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HomeMy WebLinkAboutRes1992-050 . . . Sponsored by: Schaefermeyer CITY OF SEWARD, ALASKA RESOLUTION NO. 92-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING A LEASE OF STORAGE AND ROOF SPACE AT THE SENIOR/COMMUNITY CENTER TO SOUTH CENTRAL RADIO, INC., FOR INSTALLATION AND OPERATION OF A MOBILE TELEPHONE ANTENNA AND TRANSCEIVER UNIT WHEREAS, South Central Radio, Inc., has requested that it be allowed to lease space within the Senior/Community Center building to install a commercial mobile telephone antenna and transceiver unit; and WHEREAS, space is available for such installation; and WHEREAS, such service would be of benefit to the local Senior Center and to the residents of the community; and WHEREAS, the public interest would be best served by waiving appraisal of the proposed lease site; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to execute the attached leased agreement, attached and incorporated herein by reference, with South Central Radio, Inc., for use of space within the Seward Senior/Community Center building for the installation and operation of a mobile telephone antenna and transceiver unit. Section 2. This resolution shall take effect thirty (30) days following passage and posting as required by law. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 27th day of April, 1992. THE CITY OF SEWARD, ALASKA / , f / .~ ' \.__/ ..'.. . G/ . ,? ,rz--. a:~l:C-t. C'j i~ Donald W. Cripps, Mayor . . . CITY OF SEWARD, ALASKA RESOLUTION NO. 92-050 AYES: NOES: ABSENT: ABSTAIN: A TrEST: Bencardino, Crane, Cripps, Krasnansky, Swartz, White None Dunham None APPROVED AS TO FORM: Perkins Coie, Attorneys for the city of Seward, Alaska (City Seal) =z.u hi ~ Fred B. Arvidson City Attorney ~ . . . . . LEASE AGREBXBNT . . rrl1 I THIS AGREEMENT made and entered lnto effectlve as of the ,.;) day of t"\. ~t. ' 1992, by and between the CITY OF SBWARD, ALASKA, a municip I corporation located in the Kenai Peninsula Borough, State of Alaska, hereinafter referred to as "CITY" and SOUTH CENTRAL RADIO, INC., an Alaska corporation, 7437 Old Seward Highway, Anchorage, Alaska 99518 hereinafter referred to as "LESSEE". WHEREAS, LESSEE has indicated its desire to lease within the Senior/Community Center/Museum Building, a limited area of building space for the installation and operation of a mobile telephone transceiver unit and an roof mounted antenna, hereinafter called the "leased space"; and WHEREAS, the city Council of the city of Seward has determined that a lease of the leased space would be in the public interest; and NOW THEREFORE, for and in consideration of the mutual promises and covenants hereinafter contained, the parties hereto agree as follows: 1. -- LEASED SPACE 1.1. DESCRIPTION OF LEASED SPACE. The leased space granted by CITY under this lease (hereinafter referred to as "leased space") is located in Seward, Alaska. The leased space is more particularly described as follows: Approximately ten (10) square feet within the furnace room for the location of the mobile telephone transceiver unit and approximately two (2) square feet on the roof mounted heater blower unit for a ~ 10 foot tall antenna. Total leased area is 12 square feet more or less. 1.2--Warrantv of Title: Covenant of Ouiet En;ovment. Subject only to restrictions of title or provisions of this lease, CITY hereby covenants that LESSEE shall have the quiet enjoyment and possession of the leased space for any use authorized hereunder for the full term of this lease. CITY owns the land and building, in which the lease space is located, free and clear of all encumbrances and is fully empowered to enter into this lease. CITY is unaware of any prior conflicting use of the property which would adversely affect LESSEE's intended use of the 1.3--Zonina. Land Use. CITY represents that the current zoning classification of the lease site is Central Business District. This Section shall impose no duty or responsibility on CITY to assist LESSEE in obtaining any other permits or approvals for operation or construction; however, CITY shall cooperate in good faith with LESSEE in LESSEE's efforts to promptly obtain any required permits for construction or operation of LESSEE's facilities on the leased space. South Central Radio Inc. RE-080 4/27/92 1 . . . 2. -- LEASE TERM: 2.1--Initial Term. This lease shall commence thirty (30) days after passage and posting of Resolution 92-050 authorizing this lease agreement, and shall continue for twelve (12) months. Lessee has reviewed the provisions of the Seward Code and specifically Chapter 7.05 and understands and agrees to the conditions under which this lease is issued. 2.2--Interim Riaht to Possession. The parties understand and Lessee is specifically taking the risk that under the Charter and Ordinance provisions for the City of Seward this lease agreement may be voided by a referendum vote of the people. LESSEE is herein granted the right to possession of the leased premises prior to the passage of thirty (30) days from the date of approval of this lease by the City Council for the city of Seward. This interim right to possession shall not affect or reduce the rights of the voters to reject this lease agreement in which case LESSEE shall not be entitled to any damages, or any other recovery against CITY. LESSEE shall have the right to enter the leased premises immediately upon the execution of this lease. Permitting LESSEE to occupy the lease space advance of the lapse of thirty (30) days is for the convenience of LESSEE only and should not be construed as granting any interest in the leased space should this lease be defeated in a referendum election. 