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HomeMy WebLinkAboutLease LAG-14-001 CEDAR RIVER BOATHOUSE AGREEMENT THIS AGREEMENT ("Agreement") is made as of this 15t day of March, 2014 (the "Effective Date") by and between the City of Renton ("Renton"), a noncharter code city under RCW 35A, and a municipal corporation under the laws of the State of Washington, and The George Pocock Rowing Foundation, referred to as "Lessee", for the purpose of Lessee operating rowing club and paddle craft rental business at the Cedar River Boathouse. Renton and Lessee are at times collectively referred to as "Parties" and for the full mutual consideration detailed below, the Parties agree: A. DEFINTIONS: 1. "Laws" shall mean all applicable federal, state or municipal statutes, ordinances, guidelines, directives, policies, regulations, rules, and code requirements. 2. "Net" shall mean the value preceding or accruing from the sale of goods, food, services and business transactions of every kind occurring on the Premises without any deductions for cost of products sold, material used, labor or other expenses whatsoever paid or accrued. It excludes monies collected for Washington state sales taxes from the purchaser of food, goods, and services. 3. "Premises" shall mean the real property, including any structures or appurtenances owned, leased and/or controlled by the City of Renton known as the Cedar River Boathouse at insert address. 4. "Term" shall mean the period of time the Lessee is authorized to utilize the Premises as detailed in Section C. B. GRANT OF LEASE: PREMISES 1. Renton grants to Lessee, for and upon the conditions and provisions provided in this Agreement, the exclusive Lease, right and privilege to manage and operate a rowing club and paddle craft rental business at the Cedar River Boathouse, as depicted on Exhibits A, B, C, D, and E which are attached and fully incorporated into this Agreement by reference. 2. The specified Premises shall include and be limited to: a. The Cedar River Boathouse is located on a concrete slab on pilings. The facility has a total enclosed floor area of 3,128 square feet with an additional mezzanine of 1,292 square feet as show on attached Exhibit A. b. An agreed-upon amount of parking/parking area. 3. All of which facilities and/or grounds shall be referred to as "Premises." 4. Lessee shall not use the Premises for any other purpose without the prior written consent of Renton, which may be withheld for any reason. 5. Lessee has either examined the Premises or has waived examining the Premises and accepts the Premises as is, in its present condition as part of the consideration of this Agreement, and Lessee accepts all related liabilities and risks related to use of the Premises. 6. Lessee shall not use the Premises, the adjacent right-of-way, or access areas in any way that interferes with Renton's use of the property to city purposes. Similarly, other than for the use provided for in this Agreement, Renton shall not unreasonably use, or permit its agents, employees, representatives, tenants, or volunteers use any portion of the Premises in any way that materially interferes with Lessee's operations that are authorized by this Agreement. C. TERM This Agreement shall exist for a period of five (5) years from the Effective Date ("Initial Term"), and with both Parties' written approval this Agreement may be extended for an additional one- year (1) period ("Extension" or Extension Term"). If the Parties mutually agree then this Term shall be automatically extended unless either party provides written notice to the other at least six (6) months prior to the expiration of either the Initial Term or any expiration of any Extension. The Initial Term and any Extension or Extension Term may be referred to collectively as "Term." D. CONSIDERATION 1. The Parties mutually and voluntarily agree that the Lease rights and privileges for the term specified in Section C are given in exchange for Lessee's agreement to the following: a. Lessee may/will provide certain services to the public consistent with this Agreement. b. Lessee's payment to Renton shall be on the following schedule: 1. The first year's rent will be $12,500.00, payable as eleven equal monthly payments of $1,000 and a twelfth monthly payment of $1500.00. All payments are due on the 10th of the month. 2. The second year's rent will be $16,250.00, payable as eleven equal monthly payments of $°.350.00 and a twelfth monthly payment of $1400. 3. The third year's rent will be $20,000.00, payable as eleven equal monthly payments of $1700.00 and a twelfth monthly payment of $1300.00. 4. For each subsequent year, the rent shall increase by 3%, payable as eleven equal monthly payments of$1700.00 and a twelfth monthly payment of the balance of the annual rent due. Lessee will also be responsible for payment of State Leasehold Excise Tax of 12.84%. However, lessee may obtain, on an annual basis, a non-profit excise tax exemption certificate from the Department of Revenue, and as long as this certification is provided to the City and in force, lessee will be exempted from paying the excise tax. Renton's receipt or acceptance of any Payment, Rent or Consideration, with knowledge of Lessee's breach of this Agreement or Lessee's default that is related to this Agreement or impacts this Agreement shall not constitute or be deemed a waiver of any provision of this Agreement. c. If after the end of the Initial Term or any Extension Term, Lessee continues to use the Premises without entering into a new lease with Renton, and/or Renton has not sent Lessee written notice to terminate or not renew the Agreement, Lessee shall become owe Renton any Rent on a month-to-month basis on the same terms and conditions of this Agreement, and any new terms required by Renton, and pay monthly Rent in an amount equal to One Hundred Twenty Five Percent (125%) of the prevailing monthly Rent which was payable during the Term of this Agreement. E. OPERATION AND SERVICES 1. Facilities: Lessee agrees to and shall operate and manage the Premises in accordance with the following requirements: a. Canoe, Kayak, and Stand-up Paddle Board Rentals per the Addendum attached as Exhibit B. b. Renton Rowing Center operated under the conditions contained in Exhibit C. 2. Lessee's Staff: An experienced on-site manager shall be selected and designated as the Lessee's authorized representative who shall oversee all operations on the Premises and transmit and receive communications to and from Renton. A designated Lessee employee shall meet quarterly with a representative of Renton to discuss operational concerns. Lessee shall employ competent, courteous and efficient staff in numbers to adequately serve its patrons. All Lessee staff members shall, while on duty, be equipped with any apparatus or clothing that may be required by law, ordinance or regulation. Lessee staff will be encouraged not to smoke within the vicinity of the Cedar River Boathouse. In all aspects of employment, appearance, professional level, training, and operation, Lessee shall, at a minimum, meet standards and requirements as set forth in the proposal submitted to Renton and attached and fully incorporated by reference as Exhibits B and C. 3. Deliveries: Deliveries to the Premises shall be made in early morning hours or late afternoon hours to minimize the impact on park operations and pedestrian traffic. 4. Promotions/Advertising: All advertising shall require Renton's prior written approval. All promotions must be coordinated with Renton's Community Services Department and Lessor shall respond within five business days. 5. Signage: All graphics placed upon or affixed to any of the Premises shall be subject to Renton's prior written approval and shall not include product or commercial advertising. Lessee will follow all City sign codes, including A-frame signs. Lessee shall submit detailed plans and secure any needed permits/approvals for all exterior and interior signs. In all cases, signage shall be consistent in size, color, lettering, and theme to regular park signage and specifications. G. CAPITAL IMPROVEMENTS/REMODELING 1. Lessee shall, prior to commencing any alterations, improvements or construction, submit to Renton in writing, plans for alterations, improvements, and construction along with a breakdown of costs for such improvements. 2. All plans submitted require Renton's written approval prior to commencement of any alteration, improvements, or construction. Renton agrees to promptly review said plans, and if the alterations, improvements, and construction are acceptable, to promptly approve the same, and the plans as approved shall be attached to an executed copy of this Agreement and incorporated into this Agreement. 3. All work performed shall be done to Renton's satisfaction and shall be carried out in a manner that minimizes impact upon the public's use of the park. Lessee shall comply with all applicable Laws, and shall obtain and provide to Renton all required permits, prior to commencing any construction on the Premises. 4. Renton may enter the Premises and inspect any capital improvement work at any time to insure that such work is in accordance with the plans approved by Renton. In the event any such work is not according to the Renton approved plans, Renton shall send a Notice of Noncompliance to Lessee. If Lessee fails to make corrections within twenty (20) calendar days after Lessee's receipt of such Notice of Noncompliance, Renton may make whatever corrections are necessary to bring such work into compliance with the approved plans, at Lessee's sole expense. Renton's failure to object to or correct unapproved work shall not be a waiver of any right or remedy or an acceptance of the deviation from approved plans. 5. Prior to commencement of any construction work, Lessee shall provide payment and performance bonds, in Renton City Attorney approved forms, payable to Renton in full and just value of such capital improvements, conditioned that all provisions of this Agreement relating to capital improvements shall be faithfully performed by Lessee, or the surety, if required. 6. Lessee shall furnish Renton with a complete set of reproducible 22x34 Mylar drawings reflecting the final "as-built" condition of all capital improvements within thirty (30) calendar days after completion of the construction. Lessee shall furnish to Renton copies of all operating manuals, equipment brochures, paint schedules, and material brochures for such improvements. 7. Lessee will use recycled products when feasible. 8. All permitted alterations, improvements, and construction shall become the Renton's property upon termination or expiration of this Agreement and shall be installed solely at Lessee's expense unless Renton expressly agrees in writing to contribute toward such costs. Any unpermitted alteration, improvement or construction shall be repaired in full and to the satisfaction of Renton, at Lessee's sole expense. Failure to repair shall result in Lessee being responsible for the removal of the unpermitted alteration, improvement or construction, and to return the facility to its previous condition to the satisfaction of Renton, at Lessee's sole expense. 9. Prior to performing any construction work within, on or adjacent to the Premises, in a addition to obtaining Renton's written approval, Lessee shall secure all applicable federal, state and municipal permits, licenses, and proof of agency. To the extent authorized by law, Renton agrees to cooperate with Lessee, at no cost to Renton and with all costs to be borne by Lessee, in the submission and/or processing of any applications and/or processing of such applications; agrees to execute lawful documents as required; and agrees to take no unreasonable action that will inhibit, impede or delay Lessee's ability to obtain the abovementioned permits, licenses and proof of agency. H. UTILITIES At the present time, Electrical power, water and sewer service are provided via the Boeing utility grid. Telephone service is provided via the City's IT services, and Garbage collection is provided by Waste Management. Lessee shall be solely responsible for obtaining, retaining, maintaining, and paying for any utilities and/or utility installations. The City shall not be held responsible for any changes in the provision of electrical, water and sewer services. Le:see shall be solely responsible for payment of all utility charges and any related penalties and fees. At the end of the Term, the installed utility hardware shall be the property of the City of Renton unless owned by the utility or unless the Parties reach a written agreement detailing another resolution or disposition of the installed utility hardware. Renton shall not be liable for any damages to any person, property, or monetary, nor shall Lessee be relieved from any of