HomeMy WebLinkAbout05/07/2013 05C "Race Street Fire House" Property Lease Agreement with Pacific Meter Services, Inc.4 1f
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. G
For Meeting of: 5/7/2013
ITEM TITLE: Resolution authorizing a Lease Agreement with Pacific Meter
Services, Inc. for the rental of the Race Street Fire House
SUBMITTED BY: Mark Soptich, Deputy Fire Chief
SUMMARY EXPLANATION:
The City has previously entered into an agreement with Badger Meter, Inc:, which is
subcontracting with Pacific Meter Services, Inc., for assembly and installation of water meter
systems to accomplish installation of an advanced water metering infrastructure system to
facilitate and promote the efficiency of city water utility operations. The City and Pacific Meter
Services, Inc. have negotiated a Lease agreement whereby Pacific Meter Services, Inc. will
lease the Race Street Fire House property from the City to provide Pacific Meter Services, Inc.
an appropriate location for staging, assembly and installation work associated with performance
of the Agreement for installation of the advanced water metering infrastructure system.
Resolution: X
Other (Specify):
Contract: X
Start Date:
Item Budgeted:
Funding Source /Fiscal
Impact:
Strategic Priority:
Insurance Required? No
Mail to:
Phone:
APPROVED FOR
SUBMITTAL:
Ordinance:
Contract Term:
End Date:
Amount:
City Manager
RECOMMENDATION:
ATTACHMENTS:
Name: Description:
E] RESOLUTION (2 Race Street Fire House May 7 2013.docx Resolution
0 LEASE(3) FINAL (3).docx Lease Agreement
RESOLUTION NO. R -2013-
A RESOLUTION authorizing the City manager to execute a lease of the "Race Street
Fire House" property to Pacific Meter Services, Inc., to facilitate
advanced water metering infrastructure installation work.
WHEREAS, the City of Yakima (City) owns a parcel of real property consisting of a
building and parking lot facilities located at 1216 East Race Street. Which property is
currently known as the "Race Street Fire House" property, and which property is currently
not being used for fire department or other city purposes; and
WHEREAS, the City has previously entered into an agreement with Badger Meter,
Inc., which is subcontracting with Pacific Meter Services, Inc., for assembly and
installation of water meter systems to accomplish installation of an advanced water
metering infrastructure system to facilitate and promote the efficiency of city water utility
operations; and
WHEREAS, the City and Pacific Meter Services, Inc. have negotiated a Lease
agreement whereby Pacific Meter Services, Inc. will lease the Race Street Fire House
property from the City to provide Pacific Meter Services, Inc. an appropriate location for
staging, assembly and installation work associated with performance of the Agreement for
installation of the advanced water metering infrastructure system; and
WHEREAS, such Lease term is drafted to correspond to the anticipated term
necessary to complete the water metering system, and includes a rental consistent with
fair market rental of such property; and
WHEREAS, the City Council finds and determines that approval of such Lease is
in the best interest of residents of the City of Yakima, will promote the efficient
performance of the work of installing the advanced water metering infrastructure system,
and will promote the general health, safety and welfare; therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute and administer the Lease with
Pacific Meter Services, Inc. for the Race Street Fire House property, a copy of which
Lease is attached hereto as Exhibit "A" and by reference made a part hereof, now,
therefore,
ADOPTED BY THE CITY COUNCIL this 7th day of May, 2013.
ATTEST:
Micah Cawley, Mayor
City Clerk
LEASE
THIS LEASE is made this day of May, 2013, by and between the CITY OF
YAKIMA, a municipal corporation of the State of Washington, hereinafter referred to as
LESSOR, and Pacific Meter Services, Inc., a Nevada corporation, hereinafter referred to
as TENANT, on the following terms and conditions:
1. Parties. The parties are as follows:
A. Lessor: City of Yakima, a municipal corporation of the State of
Washington, with City Hall located at 129 North 2nd Street, Yakima, Washington 98901.
B. Tenant: Pacific Meter Services, Inc., with business offices at 550 W.
Plumb Lane, #459; Reno, NV 89509.
C. Advanced Metering Infrastructure System. LESSOR and Badger
Meter, Inc. have entered into a separate Agreement pursuant to City of Yakima RFP
No. 11225 -P, whereby Badger Meter, Inc. shall provide installation and associated work
to establish an Advanced Metering Infrastructure System for LESSOR. TENANT is a
subcontractor for Badger Meter, Inc. and will perform installation and associated work
on behalf of Badger Meter, Inc. The parties have determined that the property described
in Section 2 below is sufficient to allow TENANT to perform its work under such
agreement, and will provide a suitable staging area for the performance of such work.
2. Property Leased. LESSOR hereby leases to TENANT the following described
real property owned by LESSOR within the City of Yakima, Washington, commonly
known as the "Race Street Fire House," with street address of 1216 East Race Street,
Yakima, Washington, legally described as follows:
Beginning 20 feet South and 528 feet West of the Northeast Corner of the
Southwest Quarter of the Southwest Quarter of Section 19, Township 13 North,
Range 19 East, W.M.;
THENCE South 145.65 feet;
THENCE West 65.95 feet;
THENCE North 145.65 feet;
THENCE East 66 feet to point of beginning;
Being the North one -half of the East one -half of Block 2, Kay's Acre Tracts
(unrecorded).
1
Situate in Yakima County, State of Washington
Yakima County Assessor's Parcel No. 191320-33014
3. Term. The term of this Lease shall be month to month up to a maximum of
twelve months, commencing May 15, 2013 and continuing month to month thereafter
until terminated pursuant to Section 5 below; Provided, however, that this Lease shall
terminate in any event at midnight, April 30, 2014.
4. Rent. TENANT agrees to pay monthly rent to LESSOR in the amount of One
Thousand Two Hundred Dollars ($1,200.00) per month, payable in advance on or
before the tenth day of each month; provided, however, that rental for the month of May
2013 shall be prorated for the period May 15 through May 31, 2013, and the rental for
such prorated period shall be $600.00, payable upon execution of this Lease.
5. Termination of Lease. This Lease may be terminated at any time by either
party upon delivery of thirty (30) days advance written notice of termination to the other
party. It is the intention and understanding of the parties that the term of this Lease
shall correspond to the term of work under Badger Meter. Inc.'s Agreement with
LESSOR for the Advanced Metering Infrastructure system. Upon conclusion of the
work described in such Agreement, this Lease shall terminate on a date agreed by the
parties, which date shall be determined sufficient to allow TENANT to remove all its
equipment, business fixtures and property from the leased premises, shall restore such
premises to its original condition (normal wear and tear excepted), and shall return all
keys to LESSOR.
6. Use of Premises. The lease property shall be used by TENANT for the
purpose of performing work pursuant to the Advanced Metering Infrastructure System
agreement with LESSOR, for storage of TENANT "s equipment and parts, associated
assembly and distribution, staging of TENANT "s employees and vehicles, and other
purposes related to TENANT "s performance of such agreement. The storage of
flammable materials is prohibited, except for incidental flammable materials necessary
for the efficient performance of TENANT "S work. Any such flammable materials shall
be stored in a manner compliant with applicable provisions of the LESSOR's building
and fire codes.
7. Taxes. TENANT shall pay all general taxes and assessments levied against the
leased property during the term of this Lease. TENANT shall timely pay any and all
2
business taxes levied against TENANT on account of the conduct of TENANT "s
business on, and use of, the leased property.
8. Insurance. TENANT shall, during the entire term of the Lease, keep in full
force and effect a policy or policies of public liability or property damage insurance with
respect to the leased premises, sidewalks and business operated by TENANT and any
subtenant of TENANT in the leased premises, in which the limits of public liability shall
not be less than $1,000,000.00 per occurrence and $2,000,000.00 aggregate, and in
which the property damage liability shall not be less than $100,000.00. The Policy shall
name the LESSOR, together with its agents and employees, and TENANT as insured,
and shall contain a clause that the insurer will not cancel or change the insurance
without first giving LESSOR ten (10) days prior written notice. The insurance shall be
issued by a responsible insurance company or companies chosen by TENANT.