2.3--0ctions to extend. LESSEE shall have the right to extend the initial term of this lease for four (4) additional one (1) year periods, called the first through fourth option terms successively; provided, that: a) LESSEE exercises any applicable option to extend at least ninety (90) days prior to the expiration of the current lease term; b) lease and has permission of LESSEE is not in default in any term or condition of this not made an assignment of this lease without the written CITY as set forth in 14 of this lease agreement; and c) LESSEE shall exercise its options to extend by sending written notice thereof in accordance with the provisions of 38 of this lease. 3. -- RDT 3.1--Rental Rate. The rental amount shall include: a. The free use of a LTR trunking telephone system by the Seward Senior Citizens; b. A $10 per month fee to the Senior Citizens Inc. to cover the cost of electricity; and c. An $50 monthly rental fee payable to the city of Seward which will be applied toward the maintenance budget of the Seward senior/community Center/Museum Building. The rent shall be payable quarterly in advance on or before the twentieth day of the month South Central Radio Inc. RE-080 4/27/92 2 . . . following the beginning of each quarter - April 20th, July 20th, October 20th and January 20th. The anniversary date of this lease shall be thirty (30) days fallowing the approval of this lease agreement by the city council of the City of Seward. 4. -- USB OP LEASBD SPACB CITY has limited space available for lease and LESSEE's intended use of the leased space has been determined by the City council to be in the public interest. 4.1--Use of the leased SDace. LESSEE may use the building space for the installation and operation of a mobile telephone system antenna and transceiver unit, provided the use does not interfere in any way with the day to day operations of the Seward Senior Center or the museum which are located within the building. LESSEE will not use the building space in any manner or construct any facilities thereon which would inhibit the use of adjacent or other building space. 4.2--Adeauacv of Public Facilities. CITY makes no representations or warranties as to any particular part or the whole of CITY's public facilities with respect to their fitness for the uses intended by LESSEE, and LESSEE has inspected those facilities and has examined the plans and specifications of those facilities under construction or planned for construction and has satisfied itself that the facilities are sufficient for the intended uses by LESSEE. CITY makes no representations or warranties of any nature with respect to the commercial practicability or accuracy of any information provided by CITY. 4.3--Tariffs and Other Service Fees. CITY shall have the right to make amendments to its tariffs, regulations and scheduled fees from time to time even if those adjustments shall cost LESSEE more for its operations or use of public facilities and CITY is free to do so provided only that it does not pose any greater burden or higher rate upon LESSEE than upon any other similar user of the public facilities. 4.4--Time for Payment of utilities. Taxes. LESSEE will pay for utilities and taxes related to operations on LESSEE's interest in this lease agreement, if any, before such Obligations become delinquent; provided, that LESSEE may, in good faith and before such payment, contest any such charge or assessment. 5. -- UTZLITIBS AND RIGHTS OP ACCBSS 5.1--utilities. If necessary, LESSEE, at LESSEE's sole cost and expense, shall provide for the extension of public utilities to the leased space sufficient for LESSEE's intended operations. In so doing, LESSEE shall comply with all city regulations and requirements with South Central Radio Inc. RE-080 4/27/92 3 . respect to the construction of those utilities. CITY agrees to cooperate and assist LESSEE in LESSEE's planning and engineering of those improvements and, further, to assist in coordinating the actual connection of those utilities to the city system. LESSEE shall not be entitled to any refund, rebate, or payments from CITY for any rent, investment, or costs incurred by LESSEE with respect to any required permits for construction or operation of LESSEE's facilities within the leased space, it being the intent of the parties that the risk of obtaining required permits be solely a risk undertaken by LESSEE. Ie -- CORSTRUCTIOB BY LBSSBB 6.l--LESSEE shall have remodel, reconstruct, rebuild to the fallowing conditions: the right to erect, maintain, alter, improvements on the leased space, subject a) The cost of any such construction, reconstruction, demolition, or of any changes, alterations or improvements, shall be borne and paid for by LESSEE. b) The leased space shall at all times be kept free of mechanics and materialmen's liens. . c) LESSEE shall supply CITY with a copy of all building plans and specifications for the leased space. d) Any general contractor employed by LESSEE or its sublessees shall be appropriately bonded by use of