ALL OTHER REFERENCED EXHIBITS ❑ PROOF OF AUTHORITY TO SIGN ❑ REQUIRED LICENSES A PRIOR CONTRACT/AMENDMENTS 8. TERM: COMMENCEMENT DATE: 5/1 /2021 COMPLETION DATE: 6/20/2023 9. TOTAL COMPENSATION $ 655 per month = $15,720 for 2 years (INCLUDE EXPENSES AND SALES TAX, IF ANY) (IF CALCULATED ON HOURLY LABOR CHARGE - ATTACH SCHEDULES OF EMPLOYEES TITLES AND HOLIDAY RATES) REIMBURSABLE EXPENSE: ❑ YES A NO IF YES, MAXIMUM DOLLAR AMOUNT: $ IS SALES TAX OWED iOYES ONO IF YES, $ PAID BY: ❑ CONTRACTOR ❑ CITY RETAINAGE: RETAINAGE AMOUNT: ❑ RETAINAGE AGREEMENT (SEE CONTRACT) OR ❑ RETAINAGE BOND PROVIDED ❑ PURCHASING: PLEASE CHARGE TO: 001-2100-111-521-34-452 10. DOCUMENT/CONTRACT REVIEW INITIAL / DATE REVIEWED INITIAL / DATE APPROVED ❑ PROJECT MANAGER It DIRECTOR Andy Hwang 6/10/21 ❑ RISK MANAGEMENT (IF APPLICABLE) 19 LAW jrc 6/15/2021 11. COUNCILAPPROVAL (IF APPLICABLE) COMMITTEE APPROVAL DATE: COUNCIL APPROVAL DATE: 12. CONTRACT SIGNATURE ROUTING ❑ 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.) I T1AL 1 DATE SIGNED I'3 LAW DEPARTMENT L ❑ SIGNATORY (MAYOR OR DIRECTOR) ❑ CITY CLERK tol Vu ❑ ASSIGNED AG# AG# COMMENTS: 2/2017 LEASE AGREEMENT BETWEEN TWIN LAKES PLAZA, LLC AND THE CITY OF FEDERAL WAY THIS AGREEMENT (`'Agreement") made this 23`d day of June, 2021 by and between TWIN LAKES PLAZA, 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 3420 SW 320th Street, Suite B-2, Federal Way, Washington 98023 (the "Property"); and WHEREAS, the City's Police Department has been using office space at the Property as a neighborhood substation; and WHEREAS, Lessee believes that the property will continue to be sufficient to accommodate a neighborhood substation on 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, address 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, exclusive license (the "Lease") to occupy and use a portion of the Property, located at 3420 SW 320th Street, Suite B-2, Federal Way, Washington 98023, 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 Property 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 Six Hundred Fifty -Five and NO/100 Dollars ($655.00) on a monthly basis commencing May 1, 2021. 3. Lessor agrees to pay all 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 exclusive right and privilege to use the Property. 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 property will be available to Lessor with 24 hours' notice to Lessee for the purpose of maintenance. 5. The License Term which shall be limited to the days commencing May 1; 2021 and ending on June 30, 2023. 6. Notwithstanding anything contained herein to the contrary, either party may terminate this agreement early for any reason with thirty (30) days' written notice to the other party. On early termination of the License granted by this Agreement, as well as on the natural termination of this License on June 30, 2023, 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 indemnification obligations, as well as this survival provision, will survive termination or expiration of this Agreement. 7. 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. The Lessor agrees to release indemnify, defend, and hold the Lessee, its elected officials, officers, employees, agents, representatives, insurers, attorneys, and volunteers harmless from any and all claims, demands, actions, suits, causes of action, arbitrations, mediations, proceedings, judgments, awards, injuries, damages, liabilities, taxes, losses, fines, fees, penalties expenses, attorney's fees, costs, and/or litigation expenses to or by any and all persons or entities, including, without limitation, their respective agents, licensees, or representatives, arising from, resulting from, or in connection with this Agreement or the performance of this Agreement, except for that portion of the claims caused by the Lessee's sole negligence. 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. 8. 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. 9. Lessee may not assign its rights hereunder without first obtaining Lessor's approval, which may be granted or withheld in Lessor's sole discretion. 10. 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. 