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HomeMy WebLinkAboutAIRPORT FUTURE DEVELOPMENT AGREEMENT 20160926000938 01111111011111111111 20160926000938 FIRST AMERICAN AG 81.00 Return Address: PAGE-001 OF 00909/26/2016 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 Number(s) of Documents DAdditional reference#'s on page of document Grantor(s)/Borrower(s) (Last name first, then first name and initials) C 4 \ Said doc""ments wcrc filed of Grantee/Assignee/Beneficiary: (Last name first) ecord as an accomodation only. It has not been examined as to proper execution or as to its C.A&-cMc C ' ` C C effect upon title Legal Description (abbreviated: i.e. lot, block, plat or section, township, range) /1,/'; ❑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 H. 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 not 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 /pp day of _Ih�� , 20/4 . CITY OF AUBURN: /' \• I . kA. ANCY S Mayor TITLE ATTEST: APP'O ED4,4 'i OR Danielle E. Daskam, (Oriel B. Heid, City Clerk City Attorney Dated and Signed this l L day 1, of �,i , 2040. STATE OF WASHINGTON ) ) ss. County of �-1 73 ) The undersigned Notary Public hereby certifies: That on this /Oay of 20 t , personally appeared before me N Cl n 6-4 c (name), fRO, (title), and (name), (title), to me known to be the individual(s) described in and who executed the within instrument, and acknowledged that he/jI efthey signed and sealed the same as his/&¢/their free and voluntary act and deed, for the purposes and uses therein mentioned, and on oath stated that he/ /they /were duly authorized to execute said document on behalf of Cr-hi c /&(;sl) ,JJ In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above written. �.� PAY4F X1 /4 .,-\\„,"1,`""111,,17k I,, Notary Public i d for the State of Washington, oSARY'���i' � Residing at V (r), l J A o ?� My commission expires C1 / ( c,7, • �p : O S I '0lia\- =,L ,,,,,1 Dated and Signed this -1 day of c(iyytcz , 20 IC. CLASSIC HELICOPTER CORPORATION: F. Gre:: Bake Secretary/Treasurer TITLE STATE OF WASHINGTON ) ) ss. County of � ) The undersigned Notary Public hereby certifies: That on this 9-fik day of 2014 personally appeared before me 41, ert., I (name), Afc-d , Le 4--. (title), and 0 (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 stated that he/she/they was/were duly authorized to execute said document on behalf of ei%t, COt¢ In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above written. \`\\\\\‘\\\\Hili t. __,,ppkitA A.80'41/ ti / r � • Notary Public in and for the State of Washington,—1 qG = % zi�c'k\ /70 14,1;09.1(( `,c'T Residing at ASH\14C' My commission expires /6 — g — ft11 8 { • ACITYOFADMINISTRATIVE UBURN V RLV POLICY AND PROCEDURE WASHINGTON TITLE: SUBJECT: FINANCE AUBURN MUNICIPAL AIRPORT MINIMUM OPERATING STANDARDS INDEX 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 any 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 the rules 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. 2.0 ORGANIZATIONS AFFECTED All departments/divisions 3.0 REFERENCES Ordinance No. 6118 TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 100-81 2 OF 27 Minimum Operating Standards 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 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: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 100-81 3 OF 27 Minimum Operating Standards TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 100-81 4 OF 27 Minimum Operating Standards 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: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 100-81 5 OF 27 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 TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal aI Airport ort PAGE POLICY AND PROCEDURE 6 OF 27 Minimum Operating Standards 100-81 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 TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 100-81 7 OF 27 Minimum Operating Standards 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; (j) 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; TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 100-81 8 OF 27 Minimum Operating Standards Q) 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 TITLE: INDEX NO: ADMINISTRATIVE Auburn p Municipal Airport PAGE POLICY AND PROCEDURE 100-81 9 OF 27 Minimum Operating Standards 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, 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. (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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 10 OF 27 Minimum Operating Standards 100-81 (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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 11 OF 27 Minimum Operating Standards 100-81 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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 12 OF 27 Minimum Operating Standards 100-81 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 TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal p al Air ort PAGE POLICY AND PROCEDURE 13 OF 27 Minimum Operating Standards 100-81 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; TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 14 OF 27 Minimum Operating Standards 100-81 