2022/10/19 Council Agenda Packet

`EVERETT City Council Agenda Item Cover Sheet Lease Amendment No. 6 to Lease Agreement with US Forest Service Puget Sound Interagency Project title: Communications Center extending the lease for space at the Everett Municipal Building located at 2930 Wetmore Ave. Council Bill # Agenda dates requested: Briefing Proposed action Consent 10/19/2022 Action Ordinance Public hearing Yes X No Budget amendment: Yes X No PowerPoint presentation: Yes X No Attachments: 1. Lease Amendment No. 6 Department(s) involved: Facilities; Real Property, Legal Contact person: Paul McKee Phone number: 425-257-8737 Email: pmckee@everettwa.gov Initialed by: Department head Administration Council President Project: Partner/Supplier : Location: Preceding action: Fund: Lease of space at Everett Municipal Building US Forest Service 2930 Wetmore Avenue Original Lease Agreement Approval 5/23/07 and succeeding amendments 146/General Fund Fiscal summary statement: The proposed Lease Amendment No. 6 extension would result in a total revenue amount of $99,899.46 to Fund 146 for the term of the proposed Lease Amendment as follows: Dates 10/01/2022 — 09/30/2023 10/01/2023 — 12/30/2023 Project summary statement: Annual Rent $79,442.90 $20,456.56 Monthly Rent $6,620.24 $6,818.85 On May 23, 2007, the City executed a 5-year lease with the United States Forest Service Department of Agriculture (USFS-USDA) for 864 square feet of space and two parking spaces at the Everett Municipal Building (formerly known as the Wall Street Building) located at 2930 Wetmore Avenue. Subsequent amendments to the lease agreement resulted in extending the lease periods, addition of a 30-day termination clause, annual increase adjustments of 3% to the lease rate, and increasing the leased space to a current combined leased area of 2,604 square feet on portions of the 1st and 4th floors. The City is now planning to consolidate some offices from its Cedar Street complex into the Everett Municipal Building. These office relocations will require space that the USFS currently occupies. The USFS is aware of these plans and has secured a replacement location for their offices. It will take time for both the City and the USFS to prepare for these planned changes. Therefore, the City and the USFS have mutually agreed to extend the term of the USFS lease through December 2023. This proposed Lease Amendment No. 6 extends the lease term from October 1, 2022 to December 30, 2023, including a 3% rent escalation beginning October 1st of each year. Recommendation (exact action requested of Council): Authorize the Mayor to execute Lease Amendment No. 6 to Lease Agreement with US Forest Service Puget Sound Interagency Communications Center extending the lease for space at the Everett Municipal Building located at 2930 Wetmore Ave.