HomeMy WebLinkAbout5227 RESOLUTION NO. 5 2 2 7
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR
TO NEGOTIATE AND EXECUTE, ON BE HALF OF THE
CITY, AN AIRPORT PROPERTY LEASE WITH CLASSIC
HELICOPTERS CORP.
WHEREAS, the City of Auburn has property at the City's municipal airport that
could be leased to private airport-related businesses that would provide economic
development at the airport; and
WHEREAS, in order to be competitive in developing leases of such airport
property, it would be appropriate to authorize the Mayor to negotiate and execute leases
within the parameters of terms identified in advance; and
WHEREAS, the City has an opportunity to lease airport properties to a business
Classic Helicopters Corp. — and there is a business urgency that justifies the Mayor
negotiating and executing a lease for City airport property so long as the lease is in
conformity with the parameters set by this resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, HEREBY RESOLVES as follows:
Section_1 That the Mayor is hereby authorized to negotiate and execute a
lease of City airport property with Classic Helicopters Corp., provided that the lease
shall be in substantial conformity with the term sheet attached hereto, marked as Exhibit
"A" and incorporated herein by this reference.
Section 2. That the Mayor is authorized to implement such administrative
procedures as may be necessary to carry out the directives of this legislation.
Resolution No. 5227
March 31, 2016
Page 1 of 2
Section 3. That this Resolution shall take effect and be in full force upon
passage and signatures hereon.
Dated and Signed this /I day of , 2016.
CITY AUBU
.,,
*i' ,.7 t4fr ff) i.
NAN7 BACK '! , MAYOR
ATTEST:
,b
Daniel E. Daskam, City Clerk
APPROVED AS TO FORM:
.r.„L#'.S
._Daniel B. Heid, City Attorney
Resolution No. 5227
March 31, 2016
Page 2 of 2
CITY Of *.__._ •
]\ILJ U- Nancy Bacus,Mayor
WASHINGTON 2S West Main Street t Auburn WA 98001-4998• www auburnwa.gov • 253-931-3000
Classic Helicopter Lease at the Auburn Airport
April 4, 2016
Attn: F. Greg Baker
Classic Helicopter Corp.
Term Sheet
Premises: 1,254 square feet in the 506 building,which shall include the Back East Room
(628sqft), Bathroom located in the Back East Room(44sqft), Instructor/Office 1
(I 10sgft),Instructor/Office 2 (110sgft), Large Office(204sgft) &Flight Planning
Room,(158sgft).
3,000 square feet of land north of the 506 building which will have a temporary
hangar put on by and at the expense of Classic Helicopter.
14,000 square feet of apron space surrounding the temporary hangar similar to the
photo contained within for reference.
Rate: $12.50 per square foot,per year forthe 1254 square feet in the 506,building.
$0.56 per square foot per year for the 3,000 square feet of land beneath the
temporary hangar.
50.56 per square foot,per year for the 14,000 square feet of apron space
surrounding the temporary hangar.
Leasehold
Tax: A State mandated Leasehold'Tax in the amount of:12.84%shall be charged to the
gross monthly rental payments.
Common Area
Maintenance
& Usage: Common areas shall include the Corridor/Hallway(242sqft),Front Lobby
(190sgft), Guest Bathrooms(146sgft), Interior Storage Closet(41sgft), Kitchen
area(77sqft), Coat Closet(II sqft)for a total of 707 square feet.
Common areas shall be charged at a rate of$12.50 per square foot,per year.
Classic Helicopter shall be charged a percentage(61%)of the total Common area
charge.
As part of the Common area fee, Classic Helicopter shall use of the large
conference room for up to 5 hours per week.
AUBURN * MORE THAN YOU IMAGINED
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ci rrY OF} iJ13TJPt4Nancy Backus,Mayor
WASHINGGTON 25 West Main Street 4, Auburn WA98001-4998 + www.auburnwa.gov12.53-931-3000
Rental
Adjustments: Lease rates calculated on the leased premises of the 506 building, hangar and
apron will be subject to annual rental adjustments based on CPI-W from August
to August of the previous year.A negative CPI adjustment shall not constitute a
reduction in the rental rate. The first rental adjustment shall begin. January 1 s`
2018
Term: The term shall run for 36months following Commencement of the lease with
commencement estimated to be late May, 2016. A separate"Companion
Agreement"shall outline the requirements for Classic Helicopter's development
of a permanent site at the Airport.
Development
of Temporary
Hangar: Classic Helicopter shall be responsible for all development and construction costs,
including but not limited to: permits,fees, construction,utility hook ups, etc. of
the temporary hangar.
Utilities: Classic Helicopter shall receive up to a$300.00 per month utility credit which
shall be applied to the utility(power,water,sewer&storm water)usage
calculated off of the utility meter servicing all of the 506 building with the
exception of the Far East Room. Utilities in excess of the$300.00 per month
credit shall be billed separately to Classic Helicopter from the City.
Classic Helicopter shall have the utility meter furnishing the Far East Room put
into their name and shall be responsible for all utility charges stemming from that
meter.
Cable internet usage shall be included as part of the lease at no additional charge.
Lease
Contract: The City of Auburn and Classic Helicopter Corp. shall take reasonable steps to
insure that a formal Lease contract is executed between parties within 21 days of
the execution of this Term Sheet. The formal Lease shall be in substantial
conformity of the terms and conditions described within this Term Sheet.
Subject to: City approval of this Term Sheet is subject to Auburn City Council approval of
Resolution 5227.
AUBURN * MORE THAN YOU IMAGINED
CITY OF
AuBuRNNancy Backus,Mayor
WASHINGTON 25 West Mn i Street *.Auburn WA 98001-4998- ww v.auburnwa.gov * 253-931-3000
By signature shown below Classic Helicopter Corp. is acknowledging and accepting of the
business points outlined above. Upon execution of this document and approval of the Auburn
City Council. a formal, binding lease agreement will be prepared by the City which shall.be in
substantial conformity of the agreed to terms above and sent to Classic Helicopter Corp.for
revie>a'and execution.
Approved for Submittal to Auburn.City Council per Resol>tition 5227
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regory Ba r„k lass c Helicopter Corp.
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AIRPORT LEASE AGREEMENT BETWEEN THE CITY OF AUBURN AND
CLASSIC HELICOPTER CORPORATION
THIS LEASE AGREEMENT, hereinafter referred to as this "Lease", is entered into this
Jo II, day of June, 2016, by and between the City of Auburn, a Washington municipal
corporation, hereinafter referred to as "Lessor," and Classic Helicopter Corporation, a
Washington corporation, hereinafter referred to as "Lessee."
RECITALS:
WHEREAS: The City owns and operates The Auburn Municipal Airport which has space
available for ground leasing; and
WHEREAS: Classic Helicopter Corporation wishes to enter into a lease for office and
ground space located on airport property for the purpose of flight training, scenic tours, aircraft
sales, charters, and servicing of Robinson helicopters; and
WHEREAS: The City of Auburn is authorized by RCW 35A.11.010 to lease city owned
property to Classic Helicopter Corporation for the common benefit; and
WHEREAS, The City finds that leasing space to Classic Helicopter Corporation will
benefit the public health, safety, and welfare of the Auburn community..
NOW, THEREFORE, in consideration of their mutual promises set out in this Lease,
Classic Helicopter Corporation and The City of Auburn agree as follows:
ARTICLE 1: PREMISES LEASED
1.1) For and in consideration of the rent and faithful performance by Lessee of the terms and
conditions and the mutual covenants hereof, Lessor does hereby lease to Lessee, and
Lessee does hereby lease from Lessor, 1,254 square feet in the 506 building which shall
include: Back East Room/510, Bathroom in the Back East Room, Inti. 1, Instr. 2, Office,
and the Flight Planning Room (collectively, the "Improvements"), and Seventeen
thousand square feet (17,000) of land legally described in Exhibit A, attached hereto and
incorporated herein, hereinafter referred to as the "Premises", which Premises consist of
approximately eighteen thousand, two hundred fifty-four (18,254) combined square feet
of office and land, as depicted on the Sit.: Plan(s) attached hereto as Exhibits B-1 (506
building) and B-2 (Land area) incorporated by this reference. The Premises aresituated
in the County of King, State of Washington, and are located at the Auburn Airport (the
"Airport").
Classic Helicopter/COA Lease
Resolution No. 5227 Page 1
1.2) Upon execution of Resolution 5227 Lessee is hereby granted authority to develop and
construct a temporary aircraft hangar building (Temporary Hangar). Such development,
permitting, review and inspection fees along with the construction of the temporary
hangar will be borne at the sole expense and risk of the Lessee. The development and
construction of the temporary hangar shall be done pursuant to plans and specifications
approved by Lessor. Upon commencement of development and construction of the
temporary hangar, the temporary hangar shall be deemed to include and be part of the
Premises for all purposes hereunder.
1.3) No building, structure, or improvements of any kind shall be erected, placed upon
operated or maintained on the Premises, nor shall any business or operation be conducted
or carried on in violation of any ordinance, law, statute, by-law, order, or rule of any
governmental agency having jurisdiction thereover.
1.4) Lessee acknowledges and agrees that it is relying solely on its inspection and
investigation of the Premises. Lessee accepts the property "AS-IS, WHERE IS" in its
present condition with no warranties of any kind, express or implied, either oral or
written, made by Lessor or any employee, agent or representative of Lessor with respect
to the physical condition of the Premises. Lessee shall have determined to its satisfaction
upon its execution hereof that the Premises can be used for the purposes it intends and
which are described in Article 5 below and permitted under this lease. Lessee
acknowledges and agrees that neither Lessor nor Lessor's employees, agents,
representatives or otherwise have made, and does not make any representations or
warranties of any kind or character whatsoever, whether express or implied, with respect
to the habitability, leaseability or suitability for commercial purposes, merchantability, or
fitness for a particular purpose of the Premises. The presence or absence of any
hazardous substances, wastes or materials as defined by State, Federal or Local Law, all
of which warranties Lessor hereby expressly disclaim. Lessor does represent that, to the
best of the Lessor's knowledge, without duty of inquiry, there are no hazardous wastes or
materials on, in or under the Premises.
1.5) Common Areas - Certain areas totaling 707 square feet located within the 506 building
are defined as "Common Areas" and are depicted in Exhibit B, these areas include: The
front lobby(190 sqft), corridors (242 sqft), public restrooms (146 sqft), storage closet (41
sqft), kitchen area (77 sqft) and coat closet (11 sqft). Common Areas are assessed a
maintenance fee of$12.50 per square foot per year. Lessees are charged a percentage of
the total per square foot maintenance fee in accordance with each Lessees percentage of
the total leased space, excluding the common areas. Classic Helicopters percentage of the
Classic Helicopter/COA Lease
Resolution No. 5227 Page 2
total leased space per there leased space in the 506 building is be 61% and shall therefore
be assessed $7.63 per square foot, per year for the common area maintenance.
Maintenance items included for the common areas shall include but not be limited to:
Maintenance of common areas including paint, carpet, wall repair, ceilings, light fixtures,
bulb replacement, bathroom supplies and toiletries, kitchen area maintenance and
janitorial services of the common areas. Adjustments for assessment charged for the
common area space shall be adjusted based upon the annual CPI adjustment and in the
same manner outlined in Section 3.2.
1.6) Class Room— In addition to the Premises leased to Lessee pursuant to this Lease, Lessee
shall have the right to use the Class Room shown on Exhibit B-1 for five (5) hours per
month at no additional charge, and Lessee shall have the option to use the Class Room
for additional hours each month at the rate of_$25.00 per hour. Lessor and Lessee
shall cooperate to determine availability and the scheduling of Lessee's use of the Class
Room, which use shall be during normal business hours. Any unused hours up to a total
of ten (10) hours may be carried over into the proceeding month. Scheduling and leasing
of the Class Room must be done in minimum one (1) hour increments.
ARTICLE 2: TERM
2.1) The term of this Lease shall be for 43 months, commencing on June 15, 2016
(hereinafter referred to as the "Commencement Date"), and ending at midnight on
December 31, 2019, unless sooner terminated pursuant to any provision of this Lease(the
"Term"). If Lessor, for any reason whatsoever, cannot deliver possession of the Premises
to Lessee on the Commencement Date, Lessor shall not be subject to any liability nor
shall the validity of the Lease be affected; provided, the Term of this Lease shall
commence on the date possession is actually tendered to Lessee but the Expiration Date
shall not be adjusted.
ARTICLE 3: RENT, RENT ADJUSTMENTS AND LEASEHOLD TAX
31) Rent - Lessee agrees to pay to the Lessor an annual base rent of$12.50 per square foot,
per year for the leased space in the 506 building as noted in Section 1.1 above and
depicted page 1 of 2 in Exhibit B, $0.56 per square foot, per year for the land legally
described in Exhibit A and depicted in Exhibit B-2 which shall include the Temporary
Hangar and surrounding apron. Lessee shall also pay a Common Area Maintenance and
Usage fee of$7.63 (61% of the total assessed charge of$12.50 per square foot, per year
for the Common Areas) per square foot, per year as their portion of the Common Areas
as described in Section 1.1 and depicted in Exhibits B-1 and B-2 for an annual base rent
of $30,589.41 per year. In addition to the Annual Base Rent, Lessee shall pay any
Classic Helicopter/COA Lease
Resolution No. 5227 Page 3
"Impositions," which shall include all taxes, improvements, levies, assessments, licenses,
p&ainit fees and otherwise charged against and lienable to the Premises and any of its
Improvements. This shall expressly include statutory leasehold excise tax imposed by
RCW Chapter 82.29A. All Annual Base Rent and Impositions (together "Rent") shall be
paid in equal monthly installments of$2,876.43 at the office of the Airport Manager or at
such other office as may be directed in writing by the City, without notice, demand,
offset, abatement or deduction of any kind. Rent shall be due on the 15`day of each month
in advance.
3.2) Annual CPI Adjustment—The Annual Base Rent shall be adjusted annually based upon a
multiplier equal to the change in the Consumer Price Index ("CPI") for the Seattle-
Tacoma-Bremerton area measured from August to August with the first eligible
adjustment beginning on January 1, 2018. Annual adjustments shall be computed as
follows:
(Percentage change in CPI-W) x (current Annual Base Rent) = (Adjusted Annual Base
Rent)
A negative adjustment in the CPI shall not constitute a reduction in the Annual Base
Rent, rather the amount of Annual Base Rent from the previous year shall remain in
effect. Should the Consumer Price Index cease to exist then Lessee and Lessor agree to
utilize a different index that measures substantially the same function.
3.3) Late Charges - Lessee hereby acknowledges that late payments of rent or any other sums
due hereunder will cause the Lessor to incur costs not otherwise contemplated by this
Lease. Accordingly, if any installment of rent or any other sum due from Lessee is not
received by the Lessor within ten (10) days after such amount shall be due, then, without
any requirement for notice to Lessee, Lessee shall pay the Lessor a late charge equal to
12% of the overdue amount. The parties agree that such late charges represents a fair and
reasonable estimate of the costs the Lessor will incur by reason of late payment by
Lessee. Acceptance of such late charge by the Lessor shall in no event constitute a
waiver of Lessee's default with respect to such overdue amount, nor prevent the Lessor
from eicercising any of the other rights and remedies granted hereunder. In the event a
late charge is payable in this Lease or otherwise, whether or not collected, for three (3)
installments of rent in any 12-month period, then rent shall automatically become due and
payable quarterly in advance, rather than monthly notwithstanding any other provision of
this Lease to the contrary. In addition to the late charges provided for in this section,
interest shall accrue on rent, or any other sums due hereunder, at the rate of one and one-
half percent(1 and 1/2%) per month from the date due until paid.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 4
ARTICLE 4: MAINTENANCE
4.1) Lessor's Responsibilities - Lessor shall be responsible for repair and maintenance of the
following: the exterior of the 506 building including: Exterior walls, roof, gutters,
downspouts, foundation, HVAC system, exterior doors and windows. Lessor shall also be
responsible for repair and maintenance of the surrounding sidewalks, landscaping and the
parking lot as well as the interior common areas as defined in Section 1.5 and depicted in
Exhibit B-1 and all wiring, plumbing,bath fixtures and janitorial services located in or on
Lessees premises within the 506 building at Lessors sole cost and expense, provided,
however, that Lessor shall not be required to repair damage which results from the act of
negligence by the Lessee, his agents, servants, or employees. If Lessor refuses or neglects
to commence or complete repairs, either promptly or adequately, Lessee may, but shall
not be required to commence or complete the repairs and Lessor shall pay the costs
thereof.
4.2) Lessee's Responsibilities in the 506 building— Lessee shall be responsible for repair and
maintenance to their Premises located within the 506 building, including: interior walls,
floors, and any non-bath fixtures. All repairs and maintenance shall be at the sole cost
and expense of the Lessee, provided, however, that Lessee shall not be required to repair
damage which results from acts of negligence by the Lessor, his agents, servants or
employees, or when such damage is caused by any peril included within the Lessor's
property insurance coverage. If Lessee refuses or neglects to commence or complete
repairs within thirty days of written notice by the Lessor, Lessor may, by shall not be
required to commence or complete the repairs and Lessee shall pay the costs thereof to
Lessor on demand.
4.3) Lessee's Responsibility for the Temporary Hangar and Surrounding Apron - Lessee shall
at all times during the term of this lease maintain the apron area and all improvements
thereon, which shall include the Temporary Hangar, and any site utilities and
development associated with the Temporary Hangar in good condition and shall, at its
sole cost and expense, keep this Premises, clean and in a safe and sanitary condition, and
shall provide all necessary repairs, maintenance and janitorial services thereto. Lessee
agrees not to allow conditions of waste and refuse to exist on the premises. Lessee shall
conform to and comply with all valid ordinances, regulations or laws affecting the
Premises, the Improvements or any other improvements on the Premises or the use
thereof. Lessor shall have no obligation whatsoever to keep, maintain, alter, remodel,
improve, repair, decorate or paint the Improvements or any other improvements hereafter
situated upon this Premises. It is the intention of the Parties that Lessee and not Lessor
Classic Helicopter/COA Lease
Resolution No. 5227 Page 5
shall have the full responsibility and obligation for the repair and maintenance of the
Improvements and other improvements hereafter situated upon the Premises and Lessee
waives, to the full extent allowed by law, any right or remedy against Lessor based upon
the condition of the Improvements or any iniprovements hereafter situated upon the
Premises or any failure by Lessor or Lessee to repair or maintain the Improvements or
any such improvements.
4.4) Lease expiration or termination — Upon expiration or termination of this lease, and
subject to Article 11 below, Lessee shall at its sole cost and expense remove the
Temporary Hangar and any other improvements hereafter situated upon the Premises,
remove and dispose of any trash or debris and restore the Premises to grade level unless
other such agreement exists in writing between Lessor and Lessee states otherwise.
ARTICLE 5: PERMISSIBLE USES
Lessee shall use the Premises for conducting commercial aeronautical uses only. All
Fixed Base Operators (FBO's) shall be subject to Auburn City Code 12.56, Airport Rules
and Regulations and the Auburn Municipal Airport's Minimum Operating Standards
hereby attached for reference. FBO services may include some or all of the following:
• Aircraft Sales
• Aircraft Maintenance and Repair Services
• Aircraft Leasing or Rental Services
• Flight Training Services
o Specialized Aircraft Repair Services
o Aircraft Management Services
• Mobil Aircraft Maintenance and Repair Services
• Charter Brokerage Services
• Commercial Flight Operations under Part 91
Additional services may permitted at the discretion of the Lessor and may be subject to
additional requirements. Lessee agrees to remain compliant with the most current version
of the Auburn City Code, Airport Rules and Regulations and Minimum Operating
Standards as they may be updated and amended during the term and any extended terms
of the lease.
ARTICLE 6: UTILITIES
6.1) Temporary Hangar— Lessee shall be responsible for the sole cost of bringing power and
any other utilities required for and all hook-up fees associated with the construction and
Classic Helicopter/COA Lease
Resolution No. 5227 Page 6
use of the temporary hangar. Lessee agrees to contract with the appropriate providers and
pay for all public utilities, which shall be used in or charged against this Premises, and to
hold the Lessor harmless from such charges. Lessor shall cooperate, at no charge to
Lessor, in the granting of easements and rights-of-way in, through, above, and/or under
property owned and controlled by Lessor at the Airport and reasonably necessary for the
provision of utilities to this Premises, provided that if any utility lines, including but not
limited to storm water lines, need to be relocated, the responsibility to relocate them shall
be borne solely by the Lessee.
6.2) Back East Room - Lessee shall contract with the appropriate provider to transfer the
account for the power meter fumishing the Back East Room into Lessees name prior to
commencement of this lease. Lessee shall be have the appropriate service provider bill
Lessee directly and Lessee shall be fully responsible for all charges associated with this
account. Lessee further agrees to hold Lessor harmless from any charges associated with
this account.
6.3) 506 Building— Lessor shall hold the utility accounts in Lessors name and pay all utility
charges associated with the 506 building. Such accounts include: Power (excluding the
Back East Room, which has its own power meter and shall be held in Lessees name),
Water, Sewer, Storm and Garbage servicing the 506 building. Lessee shall receive a
monthly Three Hundred dollar ($300.00) credit from the Lessor for the total combined
utility charges. Lessor will bill Lessee directly through their accounts receivable for any
outstanding utility charge in excess of the $300.00 utility credit. Any unused utility credit
from the previous month shall not roll over onto the following month. Utility payments
due to Lessor in excess of 14 days past due shall be subject to a penalty of 15% or
$15.00, whichever is greater. Utilities payments due to Lessor in excess of 60 days past
due shall be deemed breach of contract upon written notice and at the discretion of
Lessor.
6.4) Internet Services —Lessor provides broad band interne services to the Lessees Premises
located within the 506 building (including the Back East Room) for use by Lessee.
Service bandwidth is 20Mb. Should the Lessee choose to upgrade the existing service or
utilize a different provider for broad band intemet, Lessee shall first request Lessor in
writing, via electronic email transmission or certified mail approval for the new or
upgraded service. Approval, disapproval or request for additional information by Lessor
shall be given via written response to the Lessee within 10 business days following
Lessees written request. If Lessor approves then Lessee shall be responsible for the full
cost of bringing the service to Lessees Premises as well as all other reoccurring charges
associated with the services or pay the difference between the current and upgraded
service charge.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 7
ARTICLE 7: INSURANCE COVERAGE, INDEMNIFICATION/HOLD HARMLESS
7.1) Insurance — In accordance with Article 4 of the Auburn Municipal Airport Minimum
Operating Standards (herein attached as reference), herein incorporated as a reference,
Lessee shall at all times have in effect the following types of minimum amounts of
insurance as applicable to the business to be conducted:
(I) Commercial General Liability insurance in the amount of$1,000,000 per occurrence and
$1,000,000 annual aggregate. Such insurance shall contain contractual liability
insurance covering applicable leases, licenses, permits, or agreements.
(II)Commercial/business automobile liability insurance for all owned, non-owned and hired
vehicles assigned to or used in performance of commercial aeronautical activities in
the amount of at least $300,000 per occurrence. If any hazardous material, as defined
by any local, state or federal authority, is the subject, or transported, in the
performance of this contract, an endorsement is required providing $1,000,000 per
occurrence limits of liability for bodily injury and property damage.
(III) Special Causes of Loss Property Form covering all improvements and fixtures on the
commercial airport operator's premises in an amount no less than the full replacement
cost thereof, to the extent of the commercial airport operator's insurable interest in the
premises.
(IV) Worker's compensation insurance as required by law and employers liability
insurance in the amount of $100,000 per accident, $100,000 disease per person,
$500,000 disease policy limit.
(V)Aircraft liability insurance in the amount of at least $1,000,000 per occurrence single
limit Bodily Injury and Property Damage Liability including Passengers.
(VI) Hangar keeper's liability insurance in the amount of at least $1,000,000 per
occurrence, or more as values or Lessor require.
(VII) Products-completed operations liability insurance in the amount of at least $1,000,000
per occurrence.
(VIII) If applicable, Lessee shall maintain Environmental Impairment Liability coverage for
any underground or aboveground fuel storage facility, tank, underground or
aboveground piping, ancillary equipment, containment system or structure used,
controlled, constructed or maintained by Lessee in the amount of $1,000,000 each
incident, $2,000,000 aggregate. The policy shall cover on-site and off-site third party
Classic Helicopter/COA Lease
Resolution No. 5227 Page 8
bodily injury and property damage including expenses for defense, corrective action
for storage tank releases and tank clean-up for storage tank releases.
7.2) In addition to the types and amounts of insurance required in Article 7.1 above, Lessee
shall at all times maintain such other insurance as the Lessor may reasonably determine
to be necessary for Lessee's airport activities.
7.3) All insurance shall be in a form and from an insurance company with Best's financial
rating of at least a B++. All policies, except worker's compensation policy, shall name
the City and its elected or appointed officials, officers, representatives, directors,
commissioners, agents and employees as "Additional Insured", and the Lessee shall
furnish certificate of insurances evidencing the required coverage cited herein prior to
engaging in any commercial aeronautical activities. Such certificates shall provide for
unequivocal thirty (30) day notice of cancellation or material change of any policy limits
or conditions.
7.4) The Lessee's insurance coverage shall be primary insurance as respects Lessor. Any
insurance, self-insurance, or insurance pool coverage maintained by Lessor shall be
excess of the Lessee's insurance and shall not contribute with it.
7.5) Indemnification / Hold Harmless - The Lessee shall defend, indemnify, and hold
harmless Lessor, its officers, officials, employees and volunteers from and against any
and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or
damage to property, which arises out of Lessee's use of Premises, or from the conduct of
Lessee's business, or from any activity, work or thing done, permitted, or suffered by
Lessee in or about the Premises, except only such injury or damage as shall have been
occasioned by the sole gross negligence or willful misconduct of Lessor.. Solely for the
purpose of effectuating Lessee's indemnification obligations under this Lease, and not for
the benefit of any third parties (including but not limited to employees of Lessee), Lessee
specifically and expressly waives any immunity that may be granted it under applicable
federal, state or local Worker Compensation Acts, Disability Benefit Acts or other
employee benefit acts. Furthermore, the indemnification obligations under this Lease
shall not be limited in any way by any limitation on the amount or type of damages,
compensation or benefits payable to or for any third party under Worker Compensation
Acts, Disability Benefit Acts or other employee benefit acts. The parties acknowledge
that the foregoing provisions of this Section have been specifically and mutually
negotiated between the parties.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 9
ARTICLE 8: AIRPORT FUTURE DEVELOPMENT AGREEMENT
Lessor and Lessee acknowledge and agree that the Premises identified in Article 1 are
temporary in nature and subject to the terms outlined in Article 2 without extension of
any kind unless agreed to in writing by both parties. As part of this agreement Lessor and
Lessee hereby agree to a separate "Airport Future Development Agreement" hereby
attached for reference as Exhibit C. As such Lessee agrees to pursue one of the following:
1. The development of one of the airport development sites identified in the
Airport Layout Plan (ALP) of the Federal Aviation Administrations' (FAA)
approved Airport Master Plan; or
2. Permanent relocation to a facility developed or owned by a third party; or
3. Permanent relocation to an existing hanger and/or office facility.
As part of the Airport Future Development Agreement, Lessee commits to achieving
certain performance measures identified and agreed to between Lessor and Lessee.
Failure to comply with the attached Airport Future Development Agreement shall
constitute a breach of this lease and shall be subject to remedies as identified in Article 15
of this agreement.
ARTICLE 9: ENVIRONMENTAL PROVISIONS
9.1) Lessee covenants to defend, indemnify, and hold Lessor harmless from any imposition or
attempted imposition by any person upon Lessor of any obligation Or cost ("liability") of
whatever form, including, without limitation, damages; claims; governmental
investigations, proceedings or requirements; attorney fees in investigation, at trial or
administrative proceeding, or on appeal; witness or consultant costs; or any other liability
to the extent that such liability arises from a violation, or from the failure to satisfy a
requirement of any environmental or land use law or regulation, proximately resulting
from use of the Premises during the term of this Lease, and without regard to when the
liability is asserted.
9.2) Lessee has inspected the Premises and accepts it in its present condition. Lessee shall not
cause the premises to be contaminated in any way and in the event of contamination shall
immediately report such contamination to Lessor and shall cause any such contamination
to be remedied by that method recognized by Washington State Department of Ecology
and shall indemnify and hold Lessor harmless from all costs involved in implementing
the remedy.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 10
9.3) Any other provision of this Lease to the contrary notwithstanding, Lessee's breach of any
covenant contained in this Article 9 shall be an Event of Default empowering Lessor, in
addition to exercising any remedy available at law or in equity or otherwise pursuant to
this Lease, to terminate this Lease and to evict Lessee from the Premises forthwith, or to
terminate Lessee's right to possession only without terminating this Lease.
9.4) Lessee shall notify Lessor within twenty-four (24) hours of any release of a reportable
quantity of any hazardous substance (as that term is defined in CERCLA, 42 USC 9601,
et. seq. or the Washington Model Toxics Control Act), or of the receipt by Lessee of any
notices, orders or communications of any kind from any governmental entity which relate
to the existence of or potential for environmental pollution of any kind existing on or
resulting from the use of the Premises or any activity conducted thereon. If Lessee fails
to comply with any of the requirements of this article, Lessor may undertake, without
cost or expense to Lessor, any actions necessary to protect Lessor's interest including
steps to comply with such laws.
ARTICLE 10: ASSIGNMENT AND SUBLETTING
Neither this Lease nor any interest therein may be assigned, mortgaged, transferred or
encumbered, nor shall all or any part of the Premises be sublet (each of which, a
"Transfer") without Lessor's prior written consent, which shall not be unreasonably
withheld. If Lessee is a corporation, partnership, limited liability company, or any other
entity, any transfer of a controlling ownership or voting interest in such entity or any
transfer or attempted transfer of this Lease by merger, consolidation or liquidation shall
be deemed a Transfer requiring Lessor's consent. Transfers include, without limitation,
one or more sales or transfers, by operation of law or otherwise, or creation of new stock,
by which an aggregate of more than fifty percent (50%) of Lessee's stock, or partnership
or membership interests, as applicable, shall be vested in a party or parties who are
nonstockholders or non-partners or non-members, as applicable, as of the date hereof
(provided that the foregoing shall not apply if Lessee's stock is listed on a recognized
riational stock exchange or is traded over-the-counter). Any assignee or subtenant shall
assume all of Lessee's obligations under this Lease and shall be jointly and severally
liable with Lessee hereunder. Consent of the Lessor to any Transfer shall not operate as a
waiver of the necessity for consent to any subsequent Transfer. In connection with each
request for consent to a Transfer, Lessee shall pay the reasonable cost of processing
same, including reasonable attorney's fees, upon demand of Lessor. If Lessor consents to
any proposed Transfer, Lessee may enter into the same, but only upon the specific terms
and conditions set forth in Lessee's Request for Consent; any such Transfer shall be
subject to, and in full compliance with, all of the terms and provisions of this Lease; the
consent by Lessor to any Transfer shall not relieve Lessee of any obligation under this
Classic Helicopter/COA Lease
Resolution No. 5227 Page 11
Lease; Lessor may require the Lessee and the Transferee to execute a Lessor's consent
form; and no Transfer shall be binding on Lessor unless Lessee and the transferee shall
deliver to Lessor a fully-executed counterpart of the document effecting the Transfer.
ARTICLE 11: SALE OF TEMPORARY HANGAR
If at the expiration of this lease Lessee wishes to sell the Temporary Hangar to Lessor,
Lessee shall provide Lessor with written notice as outlined in Article 12, Lessee's interest
in entering into exclusive negotiations with Lessor for the sale of the Temporary Hangar
to Lessor. Lessee shall provide written notice to Lessor no less than sixty(60) days prior
to expiration of this lease if Lessee wishes to sell its Temporary Hangar. If Lessee does
not provide written notice to Lessor of its interest in selling the Temporary Hangar then it
shall be deemed that Lessee does not have interest in selling the Temporary Hangar to
Lessor. If Lessor does receive written notice of Lessee's interest in selling the Temporary
Hangar, then Lessor shall have 15 days from delivery of notification by Lessee to express
Lessor's interest and intent of entering into negotiations for the purchase of the
Temporary Hangar. If Lessor does not provide notice of its intent to enter into
negotiations for the purchase of the Temporary Hangar then such intent and rights to
enter into exclusive negotiations with Lessee shall be deemed waived. If Lessor gives
notice of its intent to enter into negotiations for the purchase of the Temporary Hangar
then Lessor shall be provided the remaining term of this lease, with the exclusive right to
negotiate and finalize the purchase of the Temporary Hangar. If Lessor and Lessee cannot
reach agreement to the terms of sale, or Lessor provides notice of its intent not to enter
into negotiations for the sale of the Temporary Hangar then Lessee agrees to remove the
Temporary Hangar and return the Premises to grade level per Section 4.4 above.
ARTICLE 12: NOTICES
Any notice, consent, approval or other communication given by either party to the other
relating to this Lease shall be in writing, and shall be delivered in person, sent by certified
mail, return receipt requested, sent by reputable overnight courier, or sent by other
approved forms of electronic communication (with evidence of such transmission
received) to such other party at the respective addresses set forth below (or at such other
address as may be designated from time to time by written notice given in the manner
provided herein). Such notice shall, if hand delivered or personally served, be effective
immediately upon receipt. If sent by certified mail, return receipt requested, such notice
shall be deemed given on the third business day following deposit in the United States
mail, postage prepaid and properly addressed; if delivered by overnight courier, notice
Classic Helicopter/COA Lease
Resolution No. 5227 Page 12
shall be deemed effective on the first business day following deposit with such courier;
and if delivered by electronic communications, notice shall be deemed effective when
sent.
The notice addresses of the parties are as follows:
To the City: Kevin Snyder
Community Development & Public Works Director
25 W. Main Street
Auburn, WA 98001
and
City of Auburn
Clerks Office
25 West Main St
Auburn, WA 98001
To Lessee: Attn: F. Gregory Baker
Classic Helicopter Corporation
506 23rd St NE
Auburn, WA 98002
ARTICLE 13:.ESTOPPEL-CERTIFICATE
At the request of the Lessee in connection with an assignment or encumbrance of its
interest in this Lease, Lessor shall execute and deliver a written statement identifying it as
the Lessor under this Lease and certifying:
(I) The documents that then comprise this Lease
(II) That this Lease is in full force and effect
(III) The then current annual amount of rent and the date through which it has been
paid
(IV) The expiration date of this Lease
(V) That no amounts are then owed by Lessee to Lessor (or, if amounts are owed,
specifying the same)
Classic Helicopter/COA Lease
Resolution No. 5227 Page 13
(VI) To the knowledge of Lessor, there are no defaults by Lessee under this Lease or
any facts which but for the passage of time, the giving of notice or both would
constitute such a default
(VII) Remaining rights to renew the term of this lease to the extent not theretofore
exercised
The party acquiring Lessee's interest in the Lease shall be entitled to rely conclusively
upon such written statement.
ARTICLE 14: INSPECTION, ACCESS AND POSTED NOTICES
Lessor and any of its agents shall at any time upon seventy-two (72) hours advance,
written notice to Lessee, have the right to go upon and inspect the Premises and
Improvements, erected or constructed, or in the course of being erected or constructed,
repaired, added to, rebuilt or restored thereon. Provided, however, that in the event the
Lessor determines, in its sole and absolute discretion, that an emergency situation exists
on or adjacent to the Premises, no advance notice to Lessee is required and Lessor may
immediately go upon and inspect the Premises. Provided further, that Lessee agrees to
allow Lessor to inspect the Premises on an annual basis at an agreed upon date and time,
preferably the same date and time that any inspection by the local fire marshal occurs.
Lessor shall have the right to serve, or to post and to keep posted on the Premises, or on
any part thereof, any notice permitted by law or by this Lease, any other notice or notices
that may at any time be required or permitted by law or by this Lease. Lessor shall not be
liable in any manner for any inconvenience, disturbance, loss of business, or other
damages arising out of Lessor's entry on the Premises as provided in this Section except
for such damage that is caused directly by, or through the gross negligence of, Lessor,
their employees, agents, or representatives.
ARTICLE 15: DEFAULT AND REMEDIES
15.1 Lessee shall be in default under this Lease if any rent or other payment due from Lessee
hereunder remains unpaid for more than ten (10) days after the date it is due; (ii) Lessee
files a voluntary petition in bankruptcy or makes a general assignment to the benefit of,
or a general arrangement with, creditors; (iii) there is an involuntary bankruptcy filed
against Lessee that has not been dismissed within thirty (30) days of filing; (iv) Lessee
becomes insolvent; or (v) a receiver; trustee, or liquidating officer is appointed for
Lessee's business; or (vi) if Lessee violates or breaches any of the other covenants,
agreements, stipulations or conditions herein, and such violation of breach shall continue
for a period of thirty (30) days after written notice of such violation or breach is sent to
Lessee, then Lessor shall have the rights and remedies provided in this Article 15, in
Classic Helicopter/COA Lease
Resolution No. 5227 Page 14
addition to any other right or remedy available at law or equity (all notice and cure
periods set forth above are in lieu of and not in addition to any notice required pursuant to
applicable unlawful detainer/eviction statutes).
15.2 Upon any default under this lease, Lessor may reenter the Premises in the manner then
provided by law, and remove or put out Lessee or any other persons found therein. No
such reentry shall be construed as an election on Lessor's part to terminate this lease
unless a written notice of such intention is given to Lessee.
15.3 Upon default the Lessor may elect to re-let the Premises or any part thereof upon such
terms and conditions, including rent, term and remodeling or renovation, as Lessor in its
sole discretion may deem advisable. To the fullest extent permitted by law, the proceeds
of any reletting shall be applied: first, to pay Lessor all costs and expenses of such
reletting (including without limitation, costs and expenses incurred in retaking or
repossessing the Premises, removing persons or property therefrom, securing new
Lessees, and, if Lessor maintains and operates the Premises, the costs thereof); second, to
pay any indebtedness of Lessee to Lessor other than rent; third, to the rent due and unpaid
hereunder; and fourth, the residue, if any, shall be held by Lessor and applied in payment
of other or future obligations of Lessee to Lessor as the same may become due and
payable, and Lessee shall not be entitled to receive any portion of such revenue.
15.4 Lessor may also elect to terminate the lease and all rights of Lessee by giving notice to
Lessee of such election. If Lessor elects to terminate the lease, Lessor shall have the right
to reenter the Premises and remove all persons, and to take possession of and remove all
equipment and fixtures of Lessee in the Premises, including the Temporary Hangar, in
the manner then provided by law. Lessee hereby waives all damages that may be caused
by Lessor's reentering and taking possession of the Premises or removing or storing the
property thereof, and Lessee shall save Lessor harmless therefrom, and no such reentry
shall he considered a forcible entry. If Lessor so elects to terminate the Lease, Lessor
may also recover from Lessee:
(I) The worth at the time of the award of the unpaid rent which had been earned at the
time of termination;
(H) The worth at the time of the award of the amount by which the unpaid rent which
would have been earned after termination until the time of the award exceeds the amount
of rental loss that the Lessee proves could have been reasonably avoided;
(III) The worth at the time of the award of the amount by which the unpaid rent for the
balance of the term after the time of the award exceeds the amount of rental loss that the
Lessee proves could be reasonably avoided;
Classic Helicopter/COA Lease
Resolution No. 5227 Page 15
(IV) Any other amount necessary to compensate the Lessor for all the detriment
proximately caused by the Lessee's failure to perform its obligations under the Lease or
which in the ordinary course of things would be likely to result therefrom; and
(V) At Lessor's election, such other amounts in addition to or in lieu of the foregoing that
may be permitted from time to time by applicable law.
The "worth at the time of the award" of the amounts referred to in paragraphs (I) and (II)
above is computed by allowing interest at twelve percent (12%). The "worth at the time
of the award" of the amount referred to in paragraph (III) above is computed by
discounting such amount at the discount rate of the Federal Reserve Bank of San
Francisco at the time of the award plus one percent(1%).
15.5) Nothing in this Article 15 shall be deemed to affect Lessor's right to indemnification for
liability or liabilities arising prior to termination of this Lease for personal injury or
property damage under the indemnification provisions or other provisions of this Lease.
ARTICLE 16: RETENTION OF AIRSPACE
16.1) Lessor retains the public and private right of flight for the passage of aircraft in the
airspace above the surface of the property hereinbefore described, together with the right
to cause in said airspace such noise as may be inherent in the operation of aircraft, now
known or as hereinafter used, for navigation of or flight in said airspace and for use of
said airspace for taking off from, landing on or operating at Auburn Municipal Airport.
16.2) Lessor reserves the right to further develop or improve the landing area of the Auburn
Municipal Airport as it sees fit, regardless of the desires or view of the Lessee and
without interference or hindrance.
16.3) Lessor reserves the right, but shall not be obligated to the Lessee to maintain and keep in
repair the landing area of the Auburn Municipal Airport and all publicly-owned facilities
of the Airport, together with the right to direct and control all activities of the Lessee in
this regard.
16.4) This lease shall be subordinate to the provisions and requirements of any existing or
future agreement between the Auburn Municipal Airport and the United States, relative
to the development, operation, and maintenance of the Airport.
Classic.Helicopter/COA Lease
Resolution No. 5227 Page 16
16.5) Lessee agrees to comply with the notification and review requirements covered in Part 77
of the Federal Aviation Regulation in the event any construction is planned for the
Premises, or in the event of any planned modification or alteration of any present or
future Improvements or structure situated on the Premises.
16.6) Lessee agrees that it will not erect nor permit the erection of any structure or object, nor
permit the growth of any tree on the Premises to exceed the established height contours.
In the event the aforesaid covenants are breached, Lessor shall give written notice to the
Lessee specifying the breach. If Lessee does not take action to correct the breach within
ten (10) days of receipt of said notice, the Lessor reserves the right to enter upon the
Premises hereunder and to remove the offending structure or object and cut the offending
tree, all of which shall be at the expense of Lessee.
16.7) Lessee, by accepting this lease, agrees that it will not make use of the Premises in any
manner which might interfere with the landing and taking off of aircraft from Auburn
Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached,
Lessor reserves the right to enter upon the Premises hereby leased and cause the
abatement of such interference at the expense of Lessee.
16.8) It is understood and agreed that nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right within the meaning of Section 308a of the
Federal Aviation Act of 1958 (49 U.S.C. Section 1349a).
16.9) This lease and all the provisions hereof shall be subject to whatever right of the United
States Government now has or in the future may have or acquire, affecting the control,
operation, regulation, and taking over of the Auburn Airport by the United States during
the time of the war or national emergency.
16.10) Lessor reserves the right to take any action it considers necessary to protect the aerial
approaches of the Auburn Airport against obstructions, together with the right to prevent
Lessee from erecting or permitting to be erected any building or other structure on the
Premises which, in the opinion of Airport or the Federal Aviation Administration, would
limit the usefulness of the Auburn Airport or constitute a hazard to aircraft.
16.11) Lessee, as well as Lessee's assignees and subleases, and the agents, employees and
customers thereof, shall have the rights of access to and use of all areas and facilities of
the Auburn Airport which are intended for the common use of all Lessees and occupants
of the Auburn Airport, including but not limited to the take-off and landing areas, taxi
areas, reasonable access thereto from the Premises, and air control facilities.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 17
ARTICLE 17: FEDERAL AVIATION ADMINISTRATION
17.1) Lessee agrees:
(I) to prevent any operation on the Premises which would produce
electromagnetic radiations of a nature which would cause interference
with any existing or future navigational aid or communication aid serving
Auburn Municipal Airport, or which would create any interfering or
confusing light or in any way restrict visibility at the Airport; and
(II)to prevent any use of the Premises, which would interfere with landing or
taking off of aircraft at Auburn Municipal Airport, or otherwise, constitute
an aviation hazard.
17.2) Lessor reserves the right during the term of this Lease or any renewal and/or extension
thereof to install air navigational aids including lighting, in, on, over, under, and across
the Premises in the exercise of any of the rights hereof. Lessor agrees to give Lessee no
less than ninety (90) days' written notice of its intention to install such air navigational
aids.