its obligations under this Agreement, as a direct or indirect result of temporary interruption in the electrical power provided to the Premises, unless Renton intent to cause such interruption caused the temporary interruption. At its sole expense, Lessee may install a backup generator in a location and manner that Renton approves, in order to provide electrical service during emergency situations where electrical power is not available. Renton may deny approval of such a backup generator for any reason. TAXES- FEES Lessee agrees to pay all taxes and assessments which are the result of Lessee's use of the Premises and/or which may become a lien on Lessee's interest in accordance with RCW 79.44.010 (Lands subject to local assessments). Lessee shall timely pay all taxes, fees, charges, and costs arising out of the use and occupancy of the Premises including, but not limited to, charges imposed for governmental inspections or examinations, license and excise fees, taxes on Premises personal property, workers' compensation and/or insurance and the leasehold interest created by this Agreement. J. CUSTODIAL MAINTENANCE OF PREMISES 1. Lessee shall be solely responsible for, at all times: a. Keeping the Premises and adjacent area in a very neat, clean, safe and sanitary condition; b. Keeping the glass of all windows and doors clean and presentable; c. Furnishing all pre-approved cleaning supplies, materials and equipment needed to operate the Premises in the manner prescribed in this Agreement and d. Providing all necessary janitorial service to adequately maintain the Premises on the frequency schedule attached as Exhibit D. 2. With two-day advance notice, Renton may conduct periodic inspections of the buildings and grounds and shall notify Lessee in writing to make changes in maintenance methods or to make immediate repairs to areas affected by unacceptable maintenance methods. Lessee shall make changes or repairs as reasonably directed by the city staff. 3. Renton's right to inspect the Premises and any work, changes, alterations or improvements, made by Lessee shall not impose an obligation upon Renton to make inspections of Lessee's work, changes, alterations or improvements and does not relieve Lessee of the sole liability related to the Premises and sole responsibility of satisfying Laws and/or making any related payments, or satisfying any related fees, fines, or costs. 4. Lessee is required to contract with a qualified pest control company to control the rodent population around the Premises and below the decks. Lessee may provide for janitorial services by contract with a third-party, which shall be subject to this Agreement and the prior written approval of Renton. All related expenses are solely the Lessee's responsibility. 5. Lessor will provide all preventive and normal maintenance and upkeep on HVAC equipment. Lessee shall be solely responsible for all plumbing fixtures and repairs including hot water heaters, drain maintenance, and any upgrades needed by current codes. Lessee shall provide all maintenance on Premises doors and door hardware including locks. 6. Lessee must notify Renton and obtain Renton's written approval before installing any new equipment, fixtures, other improvements, or making any material changes in the equipment, size or design of any such equipment in or on the Premises that requires a building permit by City code. Absent the need for a building permit, Lessee is exempted from this provision for changes up to a value of $5,000. Any change that alters the exterior appearance of the building requires Renton's prior written approval. K. EQUALITY OF TREATMENT Lessee shall conduct its business in a manner that ensures fair, equal and non-discriminatory treatment at all times in all respects to all persons without regard to race, color, religion, sex, sexual orientation, marital status, age or national origin. No person shall be refused service, be shown discriminatory treatment, or be denied any privilege, use of facilities, or participation in activities on the Premises based on: race, color, religion, sex, sexual orientation, marital status, age, or national origin. Failure to comply with any of the terms of this provision shall be a material breach of this Agreement. L. NON-DISCRIMINATION Lessee shall comply with all applicable Laws regard ng non-discrimination in employment, the provision of services to the public in a non-discriminatory manner, and affirmative action, including but not limited to the provisions of the Renton Fair Practices Policy as attached (Exhibit E) and fully incorporated by reference into this Agreement. The Boathouse complies with ADA requirements. In operation of the Boathouse, Lessee shall comply with all provisions of the Americans with Disabilities Act. Lessee is solely responsible for any structural changes required by the Act. M. INSURANCE 1. Lessee's Insurance. Lessee shall secure and maintain the following insurance policies, and shall not cancel or suspend the insurance policies identified below, except after twenty (20) calendar day's prior written notice by certified-mail to the City of Renton: a. Commercial General Liability Insurance: Commercial general liability insurance in the minimum amounts of $1,000,000 for each occurrence/$2,000,000 aggregate throughout the duration of this Agreement. b. Workers' Compensation: Workers' compensation coverage, as required by the RCW 51, Industrial Insurance laws of the State of Washington. c. Renton as an Additional-Insured: It is agreed that on Lessee's commercial general liability policy, the City of Renton will be named as an Additional-Insured on a primary and non-contributory basis. Any coverage maintained by the City of Renton is solely for the coverage and benefit of Renton, and its elected officials, officers, agents, employees, representatives and volunteers. d. Verification of Coverage: Subject to Renton's review and acceptance, a certificate of insurance showing the proper endorsements, shall be delivered to Renton before executing the work of this Agreement. 2. Review of Policy: Upon request, the Lessee shall give Renton a full copy of the insurance policy for its records and for the Renton City Attorney's or Risk Manager's review.The policy limits may be reviewed and the value reassessed annually. 