City Council

CITY OF MOUNT VERNON CITY COUNCIL MEETING AGENDA January 13, 2021 6:00 p.m. (Virtual Meeting) The Mount Vernon City Councilmembers will be participating in this meeting via video/teleconference technology. To virtually attend the meeting, the public may: 1. Call the conference line: 1-888-924-9240; Access Code: 3366211 (please ‘mute’ your phone, if possible, to minimize distractions) 2. Watch the meeting live on TV10: Comcast/Xfinity Channel 10 3. Watch the meeting live, online: https://www.youtube.com/channel/UCUob_hcQUmd4S93YkletdrA I. OPENING CEREMONIES A. Call to Order B. Pledge of Allegiance C. Roll Call of Councilmembers II. CONSENT AGENDA A. Approval of December 9, 2020 Regular Council Meeting Minutes B. Approval of December 16, 2020 Study Session Minutes C. Approval of December 18, 2020 payroll checks numbered 110428 - 110449, direct deposit checks numbered 80025 – 80242 and wire transfers numbered 924 – 928 in the amount of $1,277,117.61 D. Approval of January 5, 2021 payroll checks numbered 110452 – 110479, direct deposit checks numbered 80243 – 80464 and wire transfers numbered 930 – 934 in the amount of 1,109,568.03 E. Approval of December 23, 2020 Claims numbered 11704 and 11725 - 11917 in the amount of $1,443,952.53 F. Approval of January 13, 2021 Claims numbered 11923 – 11924, 11926 – 11933 and 11938 - 12088 in the amount of $1,506,593.83 III. REPORTS A. Review of Emails from the Public (All public comments must be sent via email to council@mountvernonwa.gov. The comments will be read aloud into the record during the public comment portion of the agenda. All comments must be received by 5 p.m. on Wednesday, January 13, 2021) B. Department Updates  Public Works  Energy Plan Electronic Vehicles & Charging Stations  Stormwater Outfall on Freeway Drive  Kulshan Trail Safety Lighting Update  Grant Award for Miscellaneous Traffic Safety Improvements  WWTP Admin Building Remodel/Addition Update  New Waste Management Recycle Contract  Briefing of East Parkway Property Mount Vernon City Council Agenda January 13, 2021 page 2 C. Councilmember Comments D. Mayor’s Report E. Council/Committee Agenda Requests IV. NEW BUSINESS A. Approval of Professional Services Agreement for Building Inspector Services (Staff is requesting that Council authorize the Mayor or her designated representative enter into a professional services agreement with MTC, Inc. for building inspector services in an amount not to exceed $50,000.) (required action – motion) (staff contact – Chris Phillips) B. Commercial Cold Storage Parking Lot Lease Extension (Staff is requesting that Council authorize the Mayor to enter into an amended lease agreement with Commercial Cold Storage for use of the parking lot at 1011 South 1 st Street.) (required action – motion) (staff contact – Esco Bell) C. Project Acceptance – North 19th Street Stream Rehabilitation Project (staff is requesting that Council accept the work performed by Oceanside Construction for the construction of the North 19th Street Stream Rehabilitation Project.) (required action – motion) (staff contact – William Bullock) D. Project Acceptance – College Way/30th Street Intersection (Staff is requesting that Council accept the work performed by Larry Brown Construction for the construction of the College Way/30th Street Intersection Signal Project.) (required action – motion) (staff contact – William Bullock) E. Bid Award – Maintenance Shop Canopy Addition Project (Staff is requesting that Council award the bid for the Maintenance Shop Canopy Addition Project to R&R Excavating, Inc. in the amount of $250,010.) (required action – motion) (staff contact – William Bullock) F. Continuation of Fire Infrastructure Discussion (City staff will continue to lead a discussion on fire infrastructure planning.) (required action – none) (staff contact – Chief Bryan Brice) G. For the Good of the Order:  COVID-19 pandemic response and discussion COMMITTEE MEETINGS Public Works and Library Cancelled Next Ordinance 3825 Next Resolution 987  AGENDA ITEM: A DATE: January 13, 2021 TO: Mayor Boudreau and City Council FROM: Chris Phillips, Development Services Director SUBJECT: BUILDING INSPECTOR PROFESSIONAL SERVICES CONTRACT RECOMMENDED ACTION: City Staff recommends City Council authorize the Mayor or her Designated Representative to enter into a professional services agreement with MTC, Inc. for building inspector services not to exceed $50,000. INTRODUCTION/BACKGROUND: MTC Inc. provides Building Inspection contracted services for commercial and residential projects. FINDINGS/CONCLUSIONS: None RECOMMENDATION: City Staff strongly recommends City Council authorize the Mayor to or her Designated Representative to enter into a professional services agreement with MTC, Inc. ATTACHED: Contract Attached.  