ARTICLE 18: NON-DISCRIMINATION
18.1) Lessee for himself, his heirs, personal representatives, successors in interest, and assigns,
as a part of the consideration hereof, does hereby covenant and agree that in the event
facilities are constructed, maintained, or otherwise operated on the Premises described in
this lease agreement for a purpose for which a Department of Transportation ("DOT")
program or activity is extended or for another purpose involving the provision of similar
services or benefits, the Lessee shall maintain and operate such facilities and services in
compliance with all other requirements imposed pursuant to Title 49, Code of Federal
Regulations, DOT, Sub-title A, Office of the Secretary, Part 21, Non-discrimination in
Federally Assisted Programs of the Department of Transportation, Effectuation of Title
VI of the Civil Rights Act of 1964, and as said regulations maybe amended.
18:2) Lessee for himself, his personal representatives, successors in interest, and assigns, as a
part of the consideration hereof; does hereby covenant and agree that: 1) no person on the
grounds of race, color, sex, or national origin shall be excluded from participation in,
denied the benefits of, or be otherwise subjected to, discrimination in the use of said
facilities, 2) that in the construction of any improvements on, over, or under the Premises
and the furnishing of services thereon, no person on the grounds of race, color, sex, or
national origin shall be excluded from participation in, denied the benefits of, or be
Classic Helicopter/COA Lease
Resolution No. 5227 Page 18
otherwise subjected to discrimination, and 3) that the Lessee shall use the Premises in
compliance with all other requirements imposed by or pursuant to Title 49, Code of
Federal Regulations, DOT, Sub-title A, Office of the Secretary, Part 21, Non-
discrimination in Federally Assisted Programs of the Department of Transportation,
Effectuation of Title VI of the Civil Rights Act of 1964, and as said regulations may be
amended.
18.3) In the event of breach of any of the above non-discrimination covenants, Lessor shall
have the right to terminate this lease agreement and to re-enter and repossess said
Premises and the facilities thereon, and hold the same as if said lease agreement has never
been made or issued. This provision does not become effective until the procedures of 49
CFR Part 21 are followed and completed, including expiration of appeal rights.
18.4) Lessee shall furnish its accommodations and/or services on a fair, equal, and not unjustly
discriminatory basis to all users thereof and it shall charge fair, reasonable, and not
unjustly discriminatory prices for each unit or service, provided that Lessee may be
allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar
types of price reductions to volume purchasers.
18.5) Noncompliance with Article 21 above shall constitute a material breach thereof and, in
the event of such noncompliance, Lessor shall have the right to terminate this Lease and
the estate hereby created without liability therefor or, at the election of the Lessor or the
United States, either or both said Governments shall have the right to judicially enforce
the provisions of said Article 21.4.
18.6) Lessee agrees that it shall insert Sections 18.1 — 18.5 in any lease, license, or sublease
agreement by which said Lessee grants a right or privilege to any person, firm, or
corporation to render accommodations and/or services to the public on the Premises
herein leased.
18.7) The Lessee assures that it will undertake an Affirmative Action program as required by
14 CFR Part 152, Sub-part E, ("Sub-part E") to ensure that no person shall on the grounds
of race, creed, color, national origin, or sex, be excluded from participating in any
employment activities covered in Sub-part E. The Lessee assures that no person shall be
excluded on these grounds from participating in or receiving the services or benefits of
any program or activity covered by this Sub-part E. The Lessee assures that it will
require that its covered suborganizations, provide assurances to the Lessee that they
similarly will Undertake Affirmative Action programs, and that they will require
assurances from their suborganizations, as required by Sub-part E, to the same effort.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 19
ARTICLE 19: ATTORNEY'S FEES AND COSTS
If by reason of default on the part of either party to this lease agreement it becomes
necessary to employ an attorney to recover any payments due hereunder or to enforce any
provision of this lease, the prevailing party, whether such party be the successful claimant
or the party who successfully defended against the claim of the other party, shall be
entitled to recover a reasonable attorneys fee and to be reimbursed for such costs and
expenses as may have been incurred by such prevailing party.
ARTICLE 20: MISCELLANEOUS
20.1 Signage — Lessee shall have the right to install and maintain two wall mounted,
illuminated or non-illuminated signs on the 506 building and on the temporary hangar,
the cost of which utilization of private signage on airport property is incorporated into the
Lease costs. Any additional wall mounted or free standing signage shall be subject to
separate cost considerations and will be addressed in a separate addendum to this Lease.
All signage shall be subject to and in accordance with the Auburn City Code, Chapter
18.56, and Airport design standards, if any. No sign will be allowed that may be
confusing to aircraft pilots or automobile drivers or other traffic.
20.2) Security - Lessor shall have no obligation to provide security to the Premises. If
reasonably required by Lessor, Lessee shall provide adequate lighting to provide for all-
night illumination of the Taxilane apron of all buildings on the Premises, including
aprons, aircraft tiedown areas, vehicular parking lots, and pedestrian walkways
surrounding the Premises. Lessee may, but need not, employ security persons. If at any
time during the term of this lease, additional security requirements are imposed on the
Auburn Municipal Airport by the FAA or any other agency having jurisdiction, and such
additional security requirements apply to the Premises, Lessee agrees to comply with said
security requirements that affect the Premises, at Lessee's sole expense, upon being
notified of such requirements in writing by Lessor. If Lessor is fined by FAA for a
security violation caused by negligence of Lessee, or any of Lessee's sub-Lessees, Lessee
shall immediately reimburse Lessor upon demand.
20.3) No Brokers - Lessee represents and warrants to Lessor that it has not engaged any broker,
finder or other person who would be entitled to any commission or fees in respect of the
negotiation, execution or delivery of this lease and shall indemnify and hold harmless
Lessor against any loss, cost, liability or expense incurred by Lessor as a result of any
claim asserted by any such broker, finder or other person on the basis of any
arrangements or agreements made or alleged to have been made by or on behalf of
Lessee.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 20
20.4) Regulatory Compliance - The Lessee agrees, at its sole cost and expense, to conform to,
comply with and abide by all lawful rules, codes, ordinances, requirements, orders,
directions, laws, regulations and standards of the United States, the State of Washington,
and City of Auburn or agency of any of said entities, including rules and regulations of
Lessor, including without limitation those relating to environmental matters, and
regulations set forth by the Environmental Protection Agency, now in existence or
hereafter promulgated, applicable to the Lessee's use and operation of said Premises,
including the construction of any improvements thereon, and not to permit said Premises
to be used in violation of any of said rules; codes, laws or regulations. Lessee shall pay all
costs, expenses, liabilities, losses, damages, fines, penalties, claims, and demands,
including reasonable counsel fees, that may in any manner arise out of or be imposed
because of the failure of Lessee to comply with the covenants of this section.
20.5) Liens & Insolvency - Lessee shall keep the Premises free from any liens. In the event
Lessee becomes insolvent, voluntarily or involuntarily bankrupt, or if a receiver, assignee
or other liquidating officer is appointed for the business of the Lessee, then the Lessor
may terminate this lease at Lessor's option.
20.6) Non Waiver - Waiver by Lessor of any term, covenant or condition herein contained or
any breach thereof shall not be deemed to be a waiver of such term, covenant, or
condition or of any subsequent breach of the same or any other term, covenant, or
condition herein contained.
20.7) Force Majeure - Except for the payment of Rent or other sums payable by Lessee to
Lessor, time periods for Lessee's or Lessor's performance under any provisions of this
lease shall be extended for periods of time during which Lessee's or Lessor's
performance is prevented due to circumstances beyond Lessee's or Lessor's control,
including without limitation, strikes, embargoes, shortages of labor or materials,
governmental regulations, acts of God, war or other strife.
20.8) Severability - If any term, covenant, or condition of this lease (or part thereof) or the
application thereof to any person or circumstance is, to any extent, invalid or
unenforceable, the remainder of this lease (and/or the remainder of any such term,
covenant or condition), or the applicability of such term, covenant or condition to persons
or circumstances other than those to which it is held invalid or unenforceable, shall not be
affected thereby and each term, covenant or condition (or part thereof) of this lease shall
be valid and be enforced to fullest extent permitted by law.
20.9) Choice of Law, Integration, and Interpretation — This lease and the rights of the parties
hereunder shall be governed by and interpreted in accordance with the laws of the State
of Washington and venue for any action hereunder shall be in King County, Washington.
This Lease, together with any subsequent amendments or addendums, constitutes the
entire agreement of the parties and no other understandings, oral or otherwise, regarding
Classic Helicopter/COA Lease
Resolution No. 5227 Page 21
this lease shall exist or bind any of the parties. All captions, headings or titles in the
paragraphs or sections of this lease are inserted for convenience of reference only and
shall not constitute a part of this lease or act as a limitation of the scope of the particular
paragraph or sections to which they apply. Construction of this lease shall not be affected
by any determination as to who is the drafter of this lease, this lease having been drafted
by mutual agreement of the parties.
20.10) Gate Cards - Lessee shall coordinate with the Airport Manager upon Commencement of
the Lease to determine and checkout the appropriate number of gate cards needed for
sufficient operations at the Airport. Lessee shall be responsible for the management of the
gate cards issued and responsible for the actions of any person that gains access using the
cards and shall not make the gate cards available to anyone not affiliated with Lessees
operations. Lessee shall promptly report any gate cards that have been lost, stolen or not
returned to the Airport Office and must obtain replacement cards per the current fee
schedule prices. Upon termination or expiration of the Lease without any extensions
thereof, Lessee shall immediately and without notice or demand return the gate cards to
the Office of the Airport Manager.
20.11 Gate Codes - Gate codes will be provided for personnel gate access onto the Airport.
Gate codes are subject to change as determined and in the sole discretion of the Lessor.
Lessee shall be notified prior to changing of the gate codes and it shall be the
responsibility of the Lessee to notify their customers and employees of said change.
Lessee shall immediately notify the Lessor and the office of the Airport Manager if the
codes need to be changed to prevent access from a customer or employee to maintain
security.
20.12) Authority- Each party hereto warrants that it has the authority to enter into this lease and
to perform its obligations hereunder and that all necessary corporate action to authorize
this transaction has been taken, and the signatories, by executing this lease, warrant that
they have the authority to bind the respective parties.
ARTICLE 21: SIGNATURE
By signing in the space below, the LESSEE ACKNOWLEDGED HAVING READ AND
UNDERSTOOD AND AGREES TO THE CONTENTS OF THIS AGREEMENT.
[Signtatures on following page]
Classic Helicopter/COA Lease
Resolution No. 5227 Page 22
Dated and Signed this MO day of June, 2016.
CITY OF AUBURN:
£ CCYaor
ATTEST:
Danielle E. Daskam, City Clerk
APP t a 1 D AS TO FORM:
0. fA _seLan-Win
raniel B. Heid, City Attorney
Dated and Signed this{day of June, 2016.
CLASSIC HELICOPTER CORRPORATION:
F. �g�y�g� y Baker�S cr�tary/Treasurer
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this w day of June, 2016, before me, a Notary Public in and for the State of Washington,
duly commissioned and sworn, personally appeared Nancy Backus, to me known to be the
Mayor of the City of Auburn, the Lessor named in and which executed the foregoing instrument;
and she acknowledged to me that she signed the same as the free and voluntary act and deed of
said Lessor.
WITNESS my hand and official seal the day and year in this certificate above written.
Classic Helicopter/COA Lease
Resolution No. 5227 Page 23
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Notary Public in and for the State of Washington,
s A �� O
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„A 4,,�1 4.2.;,,,C2: = residing at aid,UX{�c 1�a--
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Mycommission•e e
1) , 0018
STATE OF WASHINGTON )
) ss.
COUNTY OF KING )
On this I_" day of June, 2016, before me, a Notary Public in and for the State of Washington,
duly commissioned and sworn, personally appeared F. Gregory Baker, to me known to be the
Secretary/Treasurer of Classic Helicopter Corporation, the Lessee named in and which executed
the foregoing instrument; and he acknowledged to me that he signed the same as the free and
voluntary act and deed of said Lessee.
WITNESS my hand and official seal the day and year in this certificate above written.
oja`o°N ''n,,�y�� Notary Public in and for the State of Washington,
5 rn u -•4p4 r residing a ��
i cs 5
i 5.1 "
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Ilist.VA H N ^1.=
My commission expires: /0/9//7
Classic Helicopter/COA Lease
Resolution No. 5227 Page 24
EXHIBIT A --
LEGAL DESCRIPTION FOR AIRPORT LAND LEASE AREA
THAT PORTION OF LOT A OF CITY OF AUBURN LOT LINE ADJUSTMENT NUMBER LLA-0005-97
RECORDED UNDER RECORDING NUMBER 9703181099, RECORDS OF KING COUNTY,
WASHINGTON, BEING A PART OF THE JOSEPH BRANNAN DONATION LAND CLAIM NO. 38 IN
THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 7,TOWNSHIP 21
NORTH, RANGE S EAST,W.M., CITY OF AUBURN, KING COUNTY, WASHINGTON, SAID PORTION
MORE FULLY DESCRIBED AS FOLLOWS:
COMMENCING AT THE ENCASED BRASS MONUMENT AT THE CENTERLINE OF "E" STREET NE
AND 22ND STREET NE;THENCE ALONG SAID CENTERLINE OF "E" STREET NE, NORTH 00°39'04"
EAST A DISTANCE OF 214.65 FEET;THENCE LEAVING SAID CENTERLINE LINE, NORTH 89°21'34"
WEST A DISTANCE OF 25.00 FEET TO THE EAST LINE OF SAID LOT A;THENCE CONTINUING
NORTH 89°2134 WEST A DISTANCE OF 227.60 FEET TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING NORTH 89°21'34" WEST A DISTANCE OF 160.99 FEET;
THENCE SOUTH 00°38'26" WEST A DISTANCE OF 115.57 FEET;
THENCE SOUTH 89°21'34" EAST A DISTANCE OF 92.73 FEET;
THENCE NORTH 00°38'26" EAST A DISTANCE OF 23.52 FEET;
THENCE SOUTH 89°21'34" EAST A DISTANCE OF 68.26 FEET;
THENCE NORTH 00°38'26" EAST A DISTANCE OF 92.06 FEET TO THE TRUE POINT OF BEGINNING.
CONTAINING 17,000 SQUARE FEET(0.39 ACRES), MORE OR LESS.