9. Operating Expenses. It is the intention of the parties and they hereby agree
that this shall be a Triple Net Lease, and the LESSOR shall no obligation to provide any
services, perform any acts or pay any expenses, charges or costs of any kind
whatsoever with respect to the leased premises, and the TENANT hereby agrees to pay
one hundred percent (100 %) of any and all Operating Expenses as hereafter defined for
the entire term of the Lease and any extensions thereof in accordance with specific
provisions hereinafter set forth. The term Operating Expenses shall include all costs to
LESSOR of operating and maintaining the Building and related parking areas, and shall
include, without limitation, real estate and personal property taxes and assessments,
management fee, heating, electricity, water, waste disposal, sewage, operating
materials and supplies, service agreements and charges, lawn care, snow removal,
restriping, repairs, repaving, cleaning and custodial, security, insurance, the cost of
contesting the validity or applicability of any governmental acts which may affect
operating expenses, and all other direct operating costs of operating and maintaining
the Building and related parking areas, unless expressly excluded from operating
expenses. Notwithstanding the foregoing, operating costs (and TENANT's obligations in
relation thereto) shall not include (i) any expense chargeable to a capital account or
capital improvement, ground leases; principal or interest payments on any mortgage or
deed of trust on the premises; (ii) any amount for which LESSOR is reimbursed through
insurance, by third persons, or directly by other tenants of the premises, (iii) repair costs
occasioned by fire, windstorm or other casualty, (iv) any construction, repair or
maintenance expenses or obligations that are the sole responsibility of LESSOR (not to
be reimbursed by TENANT), (v) leasing commissions and other expenses incurred in
connection with leasing any other area located on the premises to any other party, (vi)
any expense representing an amount paid to an affiliate or subsidiary of LESSOR which
is in excess of the amount which would be paid in the absence of such relationship, and
(vii) costs of items and services for which TENANT reimburses LESSOR or pays third
persons directly.
3
10. Care of Property. TENANT agrees that it has inspected the premises and
knows the condition thereof, and the same are now in good condition, and it agrees and
warrants that it will at all times keep the same in as good, clean, and satisfactory
condition as the premises are now in, or the condition to which they may be improved,
and upon termination of this Lease, it will return the same to LESSOR in as good a
condition as the same are now in, or the condition to which they may be improved, less
reasonable wear and tear thereof by ordinary use. TENAT further warrants and agrees
that it will not commit any waste on said premises nor damage same, nor permit waste
or damage by others. It is recognized that TENANT may make certain improvements to
the property, and any such improvements made to the leased property shall remain
thereon, and LESSOR shall own all such improvements upon the termination or other
expiration of this Lease.
11. Assignment —Subletting. TENANT shall have the right to assign or sublease
the leased property but only after receiving the LESSOR'S prior written consent. In the
event that TENANT assigns or subleases the leased property pursuant to this section,
TENANT shall remain primarily liable for performance of the covenants contained in this
Lease.
12. Inspection. LESSOR shall have the right, at all times, to enter upon the leased
premises at reasonable times for the purposes of inspecting the leased premises.
TENANT hereby grants to the LESSOR an irrevocable license and right of access, by
LESSOR's agents and employees, through, over, and across the leased property for
such purposes.
13. Forfeiture. Time is of the essence of this Lease. In the event TENANT fails to
pay any installment of rent or fails to comply with any other covenant, term or condition
of this Lease, the LESSOR may, in addition to any other remedy authorized by law,
forfeit this Lease; PROVIDED, however, the LESSOR shall give the TENANT written
notice specifying the breach claimed and give the TENANT:
(i) Three (3) days to remedy the breach if it involves failure to pay any
installment of rent or portion thereof, it vacate the property; or
(ii) Three (3) days to quit the property if the breach involves the committing or
permitting of waste upon the property, setting up or carrying on any unlawful
business on the property, or erecting, suffering, permitting or maintaining any
nuisance on the property; or
(iii) Ten (10) days to remedy the breach if it involves failure or neglect of
TENANT to keep or perform any other covenant, term or condition of the Lease.