performance and labor and material payment bonds in the customary form when cost of the work is over Fifty Thousand Dollars ($50,000). Copies of all such bonds shall be furnished to CITY prior to commencement of construction. LESSEE shall provide CITY, if no performance and labor and material bonds are provided by LESSEE, any necessary assurance or guarantees that the contemplated work will be performed by the general contractor or by LESSEE. In the event that LESSEE elects to construct the facility with its own personnel and equipment, or the personnel and equipment of any corporation or person that is an "affiliate" of LESSEE as such term is defined in A.S. 10.05.825(1), a performance bond shall be required when the cost of the work is over Fifty Thousand Dollars ($50,000). e) CITY may, as contemplated by Alaska Statutes, give notice of non-responsibility for any improvements constructed or effected by LESSEE on the leased space. f) LESSEE shall comply with all federal, state and local statutes and regulations with respect to such construction including any required finding by the City Council of Seward that such action is in the public interest. . South Central Radio Inc. RE-080 4/27/92 4 . . . g) LESSEE may add/alter, or remodel equipment at LESSEE's discretion during the term of this lease. 6.2--citv Review of Plans/Specifications. CITY shall have the right to review initial plans and any future changes or additions to LESSEE's facility by reviewing the design thereof, and CITY shall have the right to comment upon that design and to require LESSEE to make reasonable changes to conform to safety considerations and so as to avoid interference with public operations but the exercise of these rights shall not imply any obligation to do so nor any obligation to do so in a particular way; LESSEE shall construct the facility in accordance with final design specifications approved by CITY. CITY's representatives may monitor the work and shall have access to the site at all reasonable times. LESSEE shall obtain the usual and customary performance guarantees from its contractors and LESSOR shall be named an additional insured. 7. -- RBTURN OF PREMISBS/SITB CONDITION 7 .l--Return of Premises in oriainal Condition. Upon termination of this lease for any reason, LESSEE shall return the leased space to CITY in good useable condition as it was originally intended. The leased space shall be free of all Hazardous Material at the leased space arising out of or resul ting from LESSEE's operations of the leased space. 8 -- FORCE KAJBURE In the event either LESSEE or CITY is delayed from performance of any of its obligations under this lease, due to acts of God, acts of the enemies of the united States of America, war, sabotage, blockade, insurrection, riot, epidemic, fires, floods, explosions, earthquakes/tsunami or civil disturbance, the time period wherein such performance is to occur shall be extended by that amount of time necessary to compensate for the delay. 9. -- CITY ACT OF DEPAULT Each of the fallowing shall be a "CITY Act of Default" under this lease and the terms "acts of default" and "default" shall mean, when they are used in this lease, anyone or more of the following events: a) Failure by CITY to fulfill, observe or perform any covenants or agreements on its part to be observed or performed under this lease for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to CITY by LESSEE; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by CITY within the applicable period and diligently pursued until the default is corrected. South Central Radio Inc. RE-080 4/27/92 5 . . . b) Violation by CITY of any applicable laws or regulations of the united states, the state of Alaska, the Kenai Peninsula Borough, or the city of Seward or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska or of the United States Government pursuant to the regulations of such agencies for a period of sixty (60) days after written notice specifying such violation has been given by the agency to CITY; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by CITY within the applicable period and diligently pursued until the violation is corrected. Furthermore, if CITY shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined, provided such proceedings are diligently pursued. 10.-- REMEDIES POR CITY'S ACTS OP DEPAULT Whenever an act of default by CITY shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, LESSEE shall have the following rights and remedies in addition to any rights and remedies that may be given to LESSEE by statute, common law or otherwise: a) withhold payment of any rental otherwise due CITY. b) Refuse to proceed with any of LESSEE's other performance obligations under this lease. c) Recover whether this lease be terminated or not from CITY reasonable attorney's fees and all other expenses incurred by LESSEE by reason of the default by CITY. d) Declare this lease terminated. e) No expiration or termination of this lease shall expire or terminate any liability or obligation to perform of CITY's which arose prior to the termination or expiration except insofar as otherwise agreed to in this lease. f) Each right and remedy of LESSEE provided for in this lease shall be cumulative and shall be in addition to every other right or remedy provided for in this lease, now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by LESSEE of anyone or more of the rights and remedies provided for in this lease, now or hereafter existing at law or in equity or by statute or otherwise, shall not preclude the simultaneous or later exercise by LESSEE of any or all other rights or remedies provided for in this lease, now or thereafter existing at law or in equity or by statute or otherwise. g) No delay or omission to exercise any right or power South Central Radio Inc. RE-080 4/27/92 6 . . . accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 11. -- LESSEE'S ACTS OP DEPAULT Each of the following shall be a "LESSEE Act of Default" under this lease and the terms "acts of default" and "default" shall mean, whenever they are used in this lease, anyone or more of the following events: a} Failure by LESSEE to pay promptly when due, and in no event later than twenty (20) days from the due date thereof, the rentals required to be paid under this lease. b) Failure by LESSEE to observe, fulfill or perform any covenants, condi tions or agreements on its part to be observed or performed under this lease for a period of thirty (30) days after written notice specifying such failure, requesting that it be remedied, and stating that it is a notice of default, has been given to LESSEE by CITY; provided, however, that if said default is such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the default is corrected. c} The making by LESSEE of an assignment for the benefit of creditors, the filing of a petition in bankruptcy by LESSEE, the adjudication of LESSEE as insol vent or bankrupt, the petition or application by LESSEE to any tribunal for any receiver or any trustee for itself or for any substantial part of its property; or the commencement of any proceeding relating to LESSEE under any bankruptcy, insolvency, reorganization, arrangement or readjustment of debt law or statute or similar law or statute of any jurisdiction, whether now or hereafter in effect which shall remain undismissed for a period of six (6) months from the date of commencement thereof. d) Violation by LESSEE of any laws or regulations of the united States, or of the State of Alaska, or any conditions of any permits issued by agencies of the City of Seward, the Kenai Peninsula Borough, the State of Alaska or of the united States Government pursuant to the regulations of such agencies, for a period of thirty (30) days after written notice specifying such violation has been given by the agency charged with the enforcement of such laws, regulations or permits to LESSEE; provided, however, if such violation be such that it cannot be corrected within the applicable period, it shall not constitute an act of default if corrective action is instituted by LESSEE within the applicable period and diligently pursued until the violation is corrected. Furthermore, if LESSEE shall contest such alleged violation through appropriate judicial or administrative channels, the time period specified herein shall not commence until such proceedings are finally determined provided such proceedings are diligently pursued; provided, however, that any such extension of time shall not be effective if the South central Radio Inc. RE-080 4/27/92 7 . . . effect of the interim administrative or judicial action is to cause a stoppage, interruption or threat to the activities of any person or entity other than those of LESSEE. 12. -- RBKEDIES POR DEPAULT BY LESSEE Whenever an act of default by LESSEE shall have occurred, and any applicable period for giving notice and any opportunity to cure shall have expired, CITY shall have the following rights and remedies in addition to any rights and remedies that may be given to CITY by statute, common law or otherwise: a) CITY may distrain for rent due any of LESSEE's personal property which comes into CITY's possession. This remedy shall include the right of CITY to dispose of personal property distrained in any commercially reasonable manner. It shall be conclusively presumed that compliance with the procedures set forth in the Alaska Uniform commercial Code (AS 45.09.504) with respect to sale of property shall be a commercially reasonable disposal. b) CITY may re-enter the leased space and take possession thereof and, except for any personal property of LESSEE which CITY has waived its right to distrain under SUb-part (a) above, remove all personal property of LESSEE from the leased space. Such personal property may be stored in place or may be removed and stored in a public warehouse or elsewhere at the cost of LESSEE all without service of notice or resort to legal process, all of which LESSEE expressly waives. c) Declare this lease terminated. d) Collect any and all rents due or to become due from sub- tenants or other occupants of the leased space. e) Recover, whether reasonable attorney's fees from by CITY by reason of the breach this lease be terminated LESSEE and all other expenses or default by LESSEE. or not, incurred f) Recover an amount to be due immediately on breach equal to the rent reserved under this lease discounted to the date of such breach at the rate of eight percent (8%) per year. If the leased space or any part thereof be re-Iet by CITY for the unexpired term of this lease, CITY shall reimburse to LESSEE upon receipt an amount not to exceed the amount received by CITY under this section. g) If LESSEE does not immediately surrender possession of the leased space after termination by CITY and upon demand by CITY, CITY may forthwith enter into and upon and repossess the leased space and expel LESSEE without being deemed guilty in any manner of trespass and without prejudice to any remedies which might otherwise be used for arrears of rent or breach of covenant. h) No expiration or termination of this lease shall expire or South Central Radio Inc. RE-080 4/27/92 8 . . . terminate any liability or obligation to perform of LESSEE's which arose prior to the termination or expiration except insofar as otherwise agreed to in this lease. i) Each right and remedy of CITY provided for in this lease shall be cumulative and shall be in addition to every other right or remedy provided for in this lease or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by CITY of anyone or more of the rights and remedies provided for in this lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by CITY of any or all other rights or remedies provided for in this lease or now or thereafter existing at law, or in equity or by statute or otherwise. j) No delay or omission to exercise any right or power accruing following an act of default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 13. -- TITLB TO IMPROVEXBNT I.STALLBD BY LBSSBB 13 .1--Personal Prooertv. Any other provisions of this lease to the contrary notwithstanding, LESSEE, upon termination of this lease for any reason, may but need not promptly remove, and in no event later than sixty (60) days from the termination of the lease, trade fixtures and equipment from the leased space provided that LESSEE shall repair any damages to the leased space caused by such removal. 14. -- ASSIGBMBBT 14.1--AssiQnment of Lease. The parties recognize that this lease has been determined to be in the public interest by the City council of the city of Seward for the reasons set forth in Resolution 92-050. LESSEE may only assign this lease space with CITY's written consent which shall be granted if the use by the proposed assignee, is a) the same as that proposed by lessee and b) found to be in the public interest by the City council of the City of Seward. 15. -- LBSSBB'S DUTY TO DBPBKD IIBDBMBIPY LESSEE shall defend, indemnify and hold CITY harmless from and against any and all liability or claims arising from acts or omissions of any person and of any nature whatsoever occurring on or relating to LESSEE's operations at or use of the site, causing injury to, or death of persons, or loss of, or damage to property, and from any expense, inCluding attorneys fees, incident to the defense of and by CITY therefrom except for claims arising out of the sole negligence of the CITY, its agents or employees. If any action or proceeding is brought against LESSEE by reason of any such occurrences, LESSEE shall promptly South Central Radio Inc. RE-080 4/27/92 9 . . . notify CITY in writing of such action or proceeding. 16. -- CITY'S DUTY TO DBJ'Blm/INDEMNIn CITY agrees to defend, indemnify and hold LESSEE harmless from any and all claims for damages, including personal injuries and property damage arising out of or resulting from CITY's use of the leased space or the use of the leased space by CITY's agents or contractors or from conditions existing or activities occurring on the leased space prior to this lease agreement. 17. -- INSURARCB prior to commencement of installation of any equipment or facilities on the leased space, LESSEE shall procure and maintain, at LESSEE's sole cost and expense, commercial general liability ins~rance, with limits of liability of FIVE HUNDRED THOUSAND DOLLARS ($500,000) for all injuries and/or deaths resulting to anyone person and FIVE HUNDRED THOUSAND DOLLARS ($500,000) limit from anyone occurrence. The limit of liability for property damage shall be FIVE HUNDRED THOUSAND DOLLARS ($500,000) for each occurrence and aggregate. Coverage under such insurance shall also include explosion, collapse and underground property damage hazards. Such insurance shall include a blanket contractual liability endorsement. LESSEE shall also provide fire and extended coverage insurance for any buildings, equipment, machinery, vessels of customers or any other property stored or being worked on by LESSEE upon the leased space at replacement value rather than original cost. LESSEE shall provide Workmen · s Compensation Insurance and insurance under the Harbor Workers and LongShoremen's compensation Act, and warehouse and motor vehicle insurance and any other insurance required under any permit or tariff of the City of Seward, Alaska. The minimum amounts and types of insurance provided by LESSEE shall be subject to revision in accordance with standard insurance practices, in order to provide continuously throughout the term of this agreement and any extensions hereof, a level of protection consonant with good business practice and accepted standards in the industry. Such factors as increases in the cost of living, inflationary pressures, and other considerations, shall be utilized in assessing whether the minimum insurance requirements should be increased. CITY may notify LESSEE of any requested increase in insurance coverage. All insurance policies shall provide for thirty (30) days' notice of cancellation and/or material change to be sent to CITY at the address