PTR.Bp
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CITY OF AUBURN, KING.COUNTY, WASHINGTON NE CORNER
SECTION 7,1..21 N., R. 5 E., W.M. BRANNAN DLC NO 38
N 89°03'13'W 455.00'
LOT
LLA'88°5-97
EXISTING TAXIWAY LINE 0 0# 9761k4`181 o
m
o TPOB =
39.50' `• N09°21'34'W N89°21'34'W 252.60 I 1-
160.99' m 227.60 15,00 Q
J
r gi Z •
; AIRPORT• LANDI L8 41L4 O1 CITY OF AUBURN >
I" LEASE 1• J • W TAX PARCEL #0000800009 CD
Z MIS AREA . HAREAR •• . N o
I
a.r 17,000 SO FT fr_ r'_W
o m. (0.39 ACRES) wI TRUE POINT OF BEGINNING- n I 71 L2 0
9. . �m,3, Q
z S89°21'34'E o
0
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LINE TABLE
w LINE BEARING DIST. LV
L1 N 00°3826"E 23.52' Z
°"" "''S L2 S B9°21'34'E 68.26' y
O0OR1W Bugrl7 L3 S 00°38.26"W 64.61' ELI — —
Q,CoF ��"{\.;y� ; L4 N89°21'34'W n.15' 22ND ST NE '
IT'O-; .1 Oy Q� do
L5 S 00°38'26"W. 60.00'
y ; 12VL6 N 89'21'34'W 50.00' POINT OF
" °.�L".' ¢ ' by
L7 N 00°38'26'E 60.00' COMMENCEMENT
. o ; 1
{�';
i,• 1�., 9�• 956 .:,ty \ L8 S 99°21134'E 50.00'
:: 'rJ' E�/S1EPE�'Q` I
1 _
7O'v4L LAN0SJ ? SCALE: 1"=80 FEET
THIS DRAWING IS TO ACCOMPANY THE LEGAL DESCRIPTION FOR THE 1 MI'
LEASE AREA AND DOES.NOT REPRESENT A BOUNDARY SURVEY 0 40 80 160
CITY
J- EXHIBIT "B-2"
PROJ:Q0509 CLASSIC
.;.�.,� CITY OF AUBURN EXHIBIT MAP
. . 05/18!2016
• WASHINGTON PUBLIC WORKS•.DEPARTMENT Q0509-AUBURN MUNICIPAL AIRPORT DRAWN BY:TAG
LAND LEASE 8 HANGAR AREA
Arlt) 10-21-06 11--01
rie':;I.\ '?ice ii!i TRIC-t it; 'T °ulL I
c15' _IIIIIIIIiIIIfII
.� III _ IIID III
20160926000938
FIRST AMERICAN AG 81.00
Return Address: PAGE-001 of 009
09/26/2016 14:22
Auburn City Clerk KING COUNTY, WA
City of Auburn
25 West Main St.
Auburn, WA 98001
RECORDER'S COVER SHEET
Document Title(s) (or transactions contained therein):
Airport Future Development Agreement
Reference Numbers) of Documents
❑Additional reference#'s on page of document
Grantor(s)/Borrower(s) (Last name first, then first name and initials)
LA % ►�-,til-
Said rtnrame tat,4vewcnld of
Grantee/Assignee/Beneficiary: (Last name first) record as an accomodation only.
It has not been examined as to
n 1 proper execution or as to its
C _ % P . p n—b- effect upon title
Legal Description (abbreviated: i.e. lot, block, plat or section, township, range)
484
❑Additional legal is on page_of document.
Assessor's Property Tax Parcel/Account Number
❑Assessor Tax#not yet assigned /�//
Return Address:
City of Auburn
City Clerk
25 West Main
Auburn,WA 98001
Above this line reserved for recording information.
EXHIBIT C
AIRPORT FUTURE DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF AUBURN AND CLASSIC HELICOPTERS
THIS AGREEMENT is entered into by the City of Auburn ("CITY") and Classic
Helicopters ("CLASSIC") and is intended to be a companion and mutually executed instrument
to the standard lease agreement for business use and occupancy at the Auburn Municipal Airport
between the CITY and CLASSIC.
WHEREAS, CLASSIC is a current business engaged in helicopter tours, charters, sales
and leasing that operates out of Boeing Field; and,
WHEREAS, CLASSIC previously approached the CITY regarding the relocation of its
business operations to the Auburn/Municipal Airport; and,
WHEREAS, on April 18, 2016, the Auburn City Council approved Resolution No. 5227
that authorized the Mayor to negotiate and execute a formal lease agreement that substantially
meets the terms contained within the term sheet attached to the Resolution; and,
WHEREAS, the Auburn City Council's approval of Resolution No. 5227 was premised
on the execution of a companion agreement to the lease agreement addressing CLASSIC's intent
to develop or otherwise relocate to permanent business facilities for its operation at the Auburn
Municipal Airport; and,
WHEREAS, this lease upon mutual execution will authorize CLASSIC's rental of office
space at the Airport Management Office and the rental of airport surface area for the installation
of a temporary hangar building and associated ramp space; and,
WHEREAS, CLASSIC has indicated its interest in development of a permanent office
and hangar building using one of the following options:
1
1. Locate and develop a company owned permanent facility on one of the development
sites specified in the Airport Layout Plan contained within the current Federal
Aviation Administration (FAA) approved Airport Master Plan for the Auburn
Municipal Airport; or
2. Locate a permanent facility in a structure built in part or in whole at the Airport by
others on one of the development sites specified in the Airport Layout Plan; or
3. Purchase an existing structure at the Airport for its permanent facility.
WHEREAS, CLASSIC has advised the CITY that it will require thirty-six (36) months
from the date of mutual lease execution to develop said permanent office and hangar space
during which time it would occupy the spaces specified in the lease agreement; and,
WHEREAS, the CITY desires to have CLASSIC to locate said permanent office and
hangar space at Auburn Municipal Airport and further desires that substantive progress is
demonstrated during the aforementioned thirty-six (36) month period inclusive of the completion
of key milestone actions; and,
WHEREAS, CLASSIC desires and intends to demonstrate substantive progress to the
CITY during the aforementioned thirty-six (36)month period; and
WHEREAS, CLASSIC needs flexibility and reasonable time to evaluate and implement
the most business appropriate and cost efficient option for permanent relocation and/or
development; and
WHEREAS, the CITY desires to work with CLASSIC to accommodate its development
needs to the extent it can do so within its municipal authority.
NOW THEREFORE, IT IS HEREBY AGREED by the parties as follows:
CLASSIC shall proceed in good faith towards the financing, design, construction and
occupancy of permanent office and hangar space at the Auburn Municipal Airport full
accordance with the following performance measures and timelines:
SECTION I. Performance Measures and Timeframes
Performance Measure No. 1: Prepare and submit by June 30, 2017 a pre-application
conference application to the CITY for the location and development of permanent office and
hangar space at the Auburn Municipal Airport. If, however, CLASSIC determines to either: a)
locate in a structure built in part or in whole by others on one of the development sites specified
in the Airport Layout Plan or b) to purchase an existing structure for its permanent facility, then
CLASSIC shall by June 30, 2017 submit to the City's specified contact a signed and dated Letter
of Intent specifying its intent to do one of the preceding actions. If this Letter of Intent is
submitted, a pre-application conference application submittal shall not be required.
Performance Measure No. 2: If CLASSIC determines to locate and develop permanent
office and hangar space at the Auburn Municipal Airport and/or if it determines to locate in a
2
structure built in part or in whole by others on one of the development sites specified in the
Airport Layout Plan or to purchase an existing structure for its permanent facility and either of
these decisions require improvements to the exterior or interior of buildings or associated
parking and landscaping areas, CLASSIC shall no later than January 31, 2018 prepare and
submit all required and applicable building, land use, environmental and civil applications of and
all required written studies, documentation and to-scale plans and drawings prepared by licensed
professionals in the State of Washington, as appropriate.
Performance Measure No. 3: If CLASSIC determines to locate and develop permanent
office and hangar space at the Auburn Municipal Airport and/or if it determines to locate in a
structure built in part or in whole by others on one of the development sites specified in the
Airport Layout Plan or to purchase an existing structure for its permanent facility and either of
these decisions require improvements to the exterior or interior of buildings or associated
parking and landscaping areas, CLASSIC shall no later than September 30 2018, complete all
required and applicable building, land use, environmental and civil application reviews with the
CITY.
Performance Measure No. 4: CLASSIC shall no later than December 31, 2018 award
any and all relevant and applicable construction contract(s) related to one of the options for
permanent office and hangar space specified herein.
Performance Measure No. 5: CLASSIC shall no later than March 31, 2019 commence
construction for any and all relevant and applicable construction related to one of the options for
permanent office and hangar space specified herein.
Performance Measure No. 6: CLASSIC shall no later than October 31, 2019 complete
any and all relevant and applicable construction related to one of the options for permanent
office and hangar space specified herein,provided, that upon mutual coordination and evidence
of good faith effort, the CITY may extend this timeframe to a later date.
Performance Measure No. 6: CLASSIC shall no later than December 31, 2019 obtain
final occupancy authorization and occupy one of the options for permanent office and hangar
space specified herein, , provided, that upon mutual coordination and evidence of good faith
effort, the CITY may extend this timeframe to a later date.
SECTION II. CITY Performance
In recognition of the CITY's interest of having a permanent hangar/office facility
constructed and operated by CLASSIC at the Auburn Municipal Airport, the CITY shall
endeavor to provide on-going and consistent high quality customer service to CLASSIC and
shall work with CLASSIC to assist CLASSIC in meeting its obligations as stated herein without
undue or intentional delays in activities or responsiveness by the CITY. The CITY shall meet
periodically with CLASSIC to monitor its development progress and advice CLASSIC of steps it
would recommend to accommodate future steps in CLASSIC's development, to accomplish the
purposes hereof. The City shall provide written information needed or requested by CLASSIC in
a timely manner as it proceeds to comply with the performance measures stated herein. The
CITY shall notify CLASSIC in a timely manner of changes in City policies, fees or business
3
practices pertaining to the Auburn Municipal Airport that could directly or indirectly impact
CLASSIC's ability to comply with the performance measures.
SECTION III. Default
Subject to extensions of time by mutual consent in writing, failure or delay by CLASSIC
to perform any term or provision of this Agreement shall constitute a default both of this
AGREEMENT and a breach of contract of the executed lease agreement for temporary use and
occupancy of space at the Auburn Municipal Airport that may lead to termination by the CITY
of said lease agreement. In the event of alleged default or breach of any terms or conditions of
this Agreement, the CITY shall provide CLASSIC not less than fifteen (15) calendar days'
notice in writing specifying the nature of the alleged default and the manner in which said default
may be cured. During this fifteen (15) calendar day notice period, CLASSIC shall not be
considered in default for purposes of termination or institution of legal proceedings.
After notice and expiration of the fifteen (15) calendar day notice period if such default
has not been cured or is not being diligently cured in the manner set forth in the notice the CITY
may at its option institute legal proceedings pursuant to this Agreement.
SECTION IV. Recording
The Agreement shall be recorded with the Real Property Records Division of the King
County Records and Elections Department. The Agreement shall bind and inure to the benefit of
the parties and their successors in interest consistent With terms and timeframes stated herein.
SECTION V. Dispute Resolution
In the event of a dispute regarding:the interpretation of this Agreement where there is not
already a procedure provided for in the Agreement each party will attempt to resolve the dispute.
If the Parties cannot resolve the dispute, any of the Parties may request mediation. The Parties
will agree on a mediator. If Parties cannot agree on a mediator within ten (10) calendar days of
any party requesting mediation each Party will choose a mediator and the two mediators will
choose a third to mediate the dispute. If mediation fails this matter shall be heard in the Superior
Court of King County Washington.
SECTION VI. Extensions
This Agreement and all terms, timeframes and conditions stated herein may only be extended
by the CITY.
SECTION VII. Termination
This Agreement shall terminate upon full completion of all Performance Measures.
4
SECTION VIII. Parties in Interest
This Agreement shall be binding upon and the benefits and obligations provided for herein
shall inure to and bind the parties hereto and their respective successors and assigns provided
that this section shall not be deemed to permit any transfer or assignment otherwise prohibited by
this Agreement This Agreement is for the exclusive benefit of the parties hereto and it does not
create a contractual relationship with or exist for the benefit of any third party including
contractors subcontractors and their sureties.
SECTION IX. Costs to Prevailing Party(ies)
In the event of such litigation or other legal action to enforce any rights, responsibilities or
obligations under this Agreement, the prevailing party (ies) shall be entitled to receive its
reasonable costs and attorney's fees.
SECTION X,.Applicable Law
This Agreement and the rights of the parties hereunder shall be governed by and
interpreted in accordance with the laws of the State of Washington and venue for any action
hereunder shall be in King County Washington provided however that it is agreed and
understood that any applicable statute of limitation shall commence no later than the last day of
the date of termination as specified herein.
SECTION XI. Nondiscrimination
None of the Parties shall discriminate on the basis of any protected class as defined by
any state, federal or local ordinance including but not limited to race color national origin
disability age or sex in the performance of this Agreement.
SECTION XII. Captions, Headlines and Titles
All captions headings or titles in the paragraphs or sections of this Agreement are inserted
for convenience of reference only and shall not constitute a part of this Agreement or act as a
limitation of the scope of the particular paragraph or sections to which they apply. Terms not
specifically defined in this Agreement shall have the same definition as in the applicable section
of the Auburn City Code. As used herein, where appropriate, the singular shall include the plural
and vice versa and masculine, feminine and neuter expressions shall be interchangeable.
Interpretation or construction of this Agreement shall not be affected by any determination as to
who is the drafter of this Agreement, this Agreement having been drafted by mutual agreement
of the parties.
5
SECTION XIII. Severable Provisions
Each provision of this Agreement is intended to be severable. If any provision hereof is
illegal or invalid for any reason whatsoever, such illegality or invalidity shall got affect the
validity of the remainder of this Agreement.
SECTION XIV. Entire Agreement
This Agreement contains the entire understanding of the parties hereto in respect to the
transactions contemplated hereby and supersedes all prior agreements and understandings
between the parties with respect to such subject matter.
SECTION XV. Authority to Sign
Signatories to this Agreement warrant and agree that they are duly authorized to sign the
Agreement on behalf of the CITY and CLASSIC.
SECTION XVI. Counterparts
This Agreement may be executed in multiple counterparts, each of which shall be one
and the same Agreement and shall become effective when one or more counterparts have been
signed by each of the parties and delivered to the other parties.
[Signatures on next page]
6
Dated and Signed this IG€ day oftA„g, , 20 H. .
CITY OF AUBURN:
ANCY : S
Mayor
TITLE
ATTEST: APP' ei EDt. i O'
� � /
Danielle E. Daskam, i "iel B. Heid,
City Clerk City Attorney
Dated and Signed this . day of 91 Q _ , 201(0.
STATE OF WASHINGTON ) (/
+ . ) ss.
County of K-A )
•
The undersigned Notary Public hereby certifies: That on this It ' day of ,
20 1(0 , personally appeared before me Ni O n Ge t auto to • (name),
major (title), and
(name), U (title), to me known to be the indiVidual(s)
described in and who executed the within instrument, and acknowledged that he/&V'they signed
and sealed the sameas his/f E/their free and voluntary act and deed, for the purposes and uses
therein mentioned, and on oath stated that he/I/they a /were duly authorized to execute said
doi-h� ab t�
document on behalf of C -c„(aiUr/? •
?1
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and
year fifst above written.
Notary ti'r=�e�" °{�4''.,
ResidingPat akdo u rrn t State of Washington,
-c f.> tAit 44 i USA
r.o g S My commission expires fl Y �1 c aD( 8
AVBC' z O
,rlt�� ib k
OF
AO
1X1`\`1
Dated and Signed this --/ day of citAnica. , 20147.