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: TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 15 OF 27 Minimum Operating Standards 100-81 • 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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 16 OF 27 Minimum Operating Standards 100-81 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. All 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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal p al Air ort PAGE POLICY AND PROCEDURE 17 OF 27 Minimum Operating Standards 100-81 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 or flight, 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 FAA 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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE p p 18 OF 27 Minimum Operating Standards 100-81 (e) At a minimum, pay a Aeronautical Business Permit fee as set in the City of Auburn fee schedule. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 100-81 19 OF 27 Minimum Operating Standards 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 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. (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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 20 OF 27 Minimum Operating Standards 100-81 (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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 21 OF 27 Minimum Operating Standards 100-81 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) 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 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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 22 OF 27 Minimum Operating Standards 100-81 (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 be covered 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 TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE 23 OF 27 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 management 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 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. TITLE: INDEX NO: ADMINISTRATIVE Auburn Munici aI Airport PAGE POLICY AND PROCEDURE p p 24 OF 27 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. TITLE: INDEX NO: ADMINISTRATIVE Auburn p Municipal Airport PAGE POLICY AND PROCEDURE 100-81 25 OF 27 Minimum Operating Standards (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 airport is 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: TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport PAGE POLICY AND PROCEDURE26 OF 27 Minimum Operating Standards 100-81 TITLE: INDEX NO: ADMINISTRATIVE Auburn Municipal Airport ort PAGE POLICY AND PROCEDURE 27 OF 27 Minimum Operating Standards 100-81 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 may be 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. 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. 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 1 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 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 2 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 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. 3 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. 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. 4 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. 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 not 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. 5 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 /0 day of /./h,,1,_ , 20A, . CITY OF AUBURN: ANCY B S Mayor TITLE ATTEST: APP' : 'ED 0-40RM: / i I. an elle E. Daskam, D' B. Heid, City Clerk City Attorney STATE OF WASHINGTON ) ) ss. County of h1 I, ) The undersigned Notary Public hereby certifies: That on this l VNday of , 20 (( , personally appeared before me NCLA 1�z �2--- (name), In' . (title), and (name), (title), to me known to be the individual(s) described in and who executed the within instrument, and acknowledged that hehithey signed and sealed the same as his 010 heir free and vo untary ct and deed, for the purposes and uses therein mentioned, and on oath stated that e/ {hey 6aS/were duly authorized to execute said document on behalf of ( -�i,1 c ,(j,,Y1 . In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above written. jj i r A j- ""+a Notary Public in an. i 'the State of Washington, �w�S`OA�'O4P''� /! Residingat ✓t i ,o` ,o Ry To >(1�' c tiles o _ - My commission expires C� � z : ' i'usV:G • ,LO / r ii eb Dated and Signed this L day of 4,1,v via , 20 ((. CLASSIC HELICOPTER CORPORATION: -4e d Aftsk., 4111 F. Gregory Baker Secretary/Treasurer TITLE STATE OF WASHINGTON ) ) ss. County of 11,crn G� ) The undersigned Notary Public hereby c rtifies: That on this ( day of , 20/ , personally appeared before me ✓l.e (name), e-1-e-a-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 stated t at he/she/they was/were duly authorized to execute said document on behalf of .e.ertio . In Witness Whereof I have hereunto set my hand and affixed my official seal the day and year first above written. ,\\\\\\\‘‘‘‘IIII __.-1:(9411-4A_A__ 4, /hat-L.60 05104 ,� c�/iiz Notary Public in and for the State of Washington, , � A• . wfs. S Residing at l,(,R"" %7A4 0,0„ig 02_ My commission expires `D - 1cl` 8