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HomeMy WebLinkAboutContract 50771 h 0 E��� M G CONTRACTNO.. LEASE AGREEMENT This Lease is made to be effective as of the 16"'day of March,2018 by and between UNITED WAY OF TARRANT COUNTY,(Lessor) and CITY OF FORT WORTH, a Texas home rule municipal corporation,(Lessee). WITNESSETH: I. GRANT AND TERM: Section 1.01. GRANT. Lessor does by these presents lease and demise unto Lessee,and Lessee rents from Lessor, a certain area located at Suite 2700, Building One in the Southeast Tarrant County-Arlington Human Service Center (401 West Sanford) in the City of Arlington, Tarrant County,Texas,as shown by the floor plan attached hereto as Attachment"A"("Leased Premises"). The Leased Premises contains 1,533 square feet of net rentable area. Section 1.02.TERM. Lessee shall have and hold the Leased Premises pursuant to the terms of this Lease Agreement for a term of(5? FIVE years beginning May 1, 2018 and ending April 30, 2023. Lessee will have possession beginning March 26 ,2018. Section 1.03. CONDITION OF LEASED PREMISES. Lessee acknowledges it has examined the Leased Premises and accepts such premises in their current condition and that Lessor will paint walls and install new carpet in two office spaces within the Leased Premises. H. RENT: Section 2.01. RENT DURING THE TERM. The base rent for the term of this Lease shall be $1,333.82 per month, beginning on the commencement of the term of this Lease as,hereinabove defined, and shall be payable in advance on the fust day of each and every month for and during the full term of this Lease, all rentals to be payable at 1500 North Main Street, Suite 200, Fort Worth, Tarrant County, Texas 76164. All past due rent shall draw interest at the rate of 18%per annum until paid. Section 2.02. RENTAL ADJUSTMENTS. The rent payable by Lessee for each calendar year during the term of this Lease shall be adjusted in accordance with the provisions set forth in this section,with fractional years in proportion. (a) In the event during the months that this Lease is in effect during the first year of occupancy, 6,3243%of the"Direct Expenses"attributable to the management,operation,or maintenance of the building is greater than$1,333,82 times the number of months that the Lease is in existence during that year, the rent for the following year, starting May 1, shall be increased by 6.3243% of the amount of the excess., (b) If after the first year of occupancy,or any subsequent year during the term of this Lease,the "Direct Expenses" attributable to the management, operation, or maintenance of the building License Agreement between the City of Fort Worth and United Way of Tarrant County -t - increase above those "Direct Expenses"of the prior year,the tent for each month shall be increased by 1/12 of 6.3243%of the amount of such increase,effective on May 1 following the year in which the"Direct Expenses"increased. (c) The term "Direct Expenses" shall be construed to mean all direct costs of management, operation and maintenance of the building as determined by standard accounting procedures and shall include the following by way of illustration,but not limitation: gas,water, sewer, insurance premiums, removal of rubbish, licenses, permits and inspection fees, and the costs of labor, material, and services for the management, operation, and maintenance of the building. The term "Direct Expenses" as used in this paragraph shall not include the following: salaries or other sums paid to employees of Lessor which are not directly attributable to services rendered in connection with the management, operation, or maintenance of the building, depreciation on the building, or any of the equipment therein, interest expenditures of a capital nature,or the costs of the building alterations or tenant alterations. (d) On or before May I of 2019, and of each succeeding year during the term of this Lease, Lessor will furnish Lessee with a statement of Lessor's"Direct Expenses"for the year just ended. (e) In the event the term of this Lease does not end on the 31st day of December, then the fractional periods fiom the last.*day of December to the end of that term shall be treated on a proportionate basis. M. SERVICES FURNISHED BY LESSOR: Section 3.01. UTILITIES. Lessor shall make available during appropriate times of the year heat and/or air conditioning and electricity as required for lighting of the Leased Premises; provided,however,that the electricity service furnished by Lessor shall be only for normal business machines and equipment in office space and shall not include any abnormal use. Section 3.02. .COMMON AREAS. Lessor shall provide such common areas as are necessary for the proper enjoyment of the Leased Premises, including hallways, lobbies, and entrance ways, meeting rooms, and*paved parking, all of such common areas to be properly maintained,decorated,cleaned,and lighted at the expense of Lessor. IV. USAGE OF THE PREMISES: Section 4.01. USE OF LEASED PREMISES. Leased Premises shall be used only for the purposed agreed usage. Section 4.02. Use of the Leased Premises shall primarily be for the benefit of the citizens of Tarrant County, and Lessee agrees the uses will be such that the principal benefit (at least 51%) will accrue to low and moderate income persons,pursuant to the provisions of 24 CFR 570.200(c). Lessee further agrees that it willprovide documentation, if requested,to verify compliance with the above-referenced federal regulation. License Agreement between the City of Fort Worth and United Way of Tarrant County -2- Section 4.03. Lessee shall be fully responsible for the conduct of itself,guests,and invitees to assure that no activity is permitted on the Leased Premises which results in the unreasonable disturbance or interference with the occupants of other units in the building of which the Leased Premises are a part. V. REPAIRS AND ALTERATIONS: Section 5.01. REPAIRS BY LESSOR. Lessor shall keep in good repair the outer walls of the Leased Premises and repair any structural damage to the building of which the Leased Premises are a part. Lessor shall also maintain and keep in good operating condition all building systems serving the Leased Premises, including but not limited to,the air conditioning and heating system, the plumbing system and electrical system. Section 5.02. REPAIRS BY LESSEE. Lessee shall maintain at its expense all other portions of the Leased Premises, including the interior finish of the Leased Premises, and shall deliver up the Leased Premises at the end of the term in good condition, wear and tear only excepted. Section 5.03. ALTERATIONS AND REMODELING. Lessee shall have the right to make such decorating changes as it desires oin the interior of the Leased Premises,provided that no walls, floors,or ceilings shall be modified or changed without theprior written consent of Lessor. Lessee may remove at its own expense any additional fixtures or furniture placed in the Leased Premises by Lessee, but Lessee agrees that it will at its own expense forthwith repair any and all damage done by the removal of any fixtures or furniture from the premises. Section 5.04. COMPLIANCE WITH GOVERNMENTAL REGULATIONS. Lessor shall fully execute and fulfill all of the ordinances of the City of Arlington applicable to the buildings and improvements of which the Leased Premises are a part, and in connection therewith fulfill all orders and requirements imposed by the Board of Health, Sanitation, and Police Departments for the correction,prevention, and abatement of nuisances that may exist by reason of the condition of the building or improvements erected on the Leased-Premises. Lessee shall promptly execute and fulfill all of the ordinances of the City of Arlington applicable to Lessee's occupation of the premises and all orders and requirements imposed by the Board of Health, Sanitation, and Police Departments for the correction,prevention,and abatement of nuisances in connection with Lessee's operations upon said premises. Under no circumstances shall Lessee be required to make any structural changes to or expenditures exceeding $100 for the Leased Premises in order to comply with City of Arlington ordinances. VI. INSURANCE AND INDEMNITY: Section 6.01. LESSOR'S INDEMNITY. Lessor shall not be liable to the Lessee or to the Lessee's employees,invitees,or visitors for any damage to person or property caused by any action or omission of Lessee,its invitees,or visitors. Section 6.02. PUBLIC LIABILITY INSURANCE. Lessee agrees to carry public liability insurance covering all phases of Lessee's operation. Lessee agrees to and shall,from the effective License Agreementbetween the City of Fort Wath and United Way of Tarrant County -3 date of the Lease Agreement, procure and maintain during the entire term of this Lease and any additional or extended terms the following coverage: (i) General Liability: commercial general liability insurance, including contractual liability insurance coverage, covering Tenant's operations within the Leased Premises, with combined single limits of not less than$1,000,000 per occurrence, $2,000,000.00 aggregate,for bodily injury or property damage, covering the indemnification provisions of this lease, and a minimum of $500,000 is required for damage to rental premises. The policy shall have no standard coverage's removed by exclusion. The policy shall include coverage for premises operation, independent contractors, products/completed operations, personal and advertising injury, contractual liability and damage to rental premises. (ii)Automobile Liability:A minimum of$1,000,000 combined single limit for each accident for any auto,including hired and non-owned autos. (iii)Workers' Compensation and Employer's Liability:Must be statutory limits with a minimum of $500,000 each accident;$500,000 disease,each employee;and$500,000 disease,policy limit. (iv)Lessee is responsible for insuring its contents in leased space. Notwithstanding anything in this Section 6.02 to the contrary, Lessee is basically a self-funded entity and as such, generally, it does not maintain a commercial liability insurance policy to cover premises liability. Damages for which Lessee would ultimately be found liable would be paid directly and primarily by Lessee and not by a commercial insurance company. Section 6.03. FIRE AND EXTENDED COVERAGE INSURANCE. Lessor shall procure and maintain during the term of this Lease fire and extended coverage insurance with a responsible insurer covering the structure of which the Leased Premises are a part,and likewise,Lessee agrees to carry its own fire and extended coverage on the property of the Lessee located in the Leased Premises. Section 6.04. NO SUBROGATION. Neither party hereto shall be liable to the other for damages to the property of the other party if such damaged property is covered by insurance against the particular loss,and neither party shall subrogate to any insurer with respect to such loss. VII. ASSIGNMENT AND SUBLETTING: Section 7.01. ASSIGNMENT AND SUBLETTING. Lessee shall have no right to assign or sublet the Leased Premises without the prior written consent of Lessor. VIII, DESTRUCTION OF LEASED PREMISES: Section 8.01, DAMAGE TO BUILDING. In the event that the building of which the Leased Premises are a part is damaged,at no fault of the Lessee, to the extent that a substantial part License Agreement between the City of Fort Worth and United Way of Tan-ent County -4- of the building is rendered unfit for occupancy,Lessor shall have the option to terminate this Lease by giving written notice to Lessee within thirty(30)days of the damage. In the event Lessor elects to reconstruct the premises, the monthly rental shall be abated during the term of such repairs, and thereupon this Lease shall remain in frill force and effect for the remainder of the term thereof. Section 8.02. DAMAGE TO LEASED PREMISES. In the event of damage to the Leased Premises, at no fault of the Lessee, and this Lease is not canceled pursuant to the provisions of Section 8.01 hereof, the Leased Premises shall be restored to substantially their condition prior to such damage, the cost to be borne by Lessor, with the monthly rental equitably reduced or abated during the term of such repairs. IX. DEFAULT AND TERMINATION: Section 9.01. DEFAULT BY LESSEE. In the event the Lessee shall commit any of the following acts: (a) Fails to pay any installment of rent within thirty (30) days after notice, or fails to perform, or continence in good faith and proceed with reasonable diligence to perform, any of its covenants under this Lease after notice;or (b) Is adjudicated a bankrupt;or (c) Has a receiver in equity appointed for all, or substantially all, of its assets, and such appointment is not vacated within thirty(3 0)days;or (d) Files a voluntary petition for reorganization or arrangement;or (e) Files a voluntary petition in bankruptcy; or (f)Files an answer admitting bankruptcy or agreeing to reorganization or arrangement;or (g) Makes an assignment for the benefit of creditors;or (h) Permits its leasehold interest hereunder to be sold pursuant to execution; then and in that event Lessor may terminate this Lease and re-enter the Leased Premises with or without process of law, using force as may be necessary, and remove all persons and property therefrom, malting such alterations and repairs as may be necessary in order to relet the Leased Premises or any part thereof upon the best terms and conditions that shall be available at the time. If Lessor rents said premises for more than the rental provided for herein, the Lessee shall not be entitled to any part thereof;provided,however, that the rights and obligations and remedies set out herein shall not prevent the Lessor fiom enforcing this Lease by any mode provided by law. Section 9.02. DEFAULT BY LESSOR. In the event the Lessor fails toperform, or in good faith to commence and proceed with reasonable diligence to perform, any of the covenants under this Lease within thirty(30)days after notice from Lessee, including,but not by way of limitation, the obligation of the Lessor that may be necessary to insure the covenant of quiet enjoyment as contained in this Lease, then the Lessee may (i) cute such default for the account of and at the License Agreement between the City of Fort Worth and United Way of Tan-ant County -5- expense of Lessor, and the reasonable expenses paid therefore may be deducted by the Lessee from any rent due Lessor,with interest at the rate of ten per cent(10%)per annum from the first day of the month following payment thereof;plus reasonable expenses incurred therewith,or(ii)terminate this Lease without further obligation upon ten (10) days' written notice. The rights granted to Lessee under this section are not exclusive,and Lessee shall have all other legal remedies otherwise available to it. Section 9.03. WAIVER OF BREACH. The waiver by Lessor or Lessee of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of any subsequent breach of the same or any other term,covenant,or condition herein contained. Section 9.04 TERMINATION. (a) In the event no funds or insufficient fonds are appropriated and budgeted or are otherwise unavailable by any means whatsoever in any fiscal period of Lessee for payments due under this Lease, then Lessee will immediately notify Lessor of such occurrence and this Lease shall be terminated on the last day of the fiscal period for which appropriations were received without penalty or expense to Lessee of any kind whatsoever, except to the portions of annual payments herein agreed upon for which funds shall have been appropriated. (b) Notwithstanding Section 9.04(x) above, if the grant funds that are the source of funding for Lessee's use of the Leased Premises are no longer available and the Lessee has not secured other funds to meet the obligations of this Lease,Lessee may terminate this Lease with 30 day written notice to Lessor. X. INSPECTION OF PREMISES: Section 10.01. LESSOR'S RIGHT TO INSPECT. Lessor and its agents shall have the tight to enter the Leased Premises at all reasonable times to examine same and to snake such repairs and alterations,improvements,or additions as the Lessor may deem necessary or desirable. X.I. QUIET ENJOYMENT: Section 11.01. LESSOR'S COVENANT OF QUIET ENJOYMENT. Lessor covenants that upon payment of the rent by Lessee and compliance with the terms, covenants, and conditions of this Lease, Lessee may peaceably and quietly have, hold, and enjoy the Leased Premises for the term hereof without hindrance or interruption by Lessor or by any other person or persons. XII. HOLDING OVER: Section 12.01. RENT FOR HOLDING-OVER PERIOD. In the event Lessee remains in possession of the Leased Premises with the consent of the Lessor after the termination of this Lease,the same shall be construed to be a tenancy from month to month for one and one-half times License Agreement between the City of Foit Worth and United Way of Tarrant County -6 %OA - the base rental as was being paid monthly at the termination of the Lease and upon the other terms herein specified. XIII. MISCELLANEOUS: Section 13.01. FORCE MAJEURE. In the event either Lessor or Lessee shall be delayed or hindered in,or prevented from,the performance of any act required hereunder by reason of fire, casualty,strikes,lockouts, labor trouble,inability to procure materials or supplies, failure of power, governmental authority, riots, insurrections,war, or other reasons of like nature,where such delay, hindrance, or prevention of performance shall not be within.the reasonable control of the party obligated to perform and not be avoidable by diligence, the party so delayed shall promptly give notice to the other patty, and thereupon performance of such act shall be excused for such period of delay. The provisions of this section shall not apply, however, to any payment of rent, and it is understood that the provisions regarding the abatement of rent in theevent of damage to the Leased Premises shall prevail over anything in this section. Section°13.02. NOTICES. Any notice provided for herein shall be given by written instrument,personally delivered or sent by U.S.mail,postage prepaid,to: LESSOR: United Way of Tarrant County 1500 North Main Sheet, Suite 200 Fort Worth,Texas 76164 LESSEE: City of Fort Worth Neigborhood Sei vices Department Community Action Partners 908 Monroe,4`s Floor Fort Worth,TX 76102 With a copy to: City of Fort Worth Property Management Department 900 Monroe,Suite 400 Fort Worth,Texas 76102 Attn:Lease Management With a copy to: City Attorney 200 Texas Street Fort Worth,Texas 76102 or such other address that Lessor or Lessee designates in writing to the other party. License Agreement between the City of Fort Worth and United Way of Tarrant County -7- Section 13.03. ENTIRE AGREEMENT. This Lease and the exhibits attached hereto constitute the entire agreement between the parties, and all prior negotiations are merged into this agreement. Any amendment, change, or addition to this Lease shall be made only in writing and signed by both parties. Section 13.04. SUCCESSORS IN INTEREST. The terms and conditions of this agreement shall be binding upon the parties-and their respective successors and assigns. Section 13.05. LANDLORD'S LIEN. DELETED BY AGREEMENT OF THE PARTIES Section 13.06. RULES AND REGULATIONS. The use of the Leased Premises by Lessee, including access by Lessee's contractors,shall be subject to the rules and regulations as established by Lessor fiom time to time. Section 13.07. HEADINGS. The article and section headings in this Lease Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify,amplify,or add to the interpretation,construction,or meaning of this Lease Agreement. Section 13.08. ATTORNEYS FEES. If, on account of any breach by the parties hereto of their obligations hereunder, it shall become necessary for either party to employ an attorney to enforce or defend any of its rights or remedies hereunder, and such party shall prevail, it shall be entitled to any reasonable attorney's fees incurred in such connection. Section 13.09. The parties .acknowledge that the City of Arlington is the owner of the building in which the Leased Premises are located, that the City of Arlington has leased the building to the United Way of Tarrant County, and that this is a sublease from United Way of Tarrant County to Lessee. Section 13.10 AUDIT. Pursuant to Chapter 2, Article IV, Division 3, Section 2-134, Administration, Powers and Duties of the Department of Internal Audit, of the Code of Ordinances of the City of Fort Worth, Lessee shall, until the expiration of three (3) years after final payment under this Lease, have access to and the right to examine at reasonable times any directly pertinent books, documents,papers and records of Lessor involving transactions relating to this Lease at no additional cost to Lessee. Lessor agrees that Lessee shall have access during normal working hours to all necessary Lessor facilities and shall be provided adequate and appropriate work space in order to conduct audits in compliance with the provisions of this Section. Lessee shall give Lessor not less than ten(10)days written notice of any intended audits. THIS LEASE AGREEMENT is executed in several counterparts, each of which shall be deemed an original,to be effective as of the 16th day of March,2019. (SIGNATURES APPEAR ON FOLLOWING PAGE License Agreement between the City of Fort Worth and United Way of Tarrant County _g_ LESSEE: LESSOR: CITY OF FORT WORTH UNT Y OF COUNTY By:_:�r ✓ By: Jesus J.Chapa Jeffrey All s Assistant City Manager Titlnior Vice President&CFO CONTRACT COMPLIANCE MANAGER By sig►wig,I acknowledge that I am the person responsible for the monitoring and administration of this contract,including ensuring all ►fortnance.and reporting requirements, Name: Cfa Title: '�gCrt;a tldnuYt 1'► Date: T APPROVED AS TRM AND LEGALITY: By: Leann Guzma Senior Assistant City Attorney Date:— fS ( .— ATT ES a� o� By' Mary Kayser ?a City Secretary Date: 1 Form 1295:Not required Contract Authorization: M&C:C-28676 DATE: 5/8/2018 License Agreement between ti►e City of Fort Worth and United Way of Tarrant County -9- OFFICIAL RECORD CITY BECRET'ARY IST.WOI THI" EXMIT A j Lu wi .1 t License Agreement between the City of Fort Worth and United Way of Tarrant County -10 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/8/2018 DATE: Tuesday, May 8, 2018 REFERENCE NO.: **C-28676 LOG NAME: 21 CAP LEASE AT 401 W SANFORD SUBJECT: Authorize Execution of an Early Lease Termination with Andrews Dillingham, LTD for the Leased Space in the Lamar Atriums, Suite 201, Located at 1601 E. Lamar Street, Arlington, Texas 76011 and the Execution of a Lease Agreement with the United Way of Tarrant County for a Space Located at 401 W. Sanford, Suite 2700,Arlington, Texas, to Relocate the Neighborhood Services Department's Community Action Partners Program (NO COUNCIL DISTRICT) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of an early lease termination with Andrews Dillingham, LTD for the leased space in the Lamar Atriums, Suite 201, located at 1601 E. Lamar Street,Arlington, Texas 76011; and 2. Authorize the execution of a Lease Agreement with the United Way of Tarrant County for space located at 401 W. Sanford, Suite 2700, Arlington, Texas, to relocate the Neighborhood Services Department' s Community Action Partners Program. DISCUSSION: On October 13, 2009, M&C C-23841, CSC#39359, City Council authorized execution of a five (5) year lease agreement, including renewals, with Andrews-Dillingham, LTD for lease space at the Lamar Atriums at 1601 E. Lamar Street, Arlington, Texas 76011 (Lamar Atriums)to operate the CAP Center. The Neighborhood Services Department's Community Action Partners Program (CAP) serves low income citizens in southeast Tarrant County with case management, information and referral services, client intake and assessment, emergency assistance, including the Comprehensive Energy Assistance Program, and other social services. The program is grant funded by the Community Services Block Grant (CSBG)to the City, the Comprehensive Energy Assistance Program (CEAP), and Tarrant County. In addition to serving City of Fort Worth residents, the CAP program also serves Tarrant County residents. A requirement of the CAP funding grant is the program must be conveniently located, be within the boundaries of Tarrant County, and accessible outside of the City of Fort Worth. During the last few years, the number of clients served by the CAP program at its current location has declined because the location is less accessible and inconvenient for the population served. A new location has been identified to administer the CAP program that is more accessible to the clients served and is located in a United Way of Tarrant County facility at 401 W. Sanford, Suite 2700, Arlington, Texas 76011. This United Way facility is already known to low-income Tarrant County residents as a place to seek assistance. Staff has negotiated an early termination of the lease at Lamar Atriums in order to enter into a lease at the United Way facility. The new location will allow the CAP Center to meet their Logname: 21CAP LEASE AT 401 W SANFORD Page 1 of 2 program objectives and serve more clients. The new lease space is approximately 1,533 square feet at a base rental cost of$1,333.82 per month, which is $1,336.83 less per month than the base rental cost at the Lamar Atriums location.The proposed lease term is for five (5) years, commencing on May 1, 2018 and ending on April 30, 2023. The cost for terminating the previous lease is $8,011.95. Approval of this Mayor and Council Communication authorizes the City Manager to: 1) Terminate the current lease with Andrews-Dillingham, LTD for the space at the Lamar Atriums; and 2) Execute a new lease with the United Way of Tarrant County for approximately 1533 square feet of space located at 401 W. Sanford to operate the CAP center. This contract will be with a governmental entity, state agency or public institution of higher education: (United Way of Tarrant County). FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that funds are available in the Tarrant County Public Service Grant and the Community Services Block Grant Fund. Prior to an expenditure being made, the participating department has the responsibility to validate the availability of funds. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference# moun ID ID Year Chartfield 2 FROM Fund Department Accoun Project Program ctivity Budget Reference# moun ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manacer's Office by: Jay Chapa (5804) Originating Department Head: Steve Cooke (5134) Jean Petr (8367) Additional Information Contact: Mark Brown (5197) ATTACHMENTS 1. 401 W Sanford M and C map.pdf (Public) 2. FIDS for 401 W Sanford revised 3.29.2018.pdf (CFW Internal) Logname: 21CAP LEASE AT 401 W SANFORD Page 2 of 2 1 . February 23,2018 Andrews-Dillingham Properties 2080 N Hwy.360,Suite 120 Grand Prairie,Texas 75050 Attention:Gary Smith Re:Lease Termination for the Community Action Partners lease f r suite 201 and the Lamar East Atriums. City Secretary Contracts#39359,#35359-AD1 Dear Mr.Smith: Our Community Action Partners program regretfully requests an arly termination of our lease with Andrews-Dillingham for suite 201 at the Lamar East Atriums.We have enjoyed the space,the building and working with you. Unfortunately,the location has become more difficult for the clients our programs serve to reach, which has resulted in a steady decline in the number of clients we serve. This puts us in serious jeopardy of losing the much needed funding to keep our program running. We propose the following terms for an early lease termination: • Vacate the premises by March 31,2018 if not sooner. • Pay an additional 3 months(April,May and June)of base nt as a lease buy out,which equals$8011.95. If this is agreeable,please have this early lease termination notice signed by the appropriate party and return via email to vlark.13rown0lZortWorthTexas.gov or mail to Mark Brown.Civ of Fort Worth.Property Management,900 Monroe,Fort Worth,Texas. 2. A fully executed copy will be returned to you for your Hies. If you have any questions regarding this information,please conta t Mark Brown via phone at 817.392.5197 or email at mark.brown@fortworthtexas.gov. Regards Mark Brown Land Agent Real Property Division,Property Management Department Fort worth brelhdl PROPERTY MANAGEMENT DEPART ENT fREAL PROPERTY DIVISION �( THE CITY OF FORT WORTH'*9001NONROL SMIT,Surra 404•FOR WORTH,TEXAS 76102 7961•1993•2011 (817)392_7590 PAGE 1 OF 2 LESSEE. LESSOR. CITY OF FORT WORTH ANDREWS- ILLI GHAtyt,--- By: C / By: y7 esus J.Chapa Name: T- Assistant City Manager Title: ' 47 c, APPROVED AS�q FORMAN LEGALITY: 114 1 ix Leann D.Guzm Assistant City Attorney CONTRACT COMPLIANCE MANAGER By signing,I acknowledge that I am the person responsible for the monitoring and administration of this contract,Including FFFIECIAECORD ensuring all performance and reporting requirements. �,ARYName: TX �NTX r /� - � � t Title:_ tAbY M.A ASS f- i A TESTED: �.