CLASSIC HELICOPTER CORPORATION:
c_.> . . .
F. Gres: Bake,
Secretary/Treasurer
TITLE
STATE OF WASHINGTON )
) ss.
County of )
The undersigned Notary Public hereby certifies: That on this PK day of „u.,yt.s_2 ,
20 go. personally appeared before me �-� QQX J (name),
.[-e0-4-• (title), and
(name), (title), to me known to be the individual(s)
described in and who executed the within instrument, and acknowledged that he/she/they signed
and sealed the same as his/here/their free and voluntary act and deed, for the purposes and uses
therein mentioned, and on oath stat that he/she/they was/were duly authorized to execute said
docuinent.onbehalf ofaetac t _ eCt.i0 ,
In Witness Whereof I have hereunto set my hand and affixed my official seal the day and
year first above written.
' RA A e0",,i
i.IQs .ii"""-iv o,, �i� f �/
=rod sor t", F!4 ✓(AirrtC�LQ. ]'" • ���
• 11 - g Notary Public in and for the State of Washington,
st` '*n,�•09-i9��r= Residing at 4wLc�Y� GOA
r
//,,t�u WA3H`NG��� My commission expires /0 - q —/ 9
8
CITY OF * ADMINISTRATIVE
,
R$ POLICY AND PROCEDURE
• - sr— WASHINGTON
TITLE: SUBJECT: FINANCE
AUBURN MUNICIPAL AIRPORT
MINIMUM OPERATING STANDARDS NDEX NUMBER: 100-81
EFFECTIVE DATE SUPERSEDES PAGE PREPARED BY: MAYOR'S APPROVAL
11/26/07 NEW 1 of 27 SHELLEY S/S
COLEMAN
1.0 PURPOSE
Minimum operating standards provided in this document and any amendments thereto
(hereinafter referred to as "regulations"), adopted pursuant to the Auburn City Code, are
intended for the safe, orderly and efficient operation of the airport, and apply to all persons using
the airport for any reason.
In addition to any other stated penalties, anyone who violates or fails to comply With Shy
provisions of these rules and regulations shall upon conviction there of be punished as provided
in ACC 1.25.050. A violation of any of therules or regulations set forth in this chapter shall be
deemed sufficient cause for the Airport Manager to deny or prohibit access to or use of the
airport by the responsible person or firm.
2M ORGANIZATIONS AFFECTED
All departments/divisions
3.0 REFERENCES
Ordinance No. 6118
TITLE: INDEX NO: PAGE
ADMINISTRATIVE Auburn Municipal Airport
POLICY AND PROCEDURE Minimum Operating Standards 100-81 2 OF 27
4.0 POLICY
TABLE OF CONTENTS
ARTICLE 1 DEFINITIONS; APPLICATION; WAIVER 4-5
Section 1-1 Definitions 4
Section 1-2 Application of Minimum Operating Standards 4
Section 1-3 Multiple activities by one commercial airport operator 4
Section 1-4 Activities not covered by Minimum Operating Standards 4
Section 1-5 Waiver or modification of standards 4
ARTICLE 2 APPLICATION PROCESS 5-7
Section 2-1 Applications 5
Section 2-2 Processing; denial 6
Section 2-3 Appeal Process 7
ARTICLE 3 GENERAL CONTRACTUAL PROVISIONS 7-8
Section 3-1 General Provisions 7
ARTICLE 4 INSURANCE 8-9
Section 4-1 General insurance requirements 8
Section 4-2 Additional insurance required
by City's risk management director 9
Section 4-3 Form;acceptance by City 9
ARTICLE 5 GENERAL OPERATIONAL REQUIREMENTS 9- 11
Section 5-1 Airport Rules and Regulations 9
Section 5-2 Taxiway access 9
Section 5-3 Right-of-entry reserved 9
Section 5-4 Rates and charges 10
Section 5-5 Personnel, subtenants and invitees; control and demeanor 10
Section 5-6 Interference with utilities and systems 10
Section 5-7 Fire equipment 10
Section 5-8 Vehicle Identification 10
Section 5-9 Indemnification 10
ARTICLE 6 FIXED BASE OPERATORS...........................................................................x..11-15
Section 6-1 Statement of concept 11
Section 6-2 Land and facility requirements 11
Section 6-3 Hours of operation 12
Section 6-4 Subcontracting services; restrictions 12
Section 6-5 Minimum requirements of FBO services 12
Section 6-6 Insurance 14
Section 6-7 Monthly aeronautical business permit fee 14
TITLE: INDEX NO: PAGE
ADMINISTRATIVE Auburn Municipal Airport
POLICY AND PROCEDURE 100-81 3 OF 27
Minimum Operating Standards
TITLE: INDEX NO:
ADMINISTRATIVE Auburn Municipal Airport PAGE
POLICY AND PROCEDURE 4 OF 27
Minimum Operating Standards 100-8'1
ARTICLE 7 GENERAL AVIATION SPECIALTY SERVICES 15-23
Section 7-1. Hangar leasing services 15
Section 7-2. Aircraft sales services 16
Section 7-3. Aircraft maintenance and repair services 16
Section 7-4. Aircraft leasing or rental services 17
Section 7-5. Flight training services 17
Section 7-6. Specialized aircraft repair services 18
Section 7-7. Aircraft charter services 18
Section 7-8. Specialized commercial flying services 19
Section 7-9. Aircraft management services ................................................................... 19
Section 7-10. Mobile aircraft washing services 20
Section 7-11. Mobile aircraft maintenance and repair services 21
Section 7-12. On-Airport Rental Car Concession Services 22
Section 7-13. Off-Airport Rental Car Concession Services 22
Section 7-14. Off-Airport Catering Services 22
Section 7-15. Charter Brokerage Services 23
TITLE: INDEX NO:
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Minimum Operating Standards
ARTICLE 1 DEFINITIONS; APPLICATION; WAIVER
Section 1-1. Definitions.
All definitions contained in the Auburn City Code and the airport Rules and Regulations are
incorporated by reference into these Minimum Operating Standards. For purposes of these
Minimum Operating Standards, all references to the "Rules and Regulations" are to the airport
Rules and Regulations.
Section 1-2. Application of Minimum Operating Standards.
All persons conducting commercial aeronautical activities at the airport (hereinafter referred to as
commercial airport operator), shall, as a condition of conducting such activities, comply with all
applicable requirements concerning such activities as set forth in these Minimum Operating
Standards and any amendments thereto. The requirements set forth herein are the minimum
standards which are applicable to persons conducting commercial aeronautical activities at the
airport and all persons are encouraged to exceed such minimum standards in conducting their
activities. These Minimum Operating Standards shall be deemed to be a part of each commercial
airport operator's lease, license, permit or agreement with or from the City unless any .such
provisions are waived or modified by the City pursuant to section 1-5. The mere omission of any
particular standard from a commercial airport operator's written lease, license, permit or
agreement with the City shall not constitute a waiver or modification of such standard in the
absence of clear and convincing evidence that the City intended to waive or modify such standard.
Section 1-3. Multiple activities by one commercial airport operator.
Whenever a commercial airport operator conducts multiple activities pursuant to one lease,
license, permit or agreement with the City, such commercial airport operator must comply with the
minimum standards set forth herein for each separate activity being conducted.. If the minimum
standards for one of the commercial airport operator's activities are inconsistent with the minimum
standards for another of the commercial airport operator's activities, then the minimum standards
which are most beneficial to the City, and/or which are most protective of the public's health,
safety and welfare, shall apply.
Section 1-4. Activities not covered by Minimum Operating Standards.
Any activities for which there are no specific minimum standards set forth herein shall be subject
to such standards and provisions as are developed by the airport director on a case-by-case basis
and set forth in such commercial airport operator's written lease, license, permit or agreement with
or from the City and shall pay the aeronautical business permit fee as set forth in the City of
Auburns fee schedule.
Section 1-5. Waiver or modification of standards.
The Airport Supervisor may waive or modify any portion of these Minimum Operating Standards
for the benefit of any governmental agency performing non-profit public services, fire protection or
fire-fighting operations. The City's Airport Supervisor may waive or modify any portion of these
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Minimum Operating Standards
Minimum Operating Standards for any person when it is determined that such waiver or
modification is in the best interest of the City and will not result in unjust discrimination among
commercial airport operators at the airport.
ARTICLE 2 APPLICATION PROCESS
Section 2-1. Applications.
Any person who desires to conduct any commercial aeronautical activities at the airport covered
by these Minimum Operating Standards shall, prior to conducting such activities, submit an
Aeronautical Business Permit Application to the Airport Manager, and receive approval thereof,
from the Airport Supervisor. In addition to the following requirements, the Airport Manager may
require the applicant to provide additional information which is necessary to ensure compliance
with the Auburn City Code, Rules and Regulations, and/or these Minimum Operating Standards.
The applicant shall, at minimum, submit the following documentation with the above-referenced
application:
(a) A detailed description of the scope of the intended operations, including all services to be
offered;
(b) The amount of land, office space, and/or aircraft storage areas required for the operation;
(c) A detailed description of any improvements or modifications to be constructed or made to
airport property, including cost estimates and a construction timetable;
(d) The proposed hours of operation;
(e) Documentation of the applicant's financial capabilities to construct any improvements and to
conduct any proposed activities;
(f) A detailed description and/or evidence of the applicant's technical abilities and experience in
conducting the proposed activities, including personal references;
(g) The commencement date for the applicant's activities and the term of the lease, license, permit
or agreement sought, including all option periods;
(h) One of the following:
1. If the applicant is a corporation, a copy of the articles of incorporation as filed with the
State of Washington;
2. If the applicant is a limited liability company, a copy of the articles of organization filed
with the State of Washington;
3. If the applicant is a limited partnership, a copy of the certificate of limited partnership
filed with the State of Washington; or
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4. If the applicant is a general partnership, a copy of the written partnership agreement;
(i) An original copy of a certificate of insurance, in the amounts outlined hereunder, naming the
City as an additional insured;
Q) A copy of a lease/sublease or other agreement with the City or a bona fide airport tenant;
(k) A copy of the applicant's City of Auburn Business License;
(I) A rates and charges schedule of all services to be conducted at Auburn Municipal Airport; and
(m) Copies of applicable Federal Aviation Administration (FAA) certificates.
Section 2-2. Processing; denial
The Airport Manager, in accordance with these Minimum Operating Standards, shall be
responsible for processing an application for an Aeronautical Business Permit. The Airport
Manager may deny any application if the Airport Manager determines that:
(a) The applicant does not meet the qualifications and standards set forth in the Auburn City
Code, the Rules and Regulations, or these Minimum Operating Standards;
(b) The proposed activities are likely to create a safety hazard at the airport;
(c)The activities will require the City to expend funds, or to supply labor or materials as a result of
the applicant's activities, or will result in a financial loss to the airport;
(d) No appropriate space or land is available to accommodate the proposed activities;
(e) The proposed activities are not consistent with the airport's master plan and/or airport layout
plan;
(f) The proposed activities are likely to result in a congestion of aircraft or buildings, a reduction in
airport capacity, or an undue interference with airport operations or the operations of any existing
airport users at the airport;
(g) The applicant or any of its principals has knowingly made any false or misleading statements
in the course of applying for a lease, license, permit or agreement;
(h) The applicant or any of its principals has a record of violating the Auburn City Code, the Rules
and Regulations, these Minimum Operating Standards, federal aviation regulations or any other
applicable laws, ordinances, rules or regulations;
(i) The applicant does not have the technical capabilities or experience or financial resources to
properly conduct the proposed activities;
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(j) The applicant has not submitted appropriate documentation supporting the proposed activity as
outlined in section 2-1.
Section 2-3. Appeal process.
The applicant shall have the ability to appeal the denial of an application by the Airport Manager,
subject to the following provisions:
(a) Providing written notice of appeal to the Airport Manager within ten (10) days of said denial..
(b) The notice of appeal will be forwarded to the Airport Supervisor for review.
(c) Applicant shall be notified in writing of the date of the scheduled appeal review.
(d) Applicant shall be present at the appeal review to justify the applicant's application. If applicant
is not present, the.Airport Manager's denial shall remain unchanged.
(e) The Airport Supervisor shall take comments from the applicant and the Airport Manager.
(f) The Airport Supervisor shall render its decision in writing within ten (10) calendar days of the
conclusion of the appeal and the decision shall be final as to the denial or approval of the
application.
ARTICLE 3 GENERAL CONTRACTUAL PROVISIONS
Section 3-1. General provisions.
Except as otherwise provided in the Auburn City Code, all leases, licenses, permits or agreements
with the City which affect the airport are subject to the following provisions:
(a) Rights to engage in specific activities at the airport are non-exclusive.
(b) Defense and indemnification of the City and its elected or appointed officials, officers,
representatives, directors, commissioners, agents and employees from and against all damages;
claims, suits, actions, losses and expenses (including court costs and reasonable attorney's fees)
for personal injury or death or for property damage or loss arising out of the use of the airport;
(c) A termination clause allowing the City to terminate the commercial airport operator's lease,
license, permit or agreement no later than thirty (30) days after notice of default is given to the
commercial airport operator if the commercial airport operator fails to cure its default within the
thirty (30) day period, and allowing the City to terminate the lease, license, permit or agreement
immediately if the commercial airport operator fails to maintain the required insurance.
(d) No improvements or modifications to airport property without the prior written consent of the
City and without posting appropriate payment and performance bonds. Before commencing any
improvements or modifications, the commercial airport operator shall submit detailed construction
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plans and specifications to the City. Upon completion of the construction, the commercial airport
operator shall provide the City with two (2) complete sets of detailed plans and specifications of
the work as completed. All improvements or modifications made to airport property shall become
the property of the City, at no cost to the City, upon termination of the commercial airport
operator's lease, license, permit or agreement.
(e) No lease, license, permit, agreement, or any rights thereunder, shall be assigned without the
prior written consent of the City. The airport director may require any potential assignee to submit
biographical and financial information at least thirty (30) days prior to a proposed assignment.
(f) All FAA required provisions.
ARTICLE 4 INSURANCE
Section 4-1. General insurance requirements.
Except as otherwise provided in article 6 or article 7, each commercial airport operator shall at all
times maintain in effect the following types and minimum amounts of insurance as applicable to
the business to be conducted:
(a) Commercial General Liability insurance in the amount of $1,000,000 per occurrence and
$1,000,000 annual aggregate. Such insurance shall contain contractual liability insurance covering
applicable leases, licenses, permits, or agreements.
(b) Commercial/business automobile liability insurance for all owned, non-owned and hired
vehicles assigned to or used in performance of commercial aeronautical activities in the amount of
a least $300,000 per occurrence. If any hazardous material, as defined by any local, stateor
federal authority, is the subject, or transported, in the performance of this contract, an
endorsement is required providing $1,000,000 per occurrence limits of liability for bodily injury and
property damage.
(c) Special Causes of Loss Property Form covering all improvements and fixtures on the
commercial airport operator's premises in an amount not less then the full replacement cost
thereof, to the extent of the commercial airport operator's insurable interest in the premises.
(d) Worker's compensation insurance as required by law and employers liability insurance in the
amount of$100,000 per accident, $100,000 disease per person, $500,000 disease policy limit.
(e) Aircraft liability insurance in the amount of at least $1,000,000 per occurrence single limit
Bodily Injury and Property Damage Liability including Passengers.
(f) Hangar keeper's liability insurance in the amount of at least $1,000,000 per occurrence, or
more as values require.
(g) Products-completed operations liability insurance in the amount of at least $1,000,000 per
occurrence.
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(h) If applicable, Lessee shall maintain Environmental Impairment Liability coverage for any
underground or aboveground fuel storage facility, tank, underground or aboveground piping,
ancillary equipment, containment system or structure used, controlled, constructed or maintained
by Lessee in the amount of $1,000,000 Each Incident, $2,000,000 Aggregate. The policy shall
cover on-site and off-site third party bodily injury and property damage including expenses for
defense, corrective action for storage tank releases and tank clean-up for storage tank releases..
(i) All insurance policies cited herein shall contain a waiver of subrogation rights endorsement with
respect to the City.
Section 4-2. Additional insurance required by City's risk management director.
In addition to the types and amounts of insurance required by section 4-1, each commercial
airport operator shall at all times maintain such other insurance as the City's risk management
director may reasonably determine to be necessary for such commercial airport operator's
activities.
Section 4-3. Form; acceptance by City.
All insurance shall be in a form and from an insurance company with a Best's financial rating of at
least B ++. All policies, except worker's compensation policy, shall name the City and its elected
or appointed officials, officers, representatives, directors, commissioners, agents and employees
as "Additional Insured," and the commercial airport operator shall furnish certificate of insurances
evidencing the required coverage cited herein prior to engaging in any commercial aeronautical
activities. Such certificates shall provide for unequivocal thirty (30) day notice of cancellation or
material change of any policy limits or conditions.
ARTICLE 5 GENERAL OPERATIONAL REQUIREMENTS
Section 5-1. Airport Rules and Regulations.
Each commercial airport operator shall abide by the Auburn City Code, Rules and Regulations
and any other documents established by the City for the safe, orderly and efficient operation of the
airport.
Section 5-2. Taxiway access.
If not already provided, each commercial airport operator conducting aeronautical activities shall
provide paved access from its leased premises to the airport's taxi-way/taxilane/apron system.
Such access shall meet all applicable FAA standards for the largest aircraft type anticipated to use
the commercial airport operator's premises.
Section 5-3. Right-of-entry reserved.
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The City reserves the right at all reasonable times to enter upon each commercial airport
operator's premises for any lawful purpose, provided that such entry does not unreasonably
interfere with the commercial airport operator's use of the premises.
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Section 5-4. Rates and charges..
Each commercial airport operator may determine the rates and charges for all of its activities and
services, provided that such rates and charges shall be reasonable and fairly applied to all of the
commercial airport operator's customers.
Section 5-5. Personnel, subtenants and invitees; control and demeanor.
Each commercial airport operator shall employ a sufficient number of trained, on-duty personnel to
provide for the efficient, safe, orderly and proper compliance with its obligations under its lease,
license, permit or agreement. Each commercial airport operator shall control the conduct and
demeanor of its personnel, subtenants, licensees and invitees and, upon objection by the City
concerning the conduct or demeanor of any such person, the commercial airport operator shall
immediately take all lawful steps necessary to remove the cause of the objection. Each
commercial airport operator shall conduct its operations in a safe, orderly, efficient and proper
manner so as not to unreasonably disturb, endanger or be offensive to others.
Section 5-6. Interference with utilities and systems.
No commercial airport operator shall do or permit to be done anything that may interfere with the
effectiveness or accessibility of any public utility system, drainage system, sewer system, fire
protection system, sprinkler system, alarm system or fire hydrant and hoses.
Section 5-7. Fire equipment.
Each commercial airport operator shall supply and maintain such adequate and readily accessible
fire extinguishers and equipment as may be required by law and/or the Valley Regional Fire
Authority.
Section 5-8. Vehicle identification
Any vehicle used in the airside area must bear identification designating the commercial airport
operator to whom the vehicle is assigned. Letters shall be a minimum of three (3) inches in height.
on a contrasting background and displayed in a manner that is acceptable to the Airport Manager.
Section 5-9. Indemnification.
To the fullest extent permitted by law, any person accessing or using the airport or any of its
facilities, and the person's successors, assigns and guarantors, shall indemnify, defend, pay and
hold the City, its agents, employees, officials, directors, officers, commissioners and
representatives harmless from and against all claims, demands, charges, penalties, obligations,
fines, administrative and judicial actions or proceedings, suits, liabilities, judgments, damages,
losses, costs and expenses of any kind or nature (including, but not limited to, attorney fees and
expenses, expert witness and consultant fees and expenses, arbitration fees, court costs and the
cost of appellate proceedings) arising from said access or use, or from any other act or omission
of said person (and its employees, agents or anyone for whose acts or omissions said person may
be liable) including, without limitation, the discharge of any duties or the exercise of any rights or
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privileges pursuant to this chapter or any regulations or Minimum Operating Standards
promulgated hereunder. This section applies, without limitation, to claims of personal injury, bodily
injury, sickness, disease or death, and to claims of property damage (including City property),
destruction or other impairment of every description (including, without limitation, loss of use), and
to claims of environmental property damage (including, without limitation, cleanup, response,
removal and remediation costs).
ARTICLE 6 FIXED BASE OPERATORS
Section 6-1. Statement of concept.
A fixed base operator means a person engaged in a wide range of commercial aeronautical
activities on airport property including, at a minimum, the following:
(a) Aircraft fueling and lubrication;
(b) Aircraft line services;
(c) Major aircraft maintenance and repair services;
(d) Aircraft storage, parking, and tiedown;
(e) Retail sale of aircraft parts and accessories; and
(f) Provision of customary facilities, amenities, and ancillary services to general aviation users
including, at a minimum, the following: public restrooms, public telephones, passenger waiting
areas/lounges, conference rooms, crew-member lounges, and weather briefing/flight planning
services.
A fixed base operator shall comply with all of the standards and requirements contained in this
article. In addition, a fixed base operator may engage in any general aviation specialty service
activity identified in article 7 (and which is not already specifically required by this section) upon
meeting all standards identified for the specific activity, with the exception of those standards
related to minimum required office space.
Section 6-2..Land and facility requirements.
(a) Land: Three (3) acres of contiguous airport property.
(b) Apron: At least 60,000 square feet of either airport property or tenant developed (not including
any building area, automobile parking area, and fuel storage area) to support aircraft operations.
This area shall accommodate the following:
1. Airplane Design Group I aircraft (wingspans up to 49' feet);
2. Transient aircraft parking for 5 aircraft;
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3. Circulation taxilanes to facilitate access to/from aircraft parking and staging areas;
and
4. Adequate area to simultaneously accommodate transient aircraft operations, towing
of aircraft to/from storage hangars, and staging of based aircraft.
(c) Executive Terminal Building: 7500 square feet with a minimum of 2000 square feet dedicated
to customer service and support functions.
(d) Hangar Space: 7500 square feet with 4500 square feet dedicated to aircraft storage and 3000
square feet dedicated to aircraft maintenance and repair.
(e) Shop: 3,000 square feet of shop space to support aircraft maintenance and repair activities,
including the storage of parts and accessories.
Section 6-3. Hours of operation.
Unless otherwise agreed to in writing by the airport director, a fixed base operator shall provide
aircraft fueling and line services seven (7) days per week, from 8:00 a..m. to 6:00 p.m., and shall
keep the fixed base operation open for aircraft maintenance and repair at least eight (8) hours per
day, five (5) days per week. The fixed base operator shall also be on-call twenty-four (24) hours
per day with after hours response times of one (1) hour or less.
Section 6-4. Subcontracting services; restrictions.
A fixed base operator may not subcontract any of the activities identified in section 6-1 except for
major aircraft maintenance and repair services and the retail sale of aircraft parts and accessories.
If the activity is not identified in section 6-1, a fixed base operator may subcontract any activities
described in article 7, provided that such subcontractor meets the requirements in article 7 and
operates from the fixed base operator's premises and in such areas as are approved by the
airport director.
Section 6-5. Minimum requirements of FBO services.
(a)Aviation fueling.
1. A fixed base operator shall comply with the National Fire Protection Association's
codes and standards, as amended, FAA Advisory Circular 150/5230-4, as amended, all
requirements of the Rules and Regulations, and all other applicable laws related to
aircraft fuel handling, dispensing and storage.
2. A fixed base operator shall construct (or install) and maintain an on-airport above or
below ground fuel storage facility in a location approved by the airport director. The fuel
storage facility shall have total capacity for three days supply of aviation fuel for aircraft
being serviced by the fixed base operator. In no event shall the total storage capacity be
less than:
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• 10,000 gallons for Jet fuel storage
• 8,000 gallons for Avgas storage; and
A fixed base operator shall demonstrate the capability to expand fuel storage capacity
within a reasonable time period.
3. A fixed base operator shall not construct or modify any fuel storage or distribution
facilities without the written consent of the City and without complying with all City safety
standards. The City may inspect such facilities periodically to ensure compliance with all
standards.
4. A fixed base operator shall provide dispensing equipment sufficient to serve the
needs of the aircraft normally frequenting the airport, including the provision of at least
one Jet fuel refueling vehicles and one Avgas refueling vehicle or a vehicle capable of
providing both products from a single vehicle. Jet fuel refueling vehicles shall have over-
the-wing fueling capabilities and minimum capacity of 2,000 gallons. Avgas refueling
vehicles shall have minimum capacity of 750 gallons. All equipment must be approved
by the airport director and shall meet.all City safety standards. The metering devices
shall be annually inspected, checked and certified by appropriate state and local
agencies. The City may inspect such equipment periodically to ensure compliance with
all standards.
5. A fixed base operator shall require all of its fuel-handling personnel to attend training
courses, obtain a fuel handler's permit, and receive periodic refresher training as
required by the Airport Manager and Regional Valley Fire Authority. A fixed base
operator shall develop a standard operating procedure for aviation fueling activities and
provide a current copy of the same to the airport director. The City and FAA may
periodically conduct inspections of the fixed base operator's activities and personnel to
ensure adherence to safe practices.
(b) Aircraft line services.
1. A fixed base operator shall employ and have on-duty during required hours of
operation at least one properly trained and qualified employee capable of providing
aircraft fueling, aircraft parking, and ancillary aircraft ground services and related
customer services and support.
2. A fixed base operator shall have and maintain the equipment that is required to safely
and efficiently move (tow) the aircraft normally frequenting the airport, including a tug
and tow bars with rated draw bar pull sufficient for such aircraft.
3. A fixed base operator shall maintain tools, jacks, tugs, tire repair equipment, ground
power units, emergency starting equipment, portable compressed air tanks; fire
extinguishers, chocks, ropes and tiedown supplies as are necessary for the servicing of
aircraft types expected to use the airport.
(c) Major aircraft maintenance and repair services.
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1. A fixed base operator shall provide major airframe, engine and accessory overhaul
repair services for piston, turboprop, and turbine aircraft.
2.. Provide sufficient shop space, equipment, supplies and availability of parts equivalent
to that required for certification by the FAA as an approved repair station.
3. Either (1) employ and have on-duty during normal business hours at least one
person who is currently certified by the FAA with ratings appropriate to the work being
performed and holds an airframe, power plant, or aircraft inspector rating; or (2)
maintain a current FAR Part 145 Certificate.
(d) Aircraft storage, parking and tiedown.
1. A fixed base operator shall lease, rent or license aircraft storage, parking and tiedown
facilities to aircraft owners or operators solely for aircraft storage, parking and tiedown
purposes.
2. Al) transient aircraft customers shall be identified with chalks indicating the fixed base
operator name or abbreviation.
(e) Sale of aircraft parts and accessories.
1. A fixed base operator shall provide retail sales of aircraft parts and accessories as are
necessary for the servicing of aircraft types expected to use the airport.
Section 6-6. Insurance.
A fixed base operator shall maintain the applicable types and amounts of insurance required by
article 4, except that the operator shall at all times maintain commercial general liability insurance
in the amount of at least $1,000,000 per occurrence, $1,000,000 products-completed operations,
$1,000,000 hangar keepers, and $1,000,000 annual aggregate.
Section 6-7. Aeronautical business permit fee.
(a) Fixed base operators shall pay fees as prescribed by lease, license, permit or agreement. At a
minimum, said lease, license, permit or agreement shall include a monthly land rental payment
commensurate with market rates and the following Aeronautical Business Permit fees:
1. An airport fuel flowage fee, as identified in the airport rates and fees schedule, for fuel
dispensed during the calendar month just ended.
2. At the conclusion of each fiscal year ending June 30, fixed based operators shall
reconcile their records and shall, if the fees payable for services performed pursuant to
Article 7 of the Airport Minimum Operating Standards exceed the amount of fuel flowage
fees paid pursuant to section 6-7(a)(2) during the preceding fiscal year, pay the
difference between the two amounts to the airport on or before July 31 of each year.
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3.. Seventy-Five (75) percent of the gross overnight tiedown fees unless the fixed base
operator's apron is considered part of its leasehold.
4. The above-indicated fees are not in lieu of any transaction privilege taxes or other
taxes.
(b) Fixed base operators shall not sublease, permit or allow any other person to operate as a
general aviation specialty service operator within the leased or permitted area, or conduct
any business venture which directly or indirectly relates to aeronautics orflight, without the
prior written approval of the City.
(c) All payments due the City shall be accompanied by forms prescribed by the City's accounting
office or the Airport Supervisor.
ARTICLE 7. GENERAL AVIATION SPECIALTY SERVICES
Section 7-1. Hangar leasing services.
A hangar leasing services operator means a person engaged in the business of leasing, renting or
licensing hangars to aircraft owners or operators solely for aircraft storage purposes. A hangar
leasing services operator may engage in the business of constructing and operating hangars to be
leased. A hangar leasing services operator shall comply with the following minimum standards:
(a) A hangar leasing services operator shall lease sufficient land to accommodate the proposed
number of hangars based on the following.
1. The FAA has established minimum standards for hangars for the storage of aircraft
as follows: 2,500 square feet for jet aircraft, 2,000 square feet for turboprop and twin
engine aircraft, and 1,000 square feet for single engine aircraft and helicopters.
2. Each hangar leasing services operator shall register with the airport director only as
many aircraft to be based at Auburn Municipal airport as can be stored within the
operator's hangar under the FM guidelines in section 7-1(a)(1). Transient aircraft
storage is prohibited.
(b) The construction plans and specifications for any hangars to be constructed, including
minimum hangar sizes and architectural design plans, are subject to the written approval of the
City.
(c) A hangar leasing services operator leasing, renting or licensing hangars in its operations shall
maintain the types and amounts of insurance required by article 4 for any of its activities which
may be covered by such insurance.