3. Termination: Notwithstanding any other provision of this Agreement, the failure of the Lessee to comply with the above provisions of this section shall subject this Agreement to immediate termination without notice to any person in order to protect the public interest. N. INDEMNIFICATION/HOLD HARMLESS Lessee agrees and covenants to hold and save Renton, its elected officials, officers, agents, representatives, and employees and volunteers harmless and to promptly indemnify same from and against any and all claims, actions, damages, Lessee's illegal conduct/violations of Laws, liability of every type and nature including all costs and legal expenses to the extent incurred by reason of the negligent acts or omissions of Lessee, including loss of life, personal injury and/or damage to property arising from or out of any occurrence, omission or activity upon, on or about the premises. This hold harmless and indemnification provision shall likewise apply for or on account of any patented or unpatented invention, process, article or appliance manufactured for use in the performance of the Agreement, including its use by Renton, unless otherwise specifically provided for in this Agreement. The Lessee agrees to name Renton as an Additional-Insured on a noncontributory primary basis. In the event Renton shall, without fault on its part, be made a party to any litigation commenced by or against Lessee, then Lessee shall proceed and hold Renton harmless and he shall pay all costs, expenses and reasonable attorney's fees incurred or paid by Renton in connection with such litigation. Furthermore, Lessee agrees to pay all costs, expenses and reasonable attorneys' fees that Renton may incur or pay in the enforcement of any of the covenants, provisions and agreements. Nothing in this Agreement shall require the Lessee to indemnify Renton against and hold harmless Renton, from claims, demands or suits based solely upon the conduct of Renton, its elected officials, officers, and employees and provided further that if claims or suits are caused by or result from the concurrent negligence of (a) the Lessee's agents or employees and (b) Renton, its elected officials, officers, and employees, and involves those actions covered by RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteration, improvement, etc., of structure or improvement attached to real estate or relative to a motor carrier transportation contract), this indemnity provision with respect to claims or suits based upon such concurrent negligence shall be valid and enforceable only to the extent of the Lessee's negligence or the negligence of the Lessee's agents or employees. Should a court of competent jurisdiction determine that this agreement is subject to RCW 4.24.115, (Validity of agreement to indemnify against liability for negligence relative to construction, alteration, improvement, etc., of structure or improvement attached to real estate or relative to a motor carrier transportation contract) then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Lessee and Renton, its elected officials, officers, employees, agents, representatives and volunteers, the Lessee's liability under this Agreement shall be only to the extent of the Lessee's negligence. It is further specifically and expressly understood that the indemnification provided herein constitute the Lessee's waiver of immunity under RCW 51, the Industrial Insurance Act, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the Parties. The provisions of this section shall survive the expiration or termination of this Agreement. 0. STANDARDS Lessee recognizes that, although it is operating its facilities as an independent operator, Renton is organized and exists for the purpose of maintaining park and recreation facilities for the use and enjoyment of the general public. Lessee, its owners, principals, agents, employees and volunteers shall devote their efforts toward rendering courteous service to the public as though they were employees of Renton, with a view of add'ng to the enjoyment of the patrons of this city-owned recreational facility and/or Premises. Lessee shall operate and conduct the facilities on the Premises in a business-like manner, and will not permit any acts or conduct on the part of the Lessee's owners, principals, agents, employees and volunteers that would be detrimental to Renton's operation of the Cedar River Trail Park. P. CONTINUOUS OPERATION Lessee shall keep the Premises open and use them to transact business with the public daily during hours listed in Exhibits A and B of this Agreement. Subject to the prior written approval of Renton, Lessee may close any portion or all of the Premises for a reasonable period for repairs or remodeling, to accommodate the construction by Renton of public improvements, provided that a written notice of such impending closure is posted in a conspicuous place on the Premises for at least one (1) week immediately prior to the closure date. Lessee may close any portion or all of the Premises in an emergency without the approval of Renton, but is must provide notice to Renton at the earliest reasonable opportunity. Renton reserves and retains the right to close Lessee's operation for its convenience upon written notice of not less than thirty (30) business days and to close any portion or all of the Premises immediately in case of an emergency. Q. COMPLIANCE WITH LAWS Lessee shall comply with all applicable Laws, as previously defined in Section A.1. Lessee shall not use the Premises to any illegal purpose or to violate any Law; Lessee shall not create or allow any nuisance or hazardous materials on the Premises; Lessee shall not permit or do any act on the Premises that would increase the rate of insurance on or for the Premises; and Lessee shall not damage or overload the structural components of any structure, fixture, or part the Premises. The provisions of this section shall survive the expiration or termination of this Agreement. R. UNUSABILITY Either party may terminate this Agreement in the event that all or a substantial portion of the Premises is rendered unusable by an Act of God, fire, flood, earthquake, act of war or other extraordinary casualty destroying or damaging the Premises by notice given the other party within thirty (30) calendar days after such conditions are discovered. Neither party shall be required to restore or reconstruct the Premises. During any period of Premises use subsequent to said thirty (30) calendar days, the annual payment payable under Section D shall be reduced by the ratio that the area rendered unusable by such extraordinary casualty and not reconstructed or repaired bears to the total area of the Premises. S. SURRENDER OF PREMISES AND REMOVAL OF LESSEE'S PROPERTY 1. Upon termination or expiration of this Agreement, Lessee shall surrender the Premises to Renton and promptly surrender and deliver to Renton all keys, passwords or passcodes that it may have to all parts of the Premises. 