Lake Havasu City COUNCIL COMMUNICATION CC NO.: 6b MEETING DATE: 8/13/13 TYPE OF MEETING: Regular TO: FROM: SUBJECT: COUNCIL GOAL: SUMMARY: FISCAL IMPACT: ATTACHMENTS: RECOMMENDATION: SUGGESTED MOTION: Honorable Mayor and Council Mitchell Kalauli, City Magistrate Lake Havasu City Consolidated Court Lease Agreement with Mohave County #1 Financially Sound City Government. The Municipal Court is located in the Mohave County building at 2001 College Drive, Lake Havasu City. According to the Lake Havasu Consolidated Court Intergovernmental Agreement (IGA), the City leases space from Mohave County to house the Municipal Court. The City is responsible for paying $63,379.44 per year payable in installments of $5,283.12 per month. This amount is equivalent to $0.90 per square foot/month, $4,860. The City also pays its proportionate share (14%) of electrical expenses which is $603.12 per month based on the previous year's costs. The City also pays telephone charges each month for the use of the County telephone system. The annual cost of the lease agreement including electrical expenditures is $63,379.44 plus an estimated annual cost of $23,000 for telephone expenses and long distance charges. Resolution No. 13-2763 Mohave County Lease Agreement Staff recommends the approval of the lease agreement between Mohave County and Lake Havasu City for court use of the facility located at 2001 College Drive. I move to adopt Resolution No. 13-2763 ratifying the City Manager's execution of the annual lease agreement between Mohave County and Lake Havasu City for court use of the facility located at 2001 College Drive for Fiscal Year 2013-14. CC-1 Rev. 1/5/2010 CITY MANAGER'S REVIEW
RESOLUTION NO. 13-2763 A RESOLUTION OF THE MAYOR AND CITY COUNCIL OF LAKE HAVASU CITY, MOHAVE COUNTY, ARIZONA, APPROVING AND RATIFYING THE CITY MANAGER'S EXECUTION OF THE LEASE AGREEMENT WITH MOHAVE COUNTY FOR USE OF THE CONSOLIDATED COURT BUILDING FISCAL YEAR 2013/2014 WHEREAS, Lake Havasu City ("City") is authorized under Arizona Revised Statutes 11-952 to enter into intergovernmental agreements; and WHEREAS, City desires to enter into a Lease Agreement with Mohave County for use of the facility located at 2001 College Drive, the Consolidated Court building, for Municipal Court purposes. NOW, THEREFORE, BE IT RESOLVED that the Mayor and the City Council of Lake Havasu City, Arizona, approve the Lease Agreement for fiscal year 2013/2014 with Mohave County for use of the facility located at 2001 College Drive, and ratify the City Manager's execution of the Agreement on behalf of the City. PASSED AND ADOPTED by the Mayor and the City Council of Lake Havasu City, Arizona, this day of, 2013. APPROVED: ATTEST: Mark S. Nexsen, Mayor Kelly Williams, City Clerk APPROVED AS TO FORM: REVIEWED BY- elly Garry, Cit Char Cassens, City Manager
JILL DAVIS, PRESIDING JUSTICE OF THE PEACE 524 W. BEALE STREET POST OFFICE BOX 29 KINGMAN, ARIZONA 86402 MOHAVE COUNTY JUSTICE COURTS (928) 753-0710 FAX (928) 753-7840 July 16, 2013 Charlie Cassens Lake Havasu City Manager 2330 McCulloch Blvd Lake Havasu City, Az. 86403 Re: Mohave County/Lake Havasu City Lease Agreement Mr. Cassens, The original Lease Agreement between Lake Havasu City and Mohave County is attached. I have enclosed three original documents to be signed. Please return the three signed originals by August 2, 2013 to the following address: Mohave County Justice Courts Aft: Limited Court Administrator PO Box 29 Kingman, Az. 86402 After all signatures have been obtained I will return a copy to you for your records. Please let me know if you have any questions. Thank you, Laurie Allen Mohave County Limited Court Administrator (928) 753-0790 ext. 4475
LEASE AGREEMENT This Lease Agreement is made and effective July 1, 2013, by and between Mohave County ("Landlord") and the City of Lake Havasu City ("Tenant"). Landlord is the owner of land and improvements commonly known and numbered as 2001 College Drive, Lake Havasu City, Arizona (the "Building"). Landlord makes available for lease, a portion of the Building, further described as 5,200 square feet of the space currently allocated for consolidated court operations (the "Leased Premises"). Landlord desires to lease the Leased Premises to Tenant, and Tenant desires to lease the Leased Premises from Landlord for the term, at the rental amount and upon the covenants, conditions and provisions herein set forth. THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration, it is agreed: 1. Term. A. Landlord hereby leases the Leased Premises to Tenant, and Tenant hereby leases the same from Landlord, for an "Initial Term" beginning July 1, 2013 and ending June 30, 2014, subject to termination and renewal rights as may be hereinafter set forth. B. Tenant may renew the Lease for extended terms of one-year periods. This lease may be renewed for additional terms. Tenant shall exercise such renewal option, if at all, by giving written notice to Landlord not less than ninety (90)-days prior to the expiration of the Initial Term. The renewal term shall be at the renegotiated rate as allowed in 2.B. of this lease, and otherwise upon the same covenants, conditions and provisions as provided in this Lease. 2. Rental. A. Tenant shall pay to Landlord during the Initial Term rental of sixty-three thousand three hundred ninety-seven dollars and forty-four cents ($63,379.44) per year, payable in installments of five thousand two hundred eighty-three dollars and twelve cents ($5,283.12) per month, due on or before the 1st day of each month. This amount is equivalent to $0.90 a square foot/month, $4,680. Tenant shall also pay their proportionate share of electrical expenses, 14%, utilizing the previous year's expenses, $603.12 per month. The Tenant shall also pay each month the amounts billed by the County for all charges incurred by the Consolidated Courts for use of the County's telephone system, including specific long distance charges. All payments during the lease term shall be sent to Landlord at: Mohave County Board of Supervisors, P.O. Box 7000, Kingman, AZ 86402-7000.