(d) A hangar leasing services operator's hangars shall include at least one(1) indoor restrooms for
each twenty(20) hangar facilities for the use by operator's lessees, and appropriate office and
lounge areas for the operator's employees..
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(e) At a minimum, pay a Aeronautical Business Permit fee as set in the City of Auburn fee
schedule.
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Section 7-2. Aircraft sales services.
An aircraft sales services operator means a person engaged in the sale or brokerage of new
and/or used aircraft and shall:
(a) Lease from a bona fide airport tenant or the City a minimum of 100 square feet of office space.
(b) If conducting sales services, maintain an approved Aircraft Dealers Certificate from the State
of Washington.
(c) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may be covered by such insurance.
(d) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator, in
addition to paying a monthly land rental payment commensurate with market rates, shall pay the
greater of twenty-five dollars ($25.00) per month or a monthly aeronautical business permit fee of
one-hundred dollars ($100.00) for the sale of a single engine piston aircraft and/or single rotor
piston helicopter, two-hundred dollars ($200.00) for the sale of a twin engine piston aircraft and/or
twin rotor piston helicopter, and three-hundred dollars ($300.00) for the sale of a turboprop and
turbine powered aircraft and/or helicopter. These monthly Aeronautical Business Permit fees are
applicable to all aircraft sales.
Section 7-3. Aircraft maintenance and repair services.
An aircraft maintenance and repair services operator means a person providing one or more of
the following services: airframe, engine or accessory overhaul; repair services on aircraft,
including aircraft and helicopters; and sales of aircraft parts and accessories. An aircraft
maintenance and repair services operator shall:
(a) Lease sufficient land to accommodate the proposed operations.
(b) Provide office space, hangar facilities, a paved aircraft parking apron, an adequate number of
paved automobile parking spaces for its customers, a public lounge and waiting room and public
restrooms on its premises.
(c) Provide sufficient shop .space, equipment, supplies and availability of parts equivalent to that
required for certification by the FAA as an approved repair station.
(d) Either (1) employ and have on-duty during normal business hours at least one person who is
currently certified by the FM with ratings appropriate to the work being performed and who holds
an airframe, power plant, or aircraft inspector rating; or (2) maintain a current FAR Part 145
Certificate.
(e) Not conduct major maintenance, repair operations, or business activities at any time inside
hangars or other structures not designed for such function. Specific lease agreement and/or City
fire codes shall determine what hangars or other structures shall be approved for major
maintenance activities.
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(f) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may be covered by such insurance, except that the
operator shall at all times maintain commercial general liability insurance in the amount of at least
$1,000,000 per occurrence, $1,000,000 products-completed operations, and $1,000,000 annual
aggregate.
(g) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator, in
addition to paying a monthly land rental payment commensurate with market rates, shall pay the
greater of twenty-five dollars ($25.00) per month. or a monthly Aeronautical Business Permit fee.
Section 7-4. Aircraft leasing or rental services.
An aircraft leasing or rental services operator means a person engaged in the leasing or rental of
aircraft to the public. An aircraft leasing or rental services operator shall:
(a) Lease from a bona fide airport tenant or the City a minimum of 100 square feet of office space.
(b) Employ and have on-duty during normal business hours at least one person.
(c) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may be covered by such insurance.
(d) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator, in
addition to paying a monthly land rental payment commensurate with market rates, shall pay the
greater of twenty-five dollars ($25.00) per month or a monthly Aeronautical Business Permit fee.
Section 7-5. Flight training services.
A flight training services operator means a person engaged in instructing pilots in dual and solo
flight training, in fixed-wing and/or rotary-wing aircraft, and providing such related ground school
instruction as is necessary to take a written examination and flight check ride for the categories of
pilot's licenses and ratings involved. A flight training services operator shall:
(a) Lease from a bona fide airport tenant or the City a minimum of 100 square feet of office space.
(b) Provide adequate classroom facilities for the amount and type of training involved.
(c) Employ and have on-duty during normal business hours at least one instructor who is currently
certified by the FAA to provide the type of training offered.
(d) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may be covered by such insurance.
(e) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator, in
addition to paying a monthly land rental payment commensurate with market rates, shall pay the
greater of twenty-five dollars ($25.00) per month or a monthly Aeronautical Business Permit fee.
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Section 7-6. Specialized aircraft repair services.
A specialized aircraft repair services operator means a person engaged in the business of
repairing aircraft radios, avionics, instruments, propellers, accessories, upholstery, painting and/or
similar aircraft components. A specialized aircraft repair services operator sells new or used parts
and components necessary for such repairs. A specialized aircraft repair services operator shall:
(a) Lease sufficient land to accommodate the proposed operations.
(b) Provide hangar facilities, a paved aircraft parking apron, an adequate number of paved
automobile parking spaces for its customers, a public lounge and waiting room and public
restrooms on its premises.
(c) Employ and have on-duty during normal business at least one person who is currently certified
by the FAA with ratings appropriate to the services offered.
(d) Not conduct maintenance or repair operations or business activities at any time inside hangars
or other structures not designed for such functions. Specific lease agreements and/or City fire
codes shall determine what hangars or other structures shall be approved for major maintenance
activities.
(e) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may be covered by such insurance, except that the
operator shall at all times maintain commercial general liability insurance in the amount of at least
$1,000,000 per occurrence, $1,000,000 products-completed operations, and $1,000,000 annual
aggregate.
(f) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator, in
addition to paying a monthly land rental payment commensurate with market rates, shall pay the
greater of twenty-five dollars ($25.00) per month or a monthly Aeronautical Business Permit fee.
Section 7-7. Aircraft charter services.
An aircraft charter services operator means a person engaged in the business of providing air
transportation of persons or property to the general public for hire, either on a charter basis or as
defined by the FAA under Part 135. Aircraft charter services may include the performance of
aircraft management services as defined in these Minimum Operating Standards, as long as all
requirements of such services are met..An aircraft charter services operator shall:
(a) Leasefrom a bona fide airport tenant or the City a minimum of 100 square feet of office space.
(b) Employ and have on-duty during normal business hours at least one person who holds current
FAA commercial pilot and medical certificates and ratings appropriate for the operator's flight
activities. All flight crews shall be properly rated for the aircraft operated, and the operator shall
provide reasonable assurance of the continued availability of qualified operating crews.
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POLICY AND PROCEDURE Minimum Operating Standards 100-81 22 OF 27
(c) Own or lease exclusively by written agreement aircraft currently certified and continuously
airworthy. All aircraft shall meet the requirements of the FAA certificate held by the aircraft charter
service operator.
(d) Have and provide the City with, a current FAR Part 135 Certificate or provisional FAR Part 135
Certificate, as well as the aircraft identification page from the operating specifications listing all
aircraft on the certificate.
(e) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may becovered by such insurance.
(f) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator, in
addition to paying a monthly land rental commensurate with market rates, shall pay a monthly
Aeronautical Business Permit fee of one or more of the following:
1. A monthly permit fee of one-hundred dollars ($100.00) for the operation of one or
more piston-engine aircraft less than 12,500 pounds certificated maximum takeoff
weight; and
2. A monthly permit fee of one-hundred and fifty dollars ($150.00) for the operation of
each turbine/jet aircraft less than 12,500 pounds certificated maximum takeoff weight.
Section 7-8. Specialized commercial flying services.
A specialized commercial flying services operator means a person engaged in air transportation
for hire for any of the following purposes: nonstop sightseeing flights that begin and end at the
airport, aerial photography or survey, powerline or pipeline patrol, firefighting or fire patrol,
airborne mineral exploration, or any other operations specifically excluded from FAR Part 135. A
specialized commercial flying services operator shall:
(a) Lease from a bona fide airport tenant or the City a minimum of 100 square feet of office space.
(b) Employ and have on-duty during normal business hours at least one person who holds current
commercial pilot and medical certificates with appropriate ratings for the aircraft to be flown.
(c) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may be covered by such insurance.
(d) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator, in
addition to paying a monthly land rental payment commensurate with market rates, shall pay the
greater of twenty-five dollars ($25.00) per month or a monthly Aeronautical Business Permit fee.
Section 7-9. Aircraft management services.
An aircraft management services operator means a person performing one or more of the
following services in the management of another person's aircraft: pilot staffing, records
management, and other aircraft-related services not including services detailed in any other
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Minimum Operating Standards 100-81
sections contained herein. Aircraft management also encompasses the exercise of the privilege of
FAR Part 91.501 on behalf of the owner. Aircraft management does not include the control of or
operation of aircraft under FAR Part 135. An aircraft management services operator shall:
(a) Lease from a bona fide airport tenant or the City a minimum of 100 square feet of office space.
(b) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport which may be covered by such insurance.
(c) Pay fees as prescribed by lease, license, permit or agreement. At a minimum an operator, in
addition to paying a monthly land rental payment commensurate with market rates, shall pay a
monthly Aeronautical Business Permit fee of one or more of the following:
1. A monthly permit fee of one-hundred dollars ($100.00) for the managementof one or
more piston-engine aircraft less than 12,500 pounds certificated maximum takeoff
weight; and
2. A monthly permit fee of one-hundred and fifty dollars ($150.00) for the management
of each turbine/jet aircraft less than 12,500 pounds certificated maximum takeoff weight.
Section 7-10. Mobile aircraft washing services.
Mobile aircraft washing services operators engage in the cleaning, detailing and/or washing of
aircraft either for the general public or for individual businesses. Aircraft washing is restricted to
designated wash rack/pad areas and/or other areas permitted under an Approved Washing Plan
(AWP) and shall be performed in accordance with Section 2-11 of the Airport Rules and
Regulations. Operators providing mobile aircraft washing services shall meet the following
standards:
(a) Submit and receive approval of an aircraft washing plan that contains the following information:
1. Name of individual/company conducting washing services, contact name and phone
number.
2. A detailed description of washing method/operation, including the following details:
a) Wash water containment method(s), (ramp scrubber, berms, tarps, containment
boom, dry, etc.),
b)An estimate of the amount of water used per wash and frequency of operation,
c) Name and amount of chemical(s) used per wash, And
d) If "dry" washing or waxing/coating operations are conducted, provide affirmation
that tarps, vacuum system and/or sweeping will be used to collect residual material
for its proper disposal and to protect the ramp (if applicable). Operators must
properly dispose of"dry" wash materials and/or residual waste.
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Minimum Operating Standards 100-81
e) Material Safety Data Sheets (MSDS)for all chemicals to be used.
3. If washing is conducted outside of designated wash rack/pad, indicate the method of
disposal of retrieved wash/waste water. If water is to be disposed of on airport property
the following steps shall be taken:
a) Disposal of wash/waste water shall be done through an oil/water interceptor into
the sanitary sewer system. At no time is wash/waste water to be disposed of in
storm water drainage or dirt/grass areas.
b) Approval for the discharge of wash/waste water on airport property shall be
obtained from the Airport Supervisor. An approval letter shall be included in the
AWP, and be accessible on-demand each time disposal is conducted on airport
property.
(b) A copy of the AWP shall be on wash site at all times while aircraft washing activities are
performed, and shall be accessible to the airport director on-demand.
(c) The aircraft washing services operator shall maintain a complete list of
individuals/companies contracting for washing services and all aircraft washed during each
month, including the date that service was provided, aircraft owner (if available), FAA
registration number, and make and model of aircraft for a period of six (6) months. The list
shall be made available to the Airport Manager upon request.
(d) A mobile aircraft washing services operator shall at all times maintain in effect the types
and minimum amounts of insurance, and contain provisions cited herein for any of its
activities at the airport that may be covered by such insurance specified in section 4.
(e) The operator shall pay fees as prescribed by lease, license, permit or agreement. At a
minimum an operator shall pay the greater of twenty-five dollars ($25.00) per month or a
monthly Aeronautical Business Permit fee.
Section 7-11. Mobile aircraft maintenance and repair services.
A mobile aircraft maintenance and repair services operator means a person providing one or more
of the following services at the aircraft based location or within a designated aircraft maintenance
areas on the airport: airframe, engine or accessory overhaul; repair services on aircraft; and sales
of aircraft parts and accessories. A mobile aircraft maintenance and repair services operator shall:
(a) Either: (1) employ at least one person who is currently certified by the FAA with ratings
appropriate to the work being performed and who holds an airframe, power plant, or aircraft
inspector rating; or(2) maintain a current FAR Part 145 Certificate.
(b) Only conduct aircraft maintenance and repair services on piston aircraft weighing less than
12,500 pounds certificated maximum takeoff weight.
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POLICY AND PROCEDURE Minimum Operating Standards 100-81 25 OF 27
(c) Not conduct major aircraft alterations or repairs or business activities at any time inside
hangars or other structures not designed for such function. Specific lease agreement and/or City
fire codes shall determine what hangars or other structures shall be approved for major aircraft
alterations or repairs.
(d) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport that may be covered by such insurance.
(e) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator
shall pay the greater of twenty-five dollars ($25.00) per month or a monthly Aeronautical Business
Permit fee.
Section 7-12. On-Airport rental car concession services.
An on-airport rental car concession services operator means a person providing rental car
services at the airport. An on-airport rental car concession services operator shall;
(a) Lease from the City a minimum of 100 square feet of office space at the airport.
(b) At all times maintain in effect the types and minimum amounts of insurance specified in article
4, for any of its activities at the airport that may be covered by such insurance.
(c) Employ and have on duty at the airport at least one person during normal business hours.
(d) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator
located on airport shall pay the greater of Five Hundred dollars ($500.00) per month or a monthly
aeronautical business permit fee of five (5) percent of gross income from the operator's sales of all
services. Automobiles are considered rented at Auburn Municipal Airport (and, therefore included
in gross income) 'If:
1. The automobile is delivered to the customer at the airport; or
2. The rental agreement is entered into at the airport even though the automobile is
delivered elsewhere; or
3. The automobile was reserved in advance at the airport.
4. A vehicle rented at the airportis exchanged for another vehicle at any location within
twenty-five (25) miles of the Auburn Municipal Airport for a time period running
consecutively with the original rental agreement.
Section 7-13. Off-Airport rental car concession services (Reserved).
Section 7-14. Off-Airport catering services.
An off-airport catering services operator means a person providing catering services at the airport,
and whose primary offices are located off-airport. An off-airport catering services operator shall:
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Section 7-15. Charter Brokerage Services.
A.charter brokerage services operator means a person brokering another person's aircraft for use
in charter operation or filling seats in an aircraft for purposes of charter operation. Charter
brokerage service does not include the control or operation of aircraft Under FAR Part 135. A
charter brokerage services operator shall:
(a) At all times maintain in effect the types and minimum amounts of insurance Specified in article
4, for any of its activities at the airport which maybe covered by such insurance.
(b) Pay fees as prescribed by lease, license, permit or agreement. At a minimum, an operator
shall pay a monthly aeronautical business permit fee of $1.00/1,000 lbs maximum certificated
takeoff weight Of all aircraft arriving or departing the airport in conjunction With this service.