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HomeMy WebLinkAbout030220_ca06 JEFFERSON COUNTY BOARD OF COUNTY COMMISSIONERS CONSENT AGENDA REQUEST TO: Board of County Commissioners Philip Morley,County Administrator FROM: Mark McCauley,Central Services Director DATE: March 2,2020 SUBJECT: Request for Board of County Commissioners approval to enter into a lease agreement with Hood Canal Adventures,Inc.for use of the office suite at the south end of the Brinnon Community Center STATEMENT OF ISSUE: Christina Maloney of Hood Canal Adventures,Inc. approached the county to ask if the county would be interested in leasing vacant office space located on the north and south ends of the Brinnon Community Center located at 306144, Highway 101, Brinnon WA 98320. In the November 12, 2019 Board meeting the Board of County Commissioners approved a hearing notice regarding leasing the space described above and authorized the issuance of a request for proposals from potential lessees. In a public hearing on December 9, 2019 the Board of County Commissioners approved leasing the space described above. The county received one proposal from Hood Canal Adventures, Inc. ANALYSIS: The attached lease agreement will enable Hood Canal Adventures,Inc. to occupy the space and set up shop. Rent for the entire term of the lease is $561 per month, plus 12.84% leasehold excise tax. FISCAL IMPACT: The lease will generate at least$561 in rental revenue for the county, of which 50% is payable to OIyCAP pursuant to the 2020-2022 agreement with O1yCAP to manage the county's community centers. RECOMMENDATION: That the Board of County Commissioners approve the attached lease with Hood Canal Adventures, Inc. REVIEWED BY: nip Morley "'Su ty Date LEASE This LEASE entered into this on the date signed by the Board of County Commissioners below by and between Jefferson County, a political subdivision of the State of Washington, whose address is P.O. Box 1220, Port Townsend, WA 98368, hereinafter referred to as the Lessor, and Hood Canal Adventures, Inc. whose address is P.O Box 11, Brinnon, Washington, 98320, hereinafter referred to as the Lessee. WHEREAS, the provisions of Chapter 36.34 RCW relating to the leasing of real property owned by a municipal corporation have been complied with WHEREAS, the Board of County Commissioners has determined that it is desirable for Jefferson County to enter into this Lease; WHEREAS, the Lessee was and is the only responsible bidder for the premises that are subject of this Lease; NOW, THEREFORE, in consideration of the terms, conditions, covenants and performances contained herein, IT IS MUTUALLY AGREED AS FOLLOWS: 1. PREMISES: Lessor DOES hereby lease to the Lessee the following described premises: the approximately 561 square feet at the south end of the Brinnon Community Center located at 306144 Highway 101, Brinnon, WA 98320, which in the past has been used as a health clinic. 2. TERM: The term of this Lease shall be for one year commencing on the 10th day of March, 2020 and shall terminate 12 months thereafter. 3. RENEWAL OF THIS LEASE: This Lease may not be renewed, but it may be extended by written agreement of the parties for up to 1 year for each of the four following years. The rent will increase by 3% each time the lease is extended. 4. RENT: Lessee covenants and agrees to pay Lessor monthly rent in the amount of five hundred and sixty-one dollars ($561.00)in advance on the tenth day of each month of the lease term. If not paid within five days, a service charge of$100 shall also be due. The lessee will at the same time also remit as Leasehold Excise Tax an amount equal to 12.84 percent of the rent payment (currently $72.04). 5. ADVANCE RENT: Lessee agrees to deliver advance rent to the County of three- month's Base Rent and Leasehold excise tax no later than two weeks after the lease is approved by the Board of County Commissioners. 6. SECURITY DEPOSIT: Upon execution of this Lease, Lessee shall pay the Lessor a security deposit equal to $1,000 to be held by the Lessor without interest. Lease Agreement Hood Canal Adventures,Inc. I of 7 The Lessor shall return the Security Deposit to Lessee at the end of this lease, less such deductions for damages caused by Lessee but no deduction shall be made for damage due to normal wear and tear. Lessee may not use the Security Deposit as payment for rent. 7. UTILITIES AND FEES: Utilities are included as part of the rent payment. 8. PARKING: Hood Canal Adventures, Inc. staff and patrons will park in the parking lot to the south of the leased premises so as not to impinge on parking dedicated to patrons of the Brinnon Community Center. 