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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: