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CC RESO 1379RESOLUTION NO. 1379_(2018) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BOTHELL, WASHINGTON AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ON BEHALF OF THE CITY A RESIDENTIAL LEASE AGREEMENT OF THE SINGLE-FAMILY RESIDENTIAL HOUSE LOCATED IN CEDAR GROVE PARK; AND DECLARING THE LEASED PROPERTY SURPLUS TO THE CITY'S NEEDS DURING THE TERM OF SUCH LEASE. WHEREAS, the City of Bothell owns and operates Cedar Grove Park, in Snohomish County, Washington. Within the boundaries of the park, located in the southwest corner, is a single-family residence with the address of 22509 9th Avenue SE, Bothell, Washington 98011; and WHEREAS, the City is a code city vested with those powers enumerated in RCW 35A.11.010, including the powers to "purchase, lease, receive, or otherwise acquire real andpersonal property of every kind, and use, enjoy, hold, lease, control, convey or otherwise dispose of it for the common benefit'; and WHEREAS, the City Council finds that leasing the residential house to a private party at market rate will provide a benefit to the community at large by providing funding for any necessary repairs to the building and for hiring an additional, part-time parks maintenance worker to perform park -related tasks; and WHEREAS, the City Council finds that the possessory interest of the residential house is not needed for any other City purposes at the present time; and WHEREAS, the City Council finds that the terms and conditions of the template lease are acceptable and that authorizing the City Manager to negotiate and execute a lease agreement for this property will provide a benefit to the City. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BOTHELL, WASHINGTON, DOES RESOLVE AS FOLLOWS: Section 1. The City Council authorizes the City Manager or designee to negotiate and execute a residential lease agreement with a private party for the use of the City's single-family residential building located in Cedar Grove Park with terms substantially similar to those contained in the template lease agreement attached as Exhibit A. The City Council further authorizes the City Manager or designee to negotiate and execute Page 1 of 2 1379 (2018) subsequent residential lease agreements for the same property under similar terms and conditions until such time as this authority is explicitly revoked. Section 2. The City Council finds that the possessory interest to the leased property is surplus to the city's needs for the duration of the lease and for any subsequent lease durations under similar terms. Section 3. The City Clerk is authorized to make necessary corrections to this resolution including, but not limited to, the correction of scrivener's/clerical errors, references, resolution numbering, section/subsection numbers, and any references thereto. PASSED this 17th day of July, 2018. ATT EoST/AUTHENTICATED: Y CITY C APPROVED: l ANDR J.RHEAUME MAYOR FILED WITH THE CITY CLERK: July 12, 2018 PASSED BY THE CITY COUNCIL: July 17, 2018 RESOLUTION NO.: 1379 (2018) Page 2 of 2 1379 (2018) Exhibit A CEDAR GROVE PARK RESIDENCE LEASE AGREEMENT This lease agreement ("Agreement") is made and entered into by and between the City of Bothell, a municipal corporation of the State of Washington having its principal place of business at 18415 101 st Ave. NE, Bothell, Washington 98011 ("City") and ("Lessee"). In consideration for the mutual covenants and conditions contained herein, the parties agree as follows: 1. LEASE PREMISES The City owns and operates Cedar Grove Park, in Snohomish County, Washington. Within the boundaries of the park, located in the southwest corner, is a residence. City hereby rents to the Lessee, subject to the following terms and conditions of this Agreement, a single-family residence with the address of 22509 9th Avenue SE, Bothell, Washington 98011, consisting of 2 bedroom(s) and 2 bathroom(s). Lessee will have the right to possession of that residence, and the leased premises also include the outside area immediately around the residence, as depicted in Attachment A to this Agreement. Together the residence and exterior identified in Attachment A shall be hereinafter referred to as "Premises." The City shall use the Premise's mailing address for notices sent to the Lessee(s). P�6ZK4109F11010 Lessee agrees that the Premises shall be occupied by no more than five (5) person(s), consisting of _ adult(s) and _ child(ren), without the written consent of City. There shall be no other persons living in the Premises other than the occupants. Guests of the Lessee(s) are allowed for periods not lasting for more than forty-eight (48) hours. 3. USE OF PREMISES The Premises is to be occupied strictly as a residential dwelling. It may not be used for storage, manufacturing of any type of food or product, professional service(s), or for any commercial use unless otherwise stated in this Agreement. Lessee shall utilize the Premises as a residence and for no other purpose whatever. 4. TERM AND RENEWAL The term of this lease shall be one (1) year, beginning on , 20 , and ending on 20_. The Lessee shall be required to move out at the end of the Lease Tenn if a new Lease Agreement is not authorized. 5. RENTAL PAYMENT A. The Lessee shall pay rent to the City monthly, in the amount of, per M erlipil Exhibit A B. Lessee agrees to be responsible for any and all taxes that may be owed to the State, County, or City as a result of this Agreement, including, but not limited to, leasehold excise taxes. Therefore, with each monthly lease payment, the Lessee shall also pay to the City, in the manner required by applicable law, the leasehold excise tax as set forth in chapter 82.29A RCW. The leasehold excise tax is currently set at 12.84% of the taxable rent, which taxable rent is the full amount of rent set forth above in subsection 5(A)(i). The City will remit this tax to the Washington State Department of Revenue. C. All amounts owed for the first month of occupancy shall be paid on orbefore the . All amounts subsequently owed shall be paid on the 3`d day of each month thereafter during the term of this Lease, except as provided hereafter. D. If Lessee attempts to pay the rent with a check or an electronic transaction that is not honored due to insufficient funds, there shall be a non -sufficient funds (NSF) check handling fee. The amount of this fee is set annually in the City of Bothell Fee Schedule for the Finance Department. For 2018, the NSF fee is $40. E. If rent is not paid on the due date, there shall be a late fee assessed by the City in the amount of $, for payment that is not received by the City by the fifth day rent is due. 6. PRE -PAYMENT. Upon execution of this Agreement, Lessee shall deposit with the City the sum of O as the last month's rent. 7. SECURITY DEPOSIT A security deposit in the amount of shall be required by the Lessee at the execution of this Agreement to be deposited with the City for the faithful performance of all the terms and conditions of this Agreement. The Security Deposit is to be returned, without interest, to the Lessee within twenty-one (2 1) days after this Agreement has terminated, less any damage charged. This deposit shall be maintained by the City in a trust account, escrow account, or other equivalent manner. The City may use these funds as reasonably necessary to remedy Lessee's default in the payment of rent, to repair damages to the premises exclusive of ordinary wear and tear, and/or to clean the Premises, including carpet cleaning and/or window washing. Within twenty-one (21) days after Lessee vacates or the City learns that Lessee has abandoned the premises, the City shall give a full and specific statement of the basis for retaining any of the security deposit together with payment of any refund due. No deductions shall be made for normal wear and tear to the premises resulting from ordinary use. This security deposit shall not be credited towards rent unless the City gives written consent. 8. UTILITIES AND SERVICES The City shall provide water service, garbage service, and sewage service (there is an existing park septic system that serves the Premises). All other utilities and services are the responsibility of Lessee. Lessee shall furnish, and pay when due, all other utilities and services for the Premises, including, but not be limited to, electricity, phone, cable, or any services or utilities used or assessed against the leasehold premises. Lessee shall be responsible for removal of all garbage from the leasehold premises upon move out. Exhibit A 9. PARKING Lessee is limited to having three (3) passenger cars/trucks or motorcycles on the premises and shall park only in the designated parking area on the southeast side of the house. Parking of recreational vehicles (RVs), boats, trailers, commercial vehicles, or similar vehicles on the Premises is prohibited. Lessee and/or Lessee's guests shall not use the Cedar Grove Park parking lot spaces for their use. 10. SMOKING Lessee shall not smoke cigars, cigarettes, any other tobacco product, marijuana, or any other legal or illegal substance in, on, or about the leased premises. Smoking is prohibited on the entire property. 11. PETS AND ANIMALS Except for service animals as defined in law, Lessee shall maintain no pets or animals (including mammals, reptiles, birds, fish rodents and insects) upon the premises, nor allow visitors to do so. 12. ATTRACTIVE NUISANCES Lessee agrees not to use, install, allow, or support any attractive features (including but not limited to trampolines, skate ramps, or pools) on the Premises or surrounding property areas. Any attractive features in Lessee's possession shall be stored in such a way that they cannot be used, specifically so that they are dismantled and stored in a safe condition. 13. DANGEROUS MATERIALS Lessee shall not keep or have on the Premises any article or thing of a dangerous, flammable, or explosive character that might unreasonably increase the danger of fire on the Premises or in the Park or that might be considered hazardous or extra hazardous by any responsible insurance company. 14. OTHER OBLIGATIONS AND RESPONSIBILITIES In addition to the duties of the Lessee expressly stated in chapter 59.18 RCW, the following additional obligations and/or restrictions apply: A. The park hours are dawn to dusk. The park gate shall be closed by City staff in the evening at dusk and opened in the morning at dawn. Lessee will be given a key to the gate and is responsible for ensuring that it is re -locked if Lessee leaves or enters during the Park's closed hours. Lessee shall not copy the gate key or provide the gate key to anyone else without the City's written permission. B. Alcohol consumption is not permitted in Cedar Grove Park. Due to the house being located in a public park, alcohol use is not permitted outside the house, including in the exterior areas immediately surrounding the house. No other legal or illegal drug use is allowed anywhere in or on the Premises. See section 9 regarding smoking. Exhibit A C. Lessee is responsible for his/her own proper conduct and that of all guests, including the responsibility for understanding and observing all policies and rules of this Agreement and of the Park. D. Lessee and any guests shall have due regard for the peace and enjoyment park goers and nearby residents. The level of noise created by any Lessee, within or outside the residence, must be such that it cannot be heard by park goers and nearby residents at any hour. E. Lessee shall comply with all the sanitary laws, ordinances, rules, and orders of appropriate governmental authorities affecting the cleanliness, occupancy, and preservation of the Premises, and the walks connected thereto, during the term of this Agreement. Lessee shall not keep or maintain a nuisance on the Property. F. Waterbeds are not permitted in or on the Premises. 15. CONDITION OF THE PREMISES A. Lessee has examined the Premises, including the grounds and all buildings and improvements, and determined that they are, at the time of this Agreement, in good order and repair and in a safe, clean, and tenantable condition. A Premises Condition Checklist has been completed and signed by the parties. A copy of the Checklist has been provided to Lessee and is attached hereto as Attachment . Lessee shall make no alterations to the buildings on the Premises or construct any building or make other improvements on the Premises without the prior written consent of City. B. In accordance with RCW 59.18.060(13), Lessee has received a handout from the City in regards to the health hazards associated with exposure to indoor mold. C. In accordance with RCW 59.18.060(12), the City is providing written notice that the Premises is equipped with [battery operated or hard -wired] smoke detection device(s). If battery operated, the unit(s) has been checked and is properly operating at the commencement of tenancy. Under the law, it is the responsibility of Lessee to maintain all smoke detection devices in accordance with the manufacturer's recommendations, including providing it with replacement batteries as needed. Failure to maintain the smoke detector is grounds for termination of tenancy. Lessee also agrees to test the smoke detector for proper operation once a month and report any malfunctions to the City in writing. Lessee shall not tamper with, remove batteries, or otherwise disable any smoke detection devices. Any occupant failing to comply with this provision can be fined up to $200.00 in accordance with RCW 43.44.110 and WAC 212.10.050. i. Lessee's initials here indicate that all smoke detection devices in the Premises are in proper working order as of the date of this Agreement. 16. MAINTENANCE AND REPAIR A. Lessee will, at his/her sole expense, keep and maintain the Premises and appurtenances in good and sanitary condition and repair during the term of this Agreement Exhibit A and any renewal thereof. B. In particular, Lessee shall keep the fixtures in the house or on or about the Premises in good order and repair; keep the area around.the furnace clean and free of debris; and keep the walks free from dirt and debris. C. Lessee understands that the Premises are owned by a public entity subject to state law requirements for public works. Therefore, Lessee agrees that Lessee shall be responsible for the costs, including administrative expenses the City incurs, of any required repairs resulting from any misuse, waste, or neglect of any occupant or of Lessee's agents, guests, or invitees, including repairs to the plumbing, range, and heating apparatus and/or to electric and gas fixtures. D. Major maintenance and repair of the Premises, not due to the Lessee's misuse, waste, or neglect or that of his/her family, agent, or visitor, shall be the responsibility of City. E. Lessee shall be responsible for regularly performing traditional yard work on the exterior portions of the Premises. F. Lessee agrees that no signs shall be placed or painting done on or about the Premises by Lessee or at his/her direction without the prior written consent of City. 17. INSPECTION BY THE CITY The City shall have the right to enter the Premises during normal working hours by providing notice in accordance with the minimum state requirement in order for inspections; to make necessary repairs, alterations, or improvements; to supply services; or for any reasonable purposes. Lessee is aware that the Premises are within a City park and that City personnel and agents regularly enter and maintain portions of the City's park, including those areas adjacent to the Premises. 18. INDEMNIFICATION AND INSURANCE A. Lessee is responsible for all damage caused to the Premises as a result of negligence of any occupant and/or Lessee's guests and invitees, including but not limited to fire and glass breakage, and Lessee shall be responsible for the costs of repair and replacement of any damage caused thereby, regardless of breakage or damage caused voluntarily, involuntarily, or from vandalism. B. The City shall not be liable for any damage or injury to Lessee or any other person or to any property occurring on the Premises, except damage or injury caused by the City's negligence or intentionally tortious acts. C. City's Property Insurance. The City will maintain during the term of the lease all-risk property insurance covering the house for its full replacement value without any coinsurance provisions. Exhibit A D. Lessee's Insurance Requirements. The Lessee shall procure, and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damage to property that may arise from or in connection with the Lessee's operation and use of the Premises. i. The Lessee shall obtain insurance of the types, coverages, and amounts, to be placed with insurers with a current A.M. Best rating of not less than A: VII, as follows: a. Commercial General Liability (CGL) insurance, which shall be at least as broad as Insurance Services Office (ISO) occurrence