11. 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. 12. 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: Twin Lakes Plaza, LLC. c/o Puget Sound Commercial 33919 9th Ave S, #105 Federal Way, WA 98003 Attn: Courtland Pixton Tel: 253-838-4100 LICENSEE: Federal Way Police Department Attention: Commander Raymond Bunk 33325 8th Ave S Federal Way, WA 98003 Tel. 253-835-6746 13. 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. 14. 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. 15. 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. 16. 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 any improvements, repairs and maintenance in the Property during their tenancy. 17. 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. 18. Lessee is granted a non-exclusive license to use the designated parking areas for police vehicles on the Property 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 parking 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 and year first set forth above. LESSEE: CITY OF FEDERAL WAY: Ji Z.,00000.- rrell, Mayor r DATE: LESSOR: TWIN LAKES BPixton. President STATE OF WASHINGTON ) ss. COUNTY OF ) ATTEST: St ph nie Courtney, CM ity Clerk APPROVED AS TO FORM: J 6J.�ZyaCity Attorne On this day personally appeared before me e~ IAM 10' to me known to be the i�� A jL"tr of 7b)m S PU that executed the foregoing ifts6ment, Ad 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. GIVEN my hand and official seal this MAI day of UJ 72021. �►li►ltl�++ly r INN •`R15�A5T�Notarys signature : �R �0 �Nqary's printed name aTAgH S �$� Notary Public in and for the tate f Washington. ,�; My commission expires 2 = COUNCIL MEETING DATE: September 21, 2021 ITEM #: 5g ......... . CITY OF FEDERAL WAY CITY COUNCIL AGENDA BILL SUBJECT: Lease agreement between Twin Lakes Plaza, LLC and The City of Federal Way for the Twin Lakes Substation. POLICY QUESTION: Should the City of Federal Way/Federal Way Police Department (FWPD) enter into a lease agreement with Twin Lakes Plaza, LLC for a FWPD Twin Lakes Substation for $655 per month? COMMITTEE: PRHSPSC MEETING DATE: Sept. 14, , 2021 CATEGORY: N Consent ❑ Ordinance ❑ Public Hearing ❑ City Council Business ❑ Resolution ❑ Other STAFF REPORT BY: Raymond Bunk, Commander DEPT: Police Department Attachments: 1. Staff Memo 2. Lease Agreement between Twin Lakes Plaza, LLC and the City of Federal Way Options Considered: 1. Accept the proposed Lease Agreement. 2. Reject the proposed Lease Agreement and provide direction to staff. MAYOR'S RECOMMENDATION: Option 1. MAYOR APPROVAL: 7 ,- c; 7 DIRECTOR APPROVAL: 7/23/?i Con iilte Coup l Initial COMMITTEE RECOMMENDATION: I move to forward the proposed agreement to the September 21, 2021 consent agenda for approval. y 14- Z.Z >V Irr+ Committee Chair Committee Member Committee Member PROPOSED COUNCIL MOTION: I move approval of the proposed agreement and authorize Mayor Ferrell to execute said agreement. (BELOW TO BE COMPLETED BY CITY CLERKS OFFICE) I1NC[L AC7'!O APPROVE � 1'21 I WJ, COUNCIL BILL # DENIED 1ST reading ❑ TABLED/DEFERRED/NO ACTION Enactment reading ❑ MOVED TO SECOND READING (ordinances only) ORDINANCE # REVISED — 08/12/2010 RESOLUTION # CITY OF FEDERAL WAY CITY COUNCIL COMMITTEE STAFF REPORT DATE: September 14, 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 Twin Lakes Plaza, LLC and the City of Federal Way, Washington Financial Impacts: Twin Lakes Plaza, LLC will be charging $655 per month ($7,860 per year) to lease this space. This will be paid out of the 001-2100-111-521-34-452 fund. There are no other additional planned or expected costs. Back -around Information: Since 2019, there has been an agreement between Twin Lakes Plaza, LLC and the City of Federal Way for the use of office space, identified as the Twin Lakes Substation, by the Federal Way Police Department. This space is utilized by the Patrol Division, as well as other officers for various police related matters. Twin Lakes Plaza, LLC will provide the secure office space for $655 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 around the Twin Lakes area. The term of this MOU is from May 1, 2021 through June 30, 2023.