HomeMy WebLinkAboutR-2014-096 Race Street Fire House Property Lease to General Pacific, Inc. RESOLUTION NO. R- 2014 -096
A RESOLUTION authorizing the City manager to execute a lease of the "Race Street Fire
House" property to General Pacific, Inc., to facilitate advanced water
metering infrastructure installation work for Yakima County
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, General Pacific, Inc. has previously entered into an agreement with Yakima
County for assembly and installation of meter systems to accomplish installation of an advanced
metering infrastructure system to facilitate and promote the efficiency of county metering
operations; and
WHEREAS, the City and General Pacific, Inc. have negotiated a Lease agreement
whereby General Pacific, Inc. will lease the Race Street Fire House property from the City to
provide General Pacific, Inc. an appropriate location for staging, assembly and installation work
associated with performance of the agreement for assembly and installation of the advanced
metering infrastructure system for Yakima County; 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 assembling and installing the advanced metering infrastructure system for Yakima
County, 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
General Pacific, 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 15 day of July, 2014.
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ATTEST. Micah Cawley, M , or
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THIS LEASE is made this 15 day of July, 2014, by and between the CITY OF
YAKIMA, a municipal corporation of the State of Washington, hereinafter referred to as
LESSOR, and General Pacific, Inc., an Oregon corporation, hereinafter also 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 2 Street, Yakima, Washington 98901.
B. Tenant: General Pacific, Inc., with business offices at 22414 NE
Townsend Way, Fairview, Oregon 97024 -4623, and mailing address of P.O. Box 70,
Fairview, Oregon 97024 -0070.
C. Advanced Metering Infrastructure System — Yakima County TENANT
has entered into a separate Agreement with Yakima County whereby General Pacific,
Inc. shall provide installation and associated work to establish an Advanced Metering
Infrastructure System for Yakima County. TENANT will perform meter assembly,
installation and associated work for Yakima County pursuant to , such agreement.
TENANT estimates that it will need suitable building and facilities for approximately
three months, commencing in July 2014, for the performance of such work. 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;
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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).
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 July 16, .2014 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, December 31, 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 that the prorated rental for July 2014 shall
be Six Hundred Dollars ($600).
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 General Pacific, Inc.'s Agreement with
Yakima County for the completion of the 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 metering infrastructure system agreement
with Yakima County, 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.
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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
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
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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.
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. TENANT 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
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(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
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.
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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 Lori Bryson, Project Manager
City of Yakima 22414 NE Townsend Way
129 North 2nd Street Fairview, Oregon 97024 -4623
Yakima, Washington 98901 (P.O. Box 7.0
Fairview, Oregon 97024 -0070)
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 July 16, 2014.
LESSO ` — CITY 0 YAK TENANT — GENERAL PACIFIC, INC.
By1111
o , City Manager ichard Hall, "resident
CITY CONTRA r" :
RESOLUTION NO � %c/ ... -/i By 4 ! f
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ATTEST:
By:
Sonya Claar Tee, City Clerk
ATTESTATION
STATE OF OREGON )
) ss.
County of Multnomah )
This is to certify that on this day personally appeared before me RICHARD HALL and
ROBERT BINGHAM, personally known to me to be the President and Chief Executive
Officer, respectively, of GENERAL PACIFIC, 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 30 day of one , 2014.
OFFICIAL SEAL (A TA a
'- i—e LISA MARIE HOLLINGSHEAD
.�• < Y and for
PUBLIC in
` ," NOTARY PUBLIC – OREGON
Nb, the State of 0('�go+n
' l f COMMISSION NO. A474608
MY COMMISSION EXPIRES JANUARY 28 ,2017 Residing at rYlultnvivicoh COvnty
My commission expires: 01 1911am
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 I day of0) , 2014.
1 NOTARY PUBLIC in and for
TAMMY REGIMBAL the State of Washington,
Notary Public Residing at v4""'aY QUO •
a p k eS My commission expires: - a - 2 I 1
July 9,2017
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 5.C.
For Meeting of: July 15, 2014
ITEM TITLE: Resolution approving lease of City -owned "Race Street Fire
House" property to General Pacific, Inc., for automated meter
assembly work and staging area to facilitate automated meter
installation contract between General Pacific, Inc. and
Yakima County.
SUBMITTED BY: Mark Soptich, Deputy Chief, Yakima Fire Department
SUMMARY EXPLANATION:
In 2013, the City of Yakima contracted with Badger Meter, Inc. for assembly and installation of
an automated water meter system serving water utility customers of the City of Yakima. As part
of this contract, the city entered into a Lease with Pacific Meter Services, Inc., a subcontractor
of Badger Meter, Inc., to allow such subcontractor to use city property at 1216 East Race Street,
known as the "Race Street Fire House," for assembly of the meter system and a staging area
for installation activities. The leased premises worked well for such activities and the contract
was successfully completed.
General Pacific, Inc. has entered into a separate Agreement with Yakima County whereby
General Pacific, Inc. will provide, assembly, installation and associated work to establish an
advanced metering infrastructure system for Yakima County. General Pacific, Inc. states that it
will need suitable facilities for approximately three months, commencing in July 2014, for the
performance of such work. General Pacific, Inc. has requested a lease of the Race Street Fire
House property for these purposes. The parties have negotiated a Lease for the premises for
the term of such work, and have negotiated a rental of $1,200 per month, which has previously
been determined appropriate as fair market rental for the property.
Resolution: X Ordinance:
Other (Specify): Lease
Contract: Contract Term:
Start Date: July 16, 2014 End Date: On or before December 31, 2014
Item Budgeted: No Amount:
Funding Source /Fiscal General Fund Revenue: $3,600.00 estimated
Impact: revenue.
Strategic Priority: Public Trust and Accountability
Insurance Required? Yes
Mail to: Copy to Richard Hall, President, General Pacific, Inc., P.O.
Box 70, Fairview, OR 97024 -0070
Phone: 503 - 907 -2900
APPROVED FOR
SUBMITTAL: 441 6). City Manager
RECOMMENDATION:
Staff recommends approval of the agreement.
ATTACHMENTS:
Description Upload Date Type
Resolution- (2)Race Street Fire House May 7/3/2014 Resolution
30.2014
0 Lease - General Pacific.Race Street July 3.2013 7/3/2014 Contract