B. The rental for any renewal lease term, if created, as permitted under this Lease, shall be renegotiated taking into consideration increases in electrical and utility expenses and/or any other pertinent factors. 3. Use. The use of the Leased Premises is for the operation of the consolidated courts, Justice of the Peace, Lake Havasu Precinct, and Lake Havasu City Magistrate. 4. Indemnification. Each party (as "Indemnitor") agrees to indemnify, defend, save and hold harmless the other party (as "Indemnitee") from and against any and all claims, losses, liability, costs or expenses including reasonable attorney's fees, hereinafter collectively referred to as ("claims"), arising out of bodily injury of any person, including death or property damage, but only to the extent that such claims which result in vicarious/derivative liability to the Indemnitee, are caused by the act, omission, negligence, misconduct, or other fault of the Indemnitor, its officers, officials, agents, employees, or volunteers. 5. Insurance. Landlord shall maintain fire and extended coverage insurance on the Building and the Leased Premises in such amounts, as Landlord shall deem appropriate. Tenant shall be responsible, at its expense, for fire and extended coverage insurance on alt of its personal property, including removable trade fixtures, located in the Leased Premises. The insurance policies required by this Lease, except Workers' Compensation and Professional Liability, shall name Mohave County, its agents, representatives, officers, directors, officials and employees as Additional Insureds. The Tenant agrees that the insurance required hereunder will be primary and that any insurance carried by the county will be excess and not contributing. An insurance company authorized to transact business in the State of Arizona shall issue the Certificates. 6. Damage rendering property untenable. In the event that the Leased Premises becomes untenable due to damage from (not by limitation) flood, fire, accident or acts of God, the Landlord shall have the option to restore or repair the premises or to terminate this Lease immediately. 7. Assignment. Tenant may not assign its rights or interests in this Agreement without written consent of the Landlord.
8. Improvements. Tenant shall not construct any permanent improvements to the premises without the prior written consent of the Landlord and at the end of the Lease by termination or otherwise the title to any improvements automatically vests in the Landlord. Tenant agrees to keep the Leased Premises free and clear from any liens for services, construction or otherwise. 9. Termination. This Agreement may be terminated, upon a material breach of its terms, by the Tenant, and failure to cure such breach upon 30-days written notice to Landlord. This Agreement may also be terminated by the Landlord, at any time, with or without cause upon 6 months written notice. Tenant may terminate this Agreement by giving at least 30 days written notice to the Landlord. It may be otherwise terminated upon the written mutual consent of the parties. 10. Notice. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested, addressed as follows: If to Landlord to: Mohave County Board of Supervisors P. 0. Box 7000 Kingman, AZ 86402-7000 If to Tenant to: Lake Havasu City Manager 2330 McCulloch Blvd., N. Lake Havasu City, AZ 86403 11. Final Agreement. This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof.
2012 Start Date End Date # of days Total Cost KWH Cost/ KWH Jan 12/16/2011 1/15/2012 30 $3,171.94 27,766.56 0.114235973 Feb 1/16/2012 2/15/2012 30 $3,083.03 25,206.56 0.122310621 Mar 2/16/2012 3/15/2012 28 $3,231.44 24,577.92 0.131477359 Apr 3/16/2012 4/15/2012 30 $3,848.20 28,283.04 0.136060339 May 4/16/2012 5/15/2012 29 $4,416.28 33,897.10 0.130284892 June 5/16/2012 6/15/2012 30 $5,253.90 47,992.64 0.109473036 July 6/16/2012 7/15/2012 29 $5,981.53 52,811.84 0.113261155 Aug 7/16/2012 8/15/2012 30 $5,504.00 48168.16 0.114266354 Sept 8/16/2012 9/15/2012 30 $5,917.00 54889.6 0.107798199 Oct 9/16/2012 10/15/2012 29 $4,288.38 41280.51 0.103883891 Nov 10/16/2012 11/15/2012 30 $3,615.91 28756.64 0.125741742 Dec 11/16/2012 12/15/2012 29 $3,384.39 28741.92 0.117751006 $51,696.00 x 14% $7,237.44 $603.12 monthly
IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written. Mohave County Lake Havasu ity Gary Watson, Chairman rlie Cassens, City Manager Date Dat ATTEST: ATTEST: Peggy Prince, Clerk of the Board Kelly Williams, C lerk ) Approved as to form: Approved as to form: Matthew J. Smith, County Attorney C.'Celty Garry, Cit Attorney