CITY OF MOUNT VERNON PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT made and entered into on this Click here to enter a date. by and between the CITY OF MOUNT VERNON, a municipal corporation under the laws of the State of Washington, hereinafter referred to as the "City," and Materials Testing & Consulting, Inc., whose address 777 Chrysler Drive Burlington WA , hereinafter referred to as the "Contractor." WHEREAS, the City desires to engage the Contractor to Furnish Building Inspection Services; and WHEREAS, Contractor represented, and by entering into this Agreement now represents, that it is fully qualified to perform the work to be performed hereunder in a competent and professional manner; NOW, THEREFORE, the parties herein do mutually agree as follows: 1. Engagement of Contractor. The City hereby agrees to engage the Contractor, and the Contractor hereby agrees, to perform the work in a competent and professional manner and provide the services described in the attached "Exhibit A - Scope of Work". The Scope of Work so identified is hereafter referred to as “Work”. Without a written directive of an authorized representative of the City, the Contractor shall not perform any services that are in addition to, or beyond the scope of, the Work. If the Contractor’s proposal is attached as an exhibit, and if such proposal contains or incorporates any conditions or terms in addition to or different from the terms of this Agreement, then the Contractor expressly agrees that such conditions or terms are neither incorporated nor included into this Agreement between the City and Contractor. If, and to the extent, the Work includes the design of a public work or improvement, in whole or in part, Contractor’s design shall be reasonably accurate, adequate and suitable for its intended purpose. 2. Intellectual Property Rights. Reports, drawings, plans, specifications and any other intangible property created in furtherance of the Work are property of the City for all purposes, whether the project for which they are made is executed or not, and may be used by the City for any purpose. Unless otherwise expressly agreed in writing, all intellectual property rights in such documents or intangible property created pursuant to this Agreement, or for the City of Mount Vernon, belong to the City of Mount Vernon. Contractor retains any intellectual property rights in documents and intangible property created by Contractor prior to engagement, or not created by Contractor for its performance of this Agreement. 3. Time of Beginning and Completion of Performance. This Agreement shall commence as of the date of execution of this Agreement and shall be completed by December 31, 2021. 4. Compensation. A. The City shall pay the Contractor only for completed Work and for services actually rendered which are described herein. Such payment shall be full compensation for Work performed or services rendered, including, but not limited to, all labor, materials, supplies, equipment and incidentals necessary to complete the Work. B. The Contractor shall be paid such amounts and in such manner as described in Exhibit B.  C. Total compensation, including all services and expenses, shall not exceed a maximum of Click here to enter text.. D. If Contractor fails or refuses to correct its work when so directed by the City, the City may withhold from any payment otherwise due an amount that the City in good faith believes is equal to the cost to the City of correcting, re-procuring, or remedying any damage caused by Contractor’s conduct. 5. Method of Payment. A. To obtain payment, the Contractor shall (a) file its request for payment, accompanied by evidence satisfactory to the City justifying the request for payment; (b) submit a report of Work accomplished and hours of all tasks completed; (c) to the extent reimbursement of Eligible Expenses is sought, submit itemization of such expenses and, if requested by the City, copies of receipts and invoices; and (d) comply with all applicable provisions of this Agreement. Contractor shall be paid no more often than once every thirty days. B. All requests for payment should be sent to: City of Mount Vernon Attn: Development Services Department 910 Cleveland Avenue Mount Vernon, WA 98273 6. Submission of Reports and Other Documents. The Contractor shall submit all reports and other documents as and when specified in Exhibit A. Said information shall be subject to review by the City, and if found to be unacceptable, Contractor shall correct and deliver to the City any deficient Work at Contractor’s expense with all practical dispatch. Contractor shall abide by the City’s determinations concerning acceptability of Work. 7. Termination of Contract. City reserves the right to terminate this Agreement at any time by sending written notice of termination to Contractor (“Notice”). The Notice shall specify a termination date (“Termination Date”) at least fourteen (14) days after the date the Notice is issued. The Notice shall be effective (“Notice Date”) upon the earlier of either actual receipt by Contractor (whether by fax, mail, delivery or other method reasonably calculated to be received by Contractor in a reasonably prompt manner) or three calendar days after issuance of the Notice. Upon the Notice Date, Contractor shall immediately commence to end the Work in a reasonable and orderly manner. Unless terminated for Contractor’s material breach, the Contractor shall be paid or reimbursed for: (a) all hours worked and Eligible Expenses incurred up to the Notice Date, less all payments previously made; and (b) those hours worked and Eligible Expenses incurred after the Notice Date, but prior to the Termination Date, that were reasonably necessary to terminate the Work in an orderly manner. The Notice shall be sent by the United States Mail to Contractor’s address provided herein, postage prepaid, certified or registered mail, return receipt requested, or by delivery. In addition, the Notice may also be sent by any other method reasonably believed to provide Contractor actual notice in a timely manner, such as fax. The City does not by this section waive, release or forego any legal remedy for any violation, breach or non-performance of any of the provision of this Agreement. At its sole option, City may deduct from the final payment due the Contractor (a) any damages, expenses or costs arising out of any such violations, breaches, or non- performance and (b) any other back charges or credits. 8. Changes. The City may, from time to time, unilaterally change the scope of the services of the Contractor to be performed hereunder. Such changes, including any increase or decrease in the scope of work (and resulting increase or decrease in compensation), shall: (a) be made only in writing and signed by an authorized City representative, (b) be explicitly identified as a Change Order and (c) become a part of this Agreement. 9. Subletting/Assignment of Contracts. Contractor shall not sublet or assign any of the Work without the express, prior written consent of the City. 10. Indemnification. Except as otherwise provided in this paragraph, the Contractor hereby agrees to defend and indemnify the City from any and all Claims arising out of, in connection with, or incident to any acts, errors, omissions, or conduct by Contractor (or its employees, agents, representative’s subcontractor’s/sub consultants) relating to this Agreement. The Contractor is obligated to defend and indemnify the City pursuant to this paragraph whether a Claim is asserted directly against the City, or whether it is asserted indirectly against the City, e.g., a Claim is asserted against someone else who then seeks contribution or indemnity from the City. The Contractor’s duty to defend and indemnify pursuant to this paragraph is not in any way limited to, or by the extent of, insurance obtained by, obtainable by, or required of the Contractor. The Contractor shall not indemnify the City for Claims caused solely by the negligence of the City. If (1) RCW 4.24.115 applies to a particular Claim, and (2) the bodily injury or damage to property for which the Contractor is to indemnify the City is caused by or results from the concurrent negligence of (a) the Contractor, its employees, subcontractors/sub consultants or agents and (b) the City, then the Contractor’s duty to indemnify shall be valid and enforceable only to the extent allowed by RCW 4.24.115. Solely and expressly for the purpose of its duties to indemnify and defend the City, the Contractor specifically waives any immunity it may have under the State Industrial Insurance Law, Title 51 RCW. The Contractor recognizes that this waiver of immunity under Title 51 RCW was specifically entered into pursuant to the provisions of RCW 4.24.115 and was the subject of mutual negotiation. As used in this paragraph: (1) “City” includes the City’s officers, employees, agents, and representatives and (2) “Claims” include, but is not limited to, any and all losses, claims, demands, expenses (including, but not limited to, attorney’s fees and litigation expenses), suits, judgments, or damage, irrespective of the type of relief sought or demanded, such as money or injunctive relief, and irrespective of whether the damage alleged is bodily injury, damage to property, economic loss, general damages, special damages, or punitive damages. If, and to the extent, Contractor employs or engages sub consultants or subcontractors, then Contractor shall ensure that each such sub consultant and subcontractor (and subsequent tiers of sub consultants and subcontractors) shall expressly agree to defend and indemnify the City to the extent and on the same terms and conditions as the Contractor pursuant to this paragraph. 11. Insurance. A. Contractor shall comply with the following conditions and procure and keep in force during the term of this Agreement, at Contractor’s own cost and expense, the following policies of insurance with companies authorized to do business in the State of Washington, which are rated at least “A” or better and with a numerical rating of no less than seven (7), by A.M. Best Company and which are acceptable to the City. 1. Workers’ Compensation Insurance as required by Washington law and Employer’s Liability Insurance with limits not less than $1,000,000 per occurrence. If the City authorizes sublet work, the Contractor shall require each subcontractor to provide Workers’ Compensation Insurance for its employees, unless the Contractor covers such employees. 3  2. Commercial General Liability Insurance on an occurrence basis in an amount not less than $1,000,000 per occurrence and at least $2,000,000 in the annual aggregate, including but not limited to: premises/operations (including off-site operations), blanket contractual liability and broad form property damage. 3. Business Automobile Liability Insurance in an amount not less than $1,000,000 per occurrence, extending to any automobile. A statement certifying that no vehicle will be used in accomplishing this Agreement may be substituted for this insurance requirement. 4. Professional Errors and Omissions Insurance in an amount not less than $1,000,000 per occurrence and $1,000,000 in the annual aggregate. Such coverage may be written on a claims made basis. If both parties agree that the Work does not warrant Contractor providing Professional Errors and Omissions Insurance, this paragraph may be stricken and initialed by both parties. B. The above liability policies shall contain a provision that the policy shall not be canceled or materially changed without 30 days’ prior written notice to the City. No cancellation provision in any insurance policy shall be construed in derogation of the continuous duty of the Contractor to furnish the required insurance during the term of this Agreement. C. Upon written request by the City, the insurer or his/her agent will furnish, prior to or during any Work being performed, a copy of any policy cited above, certified to be a true and complete copy of the original. D. Prior to the Contractor performing any Work, Contractor shall provide the City with a Certificate of Insurance acceptable to the City Attorney evidencing the required insurance. Contractor shall provide the City with either (1) a true copy of an endorsement naming the City of Mount Vernon, its officers, employees and agents as Additional Insureds on the Commercial General Liability Insurance policy and the Business Automobile Liability Insurance policy with respect to the operations performed and services provided under this Agreement and that such insurance shall apply as primary insurance on behalf of such Additional Insureds or (2) a true copy of the blanket additional insured clause from the policies. Receipt by the City of any certificate showing less coverage than required is not a waiver of the Contractor’s obligations to fulfill the requirements. E. If the policy listed in paragraph 11. A.4. above, Professional Errors and Omissions Insurance, is on a claims made policy form, the retroactive date on the policy shall be the effective date of this Agreement or prior. The retroactive date of any subsequent renewal of such policy shall be the same as the original policy provided. The extended reporting or discovery period on a claims made policy form shall not be less than 36 months following expiration of the policy. (This paragraph shall not apply if paragraph 11. A.4. above is stricken.) F. Contractor certifies that it is aware of the provisions of Title 51 of the Revised Code of Washington that requires every employer to be insured against liability of Workers’ Compensation, or to undertake self-insurance in accordance with the provisions of that Title. Contractor shall comply with the provisions of Title 51 of the Revised Code of Washington before commencing the performance of the Work. Contractor shall provide the City with evidence of Workers’ Compensation Insurance (or evidence of qualified self-insurance) before any Work is commenced. 4  G. In case of the breach of any provision of this section, the City may, at its option and with no obligation to do so, provide and maintain at the expense of Contractor, such types of insurance in the name of the Contractor, and with such insurers, as the City may deem proper, and may deduct the cost of providing and maintaining such insurance from any sums which may be found or become due to Contractor under this Agreement or may demand Contractor to promptly reimburse the City for such cost. 12. Independent Contractor. A. It is further agreed by and between the parties that because this Agreement shall not constitute nor create an employer-employee relationship, and since the Contractor is an independent contractor, Contractor shall be responsible for all obligations relating to federal income tax, self-employment FICA taxes and contributions, and all other so called employer taxes and contributions, including, but not limited to, industrial insurance (Workmen's Compensation), and that the Contractor agrees to indemnify, defend and hold the City harmless from any claims, valid or otherwise, made to the City, because of these obligations. B. Any and all employees of the Contractor, while engaged in the performance of any Work, shall be considered employees of only the Contractor and not employees of the City. The Contractor shall be solely liable for any and all claims that may or might arise under the Worker's Compensation Act on behalf of said employees or Contractor, while so engaged and for any and all claims made by a third party as a consequence of any negligent act or omission on the part of the Contractor's employees, while so engaged on any of the Work C. Contractor shall comply with all applicable provisions of the Fair Labor Standards Act and other legislation affecting its employees and the rules and regulations issued thereunder insofar as applicable to its employees and shall at all times save the City free, clear and harmless from all actions, claims, demands and expenses arising out of said act, and rules and regulations that are or may be promulgated in connection therewith. D. Contractor assumes full responsibility for the payment of all payroll taxes, use, sales, income, or other form of taxes (such as state and, city business and occupation taxes), fees, licenses, excises or payments required by any city, federal or state legislation which are now or may during the term of the Agreement be enacted as to all persons employed by the Contractor and as to all duties, activities and requirements by the Contractor in performance of the Work and Contractor shall assume exclusive liability therefore, and meet all requirements thereunder pursuant to any rules or regulations that are now or may be promulgated in connection therewith. 13. Employment. The Contractor warrants that he had not employed or retained any company or person, other than a bona fide employee working solely for the Contractor, to solicit or secure this Agreement and that he has not paid or agreed to pay any company or person, other than a bona fide employee working solely for the Contractor, any fee, commission, percentage, brokerage fee, gifts, or any other consideration, contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, the City shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement price or consideration or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 5 14. Audits and Inspections. At any time during normal business hours and as often as the City may deem necessary, the Contractor shall make available to the City for the City’s examination all of the Contractor’s records and documents with respect to all matters covered by this Agreement and, furthermore, the Contractor will permit the City to audit, examine and make copies, excerpts or transcripts from such records, and to make audits of all contracts, invoices, materials, payrolls, records of personnel, conditions of employment and other data relating to all matters covered by this Agreement. 15. City of Mount Vernon Business License. Contractor agrees to obtain a City of Mount Vernon business license prior to performing any work pursuant to this Agreement. 16. State of Washington Requirements. Contractor agrees to register and obtain any State of Washington business licenses, Department of Revenue account and/or unified business identifier number as required by RCW 50.04.140 and 51.08.195 prior to performing any work pursuant to this Agreement. 17. Compliance with Federal, State and Local Laws. Contractor shall comply with and obey all federal, state and local laws, regulations, and ordinances applicable to the operation of its business and to its performance of work hereunder. 18. Compliance with Grant Terms and Conditions. Contractor shall comply with any and all conditions, terms and requirements of any federal, state or other grant that wholly or partially funds Contractor’s work hereunder. 19. Waiver. Any waiver by the Contractor or the City or the breach of any provision of this Agreement by the other party will not operate, or be construed, as a waiver of any subsequent breach by either party or prevent either party from thereafter enforcing any such provisions. 20. Complete Agreement. This Agreement contains the complete and integrated understanding and Agreement between the parties and supersedes any understanding, Agreement or negotiation whether oral or written not set forth herein. 21. Modification of Agreement. This Agreement may be modified as provided in ¶8, or by a writing explicitly identified as a modification of this Agreement that is signed by authorized representatives of the City and the Contractor. 22. Severability. If any part of this Agreement is found to be in conflict with applicable laws, such part shall be inoperative, null and void, insofar as it is in conflict with said laws, the remainder of the Agreement shall remain in full force and effect. 23. Notices. A. Notices to the City of Mount Vernon shall be sent to the following address: City of Mount Vernon Development Services Department 910 Cleveland Avenue Mount Vernon, WA 98273 6  B. Notices to the Contractor shall be sent to the following address: Materials Testing & Consulting, Inc. 777 Chrysler Drive Burlington WA. 98233 24. Venue. It is agreed that venue for any lawsuit arising out of this Agreement shall be Snohomish County. IN WITNESS WHEREOF, the City and Contractor have executed this Agreement as of the date first written below. Jill Boudreau, Mayor DATE: ATTEST: Doug Volesky, Finance Director DATE: APPROVED AS TO FORM: Kevin Rogerson, City Attorney DATE: 7 CONTRACTOR: Please fill in the spaces and sign in the box appropriate for your business entity. Complete Legal CORPORATION Name: Signature: Typed/Printed Name: Date: It’s Complete Legal PARTNERSHIP Name: (GENERAL) A Washington general partnership Signature: Typed/Printed Name: Date: It’s Complete Legal PARTNERSHIP Name: (LIMITED) A Washington limited partnership Signature: Typed/Printed Name: Date: It’s Date: 8  Complete Legal SOLE Name: PROPRIETOR Signature: Typed/Printed Name: Date: It’s Complete Legal LIMITED Name: LIABILITY COMPANY Signature: Typed/Printed Name: Managing Member Date: It’s 9  EXHIBIT A SCOPE OF WORK A. Essential responsibilities and duties may include, but are not limited to: 1. Perform a full range of inspection and evaluation of residential and non-residential buildings and structures (which may include complex structural and non-structural components, including building, plumbing and mechanical) for compliance with the appropriate ICC and Mount Vernon Municipal Codes, other applicable regulations, and approved plans and specifications. 2. Assist and advise the general public in matters relating to residential and commercial construction and code requirements 3. Investigate complaints and make inspections of existing buildings to determine if hazardous or illegal conditions exist relating to residential and commercial buildings and their use. 4. Prepare written reports; maintain records; issues notice to correct code violations. 5. Read, research, and objectively explain and interpret building code requirements along with other laws pertaining to regulation of buildings, and tactfully communicate, orally and in writing, with the general public, while maintaining effective relationships. 6. Independently recognize, evaluate and properly resolve unique problems or situations requiring the exercise of good judgment. 7. Assist construction industry representatives and general public with permit needs. 8. Perform various office and other duties as assigned. 9. Perform other related duties as assigned by supervisor Contractor to maintain an I.C.C. residential and commercial inspector certification while preforming inspections. A residential building certification can be accepted if all the inspections fall under the International Residential code and the City is notified in advance of the limitations of the inspector. Contractor to use their own vehicle and gas for inspections, the City will furnish a smart phone, tape measure, clipboard with forms, I pad or other data entry device, city issued work vest, hardhat and flashlight. Work is to be performed during regular business hours, currently 8am-4pm. Holidays excluded Contractor to maintain availability of 6 days per month for November through February and eight days per month March through October City will project the dates inspection services are needed by the last week of the month preceding the request, there may be times when services cannot be anticipated. City will request inspection services no sooner than 24 hours in advance with a one-hour minimum show time and hours will be tracked within 30 minutes of rounding City to review contract at midyear to see if additional funding is needed to complete fiscal year limit of $ 50,000 thousand dollars 10  EXHIBIT B COMPENSATION ALTERNATE A [HOURLY RATE UP TO A MAXIMUM AMOUNT] The City shall pay the Contractor a sum equal to the amount of hours actually worked multiplied by the rate identified herein for the staff performing the Work, subject to the maximum stated in ¶4(D) of this Agreement; which is a sum not to exceed $90.00 dollars per hour. ALTERNATE B [LUMP SUM] 11  AGENDA ITEM: B DATE: January 13, 2021 TO: Mayor Boudreau and City Council FROM: Esco Bell, Public Works Director SUBJECT: COMMERCIAL COLD STORAGE PARKING LOT LEASE EXTENSION RECOMMENDED ACTION: Staff requests Council to approve second amendment to the agreement with Commercial Cold Storage to continue leasing parking spaces adjacent to S 1st Street in downtown Mount Vernon. INTRODUCTION/BACKGROUND: The City has leased the north half of the Commercial Cold Storage parking lot located at 1011 S 1st Street since October of 2005. The lot contains approximately 24 spaces used by the City, and the agreement expired at the end of October 2020. The attached amendment extends that agreement for an additional three years and increases the price from $2,667.67 (an amount derived from the value of City improvements made to the parking lot) per year to $3,996 per year. FINDINGS/CONCLUSIONS:  Downtown parking is at a premium, and the City began leasing the north half of the Commercial Cold Storage parking lot located at 1011 S 1st Street in October 2005 to help provide public parking.  The original agreement was for fifteen years, October 28, 2005 – October 28, 2020, and based on the value of City improvements made to the lot valued at $2,667,67 per year for fifteen years. The agreement was amended in 2007 in order to provide for the ability parties to end the agreement on relatively short notice of a month.  The second amendment to the agreement is proposed in order to continue the agreement with amounts adjustments for price escalation to the amount of $3,996 per month with a three percent annual increase.  The second amendment to the agreement has a term of three years and either party can withdraw from the agreement with a 30 day notice.  In staffs opinion $3,996 per year is a good value for these parking spaces that are optimally located in the downtown area. RECOMMENDATION: Request Council approve Amendment No 2 with Commercial Cold Storage for an additional three year term at $3,996 per year. ATTACHED: Second Amendment to the Agreement  Second Amendment to Lease Agreement THIS SECOND AMENDMENT TO LEASE AGREEMENT (“Second Amendment”), is entered into this _____ day of January 2021, by and between the CITY OF MOUNT VERNON, Washington, a municipal corporation (hereinafter referred to as "Tenant”) and Commercial Cold Storage, Inc. a Washington corporation, with its principal offices located at 1011 South 1 st Street, Mount Vernon, Washington (hereinafter “Landlord”). Landlord and Tenant are sometimes hereinafter collectively referred to as the “Parties,” and individually as a “Party.” W I T N E S S E T H: WHEREAS, the Parties entered into that certain Lease Agreement dated October 25, 2005 (“Lease”) recorded under Skagit Auditor Number 200511040141 pursuant to which Landlord leased to Tenant the northerly 187 feet of a parcel of land fully described in Exhibit A to the Lease for public parking; and WHEREAS, the Parties entered into that certain First Amendment to the Lease (“First Amendment”) recorded under Skagit Auditor Number 200703130059 making certain modifications to the Lease set forth therein; and WHEREAS, although the Initial Term of the Lease has expired, the Parties desire to reinstate it, and to further amend the Lease, as set out in this Second Amendment, extending the term of the Lease, modifying the Parties’ rights to terminate, and setting forth new rental amount; and WHEREAS, the Parties stipulate that neither is aware of any outstanding events of default under the Lease, or events that, with the passage of time, or the giving of notice, or both, would mature into an event of default; NOW, THEREFORE, in consideration of the mutual covenants set out herein, the receipt ad sufficiency of which are acknowledged by both Parties, the Parties hereby reinstate and further amend said Lease, as follows: 1. Section 1.5 of the Lease is hereby amended to read as follows: Options: 1 option period: 3-year term 2. Section 1.6 of the Lease is hereby amended to read as follows: Consideration: As consideration for the Initial Term of this Lease, TENANT has designed, constructed, and maintained an asphalt paved parking lot (“the Work”) on LANDLORD’s property, all as described herein. The parties heretofore agreed that the reasonable value of such consideration was $40,000.00 or $2,666.67 per year, during the 15 year term of this Lease. That amount has now been fully paid by TENANT in Second Amendment to CCS Parking Agreement, Page 1 of 4 DRAFT lieu of payment for the Work. LANDLORD agrees to continue to lease to the TENANT the exclusive possession, and use of, the northerly half of the parking lot, which is sufficient to provide approximately 26 parking spaces, as described in Exhibit D to the Lease, and incorporated by this reference herein. Effective October 29, 2020, Tenant shall owe Landlord monthly rents of Three Hundred Thirty Three Dollars ($333.00) at the beginning of the Option Term (i.e. October 29, 2020) and at the beginning of every month thereafter during the three year Option Term, which commenced October 29, 2020, and ends October 29, 2023. Rental payments shall increase at the rate of three percent (3%) annually for the life of the Option Term starting on each anniversary of the commencement of the Option Term. Any payments that may be owed by Tenant to Landlord prior to the execution of this Second Amendment shall not be considered late so long as such payments are made within fourteen (14) business days of the full execution of this Second Amendment. 3. Section 3.2 of the Lease is hereby amended to read as follows: Option Terms. The Parties have agreed to extend the Initial Term an additional three years as set forth in Section 1.5 (“Option Term”). During the Option Term either Party may, with or without cause terminate this Lease at any time upon thirty (30) days written notice to the other Party. Refunds (if any) owed to Tenant shall be prorated and due within thirty (30) days from the date of termination. 4. Section 3.4 titled Rent Arbitration of the Lease is hereby stricken. 5. All other terms and conditions of the original Lease and First Amendment remain the same. 6. This Second Amendment, combined with original Lease and the First Amendment constitute the complete agreement between the Parties with respect to the subject matter hereof. Any further amendments must be in writing, and executed by both Parties. 