form CG 00 01 and shall cover premises and contractual liability. The City shall be named as additional insured on Lessee's CGL insurance policy using ISO Additional Insured -Managers or Lessors of Premises Form CG 20 11 or a substitute endorsement providing at least as broad coverage. Lessee's CGL insurance shall be written with limits no less than $1,000,000 each occurrence and $2,000,000 general aggregate. The Lessee's CGL insurance policy(ies) are to contain, or be endorsed to contain, that they shall be primary insurance as respect the City. If the Lessee maintains higher insurance limits than the minimums shown above, the City shall be insured for the full available limits of CGL liability maintained by the Lessee. Any insurance, self-insurance, or self-insured pool coverage maintained by the City shall be excess of the Lessee's insurance and shall not contribute with it. b. Property insurance shall be written on an all-risk basis. This property insurance shall be written covering the full value of Lessee's property and improvements with no coinsurance provisions. ii. Lessee shall provide the City with original certificates and a copy of amendatory endorsements evidencing compliance with the Lessee's insurance requirements, and Lessee shall provide the City with written notice of any policy cancellation within two (2) business days of his/her receipt of such notice. iii. Lessee's maintenance of insurance as required by the agreement shall not be construed to limit the liability of the Lessee to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. iv. Failure on the part of Lessee to maintain the insurance as required shall constitute a material breach of lease. At the City's discretion, the City may, after providing notice, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid by Exhibit A the Lessee to the City on demand. 19. DEFAULT AND RE-ENTRY A. Failure of the Lessee to fulfill and comply with the terms of this Agreement as herein specified, or upon the Lessee's violation of any of the terms and conditions of the Agreement, shall constitute nonconformance and be grounds for termination by the City upon giving Lessee thirty (30) days written notice, unless a shorter time period for notice is authorized by law, in which case the shorter notice period shall apply. Upon termination of this Agreement, Lessee shall peacefully remove personal property and surrender possession of the Premises. In the event the City is required to undertake any legal action of any type whatsoever to enforce the provisions of this Agreement, then, in such event, Lessee agrees to pay the City for its reasonable attorney fees and costs sustained thereby to the extent permitted by chapter 59.18 RCW. B. Lessee will be in default if: Lessee does not pay rent or other amounts that are owed; Lessee, their guests, or occupants violate this Agreement, rules, or fire, safety, health, or criminal laws, regardless of whether arrest or conviction occurs; Lessee abandons the Premises; Lessee gives incorrect or false information in the rental application; Lessee or any occupant is arrested, convicted, or given deferred adjudication for a criminal offense involving actual or potential physical harm to a person or involving the possession, manufacture, or delivery of a controlled substance or drug paraphernalia; illegal drugs or paraphernalia are found in the Premises; as otherwise allowed by law. This list is nonexclusive. 20. ASSIGNMENT OR SUBLEASE Lessee shall not assign, transfer, or encumber this lease, and shall not sublease the premises, or any other part thereof, or allow any other person to be in possession thereof, without the prior written consent of the City. 21. NOTICE Any notice to be sent by the City of the Lessee to each other shall use the following mailing addresses: City of Bothell c/o Jaclynn Bradenburg, Fleet & Facilities Manager 18415 1015' Ave NE Bothell, WA 98011 22. GOVERNING LAW AND VENUE Tenant Name 22509 9th Avenue SE Bothell, Washington 98011 This Agreement is governed by the laws of the State of Washington. Venue for any dispute arising from or related to this Agreement shall by in the Snohomish County Superior Court. 23. ENTIRE AGREEMENT Exhibit A This Agreement contains the entire Agreement between the parties, and no modification of this Agreement shall be binding upon the parties unless evidenced by a written agreement executed by the City and the Lessee. In witness whereof, the parties hereto have executed this Agreement on the day of 20 Attest: City of Bothell Jennifer Phillips, City Manager Approved as to form: City Clerk City Attorney Lessee Lessee Print Name: Print Name: Lessee(s) acknowledgments on following page. Exhibit A Lessee(s) Acknowledgments STATE OF WASHINGTON COUNTY OF On this_ day of 20_, I certify that I know or have satisfactory evidence that is the person who appeared before me and that said person acknowledged that (he/she) signed this instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. GIVEN UNDER my hand and official seal the date herein above set forth. [printed name] NOTARY PUBLIC in and for the State of Washington, residing at My Commission expires STATE OF WASHINGTON COUNTY OF On this_ day of 20_, I certify that I know or have satisfactory evidence that is the person who appeared before me and that said person acknowledged that (he/she) signed this instrument and acknowledged it to be (his/her) free and voluntary act for the uses and purposes mentioned in the instrument. GIVEN UNDER my hand and official seal the date herein above set forth. [printed name] NOTARY PUBLIC in and for the State of Washington, residing at My Commission expires