2. The Premises shall be surrendered to Renton in as good a condition as at the date of execution of this Agreement, except for the effects of reasonable wear and tear, alterations, and repairs made with concurrerce of Renton, and property damage by fire and other perils insured in contracts or policies of all risk insurance. 3. Prior to the expiration of this Agreement, Lessee shall remove from the Premises, at its sole expense, all fixtures, equipment, furnishings, and other personal property owned and placed in or on the Premises by Lessee. 4. If after termination or expiration of this Agreement, Lessee has not removed its property and fixtures within the time allowed, Renton may, but need not, remove said personal property and hold it for the owners, or place the same in storage, all at the expense and risk of the owners, and Lessee shall reimburse Renton for any expense incurred by Renton in connection with such removal and storage. Renton shall have the right to sell such stored property, without notice to Lessee, after it has been stored for a period of thirty (30) calendar days or more; the proceeds of such sale to be applied first to the cost of sale, second to the payment of charges for storage, and third to the payment of any other amounts which may then be due from Lessee to Renton, and the balance, if any and if requested, shall be given to Lessee. T. TERMINATION 1. Waiver or acceptance by Renton of any default by Lessee of the terms of this Agreement shall not constitute or be deemed as a release of Lessee's responsibility for any prior or subsequent default. 2. Renton shall have the right to terminate this Agreement immediately, after five (5) calendar days written notice, if a receiver is appointed to take possession of Lessee's assets, Lessee makes a general assignment for the benefit of creditors, or Lessee becomes insolvent or takes action under the Bankruptcy Act. 3. Renton shall have the right to terminate this Agreement, upon thirty (30) calendar days written notice to Lessee, without penalty or further liability to Renton, upon the occurrence of any of the following events: Renton reasonably determines that Lessee's exercise of its rights under this Agreement unreasonably interfere with Renton's use of the Premises and/or the structures on the Premises for the lawful municipal purposes for which Renton owns and administers such structures/site. ii. Renton reasonably determines that Lessee's exercise of its rights under this Agreement unreasonably interferes with the use of the Premises or structures thereon by a governmental agency with which Renton has an agreement to provide services to Renton. iii. Lessee breaches any material term or covenant of this Agreement. iv. The Premises is destroyed or damaged so as to substantially and adversely affect the effective use by Lessee for Lessee's equipment, subject to the Lessee's determination (within ten 10 calendar days) of whether the equipment can be restored or rebuilt. Lessee shall have the option of installing a temporary facility while Lessee makes that determination. Such facility shall be subject to prior review by Renton and shall conform to all Laws by any regulatory agency or governmental entity with jurisdiction in the matter. Payment of the monthly rent shall continue throughout the evaluation and temporary installation period. 4. Lessee may terminate this Agreement without penalty of further liability as follows: The approval or consent of any governmental authority necessary for the construction and/or operation Lessee's business is withheld, revoked or terminated, or Lessee determines, in its sole discretion, that the cost of obtaining or retaining such approval is cost prohibitive; or ii. Renton breaches any material term or provision of this Agreement. 5. Upon termination under this section, neither party will owe the other any further obligation provided that Lessee is not in arrears in making its monthly Rent payments provided however that Lessee shall remove its equipment and restore the site. U. ENTRY Renton's representative(s) may enter the Premises during normal operating hours for the purpose of inspecting or repairing the same except in the case of emergency, but this right shall impose no obligation upon Renton to make inspections to ascertain the condition of the Premises in addition to Renton's responsibility to conduct annual inspections and shall impose no liability or responsibility other than to inform Lessee of any defect. V. LIENS AND ENCUMBRANCES Lessee shall not have or allow any liens or encumbrances on the Premises. At Renton's request, Lessee shall furnish Renton written proof of payment of any item which would or might constitute the basis for such a lien on the Premises if not paid. W. ACCESS TO BOOKS AND RECORDS: CASH REGISTERS Renton, during business hours, shall have the right to examine and inspect the books and records of Lessee related to or connected with the business conducted upon the Premises to determine compliance with this Agreement's provisions. Lessee shall record all sales in a type of cash register that contains a tape or device that records and identifies the date, type of sale, and the amount of each transaction; that is equipped with a cumulative, non-alterable accounting control mechanism; and that is subject to approval by Renton's Finance Department. Lessee shall also submit quarterly operating reports, which will detail sales, cost of sales, wages/benefits, operating expenses, administrative expenses, internal corporate payments, and depreciation/amortization. X. AMENDMENTS Except as is specifically provided for in this Agreement, this Lease shall not be amended or changed except by written instrument signed by both Parties. Y. ASSIGNMENT OF AGREEMENT Lessee shall not assign or transfer this Agreement or otherwise convey any right, privilege or interest granted by this Agreement or any part of the Premises without Renton's prior written consent. This Agreement and any right, privilege, or interest derived from this Agreement shall not be transferable by operation of law, by any process, or by any court proceedings. Lessee shall not-sub-lease or co-habitat businesses or other enterprises in or on the Premises without prior written approval of the City of Renton. Z. EXECUTED IN COUNTERPARTS This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute but one instrument. AA. GOVERNED BY LAWS OF STATE OF WASHINGTON; INVALIDITY OF PROVISIONS This Agreement shall be governed by the laws of the State of Washington. If any term or provision of this Agreement or application of this Agreement shall to any extent be invalid or unenforceable, the remainder of this Agreement shall not be affected and shall remain valid and enforced to the fullest extent permitted by law. BB. DEFAULT OF FAILURE OF CONSIDERATION Renton may terminate this Agreement and take immediate possession of the Premises in the event that Lessee failed to perform any of the covenants or conditions of this Agreement and such default or deficiency in performance was not remedied by Lessee within thirty (30) calendar days after receiving written notice stating the nature of the default or deficiency and Renton's intention to terminate if not corrected. CC. MODIFICATION The Parties reserve the right to amend this Agreement as may be mutually agreed. No amendment shall be effective unless signed by each party's authorized representatives. DD. NON-APPLICABILITY OF RELOCATION BENEFITS Lessee accepts and agrees that the signing of this Agreement does not entitle Lessee to assistance under RCW 8.26, Relocation Assistance— Real Property Acquisition Policy. EE. NOTICES Except as otherwise designated in this Lease, all notices hereunder must be in writing and shall be deemed valid given if sent by certified mail, return receipt requested, or overnight delivery, addressed as follows or as otherwise specified by the City during the duration of this Lease: City: Mr. Peter Renner City of Renton Community Services Facilities Director 1055 South Grady Way Renton, Washington 98055 Lessee: Matthew Lacey, Executive Director George Pocock Rowing Foundation 3320 Fuhrman Ave E Seattle, WA 98102 FF. PENALTY SECTION 1. There shall be a penalty for violation of this Agreement concerning the following: a. Cleanliness of Premises b. Cleanliness and presentability of staff(if a retail operation) c. Experience of staff(ditto) d. Signage e. Repair of Premises f. Failure to provide complete monthly financial information (ditto) 2. For each violation within a six-month period, the following penalties shall apply: a. Written warning for first violation with reasonable time frame for corrective action. b. A $50.00 fine for second violation. c. A$100.00 fine for third violation and each future violation. 3. Lessee may appeal any penalty to the Community Services Administrator or designee, whose decision shall be final. GG. VENUE Lessee agrees that the venue of any action or suit concerning this Agreement shall be in the King County Superior Court. HH. MEMORANDUM OF LEASE AGREEMENT The Parties shall enter into a short form Lease memorandum, in a form suitable for recording under State of Washington law, referencing this Agreement, and all options pertaining to this Agreement, which Lessee may, at its expense, file in King County, Washington. IN WITNESS WHEREOF, Renton has caused this Agreement to be executed by its proper officers duly authorized this .25'"` day of , 20 /,‘, and the Lessee has by the signature below signed with the intent of making effective and legally binding. �t0 N11g a� 1 N., LESSEE: 02/0(9 f 2at�� ti � Sf11 4 ; 4,.. . • , 4 '�J/II.(.M.&2 /_ icy Gel1�+ - 7' '‘141-"'& (24,Presi���- t .41. ti1.�0{ 5sc'•r ,1'NI �k'AS4`�d.4 a2a4=1____:Secretary-Treasurer STATE OF WASHINGTON ) )ss COUNTY OF KING ) On this mac- , day of net c , 20 1 Li before me personally appeared to me known to be theAKdce& 8ovlo,ccocs, - G- , corporation that executed the foregoing instrument, and acknowledged that they signed the same as their free and voluntary act and deed, for the uses and purposes mentioned in the Agreement. WITNESS my hand and official seal the day and year in this certificate first above written. .wry Public in and for the State of ••‘‘"\1111111 Washington, residing at Sew-ke �. AY J. 1 11 pTA AN fq�i� / ri � -- • . CO% i N i A i & C, / 7 a / Ac<Nillh,4 011 .".s° 5 iii G'1"‘%%%1 �` 1►► WASYA"-: 111,M N� THE CITY OF RENTON L , it,,,,, eibk, Denis Law, ,,Qji I,ptj " Mayor ,▪ ''• Attest: ,. • �✓ v• r,_• up )804414i 4. , •Bonnie I. Walton - �,,' ��' . „.'>`' Renton City Clerk • .• 'c ''',•,,„,00' STATE OF WASHINGTON ) )ss COUNTY OF KING ) On this a day of May, 2613-before me personally appeared 3` (-- s. I . A) , City of Renton, who executed the foregoing instrument for the uses and purposes mentioned, and on oath stated that he was authorized to execute said instrument. WI E my h.nd : iff:ial seal the day and year in$jj,.5.certificate first above written. Not y 'ub' and for the- t.te of ° ` ,� ` 'c.'''''` iL�- Washington, residing at - "*.1 G' , r t4 .. .� r.4 d 'i Exhibit A bi 0 ► 3 t It E 2 xi t t t y :lr i V t t t i 1 EA i O l m y Ia 1 `! i 0 s 4. i t M ~'. n _ t ei r t • C D 1 mZ I 90 ' v • 0 t C) E V 1 1 E t I .;r' t t V t?. ` 4 V i V E o0 j ' Gi II° ' Q' i ID Clo BD � W o 0 ----.__0 (--- , AIL `° 1 N M z O r Z o 0:1 v O r - O a o r I D Z O z z C m -n r- 0 0 r a Z co Exhibit B Relative to public service provided Types of services provided The GPRF will provide a variety of rowing opportunities for youth and adults. Described in greater detail below, members will have the opportunity to participate in: Learn to Row classes, summer rowing camps, morning and afternoon coached practice sessions, independent rowing sessions, and recreational and competitive rowing teams. Members will also have the opportunity to participate in fitness and conditioning classes. Learn to Row Learn to Row classes are available to the public (no membership requirement to participate). Participants of all ages will have the opportunity to learn to row in a group setting. Learn to Row sessions will be instructed by highly qualified coaches to ensure a safe and fun learning environment for all. Youth Rowing Programs Following Learn to Row, youth may continue rowing in a number of recreational classes focused on skill development, team building, fitness and fun. Youth who are interested in a more time-intensive