7. Each Party represents and warrants to the other that the execution, delivery and performance of this Second Amendment have been duly authorized by all required government, or corporate action, and that the person signing on behalf of such Party has full authority to do so. 8. This Second Amendment may be executed in two or more counterparts, all of which when taken together, shall constitute one and the same Second Amendment. Second Amendment to CCS Parking Agreement, Page 2 of 4 DRAFT **IN WITNESS WHEREOF the Parties hereto have executed this Second Amendment as of the day and year first written above. TENANT LANDLORD By By _____ Jill Boudreau Jon Schubert, General Manager Mayor Attest: Finance Director Approved as to form: City Attorney Second Amendment to CCS Parking Agreement, Page 3 of 4 DRAFT STATE OF WASHINGTON) ) ss. COUNTY OF SKAGIT ) On this ___ day of January, 2021, before me personally appeared Jon Schubert, to me known to be the individual who executed the within and foregoing instrument, and acknowledged that he signed the same as his free and voluntary act and deed, for the uses and purposes therein mentioned Given under my hand and official seal the day and year last above written. NOTARY PUBLIC in and for the State of Washington, residing at My Commission Expires: Printed name: Second Amendment to CCS Parking Agreement, Page 4 of 4 DRAFT  AGENDA ITEM: C DATE: January 13, 2021 TO: Mayor Boudreau and City Council FROM: William Bullock, PE - City Engineer SUBJECT: N 19TH STREAM REHABILITATION PROJECT RECOMMENDED ACTION: Staff recommends Council authorize the mayor to accept the work completed by Oceanside Construction for the construction of the N 19th Stream Rehabilitation Project. INTRODUCTION/BACKGROUND: The project was awarded on August 12, 2020, for $139,512.10. The project required the removal of a failed/damaged culvert underneath a 90 foot long overflow swale; including re-establishment and rehabilitation of this portion of the streambed. FINDINGS/CONCLUSIONS: Project completion was achieved on October 28, 2020, in accordance with the plans and specifications. The final adjusted contract amount was $140,606.78. RECOMMENDATION: Staff recommends accepting the work performed by Oceanside Construction for the construction of the N 19th Stream Rehabilitation Project. ATTACHED: None  AGENDA ITEM: D DATE: January 13, 2021 TO: Mayor Boudreau and City Council FROM: William Bullock, PE - City Engineer SUBJECT: PROJECT ACCEPTANCE: COLLEGE WAY/30TH STREET INTERSECTION RECOMMENDED ACTION: Staff recommends Council authorize the mayor to accept the work completed by Larry Brown Construction for the construction of the College Way/30th Intersection (Signal) Project. INTRODUCTION/BACKGROUND: The project was awarded on June 27, 2019, for $805,546.20. The project improvements included a new eight phase traffic signal, enhanced intersection lighting, a right turn taper, improved sidewalks and ADA ramps, and stormwater upgrades. FINDINGS/CONCLUSIONS: Project completion was achieved on October 22, 2020, in accordance with the plans and specifications. The final adjusted contract amount was $813,054.41. RECOMMENDATION: Staff recommends accepting the work performed by Larry Brown Construction for the construction of the College Way/30th Intersection (Signal) Project. ATTACHED: None  AGENDA ITEM: E DATE: January 13, 2021 TO: Mayor Boudreau and City Council FROM: William Bullock, P.E. - City Engineer SUBJECT: BID AWARD – MAINTENANCE SHOP CANOPY ADDITION RECOMMENDED ACTION: Staff recommends a motion authorizing the Mayor to award the construction contract for the Maintenance Shop Canopy Addition Project to R&R Excavating, of Ferndale, WA in the amount of $250,010. INTRODUCTION/BACKGROUND: This project involves constructing a 40 foot x 60 foot clear span canopy structure with a single wall to house electrical and pneumatic fixtures to enhance capability of our maintenance shop. This structure will have a 24 foot minimum ceiling height to accommodate some of our largest equipment and fire trucks which are too large for our existing shop facility (currently all maintenance of these vehicles is done outside in the weather). This new structure will be located directly next to the north end of the existing shop and will include a new concrete slab in front of the exiting shop as well. FINDINGS/CONCLUSIONS: This new structure will provide the vehicle maintenance crews a space to work on these larger vehicles under, cover rather in the open weather, and expands the number of vehicles that can be worked on at the same time. RECOMMENDATION: Staff recommends Council award the construction bid of Maintenance Shop Canopy Addition to R&R Excavating in the amount of $250,010 . ATTACHED: Bid Tabulation Proposed Building Drawing Maintenance Shop Canopy (1) LOWEST RESPONSIVE BID 2 Project Number: GF-2020-010 R&R Excavating Axhelm Construction, Inc. OFFICIAL Bid Tabulation 6595 Northwest Rd 3610 Cedardale Rd, Unit C Bid Opening Date: Tues, Dec. 29,2020 @ 2:00 pm Ferndale, WA 98248 Mount Vernon, WA 98274 Number of Bidders: 2 (360) 815-5914 (360) 424-6848 Item Unit Qty Total Amount Total Amount Maintenance Shop Canopy LS 1 $220,000.00 $402,126.00 Addition WSST @ 8.7% $19,140.00 $34,984.96 Total Bid $239,140.00 $437,110.96 Additive Alternate: 15' x 51' Concrete Slab in front of existing LS 1 $10,000.00 $25,461.00 shop WSST @ 8.7% $870.00 $2,215.11 Total Bid $10,870.00 $27,676.11  Existing Shop Building Existing Exhaust Fan to be Relocated 24.0 40.0 Install 8' x 9' Roll Up Door 44.0 in Existing Building View: Looking East Existing Existing Exhaust Fan Shop Building Notes: to be Relocated 1. 40' x 60' Steel Frame Building 2. 24' Clear Height 3. Rear Wall Enclosed Install 8' x 9' Roll 4. Concrete Slab Up Door 60.0 View: Looking South 40' x 60' Maintenance Shop Canopy Addition Design: BB December 2020 Conceptual Plan Views Scale: None Drawn: DG Sheet 1