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HomeMy WebLinkAbout103-02 RESOLUTION• NAME OF FILE: CROSS REFERENCE: Resolution No. 103-02 • 07/02/02 Resolution No. 103-02 07/03/02 Executive Hangar Lease Agreement with Northwest Arkansas Aviation Technologies d/b/a Arkansas Aviation Technologies Center 06/12/01 Confirmation of insurance coverage 06/14/02 Memo to Mayor Coody and City Council Members thru Staff Review Committee from Ray M. Boudreaux, Director, regarding Lease contract renewal 07/02/02 Staff Review Form 07/05/02 Memo to Ray M. Boudreaux, Airport/Aviation & Economic Development, from Heather Woodruff, City Clerk NOTES: 1 • • 4s. 43 -o2 EXECUTIVE HANGAR LEASE AGREEMENT This LEASE AGREEMENT made this j'� day of 2002, between the City of Fayetteville, Arkansas, hereinafter called "the City", and Northwest Arkansas Aviation Technologies Center of 4248 S. School, Fayetteville, Arkansas 72701, hereinafter called "AATC". WHEREAS, the City is the owner of an airport known as the Fayetteville Municipal Airport (Drake Field), herein referred to as the "Airport"; and WHEREAS, the City is the owner of a facility at the Airport; and WHEREAS, AATC desires to lease this facility. NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein, hereby agree as follows: 1. The City leases to AATC, and AATC leases from the City, the facility located at 4248 South School Avenue, Fayetteville, Arkansas 72701 as reflected on Exhibit "A" attached hereto and made a part hereof. 2. AATC is granted the use, without charge, in common with others similarly authorized, of the Airport, together with all facilities, equipment, improvements, and services which have been or may hereafter be provided at or in connection with the Airport from time to time including, but not limited to, the landing field and any extensions hereof or additions thereto, roadways, not less than one hundred (100) auto parking spaces, runways, ramps (including noise barriers), aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings and take -offs. h F A 0 • • 3. AATC shall have at all times the full and free right in ingress to and egress from the demised premises and facilities referred to herein for AATC, its employees, students, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to AATC. 4. Subject to earlier termination as hereinafter provided, the initial term of the Lease Agreement shall be for a period of two (2) years commencing on the 1 t day of July , 2002 (the effective date hereinafter referred to as the "Commencement Date") and ending on the 30th day of June, 2004. The City further agrees to extend this Agreement for three additional five (5) year terms. The parties agree that the rental to be effective as of the commencement of the first renewal term shall be $4,500.00 per month, or as negotiated by the parties for each of the subsequent renewal terms shall be equal to the rate as adjusted by the CPI Index, as defined to mean the monthly index published by the United States Department of Labor, Bureau of Labor Statistics. Consumer Price Index for all Urban Customers (CPI -U) Dallas -Fort Worth, Texas - All Items (1982-1984=100). Index utilized shall be at that most recently published prior to the renewal date by the formula at Attachment #1. 5. AATC agrees to pay the City for the use of the demised premises, facilities, rights, and privileges granted hereunder the sum of $3,750.00 per month during the initial Lease term. The initial Lease payment is due and payable in advance upon the Commencement Date and all subsequent monthly Lease payments shall be due and payable in advance on or before the first (15t) day of each calendar month thereafter. 6. The City shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of AATC. • • AATC shall be responsible for the lawn care and the appearance of outside grounds of the facility. 7. AATC shall provide for and supply at its expense all janitor service with respect to the demised premises, and shall pay for all utilities serving the demised premises. 8. AATC agrees to observe and obey the City's Ordinances and Regulations with respect to use of the demised premises and Airport; provided, however, such rules and regulations shall be consistent with safety and with all local, city, county, and state rules and regulations, including all current fire codes, and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. AATC shall be subject to the Airport's "Minimum Standards for Commercial Aeronautical Activities at Drake Field' which are incorporated herein by reference thereto and made a part hereof as if set out word for word. The City warrants and covenants unto AATC that no hazardous or any other substances, as defined in 40 CFR 302, exist on the demised premises which are restricted, prohibited or penalized by an "Environmental Law", which term shall mean any federal, state or local law, regulation or ordinance relating to pollution or protection of the environment. If any testing or study discloses the existence of an hazardous substances on the demised premises that are determined to have been present on the demised premises prior to the execution of this Lease, it shall be the City's responsibility to timely arrange and pay for any costs associated with environmental testing and /or studies, remedial action, cleaning up or removing the hazardous substances to a proper disposal site in accordance with all applicable laws and the governmental agency having jurisdiction thereof. 9. The City authorizes AATC to use the premises for the implementation and conducting of an Aviation Maintenance Technology Program, including but not limited to, the provision of such "3" • • training and educational components as are required for an airframe and power plant certification by the Federal Aviation Administration under FAR 147. Subject to the prior written approval of the City, which shall not be unreasonably withheld; AATC shall also have the right to use the demised premises for other purposes ancillary or related to AATC's operations. Aircraft, aircraft components and sub -components, vehicles, equipment, materials and or supplies necessary to the training program may be stored on the demised premises. AATC further agrees to store flammable material only in approved containers, and not to violate the provisions of the City's standard commercially available property damage insurance policy. Any such violations shall constitute a material breach of this agreement. 10. If the demised premises are partially damaged by fire or other casualty which is not due to the negligence or fault of AATC, said premises shall be repaired with due diligence by the City at the City's expense. If the damage is so extensive as to render such building untenable, the rent payable hereunder shall be proportionally paid up to the time of such damage and shall thenceforth cease until such time as the premises shall be fully restored. If the demised premises are completely destroyed, the City may reconstruct the hangar at the City's own cost and the rent payable hereunder shall be adjusted as set forth above, or either the City or AATC may at its option, cancel this agreement, such cancellation to be effective as of the date the hangar was destroyed, and the rent adjusted as set forth above. 11. The City shall procure and maintain in force during the term of this Agreement fire and extended coverage on the facility in an amount equivalent to the replacement cost thereof. AATC shall be required to insure any contents within the facility. • • During the term of this agreement AATC shall at all times maintain general public liability insurance in the amount of $1,000,000.00. AATC shall file with the City's Airport Manager Certificates of Insurance evidencing the insurance coverage required hereby. 12. AATC agrees to indemnify the City against any liability for injuries to persons or damage to property caused by AATC's gross negligent use or occupancy of the leased premises; provided, however, that AATC shall not be liable for any injury, damage or loss occasioned by the negligence of the City or its agents or employees, and provided further, that each party shall give prompt and timely notice of any claim made or suit instituted which in any way directly or indirectly affects or might affect either party, and each party shall have the right to compromise and defend the same to the extent of its own interest. This clause shall not be construed to waive that tort immunity as set forth under Arkansas Law. 13. Improvements: The City shall bear the cost of maintenance of the basic building structure area including, but not limited to: (i) floors, walls, ceiling and roof; (ii) sprinkler system; (iii) all plumbing and fittings thereto; (iv) primary electrical circuits; (v) heating, ventilation and air conditioning (HVAC); (vi) maintenance of existing paved ramp and parking lots; and (vii) existing perimeter fences. AATC shall bear the cost of all improvements or additions made to the interior of the building for new classrooms and /or labs. No improvements or additions to any part of the leased premises shall be made by Lessee without the prior written approval of the Airport Manager. Any signs to be erected on or attached to the leased premises must have the prior written approval of the Airport Manager and conform to all City ordinances. 14. Maintenance: The City shall be responsible only for major maintenance of the existing equipment, i.e. replacement of heating unit and other equipment installed by the City which • includes roof, exterior walls and exterior plumbing, HVAC, existing paved ramp, and paved parking lots. The City agrees that if the roof or any part of the exterior walls or exterior plumbing of said building thereof shall become defective or damaged at any time during the term due to ordinary wear and tear and not due to negligence of the AATC, or AATC's agents or invitees, upon notice from AATC, the City will immediately cause repairs to be made and restore the defective portions to good condition. Routine maintenance of the garage aircraft doors shall remain the responsibility of the City. 15. If AATC fails to make any payment due hereunder within thirty (30) days of the date on which such payment is due, The City may, at its option, terminate this Agreement and take possession of so much of AATC's personal property as is reasonably necessary to secure payment of the amount due and unpaid. The City shall also have the right to terminate this Agreement in the event Lessee breaches any other terms of this Agreement: provided, however, no breach shall be deemed to exist unless AATC fails to cure said breach within thirty (30) days after receipt of written notice thereof. As to curing of a breach (other than the payment of rent) which would reasonably require a greater period of time for curing than is provided for above, if AATC shall, within the time stipulated, commence such cunng and diligently pursue same, then the above time period shall be extended to allow AATC reasonable opportunity to complete said cure. 16. On the expiration or other termination of this Lease, AATC's right to use the demised premises shall cease, and AATC shall vacate the premises without unreasonable delay. All permanent interior structures installed, erected, or placed by AATC in, on, or about the premises leased hereunder shall remain the property of the City. 17. The City may enter the premises leased to AATC at any reasonable time for any • purpose necessary or incidental to the performance of its obligation. 18. AATC shall maintain the demised premises in a clean and orderly fashion at all times. 19. AATC shall not start or operate aircraft engines within the facility leased hereby and shall not allow such operations by any other person. 20. AATC shall not at any time assign this lease or sublet the demised premises without the prior written consent of the City. 21. Any notice or consent required by this Agreement shall be sufficient if sent by Certified Mail, return receipt requested, postage paid, to the following address: LESSOR: Airport Administration Office 4500 S. School, Suite F Fayetteville, Arkansas 72701 PH: 479-718-7642 LESSEE: Executive Director Arkansas Aviation Technologies Center 4248 S. School Avenue Fayetteville, Arkansas 72701 PH: 479-443-2283 23. This Agreement shall be construed under the laws of the State of Arkansas. 24. All the covenants, conditions, and provisions under this agreement shall extend to • and bind the legal representatives, successors, and assigns of the respective parties hereof. IN WITNESS WHEREOF, the parties have executed this Lease on the day and year first above written. • tH- fpgIn ,:: CITY OF FAYETTEVILLE, ARKANSAS By: By' ATTEST: B Title: Datarree sF flac llegat robdruff, City' Ierk an Coody, Mayor ARKANSAS , VIATION TECHN B a LOGIES CENTER: Title: t Ck77 (.0 d2'46C-imett "8" • • LEASE ATTACHMENT NUMBER ONE Rent adjustments shall be made as of the commencement of each of the Dates Upon Which Rent Increases Apply and shall be determined by the following formula: Rent as last so increased under this Lease multiplied hy: 1 + Current Index - Base Index Base Index plus: one percent (1%) of the Rent as last so increased under this Lease Where, "Current Index" shall be the CPI (D-1 Consumer Price Index All City Average, "1211 items groups, subgroups and special groups, "published monthly in the Monthly Labor Review of the Bureau of Labor Statistics of the United States Department of Labor) for the month immediately prior to the applicable Dates Upon which Rent Increases Apply, and Base Index shall be the CPI for the month immediately prior to the Commencement Date or the most recent Dates Upon Which Rent Increases Apply, whichever is applicable. In no event, however, shall the Rent for any period be less than the Rent as last so increased under this Lease. In the event that such CPI is no longer published or otherwise available, the adjustment provided for herein shall be by the successor (or the most nearly comparable successor index) thereto, adjusted as appropriate to the applicable dates. AON Tuesday, Jun 12, 2001 • liPari-r Ala do -Pr CONFIRMATION OF COVERAGE No. AP3387911-03 Per your instructions and based on the information you provided, Aon Risk Services, Inc. of Kansas has effected insurance as follows: INSURED'S NAME AND ADDRESS: Northwest Arkansas Aviation Technologies dba Arkansas Aviation Technologies Center 4248 S. School Avenue Fayetteville, AR, USA, 72701 TERM: Effective Date : May 27, 2001 Expiration Date: May 27, 2002 COVERAGE OR NATURE OF INSURANCE: Airport Liability COVERAGE INFORMATION: As of Date: Jun 12, 2001 0601/6024-wwoo iivstairec He CLQ(` Me %?f 46" Co71rffitowl IS_ PREMIUM: $2.250.00 CONTRACT OF INSURANCE TO BE ISSUED: Insurance described herein has been effected, against which a Contract of Insurance will be issued and in the event of any inconsistency, the tears, conditions and provisions of the Contract of Insurance to be issued will prevail. This Confirmation of Coverage will be terminated as of its effective date by the issuance of the Contract of Insurance and the premium and charges shown herein shall be credited thereto. 1 0 ��,•<.��c � �,,��= If •trCdgC'IVatiaUob a/aliie Line of Business : Airport Liability Deductible or Self Insured Retention None Limits & Deductibles CSL or Split Limits? CSL Combined Sing e Umit $1,000,000 Fire Damage Umit (any one fire) $50,000 Medical Payments - each Person $1,000 Ground Hangarkeepers Liability - each aircraft Not Covered Ground Hangarkeepers Liability - each occur Not Covered PREMIUM: $2.250.00 CONTRACT OF INSURANCE TO BE ISSUED: Insurance described herein has been effected, against which a Contract of Insurance will be issued and in the event of any inconsistency, the tears, conditions and provisions of the Contract of Insurance to be issued will prevail. This Confirmation of Coverage will be terminated as of its effective date by the issuance of the Contract of Insurance and the premium and charges shown herein shall be credited thereto. 1 0 F'AYETTEAI.LE THE CITY OF FAYETTEVILLE, PRKANSAS DAN GOODY, MAYOR MEMORANDUM r TO: Dan Coody, Mayor City Council Mem. - $ THRU: Staff Review Co mittee FROM: Ray M. Boudreau DATE• June 14, 2002 SUBJECT: Lease contract renewal/Arkansas Aviation Technology Center Background: Attached please find new lease contract effective July 1, 2002 between the City and Arkansas Aviation Technology Center. The lease is good for two years with renewal options. The lease amount is $750 per month less than the current lease due to need to spend resources on an accreditation program. The 30 day kick out clause has been eliminated. The airport board recommends approval. Purpose: To approve the contract with AATC for continuation of their lease of their hangar. Budget Considerations: Revenue decrease by $9,000 annually. Requested Action: Approval by the City Council and signature by the Mayor. Attachments: Staff Review Form Lease contract Aviation and Economic Development Department Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director i c X AGENDA REQUEST X CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of • STAFF REVIEW FORM 07-07--oY FROM: Ray M. Boudreaux Name Airport Aviation & Economic Development DMslon Department ACTION REQUIRED: Approval of Contract with Arkansas Aviation Technology Center to continue their lease at the Fayetteville Municipal Airport. COST TO CITY: $4,500 $ 77,000 (Revenue) Rent Cost of this Request 5550.0955.4450.00 Account Number N/A Project Number Category/Project Budget Category/Project Name 37,800 Airport revenue Funds Used to Date Program Name 39,200 Airport Remaining Balance Fund BUDGET REVIEW: Budgeted Item Budget Adjustment Attached a—f7 -off Budget Manager (See pp /12\ Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: Mgad.4 ;121-4111•27 Or/402 - AccounUng Manager Date ��s 61I'1102 n r w s City Attorney Date Purchasing officer (9 (1'1 I O d) Date GRANTING AGENCY: 79 • e /i -Ho a.) Iq(rJmat Auditor Date ADA Coordinator Date STAFF RECOMMENDATION: A1,Art_uvo_q_ 07� LL'th_e_ '41 SHS ►L�Ly oJZ— Division Head Date pertinent Direct Administrative Services Director Date Date Cr ss Reference New Item: Yes Prev Ord/Res #: 18-99 Orig Contract Date: Orig Contract Number. 02/02/1999 1 STAFF REVIEW FORM Page 2 Description: 44�c Comments: Bud1get Coordinator: / tzm I r I II eu C�7 use_ a-44 caLL<c4ro 422,roc,(o* 4L L t orz .wog (V3 Accou ing Manager: Reference Comments: • l._ City Attorney: Purchasing Officer: ADA Coordinator: Internal Auditor: X AGENDA REQUEST X CONTRACT REVIEW GRANT REVIEW For the Fayetteville City Council meeting of • • STAFF REVIEW FORM 07-07--OY FROM: Ray M. Boudreaux Name Airport Aviation & Economic Development Division Department ACTION REQUIRED: Approval of Contract with Arkansas Aviation Technology Center to continue their lease at the Fayetteville Municipal Airport. COST TO CITY: $4,500 Cost of this Request 5550.0955.4450.00 Account Number N/A Project Number $ 77,000 (Revenue) Rent Category/Project Budget Category/Project Name 37,800 Airport revenue Funds Used to Date Program Name 39,200 Airport Remaining Balance Fund BUDGET REVIEW: Budgeted Item X Budget Adjustment Attached Budget Manager Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: GRANTING AGENCY: Accounting Manager Date Internal Auditor Date City Attorney Date ADA Coordinator Date Purchasing Officer Date STAFF RECOMMENDATION: p Division Head Date rtment Direct Administrative Services Director Date Mayor Date • Cross Reference New Item: Yes No Prev Ord/Res #: 18-99 Orig Contract Date: Orig Contract Number. 02/02/1999 Description: • • STAFF REVIEW FORM Page 2 4 A -1L Lczsc c a ct Comments: Reference Comments: Budget Coordinator: Accounting Manager: City Attorney: Purchasing Officer: ADA Coordinator: Internal Auditor: • FAYETTEALLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN C000Y, MAYOR MEMORANDUM • TO: Dan Goody, Mayor City Council Mem. - s THRU: Staff Review Co mittee FROM: Ray M. Boudreau, �irecto�n DATE• June 14, 2002 SUBJECT: Lease contract renewal/Arkansas Aviation Technology Center Background: Attached please find new lease contract effective July 1, 2002 between the City and Arkansas Aviation Technology Center. The lease is good for two years with renewal options. The lease amount is $750 per month less than the current lease due to need to spend resources on an accreditation program. The 30 day kick out clause has been eliminated. The airport board recommends approval. Purpose: To approve the contract with AATC for continuation of their lease of their hangar. Budget Considerations: Revenue decrease by $9,000 annually. Requested Action: Approval by the City Council and signature by the Mayor. Attachments: Staff Review Form Lease contract Aviation and Economic Development Department Fayetteville Municipal Airport, Drake Field 4500 South School Avenue, Suite F Fayetteville, Arkansas 72701 Ray M. Boudreaux, Director • • EXECUTIVE HANGAR LEASE AGREEMENT This LEASE AGREEMENT made this day of , 2002, between the City of Fayetteville, Arkansas, hereinafter called "the City", and Northwest Arkansas Aviation Technologies Center of 4248 S. School, Fayetteville, Arkansas 72701, hereinafter called "AATC". WHEREAS, the City is the owner of an airport known as the Fayetteville Municipal Airport (Drake Field), herein referred to as the "Airport'; and WHEREAS, the City is the owner of a facility at the Airport; and WHEREAS, AATC desires to lease this facility. NOW, THEREFORE, the parties, in consideration of the mutual covenants contained herein, hereby agree as follows: 1. The City leases to AATC, and AATC leases from the City, the facility located at 4248 South School Avenue, Fayetteville, Arkansas 72701 as reflected on Exhibit "A" attached hereto and made a part hereof. 2. AATC is granted the use, without charge, in common with others similarly authorized, of the Airport, together with all facilities, equipment, improvements, and services which have been or may hereafter be provided at or in connection with the Airport from time to time including, but not limited to, the landing field and any extensions hereof or additions thereto, roadways, not less than one hundred (100) auto parking spaces, runways, ramps (including noise barriers), aprons, taxiways, flood lights, landing lights, beacons, control tower, signals, radio aids, and all other conveniences for flying, landings and take -offs. • • 3. AATC shall have at all times the full and free right in ingress to and egress from the demised premises and facilities referred to herein for AATC, its employees, students, guests, and other invitees. Such rights shall also extend to persons or organizations supplying materials or furnishing services to AATC. 4. Subject to earlier termination as hereinafter provided, the initial term of the Lease Agreement shall be for a period of two (2) years commencing on the 151 day of July , 2002 (the effective date hereinafter referred to as the "Commencement Date") and ending on the 30`h day of June, 2004. The City further agrees to extend this Agreement for three additional five (5) year terms. The parties agree that the rental to be effective as of the commencement of the first renewal term shall be $4,500.00 per month, or as negotiated by the parties for each of the subsequent renewal terms shall be equal to the rate as adjusted by the CPI Index, as defined to mean the monthly index published by the United States Department of Labor, Bureau of Labor Statistics. Consumer Price Index for all Urban Customers (CPI -U) Dallas -Fort Worth, Texas - All Items (1982-1984=100). Index utilized shall be at that most recently published prior to the renewal date by the formula at Attachment #1. 5. AATC agrees to pay the City for the use of the demised premises, facilities, rights, and privileges granted hereunder the sum of $3,750.00 per month during the initial Lease term. The initial Lease payment is due and payable in advance upon the Commencement Date and all subsequent monthly Lease payments shall be due and payable in advance on or before the first (151) day of each calendar month thereafter. 6. The City shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of AATC. • • • AATC shall be responsible for the lawn care and the appearance of outside grounds of the facility. 7. AATC shall provide for and supply at its expense all janitor service with respect to the demised premises, and shall pay for all utilities serving the demised premises. 8. AATC agrees to observe and obey the City's Ordinances and Regulations with respect to use of the demised premises and Airport; provided, however, such rules and regulations shall be consistent with safety and with all local, city, county, and state rules and regulations, including all current fire codes, and orders of the Federal Aviation Administration with respect to aircraft operations at the Airport. AATC shall be subject to the Airport's "Minimum Standards for Commercial Aeronautical Activities at Drake Field" which are incorporated herein by reference thereto and made a part hereof as if set out word for word. The City warrants and covenants unto AATC that no hazardous or any other substances, as defined in 40 CFR 302, exist on the demised premises which are restricted, prohibited or penalized by an "Environmental Law", which term shall mean any federal, state or local law, regulation or ordinance relating to pollution or protection of the environment. If any testing or study discloses the existence of an hazardous substances on the demised premises that are determined to have been present on the demised premises prior to the execution of this Lease, it shall be the City's responsibility to timely arrange and pay for any costs associated with environmental testing and /or studies, remedial action, cleaning up or removing the hazardous substances to a proper disposal site in accordance with all applicable laws and the governmental agency having jurisdiction thereof. 9. The City authorizes AATC to use the premises for the implementation and conducting of an Aviation Maintenance Technology Program, including but not limited to, the provision of such '"3.'"