rowing experience may join the competitive youth rowing team, otherwise known as "junior rowing." Junior rowing will be built around highly qualified and enthusiastic coaches with a high coach to participant ratio. Our goals will be focused on learning proper rowing technique, building teamwork and having fun. With these goals, we will develop cohesive boys' and girls' teams that compete both locally and nationally. Scholarships and Other Support Youth who face barriers to participation in rowing may apply to receive support through the GPRF's nationally recognized youth assistance program, Rainier Valley Rowing (RVR). Available assistance includes: financial scholarships for registration and regatta fees, swimming instruction, mentorship, uniforms, training gear, and after-school snacks. No student will be turned away for lack of funds. Additionally, youth who receive support through our assistance program are also eligible to participate in enrichment activities focused on nutrition education, life skills, job skills, and college access. Once admitted into RVR, youth will have access to scholarships and other support until they graduate from high school. Adult Rowing Programs After learning to row, adults can further pursue their development in rowing by becoming a member of Renton Rowing Center. Membership provides access to the equipment and ability to take part in the programming. Members have the ability to access the equipment and fitness room on their own schedule (excluding conflicts with youth programming). The GPRF will offer multiple ways for adults to be involved in rowing. Adult rowing is for all sizes, skills, and interests for everyone aged 19 and older. Newer rowers will move on to our intermediates program focused on skill development and small boat competency. Experienced rowers may participate on the racing team or in other (to be developed) coached sessions. Community Outreach The GPRF will work with existing community organizations, businesses and schools to ensure rowing programs are as accessible to the public as possible. Community outreach will include free boathouse tours for youth, adults, and families; low-cost after-school and summer camps; school field trips; corporate team building; and fun indoor rowing challenges. The GPRF will also pilot an adaptive rowing program for youth and adults who have a variety of physical and intellectual disabilities. Value of service Obesity Prevention Access to high quality physical activity and sports is more important now than ever before. According to the Center for Disease Control, adult physical inactivity is more common among women than men and African American and Hispanic adults than Caucasians. The U.S. Department of Health and Human Services has also shown that less affluent households are more likely to be physically inactive—a major risk factor for obesity and a number of other poor health outcomes—than more affluent households. Researchers from the University of Washington looked at King County and found that the strongest predictor of obesity for an individual is the median property value of one's zip code2. Obesity and other poor health outcomes are also major risk factors for the youth of King County with one in five students estimated as being obese or overweight3. Youth from low-income households and youth of color are disproportionately affected by obesity4. Compared to the east side of the county, rates of unhealthy weight are 1.3 times higher in south King County. Despite these statistics, there is often a lack of access to quality physical activity, especially for youth. At first glance, rowing may seem like an odd mechanism for inspiring individuals, specifically youth, to meet their potential. However, the city of Renton – because of its proximity to vast waterways - is uniquely poised to connect citizens to this transformative sport. Rowing is considered one of the best total body workouts. Rowing involves every major muscle group in the body providing an excellent vehicle for improving cardiorespiratory endurance, muscular strength and endurance, flexibility, and body composition. The basic mechanics of rowing are relatively easy making this efficient, low-impact sport appealing to people of all ages and abilities. 'U.S.Department of Health and Human Services(1996).Physical Activity and Health:A Report of the Surgeon General.Atlanta,GA:U.S. Department of Health and Human Services,Centers for Disease Control and Prevention,National Center for Chronic Disease Prevention and Health Promotion. 2 Drewnowski,Adam,Colin D.Rehm,and David Solet."Disparities in obesity rates:analysis by ZIP code area."Social Science&Medicine 65.12(2007):2458+ 3 Public Health Seattle&King County,Assessment Policy Development&Education.State Healthy Youth Survey(2011). 4 Financing Childhood Obesity Prevention Programs.The Finance Project.http://www.financeproject.org/publications/obesityprevention.pdf Social, Emotional, and Community Development The social and emotional benefits of rowing are boundless: a) often called "the ultimate team sport," rowing is ideal for instilling notions of persistence, resilience, and self-efficacy; b) because of its historical ties to Universities, rowing is steeped in a college-going culture and rich educational networks; and c) as one of the most physically demanding sport, rowing enhances lifelong health and wellness. This powerful sport and these myriad benefits are typically only available to a small group of individuals. The underserved and at-risk youth who could most benefit from rowing's power have historically faced significant barriers to participation, including expensive program fees, lack of transportation, and lack of comfort and familiarity with water sports. The GPRF's tried and tested, collaborative approach will remove barriers to participation. Programs will be inclusive and accessible for youth and help them develop the tools they need for peak performance in school and life: • Skills to support lifelong fitness and improved health; • Communication, teamwork, and leadership skills; • Connections with caring adult mentors who are focused on students' holistic success; • Increased awareness of post-secondary educational opportunities, and • Connection to their community and urban environment through appreciation of and access to natural resources. Projected number of citizens served: Number of participants 2014 2015 2016 Learn to Row 60 84 118 Junior Programming 30 42 59 Adult Membership 45 63 76 135 189 252 Hours of individual participation 2014 2015 2016 Learn to Row 360 504 706 Junior Programming 7800 10920 15288 Adult Membership 11250 15750 22050 19410 27174 38044 Exhibit C Addendum Canoe,Kayak,and Stand-up Paddle Board Rentals Introduction The GPRF values rowing and other boating recreation as a means of increasing water- access and engaging citizens in fun,healthy activities. As such,the GPRF plans to incorporate canoe,kayak,and stand-up paddleboard (SUP) rentals into the Renton Rowing Center project as soon as possible. Goals 1. Provide affordable,family-friendly water-based recreation opportunities to enhance community participation,water-access,and boating-safety. 