HomeMy WebLinkAbout207-12 RESOLUTIONRESOLUTION NO. 207-12
A RESOLUTION AWARDING BID #12-72 AND AUTHORIZING A
CONTRACT WITH PICK -IT CONSTRUCTION, INC. IN THE TOTAL
AMOUNT OF $343,900.00 FOR THE CONSTRUCTION OF
IMPROVEMENTS TO AN AIRCRAFT HANGAR AT DRAKE FIELD
CONTINGENT UPON A GRANT AWARD, AMENDING RESOLUTION NO.
95-12 TO CORRECT A TRANSPOSITION ERROR REGARDING TASK
ORDER NO. 9 TO THE CONTRACT WITH MCCLELLAND CONSULTING
ENGINEERS RELATED TO THIS PROJECT, APPROVING APPLICATION
FOR AND ACCEPTANCE OF AN 80/20 MATCHING GRANT FROM THE
ARKANSAS DEPARTMENT OF AERONAUTICS TO PROVIDE FUNDING
FOR THIS PROJECT, AND APPROVING A BUDGET ADJUSTMENT
AUTHORIZING AIRPORT FUND MATCHING EXPENSE AND
RECOGNIZING GRANT REVENUE, CONTINGENT UPON APPROVAL OF
THE GRANT APPLICATION AND RECEIPT OF GRANT FUNDS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby awards Bid
#12-72 and authorizes a contract with Pick -It Construction, Inc. in the total amount of
$343,900.00 for the construction of improvements to an aircraft hangar at Drake Field,
contingent upon a grant award.
Section 2. That the City Council of the City of Fayetteville, Arkansas hereby amends
Resolution No. 95-12 by striking all references therein to $32,504.00 and replacing them with
$36,500.00.
Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves
application for and acceptance of an 80/20 matching grant from the Arkansas Department of
Aeronautics to provide funding for this project.
Section 4. That the City Council of the City of Fayetteville, Arkansas hereby approves a
budget adjustment, a copy of which is attached to this Resolution as Exhibit "A", authorizing
airport fund matching expense and recognizing grant revenue, contingent upon approval of the
grant application and receipt of grant funds.
PASSED and APPROVED this 8th day of November, 2012.
APPROVED:
By:
ATTEST:
By:
Page 2
Resolution No. 207-12
C f OfrYlig)
SONDRA E. SMITH, City Clerk/Treasurer
City of Fayetteville, Arkansas
Budget Adjustment Form
V12.0724
Budget Year
2012
Division: Aviation
Department: Transportation Services
Request Date
11/8/2012
Adjustment Number
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION
To increase the project budget, recognize grant revenue from the Arkansas Department of Aeronautics and use a
portion of the Airport's reserves in order to construct offices and storage area inside the Targe hangar at 4580 S
School Ave, for the purpose of improving the building to accommodate the needs of an aviation -related business
expansion. The business has entered into a long-term lease of the building contingent upon the improvements. The
lease will provide $36,000 in annual revenue to the Airport.
udget Director
(S2 )'-
Date
Departm irector
Fina mP irector
Date
- ;o -23.2o1L
Date
Chtaff
Ma or
Date
AY'9//V
Date
Prepared By: James Nicholson
Reference:
Jnicholson
Budget & Research Use Only
Type: A BCD EP
General Ledger Date
Posted to General Ledger
Checked / Verified
Initial Date
Initial Date
TOTAL BUDGET ADJUSTMENT 348,211 348,211
Increase 1(Decrease) Project.Sub
Account Name Account Number Expense Revenue Number
State grants 5550.0955.6805.00 RI
Use of fund balance
300,000 12011 . 1
5550.0955.4999.99 48,211
Public notification 5550.3960.5301.00 e) 315 12011 . 1
Professional services
5550.3960.5314.00 3,996 12011 .