14. Indemnification of Lessor. TENANT shall protect, defend, indemnify, and
hold LESSOR harmless from and against any and all claims, demands, damages,
losses, liens, liabilities, penalties, fines, lawsuits, and other proceedings and costs and
expenses (including attorneys' fees and disbursements), which accrue to or are incurred
4
by LESSOR and arise directly or indirectly from or out of, related to, or in any way
connected with (1) any activities on the leased property during TENANT's possession or
use of the property which directly or indirectly result in the property or any other property
becoming contaminated with hazardous substances or wastes, (2) the presence,
discovery, or cleanup of any hazardous substances released or existing on or under the
leased property at any time during the TENANT's possession or use of the property,
and (3) any third -party claims resulting from TENANT's use or occupancy of the leased
property, or any acts or omissions of TENANT in connection therewith. When used in
this Lease, the term "hazardous substance" shall be defined to mean any substance or
material defined or designated as hazardous or toxic waste, hazardous or toxic material,
a hazardous, toxic or radioactive substance, or other similar term, by the federal, state,
or local environmental statute, regulation, or ordinance presently in effect or that may be
promulgated in the future, as such statutes, regulations, and ordinances may be
amended from time to time, including but not limited to, the federal Resource
Conservation Recovery Act of 1976, 42 U.S.C. Section 6901 et seq., the Federal
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, 42
U.S.C. Section 9601 et seq., the Federal Toxics Substances Control Act, 15 U.S.C.
Section 2601 et seq., the Washington Solid Waste Management- Recover and Recycling
Act, Chapter 70.95 RCW, and the Washington Model Toxics Control Act, Chapter
70.105D RCW.
15. Effect. This Lease, and all the terms, conditions and covenants thereof, shall
inure to the benefit of LESSOR, its successors and assigns, and shall run and be
binding upon TENANT, its successors and assigns.
16. Interpretation. The paragraph headings used herein are for identification
purposes only, and shall not be construed as modifying or limiting the actual language
and content of the paragraphs or sections themselves.
17. Attorney Fees — Venue. In the event of any litigation arising out of this Lease,
the prevailing party shall be entitled to a reasonable attorney fee, and venue for any
claim shall lie in Yakima County, Washington.
18. Notices. All notices to be given by the parties are to be in writing and may be
either served personally or may be deposited in the United States Mail, postage
prepaid, either registered or certified mail, with certificate of mailing obtained, and shall
be given to the last known address of the party to whom the notice is addressed. The
effective date of the giving of the notice, or the day from which any time period shall run,
shall be the day notice is deposited in the United States Mail, or the date notice is
personally served. The parties have designated the following persons as persons
entitled to receive notice hereunder:
For LESSOR: For TENANT:
City Manager Wade Glanek, Project Manager
City of Yakima 4545 West Brown Deer Road
129 North 2nd Street P.O. Box 245036
Yakima, Washington 98901 Milwaukee, Wisconsin 53224 -9536
19. Entire Agreement. This lease agreement constitutes the entire agreement of the
parties regarding the leased premises and the parties' rights and obligations pertaining
to the lease of such premises. This lease agreement shall not be modified or amended
except in writing signed by both parties.
20. Effective Date — Date of Occupancy. This Lease shall be effective on the date
first referenced above, and TENANT shall be entitled to occupy the premises
commencing May 15, 2013.
LESSOR — CITY OF YAKIMA TENANT — PACIFIC METER SERVICES, INC.
By: By:
Tony O'Rourke, City Manager Wade Glanek, Project Manager
ATTEST:
By:
Sonya Claar Tee, City Clerk
STATE OF
) ss.
County of
ATTESTATION
This is to certify that on this day personally appeared before me
and , personally known to me to be the
and the of PACIFIC METER SERVICES, INC., who executed the
within and foregoing instrument, and acknowledged that they signed the same as their
free and voluntary act and deed for the uses and purposes therein mentioned.
GIVEN UNDER my hand and official seal this day of
11
, 2013.
NOTARY PUBLIC in and for
the State of
Residing at
My commission expires:
STATE OF WASHINGTON)
) ss.
County of Yakima )
This is to certify that on this day personally appeared before me TONY O'ROURKE,
personally known to me to be the City Manager of the CITY OF YAKIMA, who executed
the within and foregoing instrument, and acknowledged that he signed the same as his
free and voluntary act and deed for the uses and purposes therein mentioned.
GIVEN UNDER my hand and official seal this day of , 2013
NOTARY PUBLIC in and for
the State of Washington,
Residing at
My commission expires: