HomeMy WebLinkAboutAgenda
AGENDA
Transportation Committee Regular Meeting
4:00 PM - Thursday, September 17, 2015
Council Conference Room, 7th Floor, City Hall – 1055 S. Grady Way
AGENDA
1. Logan Avenue North (Airport Way to North 8th Street) Improvement Project Construction
Management Services
2. Land Lease of the 820 Parcel to Rainier Flight Service, and Approval of Sublease to The
Boeing Company
3. Landing Gear Works, LLC Lease Amendment (LAG-13-005)
4. Operating Permit and Agreement with Aviation Training Center
5. Street Closure Authorization of Burnett Avenue South from South 2nd St. to South 3rd St.
for Repairs
6. Ordinance amending RMC 10-11-1.B.10 to Reduce the Speed Limit on a Portion of
Aberdeen Ave. NE
7. Update on I-405 Ramp Meters
8. Emerging Issues
REGULAR COUNCIL - 14 Sep 2015
SUBJECT/TITLE: Supplemental Agreement #3 to CAG-13-142 with Perteet, Inc. for
Construction Management Services for Logan Avenue North (Airport
Way to North 8th Street) Improvement Project
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: James Wilhoit, Civil Engineer III
EXT.: 7319
FISCAL IMPACT:
Expenditure Required: $ 811,730 Transfer Amendment: $ N/A
Amount Budgeted: $ 836,873 Revenue Generated: $ N/A
Total Project Budget: $ 8,439,274 City Share Total Project: $ 512,971
SUMMARY OF ACTION:
Construction is expected to commence in October 2015 with an approximate duration of 9 months. The scope
of construction for this project and the recordkeeping that it requires make it necessary to retain a consulting
firm to provide construction management services. The firm will coordinate its efforts with City provided
inspection staff.
Utilizing Perteet, Inc. for this purpose makes good sense since the firm designed the project, so they are able
to make good use of their institutional knowledge for construction and Perteet, Inc. has demonstrated its
competence in providing such services on the Garden Avenue Widening Project (2012-2013).
EXHIBITS:
A. Issue Paper
B. CAG-13-142, Supplemental Agreement Number 3
STAFF RECOMMENDATION:
Execute Supplemental Agreement #3 with Perteet, Inc. in the amount of $811,730 to provide construction
management services for the Logan Avenue North (Airport Way to North 8th Street) Improvement Project.
AGENDA ITEM # 1.
PUBLIC WORKS DEPARTMENT
M E M O R A N D U M
DATE:September 1, 2015
TO:Ed Prince, Council President
Members of Renton City Council
VIA:Denis Law, Mayor
FROM:Gregg Zimmerman, Public Works Administrator
STAFF CONTACT:James Wilhoit, Transportation Design Project Manager, x7319
SUBJECT:Supplemental Agreement #3 to CAG-13-142 with Perteet, Inc.
for Construction Management Services for Logan Avenue
North (Airport Way to North 8th Street) Improvement Project
ISSUE
Should the City execute Supplemental Agreement #3 to CAG-13-142 with Perteet, Inc. to
increase the contract amount by $811,730 for a new total of $1,600,576, and extend the
completion date of the agreement to September 30, 2016 in order to provide
construction management services for the Logan Avenue North (Airport Way to North
8th Street) Improvement Project?
RECOMMENDATION
Execute Supplemental Agreement #3 to CAG-13-142 with Perteet, Inc. to increase the
contract amount by $811,730 for a new total of $1,600,576, and extend the completion
date of the agreement to September 30, 2016 in order to provide construction
management services for the Logan Avenue North (Airport Way to North 8th Street)
Improvement Project.
BACKGROUND
On June 27, 2013 Consultant Agreement CAG-13-142 was executed with Perteet, Inc. to
prepare the preliminary design for the Logan Avenue North (Airport Way to North 8th
Street) Improvement Project. At the time the agreement was executed, funding was
not secured for any construction.
In late 2013 a Transportation Improvement Board (TIB) grant was approved for
pavement reconstruction from the Cedar River Bridge to North 6th Street. At about the
same time Supplemental Agreement #1 was executed with Perteet, Inc., which
extended the initial completion date of December 25, 2013 to December 31, 2014.
AGENDA ITEM # 1.
Ed Prince, Council President
Members of Renton City Council
Page 2 of 2
September 1, 2015
Perteet, Inc. was chosen to provide the final design. On April 21, 2014 Supplemental
Agreement #2 was executed to increase the contract amount by $395,413 for a new
total of $788,846, and extend the completion date to December 31, 2015.
The project was advertised for construction on August 5, 2015. On September 1, 2015
bids were opened and a contract will be awarded at the City Council meeting scheduled
for September 14, 2015.
Construction is expected to commence in October 2015 with an approximate duration
of 9 months. The scope of construction for this project and the recordkeeping that it
requires, make it necessary to retain a consulting firm to provide construction
management services. The firm will coordinate its efforts with City provided inspection
staff. Utilizing Perteet, Inc. for this purpose makes good sense since the firm designed
the project, so they are able to make good use of their institutional knowledge for
construction and Perteet, Inc. has demonstrated its competence in providing such
services on the Garden Avenue Widening Project (2012-2013).
The negotiated cost proposal of $811,730 is below the engineer’s independent
estimate. The total budget for this project, design, right-of-way and construction is
$8,439,274. The proposed cost of this consultant agreement brings the projected total
cost of completion to $8,279,135.
cc:Doug Jacobson, Deputy Public Works Administrator – Transportation
Bob Hanson, Transportation Design Supervisor
James Wilhoit, Transportation Project Manager
Juliana Fries, Program Development Coordinator
Heather Ulit, Administrative Secretary I – Transportation
AGENDA ITEM # 1.
WIWashingtonStateDepartmentof‘flansportationSupplementalAgreementandAddressNmbe32707ColbyAvenue,Suite900urEverett,WA98201OriginalAgreementNumberCAG-13-142Phone:(425)252-7700ProjectNumberExecutionDateCompletionDateJune27,2013September30,2016ProjectTitleNewMaximumAmountPayableLoganAve.N.(N.AirportWaytoN.6thSt.)$1,600,576DescriptionofWorkConstructionObservationandAdministrationServicesTheLocalAgencyofCityofRentondesirestosupplementtheagreemententeredintowithPerteet,Inc.andexecutedonJune27,2013andidentifiedasAgreementNo.CAG13-142Allprovisionsinthebasicagreementremainineffectexceptasexpresslymodifiedbythissupplement.Thechangestotheagreementaredescribedasfollows:Section1,SCOPEOFWORK,isherebychangedtoread:SeeExhibit“A’forscopeofservices.IISectionIV,TIMEFORBEGINNINGANDCOMPLETION,isamendedtochangethenumberofcalendardaysforcompletionoftheworktoread:September30,2016IIISectionV,PAYMENT,shallbeamendedasfollows:ServicesdescribedwillcauseanincreaseofEightHundredELeven‘I’housandSevenHundredThirtyDollars($811,730)foranewMaximumAmountPayableofOneMillionSixHundredThousandFivehundredSeventy-SixDollars($1,600,576).assetforthintheaffachedExhibitA,andbythisreferencemadeapartofthissupplement.Ifyouconcurwiththissupplementandagreetothechangesasstatedabove,pleasesignintheappropriatespacesbelowandreturntothisofficeforfinalaction.(__)ConsultantSignatureCrystalL.Donner,PresidentApprovingAuthoritySignatureBy:Perteet,lncBy:DateDOTForn,140-063EFRevised9/2005AGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)[JConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.EXHIBITAScopeofWorkCityofRentonLoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesINTRODUCTIONThisprojectinvolvesthearterialimprovementstoLoganAvenueNorth(N.AirportWaytoN.6thStreet).PerteetInc.(Consultant)willprovideconstructionobservationandadministrationservicesfortheCityofRenton(TheCity).ConsultantwillendeavortoprotecttheCityofRentonagainstdefectsanddeficienciesintheworkoftheContractor,butcannotguaranteetheContractor’sperformanceandshallnotberesponsibleforconstructionmeans,methods,techniques,sequences,proceduresforsafetyprecautionsandprogramsinconnectionwiththework.GENERALSCOPEOFSERVICESThisagreementincludesprofessionalservicestoprovideconstructionobservationandadministrationservicesfortheLoganAvenueNorth.Federalfundswillbeusedintheconstructionoftheproject.Accordingly,theproceduresoutlinedintheWSDOTLocalAgencyGuidelines(LAGManual)willbeusedduringthisproject.ThefollowingisadescriptionofservicestobeprovidedbyPerteet,Inc.andsubconsultant,includingHBB(LandscapeArchitects).ThisscopeofworkdescribestheWorkElementstobeaccomplishedbytheCONSULTANTassummarizedundereachworkelement.Thisscopeconsistsofthefollowingworkelements.TASKI:PROJECTADMINISTRATIONANDMANAGEMENTTASK2:CONSTRUCTIONADMINISTRATIONTASK3:CONSTRUCTIONOBSERVATIONTASK4:SURVEYSERVICESTASK5:CONSTRUCTIONDESIGNSUPPORTTASK6:LANDSCAPEREVIEW,OBSERVATIONANDASSISTANCETASK7:ADACOMPLIANCEEVALUATIONANDMAXIMUMEXTENTFEASiBLE(MEF)DOCUMENTATIONTASK8:MANAGEMENTRESERVECityofRentonPageIScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStrcet)August201SConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreen,entwithPerteetInc.SCOPEOFSERVICESDEFINEDConstructionObservationandAdministrationServicesThescopeofservicesbytheConsultantforthefederallyfundedLoganAvenueNorth(N.AirportWaytoN.6thStreet)projectissummarizedbelow.Theseserviceswillincludeprojectmanagement,meetingsandcorrespondence,contractadministration,reviewofsubmittals,andconstructionobservationfortheCityofRentonasrequiredfortheconstructionoftheproject,asdetailedbelow.GeneralAssumptions:•Theattachedbudgetfortheservicesdetai!edbelowisbasedontheservicesofconstructionobservationandadministrationona140workingdayschedule.•ConstructionsurveyisprovidedbytheContractorpertheContractProvisions.TheConsultant’ssurveycrewwillprovidesupplementarysurveychecksorlimitedinitialstakingpertheContractProvisionsandasdirectedbytheCityandResidentEngineer(RE).•TheContractorwillprovideafieldofficefortheConstructionManagementteamasspecifiedintheContractDocuments.•ConsultantwillfacilitatetheprocurementoftheRecordofMaterials(ROM)fromWSDOT.AnyandallfeeschargedbyWSDOTforthisservicewillbepaidforbytheCity.•TheCitywillprovideearthworkinspection,materialsampling,andmaterialtestingthroughKingCounty.•ConstructiondocumentationwillbepreparedusingCityand/orWSDOTformsfromtheLocalAgencyGuidelines(LAG)Manualinanticipationofmid-projectandpost-projectauditsbyWSDOT,WashingtonStateAuditor’sOffice,andFHWA.Consultantwillfacilitatetheauditsthatoccurpriortothecompletionofconstruction.•ThisisaFederallyAidedprojectthatincludesDBErequirements.•RecordkeepingwillbeasrequiredforCertifiedAgency(CA)complianceforFederallyFundedProjects.ThiseffortwillbeledbytheConsultant.aPriortothestartofconstruction,Perteetwillpreparevideoandphotologoftheconstructionsite.•PerteetwillpreparesuspensionlettersandlettersacknowledgingsubstantialcompletionandfinalcompletionforCitysignatureandapproval.•CitywillprepareandsignNoticetoProceedlettertoContractor.•AdditionaleffortbeyondthereasonableindustrystandardforeachtaskwillbeconsideredExtraWork.•Forthefollowingservices,laborallowancesareanestimateonly.ThelevelofeffortrequiredforthisworkcannotbeaccuratelypredictedasitdependsonissuesoutsideoftheConsultantteam’scontrol.SomeoftheseissuesincludequalityofContractorsubmittals,numberofsubmittalsandifmultiplereviewsarerequired,adverseweatherconditions,andunforeseenconditionsatthesite.AllowanceforanysuchissuesincludingbutnotlimitedtomultiplesubmittalsduetounacceptablequalityofthesubmittalsisnotincludedintheLaborHoursestimate.CityofRentonPage2ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August2015ConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.TaskI—ProjectAdministrationandManagementI.IProvideprojectmanagementoftheConsultantteam.Thiswillinclude:•Projectstaffmanagementandcoordinationwithoutsidesubconsultantsandservices.•Controlofprojectbudgetandschedule.•Preparationofmonthlyinvoicesandprogressreports.I.2Maintainon-goingcontactwiththeCity’sProjectManagerviainformalmeetings,telephonediscussions,andelectronicmail.I.3Managesubconsultantsasrequiredforsitevisits,projectreporting,projectreviews,andgeneralprojectcoordination.I.4MonitortheprojectforpotentialclaimsorprotestsbytheConstructionContractor,andadvisetheprojectteamandCityofpotentialclaimsandprovidesupportonresolvingconflictsandnegotiationswithcontractoroncontractorclaimsorprotestsifanyarises.I.5Providemonthlyreportingofprojectbudgetstatus,consultantbudgetstatus,andprojectedcostatcompletion.Deliverables:•Monthlyinvoiceandprogressreports.•MonthlyreportingofCost-to-CompleteandCost-at-Completionfordurationofprojectbeginningwiththefirstmonthlyestimate.Task2—ConstructionAdministrationProvidedocumentationandrecordkeepingincompliancewithgrantrequirements.ThisisaFederalAidproject;therefore,recordkeepingwillbeconsistentwithWSDOTLocalAgencyGuidelinesandStandards.2.IProjectFile/Records,anddocumentationsetup.ProjectfilingIndexwillbebasedonthePerteet’sfileindexunlessrequestedotherwise,andwillbemodifiedasnecessaryforthisproject.2.2TheCitywillorganizeandfacilitatetheprojectPreconstructionConferenceandcoordinatemeetingfacilityandmeetingdate.TheCitywillpreparethemeetingagendaandmeetingnotesanddistributePDFcopiesofmeetingminutestoallattendeesforreview.TheConsultantwillassisttheCityinpreparingforthePreconstructionConferencebyreviewingtheproposedagendaandaddingsuggestedtopics,attendandparticipateinthePreconstructionConference.2.3Ingeneral,PerteetwilltrackMaterialsApproval(RAMs,QPLs,ShopDrawings,CertificatesofCompliance,etc.)andMaterialAcceptance(inspectedstamps,materialstests,visualvariationforms)foreachbiditemforwhichtherearematerials.Materialsinspection,approvalandacceptancewillbeprimarilymanagedbytheKingCountyMaterialsLaboratoryand/oratestinglaboratory(“MaterialsLaboratory”)selectedbyTheCity.SpecificmaterialstrackingresponsibilitieswillbecoordinatedwithMaterialsLaboratory.Ingeneral,wewillmaintainMaterialsDocumentationasfollows:CityofRentonPage3ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August2015ConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.2.3.aMaintainprojectRecordofMaterials(ROM)onanongoingbasistoensureproperapprovalofallmaterialsincorporatedintotheproject.2.3.bReceiveandlogallConstructionContractorsubmittals.TransmitsubmittalstoConsultant’sofficestaff,andCity,subconsultants,andutilitiesasneededforreview.ReturnsubmittalstotheConstructionContractoruponcompletionofthereviewprocess.Maintainsubmittalsfiles.2.3.cReviewContractorSubmittedrequestforapprovalofmaterialsourcesandQualifiedProductsList(QPL)DataSheetstodeterminecompliancewithWSDOTRecordofMaterials.ContractorwillbedirectedtosubmitseparateRAMformsforeachbiditem.2.3.dMaintainfilesforindividualbiditemcomplianceformaterialdocumentation.2.3.eCollectManufacture’sCertificatesofComplianceandCertificatesofOriginforSteelandIronproducts.2.3.fCollecttestreportsfromthematerialstestinglabforcompliancewiththeinformationgiveninthecontractdocuments.2.3.gCalculateforceaccountworkbasedonWSDOT/AGCBlueBookRentalAgreementorequivalentmeansfordeterminationofrates.2.3.hEvaluateanddeterminetheacceptabilityofsubstituteor“or-equal”materialsandequipmentproposedbytheConstructionContractor,andpreparenecessarydocumentationofmaterialsubstitutions.2.4RFls.Receiveandlogallrequestsforinformation(RFls)fromtheConstructionContractor.CoordinateResponsestoRFIswithCity.RespondtoRFlswithclarificationsandinterpretationsoftheContractDocumentsasappropriateandnecessary.2.5ConsultantwillreviewallChangeOrdersandFieldDirectives.RecommendChangeOrdersandFieldDirectivestotheCity,asappropriate,andprepareChangeOrdersandFieldDirectivesasrequired.2.6PreparemonthlyprogresspaymentbasedoncompletedworkandsubmittoContractorandtheCityforapprovalandpayment.Maintainanupdated“cost-to-complete”logforCityreview.2.7PrepareweeklyprojectmeetingagendasandconductweeklyscheduledmeetingswiththeConstructionContractortoreviewtheprogressoftheworkandidentifyandaddressfieldissues.RecordreportsofanysignificantconcernsandproblemsandforwardtotheConsultant’sDesignTeam,andtheCity.Preparemeetingminutes,anddistributePDFcopiesofminutestoattendees.2.8ReviewandmonitorContractor’scompliancewithconstructionschedulebaseduponmonthlyCPMupdatessubmittedbytheContractor.AssistConsultant’sdesignteam,andtheCityinverification,documentation,and/ornegotiationoftimeextensionsrequestedbytheContractor.Evaluatepotentialscheduleimpactsofallchangeorderwork.CityofRentonPage4ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August2015ConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.2.9ConductContractoremployeeinterviewsandreviewcertifiedpayrollforcomplianceatrandomintervals,documentandfileresults.2.10ObtainandapproveRequesttoSublet.2.IIObtainNoticeofIntenttoPayPrevailingWageandAffidavitofWagesPaid.2.12MonitorandtracksubcontractorDBErequirementstoveri’DBEgoalsarebeingmet.CoordinatequarterlyreportingofDBEgoalstoLocalPrograms.2.13Maintainorderlyelectronicrecordsandfilesatthejobsite.Theserecordsandfilesmayinclude,butarenotlimitedto:•Updatedcontractdocumentsincludinganydesignrevisions,fielddirectives,andchangeorders•Preconstructioriandconstructionprogressphotosandvideotapes•DailyInspectionreports•Projectphotographs•MaterialsApprovals(RAMs)•MaterialAcceptanceVerification•Testreports•RecordofMaterials•Contractor’sSchedules•Weeklystatementsofworkingdays•Progresspaymentdocumentationandbackup(FNR5)•Prevailingwagecertifications•CertifiedPayroll•DBEdocumentationStandardformswillbeusedforrecordsandreportingprocedures.Atcompletionoftheproject,PerteetwillprovideelectronicfilesofalldocumentationtotheCity.AdditionalpaperfileswillbekeptpergrantrequirementsandwillalsobeprovidedtotheCityuponprojectcompletion.2.14TheConsultantwillprepareweeklyconstructionupdatesfortheCitywebmastertopostontheCity’swebsite.InformationtobeincludedforpostingontheCity’swebsitewillincludeactivitiesaccomplishedbytheContractorduringthepreviousweek,andtheContractor’santicipatedworkfortheupcomingtwoweeks.TheContractor’soverallschedulewillbeprovidedforpostingontheCity’swebsite,andastheoverallscheduleisupdatedbytheContractor,thisinformationwillalsobeprovidedforpostingtotheCity’swebsite.TheCity’swebsitewillhaveaprojectspecifice-mailaddressandphonenumberincludedforpeopletoposeprojectrelatedquestions.TheConsultantwillmonitorthee-mailaddressandphonemessagesandprepareresponsestocommentsreceived.FollowingeachweeklyupdateanupdatelinkwillalsobeemailedtoWSDOT,thelocalschooldistrict,Boeing,andtheCity’spoliceandfiredepartments.CityofReritonPage5ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August205ConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)I1ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.Deliverables:•Changeorders(upto20)•Onepageweeklywebsiteupdate•Monthlyprogresspaymentsforapproval,alongwithallpaymentbackup(FNRs)•Finalcontractpaperrecordsatendofproject,including:oAllpaymentdocumentationbackuporganizedbyprogresspaymentandFNRnumberoAllcontractorsubmittalsandresponsesoAllreviewedcertifiedpayrollorganizedbycontractor/subcontractoroDBEquarterlyreportsandsummaryoWeeklyconstructionmeetingagendasandminutesoWeeklystatementsofworkingdaysoDailyinspectionreportsoMaterialtestingreportsoDBEonsitereviews•Electronicrecordsofallconstructiondocumentation,includingallpaperrecordsplusmaterialdocumentationbybiditem,andconstructionphotos.•CompletedRecordofMaterials•UpdatetheCity’swebsiteandrespondtoemailandphonecomments/inquiries.Task3—ConstructionObservationProvideservicesofConstructionObservationtoobservethetechnicalconductoftheconstruction,includingprovidingday-to-daycontactwiththeContractorandtheCity.Basedonthecontractscheduleandtheestimatedcontractworktobecompletedweestimatethatthecontractorwillhavetwo-to-threefullcrewsworkingplussubcontractors,andtheobservationeffortwillrequireuptoonefull-timeresidentengineerandthreefull-timeconstructionobservers.Therefore,thisscopeisbasedontheassumptionthatonefull-timeresidentengineerwouldbeprovidedbytheConsultant,andonefull-timeconstructionobserverwouldbeprovidedbytheCity.TheConsultantwillalsoprovideanadditionalconstructionobserverforI00-daysoftheContractor’sactiveworkingdaystocoverperiodswhentheContractorisrunningthreefullcrewsandtheCityobservermaynotbeavailable.WhenutilizingCitypersonnel,theCitywillbefullyresponsibleforthequalityofinspection;accuracyofmeasurementsanddocumentation;andcompliancewithfederalrequirementsincludingbutnotlimitedtotheproductionofIDRsandFieldNoteRecordsforanyandallworkperformedforsaidinspectionservices.AnyadditionaleffortbyPerteettoaddressissuesrelatedtoaforementionedCityresponsibilitiesisnotincludedintheLaborHoursEstimate.3.IProvideon-siteobservationandmonitoringtoobservethetechnicalconductandprogressoftheconstruction.TheConstructionObserversshallnotberesponsibleforthemeans,methods,techniques,orproceduresoftheconstructionselectedbytheConstructionContractor(s)orforanyfailureofConstructionContractor(s)tocomplywithLaws,ordinances,rules,orregulationsapplicabletotheconstructionwork.ThepartiesrecognizethattheConstructionContractor(s)isresponsibleforensuringthatconstructionisinaccordancewiththeplansandspecifications.CityofRentonPage6ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August2015ConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.3.1.aProjectDailyReport.Preparedailyconstructionreports,detailingtheConstructionContractor’soperationsperformedforeachday,andrecordsdecisionsandobservationsofageneralorspecificnatureinchronologicalorder.Measurequantitiesofmaterialsinstalled,logequipmentandstaffused,andotherrelateditems.3.1.a.IVerifyinthedailyreportthattheContractorisworkingwiththepropertrafficcontrolplans.3.I.a.2Documentworkbeingdoneonaforceaccountbasis.3.1.bVerifythatmaterialapprovaliscomplete(viaROM)priortomaterialbeingusedonsite.3.I.cCoordinateMaterialsTestingandInspection.Coordinatereportandlogtheresultsforfieldsampling,fieldtesting,andlaboratorytestingofsoils,aggregatesandconcretetodeterminecomplianceofthosematerialswithconstructioncontractrequirements.Inthoseinstanceswhereunsatisfactorytestresultsareobtained,followthroughwithnotificationtotheconstructioncontractorandretestingofthematerialsaftercorrectionsaremade.3.1.dCollectscalecertifications.3.I.eProgressPaymentVerification.3.I.e.ICollectandtabulateallquantitydeliverytickets.3.I.e.2PreparefieldnoterecordsinaccordancewithFHWAfundingrequirements.3.I.e.3CheckthatManufacturesCertificationsandCertificationsofMaterialsoriginsarereceivedpriortopayment.3.l.fVerifyacceptancesamplingandtestingfrequenciesreflecttheactualquantitiesused.3.I.gPhotographs.Takeconstructionphotographs/videotapesandprogressphotographsofconstructionactivitiesonadailybasistodocumentprogressoftheworkandjobsiteconditionsencountered,andvideodocumentationofprojectpriortostartofconstruction.3.2Projectcloseout,formalacceptance,reviewandrecommendation.MakerecommendationstotheCityconcerningoperationalacceptance,substantialcompletion,andfinalacceptanceofthework.IncludereviewoftherequestsforextensionoftimebytheConstructionContractor.Includerecommendationforassessmentofliquidateddamages,ifapplicable.Performafinalreviewandinspectionoftheconstructionworkandprepareafinallistofitemstobecorrected.Aftersubstantialcompletionoftheproject,verifycompletionofthepunchlist.3.3Recorddrawings.ReviewtheConstructionContractor’sRecordDrawingsonabi-weeklybasis(anduponcompletionofmajortasks)toverifypostedchanges.Draftandstampas-constructedrecordstobeprintedonfullsizearchivalqualitypaperatthecompletionofconstruction.CityofRentonPage7ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August2015ConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.Deliverables(MostoftheinspectiondeliverableswillbedeliveredasdetailedforTask2above):•RecordDrawingssubmittedon22”x34”vellum.•DailyFieldNoteRecords•FieldNoteRecordsdocumentingallpaymentsTask4—SurveyServices4.IProvideuptoten(10)daysofsurveyservicesonanon-callbasis.Thepurposeoftheon-callsurveywillbetoverifyalignmentandgradeoftheContractor’sworkand/ortoprovideadditionallocationinformationforpreparationofrecorddrawings.Deliverables:•StakingasrequestedTask5—ConstructionDesignSupport5.IConstructionDesignSupport(limitedtominorchanges)5.1.aAssisttheCityProjectManagerwithrequestswherefieldconstructionmodificationsoradditionsarerequestedandprovidedesigntechnicalassistancetofieldpersonnel.5.1.bVisitsitewhenneededtoevaluatedesignissues(assumedtobeonceaweek).5.1.cReviewshopdrawingsforgeneralconformancetothecontractdocuments.5.1.cJTheCONSULTANTwillprovidewrittenresponsesinPDFformatforupto50RFls.EachRFIisexpectedtotakenomorethan4hourstocompleteincludingclarifications.Deliverables:•Shopdrawingsubmir.talswillbereturnedelectronicallyinPDFformatviaemailwithcommentswrittendirectlyonthesubmittalmaterialand/oraccompaniedbyamemorandum,ifrequired.•WrittenresponsestoRFI’swillbereturnedelectronicallyinPDFformatviaemailtotheContractorTask6—LandscapeReview,Observation,andAssistance(subconsultant)6.ICoordinatelandscapereview,observation,andassistancetaskscheduleandworkorders.6.IaSubconsultantHBBwillprovidereviewoftechnicalsubmittalsforshopdrawings,productcutsheets,soilreports,substitutionrequests,andmaterialcertifications(Submittals)forplanting.6.lbHBBwillreviewandrespondtoContractorRequestforInformation(RFls)regardingplanting.6.1cHBBwillassisttheCityinevaluationofOwnerandContractorproposedchangesduringconstruction(ChangeOrders)regardingplantingitems.CityofRentonPage8ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August2015ConstructionObservationandAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.6.dHBBwillprovideuptosix(6)sitevisits(includingpunchlistandfinalpunchlistreview)duringconstructiontodetermineiftheconstructionisprogressingingeneralconformancewiththedesigndocumentsforplanting.Duringsitevisits,inspectandapproveplantsandplantmaterials(entireshipment)whendeliveredtositeforsize,quality,plantselectionandgeneralhealthoftheplants.Deliverables:•FieldreportsforanysitevisitsTask7—ADAComplianceEvaluationandMaximumExtentFeasible(MEF)DocumentationTheConsultantwillperformanADAcomplianceevaluationoftheconstructedpedestrianfacilities.Ifduringconstructionfullaccessibilitycriteriacannotbemetbythesidewalks,curbramps,pedestriansignals,crosswalks,orpedestrianrefugeislands,andassociatedpedestrianimprovements,aMEFDocumentmustbesubmittedtoWSDOTaspartoftheprolectcloseoutafterconstruction.TheConsultantwillprovidethefollowingservices:7.IADAComplianceEvaluationTheConsultantwillperformafieldinspectionoftheconstructedpedestrianfacilities,includingsidewalks,curbramps,pedestriansignals,crosswalks,andpedestrianrefugeislands.TheConsukantwillcheckforADAcompliancetothePROWAGguidelines,andwillrecordinformationontheConsultant’sADAComplianceChecklistsandotherrelativeforms.ThistaskincludessetupofmaterialsusedforthefieldevaluationandcoordinationwithCitystaffregardingnon-compliantelementsandjustifications.7.2MEFDocumentTheConsultantwillpreparetheMEFdocumentationfortheCity’sdocumentation.TheMEFdocumentationwillreflectthefinalbuildoutconditionsandisanticipatedtoincludethefollowingelements:•ProjectDescription—thiswillbeageneraldescriptionoftheoverallproject.•VicinityMap•DesignStandards—thiswillbeageneralstatementoftheguidelines/manualsusedtodeterminecompliance.•BriefstatementthatthepedestrianfacilitiesweredesignedtofullADAcompliance.•Summarytablesforeachtypeoffacility,notingcomplianceornon-compliance.•Specificnon-compliantelementslistedandjustificationsfornon-compliance.•Appendicesincludingatemplateofthechecklistsanddocumentsusedforrecordingthecomplianceevaluationandtheappropriateconstructionplansheets.TheConsultantwillprepareadraftdocumentfortheCity’sreviewandcomment.TheConsultantwillincorporateCitycommentsintothefinaldocument.Deliverables:•DraftelectroniccopyoftheMEFfortheCity’sreviewandcomment.•FinalelectroniccopyoftheMEF,threehardcopies.CityofReritonPage9ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August205ConstructionObservationaridAdministrationServicesAGENDA ITEM # 1.
LoganAvenueNorth(N.AirportWaytoN.6thStreet)ConstructionObservationandAdministrationServicesPerteetAgreementwithPerteetInc.•Consultant’sresponsetoCity’sreviewcomments.Task8—ManagementReserveAdditionalservicesmaybeperformedbytheConsultantattherequestoftheCity,butonlyafterwrittenauthorizationhasbeengivenbytheCitydefiningtheScopeofServicestobeperformed.TimeforCompletionAllworkunderthiscontractshallbecompletedwithin60daysfollowingthesubstantialcompletionoftheproject.ThescopeofthiscontractisbasedupontheContractorcompletingallconstructionactivitywithinthetimeframespecifiedintheContractDocumentsandisbasedupona140workingdayschedulebyonefull-timeResidentEngineer,onepart-timeconstructionobserver,andsupportpersonnelasoutlinedinthebudget.Insupportofthisschedule,ourcontractprovidestwoweeksofprojectsetuptime,140workingdaysofresidentrepresentativesandsupportstaffinadditiontofourweeksofprojectclosuretime(CloseoutRecordPreparation,RecordDrawings,etc.).Iftheworkschedulechangesduetothecontractorworkingweekends,extendedhours,workperformedduringsuspension,addedworkingdaysduetochangeordersorweatherdelays,oriftheconstructionactivityextendsbeyondthecontracttime,theConsultantshallinformtheCityimmediatelytoallowtheCityanopportunitytoauthorizeadditionalbudgetfortheConsultanttoprovidetherequiredadditionalservices.Theadditionalserviceswillbebilledatthehourlyratesestablishedinthebaseagreement.CityofRentonPage10ScopeofServicesLoganAvenueNorth(N.AirportWaytoN.6thStreet)August2015ConstructionObservationandAdministrationServIcesAGENDA ITEM # 1.
ScopeofServicesforHoughBeck&BairdInc.CityofRentonLoganAvenueNorthImprovementsJanuary23,2015ConstructionAssistanceHoughBeck&Baird(HBB)willprovidethefollowingservices:1.Reviewoftechnicalsubmittalsforshopdrawings,productcutsheets,soilreports,substitutionrequests,andmaterialcertifications(Submittals)forsoilpreparationandplanting.2.ReviewandrespondtoContractorRequestforInformation(RFls)regardingsoilpreparationandplanting.3.AssisttheCityinevaluationofOwnerandContractorproposedchangesduringconstruction(ChangeOrders)regardingsoilpreparationandplanting.4.Provideuptosix(6)sitevisits(includingpre-construction,punchlistandfinalpunchlistreview)duringconstructiontodetermineiftheconstructionisprogressinginconformancewiththedesigndocumentsforplanting.AllsitevisitswillberecordedwithafieldreportpreparedbyHBB.5.ProduceprojectrecorddrawingsforplantingatthecompletionofconstructionbasedonContractor’sred-markeddrawingsetduringconstruction.Assumptions:1.HBBwillprovideassistancetotheCityduringconstructionwithregardstosoilpreparationandplanting.Thisproposaldoesnotincludedaytodayconstructionadministration.P:2O14Pojects\2C14-17LoganAvenueNo,thMniinD1-ContractsConamjctionPaaaI-BBConobictianAssitancaScopeofWork.docAGENDA ITEM # 1.
ConsultantFeeDeterminationSummaryPerteet2707ColbyAvenue,Suite900,Everett,WA982011P425.252.7700IF425.339.6018Project:Renton-LoganAveN—NAirportWaytoN8thSt-ConstManagementClient:CityofRentonHourlyCostsPlusFixedFeeEstimateClassificationHoursRateAmountPrincipal136.0075.73$10,299Sr.Associate648.0057.00$36,936Sr.Associate8.0059.00$472EngineerIII496.0035.75$17,732LeadTechnician/Designer120.0033.50$4,020ConstTechnicianII1,068.0031.00$33,108ProfessionalLandSurvey100.0030.50$3,050FieldTechnicianIII100.0032.50$3,250SurveyManager20.0044.50$890ConstructionEngineerIII1,500.0041.50$62,250ConstructionObserverIll1,640.00.35.00$57,400Accountant19.0031.50$599Clerical2.0523.00$47MktProposalMgr38.0042.00$1,596TotalDirectSalaryCosts5,895.00$23I,649Overhead@183.13%$424,219FixedFee30,00%$69,495TotalLaborCosts$725,362ReimbursablesIn-HouseCostsQyAmountMileage-$5753,600$0575$2,065.00PaviaHeadlightSystem24$250000$6,000.00TotalIn-HouseCosts$8,065.00SubconsultantsSubconsultantsçoMarkupAmountHoughBeck&Baird,Inc.$8,285.001.00$8,285.00TotalSubconsultants$8,285.00$8,285.00[OtherManagementReserve$70,0I8.00TotalOtherCosts$70,0I8.00ÔNTRACTTOTAL$81I,730.OOjRatesshownreflectthetypicalcompensationrateofemployeesassignedtothebillingcategorylisted.Eachcategorymayhavemultipleemployeesassignedtothatbillingcategoryandeachemployeemayhaveadifferenthourlyrateofpay.EmployeecompensationissubjecttoadjustmentinJuneofeachcalendaryear.PreparedBy:WilliamRMitchell_
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_Date:August28,2015AGENDA ITEM # 1.
HoughBeckBairdInc.CityofRentonLoganAvenueNorthImprovementsScopeofWorkandDescriptionsbyTaskJuly28,20150231130.55.596630I52I2811TotalReimbursableI5alaryCostsIji3,141.ThIDirectSalaryCostat1.0000TotalOverheadCostat1.2707TotalCostat2.2707FixedFeeat3o’,aTotalReimbursableExpenses(mileage,parking,reprodtiction,printing,andotherprojectrelatedcosts)TOTALCOSTOFSERVICES__
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_$3,141.18$3,991.49$7,132.67$942.35$210.00$8,285.02X:Renton,CIfyoaPm/es12Ol2O173-LogenAvetIrnprovementsProjec,1ManegemCDIfrBeCMWBBFeePmposaLxlsxDate:7/25/20151.1TaskI-ConstructionAssistanc1.2SubmittalReviewPrincipalAdmin.DesignerTechManagerProject[ComPuter!ItemSCOPEOFWORK$66.45$4i$.00$27.50$21.00Reimb.[aiaCost1.3RespondtoRFIs1.4ChangeOrderReviews1.5ConstructionObservationandFieldReviewsl6RecordDrawings0.5Subtotals0.5--$34118Page1ofIAGENDA ITEM # 1.
REGULAR COUNCIL - 14 Sep 2015
SUBJECT/TITLE: Airport 820 Parcel: Rainier Flight Service Lease Agreement and Boeing
Sublease Agreement
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: Jonathan Wilson, Airport Manager
EXT.: 7477
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ 53,555.29
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
The Airport has a vacant parcel resulting from the demolition of the 820 Building in 2014. Both Rainier Flight
Service and The Boeing Company have demonstrated their interest in the parcel through the process outlined
in the Airport Leasing Policies. After extensive consultation with both parties, an arrangement has been
determined in which Rainier Flight Service will lease the parcel from the City under a long-term land lease,
which includes milestones for the future construction of an office and hangar facility for aircraft maintenance
and rental service. The Boeing Company will sublease the same parcel under a short-term agreement as an
amendment to their existing lease. Boeing needs the space temporarily to park 737MAX planes during the
start-up phase of the MAX program. Boeing prefers to lease directly from the City, so the City will sublease
the parcel back from Rainier Flight Service and then lease it to The Boeing Company directly.
The long-term lease between the City and Rainier Flight Service is for 35 years (October 1, 2015 – September
30, 2050) and the initial ground lease rate is the standard rate of $0.7252, as established through the January
2015 lease arbitration. The short-term sublease between Rainier Flight Service and the City, and between the
City and The Boeing Company is for 3-1/2 years (October 1, 2015 – May 31, 2019) at an initial ground lease
rate is $0.7252. Once the sublease expires Rainier Flight Service will pay the City the leasehold for the
remainder of their long-term lease period.
EXHIBITS:
A. Issue Paper
B. Rainier Flight Service, LLC Land Lease Agreement – 820 Parcel
C. Rainier Flight Service, LLC Amendment 01-15 to Land Lease Agreement – 820 Parcel
D. The Boeing Company Amendment 07-15 Lease 10-001 – 820 Parcel
STAFF RECOMMENDATION:
Approve a 35 year land lease of the 820 parcel to Rainier Flight Service, and approve the sublease of the 820
parcel to The Boeing Company under Amendment No. 7 to LAG 10-001.
AGENDA ITEM # 2.
PUBLIC WORKS DEPARTMENT
M E M O R A N D U M
DATE:August 24, 2015
TO:Ed Prince, Council President
Members of the Renton City Council
VIA:Denis Law, Mayor
FROM:Gregg Zimmerman, Public Works Administrator
STAFF CONTACT:Jonathan Wilson, (extension 7477)
SUBJECT:Airport 820 Parcel: Rainier Flight Service, LLC Lease Agreement
and The Boeing Company Sublease Agreement
ISSUE:
Should the Council approve a 35-year land lease of the 820 parcel to Rainier Flight
Service, LLC and sublease of the same parcel to The Boeing Company for 3-1/2 years?
RECOMMENDATION:
Approve a 35-year land lease of the 820 parcel to Rainier Flight Service, LLC and the
sublease of same parcel to The Boeing Company for 3-1/2 years.
BACKGROUND:
On May 14, 2014 the Airport issued a “Solicitation of Interest in Airport Property” to a
variety of existing Airport stakeholders for the 800 and 820 West Perimeter Road
parcels. The 800 parcel included a large hangar and some apron space. The 820 parcel
included some apron space and a gravel lot, which was created when the Airport
demolished an old building. From this solicitation the Airport received applications from
South Cove Ventures (Aerodyne), Rainier Flight Service (Rainier) and The Boeing
Company (Boeing).
At the time staff recommended leasing the 800 Parcel to Rainier. As of
November 1, 2014 a long-term lease was established with Rainier for the 800 parcel.
Staff also recommended leasing the 820 parcel to Boeing. The lease with Boeing was
never executed, so the 820 parcel remains unleased. The lease application from
Southcove Ventures was declined and Southcove was notified.
On April 7, 2015 Rainier submitted a second lease application for the 820 parcel. Boeing
has also expressed continued interest in leasing the 820 parcel to support their 737MAX
AGENDA ITEM # 2.
Ed Prince, Council President
Members of the Renton City Council
Page 2 of 3
August 24, 2015
program. Upon extensive consultation with both companies the Airport is proposing
the long-term land lease with Rainier for the 820 parcel for $53,555.29 in annual
leasehold revenue. The term of the lease is 35 years (October 1, 2015 –
September 30, 2050). The intent of Rainier is to construct a new office/hangar facility
and improve apron space to support aircraft tiedown storage, flight instruction and
aircraft maintenance and rental services.
Since Rainier’s timeline for parcel development is a few years away, Rainier has agreed
to temporarily sublease the 820 parcel back to the City while they begin site
development design. Under Appendix 1 to Rainier’s long-term lease Rainier is obligated
to meet certain dated development milestones for the 820 parcel. Rainier will use the
time during the sublease period to develop a site and building design, and then
commence construction shortly after the sublease has expired. Appendix 1 also
contains a provision that should Rainier fail to meet the identified milestones their lease
term will automatically adjust from September 30, 2050 to September 30, 2024 – a date
concurrent with their existing lease of the 800 West Perimeter Road parcel.
The City as Sublessee will then sublease the 820 parcel to Boeing from October 1, 2015
until May 31, 2019. Boeing will use the 820 parcel for staging 737MAX aircraft. Boeing
has indicated that they only need temporary parking during startup of the production
cycle and their sublease only allows them tenancy until May 31, 2019. On June 1, 2019
the sublease terminates between the City and Boeing and also between Rainier and the
City. Rainier will then commence their site improvements. Boeing requested this lease
arrangement because their preference is to lease directly from the City. This
arrangement is similar to an existing lease the Airport has with Boeing for the 760 and
770 parcels. For those parcels Boeing is the current leaseholder but the Airport has
subleased a portion of the parcels back to temporarily house general aviation aircraft.
This arrangement ended August 31, 2015.
This lease arrangement benefits all three parties. Rainier will have a long-term lease
which allows them to more robustly plan and finance future development on the 820
parcel. Financial institutions will be more likely to consider lending to Rainier with an
executed long-term lease. This makes it more likely that Rainier will be able to meet the
development milestone dates as called out in Appendix 1 of the long-term lease.
The advantage to Boeing is that it provides Boeing with temporary space to park
737MAX airplanes as that program comes on line. The 820 parcel will be able to
accommodate up to two parking spaces for these new jets.
The advantage to the Airport is the leasehold revenue gained through the consistent
leasing of the parcel. The annual leasehold revenue for the parcel is $53,555.29 (73.849
square feet x $0.7252 per square foot per year). Similar to other hangar construction on
the Airport, any future buildings on that site will revert to City ownership at the end of
AGENDA ITEM # 2.
Ed Prince, Council President
Members of the Renton City Council
Page 3 of 3
August 24, 2015
the lease term. In addition should Boeing construct improvements that are not
congruous with Rainier’s future development, the Airport can request those
improvements to be removed at Boeing’s expense.
This arrangement only works if all three agreements are executed at the same time. For
this agenda bill, there is a long-term lease with Rainier (Exhibit 2); an amendment to the
aforementioned long-term lease with Rainier to sublease back to the City (Exhibit 3);
and another amendment to sublease from the City to Boeing (Exhibit 4).
Cc:Doug Jacobson, Deputy Public Works Administrator
Heather Ulit, Administrative Secretary I
Susan Campbell-Hehr, Secretary II
AGENDA ITEM # 2.
LAGiSLANDLEASEAGREEMENTCityofRentontoRainierFlightServiceLLCTHISBUILDINGLEASE(hereinafter“Lease”)ismadeandenteredintothis_______dayof_______•2015byandbetweenTHECITYOFRENTON,aWashingtonmunicipalcorporation(hereinafter‘Landlord’),andRainierFlightService,LLC,aWashingtonlimitedliabilitycorporation(hereinafter“Tenant”).InconsiderationofthecovenantsandagreementssetforthinthisLease,LandlordandTenantagreeasfollows;1.GRANTOFLEASE:l.a.DocumentsofLease:ThefollowingdocumentconstitutesthisLease;ExhibitA-LeaseMapandLegalDescriptionExhibitB-AircraftLawsandRegulations,RCW47.68.250:PublicHighwaysandTransportationAppendix1l.b.LegalDescriptionandReservationofEasement:LandlordherebyleasestoTenant,andTenantleasesfromLandlordforthetermdescribedinSection3below,theparcelat820WestPerimeterRoadwhichis73,849squarefeet,asshownonExhibit“A”(leasemap),whichisattachedheretoandincorporatedhereinbythisreference,(hereinafter,“Premises”).1.c.CommonAreas:Tenant,anditsauthorizedrepresentatives,subtenants,assignees,agents,invitees,andlicensees,shallhavetherighttouse,incommonwithothers,onanon-exclusivebasisandsubjecttotheAirportRegulationsandMinimumStandards(astheymaybeamendedfromtimetotime)pursuanttoSection8(e)below,thepublicportionoftheRentonMunicipalAirport(akaClaytonScottField,hereinafterreferredtoas“Airport”),includingtherunwayandotherpublicfacilitiesprovidedthereon.1.c.(1).NotwithstandinganythinginthisLeasetothecontrary,LandlordacknowledgesthatdirectaccesstothetaxiwaysandrunwayfromthePremisesisessentialtotheconductofTenant’sbusinessonthePremisesand,exceptduringconstructionactivitiesoccurringonthetaxiways,runwayorweatherrelatedevents,LandlordshallensurethatTenantanditsrepresentatives,subtenants,assignees,agents,invitees,andlicenseeshavedirectaccesstothetaxiwaysandrunwayatalltimesduringtheTerm.2.CONDITIONS:2.a.SpecificConditions:ThisLease,andTenants’rightsandpermittedusesunderthisLease,aresubjecttothefollowing;LEASEAGREEMENT1CityofRentontoRainierFlightService,LLCQgiGiNALAGENDA ITEM # 2.
LAGis2.a.(1).TheAirportRegulationsandMinimumStandardspursuanttoSection8(e)ofthisleaseagreement,includingLandlord’sstandardsconcerningoperationofpublicaviationserviceactivitiesfromtheAirport;and2.a,(2).Allsuchnon-discriminatorychargesandfeesforsuchuseoftheAirportasmaybeestabtishedfromtimetotimebyLandlord.2.b.NoConveyanceofAirport:ThisLeaseshallinnowaybedeemedtobeaconveyanceoftheAirport,andshallnotbeconstruedasprovidinganyspecialprivilegeforanypublicportionoftheAirportexceptasdescribedherein.TheLandlordreservestheabsoluterighttoleaseorpermittheuseofanyportionoftheAirportforanypurposedeemedsuitablefortheAirport,exceptthatportionthatisleasedhereby.2.c.NatureofLandlord’sInterest:ItisexpresslyunderstoodandagreedthatLandlordholdsandoperatestheAirportandthePremisesunderandsubjecttoagrantandconveyancethereoftoLandlordfromtheUnitedStatesofAmerica,actingthroughitsReconstructionFinanceCorporation,andsubjecttoallthereservations,restrictions,rights,conditions,andexceptionsoftheUnitedStatesthereinandthereunder,whichgrantandconveyancehasbeenfiledforrecordintheofficeoftheRecorderofKingCounty,Washington,andrecordedinVolume2668ofDeeds,Page386;andfurtherthatLandlordholdsandoperatessaidAirportandPremisesunderandsubjecttotheStateAeronauticsActsoftheStateofWashington(chapter165,lawsof1947),andanysubsequentamendmentsthereoforsubsequentlegislationofsaidstateandallrulesandregulationslawfullypromulgatedunderanyactorlegislationadoptedbytheStateofWashingtonorbytheUnitedStatesortheFederalAviationAdministration.ItisexpresslyagreedthattheTenantalsoacceptsandwillholdandusethisLeaseandthePremisessubjecttheretoandtoallcontingencies,risks,andeventualitiesoforarisingoutoftheforegoing,andifthisLease,itsTerm,oranyconditionsorprovisionsofthisLeaseareorbecomeinconflictwithorimpairedordefeatedbyanysuchlegislation,rules,regulations,contingenciesorrisks,thelattershallcontroland,ifnecessary,modifyorsupersedeanyprovisionofthisLeaseaffectedthereby,allwithoutanyliabilityonthepartof,orrecourseagainst,LandlordinfavorofTenant,providedthatLandlorddoesnotexceeditsauthorityundertheforegoinglegislation,rulesandregulationsandprovidedfurtherthat,intheeventthatthisLeaseismodifiedorsupersededbysuchlegislation,rules,regulations,contingenciesorrisks,allcompensationpayabletotheLandlordforathirdparty’suseoftheimprovementsduringtheTermshallbepaidtotheTenant,itssuccessorsoritsassigns.2.d.FutureDevelopment/Funding:NothingcontainedinthisLeaseshalloperateorbeconstruedtopreventorhinderthefuturedevelopment,improvements,oroperationofAirportbyLandlord,itsagents,successorsorassigns,oranydepartmentoragencyoftheStateofWashingtonoroftheUnitedStates,ortheconsummationofanyloanorgrantoffederalorstatefundsinaidofthedevelopment,improvement,oroperationoftheRentonAirport,butLEASEAGREEMENT2CityofkentontoRainierFlightservice,LLCAGENDA ITEM # 2.
LAG15-Landlord’sexerciseofsuchrightsshallnotunreasonablyinterferewithTenant’srightsunderthisLease.2.e.Appendix1Governs:IntheeventofaconflictbetweenthetermsandconditionsofthisLeaseandAppendix1,thePartiesagreethatthetermsandconditionssetoutinAppendix1attachedheretoshallsupersedethetermsandconditionshereininsofarastheyareinconflict.3.TERM:3.a.Term:ThetermofthisLeaseastotheentirePremisesshallbeforathirty-fiveyearperiod(35)commencingonOctober1,2015(hereinafter“CommencementDate”),andterminatingonSeptember30,2050(hereinafter“ExpirationDate”).3.b.TermProvision:TheTermofthisLeaseisalsosubjecttotheprovisionsidentifiedinAppendix1attachedhereto.4.RENT/FEES/CHARGES:4.a.MinimumMonthlyRent:TenantshallpaytoLandlordaMinimumMonthlyRentinthesumoffourthousandfourhundredsixtytwodollarsand94/100Dollars($4,462.94),PLUSLeaseholdExciseTaxasdescribedinSection5,below,withoutdeduction,offset,priornoticeordemand,payablepromptlyinadvanceonthefirstdayofeachandeverymonth.AllsuchpaymentsshallbemadetotheCityofRenton,AirportAdministrationOffice,616WestPerimeterRoad,UnitA,Renton,Washington98057.TheMinimumMonthlyRent,beginningontheCommencementDate,iscomputedasfollows:MonthlyRental—LandComponent(73,849squarefeet)($0.7252persquarefootperyear)=$53,555.29/yr,($53,555.29/12months=$4,462.94permonth)PLUS,leaseholdexcisetax.4.b.PeriodicRentalAdjustment:TheMonthlyRentshallbesubjecttoautomaticadjustmentonthethird(3ft1)anniversaryoftheCommencementDateandeverythreeyearsthereafterontheanniversaryoftheCommencementDate(anyofwhichshallhereinafterbereferredtoas“AdjustmentDate”)asfollows:AsusedinthisSection4.b,“Index”meanstheConsumerPriceIndexforAllUrbanConsumersforSeattle-Tacoma-BremertonAllItems(1982-84=100)(CPI-U)publishedbytheUnitedStatesDepartmentofLabor,BureauofLaborStatistics;“BeginningIndex”meanstheIndexwhichispublishednearest,butpreceding,theCommencementDate;and“AdjustmentIndex”meanstheIndexwhichispublishednearest,butpreceding,eachAdjustmentDate.LEASEAGREEMENT3CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-ForthefirstPeriodicRentAdjustment,iftheAdjustmentIndexhasincreasedovertheBeginningIndex,theMonthlyRentpayableforthefollowingthree(3)yearperiod(untilthenextAdjustmentDate)shallbesetbymultiplyingtheMonthlyRentprovidedforinSection4.a.ofthisLeasebyafraction,thenumeratorofwhichistheAdjustmentIndexandthedenominatorofwhichistheBeginningIndex.Theproductshallbethe“AdjustedMonthlyRent.”InnoeventshalltheAdjustedMonthlyRentdeterminedpursuanttothisparagraphbelessthantheMonthlyRentsetforthinSection4.a.ofthisLease.ForthesecondandanysubsequentPeriodicRentAdjustment,iftheAdjustmentIndexisgreaterthantheAdjustmentIndexthreeyearsprior,thentheAdjustedMonthlyRentpayableforthefollowingthree(3)yearperiod(untilthenextAdjustmentDate)shallbesetbymultiplyingthethencurrentAdjustedMonthlyRentbyafraction,thenumeratorofwhichistheAdjustmentIndexandthedenominatorofwhichistheAdjustmentIndexfromthreeyearsprior.Theproductshallbethe“AdjustedMonthlyRent.”InnoeventshalltheAdjustedMonthlyRentdeterminedpursuanttothisparagraphbelessthananypriorAdjustedMonthlyRent.4.c.NoticeofRequestforReadiustmentofRental:LandlordandTenantdoherebyfurtheragreethatLandlordmayadjusttheMinimumMonthlyRentforensuingthree(3)yearperiodbyameansotherthantheIndex.Insuchevent,Landlordmust,atleastthirty(30)dayspriortoanyAdjustmentDate,providetotheotherpartyawrittenrequestforreadjustmentoftherentalratepursuanttoRCW14.08.120(5).4.d.LatePaymentCharge:IfanyRentisnotreceivedbyLandlordfromTenantbythetenth(iQth)businessdayaftersuchRentisdue,TenantshallimmediatelypaytoLandlordalatechargeequaltofivepercent(5%)oftheamountofsuchRent.ShouldTenantpaysaidlatechargebutfailtopaycontemporaneouslytherewithallunpaidamountsofRent,Landlord’sacceptanceofthislatechargeshallnotconstituteawaiverofTenant’sdefaultwithrespecttoTenant’snonpaymentnorpreventLandlordfromexercisingallotherrightsandremediesavailabletoLandlordunderthisLeaseorunderlaw.IfanycheckreceivedbyLandlordfromTenantisreturnedunpaidforanyreason,Landlordreservestherighttocharge,andTenantagreestopay,anadditionalchargeuptothemaximumamountallowedbylaw.Landlord’sacceptanceofthisadditionalchargeshallnotconstituteawaiverofTenant’sdefaultwithrespecttoTenant’sreturnedchecknorpreventLandlordfromexercisingallotherrightsandremediesavailabletoLandlordunderthisLeaseorunderlaw.Unpaidamountsofrent,latecharges,oradditionalchargesshallbearinterestattherateoftwelve(12%)percentperannumuntilpaid.4.e.OtherFeesandCharges:Tenantshallpay,inadditiontotheMinimumMonthlyRentandotherchargesidentifiedinthisLease,allnon-discriminatoryfeesandchargesnowineffectorhereafterleviedorestablishedbyLandlordorchargedagainstthePremisesandagainstothersimilarlysituatedTenantsattheAirportbyLandlord,orleviedorestablishedby,LEASEAGREEMENT4cityofRentontoRainierFlightservice,LLcAGENDA ITEM # 2.
LAG15-oragainstthePremisesbyanyothergovernmentalagencyorauthority,beingorbecomingleviedorchargedagainstthePremises,structures,businessoperations,oractivitiesconductedbyorusemadebyTenantof,on,andfromthePremises,includingwithoutlimitation,AircraftRescueandFireFightingorservicesrenderedtotheTenantorthePremises.S.LEASEHOLDEXCISETAX:TenantshallpaytoLandlordtheleaseholdexcisetaxasestablishedbyRCWChapter82.29A,asamended,oranyreplacementthereof,whichtaxshallbeinadditiontotheMinimumMonthlyRentandotherchargespayableunderthisLeaseandshallbepaidatthesametimetheMinimumMonthlyRentisdue.IftheStateofWashingtonoranyothergovernmentalauthorityhavinglurisdictionthereovershallhereafterlevyorimposeanysimilartaxorchargeonthisLeaseortheleaseholdestatedescribedherein,thenTenantshallpaysuchtaxorchargewhendue.SuchtaxorchargeshallbeinadditiontotheMinimumMonthlyRentandothertaxesorchargespayableunderthisLease.6.PAYMENTOFUTILITIESANDRELATEDSERVICES.TenantshallpayforallutilitiesandservicesusedinthePremises,includingwithoutlimitationelectricity,gas,water,sewer,garbageremoval,janitorialservice,andanyotherutilitiesandservicesusedinthePremises.Landlordshallnotbeliableforanylossordamagecausedbyorresultingfromanyvariation,interruption,orfailureofanyutilityservicesduetoanycausewhatsoever,except,andonlytotheextentcausedby,Landlord’snegligence.Landlordshallnotbeliablefortemporaryinterruptionorfailureofsuchservicesincidentaltothemakingofrepairs,alterationsorimprovements,orduetoaccident,strike,actofGod,orconditionsoreventsnotunderLandlord’scontrol.TemporaryinterruptionorfailureofutilityservicesshallnotbedeemedabreachoftheLeaseorasanevictionofTenant,orrelieveTenantfromanyofitsobligationshereunder.7.TENANT’SACCEPTANCEOFPREMISES:7.a.AcceptanceofPremises:ByoccupyingthePremises,TenantformallyacceptsthePremisesin“ASIS”condition,andacknowledgesthattheLandlordhascompliedwithalltherequirementsimposeduponitunderthetermsofthisLeasewithrespecttotheconditionofthePremisesattheCommencementDate.TenantherebyacceptsthePremisessubjecttoallapplicablezoning,federal,state,countyandmunicipallaws,ordinancesandregulationsgoverningandregulatingtheuseofthePremises,andacceptsthisLeasesubjecttheretoandtoallmattersdisclosedtherebyandbyanyexhibitsattachedhereto.Tenantacknowledgesthat,exceptasotherwiseprovidedinthisLease,neitherLandlordnorLandlord’sagentshavemadeanyrepresentationorwarrantyastothesuitabilityofthePremisesfortheconductofTenant’sbusinessoruse.Exceptasotherwiseprovidedherein,LandlordwarrantsTenant’srighttopeaceablyandquietlyenjoythePremiseswithoutanydisturbancefromLandlord,orothersclaimingbyorthroughLandlord.8.USEOFPREMISES:LEASEAGREEMENT5cityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-8.a.UseofPremises:ThePremisesareleasedtotheTenantforthefollowingdescribedpurposesandusesnecessarytosaidpurposes:8.a.(1).AircraftMaintenanceincludinginspection,majorandminorrepair,andmajorandminoralterationofairframes,engines,avionics,interiorsandaircraftcomponents;8.a.(2).Storageandtie-downofaircraft,bothindoorsandoutdoors;8.a.(3).Commercialflightoperationsincludingflighttraining,aircraftrental,sightseeing,aerialphotographyandanyoperationsconductedunder14CFRPart91and14CFRPart135;8.a.(4).Saleofaviationfuelsandlubricants;8.a.(5).Saleofaircraftparts,componentsandpilotsupplies;8.a.(6).Aircraftservicingwithfluidsandcompressedgases;8.a.(7).Aircraftgrooming;and8.a.(8).Aircraftsales,leasing,andmanagement.8.b.ContinuousUse:TenantcovenantsthatthePremisesshallbecontinuouslyusedfor8.a.(1)andB.a.(4),andsomeoralloftheremainingpurposessetforthaboveduringtheTerm,shallnotbeallowedtostandvacantoridle,subjecttoreasonable,temporaryinterruptionsformaintenance,construction,orotherpurposes,andshallnotbeusedforanyotherpurposewithoutLandlord’spriorwrittenconsent.ConsentofLandlordtoothertypesofaviationactivitieswillnotbeunreasonablywithheld.S.c.Non-AviationUsesProhibited:TenantagreesthatthePremisesmaynotbeusedforusesoractivitiesthatarenotrelated,directlyorindirectly,toaviation.s.d.Advertising:NoadvertisingmatterorsignsshallbedisplayedonthePremises,atanytime,withoutthepriorwrittenapprovalofLandlord,whichapprovalwillnotbeunreasonablywithheld.8.e.ConformitywithLaws,RulesandRegulations:Tenantshallcomplywithapplicablefederal,state,countyandmunicipallaws,ordinancesandregulationsconcerningTenant’suseofthePremises,TenantshallkeepandoperatethePremisesandallstructures,improvements,andactivitiesinoraboutthePremisesinconformitywiththeAirportRegulationsandMinimumStandardsandotherreasonablerulesandregulationsnoworhereafteradoptedbyLandlord,providedthatallsuchAirportRegulationsandMinimumStandardsandotherrulesadoptedhereafterarenon-discriminatory,allatTenant’scostandexpense.LEASEAGREEMENT6cityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-s.f.Waste;Nuisance;IllegalActivities:Tenantshallnotpermitanywaste,damage,orinjurytothePremisesorimprovementsthereon,norallowthemaintenanceofanynuisancethereon,northeusethereofforanyillegalpurposesoractivities.8.g.IncreasedInsuranceRisk:TenantshallnotdoorpermittobedoneinoraboutthePremisesanythingwhichwillbedangeroustolifeorlimb,orwhichwillincreaseanyinsuranceratesuponthePremisesorotherbuildingsandimprovementsattheAirport.8.h.HazardousWaste:8.h.(1).Tenant’sRepresentationandWarranty:TenantshallnotdisposeoforotherwiseallowthereleaseofanyHazardousSubstancesin,onorunderthePremises,ortheProperty,orinanytenantimprovementsoralterationsplacedonthePremisesbyTenant.TenantrepresentsandwarrantstoLandlordthatTenant’sintendeduseofthePremisesdoesnotandwillnotinvolvetheuse,production,disposalorbringingontothePremisesofanyhazardoussubstances,hazardousmaterial,wast,pollutant,orcontaminant,asthosetermsaredefinedinanyfederal,state,county,orcitylaworregulation(collectively,“HazardousSubstances”)otherthanfuels,lubricantsandotherproductswhicharecustomaryandnecessaryforuseinTenant’sordinarycourseofbusiness,providedthatsuchproductsareused,storedanddisposedofinaccordancewithapplicablelawsandmanufacturer’sandsupplier’sguidelines.Tenantshallpromptlycomplywithalllawsandwithallorders,decreesorjudgmentsofgovernmentalauthoritiesorcourtshavingjurisdiction,relatingtotheuse,collection,treatment,disposal,storage,control,removalorcleanupbyTenantofHazardousSubstances,in,onorunderthePremises,orincorporatedinanyimprovementsoralterationsmadebyTenanttothePremises,atTenant’ssolecostandexpense.8.h.(2).StandardofCare:TenantagreestouseahighdegreeofcaretobecertainthatnoHazardousSubstancesareimproperlyused,releasedordisposedin,onorunderthePremisesduringtheTermbyTenant,oritsauthorizedrepresentativesorassigns,orareimproperlyused,releasedordisposedonthePremisesbytheactofanythirdparty.8.h.(3).ComplianceNotification;Intheeventofnon-compliancebyTenant,afternoticetoTenantandareasonableopportunityforTenanttoeffectsuchcompliance,Landlordmay,butisnotobligatedto,enteruponthePremisesandtakesuchactionsandincursuchcostsandexpensestoeffectsuchcompliancewithlawsasitdeemsadvisabletoprdtectitsinterestinthePremises,provided,howeverthatLandlordshallnotbeobligatedtogiveTenantnoticeandanopportunitytoeffectsuchcomplianceif(I)suchdelaymightresultinmaterialadverseharmtothePremisesortheAirport,or(H)anemergencyexists.TenantshallreimburseLandlordforthefullamountofallcostsandexpensesincurredbyLandlordinconnectionwithsuchcomplianceactivitiesandsuchobligationshallcontinueevenafterexpirationorterminationoftheTerm.TenantshallnotifyLandlordimmediatelyofanyreleaseofanyHazardousSubstancesin,onorunderthePremises.LEASEAGREEMENT7CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
••sj:.LAG15-8.h.(4).Indemnity:8.h.(4)(a).LandlordshallhavenoresponsibilitytotheTenant,oranyotherthirdparty,forremedialactionunderR.C.W.Chapter70.1USD,oranyotherfederal,state,countyormunicipallaws,intheeventofareleaseofordispositionofanyHazardousSubstancesin,onorunderthePremisesduringtheTermthatwerecausedbyTenant.Tenantshalldefend,indemnifyandholdharmlessLandlord,itsofficials,employees,agentsandcontractors(hereinafter“CityIndemnitees”)fromanyclaims,obligation,orexpense(including,withoutlimitation,thirdpartyclaimsforpersonalinjuryorrealorpersonalpropertydamage),actions,administrativeproceedings,judgments,penalties,fines,liability,loss,damage,obligationorexpense,including,butnotlimitedto,feesincurredbytheLandlordorCityIndemniteesforattorneys,consultants,engineers,damages,environmentalresourcedamages,andremedialactionunderR.C.W.Chapter70.1OSDorotherremediation,arisingbyreasonofthereleaseordispositionofanyHazardousSubstancesin,onorunderthePremisesduringtheTermthatarecausedbyTenant.8.h.(4)(b).TenantshallhavenoresponsibilitytotheLandlord,oranyotherthirdparty,forremedialactionunderR.C.W.Chapter70.105D,orotherfederal,state,countyormunicipallaws,norshallTenanthaveanyotherliabilityorresponsibilityofanykind,intheeventofthepresence,release,ordispositionofanyHazardousSubstanceon,in,orunderthePremisesunlesssuchpresence,release,ordispositionofanyHazardousSubstancewascausedbyTenant.Landlordshalldefend,indemnifyandholdharmlessTenant,andtheir,owners,directors,officers,agents,employees,andcontractors(collectively,“Indemnitees”)fromanyclaims(includingwithoutlimitationthirdpartyclaimsforpersonalinjuryorrealorpersonalpropertydamage),actions,administrativeproceedings,judgments,penalties,fines,liability,loss,damage,obligationorexpense,including,butnotlimitedto,feesincurredbyTenantoranyIndemniteeforattorneys,consultants,engineers,damages,environmentalresourcedamages,andremedialactionunderR.C.W.Chapter70.105Dorotherremediation,arisingfromorinconnectionwiththepresence,su5pectedpresence,releaseorsuspectedreleaseofanyHazardousSubstancesin,onorunderthePremisesthatisnotcaused,inwholeorinpart,byTenantortheIndemnitees.8.h.(4)(c).TheprovisionsofthisSubsection8,h.(4)shallsurvivetheexpirationorsoonerterminationoftheTerm.NosubsequentmodificationorterminationofthisLeasebyagreementofthepartiesorotherwiseshallbeconstruedtowaiveortomodifyanyprovisionsofthisSectionunlesstheterminationormodificationagreementorotherdocumentexpresslysostatesinwriting.8.h.(5).DisputeResolution:IntheeventofanydisputebetweenthepartiesconcerningwhetheranyHazardousSubstanceswerebroughtontothePremisesbyTenant,orwhetheranyreleaseofordispositionofanyHazardousSubstancewascausedbyTenant,thepartiesagreetosubmitthedisputeforresolutionbyarbitrationupondemandbyeitherparty.LEASEAGREEMENTSCityofRentontoRainierFlightService,LLcAGENDA ITEM # 2.
LAG15-LandlordandTenantdoherebyagreethatthearbitrationprocessshallbelimitedtonotmorethanonehundredfifty(150)calendardays,usingthefollowingprocedures:8.h.(5).a.LandlordshallselectandappointonearbitratorandTenantshallselectandappointonearbitrator,bothappointmentstobemadewithinaperiodofsixty(60)daysfromtheendofthenegotiationperiodcitedinSection8.h.(5).LandlordandTenantshalleachnotifytheotheroftheidentityoftheirarbitratorandthedateofthepostmarkorpersonaldeliveryofthelettershallbeconsideredthedateofappointment.8.h.(5).b.Thetwoappointedarbitratorsshallmeet,andshallmaketheirdecisioninwritingwithinthirty(30)daysafterthedateoftheirappointment.Iftheappointmentdateforeitherarbitratorislaterthantheother,thelatterdateshallbetheappointmentdateforpurposesofthethirty(30)daydeadline.8.h,(5).c.Ifthetwoarbitratorsareunabletoagreewithinaperiodofthirty(30)daysaftersuchappointment,theyshall,withinaperiodofthirty(30)daysafterthefirstthirty(30)dayperiod,selectathirdarbitrator.Ifsuchthirdarbitratorhasnotbeenselectedorifsuchthirdarbitratorhasnotacceptedsuchappointmentwithinsuchthirty(30)dayperiod,eitherPermittororPermitteemayapplytotheheadoftheSeattleofficeoftheAmericanArbitrationAssociationtoappointsaidthirdarbitrator.8.h.(5).d.Thethreearbitratorsshallhavethirty(30)daysfromthedateofselectionofthethirdarbitratortoreachamajoritydecisionunlessthetimeisextendedbyagreementofbothparties.Thedecisionofthemajorityofsucharbitratorsshallbefinalandbindinguponthepartieshereto.8.h.(5).e.ThearbitratorsshallbeenvironmentalconsultantswithexperienceintheidentificationandremediationofHazardousSubstances.Thearbitratorsshallmaketheirdecisioninwritingwithinsixty(60)daysaftertheirappointment,unlessthetimeisextendedbytheagreementoftheparties.Thedecisionofamajorityofthearbitratorsshallbefinalandbindingupontheparties.Eachpartyshallbearthecostofthearbitratornamedbyit.Theexpensesofthethirdarbitratorshallbebornebythepartiesequally.8.i.AircraftRegistrationCompliance:TheTenantisherebynotifiedoftheWashingtonStatelawconcerningaircraftregistrationandtherequirementthattheTenantcomplytherewith.SeeExhibitB(“AircraftLawsandRegulations,RCW47.68.250PublicHighwaysandTransportation”).8.i.(1).Tenantshallannually,duringthemonthofJanuary,submitareportofaircraftstatustotheAirportManager.OnecopyofthisreportshallbeusedforeachaircraftownedbytheTenant,andsufficientformswillbesubmittedtoidentifyallaircraftownedbytheTenantandthecurrentregistrationstatusofeachaircraft.Ifanaircraftisunregistered,anunregisteredaircraftreportshallalsobecompletedandsubmittedtotheAirportManager.LEASEAGREEMENT9cityofRentontoRainierFlightservice,LLCAGENDA ITEM # 2.
4’LAG15-8.i.(2).Tenantshallrequirefromanaircraftownerproofofaircraftregistrationorproofofintenttoregisteranaircraftasaconditionofsub-leasingtie-downorhangarspaceforanaircraft.Tenantshallfurtherrequirethatannually,thereafter,eachaircraftownerusingtheTenant’sPremisessubmitareportofaircraftstatus,or,ifanaircraftisunregistered,anunregisteredaircraftreport.Tenantshallannually,duringthemonthofJanuary,collecttheaircraftowners’reportsandsubmitthemtotheAirportManager.9.MAINTENANCE:9.a.MaintenanceofPremises:ThePremisesandalloftheimprovementsorstructuresthereonandauthorizedbytheLandlordforusebytheTenant,shallbeusedandmaintainedbyTenantinanoperable,neat,orderly,andsanitarymanner.Tenantisresponsibleforthecleanupandproperdisposalatreasonableandregularintervalsofrubbish,trash,wasteandleavesuponthePremises,includingthatblownagainstfencesborderingthePremises,whetherasaresultoftheTenant’sactivitiesorhavingbeendepositeduponthePremisesfromotherareas.TenantshallmaintainingoodconditionandrepairthePremises,subjecttoordinarywearandtear,including,theinteriorwalls,floors,andanyinteriorportionsofalldoors,windows,andglass,parkingareas,landscaping,fixtures,heating,ventilatingandairconditioning,includingexteriormechanicalequipment..Tenantshallmakeallrepairs,replacementsandrenewals,whetherordinaryorextraordinary,anticipatedorunforeseen,thatarenecessarytomaintainthePremisesintheconditionrequiredbythisSection.Landlordwillberesponsibleforplumbingandsewagefacilitieswithinthebuildingorunderthefloorslabincludingfreeflowuptothemainsewerline,utilityfacilities,exteriorutilityfacilities,andexteriorelectricalequipmentservingthePremises.Additionally,Landlordwillcommittopaintingtheexteriorportionofthebuildinginfiscalyear2015,andreplacementoftheasphaltpavementthathassettledbetweenthe790and800buildings,andsettledpavementintheparkinglotsharedbythe790and800buildings,andtorepairingtheroofleaksandinstallationofanewbuildingheatingsystem.9.b.RemovalofSnow/Floodwater/Mud:TenantshallberesponsibleforremovalfromthePremises,allsnowand/orfloodwatersormuddeposited,withthedispositionthereoftobeaccomplishedinsuchamannersoastonotinterferewithorincreasethemaintenanceactivitiesofLandlorduponthepublicareasoftheAirport.9.c.Maintenance,RepairandMarkingofPavement:Tenantshallberesponsiblefor,andshallperform,themaintenance,repairandmarking(painting)ofpavementsurroundingthebuildingswithinandonthePremises.Suchmaintenanceandrepairshallinclude,asaminimum,crackfilling,weedcontrol,slurrysealandthereplacementofunserviceableconcreteorasphaltpavements,asnecessary.TothedegreetheconcreteandasphaltpavementsarebroughttoFAAstandardsatanytimeduringtheTermofthisLease,Tenantshallmaintaintheconcreteandasphaltpavementsinsuchcondition.LEASEAGREEMENT10cityofRentontoRainierFlightservice,LLCAGENDA ITEM # 2.
LAG15-9.d.RightofInspection:TenantwillallowLandlordorLandlord’sagent,freeaccessatallreasonabletimestothePremisesforthepurposeofinspection,orformakingrepairs,additionsoralterationstothePremises,oranypropertyownedbyorunderthecontrolofLandlord.Landlordshallprovideten(10)days’advancenoticeofanysuchinspectionandusereasonableeffortsnottointerferewithTenant’suseofthePremisesduringanysuchinspection.9.e.LandlordMayPerformMaintenance:IfTenantfailstoperformTenantsobligationsunderthissection,Landlordmayatitsoption(butshallnotberequiredto)enterthePremises,afterthirty(30)days’priorwrittennoticetoTenant,exceptintheeventofanemergencywhennonoticeshallberequired,andputthesameingoodorder,conditionandrepair,andthecostthereoftogetherwithinterestthereonattherateoftwelve(12%)percentperannumshallbecomedueandpayableasadditionalrentaltoLandlordtogetherwithTenantsnextinstallmentofRent.10.ALTERATIONS:10.a.ProtectionfromLiens:Beforecommencinganyworkrelatingtoalterations,additionsandimprovementsaffectingthePremises(“Work”),TenantshallnotifyLandlordinwritingoftheexpecteddateofcommencementoftheWork.Tenantshallpay,orcausetobepaid,allcostsoflabor,servicesand/ormaterialssuppliedinconnectionwithanyWork.TenantshallkeepthePremisesfreeandclearofallmechanics’materialmen’sliensoranyotherliensresultingfromanyWork.Tenantshallhavetherighttocontestthecorrectnessorvalidityofanysuchlienif,immediatelyondemandbyLandlord,itprocuresandrecordsalienreleasebondissuedbyaresponsiblecorporatesuretyinanamountsufficienttosatisfystatutoryrequirementsthereforintheStateofWashington.Tenantshallpromptlypayorcausetobepaidallsumsawardedtotheclaimantonitssuit,and,inanyevent,beforeanyexecutionisissuedwithrespecttoanyjudgmentobtainedbytheclaimantinitsuitorbeforesuchjudgmentbecomesalienonthePremises,whicheverisearlier.IfTenantshallbeindefaultunderthisSection,byfailingtoprovidesecurityfororsatisfactionofanymechanic’sorotherliens,thenLandlordmay,atitsoption,inadditiontoanyotherrightsorremediesitmayhave,dischargesaidlienby(i)payingtheclaimantanamountsufficienttosettleanddischargetheclaim,(ii)procuringandrecordingalienreleasebond,or(iii)takingsuchotheractionasLandlordshalldeemnecessaryoradvisable,and,inanysuchevent,TenantshallpayasAdditionalRent,onLandlord’sdemand,allreasonablecosts(includingreasonableattorneyfees)incurredbyLandlordinsettlinganddischargingsuchlientogetherwithinterestthereonattherateoftwelve(12%)percentperyearfromthedateofLandlord’spaymentofsaidcosts.Landlord’spaymentofsuchcostsshallnotwaiveanydefaultofTenantunderthisSection.10.b.Bond:AtanytimeTenanteitherdesirestoorisrequiredtomakeanyrepairs,alterations,additions,improvementsorutilityinstallationthereon,orotherwise,LandlordmayatitssoleoptionrequireTenant,atTenant’ssolecostandexpense,toobtainandprovidetoLandlordalienandcompletionbondinanamountequaltooneandone-half(1-1/2)timestheLEASEAGREEMENT11cityofRentontoRainierFlightservice,LLCAGENDA ITEM # 2.
LAG15-estimatedcostofsuchimprovements,toinsureLandlordagainstliabilityformechanicsandmaterialmensliensandtoinsurecompletionofthework.1D.c.LandlordMayMakeImprovements:TenantagreesthatLandlordmay,atitsoptionandatitsexpense,makerepairs,alterationsorimprovementswhichLandlordmaydeemnecessaryoradvisableforthepreservation,safetyorimprovementofutilitiesorAirportinfrastructureonthePremises,ifany.Landlordshallprovideten(10)days’advancenoticeofanysuchworkandusereasonableeffortstonotinterferewithTenant’suseofthePremisesduringanysuchwork.11.IMPROVEMENTS:AsfurtherconsiderationforthisLease,itisagreedthatupontheexpirationorsoonerterminationoftheTerm,allstructuresandanyandallimprovementsofanycharacterwhatsoeverinstalledonthePremises(exceptforanyfueltanksandrelatedstructuresownedbyTenant)shallbeandbecomethepropertyoftheLandlord,andtitletheretoshallautomaticallypasstoLandlordatsuchtime,andnoneofsuchimprovementsnoworhereafterplacedonthePremisesshallberemovedtherefromatanytimewithoutLandlord’spriorwrittenconsent.DuringtheTerm,TenantshallholdtitletoallimprovementsplacedbyTenantonthePremises.TenantcovenantsandagreesthatTenantwillpayandsatisfyinfullalloutstandingliens,orotherdebts,affectingorencumberingsuchimprovementsbeforetransferofownershipofsuchimprovementstoLandlordupontheexpirationorsoonerterminationoftheTerm.Alternatively,Landlordmay,atitsoption,requireTenant,upontheexpirationorsoonerterminationoftheTerm,ifany,toremoveanyandallimprovementsandstructuresinstalledbyTenantfromthePremisesandrepairanydamagecausedthereby,atTenant’sexpense.12.EXEMPTIONOFLANDLORDFROMLIABILITY.LandlordorLandlord’sagentsshallnotbeliableforinjurytopersonsortoTenant’sbusinessorlossofincometherefromorfordamagewhichmaybesustainedbytheperson,goods,wares,merchandiseorpropertyofTenant,itsauthorizedrepresentatives,oranyotherpersoninoraboutthePremises,causedbyorresultingfrom(a)fire,electricity,gas,waterorrainwhichmayleakorflowfromorintoanypartofthePremises,(b)anydefectinorthemaintenanceoruseofthePremises,oranyimprovements,fixturesandappurtenancesthereon,(c)thePremisesoranyimprovements,fixturesandappurtenancesthereonbecomingoutofrepair,(d)thebreakage,leakage,obstructionorotherdefectsofthepipes,sprinklers,wires,appliances,plumbing,heating,ventilatingorairconditioningorlightingfixturesofthePremises,(e)floodingoftheCedarRiverorotherbodyofwater,orfromanyothersourcewhatsoever,whetherwithinorwithoutthePremises;or(f)anyactoromissionofanyothertenantoroccupantofthebuildinginwhichthePremisesarelocated,ortheiragents,servants,employees,orinvitees,provided)thattheforegoingexemptionshallnotapplytolossestotheextentcausedbyLandlord’soritsagents’,contractors’,oremployees’negligenceorwillfulmisconduct.13.INDEMNITYANDHOLDHARMLESS:Tenantshalldefend,indemnifyandholdharmlessLandlordagainstanyandallclaimsarisingfrom(a)theconductandmanagementofLEASEAGREEMENT12cityofRentontoRainierFlightservice,LLCAGENDA ITEM # 2.
ZLAG15-orfromanyworkorthingwhatsoeverdoneinoraboutthePremisesortheimprovementsorequipmentthereonduringtheTerm,or(b)arisingfromanyactornegligenceorwillfulmisconductoftheTenantoranyofitsagents,contractors,patrons,customers,employees,orinvitees,or(c)arisingfromanyaccident,injury,ordamagewhatsoever,howevercaused,toanypersonorpersons,ortothepropertyofanyperson,persons,corporationorotherentityoccurringduringtheTermin,on,oraboutthePremises,andfromandagainstallcosts,attorney’sfees,expenses,andliabilitiesincurredinorfromanysuchclaimsoranyactionorproceedingbroughtagainsttheLandlordbyreasonofanysuchclaim,excepttotheextentcausedbythesolenegligenceofLandlord,itsagents,contractors,employees,oritsauthorizedrepresentatives.Notwithstandingtheforegoing,Tenant’sindemnityshallnotapplytoclaimsarisingfromaviationactivitiesofitspatrons,customers,subtenants,orinvitees.Tenant,onnoticefromLandlord,shallresistordefendsuchactionorproceedingforthwithwithcounselreasonablysatisfactoryto,andapprovedby,Landlord.Landlordshallindemnify,defend,andholdTenantharmlessfromandagainstanyandallclaims,losses,damages,costs,attorney’sfees,expenses,andliabilitiesarisingfromthenegligenceorwillfulmisconductofLandlordoranyofitsagents,contractors,employees,orauthorizedrepresentatives.OnnoticefromTenant,Landlord,atLandlord’sexpense,shalldefendanysuchactionorproceedingforthwith.TheindemnityinthisSectionshallnotapplytoHazardousSubstances,whichisaddressedelsewhereinthisLease.14.ASSIGNMENT&SUBLETtING:14.a,Assignment/Subletting:TenantshallnotvoluntarilyassignorencumberitsinterestinthisLeaseorinthePremises,orsubleaseanypartorallofthePremises,withoutLandlord’spriorwrittenconsent,whichconsentshallnotbeunreasonablywithheld,conditioned,ordelayed.Anyassignment,encumbranceorsublease,whetherbyoperationoflaworotherwise,withoutLandlord’sconsentshallbevoidandshallconstituteadefaultbyTenantunderthisLease.NoconsenttoanyassignmentorsubleaseshallconstituteawaiveroftheprovisionsofthisSectionandnootherorsubsequentassignmentorsubleaseshallbemadewithoutLandlord’spriorwrittenconsent.Beforeanassignmentorsub-leasewillbeapproved,theproposedassigneeorsub-tenantmustcomplywithprovisionsofthethencurrentAirportLeasingPolicies,including,butnotlimitedtothe“AnalysisofTenant’sFinancialCapacity,”independentofTenant’scomplianceorFinancialCapacity.Consentshallnotbeunreasonablywithheld,conditioned,ordelayed.Inthecaseofanassignmentofthefullleaseholdinterestand/orcompletesaleofthestockorotherinterestsintheentityconstitutingTenantandconcomitanttransferofownershipofsaidentity,(a)inthecaseofanassignment,theproposedassigneeshalldelivertoLandlordawritteninstrumentdulyexecutedbytheproposedassigneestatingthatithasexaminedthisLeaseandagreestoassume,beboundbyandperformallofTenant’sobligationsunderthisLeaseaccruingafterthedateofsuchassignment,tothesameextentasifitweretheoriginalTenant,and(b)inthecaseofastocktransfer,TransfereeshalldeliverawrittenacknowledgmentthatitshallcontinuetobeboundbyalltheprovisionsofthisLeaseaftertheLEASEAGREEMENT13cityofRentontoRainierFlightservice,LLCAGENDA ITEM # 2.
LAG15-transfer.Exceptinthecaseofanassignmentofthefullleaseholdinterest,anyassignmentpermittedhereinwillnotrelieveTenantofitsdutytoperformalltheobligationssetoutinthisLeaseoraddendahereto.InnoeventwilltheassignmentofthefullleaseholdinterestorthecompletesaleofthestockorotherinterestsintheentityconstitutingTenantandconcomitanttransferofownershipofsaidentitycauseanextensionoftheTermofthisLease.14.b.ConditionstoAssignmentorSublease:TenantagreesthatanyinstrumentbywhichTenantassignsorsubletsalloranyportionofthePremisesshall(i)incorporatethisLeasebyreference,(H)expresslyprovidethattheassigneeorsubtenantmaynotfurtherassignorsublettheassignedorsubletspacewithoutLandlord’spriorwrittenconsent(whichconsentshallnot)subjecttoLandlord’srightsunderthisSection,beunreasonablywithheld,conditioned,ordelayed),(iii)acknowledgethattheassigneeorsubtenantwillnotviolatetheprovisionsofthisLease,and(iv)inthecaseofanyassignment,acknowledgethatLandlordmayenforcetheprovisionsofthisLeasedirectlyagainstsuchassignee.IfthisLeaseisassigned,whetherornotinviolationofthetermsandprovisionsofthisLease,LandlordmaycollectRentfromtheassignee.AcceptanceofrentbytheLandlordshallnotbeawaiverofanyofLandlord’sremediesagainstTenantforviolationofprovisionsofthisLease,AsubtenantmaycureTenant’sdefault.Ineitherevent,LandlordshallapplytheamountcollectedfromtheassigneeorsubtenanttoTenant’sobligationtopayRentunderthisLease.14.c.NoReleaseofTenant’sLiability:NeitheranassignmentorsublettingnorthecollectionofRentbyLandlordfromanypersonotherthanTenant,northeapplicationofanysuchRentasprovidedinthisSectionshallbedeemedawaiverofanyoftheprovisionsofthisSectionorreleaseTenantfromitsobligationtocomplywiththetermsandprovisionsofthisLeaseandTenantshallremainfullyandprimarilyliableforallofTenant’sobligationsunderthisLease,includingtheobligationtopayRentunderthisLease,unlessLandlordotherwiseagreesinwriting.Notwithstandingtheforegoing,intheeventthatLandlord’sconsenttoassignmentisobtainedforacompleteassignmentandAssigneeagreesinwritingtoassumealloftheobligationsandliabilitiesofthisLeaseaccruingaftersuchassignment,TenantshallberelievedofallliabilityarisingfromthisLeaseandarisingoutofanyact,occurrenceoromissionoccurringafterLandlord’sconsentisobtained.TotheextentthatanyclaimforwhichindemnificationoftheLandlord(includingwithrespecttoHazardousSubstances)arisesafterTenant’scompleteassignmentforconductpredatingsaidassignment,theTenantshallnotberelievedofobligationsorliabilityarisingfromthisLease.14.d.Documentation:NopermittedsublettingbyTenantshallbeeffectiveuntiltherehasbeendeliveredtoLandlordacopyofthesubleaseandanexecutedOperatingPermitandAgreementinwhichthesubtenantagreesnottoviolateandtoactinconformitywiththetermsandprovisionsofthisLease;providedthatnoOperatingPermitshallberequiredforthesublettingofhangarortie-downspaceforaircraftstoragepurposes.NopermittedassignmentshallbeeffectiveunlessanduntiltherehasbeendeliveredtoLandlordacounterpartoftheLEASEAGREEMENT14CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-assignmentinwhichtheassigneeassumesallofTenant’sobligationsunderthisLeasearisingonorafterthedateoftheassignment.14.e.NoMerger:WithoutlimitinganyoftheprovisionsofthisSection,ifTenanthasenteredintoanysubleasesofanyportionofthePremises,thevoluntaryorothersurrenderofthisLeasebyTenant,oramutualcancellationbylandordandTenant,shallnotworkamergerandshallterminatealloranyexistingsubleasesorsubtenancies.15.DEFAULTANDREMEDIES:15.a.Default:TheoccurrenceofanyofthefollowingshallconstituteadefaultbyTenantunderthisLease:15.a.(1).FailuretoPayRent:FailuretopayRentwhendue,ifthefailurecontinuesforaperiodofthree(3)businessdaysafternoticeofsuchdefaulthasbeengivenbyLandlordtoTenant.15.a.(2).FailuretoComplywithAirportRegulationsandMinimumStandards:FailuretocomplywiththeAirportRegulationsandMinimumStandards,ifthefailurecontinuesforaperiodoftwenty-four(24)hoursafternoticeofsuchdefaultisgivenbyLandlordtoTenant.Ifthefailuretocomplycannotreasonablybecuredwithintwenty-four(24)hours,thenTenantshallnotbeindefaultunderthisLeaseifTenantcommencestocurethefailuretocomplywithintwenty-four(24)hoursanddiligentlyandingoodfaithcontinuestocurethefailuretocomply.However,saidinabilitytocurewithintwenty-four(24)hours,diligenceandgoodfaithnotwithstanding,cannotbebasedonfinancialincapacity.15.a.(3).FailuretoPerformorCure:FailuretoperformanyotherprovisionofthisLease,ifthefailuretoperformisnotcuredwithinthirty(30)daysafternoticeofsuchdefaulthasbeengivenbyLandlordtoTenant.Ifthedefaultcannotreasonablybecuredwithinthirty(30)days,thenTenantshallnotbeindefaultunderthisLeaseifTenantcommencestocurethedefaultwithinthirty(30)daysoftheLandlord’snoticeanddiligentlyandingoodfaithcontinuestocurethedefault.15.a.(4).AppointmentofTrusteeorReceiver:TheappointmentofatrusteeorreceivertotakepossessionofsubstantiallyalloftheTenant’sassetslocatedatthePremisesorofTenant’sinterestinthisLease,wherepossessionisnotrestoredtoTenantwithinsixty(50)days;ortheattachment,executionorotherjudicialseizureofsubstantiallyallofTenant’sassetslocatedatthePremisesorofTenant’sinterestinthisLease,wheresuchseizureisnotdischargedwithinsixty(50)days.15.a.(5).FailuretoComplyWithLaws:ItshallbeadefaultofthisLeaseiftheTenantfailstocomplywithanyofthestatutes,ordinances,rules,orders,regulations,andrequirementsofthefederal,state,and/orcitygovernments,oranytermsofthisLease.LEASEAGREEMENT15cityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-15.b.AdditionalSecurity:IfTenantisindefaultunderthisLease,andsuchdefaultremainsuncuredformorethanthree(3)businessdaysafterLandlordgivesTenantnoticeofsuchdefault,thenLandlord,atLandlord’soption,mayinadditiontootherremedies,requireTenanttoprovideadequateassuranceoffutureperformanceofallofTenant’sobligationsunderthisLeaseintheformofadepositinescrow,aguaranteebyathirdpartyacceptabletoLandlord,asuretybond,aletterofcreditorothersecurityacceptableto,andapprovedby,Landlord.IfTenantfailstoprovidesuchadequateassurancewithintwenty(20)daysofreceiptofarequestbyLandlordforsuchadequateassurance,suchfailureshallconstituteamaterialbreachofthisLeaseandLandlordmay,atitsoption,terminatethisLease.15.c.Remedies:IfTenantcommitsadefault,thenfollowingtheexpirationofthenoticeandcureperiodssetforthinSection15.a.above,Landlordshallhavethefollowingalternativeremedies,whichareinadditiontoanyremediesnoworlaterallowedbylaw,andLandlordshallusereasonableeffortstomitigateitsdamages:15.c.(1).MaintainLeaseinForce:TomaintainthisLeaseinfullforceandeffectandrecovertheRentandothermonetarychargesastheybecomedue,withoutterminatingTenantsrighttopossession,irrespectiveofwhetherTenantshallhaveabandonedthePremises.IfLandlordelectstonottermintetheLease,Landlordshalthavetherighttoattempttore-letthePremisesatsuchrentanduponsuchconditionsandforsuchaterm,andtoperformallactsnecessarytomaintainorpreservethePremisesasLandlorddeemsreasonableandnecessary,withoutbeingdeemedtohaveelectedtoterminatetheLease,includingremovalofallpersonsandpropertyfromthePremises;suchpropertymayberemovedandstoredinapublicwarehouseorelsewhereatthecostofandontheaccountofTenant.Intheeventanysuchre-lettingoccurs,thisLeaseshallterminateautomaticallyuponthenewTenanttakingpossessionofthePremises.NotwithstandingthatLandlordfailstoelecttoterminatetheLeaseinitially,LandlordatanytimeduringtheTermmayelecttoterminatethisLeasebyvirtueofsuchpreviousdefaultofTenantsolongasTenantremainsindefaultunderthisLease.15.c.(2).TerminateLease:ToterminateTenant’srighttopossessionbyanylawfulmeans,inwhichcasethisLeaseshallterminateandTenantshallimmediatelysurrenderpossessionofthePremisestoLandlord.InsucheventLandlordshallbeentitledtorecoverfromTenantalldamagesincurredbyLandlordbyreasonofTenant’sdefaultincludingwithoutlimitationthereto,thefollowing:(i)anyandallunpaidRentwhichhadbeenearnedatthetimeofsuchtermination,plus(ii)anyandallRentwhichwouldhavebeenearnedafterterminationuntilthetimeofoccupancyofthePremisesbyanewtenantfollowingtherelettingofthePremises,plus(Hi)anyotheramountnecessarytocompensateLandlordforallthedetrimentproximatelycausedbyTenant’sfailuretoperformitsobligationsunderthisLeaseorwhichintheordinarycourseofbusinesswouldbelikelytoresulttherefrom,includingwithoutlimitation,in(A)retakingpossessionofthePremises,includingreasonableattorneyfeestherefor,(B)maintainingorpreservingthePremisesaftersuchdefault,(C)preparingthePremisesforre-lettingtoanewtenant,includingrepairsornecessaryalterationstotheLEASEAGREEMENT16CityofRentontoRainierFlightservice,LLCAGENDA ITEM # 2.
LAGIS-______Premisesforsuchre-letting,(D)leasingcommissionsincidenttore-lettingtoanewtenant,and(E)anyothercostsnecessaryorappropriatetore-letthePremises;plus(iv)atLandlordselection,suchotheramountsinadditiontoorinlieuoftheforegoingasmaybepermittedfromtimetotimebyapplicablestatelaw.TheamountsreferencedinthisSectionincludeinterestat12%perannum.16.BINDINGAGREEMENT:Subjecttotherestrictionuponassignmentorsublettingassetforthherein,alloftheterms,conditions,andprovisionsofthisLeaseshallbebindingupontheparties,theirsuccessorsandassigns,andinthecaseofaTenantwhoisanaturalperson,hisorherpersonalrepresentativeandheirs.17.CONDEMNATION:IfthewholeoranysubstantialpartofthePremisesshallbecondemnedortakenbyLandlordoranycounty,state,orfederalauthorityforanypurpose,thentheTermshallceaseastothepartsotakenfromthedaythepossessionofthatpartshallberequiredforanypurpose,andtherentshallbepaiduptothatdate.FromthatdaytheTenantshallhavetherighttoeithercancelthisleaseanddeclarethesamenullandvoid,ortocontinueinthepossessionoftheremainderofthesameunderthetermshereinprovided,exceptthattherentshallbereducedinproportiontotheamountofthePremisestakenforsuchpublicpurposes.AlldamagesawardedforsuchtakingforanypublicpurposeshallbelongtoandbethepropertyoftheLandlord,whethersuchdamageshallbeawardedascompensationforthediminutioninvaluetotheleasehold,ortothefeeofthePremiseshereinleased.DamagesawardedforthetakingofTenant’simprovementslocatedonthePremisesshallbelongtoandbeawardedtoTenant.18.SURRENDEROFPREMISES:TenantshallquitandsurrenderthePremisesattheendoftheTerminaconditionasgoodasthereasonableusethereofwouldpermit,normalwearandtearexcepted.Alterations,additionsorimprovementswhichmaybemadebyeitherofthepartiesheretoonthePremises,exceptmovableofficefurnitureortradefixturesputinattheexpenseofTenant,shallbeandremainthepropertyoftheLandlordandshallremainonandbesurrenderedwiththePremisesasapartthereofattheterminationofthisLeasewithouthindrance,molestation,orinjury.TenantmayremovefromthePremisesmovableofficefurnitureortradefixturesputinattheexpenseofTenant.Tenantshall,atitssoleexpense,properlyandpromptlyrepairtoLandlord’sreasonablesatisfactionanydamagetothePremisesoccasionedbyTenant’susethereof,orbytheremovalofTenant’smovableofficefurnitureortradefixturesandequipment,whichrepairshallincludethepatchingandfillingofholesandrepairofstructuraldamage.19.INSURANCE:19.a.PersonalProijerty:Tenant,atitsexpense,shallmaintaininforceduringtheTermapolicyofspecialform—causesoflossorallriskpropertyinsuranceonallofTenant’salterations,improvements,tradefixtures,furnitureandotherpersonalpropertyin,onoraboutthePremises,inanamountequaltoatleasttheirfullreplacementcost.AnyproceedsLEASEAGREEMENT17CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-ofanysuchpolicyavailabletoTenantshallbeusedbyTenantfortherestorationofTenant’salterations,improvementsandtradefixturesandthereplacementofTenant’sfurnitureandotherpersonalproperty.AnyportionofsuchproceedsnotusedforsuchrestorationshallbelongtoTenant.19.b.LiabilityInsurance.Tenant,atitsexpense,shallmaintaininforceduringtheTermthefollowingtypesofinsurance(orequivalents):apolicyofcommercialgeneralliabliftyinsurance(includingpremisesliability),withthefollowinglimits:$1,000,000peroccurrence,$2,000,000annualaggregate.LandlordshallbenamedasanadditionalinsuredonTenant’sliabilityinsurancesolelywithrespecttotheoperationsofthenamedinsured(i.e.,Tenant)andthatcoveragebeingprimaryandnon-contributorywithanyotherpolicy(ies)carriedby,oravailableto,theLandlord.TheTenantshallprovidetheLandlordwithwrittennoticeofanypolicycancellation,withintwobusinessdaysoftheirreceiptofsuchnotice.lYc.InsurancePolicies:InsurancerequiredhereundershallbewrittenbyacompanyorcompaniesacceptabletoLandlord.Landlordreservestherighttoestablishand,fromtime-to-time,toincreaseminimuminsurancecoverageamounts.Insurancerequiredhereinshallprovidecoverageonanoccurrencebasis,notaclaims-madebasis.NoticeofincreasedminimuminsurancecoverageamountsshallbesenttotheTenantatleastninety(90)dayspriortotheannualrenewaldateoftheTenant’sinsurance.PriortopossessiontheTenantshalldelivertoLandlorddocuments,inaformacceptabletoLandlord,evidencingtheexistenceandamountsofsuchinsurance.Tenantshall,priortotheexpirationofsuchpolicies,furnishLandlordwithevidenceofrenewalotsuchinsurance,inaformacceptabletoLandlord.Tenantshallnotdoorpermittobedoneanythingwhichshallinvalidatetheinsurancepoliciesreferredtoabove.Tenantshallforthwith,uponLandlord’sdemand,reimburseLandlordforanyadditionalpremiumsforinsurancecarriedbyLandlordattributabletoanyactoromissionoroperationofTenantcausingsuchincreaseinthecostofinsurance.IfTenantshallfailtoprocureandmaintainsuchinsurance,thenLandlordmay,butshallnotberequiredto,procureandmaintainthesame,andTenantshallpromptlyreimburseLandlordforthepremiumsandothercostspaidorincurredbyLandlordtoprocureandmaintainsuchinsurance.FailureonthepartoftheTenanttomaintaintheinsuranceasrequiredshallconstituteamaterialbreachofthelease,uponwhichtheLandlordmay,aftergivingfivebusinessdaysnoticetotheTenanttocorrectthebreach,terminatetheLeaseor,atitsdiscretion,procureorrenewsuchinsuranceandpayanyandallpremiumsinconnectiontherewith,withanysumssoexpendedtoberepaidtotheLandlordondemand.19.d.WaiverofSubrogation:TenantandLandlordeachwaivesanyandallrightsofrecoveryagainsttheother,oragainsttheofficers,employees,agentsandrepresentativesoftheother,forlossofordamagetosuchwaivingpartyoritspropertyorthepropertyofothersunderitscontrol,wheresuchlossordamageisinsuredagainstunderanyinsurancepolicyinforceatthetimeofsuchlossordamage.Tenantshall,uponobtainingthepoliciesofinsuranceLEASEAGREEMENT18CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-requiredhereunder,givenoticetotheinsurancecarriersthattheforegoingmutualwaiverofsubrogationiscontainedinthisLease.20.TAXES:TenantshallberesponsibleforthepaymentofanyandalltaxesandassessmentsuponanypropertyoruseacquiredunderthisLeaseanduponanyalterationsorimprovementmadebyTenanttothePremises.21.NOWAIVER:ItisfurthercovenantedandagreedbetweenthepartiesheretothatnowaiverbyLandlordofabreachbyTenantofanycovenant,agreement,stipulation,orconditionofthisLeaseshallbeconstruedtobeawaiverofanysucceedingbreachofthesamecovenant,agreement,stipulation,orcondition,orabreachofanyothercovenantagreement,stipulation,orcondition.TheacceptancebytheLandlordofrentafteranybreachbytheTenantofanycovenantorconditionbyTenanttobeperformedorobservedshallbeconstruedtobepaymentfortheuseandoccupationofthePremisesandshallnotwaiveanysuchbreachoranyrightofforfeiturearisingtherefrom.22.NOTICES:AllnoticesorrequestsrequiredorpermittedunderthisLeaseshallbeinwriting;shallbepersonallydelivered,deliveredbyareputableexpressdeliveryservicesuchasFederalExpressorDHL,orsentbycertifiedmail,returnreceiptrequested,postageprepaid,andshallbedeemeddeliveredonreceiptorrefusal.AllnoticesorrequeststoLandlordshallbesenttoLandlordatLandlord’saddresssetforthbelowandallnoticesorrequeststoTenantshallbesenttoTenantatTenant’saddresssetforthbelow:Landlord’sAddress:AirportAdministrationOfficeAttn:AirportManager616WestPerimeterRoad,UnitARenton,Washington98057Tenant’sAddress:RainierFlightService,LLC800WestPerimeterRoadRenton,WA98057Eitherpartymaychangetheaddresstowhichnoticesshallbesentbywrittennoticetotheotherparty.23.DISCRIMINATIONPROHIBITED:23.a.DiscriminationProhibited:Tenantcovenantsandagreesnottodiscriminateagainstanypersonorclassofpersonsbyreasonofrace,color,creed,sexoçnationalorigin,oranyotherclassofpersonprotectedbyfederalorstatelawortheRentonCityCode,intheuseofanyofitsfacilitiesprovidedforthepublicintheAirport.Tenantfurtheragreestofurnishservicesonafair,equalandnotunjustlydiscriminatorybasistoallusersthereof,andtochargeLEASEAGREEMENT19CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-onafair,reasonableandnotunjustlydiscriminatorybasisforeachunitofservice;providedthatTenantmaymakereasonableandnon-discriminatorydiscounts,rebates,orothersimilartypesofpricereductionstovolumepurchasers.23.b.MinorityBusinessEnterprisePolicy:ItisthepolicyoftheDepartmentofTransportationthatminoritybusinessenterprisesasdefinedin49C.F.R.Part23shallhavethemaximumopportunitytoparticipateintheperformanceofleasesasdefinedin49C.F.R.23.5.Consequently,thisLeaseissubjectto49C.F.R.Part23,asapplicable.Nopersonshallbeexcludedfromparticipationin,deniedthebenefitsoforotherwisediscriminatedagainstinconnectionwiththeawardandperformanceofanycontract,includingleasescoveredby49C.F.R.Part23,onthegroundsofrace,color,nationaloriginorsex.23.c.ApplicationtoSubleases:SubjecttotheprovisionsofSection14ofthisLease,TenantagreesthatitwillincludetheaboveclauseinallassignmentsofthisLeaseorsub-leases,andcauseitsassignee(s)andsublessee(s)tosimilarlyincludetheaboveclauseinfurtherassignmentsorsubleasesofthisLease.24.FORCEMAJEURE:Intheeventthateitherpartyheretoshallbedelayedorhinderedinorpreventedfromtheperformanceofanyactrequiredhereunderbyreasonofstrikes,lockouts,labortroubles,inabilitytoprocurematerials,failureofpower,restrictivegovernmentallawsorregulations,riots,insurrections,war,orotherreasonoflikenaturenotthefaultofthepartydelayedinperformingworkordoingactsrequiredunderthetermsofthisLease,thenperformanceofsuchactshallbeextendedforaperiodequivalenttotheperiodofsuchdelay.TheprovisionsofthisSectionshallnot,however,operatetoexcuseTenantfromthepromptpaymentofrent,oranyotherpaymentrequiredbythetermsofthisLease,tobemadebyTenant.25.TRANSFEROFPREMISESBYLANDLORD:Intheeventofanysale,conveyance,transferorassignmentbyLandlordofitsinterestinthePremises,LandlordshallberelievedofallliabilityarisingfromthisLeaseandarisingoutofanyact,occurrenceoromissionoccurringaftertheconsummationofsuchsale,conveyance,transferorassignment,providedthattheLandlord’stransfereeshallhaveassumedandagreedtocarryoutalloftheobligationsoftheLandlordunderthisLease.26.ATTORNEYS’FEESANDCOSTS;COLLECTIONCOSTS:Ifeitherpartybringsanyactionforreliefagainsttheotherparty,declaratoryorotherwise,arisingoutofthisLease,includinganyactionbyLandlordfortherecoveryofRentorpossessionofthePremises,theprevailingpartyshallbeentitledtoreasonableattorneys’feesandcostsoflitigationasestablishedbythecourt.Ifthematterisnotlitigatedorresolvedthroughalawsuit,thenanyattorneys’feesforcollectionofpast-duerentorenforcementofanyrightofLandlordordutyofTenanthereundershallentitleLandlordtorecover,inadditiontoanylatepaymentcharge,anycostsofcollectionorenforcement,includingreasonableattorney’sfees.ForthepurposeLEASEAGREEMENT20cityofRentontoRainierFlightService,LLcAGENDA ITEM # 2.
LAG15-ofthisSection26,attorney’sfeesshallincludeareasonablerateforattorney’semployedbytheCity.27.EMERGENCYRESPONSE:TenantmustprovidetotheAirportManagerreasonableaccessandresponseintimesofemergencyorurgency.TheTenantiswhollyresponsibletokeepanup-to-datelistingofaircrafttypes,identification,andownersonfileandattheAirportManager’soffice.28.DEFINITIDNS:AsusedinthisLease,thefollowingwordsandphrases,whetherornotcapitalized,shallhavethefollowingmeanings:“AdditionalRent”meansanychargesormonetarysumstobepaidbyTenanttoLandlordundertheprovisionsofthisLeaseotherthanMinimumMonthlyRent.“Authorizedrepresentatives”meansanyofficer,agent,employee,independentcontractororinviteeofeitherparty.“EnvironmentalLawsandRequirements”meansanyandallfederal,state,locallaws,statutes,ordinances,rules,regulationsand/orcommonlawrelatingtoenvironmentalprotection,contamination,therelease,generation,production,transport,treatment,processing,use,disposal,orstorageofHazardousSubstances,workerhealthorsafetyorindustrialhygiene,andtheregulationspromulgatedbyregulatoryagenciespursuanttotheselaws,andanyapplicablefederal,state,and/orlocalregulatoryagency-initiatedorders,requirements,obligations,directives,notices,approvals,licenses,orpermits.“Expiration”meansthecomingtoanendofthetimespecifiedintheLeaseasitsduration,includinganyextensionoftheTerm.“HazardousSubstances”meansanyandallmaterial,waste,chemical,compound,substance,mixtureorbyproductthatisidentified,defined,designated,listed,restrictedorotherwiseregulatedunderanyEnvironmentalLawsandRequirementsasa“hazardousconstituent,”“hazardoussubstance,”“hazardousmaterial,”“extremelyhazardousmaterial,”“hazardouswaste,”“acutelyhazardouswaste,”“hazardouswasteconstituent,”“infectiouswaste,”“medicalwaste,”“biohazardouswaste,”“extremelyhazardouswaste,”“pollutant,”“toxicpollutant”or“contaminant.”Thetern,“HazardousSubstances”includes,withoutlimitation,anymaterialorsubstancewhichis(i)hexavalentchromium;(ii)pentachlorophenol;(iii)volatileorganiccompounds;(iv)petroleum;(v)asbestos;(vi)designatedasa“hazardoussubstance”pursuanttoSection311oftheFederalWaterPollutionControlAct,33U.S.C.§1251etseq.(33U.S.C.§1321);(vii)definedasa“hazardouswaste”pursuanttoSection1004oftheFederalResourceConservationandRecoveryAct,42U.S.C.§6901etseq.(42U.S.C.§6903);(viii)definedasa“hazardoussubstance”pursuanttoSection101oftheComprehensiveEnvironmentalResponse,CompensationandLiabilityActof1980,asamended,42U.S.C.§LEASEAGREEMENT21CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-.9601etseq.(42U.S.C.§9601);or(ix)designatedasa“hazardoussubstance”pursuanttotheWashingtonModelToxicsControlAct,RCW70.1OSD,010etseq.“Parties”meansLandlordandTenant.“Person”meansoneormorehumanbeings,orlegalentitiesorotherartificialpersons,includingwithoutlimitation,partnerships,corporations,trusts,estates,associationsandanycombinationofhumanbeingsandlegalentities.“Rent”meansMinimumMonthlyRent,asadjustedfromtimetotimeunderthisLease,andAdditionalRent.29.GENERALPROVISIONS:29.a.EntireAgreement:ThisLeasesetsforththeentireagreementofthepartiesastothesubjectmatterhereofandsupersedesallpriordiscussionsandunderstandingsbetweenthem.ThisLeasemaynotbeamendedorrescindedinanymannerexceptbyaninstrumentinwritingsignedbyadulyauthorizedofficerorrepresentativeofeachpartyhereto.29.b.GoverningLaw:ThisLeaseshallbegovernedby,andconstruedandenforcedinaccordancewith,thelawsoftheStateofWashington.29.c.Severability:ShouldanyoftheprovisionsofthisLeasebefoundtobeinvalid,illegalorunenforceablebyanycourtofcompetentjurisdiction,suchprovisionshallbestrickenandtheremainderofthisLeaseshallnonethelessremaininfullforceandeffectunlessstrikingsuchprovisionshallmateriallyaltertheintentionoftheparties.29.d.JurisdictionandVenue:IntheeventanyactionisbroughttoenforceanyoftheprovisionsofthisLease,thepartiesagreetobesubjecttoexclusiveinpersonamjurisdictionintheSuperiorCourtoftheStateofWashingtoninandfortheCountyofKingorintheUnitedStatesDistrictCourtfortheWesternDistrictofWashington.29.e.Waiver:NowaiverofanyrightunderthisLeaseshallbeeffectiveunlesscontainedinawritingsignedbyadulyauthorizedofficerorrepresentativeofthepartysoughttobechargedwiththewaiverandnowaiverofanyrightarisingfromanybreachorfailuretoperformshallbedeemedtobeawaiverofanyfuturerightorofanyotherrightarisingunderthisLease.29.f.Captions:SectioncaptionscontainedinthisLeaseareincludedforconvenienceonlyandformnopartoftheagreementbetweentheparties.29.g.AssigneeasTenant:Theterm‘TenantshallbedeemedtoincludetheassigneewherethereisafullassignmentoftheLease.LEASEAGREEMENT22cityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-29,h.Effectiveness:ThisLeaseshallnotbebindingoreffectiveuntilproperlyexecutedanddeliveredbyLandlordandTenant.29.1.GenderandNumber:AsusedinthisLease,themasculineshallincludethefeminineandneuter,thefeminineshallincludethemasculineandneuter,theneutershallincludethemasculineandfeminine,thesingularshallincludethepluralandthepluralshallincludethesingular,asthecontextmayrequire.29.).TimeoftheEssence:TimeisoftheessenceintheperformanceofallcovenantsandconditionsinthisLeaseforwhichtimeisafactor.29.k.JointandSeveralLiability:IfTenantiscomposedofmorethanonepersonorentity,thentheobligationsofallsuchpersonsandentitiesunderthisLeaseshallbejointandseveral.29.1.NoRecordationWithoutConsentofLandlord:TenantshallnotrecordthisLeaseoranymemorandumofthisLeasewithoutLandlord’spriorwrittenconsent.29.m.CumulativeRemedies:Noremedyorelectionhereundershallbedeemedexclusive,butshall,whereverpossible,becumulativewithallotherremediesatlaworinequity.29.n.CorporateAuthority:IfTenantisacorporationorlimitedliabilitycompany,eachindividualexecutingthisLeaseonbehalfofsaidcorporationorlimitedliabilitycompanyrepresentsandwarrantsthatheisdulyauthorizedtoexecuteanddeliverthisLeaseonbehalfofsaidcorporationorlimitedliabilitycompanypursuanttodulyenactedresolutionsorotheractionofsuchcorporationorlimitedliabilitycompanyandthatthisLeaseisbindinguponsaidcorporationorlimitedliabilitycompanyinaccordancewithitsterms.LEASEAGREEMENT23CityofRentontoRainierFlightservice,LLCAGENDA ITEM # 2.
LAG15-TENANT:LANDLORD:RAINIERFLIGHTSERVICETHECITYOFRENTONaWashingtonLimitedLiabilityaWashingtonmunicipalcorporationcorporationfi)_____
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LAG15-STATEOFWASHINGTON55.COUNTYOFIcertifythatIknoworhavesatisfactoryevidencethat____
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LAG15-EXHIBITALeaseMapandLegalDescriptionLEASEAGREEMENT27CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
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LAG15-EXHIBITBAircraftLawsandRegulations,RCW47.68.250:PublicHighwaysandTransportation.LEASEAGREEMENT29CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-*FindYourLegislatorVisitingtheLegislatureAgendas.SchedulesandCalendars*BillInformation*LawsandAgencyPules•LegisfativeCommittees*LegislativeAgencies*LegislativeInformationCenter•E-rnalNOtifications{Lislserv)*CiVicEducation*HistoryoftheStateLegislatuieOutsidethaLogislaturi’Congress-theOtherWashingtonrvwWashingtonCourtsOFMFscalNoteWebsiteAccessaaAWasliinrj(ortt41&840cc.t7Rii251)r’>4768.25SRCW4768.250Registrationofaircraft.Everyaircraftshallberegisteredwiththedepartmentbreachcar,daryearinwhtlitheaircraftisoperatedotisbasedwithintilsstate.Afeeoflifteendollarsshallbechargedforeachsuchregistrationandeachannualrenewalthereof.Possessionoftheapprcpriateeffectriefederalce.’tificate,permit,rating,orticanserelatingtoownershipandairworthinessoftheaircraftandpaymentoftheexcisetaximposedbyTtIleP2RCWfortheprivilegeofusingtheaircraftwithinthisslateduringtheyearIcrwhichtheregistrationissought,andpaymentoftheregistrationteerequiredbythissectionshallbetheonlyrequisitesforregistrationofanaircraftunderthissection.Theregistrationfeeposedbythissectionshallbepayabletoandcollectedbythesecretary.TheteeforanycalendaryearmustbepaidduringthemonthofJanuary,andshallbecollectedbythesecretaryatthelimecithecc.lectionbyhimorhero’thesaidexcisetax.lIthesecretaryissatistedthattherequirenienisforregistrationoftheaircrafihaboonmet,heorsheshailtheieuponissuetotheowneroftheaircraftacertificateofregsrafontherelor.Thesecretaryshallpaytothestatetreasurertheregistrafonfeescofectedunderth5sect,on,whchregtratienteessiallbecredtedlottieaeronaaicsa000LnIinthetransportationfundIIshallnotbenecessaryfortheregistranttoprowdethesecretarywithoriginalsorcopiesoffederalcertificates,permits,ratings,orlicenses.Thesecretaryshallissuecertificatesofregistration,orsuchotherevidencesofregistrationorpaymentoffeesasheorshemaydeemproper,andinconnechiontherewithmayprescriberequirementsforthepossessionandexhibitionofsuchcertificatesorotherevidences.Thepro’4sicnsofthissectionshallrotapplyto:(I)Anaircraftowdbyandusedexclusivelyintheserviceofanygovernmentoranypolitcals’jbdsionthereof,inciuchgthegovernmentoftheUnitedStates,anystate,teriftory,orpcsses&on&theUntedStates,ortheOtcctofColumba,whichisnotengagedtncarryingpersonsorpropertytcrcommercialpurposes:LEASEAGREEMENT12)Anaircraftregisteredunderthelawsofaforeigncountry;(3)Anaircrahwhichisownedbyanonresidentandregisteredinanotherstate:PROVIDED,Thatifsaidaircraftshallremaininand/orbebasedinthisstaleforaperiodofninetydaysorlongeritshallnotbeexemptunderthissection;l.a)Anaircraftengagedprincpalyincamnrcialflyingconstitut.nganactofirlerslaleorforeigncommerce:(SIAnaircrahcwnadbythecommercialmanufacturerthereofwhilebeingoperatedfortestorexpermentalpjrposes.orforthepurposeoftrainingcrewsforpurchasersoftheaircraft;(6)Anaircraftbeingheldforsale,exchange,delivery,testordemonstrationpurposessolelyasstockintradeofanaircraftdealerlicensedunderTitlePCW;{7)Anaircraftbasedwithinthestatethatisinanunaiiorthycondition,isnotoperatedwithin(heregistrationperiod,andhasobtainedawrittenexemptionissuedbythesecretary.Thesecretaryshallbenotifiedwithinthirtydaysofanychangeinownershipoha30InsidetheLecjislnturri**B2Mft>T,hiz4’.C.F’ii’.r47n>snLt.47rn2cocliHelpCityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15--“0-—--—registeredaircraft.Therot&alhnshallcontaintheN,NC,NP,NL,orNXnumberattheaircraft,thetuBnameandaddressoftheferrerowner,andthelullnameandaddressofthenewowner.Forfailuretosonoti&lhesecretary,theregistrationofthataircraftmaybecanceledbythesecretary,subjecttoreinstatementuponapplicationandpaymentofareinstatementfeeoftondoNorsbythenewowner.AruncipaLtyorportdistrictthato.vns,operates.orteasesa”airporl,asdefnedinRCW47.68020.withtheintenttooperate,shallrequirefromanaircraftownerproofofaircraftregstratonasaconditionofteasingorsoi:ingtedownorhangarspaceforanaircraft.It’stheresponsibilityofthelesseeorpurchasertoregistertheaircraft.TheairportshaltworkwiththeaviationdivisiontoasstslInitseffortstoregisteraircraftbyprovidingInformationaboutbasedaircraftonanannualbasisasrequestedbythedivision,2O5,1t67ns.c9t:IS55clSOI1,s49c4el2947c6S25,R,iflS,.p.19496lO064-1O5.FornelyRcw.totaacJNotes:Effectivedate-.20030375:SeenotefollowingRCW4Zfl24fl.Severability--1937c220:Seeno:efollowingRCW47r,R.23Q.Aircraftdealers:Chapter1&20RCW.Definitionolterms:RCW142QUi2,4LaZQLEASEAGREEMENT31CityofRentontoRainierFlightService,LLCAGENDA ITEM # 2.
LAG15-APPENDIX1ConstructiononParcel8201.Tenant,solelyatitscostandexpense,mustconstructorcausetobeconstructedupontheleasedlandat820WestPerimeterRoad,Renton,Washington,98057(hereinaftercalled“820Parcel”)certainbuilding,orbuildings,andimprovementsasdescribedbelow.2.TheTenantunderstandsthattheLandlorddesirestoseethe820Parceldevelopedtoincludeasinglelargecombinationhangarandofficebuilding,alandsideparkinglot,andadequaterampspaceforparkedaircraftwithoutneedtoexpandtootherparcels.ThebuildingshallbeplannedandbuiltadheringtothedesignguidelinesanddesignapprovalprocessnotedinSection5below.3.Thefinalplans,specifications,details,andlocationofconstructiononthe820ParcelshallbesubjecttotheCityofRenton’sbuildingpermitapprovalprocesspriortoconstruction.4.Tenantunderstandsandagreesthatanyandalldevelopmentonthe820Parcelissubjecttofinal,writtenapprovalbytheI.andlordbeforeconstructionmaycommence.5.Buildingsshallbedesignedtobefunctional,neat,andattractive.Thedesignshallincludevariedmaterials,colors,articulatedsurfacesorothermeansinordertoavoidunbrokenexpansesofsidingwithnoaestheticvalueorpointofinterest.LandscapingshallconformtotherequirementsoftheCityofRentonMunicipalCode.PavementdesignandpavementmarkingsontheairsideoftheperimetersecurityfenceshallconformtoapplicableFAAAdvisoryCircularrequirements.TenantmustfollowthefollowingDesignApprovalProcess:DesignApprovalProcessa)Beforebeginningdesign,TenantshallconsultwithAirportManagementregardingthetypeofproposedbuilding(s)landscapingandotherimprovements,theTenant’sgeneralapproachtothedesign,andtheParcelImprovementPlan,asdescribedbelow;andb)Beforesubmittingapplicationsforpermits,TenantshallpresentadesignproposaltoAirportManagementconsistingofsketches,colorrenderings,materialselectionboardsorothermeansofconveyingthedesignapproachandintent;andc)Beforesubmittingapplicationsforpermits,TenantshallprovideAirportManagementwithpreliminaryandfinalconstructiondocumentsforapproval,andd)PermitapplicationsmaynotbesubmittedwithoutwrittenapprovalofthedesignbytheAirportManager.AGENDA ITEM # 2.
LAG15-6.TenantshallsubmittotheCityaParcelImprovementPlandepictingallproposedandanticipatedfutureimprovementstotheleaseholdparcel,whichmustmakeaccommodationfor;a)Allparkingareasfortenantandcustomerlandvehiclestoinsuretheyarelocatedoutsidetheperimetersecurityfence.b)AnunbrokensecurityperimeterbetweenthesecurityfenceandtheTenant’sbuilding(s)topreventunauthorizedaccesstotheairside.c)Adequatespaceforlandvehicleparkingoutsidetheperimeterfenceandaircraftparkingontheapronontheairside.TheTenant’sbuildings(s)shallbesizedandsituatedtoallowsuchadequatespace.TheTenantmustobtainfromtheAirportManagerwrittenapprovaloftheParcelImprovementPlanpriortoconstructingpermanentimprovementsontheleaseholdparcel.7.Tenantagreesthatthe35yeartermoftheLease,LAG15-iscontingentontheTenantmeetingallmilestonesaslistedbelow.TheTenantfurtheragreesthatshouldanyofthesemilestonesnotbemet,theLeasetermforthe820ParcelwillautomaticallyresetandexpireonSeptember30,2024.l.a.Milestone#1-TenantshallsubmitacompletedbuildingpermitapplicationtotheCityofRenton’sbuildingdepartmentnolaterthanDecember1,2019.7.b.Milestone442-Constructionofimprovementsonthe820ParcelshallcommenceattheTenant’soption,nosoonerthanJune1,2019andnolaterthanFebruary28,2020.ThisperiodmaybeextendedconsistentwiththetermsinSection24oftheLease.7.c.Milestone#3—Siteimprovementsandallconstructionshallbefullycompletewithin18monthsafterconstructioncommences.8.Tenantshall,atthetimeofsubmittingitscompletedbuildingpermitapplication,submittotheAirportManageracriticalpathconstructionscheduleforanyandallbuildingsandotherimprovementstobeconstructedonthe820Parcel.9.Uponcompletionofconstruction,TenantshallprovidetotheCityofRenton’sbuildingdepartmentareproducible,CADdisccopyofallas-builtdrawingsforallbuildingandutilitiesonthe820Parcel.10.TenantshallcauseTenant’sconstructionworktobeperformedbylicensedandbondedcontractors,approvedbytheCityofRenton,andthecontractorsshallprovide,ifrequiredbytheCityofRenton,aperformancebondcoveringallTenant’swork.AGENDA ITEM # 2.
LAG15-11.Tenantshallbefullyresponsibleforallconstructionandallactivitiesincidentalthereto.TenantisnotanagentoremployeeoftheCityofRentonbutundertakesanyactivityhereundersolelyonitsownbehalf.Allrisksoflossari5ngfromTenant’sconstructionactivitiestoanyimprovementsnoworhereafterconstructedbyTenantshallrestontheTenant.12.Allworkandmaterialshallbeofgoodquality,freeofdefects,andaccomplishedinaworkmanlikemannerinconformitywithapprovedplansandspecifications.13.TenantacknowledgesthattheRentonMunicipalAirportMasterPlaniscurrentlybeingupdated(“MasterPlanUpdate”).Therefore,Tenantagreesthattheheightandconfigurationofanyandallbuildingsandimprovementsproposedtobeconstructedshallbesubjecttoanyrestriction(s)causedbyexistinglanding,runway,ortaxiwayrequirementsoftheAirportasindicatedintheAirportMasterPlanandotherpublicplanningdocumentsavailabletoTenantatthetimeofexecutionoftheLease,orasamendedintheMasterPlanUpdate.14.Workand/ormaterialnotinaccordwiththisAppendix1,shallbecorrected,removed,replaced,and/orrepairedattheTenant’sexpenseuponwrittennoticebytheAirportManager.Ifsuchworkand/ormaterialis/arenotsocorrected,removed,replaced,and/orrepairedbytheTenantwithinareasonableperiodoftimeofsuchnotice,theCityofRentonmay,atitschoice,correct,remove,replace,and/orrepairsuchworkand/ormaterialattheTenant’sexpense.ThisisamaterialprovisionoftheLease,LAG15-,violationofwhichshallbeamaterialbreachoftheLease,forwhichLandlordmayterminatetheLeasewithoutfurthernotice.15.Tenantshallpayallcostsofgrading,constructing,paving,oranyotherdevelopmentcosts,includingallpermits,withintheleasedPremisesandcostsofutilityinstallation,relocation,orremovalrequiredbytheconstructionanditsuseandoccupancyofthePremises.Allexcavatedsoilsshallberemovedanddisposedofatanapprovedoff-sitelocation.Allbackfillmaterialshallbeimportedmaterialandthetypeandqualityofthematerialshallbeapprovedbytheairportengineer.16.AllworkbytheTenantshallbeperformedinasafemannerbothonthePremisesandwithrespecttoanyotherCitypropertyattheAirportwhichmightbeusedoraffectedbyanyactivityoftheTenantduringconstruction.WorkshallbeperformedsoasnottointerferewiththeuseofotherAirportpropertybytheCity,itsothertenants,orotherusersoftheAirportproperty.TenantshallkeepthePremises,andanyotherAirportproperty,freeofwastematerialsandrubbishcausedbytheconstruction.Materialand/orequipmentshallnotbeplacedorstoreduponAirportpropertyotherthanthepremisesleased.17.TheCityshallnotbeliableforanydamagesinconnectionwiththeapprovalordisapprovalofanyplansandspecificationsoranyconstructionorotheractivitiesofTenantonthepremises,ortheenforcementorfailuretoenforceanyprovisionsoftheLease.TheCity’sapprovalofplansandspecificationsshallnotconstitutetheassumptionofanyresponsibilitybytheCityoritsrepresentativesoftheaccuracy,efficiency,orsufficiencythereof,andTenantshallbesolelyresponsibletherefore.AGENDA ITEM # 2.
ENDOFAPPENDIX1LAG15-AGENDA ITEM # 2.
LAG15-Amendment01-15AMENDMENTTOLEASEAGREEMENT(CityofRentontoRainierFlightService,LLC)THISAMENDMENTtoLeaseAgreementLAG15-iseffectiveasofOctober1,2015.RECITALS:WHEREAS,RainierFlightServiceLLC(Tenant)hasanexistingLeaseAgreementwiththeCityofRenton,LAG15-,executedonOctober1,2015,forthelandlocatedat820WestPerimeterRoad,Renton,Washington98057(820Parcel);andWHEREAS,Tenantintendstoredevelopthe820parceltoexpanditsexistingbusiness;andWHEREASTenantdesirestosub-ldasethe820ParceltemporarilybacktotheCityofRenton;andWHEREAS,duringtheperiodofsubleasetotheCityofRentontherewillbeimprovementsmadeontheparcelthatwillbenefitTenant;andWHEREAS,duringtheperiodofsubleasetotheCityofRentontheTenantwillprovideLandlordwithaconstructionplan,proceedwithplanning,surveying,financing,tocommenceconstructionassoonafterMay31,2019asispractical;andNOW,THEREFORE,ITISHEREBYAGREEDANDCOVENANTEDBYANDBETWEENTHECITYOFRENTONANDRAINIERFLIGHTSERVICESLLCASFOLLOWS:WITNESSETH:1.LandlordandTenantdoherebyagreethattheTenantshallsubleasetheentiretyofthe820ParcelbacktotheLandlordeffectiveonOctober1,2015untilMay31,2019.2.TheLandlordandTenantdoherebyagreethatanyothertenantswhooccupythe820ParcelduringthesubleaseshallbetreatedastenantsoftheLandlordandnotsubtenantsoftheTenantforpurposesoftheLease,andwhoshallpaytheirrentsdirectlytotheLandlorduntiltheendofthesublease.ORIGINALLeaseAgreementLAGI5-XXXCityofRentontoRainierFlightServiceLLCAGENDA ITEM # 2.
LAG15-Amendment01-153.TheLandlordandTenantdoherebyagreetoarentalrateofzerodollars($0)forthissublease.TheTenantfurtheragreesthatthesubleaserentalratewillnotchangeforthedurationofthesublease.4.TheLandlordandTenantdoherebyagreethatarentalpaymentcreditof$4,462.94permonthforthe820Parcel(73,849squarefeetat$07252persquarefootperyear)willbeappliedtotheTenant’sinvoiceeachmonththroughMayof2019.5.TheLandlordandTexpireonMay31,2019enantdoherebyagreethatthesubleaseshallautomatically6.AllothertermsandconditionsoftheoriginalLeaseAgreementinsofarastheyarenotinconsistentherewith,shallremaininfullforceandeffect.RainierFlightServiceLLCaWashingtonCorporation4:L’DU•r+-rTitleCITYOFRENTONaMunicipalCorporationDenisLawMayorJasonSethCityClerkDateLeaseAgreementLAGI5-XXXCityofRentontoRainierFlightServiceLLCApprovedastolegalformCityAttorneyAGENDA ITEM # 2.
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mx_.._En _AGENDA ITEM # 2.
REGULAR COUNCIL - 14 Sep 2015
SUBJECT/TITLE: Landing Gear Works, LLC – Lease Amendment 02-15
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: Jonathan Wilson, Airport Manager
EXT.: 7477
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ 563.99
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Landing Gear Works, LLC is currently leasing 4,102 square feet of office space and 1,278 square feet of storage
space in the building located at 289 East Perimeter Road. Lease Amendment 02-15 seeks to increase the
amount of storage space they lease by 1,330 square feet. The total leased area would then total 4,102 square
feet of office space and 2,608 square feet of storage space. The net revenue increase would be $563.99 per
year. Landing Gear Works, LLC is also seeking to extend the term of their lease by 12 months to expire on
August 31, 2017.
EXHIBITS:
A. Amendment 02-15 to Landing Gear Works, LLC Lease LAG 13-005
B. Lease Map
STAFF RECOMMENDATION:
Approve Landing Gear Works, LLC request for additional storage space in the 289 East Perimeter Road
building, and extend the term of the lease for an additional 12 months, from August 31, 2016 to August 31,
2017.
AGENDA ITEM # 3.
LAG13-005Amendment02-15AMENDMENTTOBUILDINGLEASEAGREEMENTCityofRentontoLandingGearWorks,LLCTHISAMENDMENTNo.2toLeaseAgreementLAG13-005isenteredintoasofOctober1,2015bytheCityofRenton,aMunicipalCorporation(Landlord)andLandingGearWorks,alimitedliabilitycompany(Tenant)andamendsthatcertainleaseagreementLAG13-005datedSeptember1,2013.RECITALS:WHEREAS,theTenantisleasing5,380squarefeetinthebuildinglocatedat295EastPerimeterRoad,underLeaseLAG13-005;andWHEREAS,that5,380squarefeetinthebuildinglocatedat295EastPerimeterRoadiscomposedof4,102squarefeetofofficespaceand1,278squarefeetofstoragespace;andWHEREAS,Tenantdesirestoretainthearealeasedforofficespaceandincreasetheleasedareainthebuildingforstoragespacebyadding1,330squarefeetofstoragespace,asshownintheamendedExhibitA(LeaseMap);andWHEREAS,Landlorddesirestopermittheincreaseintheleasedareaforstoragespace;andWHEREAS,thestandardstorageleaserateis$042406persquarefootperyearforthe2,608(1,278+1,330=2,608)squarefeetofstoragespace;andWHEREAS,theTenantdesirestoextendthetermoftheleaseforanadditionaltwelve(12)monthperiodtoexpireonAugust31,2017.NOW,THEREFORE,INCONSIDERATIONOFTHETERMSANDCONDITIONSHEREINCONTAINEDANDFOROTHERGOODANDVALUABLECONSIDERATION,THERECEIPTANDSUFFICIENCYOFWHICHISHEREBYACKNOWLEDGED,LANDLORDANDTENANTAGREETOAMENDTHELEASEASSETFORTHBELOW:WITNESSETH:1.TheLandlordandTenantdoherebyagreetoamendsection1.b.andReservationofEasementtoreadasfollows:LandlordhereLeaseAgreementLAG13-005IIIlACityofRentontoLandingGearWorksLLCI1AGENDA ITEM # 3.
LAG13-005Amendment02-15andTenantleasesfromLandlordforthetermdescribedinSection3below,theportionofthebuildinglocatedat295EastPerimeterRoadasshowninExhibitAattachedheretoandincorporatedhereinbyreference(hereinafter,“Premises”).whichincludes4,102squarefeetofofficespace,and2,608squarefeetofstoragespace2.TheLandlordandTenantdoherebyagreetoamendSection3.b.AdditionalTerm:tobere-titledandtoreadasfollows:ExtendedTerm:TheextendedtermofthisLease(hereinreferredtoas“ExtendedTerm”)astotheentirePremisesshallterminateonAugust31,2017(hereinafter“ExpirationDate”).3.TheLandlordandTenantdoherbyagreetoaddanewSection3.c.AdditionalTerm:toreadasfollows:AftertheExtendedTerm,continuedtenancybyLandingGearWorks,LLC.,willbeonamonth-to-monthbasis.4.TheLandlordandTenantdoherebyagreetoamendSection4.a.MinimumMonthlyRenttoreadasfollows:TenantshallpaytotheLandlordaMinimumMonthlyRentinthesumofSixteenHundredThirtyand41/100Dollars($1,630.41),PLUSLeaseholdExciseTaxasdescribedinSection5,below,withoutdeduction,offset,priornoticeordemand,payablepromptlyinadvanceonthefirstdayofeachandeverymonth.AllsuchpaymentsshallbemadetotheCityofRenton616WestPerimeterRoad,UnitA,Renton,Washington98057.TheMinimumMonthlyRentiscomputedasfollows:(4,102sq.ft.)($4.50persq.ft.peryear)=$18,459.00(2,608sq.ft.)($0.42406persq.ft.peryear)=$1,105.95$18,459.00+$1,105.95=$19,564.95/12months=$1,630.41PLUSleaseholdexcisetax5.AllothertermsandconditionsoftheoriginalLeaseAgreementandAmendmentsthereto,insofarastheyarenotinconsistentherewith,shallremaininfullforceandeffect.LeaseAgreementLAG13-0052cityofRentontoLandingGearWorksLLCAGENDA ITEM # 3.
LAG13-005Amendment02-15LandingGearWorksLLCCITYOFRENTONaWashingtonLimtedLiabilityCompanyaMunicipalCorporation(<DenisLawMayorTitleJasonSeth,CityClerkDateApprovedastolegalformCityAttorneyLeaseAgreementLAG13-0053CityofRentontoLandingGearWorksLLCAGENDA ITEM # 3.
LAG13-005Amendment02-15AMENDEDEXHIBITASeeattached.LeaseAgreementLAG13-0054CityofRentontoLandingGearWorksLLCAGENDA ITEM # 3.
FLOOR?±N__sccE/=r-o”1_______EXHIBITALFE22-C--I-zNZL--____0-
__IjJTh1W--ElEELr:zzz__::Ui-:,Hc:NIIOriginalLeaseLAG13-005(existing)3,502squarefeetofOfficespaceAmendment01-14(existing)600squarefeetofOfficespace1,278squarefeetofStoragespaceAmendment02-15(new)1,330squarefeetofStoragespaceGrandTotal4,102squarefeetofOfficespace2,608squarefeetofStoragespace295BUILDINGzO—CD2—lA1ORTIAGENDA ITEM # 3.
REGULAR COUNCIL - 14 Sep 2015
SUBJECT/TITLE: Aviation Training Center Operating Permit and Sublease Agreement
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: Jonathan Wilson, Airport Manager
EXT.: 7477
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Bosair, LLC leases 80,811.88 square feet of ground space in the southeast corner of the Airport at 289 East
Perimeter Road. Bosair is in the final stages of completing construction of their new, larger building. Bosair’s
ground lease with the Airport continues until September 30, 2052.
Bosair, LLC has entered into a sublease agreement with Aviation Training Center for unused office space
located on the top floor of the new building. The term of the sublease is month-to-month, and expires no
later than January 31, 2026. Aviation Training Center’s core business consists of flight training, aviation
ground schooling, and simulator training. Aviation Training Center has been in business since 1996 and
currently operates on the King County International Airport (KCIA). Space availability at KCIA is very limited
and has been shrinking in recent years. As a result Aviation Training Center has been looking to relocate.
The sublease between Bosair and Aviation Training Center and Aviation Training Center’s Operating Permit
and Agreement will not change the annual Airport leasehold revenue.
EXHIBITS:
A. Bosair Sublease to Aviation Training Center
STAFF RECOMMENDATION:
Approve the Operating Permit and Sublease Agreement with Aviation Training Center effective September 1,
2015 on a month-to-month basis, not to extend beyond January 31, 2026.
AGENDA ITEM # 4.
IIOPERATINGPERMITANDAGREEMENTAUG102015jbetweentheCityofRentonandAviationTrainingC‘iterTHISISAPERMITTOOPERATEANAVIATIONRELATEDACTIVITYUPONTHERENTONMUNICIPALAIRPORTANDANAGREEMENT(hereinafter“OperatingPermit”)betweenTHECITYOFRENTON,aWashingtonmunicipalcorporation(hereinafter“Permittor’),andAviationTrainingCenter.,aWashingtoncorporation(hereinafter“Permittee”).INCONSIDERATIONofthecovenantsandagreementshereinaftersetforth,thepartiesagreeasfollows:1.ACKNOWLEDGEMENTOFSUB-LEASE:1.1.PursuanttoleaseagreementLAG003-86,executedonAugust1,1986,theCityofRenton(Landlord)grantedaleaseofthesubjectpremisestoJohn,Julie&Terrencelien,asLessee,forthepurposeofoperatingaFixedBasedOperation,whichincludes/includedaircraftrebuildingandmaintenance,aircraftmodification,lightmanufacturing,engineeringandsales,storageofaircraftparts,employeeandcustomerparkingandtiedownandstorageofaircraft.OnMarch8,2001,theentiregroundlease(LAG003-86)wasassignedfromJohn,Julie&TerrenceLientoBosairLLC(hereinafter“Lessee”).1.2.Thereafter,LesseesubletaportionofthesubjectpremisestoAviationTrainingCenter(Permittee)bysubleaseagreement,executedonMay19,2015,forthepurpose/purposesofoperatingaflightschool,groundschool,andsimulatortrainingbusinesslocatedat289EastPerimeterRoad.2.GRANTOFOPERATINGPERMIT:2.1.DescriptionofPremises:ThePremisessubleasedbyAviationTrainingCenter,thePermittee,isdescribedinthesubleaseasofficespacelocatedat289EastPerimeterRoad.ThelayoutofthisofficespaceisidentifiedinthesubleaseasExhibitAandthatexhibitisattachedheretoandincorporatedbythisreference.2.2.CommonAreas:Permittee,anditsauthorizedrepresentatives,subtenants,assignees,agents,invitees,andlicensees,shallhavetherighttouse,incommonwithothers,onanon-exclusivebasisandsubjecttotheAirportRegulationsandMinimumStandards(astheymaybeamendedfromtimetotime)pursuanttoSection8.5below,andsubjecttothetermsofitssublease,thepublicportionoftheRentonMunicipalAirport(akaClaytonScottField,hereinafterreferredtoas“Airport”),includingtherunwayandotherpublicfacilitiesprovidedthereon.2.2.1.AccesstoTaxiwaysandRunway:NotwithstandinganythinginthisOperatingPermittothecontrary,PermittoracknowledgesthatdirectaccesstothetaxiwaysandrunwayOPERATINGPERMIT1cityofRentontoAviationTrainingcenteroRtG1NJ\LAGENDA ITEM # 4.
fromthePremisesisessentialtotheconductofPermittee’sbusinessonthePremisesand,exceptduringconstructionactivitiesoccurringonthetaxiways,runwayorweather-relatedevents,PermittorshallnotdoanythingthatwouldinterferewithdirectaccesstothetaxiwaysandrunwaybythePermitteeanditsrepresentatives,subtenants,assignees,agents,invitees,andlicenseesduringtheTermofthisOperatingPermit,PROVIDEDthatifPermittorplansanyconstructionactivityonthetaxiwaysorrunway,PermittorwillschedulesuchactivitysoasnottointerferewithPermittee’suseofthePremises,thetaxiways,ortherunway,willnotifyPermitteeofanyplansforsuchactivitynotlessthansixmonthsinadvanceofthecommencementofsuchactivity,andwillconsultandcoordinatewithPermitteetoensurethatsuchactivitydoesnotinterferewithPermittee’suseofthePremises,thetaxiways,orrunway,exceptthatinthecaseofanemergencyPermittormayproceedwithsuchactivitywithoutnoticetotheTenantandwilluseitsbestreasonableeffortsnottointerferewithPermittee’suseofthePremises,taxiway,orrunwayinaddressingsuchemergency.Forpurposesofthisprovision,an“emergency”isaconditionthatpresentsanimminentthreatofbodilyinjurytoordeathofanypersonorlossoforsignificantdamagetoanyproperty.3.CONDITIONS:3.1.SpecificConditions:ThisOperatingPermit,andPermittee’srightsandpermittedusesunderthisOperatingPermit,aresubjecttothefollowing:3.1.1.Easements,restrictionsandreservationsofrecord;3.1.2.TheAirportRegulationsandMinimumStandardspursuanttoSection8.5below,includingPermittor’sstandardsconcerningoperationofaviationactivitiesfromtheAirport;and3.1.3.Allsuchnon-discriminatorychargesandfeesforuseoftheAirportasmaybeestablishedfromtimetotimebyPermittorassetoutinSection5.3.ofthisOperatingPermit.3.2.NoConveyanceofAirport:ThisOperatingPermitshallinnowaybedeemedtobeaconveyanceoftheAirport,andshallnotbeconstruedasprovidinganyspecialprivilegeforanypublicportionoftheAirportexceptasdescribedherein.ThePermittorreservestheabsoluterighttoleaseorpermittheuseofanyportionoftheAirportforanypurposedeemedsuitablefortheAirport,exceptthatportionthatispermittedhereby.3.3.NatureofPermittorTsInterest:ItisexpresslyunderstoodandagreedthatPermittorholdsandoperatestheAirport,andthePremisesunderandsubjecttoagrantandconveyancethereoftoPermittorfromtheUnitedStatesofAmerica,actingthroughitsReconstructionFinanceCorporation,andsubjecttoallthereservations,restrictions,rights,conditions,andexceptionsoftheUnitedStatesthereinandthereunder,whichgrantandconveyancehasbeenfiledforrecordintheofficeoftheRecorderofKingCounty,Washington,andrecordedinVolume2668ofDeeds,Page386;andfurtherthatPermittorholdsandoperatessaidAirportandPremisesunderandsubjecttotheStateAeronauticsActsoftheStateofWashingtonOPERATINGPERMIT2cityofRentontoAviationTrainingcenterAGENDA ITEM # 4.
(chapter165,lawsof1947),andanysubsequentamendmentsthereoforsubsequentlegislationofsaidstateandallrulesandregulationslawfullypromulgatedunderanyactorlegislationadoptedbytheStateofWashingtonorbytheUnitedStatesortheFederalAviationAdministration.ItisexpresslyagreedthatthePermitteealsoacceptsandwillholdandusethisOperatingPermitandthePremisessubjecttheretoandtoallcontingencies,risks,andeventualitiesoforarisingoutoftheforegoing,andifthisOperatingPermit,itsTerm,oranyconditionsorprovisionsofthisOperatingPermitareorbecomeinconflictwithorimpairedordefeatedbyanysuchlegislation,rules,regulations,contingenciesorrisks,thelattershallcontroland,ifnecessary,modifyorsupersedeanyprovisionofthisOperatingPermitaffectedthereby,allwithoutanyliabilityonthepartof,orrecourseagainst,PermittorinfavorofPermittee,providedthatPermittordoesnotexceeditsauthorityundertheforegoinglegislation,rulesandregulations.3.4.FutureDevelopment/Funding:SubjectalwaystoPermittee’srightsunderSection2.2.1ofthisOperatingPermit,nothingcontainedinthisOperatingPermitshalloperateorbeconstruedtopreventorhinderthefuturedevelopment,improvements,oroperationofAirportbyPermittor,itsagents,successorsorassigns,oranydepartmentoragencyoftheStateofWashingtonoroftheUnitedStates,ortheconsummationofanyloanorgrantoffederalorstatefundsinaidofthedevelopment,improvement,oroperationoftheRentonMunicipalAirport.ButPermittor’sexerciseofsuchrightsshallnotunreasonablyinterferewithPermittee’srightsunderthisOperatingPermit.4.TERMOFLEASE,SUBLEASEANDOPERATINGPERMIT:4.1.InitialTerm:ThetermofthesubleasetoAviationTrainingCenterisstatedintheSubleaseAgreementsection1.2attachedhereto.4.2.PermitTerm:ThetermofthisOperatingPermitismonth-to-monthandmaybeextendedtoincludeanyExtendedTermasmaybeineffectbetweenBosairLLC(Lessee)andAviationTrainingCenter(Sublessee/Permittee).ThisOperatingPermitmaybeextendedonamonth-to-monthbasisbyoperationofanyextensionofthesublease,withallothertermsandconditionsofthisOperatingPermitremaininginfullforceandeffect.InnoeventwillthetermoftheOperatingPermitandAgreementbeextendedbeyondJanuary31,2026.5.RENTAL:5.1.RentonLease:AsrentalforthepremisesdescribedinLAG003-86andaddendathereto,LesseehasagreedtopayPermittoragroundleaserateof$0.62/sqft/yearon51,259squarefeetorthirtyonethousandsevenhundredeightydollarsandfiftyeightcents($31,780.58)peryearoramonthlyrentalinthesumoftwothousandsixhundredfortyeightdollarsandthirtyeightcents($2,648.38)throughoutthetwelve(12)monthperiodcommencingonJune1,2010whichdoesnotincludeleaseholdexcisetax.LesseehasagreedtopayPermittorabuildingleaseamountofthreethousandsevenhundreddollars($3,700)peryearoramonthlyrentalinthesumofthreehundredeightdollarsandthirtythreecents($308.33)throughoutthetwelve(12)monthperiodcommencingonJune1,2010,whichdoesnotincludeOPERATINGPERMIT3CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
leaseholdexcisetax.TheRentalamountsetouthereinissubjecttoPeriodicRentalAdjustmentsassetoutinAddendum02-98toleaseLAG003-86.5.2.RentonSublease:AsrentalforthepremisesdescribedinSection2,above,duringthetermofthispermit,PermitteehasagreedtopayLesseeamonthlyrentalinthesumoffourthousandfortyonedollarsandseventyfivecents($4,041.75)whichdoesnotincludeleaseholdexcisetax.IntheeventLesseefailstopaytherentidentifiedinSection5.1.,andanyfuturerentalrateincreases,thenPermitteemay,whetherPermitteesubleasesallorpartofLessee’sAirportleaseholdinterestasdescribedinLAG003-86andaddendathereto,paysaidrent,whendue.IntheeventneitherLesseenorPermitteepaysaidrent,thenthePermittormayterminatethispermitwithten(10)days’notice.5.3.OtherCharges:Permitteefurtheragreestopay,inadditiontotherentalspecifiedandotherchargeshereinabovedefined,allfeesandchargesnowineffectorhereafterleviedorestablishedbyPermittor,oritssuccessors,orbyanyothergovernmentalagencyorauthority,beingorbecomingleviedorchargedagainstthepremises,structures,businessoperations,oractivitiesconductedbyorusemadebyPermitteeof,on,andfromtheleasedpremiseswhichshallinclude,butnotbelimitedto,allchargesforlight,heat,gas,power,garbage,waterandotherutilities,AircraftRescueandFireFightingservicesorservicesrenderedtosaidpremises.IntheeventLesseefailstopaytheotherchargesidentifiedinthisSection5.3,thenPermitteemay,whetherPermitteesubleasesallorpartofLessee’sAirportleaseholdinterestasdescribedinleaseLAG003-86andaddendathereto,paysaidothercharges,whendue.IntheeventneithertheLesseenorthePermitteepaysaidothercharges,thenthePermittormayterminatethispermitwithten(10)days’notice.5.4.LeaseholdExciseTax:IntheeventthattheStateofWashingtonoranyothergovernmentalauthorityhavingjurisdictionthereovershallhereafterlevyorimposeanysimilartaxorchargeontheleaseholdestatedescribedherein,andLesseefailstopaysaidtaxorcharge,thenPermitteemay,whetherPermitteesubleasesallorpartofLessee’sAirportleaseholdinterestasdescribedinLAG003-86andaddendathereto,paysaidtaxorcharge,whendue.Suchtaxorchargeshallbeinadditiontotheregularmonthlyrentals.IntheeventneitherLesseenorPermitteepaysaidtaxorcharge,thenthePermittormayterminatethispermitwithten(10)days’notice.6.PAYMENTOFUTILITIESANDRELATEDSERVICES:6.1.WhetherPermitteesubleasesallorpartofLessee’sAirportleaseholdinterestasdescribedinLAG003-86andaddendathereto,ifLesseefailstopaysuchutilitiesandservicecharges,thenPermitteemaypayalllight,heat,gas,power,garbage,water,sewerandjanitorialserviceusedinoronthePremiseswhendue.IntheeventneitherLesseenorthePermitteepaysaidutilityorservicecharges,thenthePermittormayterminatethispermitwithten(10)days’notice.6.2.Permittorshallnotbeliableforanylossordamagecausedbyorresultingfromanyvariation,interruption,orfailureofsaidutilityservicesduetoanycausewhatsoever;andnoOPERATINGPERMIT4cItyofRentontoAviationTrainingCenterAGENDA ITEM # 4.
temporaryinterruptionorfailureofsuchservicesincidenttothemakingofrepairs,alterationsorimprovements,orduetoaccident,strike,actofGod,orconditionsoreventsnotunderPermittor’scontrol,shallbedeemedabreachofthePermitorasanevictionofPermittee,orrelievePermitteefromanyofitsobligationshereunder.7.PERMITTEE’SACCEPTANCEOFPREMISES:7.1.AcceptanceofPremises:ByoccupyingthePremises,PermitteeformallyacceptsthesameinASIScondition,andacknowledgesthatthePermittorhascompliedwithalltherequirementsimposeduponitunderthetermsofthisPermitwithrespecttotheconditionofthePremisesatthecommencementofthisterm.PermitteeherebyacceptsthePremisessubjecttoallapplicablezoning,municipal,countyandstatelaws,ordinancesandregulationsgoverningandregulatingtheuseofthePremises,andacceptsthisPermitsubjecttheretoandtoallmattersdisclosedtherebyandbyanyexhibitsattachedhereto.PermitteeacknowledgesthatneitherPermittornorPermittor’sagenthasmadeanyrepresentationorwarrantyastothesuitabilityofthePremisesfortheconductofPermittee’sbusinessoruse.Exceptasotherwiseprovidedherein,PermittorwarrantsPermittee’srighttopeaceablyandquietlyenjoythepremiseswithoutanydisturbancefromPermittor,orothersclaimingbyorthroughPermittor.8.PURPOSEANDUSE:8.1.UseofPremises:ThePremisesareleasedtothePermitteeforthepurposeofoperatingaflightschool,groundschool,andsimulatortrainingbusinessinaccordancewiththeAirportRegulationsandMinimumStandardspursuanttoSection8.5below.8.2.ContinuousUse:PermitteecovenantsthatthePremisesshallbecontinuouslyusedforthosepurposesduringthetermofthisOperatingPermit,shallnotbeallowedtostandvacantoridle,andshallnotbeusedforanyotherpurposewithoutPermittor’swrittenconsentfirsthavingbeenobtained.ConsentofPermittortoothertypesofactivitieswillnotbeunreasonablywithheld.8.3.Non-AviationUsesProhibited:Permitteeagreesthat,exceptasexpresslyprovidedabove,thePremisesmaynotbeusedforusesoractivitiesthatarenotrelated,directlyorindirectly,toaviation.8.4.Sjgns:NoadvertisingmatterorsignsshallbeatanytimedisplayedonthesubleasedpremisesorstructureswithoutthewrittenapprovalofPermittor,whichwillnotbeunreasonablywithheld.Onesign,ofthetypeanddimensionsspecifiedbytheAirportManager,shallbepermittedtobedisplayedontheRainierandAirportWayentrancefencesthroughtheterminationdateofthisOperatingPermit.8.5.ConformitywithRules:PermitteefurthercovenantstokeepandoperatethePremisesandallstructures,improvements,andactivitiesinconformitywithallrules,regulationsandlawsnowexistingorhereafteradoptedbyPermittor,includingtheAirportRegulationsandMinimumStandardswhichareincorporatedhereinbythisreference,theOPERATINGPERMIT5CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
FederalAviationAdministration,theStateAeronauticsCommission,orotherdulyconstitutedgovernmentalauthority,allatPermittee’scostandexpense.8.6.Waste,Nuisance,IllegalActivities:Permitteeshallnotpermitanywaste,damage,orinjurytothePremisesorimprovementsthereon,norallowthemaintenanceofanynuisancethereon,northeusethereofforanyillegalpurposesoractivities.8.7.IncreasedInsuranceRisk:PermitteeshallnotdoorpermittobedoneinoraboutthePremisesanythingwhichwillbedangeroustolifeorlimb,orwhichwillincreaseanyinsuranceratesuponthePremisesorotherbuildingsandimprovementsattheAirport.8.8.AircraftRegistrationCompliance:ThePermitteeisherebynotifiedoftheWashingtonStatelawconcerningaircraftregistrationandtherequirementthattheTenantcomplytherewith.SeeTitle47.68.250RCW:PublicHighwaysandTransportation.9.HAZARDOUSSUBSTANCEUSE:9.1.Permittee’sRepresentationandWarranty:PermitteeshallnotdisposeoforotherwiseallowthereleaseofanyHazardousSubstancesin,onorunderthePremises,ortheProperty,orinanyPermitteeimprovementsoralterationsplacedonthePremisesbyPermittee.PermitteerepresentsandwarrantstothePermittorthatPermittee’sintendeduseofthePremisesdoesnotandwillnotinvolvetheuse,production,disposalorbringingontothePremisesofanyhazardoussubstance,hazardousmaterial,waste,pollutant,orcontaminant,asthosetermsaredefinedinanyfederal,state,county,orcitylaworregulation(collectively,“HazardousSubstances”)otherthanfuels,lubricantsandotherproductswhicharecustomaryandnecessaryforuseinPermitteeTsordinarycourseofbusiness,providedthatsuchproductsareused,storedanddisposedofinaccordancewithapplicablelawsandmanufacturer’sandsupplier’sguidelines.Permitteeshallpromptlycomplywithalllawsandwithallorders,decreesorjudgmentsofgovernmentauthoritiesorcourtshavingjurisdiction,relatingtotheuse,collection,treatment,disposal,storage,control,removalorcleanupbyPermitteeofHazardousSubstances,in,onorunderthePremises,orincorporatedinanyimprovementsoralterationsmadebyPermitteetothePremises,atPermittee’ssolecostandexpense.9.2.StandardofCare:PermitteeagreestouseahighdegreeofcaretobecertainthatnoHazardousSubstancesareimproperlyused,releasedordisposedin,onorunderthePremisesduringtheTermbyPermittee,oritsauthorizedrepresentativesorassigns,orareimproperlyused,releasedordisposedonthePremisesbytheactofanythirdparty.9.3.ComplianceNotification:Intheeventofnon-compliancebyPermittee,afternoticetoPermitteeandareasonableopportunityforPermitteetoeffectsuchcompliance,Permittormay,butisnotobligatedto,enteruponthePremisesandtakesuchactionsandincursuchcostsandexpensestoeffectsuchcompliancewithlawsasitdeemsadvisabletoprotectitsinterestinthePremises,provided,howeverthatthePermittorshallnotbeobligatedtogivePermitteenoticeandanopportunitytoeffectsuchcomplianceif(i)suchdelaymightresultinmaterialadverseharmtothePremisesortheAirport,or(ii)anemergencyexists.PermitteeshallOPERATINGPERMIT6CityofRentontoAviationTrainingcenterAGENDA ITEM # 4.
reimbursePermittorforthefullamountofallcostsandexpensesincurredbyPermittorinconnectionwithsuchcomplianceactivitiesandsuchobligationshallcontinueevenafterexpirationorterminationoftheTerm.PermitteeshallnotifyPermittorimmediatelyofanyreleaseofanyHazardousSubstancesin,onorunderthePremises.9.4.Indemnity:9.4.1.PermittorshallhavenoresponsibilitytothePermittee,oranyotherthirdparty,forremedialactionunderR.C.W.Chapter70.1OSD,orotherfederal,state,countyormunicipallaws,intheeventofareleaseofordispositionofanyHazardousSubstancesin,onorunderthePremisesduringtheTermthatwerecausedbyPermittee.Permitteeshalldefend,indemnifyandholdharmlessPermittor,itsofficials,employees,agents,andcontractors(hereinafter“CityIndemnitees”)fromanyclaims(includingwithoutlimitationthirdpartyclaimsforpersonalinjuryorrealorpersonalpropertydamage),actions,administrativeproceedings,judgments,penalties,fines,liability,loss,damage,obligationorexpense,including,butnotlimitedto,feesincurredbythePermittororCityIndemniteesforattorneys,consultants,engineers,damages,environmentalresourcedamages,andremedialactionunderRCWChapter70.1USDorotherremediation,arisingbyreasonofthereleaseordispositionofanyHazardousSubstancesin,onorunderthePremisesduringtheTermthatarecausedbyPermittee.9.4.2.PermitteeshallhavenoresponsibilitytothePermittor,oranyotherthirdparty,forremedialactionunderRCWChapter70.1USD,orotherfederal,state,countyormunicipallaws,norshallPermitteehaveanyotherliabilityorresponsibilityofanykind,intheeventofthepresence,release,ordispositionofanyHazardousSubstanceon,inorunderthePremisesunlesssuchpresence,release,ordispositionofanyHazardousSubstancewascausedbyPermittee.Permittorshalldefend,indemnifyandholdharmlessPermittee,andtheirdirectors,officers,agents,employees,andcontractors(collectively,“lndernnittees”)fromanyclaims(includingwithoutlimitationthirdpartyclaimsforpersonalinjuryorrealorpersonalpropertydamage),actions,administrativeproceedings,judgements,penalties,fines,liability,loss,damage,obligationorexpense,including,butnotlimitedto,feesincurredbyPermitteeoranyIndemniteeforattorneys,consultants,engineers,damages,environmentalresourcedamages,andremedialactionunderRCWChapter70.1USDorotherRemediation,arisingfromorinconnectionwiththepresence,suspectedpresence,releaseorsuspectedreleaseofanyHazardousSubstancesin,onorunderthePremisesthatisnotcaused,inwholeorinpart,byPermitteeorthelndemnitees.9.4.3.TheprovisionsofthisSubsection9.4shallsurvivetheexpirationorsoonerterminationoftheTerm.NosubsequentmodificationorterminationofthisOperatingPermitbyagreementofthepartiesorotherwiseshallbeconstruedtowaiveortomodifyanyprovisionsofthisSectionunlesstheterminationormodificationagreementorotherdocumentexpresslysostatesinwriting.9.5.DisputeResolution:IntheeventofanydisputebetweenthepartiesconcerningwhetheranyHazardousSubstanceswerebroughtontothePremisesbyPermittee,orwhetheranyreleaseofordispositionofanyHazardousSubstancewascausedbyPermittee,thepartiesOPERATINGPERMIT7cityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
agreetosubmitthedisputeforresolutionbyarbitrationupondemandbyeitherparty.Eachpartyshallselectone(1)arbitrator.Thetwo(2)selectedarbitrators,ifunabletoagreewithinaperiodofthirty(30)daysaftersuchappointment,asthattermisdefinedinSection9.5.1ofthisOperatingPermit,shallselectathirdarbitrator.ThearbitratorsshallbeenvironmentalconsultantswithexperienceintheidentificationandremediationofHazardousSubstances.Thearbitratorsshallmaketheirdecisioninwritingwithinsixty(60)daysaftertheirappointment,unlessthetimeisextendedbytheagreementoftheparties.Thedecisionofamajorityofthearbitratorsshallbefinalandbindingupontheparties.Eachpartyshallbearthecostofthearbitratornamedbyit.Theexpensesofthethirdarbitratorshallbebornebythepartiesequally.9.5.1.AppointedArbitrators:Thetwoappointedarbitratorsshallmeet,andshallmaketheirdecisioninwritingwithinthirty(30)daysafterthedateoftheirappointment.Iftheappointmentdateforeitherarbitratorislaterthantheother,thelatterdateshallbetheappointmentdateforpurposesofthethirty(30)daydeadline.Ifthetwoarbitratorsareunabletoagreewithinaperiodofthirty(30)daysaftersuchappointment,theyshall,withinaperiodofthirty(30)daysafterthefirstthirty(30)dayperiod,selectathirdarbitrator.Ifsuchthirdarbitratorhasnotbeenselectedorifsuchthirdarbitratorhasnotacceptedsuchappointmentwithinsuchthirty(30)dayperiod,eitherPermittororPermitteemayapplytotheheadoftheSeattleofficeoftheAmericanArbitrationAssociationtoappointsaidthirdarbitrator.Thethreearbitratorsshallhavethirty(30)daysfromthedateofselectionofthethirdarbitratortoreachamajoritydecisionunlessthetimeisextendedbyagreementofbothparties.Thedecisionofthemajorityofsucharbitratorsshallbefinalandbindinguponthepartieshereto.10.MAINTENANCE:10.1.MaintenanceofPremises:ThePremisesandalloftheimprovementsorstructuresthereonandauthorizedbythePermittorforusebythePermittee,shallbeusedandmaintainedbyPermitteeinanoperable,neat,orderly,andsanitarymanner.Permittorshallnotbecalledupontomakeanyimprovements,alteration,orrepairofanykinduponthePremises.Permitteeisresponsiblefortheclean-upandproperdisposalatreasonableandregularintervalsofrubbish,trash,wasteandleavesaroundthePremises,includingthatblownagainstfencesborderingthePremises,whetherasaresultofthePermittee’sactivitiesorhavingbeendepositeduponthePremisesfromotherareas.10.2.RemovalofSnow/Floodwater/Mud:Permitteeshallberesponsibleforremovalofsnowand/orfloodwatersormuddepositedtherefromthePremisesandthoseareasofthesubleaseutilizedbythePermittee,withthedispositionthereoftobeaccomplishedinsuchamannersoastonotinterferewithorincreasethemaintenanceactivitiesofPermittoruponthepublicareasoftheAirport.10.3.PermittorMayPerformMaintenance:IfPermitteefailstoperformPermittee’sobligationsunderthissection,Permittormayatitsoption(butshallnotberequiredto)enterOPERATINGPERMIT8cityofRentontoAviationTrainingcenterAGENDA ITEM # 4.
thePremises,afterthirty(30)days’priorwrittennoticetoPermittee,andputthesameingoodorder,conditionandrepair,andthecostthereoftogetherwithinterestthereonattherateoftwelve(12%)percentperannumshallbecomeduewithinthirty(30)daysofthedateofthePermittor’sinvoicetothePermittee.11.ALTERATIONS:11.1.ProtectionfromLiens:Beforecommencinganyworkrelatingtoalterations,additionsandimprovementsaffectingthePremises(“Work”),PermitteeshallnotifyPermittorinwritingoftheexpecteddateofcommencementoftheWork.Permitteeshallpay,orcausetobepaid,allcostsoflabor,servicesand/ormaterialssuppliedinconnectionwithanyWork.PermitteeshallkeepthePremisesfreeandclearofallmechanics’andmaterialmen’sliensandotherliensresultingfromanyWork.Permitteeshallhavetherighttocontestthecorrectnessorvalidityofanysuchlienif,immediatelyondemandbyPermittor,itprocuresandrecordsalienreleasebondissuedbyaresponsiblecorporatesuretyinanamountsufficienttosatisfystatutoryrequirementsthereforeintheStateofWashington.Permitteeshallpromptlypayorcausetobepaidallsumsawardedtotheclaimantonitssuit,and,inanyevent,beforeanyexecutionisissuedwithrespecttoanyjudgmentobtainedbytheclaimantinitssuitorbeforesuchjudgmentbecomesalienonthePremises,whicheverisearlier.IfPermitteeshallbeindefaultunderthisSection,byfailingtoprovidesecurityfororsatisfactionofanymechanic’sorliens,thenPermittormay,atitsoption,inadditiontoanyotherrightsorremediesitmayhave,dischargesaidlienby(i)payingtheclaimantanamountsufficienttosettleanddischargetheclaim,(ii)procuringandrecordingalienreleasebond,or(iii)takingsuchotheractionasPermittorshalldeemnecessaryoradvisable,and,inanysuchevent,Permitteeshallpay,onPermittor’sdemand,allreasonablecosts(includingreasonableattorneyfees)incurredbyPermittorinsettlinganddischargingsuchlientogetherwithinterestthereonattherateoftwelve(12%)percentperyearfromthedateofPermittor’spaymentofsaidcosts.Permittor’spaymentofsuchcostsshallnotwaiveanydefaultofPermitteeunderthisSection.11.2.Bond:AtanytimePermitteeeitherdesirestoorisrequiredtomakeanyrepairs,alterations,additions,improvementsorutilityinstallationthereon,orotherwise,PermittormayatitssoleoptionrequirePermittee,atPermittee’ssolecostandexpense,toobtainandprovidetoPermittoralienandcompletionbondinanamountequaltooneandone-half(1-1/2)timestheestimatedcostofsuchimprovements,toinsurePermittoragainstliabilityformechanicsandmaterialmen’sliensandtoinsurecompletionofthework.11.3.PermittorMayMakeImprovements:PermitteeagreesthatPermittormay,atitsoptionandatitsexpense,makerepairs,alterationsorimprovementswhichPermittormaydeemnecessaryoradvisableforthepreservation,safety,orimprovementofutilitiesorAirportinfrastructureonthePremises,ifany.Permittorshallprovideten(10)days’advancenoticeofanysuchworkandusereasonableeffortstonotinterferewithPermittee’suseofthePremisesduringanysuchwork.11.4Improvements:AsfurtherconsiderationforthisOperatingPermit,itisagreedthatupontheexpirationorsoonerterminationoftheTerm,allstructuresandanyandallOPERATINGPERMIT9CityofRentontoAviationTratningCenterAGENDA ITEM # 4.
improvementsofanycharacterwhatsoeverinstalledonthePremisesbyPermittee,shallbeandbecomethepropertyofthePermittor,andtitletheretoshallautomaticallypasstoPermittoratsuchtime,andnoneofsuchimprovementsnoworhereafterplacedonthePremisesshallberemovedtherefromatanytimewithoutPermittor’spriorwrittenconsent.DuringtheTerm,PermitteeshallholdtitletoallimprovementsplacedbyPermitteeonthePremises.PermitteecovenantsandagreesthatPermitteewillpayandsatisfyinfullalloutstandingliens,orotherdebts,affectingorencumberingsuchimprovementsbeforetransferofownershipofsuchimprovementstoPermittor.Permittormay,atitsoption,requirePermittee,upontheexpirationorsoonerterminationoftheTerm,ifany,toremoveanyandallimprovementsandstructuresinstalledbyPermitteefromthePremisesandrepairanydamagecausedthereby,atPermittee’sexpense.12.ASSIGNMENT:12.1.Assignment/Subletting:Anyassignment,encumbranceorsublease,whetherbyoperationoflaworotherwise,withoutPermittor’sconsentshallbevoidandshallconstituteadefaultbyPermitteeunderthisOperatingPermit.NoconsenttoanyassignmentorsubleaseshallconstituteawaiveroftheprovisionsofthisSectionandnootherorsubsequentassignmentorsubleaseshallbemadewithoutPermittor’spriorwrittenconsent.Beforeanassignmentorsub-leasewillbeapproved,theproposedassigneeorsub-PermitteemustcomplywithprovisionsofthethencurrentAirportLeasingPolicies,including,butnotlimitedtothe“AnalysisofTenant’sFinancialCapacity,”independentofPermittee’scomplianceorFinancialCapacity.Consentshallnotbeunreasonablywithheld,conditioned,ordelayed.Inthecaseofanassignmentofthefullleaseholdinterestand/orcompletesaleofthestockorotherinterestsintheentityconstitutingPermitteeandconcomitanttransferofownershipofsaidentity,(a)inthecaseofanassignment,theproposedassigneeshalldelivertoPermittorawritteninstrumentdulyexecutedbytheproposedassigneestatingthatithasexaminedthisOperatingPermitandagreestoassume,beboundbyandperformallofTenant’sobligationsunderthisOperatingPermitaccruingafterthedateofsuchassignment,tothesameextentasifitweretheoriginalTenant,and(b)inthecaseofastocktransfer,TransfereeshalldeliverawrittenacknowledgmentthatitshallcontinuetobeboundbyalltheprovisionsofthisOperatingPermitafterthetransfer.Exceptinthecaseofanassignmentofthefullleaseholdinterest,anyassignmentpermittedhereinwillnotrelieveTenantofitsdutytoperformalltheobligationssetoutinthisOperatingPermitoraddendahereto.InnoeventwilltheassignmentofthefullleaseholdinterestorthecompletesaleofthestockorotherinterestsintheentityconstitutingTenantandconcomitanttransferofownershipofsaidentitycauseanextensionoftheTermofthisOperatingPermit.12.2.ConditionstoAssignmentorSublease:PermitteeagreesthatanyinstrumentbywhichPermitteeassignsorsubletsalloranyportionofthePremisesshall(i)incorporatethisOperatingPermitbyreference,(ii)expresslyprovidethattheassigneeorsubtenantmaynotfurtherassignorsublettheassignedorsubletspacewithoutPermittor’spriorwrittenconsentOPERATINGPERMIT10cityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
(whichconsentshallnotbeunreasonablywithheld,conditioned,ordelayed),(iii)acknowledgethattheassigneeorsubtenantwillnotviolatetheprovisionsofthisOperatingPermit,and(iv)inthecaseofanyassignment,acknowledgethatPermittormayenforcetheprovisionsofthisOperatingPermitdirectlyagainstsuchassignee.12.3.Documentation:NopermittedsublettingbyPermitteeshallbeeffectiveuntiltherehasbeendeliveredtoPermittoracopyofthesubleaseandanexecutedOperatingPermitandAgreementinwhichthesubtenantagreesnottoviolateandtoactinconformitywiththetermsandprovisionsofthisOperatingPermit;providedthatnoOperatingPermitshallberequiredforthesublettingofhangarortie-downspaceforaircraftstoragepurposes.NopermittedassignmentshallbeeffectiveunlessanduntiltherehasbeendeliveredtoPermittoracounterpartoftheassignmentinwhichtheassigneeassumesallofTenant’sobligationsunderthisOperatingPermitarisingonorafterthedateoftheassignment.12.4NoReleaseofPermittee’sLiability:NeitheranassignmentnorsublettingshallbedeemedawaiverofanyoftheprovisionsofthisSectionorreleasePermitteefromitsobligationtocomplywiththetermsandprovisionsofthisOperatingPermitandPermitteeshallremainfullyandprimarilyliableforallofPermittee’sobligationsunderthisOperatingPermit,unlessPermittorotherwiseagreesinwriting.Notwithstandingtheforegoing,intheeventthatPermittor’sconsenttoassignmentisobtainedforacompleteassignmentandAssigneeagreesinwritingtoassumealloftheobligationsandliabilitiesofthisOperatingPermitaccruingaftersuchassignment,PermitteeshallberelievedofallliabilityarisingfromthisOperatingPermitandarisingoutofanyact,occurrenceoromissionoccurringafterPermittor’sconsentisobtained.TotheextentthatanyclaimforwhichindemnificationofthePermittor(includingwithrespecttoHazardousSubstance)arisesafterPermitte’scompleteassignmentforconductpredatingsaidassignment,thePermitteeshallnotberelievedofobligationsorliabilityarisingfromthisOperatingPermit.12.5.NoMerger:WithoutlimitinganyoftheprovisionsofthisSection,ifPermitteehasenteredintoanysubleasesofanyportionofthePremises,thevoluntaryorothersurrenderofthisOperatingPermit,oramutualcancellationbyPermittorandPermittee,shallnotworkamergerandshallterminatealloranyexistingsubleasesorsubtenancies.13.DEFAULT:13.1.Default:TheoccurrenceofanyofthefollowingshallconstituteadefaultbyPermitteeunderthisOperatingPermit:13.1.1.FailuretoComplywithAirportRegulationsandMinimumStandards:FailuretocomplywiththeAirportRegulationsandMinimumStandards,ifthefailurecontinuesforaperiodoftwenty-four(24)hoursafternoticeofsuchdefaultisgivenbyPermittortoPermittee.Ifthefailuretocomplycannotreasonablybecuredwithintwenty-four(24)hours,thenPermitteeshallnotbeindefaultunderthisOperatingPermitifPermitteecommencestocurethefailuretocomplywithintwenty-four(24)hoursanddiligentlyandingoodfaithcontinuestoOPERATINGPERMIT11CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
curethefailuretocomply.However,saidinabilitytocurewithintwenty-four(24)hours,diligenceandgoodfaithnotwithstanding,cannotbebasedonfinancialincapacity.13.1.2.FailureToPerformorCure:FailuretoperformanyotherprovisionofthisOperatingPermit,ifthefailuretoperformisnotcuredwithinthirty(30)daysafternoticeofsuchdefaulthasbeengivenbyPermittortoPermittee.Ifthedefaultcannotreasonablybecuredwithinthirty(30)days,thenPermitteeshallnotbeindefaultunderthisOperatingPermitifPermitteecommencestocurethedefaultwithinthirty(30)daysofthePermittor’snoticeanddiligentlyandingoodfaithcontinuestocurethedefault.13.1.3.AppointmentofTrusteeorReceiver:TheappointmentofatrusteeorreceivertotakepossessionofsubstantiallyallofthePermittee’sassetslocatedatthePremisesorofPermittee’sinterestinthisOperatingPermit,wherepossessionisnotrestoredtoPermitteewithinsixty(60)days;ortheattachment,executionorotherjudicialseizureofsubstantiallyallofPermittee’sassetslocatedatthePremisesorofPermittee’sinterestinthisOperatingPermit,wheresuchseizureisnotdischargedwithinsixty(60)days.13.1.4.FailuretoComplyWithLaws:ItshallbeadefaultofthisPermitifthePermitteefailstocomplywithanyofthestatutes,ordinances,rules,orders,regulations,andrequirementsofthefederal,state,and/orcitygovernments,anytermsofthisPermitand/ortheunderlyinglease.13.2AdditionalSecurity:IfPermitteeisindefaultunderthisOperatingPermit,andsuchdefaultremainsuncuredformorethanthree(3)businessdaysafterPermittorgivesPermitteenoticeofsuchdefault,thenPermittor,atPermittor’soption,mayinadditiontootherremedies,requirePermitteetoprovideadequateassuranceoffutureperformanceofallofPermittee’sobligationsunderthisOperatingPermitintheformofadepositinescrow,aguaranteebyathirdpartyacceptabletoPermittor,asuretybond,aletterofcreditorothersecurityacceptableto,andapprovedby,Permittor.IfPermitteefailstoprovidesuchadequateassurancewithintwenty(20)daysofreceiptofarequestbyPermittorforsuchadequateassurance,suchfailureshallconstituteamaterialbreachofthisOperatingPermitandPermittormay,atitsoption,terminatethisOperatingPermit.13.3.Remedies:IfPermitteecommitsadefault,thenfollowingtheexpirationofthenoticeandcureperiodssetforthinSection13.1above,Permittorshallhavethefollowingalternativeremedies,whichareinadditiontoanyremediesnoworlaterallowedbylaw,andPermittorshallusereasonableeffortstomitigateitsdamages:13.3.1.MaintainOperatingPermitinForce:TomaintainthisOperatingPermitinfullforceandeffectandrecoveranymonetarychargesastheybecomedue,withoutterminatingPermitteeTsrighttopossession,irrespectiveofwhetherPermitteeshallhaveabandonedthePremises.IfPermittorelectstonotterminatetheOperatingPermit,PermittorshallhavetherighttoperformallactsnecessarytomaintainorpreservethePremisesasPermittordeemsreasonableandnecessary,withoutbeingdeemedtohaveelectedtoterminatetheOperatingOPERATINGPERMIT12CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
Permit,includingremovalofallpersonsandpropertyfromthePremises;suchpropertymayberemovedandstoredinapublicwarehouseorelsewhereatthecostofandontheaccountofPermittee.NotwithstandingthatPermittorfailstoelecttoterminatetheOperatingPermitinitially,PermittoratanytimeduringtheTermmayelecttoterminatethisOperatingPermitbyvirtueofsuchpreviousdefaultofPermitteesolongasPermitteeremainsindefaultunderthisOperatingPermit.13.3.2.TerminateOperatingPermit:ToterminatePermittee’srighttopossessionbyanylawfulmeans,inwhichcasethisOperatingPermitshallterminateandPermitteeshallimmediatelysurrenderpossessionofthePremisestoPermittor.InsucheventPermittorshallbeentitledtorecoverfromPermitteealldamagesincurredbyPermittorbyreasonofPermitte&sdefaultincludingwithoutlimitationthereto,thefollowing:(i)anyamountnecessarytocompensatePermittorforallthedetrimentproximatelycausedbyPermittee’sfailuretoperformitsobligationsunderthisOperatingPermitorwhichintheordinarycourseofbusinesswouldbelikelytoresulttherefrom,includingwithoutlimitation,(A)anycostsorexpensesincurredbyPermittorincludingreasonableattorneyfees,and(B)suchotheramountsinadditiontoorinlieuoftheforegoingasmaybepermittedfromtimetotimebyapplicablestatelaw.TheamountsreferencedinthisSectionshallaccrueinterestat12%perannum.14.BINDINGAGREEMENT:Subjecttotherestrictionuponassignmentorsublettingassetforthherein,alloftheterms,conditions,andprovisionsofthisPermitshallbebindingupontheparties,theirsuccessorsandassigns,andinthecaseofaPermitteewhoisanaturalperson,hisorherpersonalrepresentativeandheirs.15.CONDEMNATION:IfthewholeoranysubstantialpartofthePremisesshallbecondemnedortakenbyPermittororanycounty,state,orfederalauthorityforanypurpose,thentheTermshallceaseastothepartsotakenfromthedaythepossessionofthatpartshallberequiredforanypurpose.FromthatdaythePermitteeshallhavetherighttoeithercancelthisOperatingPermitanddeclarethesamenullandvoid,ortocontinueinthepossessionoftheremainderofthesameunderthetermshereinprovided.AlldamagesawardedforsuchtakingforanypublicpurposeshallbelongtoandbethepropertyofthePermittor,whethersuchdamageshallbeawardedascompensationforthediminutioninvaluetotheleasehold,ortothefeeofthePremiseshereinleased.DamagesawardedforthetakingofPermittee’simprovementslocatedonthePremisesshallbelongtoandbeawardedtoPermittee.16.RIGHTOFINSPECTION:PermitteewillallowPermittor,orPermittor’sagent,freeaccesstothePremisesatallreasonabletimesforthepurposeofinspection,orformakingrepairs,additionsoralterationstothePremises,oranypropertyownedbyorunderthecontrolofPermittor.17.SURRENDEROFPREMISES:Permitteeshallquitandsurrenderthepremisesattheendoftheterminaconditionasgoodasthereasonableusethereofwouldpermit,normalwearandtearexcepted.Alterations,additionsorimprovementswhichmaybemadebyeitherofthepartiesheretoonthePremises,exceptmovableofficefurnitureortradefixturesputinattheOPERATINGPERMIT13CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
expenseofPermittee,shallbeandremainthepropertyofthePermittorandshallremainonandbesurrenderedwiththePremisesasapartthereofattheterminationofthisleasewithouthindrance,molestation,orinjury.PermitteeshallrepairatitssoleexpenseanydamagetothePremisesoccasionedbyitsusethereof,orbytheremovalofPermitteeTstradefixtures,furnishingsandequipmentwhichrepairshallincludethepatchingandfillingofholesandrepairofstructuraldamage.18.INSURANCE:18.1.PersonalProperty:ItisagreedthatPermittorshallnotbeheldliableinanymannerfor,oronaccountof,anylossordamagetopersonalpropertyofthePermittee,Permittee’sinviteesorotherpersons,whichmaybesustainedbyfireorwaterorotherinsuredperil,orforthelossofanyarticlesbyburglary,theftoranyothercausefromoruponthePremises.ItisacknowledgedthatPermittordoesnotcoveranyofthepersonalpropertyofPermittee,PermitteeTsinviteesorotherpersonsuponthePremisesthroughitsinsurance.Permittee,itsinviteesandotherpersonsuponthePremisesaresolelyresponsibletoobtainsuitablepersonalpropertyinsurance.18.2.LiabilityInsurance.ThePermitteeagreestomaintaininforceduringthetermofthisLeaseapolicyofcomprehensivepublicliabilityandpropertydamageinsurancewrittenbyacompanyauthorizedtodobusinessintheStateofWashingtonagainstanyliabilityarisingoutoftheownership,use,occupancyormaintenanceofthePremisesandallareasappurtenantthereto.Thelimitsofliabilityshallbeinanamountofnotlessthan$1,000,000.00/$2,000,000intheaggregateforinjurytoordeathofonepersoninanyoneaccidentoroccurrenceandinanamountofnotlessthan$1,000,000.00forinjurytoordeathofmorethanonepersoninanyoneaccidentoroccurrence,andofnotlessthan$1,000,000.00forpropertydamage.Thelimitsofsaidinsuranceshallnot,however,limittheliabilityofPermitteehereunder.TheinsurancepolicyshallhaveaLandlordtsProtectiveLiabilityendorsementattachedthereto,andtheCityofRentonwillbenamedasAdditionalInsured(s)onPermittee’spolicy,withtheGeneralLiabilitycoveragebeingprimaryandnon-contributorywithanyotherpolicy(ies)availabletotheCity.18.3.InsurancePolicies:InsurancerequiredhereundershallbewrittenincompaniesacceptabletoPermittorandratedA-borbetterin“BestTsInsuranceGuides.T’Permittorreservestherighttoestablishand,fromtime-to-time,toincreaseminimuminsurancecoverageamounts.NoticeofincreasedinsurancerequirementsshallbesenttothePermitteeatleastforty(45)dayspriortotheannualrenewaldateofthePermittee’sinsurance.CoverageshallbesubmittedonformsprescribedbyPermittor.Priortopossession,thePermitteeshalldelivertoPermittorcopiesofpoliciesofsuchinsuranceacquiredbyPermittee,orcertificatesevidencingtheexistenceandamountsofsuchinsurance,withlosspayableclausessatisfactorytoPermittor.Permittorshallbenamedasanadditionalinsuredwiththatcoveragebeingprimaryandnon-contributorytoanyotherinsurancecoverageavailabletotheCity.ThePermitteeshallprovidetheCitywithwrittennoticeofanypolicycancellation,withintwobusinessdaysoftheirreceiptofsuchnotice.OPERATINGPERMIT14cityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
18.4.InsuranceMaintainedThroughoutTerm:Permitteeshallnotdoorpermittobedoneanythingwhichshallinvalidatetheinsurancepoliciesreferredtoabove.Permitteeshallforthwith,uponPermittor’sdemand,reimbursePermittorforanyadditionalpremiumsattributabletoanyactoromissionoroperationofPermitteecausingsuchincreaseinthecostofinsurance.IfthePermitteeshallfailtoprocureandmaintainsaidinsurancethePermittormay,butshallnotberequiredto,procureandmaintainthesame,butattheexpenseofPermittee.18.5.WaiverofSubrogation:PermitteeandPermittoreachwaivesanyandallrightsofrecoveryagainsttheother,oragainsttheofficers,employees,agentsandrepresentativesoftheother,forlossofordamagetosuchwaivingpartyoritspropertyorthepropertyofothersunderitscontrol,wheresuchlossordamageisinsuredagainstunderanyinsurancepolicyinforceatthetimeofsuchlossordamage.Permitteeshall,uponobtainingthepoliciesofinsurancerequiredhereunder,givenoticetotheinsurancecarriersthattheforegoingmutualwaiverofsubrogationiscontainedinthisOperatingPermit.19.LIMITATIONUPONPERMITTOR’SLIABILITY.Permittorshallnotbeliableforanydamagetopropertyorpersonscausedby,orarisingoutof(a)anydefectinorthemaintenanceoruseofthePremises,ortheimprovements,fixturesandappurtenancesofwhichthepremisesconstituteapart;or(b)watercomingfromtheroof,waterpipes,floodingoftheCedarRiverorotherbodyofwater,orfromanyothersourcewhatsoever,whetherwithinorwithoutthePremises;or(c)anyactoromissionofanyPermitteeorotheroccupantsofthebuilding,ortheiragents,servants,employeesorinviteesthereof.20.INDEMNITY:Permitteecovenantstodefend,indemnifyandsaveharmlessPermittoragainstanyandallclaimsarisingfrom(a)theconductandmanagementoforfromanyworkorthingwhatsoeverdoneinoraboutthePremisesortheimprovementsorequipmentthereonduringtheOperatingPermitterm,or(b)arisingfromanyactornegligenceofthePermitteeoranyofitsagents,contractors,patrons,customers,oremployees,orinvitees,or(c)arisingfromanyaccident,injury,ordamagewhatsoever,howevercaused,toanypersonorpersons,ortothepropertyofanyperson,persons,corporationorotherentityoccurringduringtheOperatingPermittermon,in,oraboutthePremises,andfromandagainstallcosts,attorneyTsfees,expenses,andliabilitiesincurredinorfromanysuchclaimsoranyactionorproceedingbroughtagainstthePermittorbyreasonofanysuchclaim,exceptsuchclaimsarisingdirectlyorindirectlyoutofPermittorTssoleactoromission.Permittee,onnoticefromPermittor,shallresistordefendsuchactionorproceedingforthwithwithcounselreasonablysatisfactoryto,andapprovedbyPermittor.21.HOLDINGOVER:Permitteeunderstandsthatuponexpirationofthetermofthispermit,PermitteemustexecuteanewpermitwiththePermittorasaconditiontoremainingonthepremises.Permitteefurtherunderstandsthatif,withoutexecutionofanyextensionorrenewalofthispermit,Permitteeshouldremaininpossessionofthepremisesafterexpirationorterminationofthetermofthispermit,notwithstandinganyextensionofitssubleasewithLessee,thentheLesseeshallbeindefaultofitslease,LAG003-86andPermittormayevicttheOPERATINGPERMIT15CityofRentontoAviationTrainingcenterAGENDA ITEM # 4.
LesseeandthePermittee.Alltheconditions,termsandprovisionsofthispermitshallbeapplicableduringsuchholdingover.22.NOWAIVER:ItisfurthercovenantedandagreedbetweenthepartiesheretothatnowaiverbyPermittorofabreachbyPermitteeofanycovenant,agreement,stipulation,orconditionofthisOperatingPermitshallbeconstruedtobeawaiverofanysucceedingbreachofthesamecovenant,agreement,stipulation,orcondition,orabreachofanyothercovenantagreement,stipulation,orcondition.23.NOTICES:AllnoticesorrequestsrequiredorpermittedunderthisOperatingPermitshallbeinwriting;shallbepersonallydelivered,deliveredbyareputableexpressdeliveryservicesuchasFederalExpressorDHL,orsentbycertifiedmail,returnreceiptrequested,postageprepaid,andshallbedeemeddeliveredonreceiptorrefusal.AllnoticesorrequeststoPermittorshallbesenttoPermittoratPermittor’saddresssetforthbelowandallnoticesorrequeststoPermitteeshallbesenttoPermitteeatPermittee’saddresssetforthbelow.Permittor’sAddress:AirportManager616WestPerimeterRoad,UnitARenton,Washington98057Permittee’sAddress:AviationTrainingCenter289EastPerimeterRoadRenton,WA9805724.DISCRIMINATIONPROHIBITED:24.1.DiscriminationProhibited:Permitteecovenantsandagreesnottodiscriminateagainstanypersonorclassofpersonsbyreasonofrace,color,creed,sex,nationalorigin,oranyotherclassofpersonprotectedbyFederalorStatelawortheRentonCityCode,intheuseofanyofitsfacilitiesprovidedforthepublicintheAirport.Permitteefurtheragreestofurnishservicesonafair,equalandnotunjustlydiscriminatorybasistoallusersthereof,andtochargeonafair,reasonableandnotunjustlydiscriminatorybasisforeachunitofservice;providedthatPermitteemaymakereasonableandnon-discriminatorydiscounts,rebates,orothersimilartypesofpricereductionstovolumepurchasers.24.2.MinorityBusinessEnterprisePolicy:ItisthepolicyoftheDepartmentofTransportationthatminoritybusinessenterprisesasdefinedin49C.F.R.Part23shallhavethemaximumopportunitytoparticipateintheperformanceofleasesasdefinedin49C.F.R.23.5.Consequently,thisOperatingPermitissubjectto49C.F.R.Part23,asapplicable.Nopersonshallbeexcludedfromparticipationin,deniedthebenefitsoforotherwisediscriminatedagainstinconnectionwiththeawardandperformanceofanycontract,includingOperatingPermitscoveredby49C.F.R.Part23,onthegroundsofrace,color,nationaloriginorsex.24.3.ApplicationtoSub-leases:SubjecttotheprovisionsofSection12ofthisPermit,PermitteeagreesthatitwillincludetheaboveclauseinallassignmentsofthisOperatingPermitOPERATINGPERMIT16CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
orsub-leases,andcauseitsassignee(s)andsub-lessee(s)tosimilarlyincludetheaboveclauseinfurtherassignmentsorsub-leases.25.FORCEMAiEURE:Intheeventthateitherpartyheretoshallbedelayedorhinderedinorpreventedfromtheperformanceofanyactrequiredhereunderbyreasonofstrikes,lockouts,labortroubles,inabilitytoprocurematerials,failureofpower,restrictivegovernmentallawsorregulations,riots,insurrections,war,orotherreasonoflikenaturenotthefaultofthepartydelayedinperformingworkordoingactsrequiredunderthetermsofthisOperatingPermit,thenperformanceofsuchactshallbeextendedforaperiodequivalenttotheperiodofsuchdelay.TheprovisionsofthisSectionshallnot,however,operatetoexcusePermitteefromthepromptpaymentofanypaymentrequiredbythetermsofthisOperatingPermit,tobemadebyPermittee.26.TRANSFEROFPREMISESBYPERMITTOR:Intheeventofanysale,conveyance,transferorassignmentbyPermittorofitsinterestinthePremises,PermittorshallberelievedofallliabilityarisingfromthisOperatingPermitandarisingoutofanyact,occurrenceoromissionoccurringaftertheconsummationofsuchsale,conveyance,transferorassignment.ThePermittor’stransfereeshallbedeemedtohaveassumedandagreedtocarryoutalloftheobligationsofthePermittorunderthisOperatingPermit.27.ATTORNEYS’FEESANDCOSTS;COLLECTIONCOSTS:Ifeitherpartybringsanyactionforreliefagainsttheotherparty,declaratoryorotherwise,arisingoutofthisOperatingPermit,includinganyactionbyPermittorfortherecoveryofRentorpossessionofthePremises,theprevailingpartyshallbeentitledtoreasonableattorneys’feesandcostsoflitigationasestablishedbythecourt.Ifthematterisnotlitigatedorresolvedthroughalawsuit,thenanyattorneys’feesforcollectionofpast-duerentorenforcementofanyrightofPermittorordutyofPermitteehereundershallentitlePermittortorecover,inadditiontoanylatepaymentcharge,anycostsofcollectionorenforcement,includingreasonableattorney’sfees.ForthepurposesofthisSection27,attorney’sfeesshallincludeareasonablerateforattorney’semployedbytheCity.28.EMERGENCYRESPONSE:PermitteemustprovidetotheAirportManagerreasonableaccessandresponseintimesofemergencyorurgency.ThePermitteeiswhollyresponsibletokeepanup-to-datelistingofaircrafttypes,identification,andownersonfileandattheAirportManager’soffice.29.DEFINITIONS:AsusedinthisOperatingPermit,thefollowingwordsandphrases,whetherornotcapitalized,shallhavethefollowingmeanings:“AdditionalRent”meansanychargesormonetarysumstobepaidbyPermitteetoPermittorundertheprovisionsofthisOperatingPermitotherthanMinimumMonthlyRent.“Authorizedrepresentatives”meansanyofficer,agent,employee,independentcontractororinviteeofeitherparty.OPERATINGPERMIT17cityofRentontoAviationTrainingcenterAGENDA ITEM # 4.
“EnvironmentalLawsandRequirements”meansanyandallfederal,state,locallaws,statutes,ordinances,rules,regulationsand/orcommonlawrelatingtoenvironmentalprotection,contamination,therelease,generation,production,transport,treatment,processing,use,disposal,orstorageofHazardousSubstances,workerhealthorsafetyorindustrialhygiene,andtheregulationspromulgatedbyregulatoryagenciespursuanttotheselaws,andanyapplicablefederal,state,and/orlocalregulatoryagency-initiatedorders,requirements,obligations,directives,notices,approvals,licenses,orpermits.“Expiration”meansthecomingtoanendofthetimespecifiedintheOperatingPermitasitsduration,includinganyextensionoftheTerm.“HazardousSubstances”meansanyandallmaterial,waste,chemical,compound,substance,mixtureorbyproductthatisidentified,defined,designated,listed,restrictedorotherwiseregulatedunderanyEnvironmentalLawsandRequirementsasa“hazardousconstituent,”“hazardoussubstance,”“hazardousmaterial,”“extremelyhazardousmaterial,”“hazardouswaste,”“acutelyhazardouswaste,”“hazardouswasteconstituent,”“infectiouswaste,”“medicalwaste,”“biohazardouswaste,”“extremelyhazardouswaste,”“pollutant,”“toxicpollutant”or“contaminant.”Theterm“HazardousSubstances”includes,withoutlimitation,anymaterialorsubstancewhichis(i)hexavalentchromium;(ii)pentachiorophenol;(iii)volatileorganiccompounds;(iv)petroleum;(v)asbestos;(vi)designatedasa“hazardoussubstance”pursuanttoSection311oftheFederalWaterPollutionControlAct,33U.S.C.§1251etseq.(33U.S.C.§1321);(vii)definedasa“hazardouswaste”pursuanttoSection1004oftheFederalResourceConservationandRecoveryAct,42U.S.C.§6901etseq.(42U.S.C.§6903);(viii)definedasa“hazardoussubstance”pursuanttoSection101oftheComprehensiveEnvironmentalResponse,CompensationandLiabilityActof1980,asamended,42U.S.C.§9601etseq.(42U.S.C.§9601);or(ix)designatedasa“hazardoussubstance”pursuanttotheWashingtonModelToxicsControlAct,RCW70.105D.010etseq.‘Parties”meansPerrnittorandPermittee.“Person”meansoneormorehumanbeings,orlegalentitiesorotherartificialpersons,includingwithoutlimitation,partnerships,corporations,trusts,estates,associationsandanycombinationofhumanbeingsandlegalentities.“Rent”meansMinimumMonthlyRent,asadjustedfromtimetotimeunderaLease,andAdditionalRent.30.GENERALPROVISIONS:30.1.EntireAgreement:ThisOperatingPermitsetsforththeentireagreementofthepartiesastothesubjectmatterhereofandsupersedesallpriordiscussionsandunderstandingsbetweenthem.ThisOperatingPermitmaynotbeamendedorrescindedinanymannerexceptOPERATINGPERMIT18CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
byaninstrumentinwritingsignedbyadulyauthorizedofficerorrepresentativeofeachpartyhereto.IntheeventofaconflictbetweenthetermsofthisPermitandthesubleaseagreementbetweenPermitteeandLessee,thetermsofthisPermitsupersede.30.2.EXEMPTIONOFPERMITTORFROMLIABILITY:PermittororPermittor’sagentsshallnotbeliableforinjurytopersonsortoPermittee’sbusinessorlossofincometherefromorfordamagewhichmaybesustainedbytheperson,goods,wares,merchandiseorpropertyofPermittee,itsauthorizedrepresentatives,oranyotherpersoninoraboutthePremises,causedbyorresultingfrom(a)fire,electricity,gas,waterorrainwhichmayleakorflowfromorintoanypartofthePremises,(b)anydefectinorthemaintenanceoruseofthePremises,oranyimprovements,fixturesandappurtenancesthereon,(c)thePremisesoranyimprovements,fixturesandappurtenancesthereonbecomingoutofrepair,(d)thebreakage,leakage,obstructionorotherdefectsofthepipes,sprinklers,wires,appliances,plumbing,heating,ventilatingorairconditioningorlightingfixturesofthePremises,(e)floodingoftheCedarRiverorotherbodyofwater,orfromanyothersourcewhatsoever,whetherwithinorwithoutthePremises;or(f)anyactoromissionofanyothertenantoroccupantofthebuildinginwhichthePremisesarelocated,ortheiragents,servants,employees,orinvitees,provided,thattheforegoingexemptionshallnotapplytolossestotheextentcausedbyPermittor’soritsagents’,contractors’,oremployees’negligenceorwillfulmisconduct.30.3.GoverningLaw:ThisOperatingPermitshallbegovernedby,andconstruedandenforcedinaccordancewith,thelawsoftheStateofWashington.30.4.Severability:ShouldanyoftheprovisionsofthisOperatingPermitbefoundtobeinvalid,illegalorunenforceablebyanycourtofcompetentjurisdiction,suchprovisionshallbestrickenandtheremainderofthisOperatingPermitshallnonethelessremaininfullforceandeffectunlessstrikingsuchprovisionshallmateriallyaltertheintentionoftheparties.30.5.JurisdictionandVenue:IntheeventanyactionisbroughttoenforceanyoftheprovisionsofthisOperatingPermit,thepartiesagreetobesubjecttoexclusiveinpersonamjurisdictionintheSuperiorCourtoftheStateofWashingtoninandfortheCountyofKingorintheUnitedStatesDistrictCourtfortheWesternDistrictofWashington.30.6.Waiver:NowaiverofanyrightunderthisOperatingPermitshallbeeffectiveunlesscontainedinawritingsignedbyadulyauthorizedofficerorrepresentativeofthepartysoughttobechargedwiththewaiverandnowaiverofanyrightarisingfromanybreachorfailuretoperformshallbedeemedtobeawaiverofanyfuturerightorofanyotherrightarisingunderthisOperatingPermit.30.7.Captions:SectioncaptionscontainedinthisOperatingPermitareincludedforconvenienceonlyandformnopartoftheagreementbetweentheparties.30.8.AssigneeasPermittee:ThetermTPermitteeT’shallbedeemedtoincludetheassigneewherethereisafullassignmentoftheOperatingPermit.OPERATINGPERMIT19cityofRentontoAviationTrainingcenterAGENDA ITEM # 4.
30.9.Effectiveness:ThisOperatingPermitshallnotbebindingoreffectiveuntilproperlyexecutedanddeliveredbyPermittorandPermittee.30.10.GenderandNumber:AsusedinthisOperatingPermit,themasculineshallincludethefeminineandneuter,thefeminineshallincludethemasculineandneuter,theneutershallincludethemasculineandfeminine,thesingularshallincludethepluralandthepluralshallincludethesingular,asthecontextmayrequire.30.11.TimeoftheEssence:TimeisoftheessenceintheperformanceofallcovenantsandconditionsinthisOperatingPermitforwhichtimeisafactor.30.12.jointandSeveralLiability:IfPermitteeiscomposedofmorethanonepersonorentity,thentheobligationsofallsuchpersonsandentitiesunderthisOperatingPermitshallbejointandseveral.30.13.NoRecorclatjonWithoutConsentofPermittor:PermitteeshallnotrecordthisOperatingPermitoranymemorandumofthisOperatingPermitwithoutPermittor’spriorwrittenconsent.30.14.CumulativeRemedies:Noremedyorelectionhereundershallbedeemedexclusive,butshall,whereverpossible,becumulativewithallotherremediesatlaworinequity.30.15.CorporateAuthority:IfPermitteeisacorporationorlimitedliabilitycompany,eachindividualexecutingthisOperatingPermitonbehalfofsaidcorporationorlimitedliabilitycompanyrepresentsandwarrantsthatheisdulyauthorizedtoexecuteanddeliverthisOperatingPermitonbehalfofsaidcorporationorlimitedliabilitycompanypursuanttodulyenactedresolutionsorotheractionofsuchcorporationorlimitedliabilitycompanyandthatthisOperatingPermitisbindinguponsaidcorporationorlimitedliabilitycompanyinaccordancewithitsterms.30.16.Addenda:TheprovisionsofthisOperatingPermitshallbesubjecttothoseofanyAddendaandExhibitsattachedhereto.PERMITTEE:PERMITTOR:AviationTrainingCenterTHECITYOFRENTONaWashingtoncorporationaWashingtonmunicipalcorporationOPERATINGPERMIT20CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
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___By/L\cviz.z.Oia(/DenisLawits:Owner/PresidentMayorDate:/d7//Date:_______________//ATTEST:By_______________________JasonSeth,CityClerkDate:____________________Approvedastolegalform:LarryWarren,CityAttorneySTATEOFWASHINGTONCOUNOF:ss.OPERATINGPERMIT21CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
IcertifythatIknoworhavesatisfactoryevidencethatEisthepersonwhoappearedbeforeme,ands/heacknowledgedthats/hesignedthisirstrument,onoathstatedthats/hewasauthorizedtoexecutetheinstrumentandacknowledgeditasthe_
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_fortheusesandpurposesmentionedintheinstrument.Datedthis1dayof,201.——[Signatureft’NotaryjNotaryPublicStateofWashingtonANTHONYJNORRELL[PrintNameofIJotary]MyAppointmentExpiresMar24,2017—..INotaryPublicinandfortheStateofWashington,residingatScMAc7Q.4Mycommissionexpires:LifSTATEOFWASHINGTONss.COUNTYOFIcertifythatIknoworhavesatisfactoryevidencethat__________________________________isthepersonwhoappearedbeforeme,ands/heacknowledgedthats/hesignedthisinstrument,onoathstatedthats/hewasauthorizedtoexecutetheinstrumentandacknowledgeditasthe_____
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_EXHIBITASubleaseMapandLegalDescriptionOPERATINGPERMIT23CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
OPERATINGPERMIT24CityofRentontoAviationTrainingCenterAGENDA ITEM # 4.
EXHIBITASUBSUBLEASEAGREEMENTThisSubleaseAgreement(“Sublease”),datedasofMay18.2015.ismadeandenteredintobyandbetweenAceAviation.Inc..aWashingtoncoioration(“Landlord”)andAviationTrainingCenter,Inc.,aWashingtoncorporation(“Tenant”).LandlordandTenantagreeasfollows:Section1.Identification.1.1Premises.ThepremiseswhicharethesubjectofthisSublease(the“Premises’)areaportionofthethird(3rd)floorofthebuildinglocatedat289EastPerimeterRoad.Renton,WA,98057.whichportionthereofsubjecttothisSubleaseisidentifiedbyheavyblackoutliningontheattachedExhibitA(exceptforthesharedlobby,whichisidentifiedbyheavyredoutliningontheattachedExhibitA(“Lobby”)).togetherwithallimprovementslocatedthereon.ThePremisesconsistof2,694.5usablesquarefeetnotincludingtheLobby.TheentireparcelofrealpropertyonwhichthePremisesarelocatedisreferredtohereinasthe“Property.”andthebuildinginwhichthePremisesarclocatedisreferredtohereinasthe“Building.”Inadditiontotheofficespace,saidTenantwillhaveaccesstoIuncoveredaircrafttie-downspacelargeenoughtoaccommodateaCessna172orsimilarsizedaircraft.(SeeAircraftStorageAgreement).1.2Term.TheTermofthisSublease(the“Term”)shallcommenceonthelaterof(i)thedateLandlordcompletestherepairsspecifiedinparagraph1.10belowor(ii)thedateofthisSubleaseand,subjecttoearlierterminationorextensionasprovidedforelsewhereinthisSublease,shallautomaticallyexpireonthelastdayofthesixtieth(60th)fullcalendarmonthafterthedateonwhichtheTermcommences.1.3OptionstoExtendTerm.SolongasthisLeasehasnotbeenterminatedforanyreason.theTenant,shallhavetherighttoextendthetermofthisLeaseforanadditionaltermof(60)monthsbeyonditsoriginalterm.WrittennoticethatTenantwouldliketoexercisethisoptionwillneedtobesubmittedtoLandlordnolaterthan(90)dayspriortotheexpirationoforiginalterm.Rent,issubjecttoadjustmenttocurrentmarketrateatthetimetheextendedtermbeginsandthroughthedurationoftheextendedterm.IfTenanthasdifferentownershipatorbeforetheoptionisexercised.theextensionapprovalwillbesubjecttoLandlordapprovalofnewowners.1.4MonthlyRentandOtherCharges.(a)MonthlyRent.ThemonthlyrentpayablebyTenantpursuanttoparagraph4.1andSection4shallbe$4,041.75,whichconsistsof$18.00perusablesquarefootofthePremisesperyear:providedthatthemonthlyrentforthefirstfullcalendarmonthoftheTermshallhezero($0).AGENDA ITEM # 4.
Asingletie-downspacewillbeprovidedtoTenantatnoadditionalcost.Intheeventenantwouldlikeadditionalspots.theratewillbeSI10permonth.perspot.RateisassumingaCessnaI72orsimilarlysizedaircraft.(b)SecurityDeposit.ThesecuritydepositpayablebyTenantpursuanttoparagraph4.6shallbe$5,838.09.(c)TripleNetExpenses.TheinitialmonthlypaymentbyTenantforitsProrationAmountofTripleNetExpensespursuanttoparagraph4.9shallbe$1,796.34,whichconsistsof$8.00perusablesquarefootofthePremisesperyear.1.5ProrationAmount.Tenant’spercentageofTripleNetExpenses,asdescribedelsewhereinthisSublease,(the“ProrationAmount”)shallbeeightand3tenthspercent(8,3%).SaidpercentageisequaltotheratiooftheusableareaofthePremisestothetotalusableareaoftheBuilding.TheProrationAmountshallbeadjustedatanytimetheratiooftherentableareaofthePremisestothetotalrentableareaoftheBuildingchanges.1.6TenantImprovementAllowance.ThetenantimprovementallowancepayablebyLandlordpursuanttoparagraph4.5shallbe$26,945.00.1.7Landlord’sAddress.Landlord’saddressforallpurposesunderthisSubleaseshallhe:Mr.KurtBoswellAceAviation.Inc.289E.PerimeterRoadRenton.WA980571.8Tenant’sAddress.Tenant’saddressforallpurposesunderthisSubleaseshallbe:Ms.MarieCampbellAviationTrainingCenter,Inc.289E.PerimeterRoad,ThirdFloorRenton.WA980571.9PermittedUse.TenantshallbepermittedtousethePremisesforthefollowingpurpose(s):pilottrainingandotherrelatedservicespermittedbylawandapprovedundertheairport’spurposesofuse.1.10.LandlordRepairs.PriortocommencementoftheTeniiLandlordshallmakethealterationsandrepairstothePremisessetforthontheattachedExhibitB.ExceptassetforthontheattachedExhibitB,LandlordshallnotbeobligatedtoalterorrepairthePremisesorinstall,repairorreplaceanyfixturesorimprovementsinoraboutthePremises..11.Signage.TenantshallhavetherighttoinstallitsidentificationsignageontheinteriorwallsofthepremisesmentionedinParagraph1.1andontheinteriorentrydoorstotheLEASEACE-ATC-PAGE2AGENDA ITEM # 4.
Premises.providedthat(i)suchsignageandinstallationshallbeatTenant’ssolecostandexpense.(ii)suchsignageshallcomplywithallapplicablecodes.rulesandregulations.(ii)Landlordshallhavegivenitspriorwrittenconsenttosuchsignage,whichconsentshallnotbeunreasonablewithheld.and(iv)uponterminationoftheTerm,TenantshallremoveallsuchsignagefromtheBuildingandrepairanydamagetotheBuildingfromsaidsignageatitssolecostandexpense.TenantshallnotbepermittedtoinstallanyothersignageonoraboutthePremiseswithoutdirectwrittenapprovalfromtheLandlord.Section2.Sublease.2.1Subleasehold.SubjecttotheprovisionsofthisSublease,LandlordherebysubleasestoTenantandTenantherebysubleasesfromLandlordthePremisesfortheTerm.2.2CommonAreasandFacilities.SubjecttotheprovisionsofthisSublease,LandlordherebygrantstoTenantandTenant’semployees,customersandinviteesanonexciusivelicensetouse,duringtheTerm,incommonwithLandlord,othertenantsofLandlord,customersofothertenantsofLandlordandotherpersonsdesignatedbyLandlordorotherwisesoentitled,thecommonareasandfacilitiesfurnishedbLandlord(CommonAreas”)forusebythepersonsdescribedaboveinthisparagraph2.2(including,hutnotlimitedto,parkingandtrafficareas.sidewalks.landscaping.lightingfacilities,signsadjacenttoornearthePremises)forthepurposesforwhichsuchcommonareasandfacilitiesarefurnishedbyLandlord.Inaddition,LandlordherebypermitsTenanttouseportionsoftheLobbyasareceptionareaforTenant,providedthat(i)TenantshallnotobstructothersfromaccessingorusingtheLobby,(ii)LandlordanditsinviteesshallbefreetouseandaccesstheLobbyatalltimes,and(iii)TenantshallbesolelyresponsibleforsecurityofTenant’sfurniture,equipmentandotheritemslocatedintheLobby.AnyportionoftheLobbysousedbyTenantshallconstituteaportionofthePremisesforallpurposesunderthisSublease.Section3.Term.3.1Term.TheTermshallbefortheperioddescribedinparagraph.2.3.2EndoftheTerm.UpontheexpirationorterminationoftheTerm,Tenantshall:(a)removeallpersonalpropertyfromthePremises:(b)subjecttotherequirementsofSection8hereinafter,ifandasdirectedbyLandlord,removeanyorallofthefixtures,additions.alterations,modificationsorotherimprovementsinstalledinormadetothePremisesafterthecommencementoftheTermby,through,attherequestof,oronbehalfofTenantandrestorethePremisesastheyexisiedimmediatelypriortothemakingoftheimprovementssoremoved;and(c)surrenderthePremisestoLandlordinatleastasgoodconditionandstateofrepairasTenantisrequiredtokeepandmaintainthempursuanttothisSublease.reasonablewearandtearanddamagebyinsuredcasualtyexcepted.LEASE-AC’E-ATC-PAGE3AGENDA ITEM # 4.
IfTenantfailstoremoveanyimprovementsorrestorethePremisesasdirectedbyLandlordpursuantto(h)ofthisparagraph3.2,Landlordmay,atTenant’ssoleriskandexpense,performsuchremovalorrestoration(bycontractorotherwise)bythemostexpeditiousmeansavailabletoLandlord.TenantshallreimburseLandlordforallcostsandexpensesincurredbyLandlordtoaccomplishsuchremovalandrestoration.Further,ifTenantfailstoremoveallpersona]propertyfromthePremisesupontheexpirationorterminationoftheTerm,thesameshallbedeemedabandonedandLandlordshallbefreetouseordisposeofthesameatitsdiscretion,providedthatTenantshallreimburselandlordforanyandallcostsofsuchdisposition.3.3I-foldingOver.ifTenantremainsinpossessionofalloranypartofthePremisesaftertheexpirationorterminationoftheTerm.Landlordmayatitsoptioneither(a)pursueanyoralloftherightsandremediesavailabletoLandlordunderthisSubleaseorotherwisebylawfordefaultunderorbreachofthisSublease,or(b)permitTenanttoremaininpossessionofthePremisesasatenantundertheprovisionsofthisSublease;providedthatsuchtenancyshallbefrommonthtomonthonlyandshallnotbearenewalorextensionoftheTerm;andprovidedfurtherthattheRentforeachmonthofsuchholdoverperiodshallbethegreaterof(i)onehundredfiftypercent(150%)oftheRentpayableunderthisSubleaseforthelastfullcalendarmonthoftheTermor(ii)suchamountasLandlorddesignatesinawrittennoticetoTenantatleastfortyfive(45)dayspriortothecommencementofsuchmonth.Section4.Rent,SecurityDeposit,TaxesandCommonAreaMaintenanceCharges.4.1MonthlyRent.TenantshallpaytoLandlordtheapplicableamountofrentspecifiedinparagraph1.4(a)onorbeforethefirstdayofeachcalendarmonthoftheTerm,exceptthatthemonthlyrentforthesecondfullcalendarmonthoftheTermshallbepaiduponexecutionofthisSublease;providedthatsuchamountshallbeproratedforanypartialmonthoftheTermbasedonathirty(30)daymonth.TenantshallmakesuchpaymenttotheorderofLandlordinlawfulmoneyoftheUnitedStatesattheaddresssetforthinparagraph1.7(oratsuchotherplaceorpayeeasLandlordmaydesignateinTiting)withoutdeduction,offsetorpriornoticeordemand.4.2NoAccordandSatisfaction.IfTenantpays,orLandlordotherwisereceives,alesseramountthanthefullrentprovidedforunderthisSublease,suchpaymentorreceiptshallnotconstituteorbeconstruedotherthanasonaccountoftheearliestrentdue.LandlordmayacceptanycheckorpaymentinanyamountwithoutprejudicetoLandlord’srighttorecoverthebalanceoftherentorpursueanyotherrightorremedy.Noendorsementorstatementonanycheckorpaymentorelsewhereshallconstituteorbeconstruedasanaccordorsatisfaction.Landlord,initssolediscretion,mayapplyanyamountreceivedfromTenantunderthisSubleasetoanyamountpayablebyTenantunderthisSubleaseorotherwise.4.3LateCharges.TenantherebyacknowledgesthatlatepaymentbyTenanttoLandlordofrentorothersumsduehereunderwillcauseLandlordtoincurcostsnotcontemplatedbythisSublease,theexactamountofwhichwillbeextremelydifficulttoascertain.Suchcostsinclude.butarenotlimitedto,processingandaccountingchargesandlatechargeswhichmaybeimposeduponLandlordbytermsofanymortgageortrustdeedcoveringthePremises.Accordingly,ifanyLEASE-ACE-ATC-PAGE4AGENDA ITEM # 4.
installmentofrentorofasumduefromTenantshallnotbereceivedbyLandlordwithinfive(5)daysafterthedatedue,TenantshallpaytoLandlordalatechargeattherateoffivepercent(5%)permonthofsuchoverdueamountforeachmonthorportionthereofthatthepaymentremainsoverdue.ThepartiesherebyagreethatsuchlatechargerepresentsafairandreasonableestimateofthecostthatLandlordwillincurbyreasonofthelatepaymentbyTenant.AcceptanceofsuchlatechargesbyLandlordshallinnoeventconstituteawaiverofTenant’sdefaultwithrespecttosuchoverdueamount.norpreventLandlordfromexercisinganyoftheotherrightsandremediesgrantedhereunder.4.4AdditionalRent.AllotheramountspayablebyTenanttoLandlordptirsuanttothisSubleaseshallconstituteadditionalrent.4.5TenantImprovementAllowance.LandlordshallreimburseTenantforitscostsincurredininstallingimprovementsinthePremisesintheamountsetforthinparagraph1.6(the“TIAllowance”).LandlordshallpaytheTIAllowancetoTenantwithinthirty(30)daysafterthelaterof(i)thedateTenantopensforbusinessinthePremises,or(ii)thedateTenantremovesallliensandpotentialliensarisingfromimprovementsinstalledinthePremisesbyorthroughTenantandfurnishesLandlordwithsatisfactoryevidenceofsuchremoval(includingbutnotlimitedtoevidencethatallvendors,materialsuppliersandcontractorswhohavefurnishedLandlordpre-liennoticeshavebeenpaidinfull).IfLandlordfailstopaytheTIAllowancetoTenantinaccordancewiththisparagraph8.5,TenantshallhavetherighttooffsettheamountoftheTIAllowanceagainstthemonthlyrentnextconlingdueuntilfullyoffset.4.6.SecurityDeposit.OnorbeforecommencementoftheTerm,TenantshalldepositwithLandlordthesecuritydepositspecifiedinparagraph1.4(b)assecurityforthefaithfulperformancebyTenantofalltheterms.covenants,andconditionsofthisSubleasetobekeptandperformedbyTenantduringtheTerm.IfTenantdefaultswithrespecttoanyprovisionofthisSublease,including,butnotlimitedtotheprovisionsrelatingtothepaymentofrent,Landlordmay(butshallnotberequiredto)use,applyorretainalloranypartofthissecuritydepositforthepaymentofanyrentoranyothersumindefault,orforthepaymentofanyamountwhichLandlordmayspendorbecomeobligatedtospendbyreasonofTenant’sdefault,ortocompensateLandlordforanyotherlossordamagewhichLandlordmaysufferbyreasonofTenant’sdefault.Ifanyportionofsaiddepositissousedorapplied,Tenantshall,withinfive(5)daysafterwrittendenäandtherefor,depositcashwithLandlordinanamountsufficienttorestorethesecuritydeposittoitsoriginalamount,andTenant’sfailuretodososhallbeamaterialbreachofthisSublease.Landlordshallnotberequiredtokeepthissecuritydepositseparatefromitsgeneralfunds,andTenantshallnotbeentitledtointerestonsuchdeposit;Landlord’sobligaticnswithrespecttothesecuritydepositarethoseofadebtorandnotofatrustee.IfTenantshallfullyandfaithfullyperformeveryprovisionofthisSubleasetobeperformedbyit,thesecuritydepositoranybalancethereofshallbereturnedtoTenant(or,atLandlord’soption,tothelastassigneeofTenant’sinteresthereunder)withinthirty(30)daysafterexpirationoftheTerm.IntheeventofterminationofLandlord’sinterestinthisSublease.LandlordshalltransfersaiddeposittoLandlord’ssuccessorininterest.LEASE-ACE-ATC-PAGESAGENDA ITEM # 4.
4.7TaxesandAssessments.Tenantshallpaybeforedelinquencyalltaxes,assessments,licensefeesandotherchargesortaxesthatareleviedorassessedagainstTenant’sleaseholdimprovements,equipment,furniture,fixturesandpersonalpropertyinstalledorlocatedinoronthePremises,orinrespecttoTenant’soccupancy,useorpossessionofthePremises.Inaddition,TenantshallreimburseLandlordforTenant’sProrationAmountofalladvaloremrealpropertytaxesandassessmentsthatareleviedagainsttheProperty,foranyperiodincludedwithintheTerm(andexcludinganysuchtaxesorassessmentsleviedforanyperiodoutsidetheTerm)(“TaxesandAssessments”),aspartofreimbursementforTripleNetExpensespursuanttoparagraph4.9.TaxesaridAssessmentsshallincludeanyleaseholdtaxes,businessandoccupationtaxesandtaxesorlicensefeesuponormeasuredbytheleasingofthePropertyortherentsorotherincomecollectedtherefrom.NothingcontainedinthisSubleaseshallrequireTenanttopay,norshallTaxesandAssessmentsinclude,anyestate,inheritance,succession,capitallevy,corporatefranchise,transfer,capitalgainsorincometaxofLandlord,penaltiesincurredduetoLandlord’snegligenceorunwillingnesstopaytaxeswhendue.4.8InsurancePremiums.TenantshallreimbursetoLandlordTenant’sProrationAmountofLandlord’scostofprovidingtheinsurancedescribedinparagraph11.2duringtheTerm(“InsurancePremiums”),aspartofreimbursementforTripleNetExpensespursuanttoparagraph4.9.4.9TripleNetExpenses.4.9.1Definition.Asusedherein,theterm“TripleNetExpenses”shallmean:(i)TaxesandAssessments,asdefinedinparagraph4.7;(ii)InsurancePremiums,asdefinedinparagraph4.8;(iii)utilitychargesfortheCommonAreasandchargesforutilitiesandserviceswhicharenotseparatelymeteredtothePremisesorothertenants’premises,asdescribedinparagraph6.2;and(iv)allotherexpenses,costsandamountsofeverykindandnaturewhichLandlordshallpayduringanycalendaryearanyportionofwhichoccursduringtheTerminconnectionwiththemanagement,repair.maintenance,replacement,insuranceandoperationoftheBuildingortheProperty,including,withoutlimitation,anyamountspaidfor:(a)permits,licensesandcertificatesnecessarytooperateandmanagetheBuildingortheProperty,andcostsofcomplyingwithotherlegalrequirements,including,withoutlimitation,the“ADA”(asdefinedinParagraph7.8),(b)supplies,materials,tools,equipment,floorcareandcleaning,andotherservicesfortheBuildingandtheProperty,includingrental,installmentpurchaseandfinancingagreementsthereforandinterestthereunder,(c)accounting.legal,inspection,consultingandotherservices.(d)wages,salaries,bonuses,andothercompensationandbenefitsforanymanager.personnelandotherpartiesengagedintheoperation,maintenanceorsecurityoftheBuildingortheProperty,andemployer’sSocialSecuritytaxes,unemploymenttaxesorinsurance,andanyothertaxeswhichmaybeleviedonsuchwages,salaries,compensationandbenefits,dataorpayrollprocessingexpensesrelatingthereto(ifthemanagerorotherpersonnelarelocatedoff-siteandhandleotherproperties,theforegoingexpensesshallbeallocatedappropriatelybetweenthePropertyandsuchotherproperties),(e)alarmmonitoringandsecurityservice,trashremoval,removaloficeandsnow(andsaltingandsandinginconnectiontherewith).(f)appropriatereservesforoperationoftheBuildingandthePropertyandforcoveringuninsuredportions.includingdeductibleamounts,ofcasualtydamageandgeneralLEASE-ACE-ATC-PAGE6AGENDA ITEM # 4.
liabilityclaimsrelatingtotheBuildingortheProperty,and(g)operation,maintenance,repair,installation.replacement.inspection,testing.painting,decoratingandcleaningoftheCommonAreas,theProperty’ssystemsandequipment,andtheBuilding’sguttersanddownspouts,roofflashingsandroof.TheforegoingprovisionisfordefinitionalpurposesonlyandshallnotbeconstruedtoimposeanyobligationuponLandlordtoincursuchexpenses.Notwithstandingtheforegoing.TripleNetExpensesshallnotinclude:(1)interestandamortizationonmortgagesandotherdebtcostsorgroundSubleasepayments,ifany,exceptasprovidedherein;(2)depreciationofbuildingsandotherimprovements;(3)improvements,repairsoralterationstospacessubleasedtoothertenants;(4)thecostofprovidinganyservicedirectlytoandpaiddirectlyby,anysubtenant;(5)costsofanyitemstotheextentLandlordreceivesreimbursementfrominsuranceproceedsorfromathirdparty(suchproceedstobedeductedfromTripleNetExpensesintheyearinwhichreceived);(6)managementfeesforthePropertyinexcessoffivepercent(5%)oftheamountsdescribedinthisparagraph4.9.1(iv);and(7)capitalexpenditures,exceptthosemadeprimarilytoreduceTripleNetExpenses,ortocomplywithanylawsorothergovernmentalrequirements,orforrepairsorreplacements(asopposedtoadditionsornewimprovements).4.9.2DeterminationandPayment.TenantshallpayLandlord,asadditionalrent,theProrationAmountoftheTripleNetExpensespaidorincurredbyLandlordduringtheTerm.FortheperiodcommencingwiththecommencementoftheTermthroughandincludingthefirstDecemberoftheTerm.TenantshallmakesaidpaymentbypayingLandlordtheamountsetforthinparagraph1.4(c)concurrentlywithTenant’sregularmonthlyrentalpayment.Thereaftersaidpaymentshallbedeterminedandpaidinaccordancewiththefollowingprocedure.LandlordshallexercisediligenteffortstogivetoTenantonorbeforethethirtyfirst(31St)dayofMarchofeachcalendaryearoftheTermastatementoftheTripleNetExpensesmcun’edduringthepreviouscalendaryear,butfailurebyLandlordtogivesuchstatementbysaiddateshallnotconstituteawaiverbyLandlordofitsrighttocollectsuchamountfromTenant.TheProrationAmountofTripleNetExpensessetforthinsaidstatementshallbedividedintotwelve(12)equalmonthlyinstallments,andTenantshallpaytoLandlordanamountequaltoone(1)suchmonthlyinstallmentconcurrentlywiththeregularmonthlyrentalpaymentsforthebalanceofthatcalendaryearandthereafteruntilthenextyear’sstatementisrendered.IfanysuchstatementshowsanincreaseinTripleNetExpensesovertheTripleNetExpensesfortheprioryear(forsuchpurposetheTripleNetExpensesforthefirstyear(orpartialyear)oftheTermshallbetheamountwhich,whenmultipliedbyTenant’sProrationAmountanddividedbytwelve(12),yieldstheamountsetforthinparagraph1.4(c)),sothatTenanthasunderpaidTripleNetExpensesforthatportionofthecalendaryearprecedingLandlord’sstatement.thenuponreceiptofsuchstatementfromLandlord,Tenantshallpayalumpsumequaltothetotalamountsounderpaid.IfinanyyearTenant’sProrationAmountofTripleNetExpensesislessthantheprecedingyear,andTenanthasoverpaidTripleNetExpensesforthatportionofthecalendaryearprecedingLandlord’sstatement.thenuponreceiptofLandlord’sstatement,thetotalamountofsuchoverpaymentshallbecreditedtowardsthenextmonthlyrentfallingdue.WhenthefinaldeterminationismadeofTenant’sProrationAmountofTripleNetExpensesfortheyearinwhichtheTermterminates.TenantshallimmediatelypayanyincreasedueoverTripleNetExpensechargespaidandconverselyanyoverpaymentmadeintheeventsaidexpensesdecreaseLEASE—ACE-ATC-PAGE7AGENDA ITEM # 4.
shallbeimmediatelyreimbursedbyLandlordtoTenantthroughthedateofsuchtermination,regardlessofthefactthatTenantmax’alreadyhavevacatedthePremisespriortothattime.4.9.3.AuditRights.Duringreasonablebusinesshoursanduponatleastthirty(SO)dayspriorwrittennotice.Tenant,orTenant’sauthorizedagent,shallhavetheright,notmorefrequentlythanonceinanycalendaryear,toexamineandphotocopyallofLandlord’s(orLandlord’sagent’s)booksandrecordspertainingtoTripleNetExpenses.Anyover-billingdiscoveredbysuchauditshallbepromptlyrefundedtoTenant,andanyunder-billingdiscoveredbysuchauditshallbepromptlypaidbyTenant.Intheeventanoverstatementofchargesexceedsfivepercent(5%)ofthesumpreviouslybilledtoTenantbyLandlord,LandlordshallreimburseTenantforallreasonableexpensesofsuchaudit.LandlordshallretainitsbooksandrecordsregardingTripleNetExpensesforaperiodofatleasttwo(2)yearsfollowingthefinalbillingforthecalendaryearinquestion.Exceptinthecaseoffraudorasprovidedinthenext-followingsentence,TenantshallhavenorighttoexamineorauditLandlord’sbooksandrecordsaftertheexpirationofthetwo(2)yearperioddescribedintheprecedingsentenceduringwhichLandlordisobligatedtoretainsuchbooksandrecords.Notwithstandingtheforegoing,ifduringthecourseofapermittedexamination,amaterial,systematicerrorisdiscovered,thenTenantshallbeentitledtoanyover-hilledamountsresultingfromsucherrorregardlessofwhensucherroroccurred.Section5.UseandAcceptanceofPremises.5.1PermittedBusinessandActivities.TenantshalluseorpermittheuseofthePremisesonlyforthepurposeidentifiedinparagraph1.9.TenantshallnotuseorpermittheuseofthePremisesforanyotherpurposewithoutthepriorwrittenconsentofLandlord,whichconsentmaybewithheldordeniedinLandlord’ssolediscretion.Landlordmakesno(andTenantackiowledgesthatLandlordhasnotmadeany)representationorwarrantyastothesuitabilityofthePremisesfortheconductofTenant’sbusinessoractivities.TenantherebywaivesanyrighttoterminatethisSubleaseonthegroundthatthePremisescannotnoworhereafterbeusedforsuchbusinessoractivities.5.2ProhibitedUses.TenantshallnotuseorpermitanyuseofthePremisesthatwillinanyway(i)conflictwithanyapplicablelaw,statute.regulation,ordinance,rule,orderorotherrequirement.noworhereafterineffect,ofanygovernmentalauthority,(ii)causeorconstituteanynuisance,noxiousodors,unsafeconditionorwasteinorabouttheProperty,(iii)causeorconstituteanysound.vibrationorelectricaldisturbanceoutsidethePremises,or(iv)causeacancellation,increasethepremiumsforordeductiblesunder(unlesssuchpremiumsordeductiblesarepayableinfullbyTenantpursuanttothisSublease),orotherwiseadverselyaffectinamaterialwayanyfIre.casualty,property.liabilityorotherinsurancecoveringtheProperty,thecontentsofthePremises,anybusinessoractivitiesconducteduponorfromthePropertyoranyaccident,act,error,omission.fault.negligenceorstrictliabilityoccurringonorabouttheProperty.5.3AcceptanceofPremises.Tenant’stakingpossessionofthePremisesshallconclusivelyestablish(i)thatTenanthasvisuallyexaminedthePremises.(ii)thatthePremiseslEASE-ACE-ATC-PAGE8AGENDA ITEM # 4.
areatsuchtimeingoodandsatisfactoryconditionandstateofrepair,withoutvisibledefect,andincompliancewiththisSubleaseexcepttotheextentspecifiedinawrittennoticedeliveredbyTenanttoLandlordwithinfive(5)businessdaysafterTenanttakespossessionofthePremises.(iii)Tenant’sacceptanceofthePremisesasisexcepttotheextentsetforthinparagraph1.10,and(iv)thatLandlordhasftillysatisfiedanyobligationsofLandlordtoinstallanyfixtureormakeanyaddition,alteration.modificationorotherimprovementtothePremisesexcepttotheextentsetforthinparagraph1.10.5.4CompliancewithLaws.TenantshallnotusethePremisesorpermitanythingtobedoneinoraboutthePremiseswhichwillinanywayconflictwithanylaw,statute,regulation,ordinanceorotherrequirementofanygovernmentalauthoritynowinforceorwhichmayhereafterheenactedorpromulgated.Tenantshall,atitssolecostandexpense,promptlycomplywithalllaws.statutes,regulations.orders,rules.ordinancesandotherrequirementsofanygovernmentalauthoritynowinforceorwhichmayhereafterbeinforce,andwiththerequirementsofanyboardoffireinsuranceunderwritersorsimilarbodiesnoworhereafterconstitutedrelatingto,oraffectingthcondition,useoroccupancyof,thePremises,excludingstructuralchangesnotrelatedtooraffectedbyTenant’simprovementsoracts.ThejudgmentofanycourtofcompetentjurisdictionortheadmissionofTenantinanyactioninvolvingTenant,whetherLandlordbeapartytheretoornot.thatTenanthasviolatedanylaw,statute,regulation,order,rule,ordinanceortherequirementofanygovermuentalauthorityshallbeconclusiveofthatfactasbetweenLandlordandTenant.Tenantwarrantsthatitis,andthatatalltimesduringtheTermitshallhe,properlyauthorized,licensed,experienced,equipped,organizedandfinancedtoperformthisSubleaseandconductitsbusinessandactivitiesuponthePremises.5.5Auctions.Tenantshallnotconductorpermittobeconductedin,onorfromthePremisesanyauctionoranyfire,“goingoutofbusiness,”“closeout,”bankruptcyorsimilarsale,whethersaidauctionorsalebevoluntary,involuntary,pursuanttoanassignmentforthebenefitofcreditorsorpursuanttoanybankruptcyorotherinsolvencyproceeding,withoutLandlord’spriorwrittenconsent,whichconsentLandlordmaygrantorwithholdinitssolediscretion.Section6.UtilitiesandServices.6.1IfSeparatelyMeteredorCapableofBeingSegregated.Tenantshallfurnish,andpaybeforedelinquencyallchargesfor,allwater,gas,electric,communications,sanitation,sewage,wastedisposal,garbagecollectionandotherutilitiesandservicesforthePremiseswhichareseparatelymeteredforthePremisesorthechargesforwhichareotherwisecapableofbeingsegregatedandbilledtotheoccupantofthePremises.TotheextentsuchseparatemetersaresubnietersinstalledbyLandlordorTenant,TenantshallpayforthesubjectutilitiesatthesameratesasLandlordpaystherefor,andshallpaytheapplicableamountstoLandlord.TenantshallbepermittedtoinstallandactivateseparatesubmetersforthePremisesatTenant’ssoleexpense.Intheeventthatthepremisesarenotthesolepropertybeingmetered,theappropriatepro-ratashare(2,694.5sqft)ofthatmeteredareawillbeallocatedtotheTenantforpayment.6.2IfNotSeparatelyMetered.TenantshallreimburseLandlord,aspartofpayingTripleNetExpensesinaccordancewithparagraph4.9,fortheProrationAmountofallcostsincurredLEASE-ACE-ATC-PAGE9AGENDA ITEM # 4.
(a)infurnishingutilitiesorservicestotheBuildingwhicharenotseparatelymeteredtothePremisesorothersubtenantpremises,or(b)infurnishingutilitiestotheCommonAreas.Landlordshallnotbeliableunderanycircumstancesforalossoforinjurytopersonsorproperty,howeveroccurring,throughorinconnectionwithorincidentaltofailuretofurnishanyutility.6.3Capacity.TenantshallnotinstallanyequipmentorotherwiseusethePremisesinanymaimerthatexceedsoroverloadsthecapacityofthefacilitiesfurnishingutilitiesorservicesforthePremises.Section7.MaintenanceandRepair.7.1MaintenanceandRepairsByLandlord.ThroughouttheTermLandlordshallmaintain(i)theroofofthePremisesinawatertightcondition,(ii)theexteriorwallsandf’oundationofthePremisesingoodconditionandstateofrepair,(iii)theCommonAreas,includingtheparkinglot,parkinglotlightingandlandscapingforthePropertyingoodcondition,and(iv)theheating,ventilatingandairconditioningsystemofthePremisesingoodoperatingcondition.TenantshallreimburseLandlordforsuchmaintenanceinaccordancewithparagraph4.9ofthisSublease;providedthatTenantshallreimburseLandlord,withinthirty(30)daysofthedateLandlord’sinvoicetherefor,forthefullcostofanysuchmaintenancewithrespecttodamagescausedbynegligentorwillfulactsoromissionsofTenantoritsinviteesoragents.7.2MaintenancebyTenant.OtherthanwithrespecttomaintenanceitemstobeperformedbyLandlord,assetforthinparagraph7.1,TenantshallmaintainthePremisesandallfixturesandimprovementsinoraboutthePremises(i)inaneat,clean,sanitary,safeandgoodconditionandstateofrepair,(ii)inatleastasgoodconditionandstateofrepairastheyarenowin(ormayhereafterbeput),reasonablewearandtearanddamagebyinsuredcasualtyexcepted,and(iii)inaccordancewiththestandardsofcomparablecommercialfacilitiesintheRenton,Washingtonarea.TenantshallpromptlyreplacealldoorsandwindowsofthePremisesthatmaybecomecrackedorbroken.7.3RepairsbyTenant.Exceptasprovidedforinparagraph7.1,intheeventofanydamagetoordestructionofalloranypartofthePremisesoranyfixturesorimprovementsinoraboutthePremises.Tenantshallrepair,replaceorotherwiserestorethesametoatleastasgoodconditionandstateofrepairasexistedimmediatelypriortotheoccurrenceofsuchdamageordestruction.Withoutlimitingthegeneralityoftheforegoing,TenantshallpromptlyrepairanydamagetothePremisesoranyfixturesorimprovementsinoraboutthePremisesresultingfromtheinstallation,modification,useorremovalofanypersonalproperty,fixturesorimprovementsinoraboutthePremises.7.4RepairsbyLandlord.PromptlyuponexecutionofthisSublease,Landlordshallperformsuchalterations,repairsorreplacementstothePremises,ifany.asaredescribedinparagraph1.10.7.5CertainInsuredCasualties.IntheeventthePremisesaredamagedordestroyedbyanycasualtywhichiscoveredunderfireandalliedperilsinsurancefurnishedbyLandlordLEASE-ACE-ATC-PAGE10AGENDA ITEM # 4.
pursuanttothisSublease.thenLandlordshallrestorethePremises,providedinsuranceproceedsareavailabletopayonehundredpercent(100%)ofthecostofrestorationorTenantagreesinwritingtopayallcostsofrestorationinexcessofavailableinsuranceproceedsandfurnishesevidencereasonablyacceptabletoLandlordofTenant’sabilitytopaysuchcosts.Insuchevent,thisSubleaseshallcontinueinfullforceandeffect,exceptthatTenantshallbeentitledtoaproportionatereductionofthemonthlyRentwhilesuchrestorationtakesplace;suchproportionatereductionshallbebasedupontheextent(ifany)towhichthedamageordestructionandrestorationeffortsinterferewithTenant’sbusinessoractivitiesuponthePremises.7.6CertainOtherCasualties.IntheeventthePremisesaredamagedordestroyedbyacasualtynotcoveredbyinsurance,oriftheavailableinsuranceproceedsarelessthanonehundredpercent(100%)ofthecostofrestorationandTenanthasnotagreedinwritingtopayallcostsofrestorationinexcessofavailableinsuranceproceedsandfurnishedevidencereasonablyacceptabletoLandlordofitsabilitytopaysuchcosts,thenLandlordshallhavetheoptiontoeither:(a)restorethePremises,inwhicheventthisSubleaseshallcontinueinfullforceandeffect.buttheRentshallheproportionatelyreducedinthemannersetforthinparagraph7.5;or(b)givenoticetoTenant,atanytimewithinsixty(60)daysaftertheoccurrenceofsuchdamageordestruction,terminatingthisSubleaseasofadatespecifiedinsuchnotice.whichdateshallbenotlessthanthirty(30)daysnormorethansixty(60)daysaftergivingsuchnotice.IfLandlordelectstorestorethePremisesandthePremisesarenotfullyrestoredwithinsix(6)monthsaftertheoccurrenceofthedamageordestruction,TenantmaygivenoticetoLandlord,atanytimeaftertheexpirationofsuchsix(6)monthperiod,terminatingthisSubleasethirty(30)daysafterLandlord’sreceiptofsuchnoticeifthePremisesarenotfullyrestoredattheendofsuchthirty(30)dayperiod.IfLandlordelectstoterminatethisSubleaseinaccordancewiththisparagraph7.6,thisSubleaseshallterminateandthemonthlyRent,proportionatelyreducedbasedupontheextent(ifany)towhichthedamageordestructioninterfereswithTenant’sbusinessoractivitiesuponthePremises.shallbepaidtothedateofsuchtermination.7.7CasualtyNearEndoftheTerm.NotwithstandinganyotherprovisionofthisSection7tothecontrary,Landlordshallnothaveanyobligationwhatsoevertorepair.orrestorethePremiseswhenthedamageordestructionresultsfromanycasualtyoccurringduringthelastsix(6)monthsoftheTerm(includinganyextensionthereof).Insuchevent,TenantmayatitsoptionterminatethisSubleaseastoanyportionofthePremisesrendereduntenantablebysuchcasualtybygivingLandlordatleastthirty(30)days’advancewrittennoticethereof.Intheeventofsuchtermination,themonthlyRentshallbeproportionatelyreducedbasedupontheextent(ifany)towhichthedamageordestructioninterfereswithTenant’sbusinessoractivitiesuponthePremises.LEASE-ACE-ATC-PAGEIAGENDA ITEM # 4.
7.8AmericansWithDisabilitiesAct.ThepartiesacknowledgethattheAmericansWithDisabilitiesActof1990(42U.S.C.§l2l0ciseq.)andregulationsandguidelinespromulgatedthereunder.asallofthesamemaybeamendedandsupplementedfromtimetotime(collectivelyreferredtohereinasthe“ADA”)establishrequirementsforbusinessoperations,accessibilityandbatrierremoval,andthatsuchrequirementsmayormaynotapplytothePremisesandBuildingdependingon,amongotherthings:(i)whetherTenant’sbusinessisdeemeda“publicaccommodation”or“commercialfacility”,(ii)whethersuchrequirementsare“readilyachievable”,and(iii)whetheragivenalterationaffectsa“primaryfunctionarea”ortriggers“pathoftravel”requirements.Thepartiesherebyagreethat:(i)LandlordshallberesponsibleforADATitleIIIcomplianceintheCommonAreas,exceptasprovidedbelow,(ii)TenantshallberesponsibleforADATitleIllcomplianceinthePremises,includinganyleaseholdimprovementsorotherworktobeperformedinthePremisesunderorinconnectionwiththisSublease,and(iii)Landlordmayperform,orrequirethatTenantperform,andTenantshallberesponsibleforthecostof,ADATitleIII“pathoftravel”requirementstriggeredbyalterationsinthePremises.TenantshallbesolelyresponsibleforrequirementsunderTitleIoftheADArelatingtoTenai’t’semployees.7.9Landlord’sObligations.ExceptasotherwisespecificallyprovidedforinthisSection7,Landlordshallnotbeobligatedtoalter,maintain,repair,replaceorotherwiserestonthePremisesoranyfixturesorimprovementsinoraboutthePremises.Section8.Fixtures,Additions,Alterations,ModificationsandOtherImprovements.8.1ByLandlord.PromptlyuponexecutionofthisSublease,Landlordshallinstall,repairorreplacesuchfixturesorimprovementsinoraboutthePremises,ifany,asaredescribedinparagraph1.10.Exceptasotherwisespecificallyprovidedforinparagraph1.10,Landlordshallnotbeobligatedtoinstallanyfixtureormakeanyaddition,alteration,modificationorotherimprovementtothePremises.8.2ByTenant.LandlordherebyapprovesofTenantinstallingthetenantimprovementsdescribedontheattachedExhibitC.Tenantshallnotmakeanystructuralorexterioraddition,oranyotheralteration.modificationorotherimprovementtothePremises(collectivelyreferredtoas“improvements”)withoutLandlord’spriorwrittenconsent,whichshallnotbeunreasonablywithheld.IfLandlordconsentstoanysuchimprovement,suchconsentmaybeconditioneduponrequirementsrelatingtothequality,appearanceandothercharacteristicsoftheimprovement,themannerinwhichtheimprovementistobeperformed,thepersonorentitythatistoperformtheimprovement,thescheduleandtimesforperformanceoftheimprovement,Tenant’sobtainingallapplicablepermitsatTenant’ssolecost.theremovalorsurrenderoftheimprovementattheexpirationorterminationoftheTemandanyothermattersreasonablydeemedpertinentbyLandlord.8.3Signage.LandlordherebyconsentstoTenant’sinstallingontheBuildingthesignagethatisdescribedinparagraphI.11.TenantshallnotinstallanyothersignageontheBuildingorthePropertywithoutLandlord’spriorwrittenconsent.LEASEACE-ATE-PAGE12AGENDA ITEM # 4.
8.4Ownership.Allfixtures.additions,alterations,modificationsorotherimprovementsinstalledinormadetothePremisesduringtheTerm.orby,through,attherequestoforonbehalfofTenant,shallautomaticallybecomethepropertyofLandlordwhensoinstalledormade.provided,however,thatanypersonalpropertyortradefixturessoinstalledormadeshallbeandremainthepropertyofTenantunlessanduntilsurrenderedtoLandlordupontheexpirationorterminationoftheTerm.Tenantshallpromptlytakesuchaction(including,butnotlimitedto,theexecution,acknowledgmentanddeliveryofbillsofsale,releasesandotherdocuments)asmayberequestedbyLandlordtoeffectuateandevidencetheownershipofsuchpropertybyLandlord.Section9.LiensandEncumbrances.9.1ArisinaOutofTenant’sOblinations.TenantshallkeepthePremisesfreefromhensandencumbrancesarisingoutoforinconnectionwithlabor,materials,goods,servicesorotheritemsfurnished,workperformedorobligationsincurredby,through,attherequestoforonbehalfofTenant.Ifalienshallatanytimebefiled,Tenantshalleithercausethesametobedischargedofrecordwithintwenty(20)days,orifTenant.inTenant’sdiscretionandingoodfaith.determinesthatsuchlienshallbecontested,Tenantshallfurnishsuchsecurityasmaybereasonablynecessary,inLandlordsdiscretion.to(i)preventanyforeclosureproceedingsagainstthePremisesduringthependencyofsuchcontest,or(ii)causethetitleinsurancecompanyofLandlord’schoosingtoremovesuchlienasamatteraffectingtitletothePremises.Ifanysuchlienorencumbranceisnotreleasedofrecordwithintwenty(20)daysaftertherecordationthereofor,alternatively,ifTenantshallfailtofurnishsecurityasprovidedinthisparagraph9.1,Landlordmay,atTenant’sexpense,securesuchreleasebypayment.postingofabondoranyothermeansavailabletoLandlord.TenantshallreimburseLandlordforallcostsandexpenses(including,butnotlimitedto,attorneys’fees)incurredbyLandlordtosecuresuchrelease,andshallotherwiseindernni’Landlordfromanydamagesarisingfromsuchlien.9.2Notices.TenantshallgiveLandlordatleasttwo(2)days’advancewrittennoticeofthefurnishingofanylabor,materials,goods,servicesorotheritems,theperformanceofanyworkortheincurrenceofanyobligationsby,through.attherequestoforonbehalfofTenantthatmaygiverisetoanymechanics’,materialmen’sorotherlienorencumbranceaffectingthePremises.LandlordmayatanytimepostandkeeppostedonthePremisesanynoticesfortheprotectionofthePremises.Landlordandanyotherpersonorentityhavinganyinterestinsuchpropertyfromanysuchliensorencumbrances.Section10.EntrybyLandlord.LandlordreservesandshallhavetherighttoenterthePremisesatallreasonabletimesduringnormalbusinesshourstoinspectthePremisesupon24hrTittennoticetotenant,toshow’themtoanypurchaserorholderofanymortgage,deedoftrustorothersecurityinstrument(aMortgagee”)oranyprospectivepurchaserorMortgagee,andtoexerciseanyrightsorremediesaffordedtoLandlordunderthisSubleaseorbylaworforanyotherlawfulpurposenotinconsistentwiththeprovisionsofthisSublease.Landlordmayretainand,uponLandlord’srequest,TenantshallprovideLandlordwithkeysthatunlockallofthedoorsinoraboutthelEASEACE-ATC-PAGE13AGENDA ITEM # 4.
Premises(excludingTenant’svaultsandsafes).TenantshallnotchangeanylocksonanysuchdoorswithoutLandlord’spriorwrittenconsent.IfTenantisnotpresenttoopenandpermitentryintothePremiseswhensuchentryisnecessaryduetoanemergency,LandlordmayenterwithoutpriornoticebyamasterkeyoranyothermeansavailabletoLandlordandanysuchentrybyLandlordshallnotinanyeventconstituteorbeconstruedasaforcibleorunlawfulentryinto,ordetainerof.thePremisesoranevictionofTenant.Section11.InsuranceandIndemnity.11.1Tenant’sInsurance.TenantshallmaintaininfullforceandeffectthroughouttheTermthefollowinginsurancecoverages:(a)PropertyInsurance.Fireandalliedperilsinsuranceinsuringallpersonalproperty(includingfixtures,improvements,andinventory)ofTenantonoraboutthePremisesinanamountequaltothefullreplacementvaluethereof,plussuchadditionalamountasmaybenecessarytocomplywithbuildingcodesineffectattimeofloss.Suchinsuranceshallinclude(butshallnotbelimitedto)theperilsoffire,extendedcoverage,vandalismandmaliciousmischief,andsuchbroadenedperilsasareconventionallyavailablefromtheinsuranceindustryasapartofwhatissometimestermed“packagepolicy.”SuchinsuranceshallnameTenantasthesolelosspayeeonsuchpolicyandrequirenotlessthatthirty(30)days’noticetoLandlordofmaterialmodification,alteration.cancellation,ornonrenewal.(b)LiabilityInsurance.Generalliabilityinsurancecoveringallclaimsarisingoutofaccidents,injury(includingdeath)toanypersonordamagetoanypropertyoccurringinoraboutthePremisesorinconnectionwiththepossession.useoroccupancyofthePremises,withlimitsofnotlessthanTwoMillionDollars($2,000,000)peroccurrenceandFiveMillionDollai’s($5,00’O,OOO)aggregatecombinedbodilyinjury(includingdeath)anddamagetoproperty.Suchgeneralliabilityinsuranceshallbeendorsedasadditionalinsureds“AceAviation,Inc.,itsofficers,directorsandrelatedentities,andpersonsorentitiesforwhichtheyareresponsible.”(c)Workers’compensationinsuranceasrequiredbylaw.TherequirementsofthisSubleaseastoinsurancetobemaintainedbyTenantshallnotinanywaylimitorqualifyanyoftheliabilitiesorobligationsassumedbyorimposeduponTenantunderorbyreasonofthisSublease.IfTenantfailstoprocureandmaintainsuchinsurance,LandlordmaydosoatTenant’sexpense.11.2Tenant’sInsurancePolicies.Allinsurancerequiredbyparagraph11.1shallbeplacedwithsuchinsurersandundersuchfonusofpoliciesasmaybereasonablyacceptabletoLandlord.Allpoliciesforsuchinsuranceshall:(a)nameinsuredsandincludetheendorsementsdescribedinparagraph11.1;and(h)heplacedinproperty/casualtyinsurancecompanieswhichhaveamostrecentratinggivenbyBest’sKeyRatingGuideofatleastA(Excellent)orVIIoraboveorinsuchotherLEASE—AQE-ATC-PAGE14AGENDA ITEM # 4.
companiesasLandlordmayapprove,whichapprovalshallnotbeunreasonablywithheldordelayed.TenantshallensurethatanypoliciesofinsuranceitcarriesasinsurancecoveringpropertyshallincludepermissionfromtheinsurancecompanytopermitTenantandLandlordtowaiveandreleasetheir“rightsagainsteachotherasrespectsinsuredproperty.”Tenantshallalsoensurethatpoliciesofinsuranceitcarriesasinsurancecoveringliabilityclaimsshallincludea‘crossliability’endorsementorprovisionwhichaffordscoverageintheeventoneinsuredshouldinitiatealiabilityactionagainstanotherinsured,bothasinsuredsundertheinsuranceoftheTenant.11.3EvidenceofInsurance.TenantshallpromptlydelivertoLandlordcertificatesofinsurancearidsuchotherevidenceandassuranceoftheinsuranceandpoliciesdescribedinparagraphs11.Iand11.2(suchascopiesofthepolicies)asLandlordmayrequest.Il.4LandlordasTrusteeofProceeds.LandlordshallbethetrusteeofinsuranceproceedspaidwithrespecttopropertyofLandlordinsuredbyTenantpursuanttothisSublease.SubjecttoexerciseofotherrightsunderthisSubleasebLandlord,suchproceedsshallbeusedforrepairofthePremisesfordamageresultingfromacasualtyinsuredagainstpursuanttothisSection11providedthat(i)TenantisnotthenindefaultunderthisSublease,and(ii)Tenantpromptlycommencestherepairs,replacementsandrestorations,ifany,requiredofTenantpursuanttothisSubleaseasaresultofthelossgivingrisetosuchproceedsinthemannerreasonablyspecifiedinadvancebyLandlord.IfTenantfailstosatisfactorilycompletesuchrepairs,replacementsandrestorations,LandlordmayapplysuchproceedsagainstanyamountspayableonaccountofLandlord’sperformancethereofpursuanttothisSublease.11.5Landlord’sInsurance.DuringtheTerm,Landlordshallmaintainsuchfire,casualtyandotherinsurancefortheBuildingandthePropertyasLandlord,initssolediscretion,seesfit.TenantshallreimburseLandlordfortheProrationAmountofLandlord’scostfOrmaintainingsuchinsurancepursuanttoparagraph4.9.11.6Indemnity.Tenantreleasesandshalldefend,indemnifyandholdhamilessLandlordanditsaffiliates.Landlord’sanditsaffiliates’successorsandassignsandtherespectiveofficers.directors,employees,agentsandrepresentativesofLandlord,itsaffiliatesandLandlord’sanditsaffiliates’successorsandassigns(the‘Indemnitees”)fromandagainstanyandallclaims,losses,harm,costs,liabilities,damagesandexpenses(including,butnotlimitedtoattorneys’fees)arising.whetherbeforeoraftertheexpirationorterminationoftheTerm,outoforinconnectionwith:(a)anyaccidentorinjury(includingdeath)toanypersonordamagetoanyproperty(includingthePremises)orenvironmentoccurringinoraboutthePremisesorinconnectionwiththepossession.useoroccupancyofthePremisesduringtheTeniorpursuanttothisSublease:LEASh-ACE-AICPAGE15AGENDA ITEM # 4.
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1714GoverningLaw.ThisSubleaseshallbeinterpreted,construedandenforcedinallrespectsinaccordancewiththelawsoftheStateofWashington.17.15Counterparts.ThisSubleasemayheexecutedintwoormorecounterparts,allofwhichshallconstituteoneandthesameagreement.17.16QuietEnjoyment.LandlordwarrantsthatithastherighttomakethisSublease,andthatTenant.ifnotindefault,shallhavequietandpeacefulpossessionandenjoymentofthePremisesfortheentireTerm.includinganyextensionthereof.inaccordancewiththeprovisionsofthisSublease.Landlord:Tenant:AceAviation,Inc.AviationTrainingCenter,Inc.By:
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_2015,beforeme,theundersigned,aNotaryPublicinandfortheStateo9Washington.dulycommissionedandsworn,personallyappearedKurtBoswell,tomeknowntobethePresidentofAceAviation,Inc.,thecorporationthatexecutedthewithinandforegoingSubleaseasLandlord,andacknowledgedthesaidSubleasetobethefreeandvoluntaryactanddeedofsaidcorporationfortheusesandpurposesthereinmentioned,andonoathstatedthathewasdulyqualifiedandactingassaidofficerofthecorporationandthathewasauthorizedtosoexecutesaidinstrument.INWITNESSWHEREOF,Ihavehereuntosetmyhandandaffixedmyofficialsealthedayandyearfirstabovewritten.PITANVENZHotOryPubiicto
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_MyCommissionExpiresSTATEOFWASHINGTON)COUNTYOFKING)Onthisdayof______________________,2015,beforeme,theundersigned,aNotaryPublicinandfortheStateo,Washington,dulycommissionedandsworn,personallyappearedMarieCampbell,tomeknowntobethePresidentofAviationTrainingCenter,Inc..thecorporationthatexecutedthewithinandforegoingSubleaseasTenant,andacknowledgedthesaidSubleasetobethefreeandvoluntaryactanddeedofsaidcorporationfortheusesandpurposesthereinmentioned,andonoathstatedthatshewasdulyqualifiedandactingassaidofficerofthecorporationandthatshewasauthorizedtosoexecutesaidinstrument.INWITNESSWI-IEREOF,Ihavehereuntosetmyhandandaffixedmyofficialsealthedayandyearfirstabovewritten.RITANYRENZNotaryPubflcStateofMyComrnissjorExpiresAp
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ExhibitAtoSubleaseAgreement—1rt---4ALEASE—ACE-ATC-PAGE27AGENDA ITEM # 4.
ExhibitBtoSubleaseAgreementLandlordshallperformthefollowingworkwithrespecttothePremisesatLandlord’ssolecostandexpense:WALLS:alltheperimeterwalls(buildingandexteriorwalls)ofthePremisesshallbeframedandinsulated,drywallwithfiretapefinishonthePremisesside.2FLOORS:concreteorgyp-cretethroughoutthePremises,levelsmoothfinishedandreadytoacceptcarpetorvinylfloorcoveringstobeappliedbythetenant(notafinishedproduct).3FIRESPRINKLERS:firesprinklersystemshallbeprovidedthroughouttheunimprovedPremises.Tenantshallberesponsibleformodificationsandadditionalfiresprinklerheadsrequiredtoprovidecompletedistributionandtriminallfinishedtenantimprovementareas.4PLUMBING:ProvisionshavebeenstubbedtoPremisesonly.Anyhardware,fixturesorpipingtothezonesinteriorortheperimetershallbeTenant’sresponsibility.5F-IVAC:heating,ventilationandairconditioningsystemcompletewithcurbs,electrical,gas,andcontrols,capableofprovidingupto500squarefeetinonezone.1-IVACsystemshallbestubbedouttoPremises.6HVACsystemshallbecapableofprovidingthefollowingambientdesignconditions:Summer83degreesdB/66degreesWBat0.5°/oWinter25degreesdB/at6%and21degreesdBat1%Insidedesignconditions70degreesheating/75degreescoolingTenantshallberesponsibleforductworkdistributionandexhaustfanswithinthePremises.7ELECTRICAL:Landlordshallfurnishandinstall120/208electricalservicesandpanelssizedadequatelytosupportafullyoccupiedofficesuite.WiringtothePremisesperimeterorcommonareaelectricalroom/closet.terminatedatapanelbox.Tenantshallheresponsibleforroughinandtrim,lightfixtures,outlets.telephonesystem,datasystemswithinthePremisesfromthelandlordprovidedpanels.8LOWVOLTAGE:LandlordshallprovidefirealarmpanelandextendfirealarmcablingandservicestothePremises.1:ASE—ACL-ATQ-PAGL28AGENDA ITEM # 4.
ExhibitCtoSubleaseAgreementTenantshallinstallthefollowingleaseholdimprovementsinthePremisesatTenantssolecostandexpense,subjecttoreimbursementofsomeorallofthecostthereofthroughtheTenantImprovementAllowance:Anypermitsrequiredbyapplicablegovernmentalauthoritiesrelatedtocompletionoftheleaseholdimprovements.2Framing,drywall,finishingofleaseholdimprovementswalls.3Interiordoors4Cabinets,casework.countertops,miliwork,andhardwarewithinthePremises.5Allpainting,staining,wallandfloorcoveringswithinthePremises.6Suiteentrydoorsandrelightsinperimeter,corridor,interioranddemisingwalls.7Allplumbingroughin,trim,fixtures,toiletaccessories,waterheatersrequiredtocompleteextensionoftheLandlord-providedplumbing.8Allelectricalroughinfrompointofconnectiontolandlord-providedpanels,trim,switching,lighting,wiringandequipmentwiring.9Anyskylightsorspecialceilingtreatments.10Acousticalceilinggrid,tileandsoundinsulation.11Interiorrelightsandglazing.12SpecialstructuralrequirementsmadenecessarybyTenantusage.13Securitysystems.14Phone,music.intercomandcommunicationssystems.15Specialties;includingpneumatictubesystems,compressedairorvacuumsystems.16Fireprotectionextension.roughin.trim,headsasrequiredtomeetlocaljurisdictionhavingperniitauthority.17HVACdistributionfromthelandlord/shell-providedsystem,exhaustfans,ductandgrillstoserveareaswithinthePremises.18Roofpatchesrequiredduetotenantimprovementwork(see9above);PROVIDEDTHATTENANTSHALLNOTMAKEANYEXTERIORORROOFPENETRATIONSWITHOUTPRIORWRITTENAPPROVALFROMLANDLORD.LEASE-ACE-ATC-PAGE29AGENDA ITEM # 4.
REGULAR COUNCIL - 14 Sep 2015
SUBJECT/TITLE: Burnett Avenue South/Renton Transit Center Street Closure
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: Dan Hasty, Transportation Planner
EXT.: 7217
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
Adopt the Resolution authorizing closure of Burnett Avenue South between South 2nd Street and South 3rd
Street from October 12 through October 19, 2015 in order to repair the broken concrete in the street
crossings.
EXHIBITS:
A. Issue Paper
B. Transit Center Street Closure Map
C. Resolution
STAFF RECOMMENDATION:
Adopt the Resolution authorizing closure of Burnett Avenue South between South 2nd Street and South 3rd
Street from October 12 through October 19, 2015 in order to repair the broken concrete in the street
crossings.
AGENDA ITEM # 5.
PUBLIC WORKS DEPARTMENT
M E M O R A N D U M
DATE:August 28, 2015
TO:Ed Prince, Council President
Members of the Renton City Council
VIA:Denis Law, Mayor
FROM:Gregg Zimmerman, Public Works Administrator
STAFF CONTACT:Dan Hasty, Transportation Planner, ext. 7217
SUBJECT:Burnett Avenue South/Renton Transit Center Street Closure
ISSUE:
Should Council adopt the Resolution to close Burnett Avenue South between South 2nd
Street and South 3rd Street from October 12 through October 19, 2015 in order to repair
the broken concrete in the street crossings?
RECOMMENDATION:
Adopt the Resolution to close Burnett Avenue South between South 2nd Street and
South 3rd Street from October 12 through October 19, 2015 in order to repair the
broken concrete in the street crossings.
BACKGROUND:
The project involves complete street closure of Burnett Avenue South between South
2nd Street and South 3rd Street and requires fencing off the construction zone as
outlined in yellow on the attached map. Burnett Avenue South, between South 2nd
Street and South 3rd Street, and the east-west Renton Transit Center access road will be
closed to both pedestrian and vehicular traffic for the duration of the project.
Pedestrian circulation will be maintained outside of the construction zone.
Transit agencies that operate through the Renton Transit Center (Sound Transit, King
County Metro and Pierce Transit) have been involved throughout the process. The
decision to close Burnett Avenue South for one week, in lieu of only closing one lane at
AGENDA ITEM # 5.
Ed Prince, Council President
Members of the Renton City Council
Page 2 of 2
August 28, 2015
a time and having the work stretch out for nearly a month, was requested by the three
transit providers.
If the City decided to keep one lane open through the Transit Center during
construction, it would be necessary to complete the work with multiple contractor
mobilizations and concrete pours. Thus, it would raise the cost to approximately
$10,000.
cc:Doug Jacobson, Deputy Public Works Administrator, Transportation
Jim Seitz, Transportation Planning Manager
Dan Hasty, Transportation Planner
Heather Ulit, Administrative Secretary I – Transportation
AGENDA ITEM # 5.
:i(II.—..‘r[;JjAGENDA ITEM # 5.
1
CITY OF RENTON, WASHINGTON
RESOLUTION NO. ________
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, AUTHORIZING THE
CLOSURE OF A PORTION OF BURNETT AVENUE SOUTH, FROM OCTOBER 12,
2015 THROUGH OCTOBER 19, 2015, BETWEEN SOUTH SECOND STREET AND
SOUTH THIRD STREET.
WHEREAS, the Renton Transit Center provides a central hub for both Metro and Sound
Transit to provide convenient and frequent connections to Seattle, Bellevue and other areas;
and
WHEREAS, due to the profuse daily bus traffic through the Renton Transit Center, the
concrete walkways have begun to break apart; and
WHEREAS, the cracked and broken concrete is a hazard to pedestrians, vehicles and the
buses that travel through the transit center on a daily basis; and
WHEREAS, it is necessary to close a portion of Burnett Avenue South in order to replace
the concrete walkways; and
WHEREAS, pursuant to RMC 9‐9‐3 the City Council must authorize such closures by
means of a resolution;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
RESOLVE AS FOLLOWS:
SECTION I. The above findings are true and correct in all respects.
SECTION II. The City Council does hereby authorize the closure from October 12,
2015 through October 19, 2015, of a portion of Burnett Avenue South, between South Second
Street and South Third Street.
AGENDA ITEM # 5.
RESOLUTION NO. _______
2
PASSED BY THE CITY COUNCIL this ______ day of _____________________, 2015.
______________________________
Jason A. Seth, City Clerk
APPROVED BY THE MAYOR this ______ day of _____________________, 2015.
______________________________
Denis Law, Mayor
Approved as to form:
______________________________
Lawrence J. Warren, City Attorney
RES:1679:8/25/15:scr
AGENDA ITEM # 5.
REGULAR COUNCIL - 14 Sep 2015
SUBJECT/TITLE: Aberdeen Avenue Northeast Speed Limit Reduction
RECOMMENDED ACTION: Refer to Transportation (Aviation) Committee
DEPARTMENT: Transportation Systems Division
STAFF CONTACT: Chris Barnes, Transportation Operations Manager
EXT.: 7220
FISCAL IMPACT:
Expenditure Required: $ N/A Transfer Amendment: $ N/A
Amount Budgeted: $ N/A Revenue Generated: $ N/A
Total Project Budget: $ N/A City Share Total Project: $ N/A
SUMMARY OF ACTION:
The Public Works Transportation Systems Division would like to reduce the speed limit on Aberdeen Avenue
NE from 30 miles per hour to 25 miles per hour between Sunset Blvd. NE and NE 27th Street. This
neighborhood lacks sidewalks along Aberdeen Avenue NE, so lower operation speeds will provide an
additional measure of safety for pedestrians, especially near Kennydale Lions Park.
EXHIBITS:
A. Issue Paper
B. Renton Municipal Code, Chapter 11 Speed Limits
C. Revision Map
D. Proposed Ordinance
STAFF RECOMMENDATION:
Approve the Ordinance amending Renton Municipal Code 10-11-1.B.10 reducing the speed limit from 30 miles
per hour to 25 miles per hour on Aberdeen Avenue NE between Sunset Blvd. NE and NE 27th Street.
AGENDA ITEM # 6.
PUBLIC WORKS DEPARTMENT
M E M O R A N D U M
DATE:August 18, 2015
TO:Ed Prince, Council President
Members of Renton City Council
VIA:Denis Law, Mayor
FROM:Gregg Zimmerman, Public Works Administrator
STAFF CONTACT:Chris Barnes, Transportation Operations Manager
SUBJECT:Aberdeen Avenue Northeast Speed Limit Reduction
ISSUE:
Should the Council approve the Ordinance to Renton Municipal Cod 10-11-1.B.10
reducing the speed limit from 30 miles per hour to 25 miles per hour on Aberdeen
Avenue NE between Sunset Blvd. NE and NE 27th Street?
RECOMMENDATION:
Approve the Ordinance to Renton Municipal Code 10-11-1.B.10 reducing the speed limit
from 30 miles per hour to 25 miles per hour on Aberdeen Avenue NE between Sunset
Blvd. NE and NE 27th Street.
BACKGROUND:
The speed limit on Aberdeen Avenue NE, north of NE 20th Street has an unclear
transition from 30 miles per hour to 25 miles per hour. South of NE 27th Street posted
signs have indicated the speed limit is 25 miles per hour, when it should be 30 miles per
hour.
The Renton Municipal Code 10-11-1.B.10 states, “The speed limit on Aberdeen Avenue
NE from Sunset Blvd. NE (SR 900) to NE 27th Street is established to be 30 miles per
hour.”
Since 1994 we have conducted four speed studies on Aberdeen Avenue NE and found
the operating speed to be between 28 and 37 miles per hour. Reducing the speed limit on Aberdeen Avenue NE from 30 miles per hour to 25 miles per hour will remain
AGENDA ITEM # 6.
Ed Prince, Council President
Members of Renton City Council
Page 2 of 2
August 18, 2015
consistent with national authoritative guidelines, including the MUTCD and common national practice.
Aberdeen Avenue NE has a playground and the pedestrian paths leading to it have sidewalk only at sporadic locations. Many local residents believe that the existing speed limit is too high considering that there is no barrier to protect pedestrians from vehicles
that depart the roadway. A 1998 study by the Federal Highway Administration has
found that lowering and raising the speed limit by as much as 15 miles per hour had no
significant changes in the rates of accidents, injuries and deaths in 22 states. Lowering
the speed limit on Aberdeen Avenue NE will probably have no significant impact on
safety. A reduction in speed limit will probably increase the number of speeding
violations, but will also increase the perception of safety by local residents.
The 85th percentile speed is the speed at or below which 85% of all vehicles are
observed to travel under free flowing conditions past a nominated point. Most
communities in the United States use it as a national standard for setting speed limits. Guideline 12 from Section 2B.13 of the Manual of Uniform Traffic Control Devices (MUTCD) and a 2004 report by the Institute of Transportation Engineers recommends setting the speed limit 5 miles below the 85th percentile speed. Please find attached a copy of Guideline 12 from the MUTCD. A 2003 report by the Transportation Research Board of the National Academies has found that in practice, many agencies set the speed limit 8 to 12 miles per hour below the 85th percentile speed.
cc:Doug Jacobson, Deputy Public Works AdministratorChris Barnes, Transportation Operations ManagerHeather Ulit, Administrative Secretary I - Transportation
AGENDA ITEM # 6.
8/12/2015PrintPreview10-11-1SPEEDLIMITS:A.ThespeedlimitonallstreetswithintheCitylimitsisherebyestablishedtobetwentyfive(25)milesperhourunlessotherwisepostedbytheCityortheStateofWashingtonHighwayCommission,includingthefollowingdesignatedstreetsconstitutingapartoftheStateHighwaySystem:1.South3rdStreet(SR.900eastbound)fromRainierAvenueSouth(S.R.167)toMillAvenueSouth.2.MillAvenueSouth(S.R.900northbound)fromSouth3rdStreettoBronsonWaySouth.3.BronsonWayNorthandBronsonWaySouth(S.R.900)fromMainAvenueSouthtoSunsetBoulevardNorth.4.South2ndStreet(S.R.900westbound)fromMainAvenueSouthtoRainierAvenueSouth(S.R.167).5.MainAvenueSouth(S.R.515)fromSouthGradyWaytoSouth3rdStreet(S.R.900).(Ord.3918,6-17-85)6.LakeWashingtonBoulevardnorthfromNorthParkDriveto1-405.(Ord.4062,5-4-87)7.North3rdStreetfromLoganAvenueNorthtoSunsetBoulevardNorth(S.R.900).(Ord.4101,12-14-87)8.Northeast16thStreetfromAberdeenAvenueNortheasttoJonesAvenueNortheast—JonesAvenueNortheastfromNortheast16thStreettoNortheast24thStreet.(Ord.4332,11-18-91)B.Thespeedlimitonthefollowingdesignatedstreetsisherebyestablishedtobethirty(30)milesperhour:1.SunsetBoulevardNorth,SunsetBoulevardNortheast,exceptthatportionofQueenAvenueNortheastandeastCitylimits,andNortheastSunsetBoulevard(S.R.900)fromMapleValleyHighwayeasterlytoCitylimits.2.TalbotRoadSouthfromSouth26thStreettoSouthPugetDrive.3.TaylorAvenueNorthwestfromRentonAvenueExtensiontoTaylorPlaceNortheast.http://www.codepublishing.comlWNRenton/cgi/menuCompiIe.pI1/4AGENDA ITEM # 6.
8/12/2015PrintPreview4.TaylorPlaceNorthwestfromTaylorAvenueNorthwesttoStevensAvenueNorthwest.5.RentonAvenueExtensionfromRainierAvenuenorthtowestCitylimits.6.ParkAvenueNorthfromBronsonWayNorthtoGardenAvenueNorth.7.North4thStreetfromLoganAvenueNorthtoFactoryAvenueNorth.8.North3rdPlacefromFactoryAvenueNorthtoNorth3rdStreet.9.EdmondsAvenueNortheastfromSunsetBoulevardNortheast(S.R.900)toNortheast27thStreet.10.AberdeenAvenueNortheastfromSunsetBoulevardNortheast(S.R.900)toNortheast27thStreet.11.Northeast27thStreetfromEdmondsAvenueNortheasttoKennewickPlaceNortheast.12.KennewickPlaceNortheastfromNortheast27thStreettoNortheast30thStreet.13.Northeast30thStreetfromKennewickPlaceNortheasttoFAI-405(Freeway).(Ord.3918,6-17-85;amd.Ord.4332,11-18-91)14.HouserWayNorth,fromLakeWashingtonBoulevardtoNorth4thStreet.15.UnionAvenueNortheastfromNortheast4thStreettonorthCitylimits.16.EdmondsAvenueS.E.fromS.E.PugetDrivetoS.E.161stStreet,withtheexceptionoftheschoolzone.TheschoolzoneestablishedaroundCascadeElementarySchoolshallremaininforcedependentontimeofdayorthepresenceofchildren.17.116thAvenueSEfrom161stStreettoSE192ndStreet,withtheexceptionoftheschoolzone.TheschoolzoneestablishedaroundBensonHillElementarySchoolshallremaininforcedependentontimeofdayorthepresenceofchildren.(Ord.5494,9-14-09)C.Thespeedlimitonthefollowingdesignatedstreetsisherebyestablishedtobethirtyfive(35)milesperhour:1.SouthwestSunsetBoulevard(S.R.900)fromRainierAvenueSouth(S.R.167)westerlytowestCitylimits.2.RainierAvenueSouthfromSouthGradyWaynortherlytothenorthCitylimits.http://www.codepublishing.comlWNRenton/cgi/menuCompile.pI2/4AGENDA ITEM # 6.
8/12/2015PrintPreview3.EastValleyFreeway(S.R.167)fromone-half(1/2)milesouthofSouthGradyWaytoSouthGradyWay.4.SouthGradyWayandSouthwestGradyWayfromMainAvenueSouthtowestCitylimits.5.BensonRoadSouth(S.R.515)fromSouthGradyWaytothesouthCitylimits.6.AirportWayfromRainierAvenueSouth(S.R.167)toLoganAvenueSouth.7.LoganAvenueSouthandLoganAvenueNorthfromAirportWaytoNorth8thStreet.(Ord.3918,6-17-85)8.LakeWashingtonBoulevardN.E.at1-405tothenorthCitylimits.(Ord.4062,5-4-87)9.Northeast3rdStreetfromSunsetBoulevardNorth(S.R.900)toJeffersonAvenueNortheast.10.Northeast4thStreetfromJeffersonAvenueNortheasttoeasterlyCitylimits.11.TalbotRoadSouthfromSouthGradyWaytoSouthPugetDriveandfromSouth26thStreettosouthCitylimits.12.NorthParkDriveandNortheastParkDrive(S.R.900)fromGardenAvenueNorthtoSunsetBoulevardNortheast.13.SouthPugetDrivefromBensonRoadSouthtoTalbotRoadSouth.14.Southwest16thStreetextendingfromthatcertaindrainagechannelatLongacrestotheEastValleyRoad.15.onNortheastSunsetBoulevardbetweenQueenAvenueNortheastandeastCitylimits.(Ord.3918,6-17-85)16.OakesdaleAvenueSouthwestfromMonsterRoadSouthwesttoSouthwest43rdStreet,andthepostingofsignstothateffectonbothsidesofthestreet.(Ord.4344,2-3-92)17.DuvallAvenueNE,fromthenorthCitylimittoNE4thStreet.(Ord.5412,9-15-08;Ord.5494,9-14-09)D.Thespeedlimitonthefollowingdesignatedstreetsisherebyestablishedtobeforty(40)milesperhour:1.PugetDriveSoutheastfromEdmondsAvenueSoutheasttoBensonRoadSouth.http://www.codepublishing.com/WNRenton/cgi/menuCompiIe.pI3/4AGENDA ITEM # 6.
8/12/2015PrintPreview2.OnWestValleyHighway(S.R.181),northCitylimitstosouthCitylimits.3.onMapleValleyHighwaybetween1-405andRenton’seastCitylimits.4.BensonDriveSouth,fromSouthPugetDrivetoPetrovitskyRoadSE.5.108thAvenueSE,fromPetrovitskyRoadSEtothesouthCitylimitatSE192ndStreet.(Ord.5494,9-14-09)E.Thespeedlimitonthefollowingdesignatedstreetsisherebyestablishedtobefortyfive(45)milesperhour:1.EastValleyRoadfromSouthwest16thStreettosouthCitylimits.(Ord.3918,6-17-85;amd.Ord.4344,2-3-92)http:/Mww.codepublishing.comlWNRentort/cgi/menuCompile.pI4/4AGENDA ITEM # 6.
INm0zmAberdeenAveNESpeedLimitRevisionNE28thStNt27tLStthSthSt24thStISt0z02:SNE12thNE25thNL24th:NEZNC2Nt22ncStF.icKnicjhtMiddleSchoolNE12thS1CCCCITYOF—‘Renton0INLi1StTH.LAND!AGENDA ITEM # 6.
1
CITY OF RENTON, WASHINGTON
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION
10‐11‐1 OF CHAPTER 11, SPEED LIMITS, OF TITLE X (TRAFFIC) OF THE RENTON
MUNICIPAL CODE, REDUCING THE SPEED LIMIT ON ABERDEEN AVENUE
NORTHEAST FROM THIRTY (30) MILES PER HOUR TO TWENTY‐FIVE (25) MILES
PER HOUR.
THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS
FOLLOWS:
SECTION I. Subsection 10‐11‐1.A of section 10‐11‐1, Speed Limits, of Chapter 11,
Speed Limits, of Title X (Traffic) of the Renton Municipal Code, is hereby amended to add a new
subsection 10‐11‐1.A.9, to read as follows:
9. Aberdeen Avenue Northeast from Sunset Boulevard Northeast (S.R.
900) to Northeast 27th Street.
SECTION II. Subsection 10‐11‐1.B.10 of section 10‐11‐1, Speed Limits, of Chapter 11,
Speed Limits, of Title X (Traffic) of the Renton Municipal Code, is hereby deleted. The
remaining subsections shall be renumbered accordingly.
SECTION III. This ordinance shall be effective upon its passage, approval, and thirty
(30) days after publication.
PASSED BY THE CITY COUNCIL this _______ day of ___________________, 2015.
Jason A. Seth, City Clerk
AGENDA ITEM # 6.
ORDINANCE NO. ________
2
APPROVED BY THE MAYOR this _______ day of _____________________, 2015.
Denis Law, Mayor
Approved as to form:
Lawrence J. Warren, City Attorney
Date of Publication:
ORD:1878:8/19/15:scr
AGENDA ITEM # 6.