9. O1yCAP AS THIRD-PARTY BENEFICIARY: OIyCAP is a third-party beneficiary to this lease and as such is entitled to one half of the rent payments payable under this lease. The county will remit the OIyCAP share of the rent on a quarterly basis to the following address: OIyCAP 823 Commerce Loop Port Townsend, WA 98368 10. REPAIRS AND MAINTENANCE: Premises have been inspected and are accepted by Lessee in their present condition. Lessee shall, at its own expense and at all times, keep the premises neat, clean and in a sanitary condition, and keep and use the premises in accordance with applicable laws, ordinances, rules, regulations and requirements of governmental authorities. Lessee shall permit no waste, damage or injury to the premises. The Lessor shall maintain the premises in good repair and tenantable condition during the continuance of this lease, except in the case of damage arising from the negligence of the Lessee's clients, agents or employees. For the purposes of so maintaining the premises, the Lessor reserves the right at reasonable times to enter and inspect the premises and to make any necessary repairs to the building. Lessor's maintenance obligations shall include, but not be limited to,the mechanical, electrical, interior lighting(including replacement of ballasts, starters, and fluorescent tubes as required), plumbing,heating, ventilating and air-conditioning systems (including replacement of filters as recommended in equipment service manual); floor coverings; window coverings, inside and outside walls (including windows); all structural portions of the building(including the roof and the watertight integrity of same); porches, stairways, sidewalks, exterior lighting; parking lot; drainage; landscaping and continuous satisfaction of all governmental requirements generally applicable to similar office buildings in the area (example: fire, building, energy codes, indoor air quality and requirements to provide architecturally barrier free premises for persons with disabilities, etc.). 11. SIGNS AND ALTERATIONS: The Lessee, upon the written authorization of the Lessor, shall have the right during the existence of this lease with the written permission Lease Agreement Hood Canal Adventures,Inc. 2 of 7 of the Lessor, to make alterations, attach fixtures, and erect additions, structures or signs, in or upon the premises herby leased at Lessee's sole cost and expense. Such alterations, fixtures, additions, structures and signs shall be authorized only by the Jefferson County Central Services Department. Performance of any of the rights authorized above shall be conducted in compliance with all applicable governmental (including the City of Port Townsend)regulations, building codes, including obtaining any necessary permits. Any fixtures, additions, or structures so placed in or upon or attached to the premises shall be and remain the property of the Lessee and may be removed therefrom by the Lessee upon the termination of this lease. Any damage caused by the removal of any of the above items shall be repaired by the Lessee at the Lessee's sole cost and expense. 12. LIENS AND INSOLVENCY: Lessee shall keep the premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred by Lessee, and shall indemnify and hold Lessor harmless against the same. In the event Lessee becomes insolvent, bankrupt, or if a receiver, assignee or other liquidating officer is appointed for the business of Lessee, Lessor may cancel this Lease at its option. 13. SUBLETTING OR ASSIGNMENT: Lessee shall not sublet the whole or any part of the premises, nor assign this Lease, without the written consent of Lessor, which will not be unreasonably withheld. This Lease shall not be assignable by operation of law. Any assignment shall not release the Lessee from liability under this lease unless the assignment states such. 14. DISASTER: In the event the leased premises are destroyed or injured by fire, earthquake or other casualty so as to render the premises unfit for occupancy, and the Lessor neglects and/or refuses to restore said premises to their former condition,then the Lessee may terminate this lease and shall be reimbursed for any unearned rent that has been paid. In the event said premises are partially destroyed by any of the aforesaid means,the rent herein agreed to be paid shall be abated from the time of occurrence of such destruction or injury until the premises are again restored to their former condition, and any rent paid by the Lessee during the period of abatement shall be credited upon the next installment(s) of rent to be paid. It is understood that the terms "abated" and "abatement"mean a pro rata reduction of area unsuitable for occupancy due to casualty loss in relation to the total rented area. 15. REIMBURSEMENT FOR DAMAGE TO PREMISES: The Lessee agrees to reimburse the Lessor for damages caused by the negligence of its employees, clients and agents, but in no event shall this paragraph be construed as diminishing the Lessor's duty to make repairs as set forth in preceding paragraphs of this lease, or as making Lessee responsible for the repair of normal wear and tear. 16. TERMINATION: Either party for cause may terminate this lease with 10-days written notice. Either party without cause may terminate this lease by giving 30-days written notice. Lease Agreement Hood Canal Adventures,Inc. 3 of 7 17. HOLD HARMLESS AND INDEMNIFICATION: Lessor or its agents, successors and assigns shall not be liable for any injury to persons (including death) or damage to property sustained by Lessee or others, in and about the premises, unless such injury or damage was the proximate result of the negligent or willful act or omission of the Lessor or its agents, servants, employees, successors or assigns. Lessee agrees to defend and pay all cost and expense of Lessor's defense and hold Lessor, its agents, servants, employees, successors and assigns harmless from any claim, action, and/or judgment for damages to property or injury to persons (including death) suffered or alleged to be suffered on the premises by any person, firm or corporation, unless same was the proximate result of the negligent or willful act or omission of the Lessor or its agents, servants, employees, successors or assigns. Lessor shall defend (and pay all cost and expense of Lessee's defense), indemnify and hold harmless Lessee against and from claims arising from Lessor's sole negligence or willful act with respect to, without limitation, the operation, management and maintenance of the building and the premises. 