�o� FO,® - S Maiy J.Kayser,City Secretary Fort Wolth bAnd mala PROPERTY MANAGEMENT DEPARTM 1 NT ftALPRovgRTyDrvi.9toN • Tim CITY OFFORT WORTH"900MONROESTREET,SUITE 404"FORT VoRTU,TeXAs76102 IKI•IYN•]011 (817)392-7590 Page 2 of 2 j City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 5/8/2018 DATE: Tuesday, May 8, 2018 REFERENCE NO.: **C-28676 LOG NAME: 21 CAP LEASE AT 401 W SANFORD SUBJECT: Authorize Execution of an Early Lease Termination with Andrews Dillingham, LTD for the Leased Space in the Lamar Atriums, Suite 201, Located at 1601 E. Lamar Street,Arlington, Texas 76011 and the Execution of a Lease Agreement with the United Way of Tarrant County for a Space Located at 401 W. Sanford, Suite 2700,Arlington, Texas, to Relocate the Neighborhood Services Department's Community Action Partners Program (NO COUNCIL DISTRICT) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of an early lease termination with Andrews Dillingham, LTD for the leased space in the Lamar Atriums, Suite 201, located at 1601 E. Lamar Street, Arlington, Texas 76011; and 2. Authorize the execution of a Lease Agreement with the United Way of Tarrant County for space located at 401 W. Sanford, Suite 2700,Arlington, Texas, to relocate the Neighborhood Services Department s Community Action Partners Program. DISCUSSION: On October 13, 2009, M&C C-23841, CSC#39359, City Council authorized execution of a five (5)year lease agreement, including renewals, with Andrews-Dillingham, LTD for lease space at the Lamar Atriums at 1601 E. Lamar Street,Arlington, Texas 76011 (Lamar Atriums) to operate the CAP Center. The Neighborhood Services Department's Community Action Partners Program (CAP) serves low income citizens in southeast Tarrant County with case management, information and referral services, client intake and assessment, emergency assistance, including the Comprehensive Energy Assistance Program, and other social services. The program is grant funded by the Community Services Block Grant (CSBG) to the City, the Comprehensive Energy Assistance Program (CEAP), and Tarrant County. In addition to serving City of Fort Worth residents, the CAP program also serves Tarrant County residents. A requirement of the CAP funding grant is the program must be conveniently located, be within the boundaries of Tarrant County, and accessible outside of the City of Fort Worth. During the last few years, the number of clients served by the CAP program at its current location has declined because the location is less accessible and inconvenient for the population served. A new location has been identified to administer the CAP program that is more accessible to the clients served and is located in a United Way of Tarrant County facility at 401 W. Sanford, Suite 2700,Arlington, Texas 76011. This United Way facility is already known to low-income Tarrant County residents as a place to seek assistance. Staff has negotiated an early termination of the lease at Lamar Atriums in order to enter into a lease at the United Way facility. The new location will allow the CAP Center to meet their Logname: 21 CAP LEASE AT 401 W SANFORD Page 1 of 2 program objectives and serve more clients. The new lease space is approximately 1,533 square feet at a base rental cost of$1,333.82 per month, which is $1,336.83 less per month than the base rental cost at the Lamar Atriums location. The proposed lease term is for five (5) years, commencing on May 1, 2018 and ending on April 30, 2023. The cost for terminating the previous lease is $8,011.95. Approval of this Mayor and Council Communication authorizes the City Manager to: 1) Terminate the current lease with Andrews-Dillingham, LTD for the space at the Lamar Atriums; and 2) Execute a new lease with the United Way of Tarrant County for approximately 1533 square feet of space located at 401 W. Sanford to operate the CAP center. This contract will be with a governmental entity, state agency or public institution of higher education: (United Way of Tarrant County). FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available in the Tarrant County Public Service Grant and the Community Services Block Grant Fund. Prior to an expenditure being made, the participating department has the responsibility to validate the availability of funds. FUND IDENTIFIERS (FIDs): TO Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 FROM Fund Department ccoun Project Program ctivity Budget Reference # moun ID ID Year Chartfield 2 CERTIFICATIONS: Submitted for City Manager's Office by: Jay Chapa (5804) Originating Department Head: Steve Cooke (5134) Jean Petr (8367) Additional Information Contact: Mark Brown (5197) ATTACHMENTS 1. 401 W Sanford M and C map.pdf (Public) 2. FIDs for 401 W Sanford revised 3.29.2018.pdf (CFW Internal) Logname: 21 CAP LEASE AT 401 W SANFORD Page 2 of 2