2019/08/28 Council Agenda Packet

E EVERETT City Council Agenda Item Cover Sheet 2 Lease Amendment No. 13 to Lease Agreement with US Forest Service Mt. Baker-Snoqualmie Project title: Office extending the lease for space at the Everett Municipal Building located at 2930 Wetmore Ave. Council Bill#iIilei- /ice r.r5r Consideration: Lease Amendment No.13 Project: Lease of space at Everett Municipal Building Agenda dates requested: Partner/Supplier : US Forest Service 8/28/2019 Location: 2930 Wetmore Ave Briefing Preceding action: Original Lease Agreement Approval 5/23/07 Proposed action • Fund: 146/General Fund Consent Action Fiscal summary statement: Ordinance Public hearing The proposed Lease Amendment No. 13 extension would result in a total revenue amount of Yes X No $1,454,985.90 to Fund 146 for the full term of the proposed Lease Amendment as follows: Dates Annual Rent Budget amendment: 10/1/2017—09/30/2018 $272,650.44 Yes X No 10/1/2018—09/30/2019 $282,193.21 10/1/2019—09/30/2020 $291,223.39 PowerPoint presentation: 10/1/2020—09/30/2021 $299,960.09 Yes X No 10/1/2021—09/30/2022 $308,958.89 Attachments: Lease Amendment No. 13 Project summary statement: Department(s)involved: On May 23,2007,the City executed a 10-year lease with two 5-year renewal options with the United States Forest Service Department of Agriculture(USFS-USDA)for 8,700 square feet of Facilities and Property space and 2 parking spaces at the Everett Municipal Building(formerly known as the Wall Street Management Building)located at 2930 Wetmore Avenue and 40 parking spaces at Everpark garage. Contact person: A subsequent Amendment No.4 was approved by Council on October 1,2009,increasing the Michael Palacios rental area to 10,950 square feet and adding two parking spaces at Everpark garage. Phone number: At the expiration of the original 10-year lease agreement term on September 30,2017, USFS 425-257-8938 sought to exercise the first 5-year lease renewal option that was provided for in the lease agreement. At the time,the City was exploring options related to a possible relocation of offices Email: at its Cedar Street complex and wanted to leave the space that the USFS occupies at the Everett mpalacios@everettwa.gov Municipal Building as an option for City staff leaving the USFS on a month to month basis. The proposed Lease Amendment No. 13 exercises the initial 5-year renewal option term retroactively extending the lease agreement term from October 1, 2017 to September 30,2022, including a 3%rent escalation for each year resulting in a 2019 annual lease rate of$282,193.21 or$25.77/sq.ft.This Amendment No. 13 also contains a provision that allows for either the City Initialed by: of Everett or USFS to terminate the lease without cause upon 30-day's written notice to the other party. Department head Recommendation (exact action requested of Council): Authorize the Mayor to execute Lease Amendment No. 13 to Lease Agreement with US Forest Adminis ation Service Mt. Baker-Snoqualmie Office extending the lease for space at the Everett Municipal ' Building located at 2930 Wetmore Ave. C. ncil President 3