Building costs 5550.3960.5804.00 a 343,900 12011. 1
J:Wames120121BUDGET1Budget AdjustmentslBAForm_2012 NFiightHangarAddition 091812
1 oft
Ray M. Boudreaux
Submitted By
City of Fayetteville Staff Review Form
City Council Agenda Items
and
Contracts, Leases or Agreements
11/8/2012
City Council Meeting Date
Agenda Items Only
Aviation
Division
Action Required:
Transportation
Department
Action Required: A Resolution to:
1) Approve a construction Contract with Pick -It Construction Inc, Contact: Nathan Ogden, 10024 N Campbell Rd, Fayetteville,
AR 72701, 479-283-2329, nathan@pickitconstruction.com. Contingent upon grant award.
2) Correct a transposition error made to the Res. 95-12 amount of Task Order No.9 with McClelland Consulting Engineers.
3) Approve the application and acceptance of an 80/20 grant from the Arkansas Department of Aeronautics (ADA).
4) Approve a Budget Adjustment authorizing Airport fund matching expense and recognizing the state grant revenue contingent
upon approval of the grant by ADA.
$
300,000 REVENUE
348,211.00
Cost of this request
VARIOUS
Account Number
12011 1
Project Number
Budgeted Item
32,504.00
Category / Project Budget
32,504.00
Executive Hangar Office Addition
Program Category / Project Name
Airport Capital Exp
Funds Iised to Date Program / Project Category Name
Airport
Remaining Balance Fund Name
Budget -Adjustment Attached
DepartureDirector
Corney
/8'i/2- Previous Ordinance or Resolution # 95-12
Date
/o -Z2 -/z
Date
Fin -ice and Internal Services Director
td -3.
Date
Original Contract Date:
Original Contract Number:
Received in
Mayors Office
'Comments:
Revised January 15, 2009
aye
City Council Meeting of: November 8, 2012
Agenda Item Number:
evi le
AVIATION DIVISION
ARKANSAS FAYETTEVILLE EXECUTIVE AIRPORT • DRAKE FIELD
CITY COUNCIL AGENDA MEMO/STAFF CONTRACT REVIEW MEMO
TO: Mayor Jordan
THRU: Chief of Staff
THRU: Staff/Contract Review Committee
THRU: Terry Gulley, Transportation Direct
FROM: Ray M. Boudreaux, Aviatio
DATE: October 16, 2012
r
SUBJECT: Authority to apply for and receive Arkansas Aeronautics
Commission Grant, for improvements to 4580 S. School, an
aircraft hangar at Drake Field, Amend Res.No. 95-12 to correct
a transposition error to the Task Order No. 9 total, and to
award the contract for the work to Picklt Construction, the
Low Bidder. Approval of a budget adjustment. Signature of
the Mayor.
RECOMMENDATION: Approve application and receipt of an Arkansas
Aeronautics Commission Grant for improvements to the Hangar leased to NFlight
Technology at Drake Field, Amend Res. 95-12 to correct an inadvertent error in the
dollar amount of the Task Order No. 9 submitted on the item, award of the contract
to Picklt Construction, the qualified low bidder and approval of a Budget
Adjustment. Signature of the Mayor on the grant application.
BACKGROUND: The City Council approved design and bidding services under
Task Order Number 9 with McClelland Consulting Engineers via Resolution 95-12.
The project has been designed and the bids were received October 11 with the low
bidder Picklt Construction of Greenland. The Department of Aeronautics has
requested the application although there are limited funds available due to reduced
revenues to the Department. Chances are good that the grant application will be
approved at the November 14 meeting of the Commission although not assured. In
order to be considered at the November meeting, the application must be filed with
the Arkansas Department of Aeronautics by the end of October. We will submit an
application to be placed on the November agenda. Should the Council not approve
the application, it will be withdrawn prior to the Commission meeting November
4500 SOUTH SCHOOL AVENUE, SUITE F.- AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701
479.718.7642 • 479.718.7646 FAX • www.accessfayetteville.orglgovernmentlaviation
airport economic development@ci.fayetteville.ar.us
14, 2012. There was no Aeronautics Commission meeting in October nor is there a
meeting in December. The bids are only good for 60 days necessitating the
application to be filed with the Department by the end of October. This project will
make improvements to the Hangar of approximately 3000SF of office and
production space inside the Hangar. NFlight designs and sells camera systems for
aircraft and conducts research and development for like systems for aircraft. The
project has been on hold awaiting the Arkansas Department of Aeronautics receipt
of funding. Funding is provided from sales taxes on the sale of aviation fuel and
equipment and has been less than previous years due to the downturn in the
economy. This application is for 80% of the project cost.