2. Expand Renton Rowing Center's recreational opportunities to include canoe,kayak, and SUP. 3. Ensure Renton Rowing Center's long-term financial sustainability through revenue generated from rentals. Start-up Costs The GPRF will phase in the incorporation of canoe,kayak,and SUP rentals over the next two years.In 2014,the GPRF will spend approximately$25,700 on rental equipment, which will accommodate up to 24 people on the water at one time.In 2015,the GPRF plans to invest approximately$11,000 to expand the rental program,which will accommodate an additional 12 people on the water. In 2014 and 2015 combined,we anticipate spending approximately$25,000 on staff wages to accommodate anticipated usage and peak hours. See Table 1 for details on start-up costs. Table 1 Start-up Costs Year One and Two 2014 2015 Number Total Cost Number Total Cost Staff 1 $10,000 1.5 $15,000 SUP's 8 $8,000.00 4 $4,000.00 Single Kayak 6 $4,800.00 2 $1,600.00 Double Kayak 3 $6,000.00 1 $2,000.00 Canoe 2 $1,600.00 1 $800.00 SUP paddles 12 $1,800.00 6 $900.00 Kayak paddles 14 $840.00 6 $360.00 Vests 30 $1,500.00 20 $1,000.00 Neoprene gear 5 $425.00 5 $425.00 Other 5 $750.00 5 $750.00 Total $35,715.00 $26,835.00 Hours of Operation and Usage Canoe,kayak,and SUP rentals will be available to individuals and groups from April through October each year.During peak season(June-August),the facility will be open seven days per week for approximately nine hours per day(Table 2). We anticipate approximately 1250 rentals during year one with annual rentals increasing every year through 2017 (Table 3). Table 2 Hours of Operation Dates Open Last Boat Out Close June 1-September 30 10:00am M-F; 6:30pm M-Sat; 8:00pm M- 9:00am Sat&Sun 4:30pm Sun Sat; 6:00pm Sun October 1-July 31 Some weekends TBA TBA Table 3 Projected Number of Rentals 2014 2015 2016 2017 January-March 0 0 0 0 April 10 25 40 60 May 25 75 100 150 June 150 200 300 410 July 450 500 540 700 August 500 560 605 700 September 100 125 150 200 October 15 15 15 30 November-December 0 0 0 0 Total 1250 1500 1750 2250 Rental Fees Canoe,kayak,and SUP daily rental fees are based on existing rental fee structures from other local facilities.Year one fee structures for canoe,kayak,and SUP rentals are available in Table 4. Table 4 2014 Rental Fees 1st Hour After 1st Hour Full Day Single Sea Kayak $18.50 $9.25 $69.00 Double Sea Kayak $25.00 $12.50 $94.00 Single Sit-On-Top $14.00 $7.00 $53.00 Double Sit-On-Top $16.00 $8.00 $60.00 Canoe $18.50 $9.25 $69.00 SUP $18.50 $9.25 $69.00 Dry Suit&Neoprene Booties $29.00 $29.00 $29.00 Exhibit D Cedar River Boathouse Custodial Schedule Daily Remove all trash Vacuum all carpet Clean all entrance door glass Police outside area by entrance for trash, debris, butts Clean inner restrooms, mop floors Clean office area Wipe down tables and counters Pick up debris Spot clean all glass Weekly Remove stains on carpet from drinks and food Dust all horizontal surfaces Change out any burned out lights as needed Spot clean walls Wipe down door handles, light switches Semi-Annually Clean carpet and raise pile Exhibit E Renton Policy and Procedure Manual 340-03 FAIR PRACTICES .4•.."`" 1.1— at 1 (V POLICY & PROCEDI Subject: Index: HUMAN RESOURCES FAIR PRACTICES Number: 340-03 (supersedes 300-01) Effective Date: Supersedes: Page: Staff Contact: Approved By: 2/15/2011 10/07/96 1 of 2 Nancy A. Carlson Denis Law 1.0 PURPOSE: To establish guidelines for the promotion of fair practice and nondiscrimination in activities relating to employment and treatment of all citizens. 2.0 ORGANIZATIONS AFFECTED: All departments/divisions and City officials. 3.0 REFERENCES: City Resolution #2340, issued July 10, 1972. Revised February 9, 1976; June 2, 1980; and October 7, 1996. 4.0 POLICY: The policy of the City of Renton is to promote and afford equal treatment and service to all citizens and to assure equal employment opportunity to all persons regardless of race; religion/creed; national origin; ancestry; sex; the presence of a physical, sensory, or mental disability; age over 40; sexual orientation or gender identity; pregnancy; HIV/AIDS and Hepatitis C status; use of a guide dog/service animal; marital status; parental/family status; military status; or veteran's status. This policy shall be based on the principles of equal employment opportunity as set forth in federal, state and local laws. All departments of the City of Renton shall adhere to the following guidelines: 4.1 Employment Practices: All activities relating to employment such as recruitment, selection, promotion, Printed on 11/27/2013 1 from Folio document Renton Policy and Procedure Manual termination, and training shall be conducted in a nondiscriminatory manner. Personnel decisions will be based on individual performance, staffing requirements, and in accord with governing Civil Service Laws and the agreement between the City of Renton and the Washington State Council of County and City Employees. 4.2 Cooperation with Human Rights Organizations: The City of Renton will cooperate fully with all organizations and commissions organized to promote fair practices and equal opportunity in employment. 4.3 Contractors'Obligation: Contractors, subcontractors, and suppliers conducting business with the City of Renton shall affirm and subscribe to the Fair Practices and Nondiscrimination policies set forth by law. 4.4 Copies of this policy shall be distributed to all City employees, shall appear in all operational documentation of the City, including bid calls, and shall be prominently displayed in appropriate City facilities. 5.0 DEFINITIONS: Not applicable. 6.0 PROCEDURE: Not applicable. Printed on 11/27/2013 2 from Folio document