18. COSTS AND ATTORNEYS FEES: If, by reason of any default or breach on the part of either party in the performance of any of the provisions of this Lease, a legal action is instituted, each party will be responsible for their own costs and attorney fees in connection therewith, unless otherwise agreed by the Lessee and Lessor. It is agreed that the venue of any legal action brought under the terms of this Lease shall be in the county in which the premises are situated, i.e. Jefferson County. 19. REQUIRED LESSEE INSURANCE COVERAGES. Hood Canal Adventures, Inc. shall obtain and keep in force during the terms of this Lease, policies of insurance as follows: a. Hood Canal Adventures, Inc. shall obtain and keep in force during the terms of this Lease, policies of insurance as follows: b. Worker's Compensation Insurance for employees and covered volunteers in an amount or amounts that are not less than the required statutory minimum(s) as established by the State of Washington. c. Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non-owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence. d. General Commercial Liability Insurance in an amount not less than a single limit of one million dollars ($1,000,000) per occurrence and an aggregate of not less than two (2) times the occurrence amount ($2,000,000 minimum) for bodily injury, including death and property damage, unless a greater amount is specified in the contract specifications. The insurance coverage shall contain no limitations on the scope of the protection provided and include the following minimum coverage: e. Broad Form Property Damage, with no employee exclusion; Lease Agreement Hood Canal Adventures,Inc. 4 of 7 f. Personal Injury Liability, including extended bodily injury; g. Broad Form Contractual/Commercial Liability — including completed operations; h. Premises—Operations Liability (M&C); and, i. Blanket Contractual Liability. j. Excess or Umbrella Liability Insurance (Over Primary) of two million dollars ($2,000,000) per occurrence and two million dollars ($2,000,000) in the aggregate,gg egate, and shall provide coverage at least as broad as specified for the underlying coverages. Such policy or policies shall include as insureds those covered by the underlying policies, including additional insureds. Coverage shall be "pay on behalf," with defense costs payable in addition to policy limits. There shall be no cross-liability exclusion precluding coverage for claims or suits by one insured against another. 20. NO WAIVER OF COVENANTS: No conduct of a party shall constitute accord and satisfaction, unless contained in writing to such effect and signed by the parties. Any waiver by either party of any breach thereof by the other shall not be considered a waiver of any future similar breach. This Lease contains all the agreements between the parties; and there shall be no modification of the agreements contained herein except by written instrument. 21. SURRENDER OF PREMISES: Lessee agrees, upon termination of this Lease, to peacefully quit and surrender the premises without notice, leave the premises neat and clean and to deliver all keys to the premises to Lessor. If Lessor elects to require Lessee to remove alterations, additions or improvements made by Lessee, then Lessee shall restore the premises to their previous condition, less reasonable wear and tear. 22. BINDING ON HEIRS, SUCCESSORS AND ASSIGNS: The covenants and agreements of this Lease shall be binding upon the heirs, executors, administrators, and successors and assigns of both parties hereto, except as herein above provided. 23. USE: Lessee shall use the premises for the purpose of operating its business, Hood Canal Adventures, Inc. and for no other purposes, without written consent of Lessor. 24. NOTICE: Wherever in this lease written notices are to be given or made, they will be sent by United States mail to the address listed below unless a different address shall be designated in writing and delivered to the other party. LESSOR: Jefferson County Central Services P.O. Box 1220 Port Townsend, WA 98368 Lease Agreement Hood Canal Adventures,Inc. 5 of 7 LESSEE: Hood Canal Adventures, Inc. P.O. Box 11 Brinnon, WA 98320 SIGNATURES APPEAR ON THE NEXT PAGE Lease Agreement Hood Canal Adventures,Inc. 6 of 7 IN WITNESS WHEREOF, the parties hereto have hereunto subscribed their names. By: Title: Date: SEAL: COUNTY OF JEFFERSON BOARD OF COMMISSIONERS Greg Brotherton, Chair Date Kate Dean, Member Date David Sullivan, Member Date ATTEST: Approved as to form: Carolyn Galloway Date Philip C. Hunsucker Da e Chief Civil Deputy Prosecuting Attorney Lease Agreement Hood Canal Adventures,Inc. 7 of 7