Total project including the design, engineering and project oversight is $380,715.00
with $80,715.00 to be funded as the local match from the Airport. We will bill the
tenant NFlight Technology $38,250.00 for the total cost of the fire suppression
system to be installed with the project. This will reduce the total amount of airport
funding to $42,465.00 from the Airport fund balance. We anticipate additional
savings through value engineering prior to contract award, thereby further
reducing the Airport fund's portion of the project cost.
The project will not be pursued until grant funding is awarded from Arkansas
Aeronautics Commission. Should the grant application not be approved by the
Aeronautics Commission in November, the project must be re -advertised and new
bids received. With City Council approval, we will leave the application with the
Aeronautics Commission and re -bid the project once approved for funding. Arkansas
Aeronautics Department requires that applications be based on bids.
BUDGET IMPACT: Total project
Aeronautics Commission Grant
NFlight Technology (Sprinkler)
Airport use of Funds Match
$380,715.00
$300,000.00
$38,250.00
$42,465.00
Attachments: Staff Review
Aeronautics Grant Application (2)
Budget Adjustment
Bid Tab
Contract for construction with Picklt Construction (4 originals)
Resolution 95-12 (approve Task Order #9)
4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701
479.718.7642,• 479:718.7646 FAX • www.accessfayettevitle.orglgovernment/aviation;
airport economic development@ci.fayetteville.ar.us
RESOLUTION NO.
A RESOLUTION AWARDING BID #12-72 AND AUTHORIZING A
CONTRACT WITH PICK -IT CONSTRUCTION, INC. IN THE TOTAL
AMOUNT OF $343,900.00 FOR THE CONSTRUCTION OF
IMPROVEMENTS TO AN AIRCRAFT HANGAR AT DRAKE FIELD
CONTINGENT UPON A GRANT AWARD, AMENDING RESOLUTION NO.
95-12 TO CORRECT A TRANSPOSITION ERROR REGARDING TASK
ORDER NO. 9 TO THE CONTRACT WITH MCCLELLAND CONSULTING
ENGINEERS RELATED TO THIS PROJECT, APPROVING APPLICATION
FOR AND ACCEPTANCE OF AN 80/20 MATCHING GRANT FROM THE
ARKANSAS DEPARTMENT OF AERONAUTICS TO PROVIDE FUNDING
FOR THIS PROJECT, AND APPROVING A BUDGET ADJUSTMENT
AUTHORIZING AIRPORT FUND MATCHING EXPENSE AND
RECOGNIZING GRANT REVENUE, CONTINGENT UPON APPROVAL OF
THE GRANT APPLICATION AND RECEIPT OF GRANT FUNDS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby awards Bid
#12-72 and authorizes a contract with Pick -It Construction, Inc. in the total amount of
$343,900.00 for the construction of improvements to an aircraft hangar at Drake Field,
contingent upon a grant award.
Section 2. That the City Council of the City of Fayetteville, Arkansas hereby amends
Resolution No. 95-12 by striking all references therein to $32,504.00 and replacing them with
$36,500.00.
Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves
application for and acceptance of an 80/20 matching grant from the Arkansas Department of
Aeronautics to provide funding for this project.
Section 4. That the City Council of the City of Fayetteville, Arkansas hereby approves a
budget adjustment, a copy of which is attached to this Resolution as Exhibit "A", authorizing
airport fund matching expense and recognizing grant revenue, contingent upon approval of the
grant application and receipt of grant funds.
PASSED and APPROVED this 8th day of November, 2012.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
State Airport Aid Application — Page 1
The City/Cosima} of Fayetteville , herein called "Sponsor", hereby makes
application to the Arkansas Department of Aeronautics for State funds pursuant to Act 733 of 1977, for
the purpose of aiding in financing a project for the development of a municipal airport located in the city
of Fayetteville Arkansas, Washington county.
Date of Request: 8127112
Name of Airport: Fayetteville Executive Airport , Drake Field, KFYV
Name and address of City/County Commission
sponsoring request:
City of Fayetteville
113 West Mountain
Fayetteville AR 72701
Phone Number: 479-575-8330
Fax Number: 479-575-8257
Name and address of Engineering Firm
(if applicable):
McClelland Consulting Engineers Inc
PQ Box 1229
1810 N College Ave
Fayetteville AR f2703
Person to Contact about project:
Ray M Rom -keel ix, Director Aviation
4500 S School Ave Ste F
Fayetteville AR 72701
Phone Number: 479-718-7642
Cell Number: 479-601-3520
Fax Number: 479-718-7646
Contact Person: R. Wayne Jones. P.E.
Phone/Fax Number: 479-443-2377
Describe the work to be accomplished:
Construct approximately 3000 sq ft office and 1000 sq ft upper storage area in the executive hangar
located at 4580 S School Ave. The improvements will accomodate the expansion plans of
a new aviation business.
State and Local Project Costs:
Please indicate:
O 50-50% Match
' 80-20% Match
O 90-10% Match
O 100%
Total Cost of Project 380,715
Local Share/Funds 80,715
Local Share/In-Kind
State Share 300,000
Federal AIP Projects:
AIP Number:
O 95-5% Match
Total Cost of Project:
Federal Share:
State Share:
Local Share:
7-1-11
State Airport Aid Application — Page 2
Provide the information listed below as it applies to your project:
Funding:
Source of Funds: AR Dept Aeronautics. City of Fayetteville. and Lessee's Contribution
Source of In -Kind Services: Not applicable
Estimated starting date of project: December 1, 2012
Estimated completion date of project: April 30, 2013
Project will be for: New Airport X Existing Airport
Is land to be leased or purchased? Not applicable
Description of land and cost per acre:
Provide the Federal A P Grant Number (if applicable):
State Legislators for your area:
State Senator: Sue Madison - District 7
State Representative: Uvalde Lindsey - District 88
7-1-11
State Airport Aid Application — Page 3
The sponsor agrees to furnish the Arkansas Department of Aeronautics a copy of the legal instrument
affecting use of the property for an airport. In application for a new landing site or expansion of existing
facility, the FAA Form 7480-1, Notice of Landing Area Proposal, must be approved by the FAA before
review for grant can be made by the State. Applications for hangar construction or renovation funds
must include a signed lease agreement. This agreement must be in compliance with all FAA grant
assurances. The application must be based on bids and include a calculated return on investment.
No land, hangars, or buildings purchased with State Grant funds may be sold or disposed of without
State Aeronautics Commission prior approval. All requests for sale or disposal of property will be
considered on an individual case basis. No hangar (funded by a grant from the Department of
Aeronautics) shall be used for non -aviation purposes without State Aeronautics Commission prior
approval. All requests for non -aviation use will be considered on a case-by-case basis. Failure to
receive prior approval from A.D.A. concerning land and/or building use could result in the commission
requesting grant refund from the Sponsor. Additionally, all hgr/building grant applications must include
proof of insurance coverage.
No airport accepting State Grant funding may issue an Exclusive Rights lease.
All applications for navigational aids (such as NDB or ILS) must have FAA site approval before a state
grant can be approved.
All Grant applications involving Federal Airport Improvement Program (MP) funding must be
accompanied by the approved FAA grant agreement with grant number assigned.
If this project is approved by the Arkansas Department of Aeronautics, and is accepted by the sponsor, it
is agreed that all developments and construction shall meet standard FAA construction practices as
outlined in the specifications of this agreement. Runways, Taxiways, Parking Ramps, etc. shall have a
base and a thickness that will accommodate the weight of aircraft expected to operate at this airport.
All rant applicantsjimatiffity and/or Coun are MAL_res onsible for com fiance with all Federal
State, County, and City laws Statutes Ordinances, Rules, Regulations, and Executive Orders
concerning contracts and purchases for which this grant is approved and issued.
It is understood and agreed that the sponsor shall start this project immediately upon award of grant. It
is also agreed that this project shall be completed within one year from the date of acceptance of this
grant by the Arkansas Department of Aeronautics. Applications for extension will be entertained if
circumstances beyond the sponsor's control occur. Amendment requests are to be made only under
extraordinary circumstances.
Funds will be disbursed according to Department procedures and final inspection of completed project
(See payment instruction page). Payment of grant funds are contingent upon the Department's annual
appropriation.
IN WITNESS WHEREOF, theponsor has caused this Application for State Airport Aid to be duly
executed in its name, this $ day of ki O ! V( , 2012 .
City of F ayetteville
me
Lioneld Jorda
Sponsor
zed Signature
ayor
Title
BID TABULATION
HANGAR"A" OFFICE RENOVATION
FAYETTEVILLE MUNICIPAL AIRPORT
CITY OF FAYETTEVILLE
OCTOBER 12, 2012; 11:00 am
MCE PROJECT FY122128
BID No. 1272
CONTRACTOR / LICENSE #
TOTAL BID
FIRE SPRINKLER
PROTECTION
SYSTEM
TRENCH
EXCAVATION &
SAFETY SYSTEM
Pick -It Constuction , Inc. #0140461212
$343.900.00 -
$38.250.00
$500.00
Benchmark Construction #0033500413
$374,200.00
$32,516.00
$200.00
Western Millwright Services. Inc. #005980413
$467,254.00
$58,445.00
$100.00
Broadway Contracting, LLC #1201140313
$535,456.00
$32,516.00
$1,000.00
Certify,
044___.. 10-12-12
Wyre Jo 632 Date
J:120121522125 - Exec Hangar ompetconstruction181d-Re atedPY12212a gid Tab ads
PROJECT MAP
Drake FIeId protect - Executive HangarOttke Improvements
Grant Ap prI catkin - Arkansas Department or Aaron antic s
TERMINAL BUILDING LEASE AGREEMENT
LESSEE NAME: NFlight Technologvv LLC. Attn: Patrick Carter
Billing Address: Home Ph: -19 6'64 – 5.344
4500 S. School, Ste. N Work Ph: g C� –1 0 L " BS l Co
Fayetteville AR 72701 Cell Ph: 411 ~ 6 - Crsq
Home: 116 N. Brewer Ct., Fayetteville, AR 72701
Email: o --k--(— t ®I - Gta. v , CcelEmergency Contact: ND* L-,./ rt
Social Security Number: L13b--5`7 -Sr 5 Emergency Ph: - e5-7 Z5 o
Tax I.D. Number: i / A
Date of Birth: % J
This Lease is executed this 1st day of July , _2012, by and between the City of
Fayetteville, 113 W. Mountain Street, Fayetteville, Arkansas 72701, hereinafter called the
City, and NF1i: t Technology LLC Attn: Patrick Carter 4500 S. School Suite N
Fayetteville, AR 72701, phone 866-901-8516 or 479-684-8346 hereinafter called NFlight
Technology.
1. Leased Premises. The City leases to _NFlight Technology_, and NFlight
Technology leases from the City, a corporate hangar located at 4580 S. School Avenue,
Fayetteville, Arkansas, at Fayetteville Executive Airport – Drake Field, as reflected on
Exhibit "A" attached hereto and make a part hereof Leased Premise shall be for NFlight
Technology's exclusive use.
2. Lease Term. Subject to earlier termination as hereinafter provided, the initial term of
this Agreement shall be for a period of Ten (10) Years, beginning on July 1, 2012 and
the Lease maybe extended for two renewal options of ten (10) years each.
Rent will increase in accordance with the following procedure: With the increase in the
CPI, plus 1% (see formula at Attachment 1), rent will increase at each two (2) year
interval. At least sixty (60) days prior to the scheduled termination date, the City shall
give NFlight Technology written notice of the monthly rent payable for the first two years
of the extended renewal; at least thirty (30) days prior to the term expiration date, NFlight
Technology shall give the City written notice if ' NFIight Technology exercises this
option to extend. Rent for the extended renewal options will increase with the CPI, plus
1% , at each two year interval.
3. Rental Fees. During the term of this lease, NFlight Technology agrees to pay
the City for the use of the hangar the sum of $3,000.00_per month for ane year,
contingent on the Airport receiving an 80/20 Arkansas Department of Aeronautics grant to
construct a two-story office facility within the hangar. The rent of $3,000.00 per month
will begin with the completion of the two-story office within the hangar in design
agreeable to the parties. Occupancy Date for the $3,000.00 rental amount will be filled in
on the Lease at office project completion time:
Expected completion date is the spring of 2013.
(Occupancy Date: month -day -year)
All subsequent monthly lease payments shall be due and payable in advance on or before
the first day of each calendar month thereafter.
In addition to any remedy available to it hereunder, the City may impose as additional rent
a delinquency charge on all overdue payments, at the maximum rate allowed by law
4. Temporary Occupancy and Rent Provisions. NFlight Technology shall have
temporary rent provisions until the office addition in the hangar has been completed.
NFi t Technolo shall tem raril Lease the han for 1200.00 er mon and also
lease an office/icitchen area in the terminal building for $1.000.00 per month with rent
beginning as of July 1, 2012.
NFlight Technology will cease rental of the terminal building location when the office
project in the hangar has been completed, and at that time the rent on the hangar will
increase to $3,000.00.
5. Utilities, Maintenance and Janitorial Services.
A. By the City: The City shall be responsible only for major maintenance of the
existing equipment, i.e. replacement of heating unit and other equipment in place in
the facility which includes, roof, hangar door motors, exterior walls, exterior
plumbing, paved ramp and paved parking lot. The City agrees that if the roof or
any part of the exterior walls or plumbing of said hangar thereof shall become
defective or damaged at any time during the term due to ordinary wear and tear and
not due to negligence of NFlight Technology, or NFlight Technology's agents or
invites, upon notice from NFlight Technology, the City will immediately cause
repairs to be made and restore the defective portions to good condition. If the
damage is so extensive as to render the aircraft hangar at the airport 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 the City may, at its option, cancel this Agreement, such
cancellation to be effective as of the date the hangar was destroyed, and the rent
adjusted asset forth above. Routine maintenance of the hangars doors shall remain
the responsibility of the City NFlight Technology shall not make any alterations
2
to the controls of the hangar doors without prior approval of Airport
Administration.
The City will pay for water, sewer, light, heat, and air for the temporary use of the
leased area in the terminal building.
The City shall maintain and keep in good repair so much of the Airport premises as
are not under the exclusive control of NFlight Technology.
The City shall not be responsible for, or pay for any expense which might arise due
to, the installation and / or removal of equipment used in NFlight
Technology's business operation or signs.
B. By NFlight Technology : NFlight Technology_ shall provide for
and supply at its expense all janitor service with respect to the hangar, and shall pay
for all utilities serving the hangar, including, but not limited to heat, light, gas,
electricity, and water, sewer and trash removal. NFlight Technology shall provide
for any data or telephone utilities for the Leased area in the terminal building.
NFlight Technology shall maintain Leased Premises in a clean, orderly, and
attractive condition: not allow the accumulation of rubbish, trash, or other waste
material on the Lease Premises and provide for and supply all janitorial service for
their exclusive use area. NFlight Technology_ shall place any materials or trash in
trash receptacles. Written approval from the Airport Director must be obtained
prior to any improvements or additions to any part of the Leased Premises, or the
installation of any attachment to the building (i.e. antennas, tower or signs). Any
signs installed shall meet all of the City's Sign Regulations, and furthermore, any
sign erected on, or attached, to the Lease Premises must have the prior written
approval of the Airport Director.
NFlight Technology shall, at the termination, surrender or forfeiture of this lease,
return said premises in the same or better condition the premises were at the
beginning of the lease, normal wear and tear excepted.
6. Hazardous Substances. NFlight Technology shall not cause or permit any
Hazardous Substance to be used, stored, on or in the Lease Premises without first obtaining
the City's written consent. If Hazardous Substances are used, stored, generated or
disposed of on, or in the Leased Premises, or in any Airport Drainage system or if the
Airport property becomes contaminated in any planner due to NFlight Technolo
actions, NFlight Technology shall indemnify and Hold Harmless the Airport from any
and all claims, damages, fines, judgements, penalties, costs, liabilities, or losses including,
without limitation and decrease in value of the Leased Premises, damages caused by loss
or restriction of rentable, or usable space, as .a part of the Leased Premises arising during or
after the term hereof and arising as a result of that contamination by NFlight Technology,
NFlight Technolgy's agents, employees, and invitees. This indemnification includes,
without limitation, and all cost incurred because of any investigation of the Airport, or any
cleanup, removal, or restoration mandated by a federal, state, local agency or political
subdivision.
6. Insurance.
A. NFlight Technology shall maintain in force during the Term and any extended
term, public liability and property damage insurance in comprehensive form as
reasonably may be required by the City and outlined in the Airport' Minimum
Standards. The insurance shall be issued by an insurer licensed to do business in
the State of Arkansas.
Concurrent with the execution of this Agreement, NFlight Technology shall
provide proof of insurance coverage by providing a Certificate • of Leasee's
Insurance coverage, a copy of the declarations page on the insurance policy, and a
copy of all endorsements. The Certificates of Insurance, or endorsements attached
thereto, shall provide that; (a) insurance coverage shall not be canceled, changed in
coverage, or reduced in limits without at least thirty (30) days prior written notice
to the City; (b) the City and the Airport and their trustees, agents officers, servants,
and employees are named as Additional Insured; (c) the policy shall be considered
primary as regard to any other insurance coverage the City may possess, including
and self-insured retention or deductible the City may have, and any other insurance
coverage the City may possess shall be considered excess insurance only; (d) the
limits of liability required therein are on an occurrence basis.
- NFlieht Technology agrees to indemnify, protect, defend and Hold _ Completely
Harmless, the City and their trustees from and against all liability, losses, suits,
claim judgements, fines or demands arising from injury or death of any person or
damage to any property, including all reasonable cost for investigation and defense
thereof (including attorney fees, court costs, and expert fees), of any nature
whatsoever arising out of or incident to this Lease, provided, however, that
NFlight Technology 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 away 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. Workman's Compensation Insurance, as required by Arkansas Law.
C. Insurance on the contents within the Lease Premises at all times during the
term hereof in amounts approved by the Airport Director.
8. Use of Airport. NFlight Technology is granted the use, in common with other
Airport terminal tenants, of the Airport terminal building and grounds together with all
facilities, equipment, improvements, and services which have been or may hereafter be
4
provided. NFlight Technology agrees to observe and obey the City's Ordinances and
Regulations with respect to use of the Demised Premises and Airport; provided, however,
such Ordinances and Regulations shall be consistent with safety and with all City, county,
State, and federal ordinances, rules and regulations. NFlight Technology_ agrees to
abide by the rulings of the Federal Aviation Administration with respect to the use of the
Leased Premises. "The Minimum Standards for Fayetteville Executive Airport, Drake
Field" herein referred to as Airport's Minimum Standards at the Fayetteville Executive
Airport are made part of this lease by reference as if included word for word.
NFlight Technology will obtain and keep in force alI certifications, permits and
licenses required for the operation of NFlight Technology's business operation. NFlight
Technology further agrees not to store any flammable material on the premises or in
any way endanger or violate the provision of Fayetteville's property insurance policy or
the requirements of same. Such violations shall constitute a material breach of this lease.
Upon termination of the Lease NFlight Technology will leave all premises used in
the same or better conditions as existed at the initiation of the Lease.
NFlight Technology shall not start or operate aircraft engines within the aircraft hangar
leased hereby and shall not allow such operations by any other person.
9. Rights of Ingress and Egress. NFlight Technology shall have full and free right of
ingress to and egress from the Leased Premises for NFlight Technology, its employees,
customers, guests, and other invitees except as reserved below. Such rights shall also
extend to persons or organizations supplying materials or furnishing. services to NFlight
Technology. The City reserves the right to close any means of ingress and egress, so long
as other reasonable means of ingress and egress to the Leased Premises are available to
NFlight Technology. The City may enter the Leased Premises at any reasonable time for
any purpose necessary or incidental to the performance of City's obligations hereunder.
NFlight Technology shall take reasonable measures to insure that the conduct of their
business does not adversely affect 'their neighbors or the common areas of the building.
Excessive or objectionable noise, odors, or light fixtures shall not be allowed to escape
from the premises.
10. Events of Default. The following shall be event of default under the lease, and
include and one or more of the following:
A. Non-payment of the rental amount.
B. If NFlight Technology transfers, subleases or assigns, either voluntarily
or by operation of law, any portion of its interest in this Lease without prior
approval of the City.
C. NFlight Technology voluntarily abandons, deserts, or vacates the Leased
Premises.
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D. NFli tTechnoto shall fail to comply with insurance requirements.
11. Termination.
A. The City, or NFlight Technology, may terminate this lease at any time by
giving the other party thirty (30) days written notice of termination.
B. On the expiration or other termination of this lease, NFlight Technology's
right to use the Leased Premises shall cease, and _NFlight Technology_ shall
vacate the premises without unreasonable delay. All property installed, erected, or
placed by NFlight Technology_ in, on, or about the premises leased hereunder
shall be deemed to be personalty and shall remain the property of NFlight
Technology. NFlight Technology shall have the right at any time during the
term of this lease, or any renewal or extension thereof, and for an additional period
of fourteen (14) days after the expiration of other termination of this Lease, to
remove any or all of such property, subject, however to NFlight Technology's
obligation to repair all damage, if any, resulting from such removal. Any and all
property not removed by NFlight Technology prior to the expiration of the
aforesaid fourteen (14) day period shall thereupon become a part of the premises on
which it is located and title hereto shall thereupon vest in the City, or the City may
require removal and restoration by NFlight Technology.
12. Assigning, Subletting and Encumbering. NFlight Technology shall not sublet
the Leased Premises, not permit other persons to occupy the Leased Premises, not grant
any license or concession for any part of the Leased Premises, or assign its rights under
this Lease without the written consent of The City. No such subletting or assignment shall
release NFlight Technology from its obligations to pay the rental set forth herein.
13. Mailing and Notice. Any notice or consent required by this Lease shall be sufficient
if sent by Certified Mail, return receipt required, postage paid, to the following address:
CITY OF FAYETTEVILLE
Airport Administration Office
4500 S. School Ave., Suite F
Fayetteville, AR 72701
Phone 479-718-7642
NFLIGHT TECHNOLOGY LLC
NFlight Technology LLC
Attn: Patrick Carter
860 Highway 62 E., Ste. #1
Mountain Home, AR 72653
Phone: 866-901-8516
14. Nondiscrimination. NFlight Technology_ agrees that it will not, on the grounds
of race, color, or national origin, discriminate or permit discrimination against any person
or group of persons. NFlight Technology will assure compliance with all regulations
in regard to Non-discrimination and Affirmative Action. NFlight Technology
acknowledges that it is the policy of the Airport that it shall not discriminate on the basis of
race, color, national origin, or sex in the award and performance of all Airport contracts.
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This agreement shall be construed under the laws of the State of Arkansas.
All the covenants, conditions, and provisions under this agreement shall extend to and bind
the legal representative, 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.
The
(tenant's initials)
has received a copy of the Airport's Minimum Standards.
NFLIGHT TECHNOLOGY LLC
THE CIT OF FAYETTEVILLE:
By:
ATTEST:
By: Or - 7/ 3jra
Sondra Smith, City Clerk and Treasurer Date
Date
By: 7 •' 7-4.0-1' to II -
Patrick
I'Patrick Carter Date
Title: `Pf-e5
ATTEST:
By:
Date
7
4011
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