designated in Article 37 of this lease. All such policies shall be written by insurance companies legally authorized or licensed to do business in the State of Alaska, and acceptable to CITY (Best's Rating A or better). LESSEE shall furnish CITY, on forms supplied by CITY, certificates evidencing that it has procured the insurance required herein prior to the occupancy of the leased space or operation by LESSEE. Nothing herein contained shall prevent LESSEE or CITY from placing and maintaining at CITY's or LESSEE's own individual cost and expense, additional or other insurance as may be desired. South central Radio Inc. RE-080 4/27/92 10 . . . All of the insurance policies required above as well as any other insurance carried by LESSEE or CITY shall provide that the insurers waive their rights of subrogation against CITY and LESSEE and their respective officers, servants, agents or employees. LESSEE further agrees to waive and agrees to have its insurers waive any rights of subrogation (whether by loan receipts, equitable assignment or otherwise), with respect to deductibles under such policies and with respect to damage to equipment including the loss of use thereof, whether insured or not. LESSEE shall also name CITY as an additional insured on the general liability insurance policy maintained by LESSEE as required above, excluding coverage for claims resulting from CITY's sole negligence. LESSEE shall provide CITY promptly and without request copies of all insurance binders and policies upon receipt thereof by LESSEE. 18. -- CONDBMHATION If all or any part of the leased land is condemned for a public use by any government agency or other duly authorized entity, CITY and LESSEE shall each make a claim against the condemning or taking authority for the amount of any damage incurred by or done to them respectively as a result of the taking. Neither LESSEE nor CITY shall have any rights in or to any award made to the other by the condemning authority; provided, that in the event of a single award to CITY which includes specific damages for loss of LESSEE's leasehold interest, CITY shall transmit to LESSEE the amount of such specific damages so found, if any. If part, but not all of the leased land is condemned for public use, LESSEE shall make a good faith determination as to whether or not the taking of the part of the leased land designated for condemnation will prevent if from continuing to operate on the leased land. If LESSEE determines in good faith that the condemning of such part of the leased land will prevent it from continuing to operate on the leased land, LESSEE may notify CITY in writing to this effect, and this lease shall then be terminated for all purposes effective fifteen (15) days from the date LESSEE sends such notice to CITY, or at such other later date as LESSEE shall specify in its notice, and such termination shall be treated in the same manner as a termination at the expiration of the term of this lease. LESSEE shall, as a condition precedent to such termination, remove all encumbrances, debts and liens to which the leased land is subject. If at the time of such partial taking for public use, LESSEE determines that such partial taking will not prevent it from continuing to operate, then LESSEE and CITY shall negotiate an equitable and partial abatement of the rent beginning to be effective on the actual date when LESSEE is effectively prevented from utilizing the condemned land. 19. -- ARBITRATION Any dispute between CITY and LESSEE with respect to any provision of this lease or the rights and obligations of the parties hereunder South Central Radio Inc. RE-080 4/27/92 11 . . . shall be decided by arbitration, in accordance with the provisions of this paragraph. a) Consent Panel. The party desiring arbitration of a dispute shall give written notice to that effect to the other party specifying in such notice the name and address of a person to serve as an arbitrator on its behalf. within fifteen (15) days after receipt of such notice the other party shall give written notice to the first party specifying the name and address of a person designated to serve as an arbitrator on its behalf. If neither party has objected to the others designation within fifteen (15) days of the notice by the second party of its representative of an arbitrator, then the two chosen arbitrators (called the "consent panel") shall select a third person agreeable to both to become the third member of the consent panel. The consent panel may utilize informal techniques and hold informal hearing without reference or adherence to the rules or procedures of the American Arbitration Association. Promptly and within thirty (30) days of concluding any proceeding the consent panel shall render its written decision. It is the intent of this subparagraph to provide for a speedy and inexpensive resolution of disputes provided the parties agree to such a procedure. b) Formal Arbitration. If either party objects, within fifteen (15) days of the second party's designation of an arbitrator to the others choice of an arbitrator pursuant to paragraph (a) above, or the first party initially decides not to use the consent panel procedure, then the matter shall be promptly referred to the American Arbitration Association in accordance with the then existing rules of the American Arbitration Association. c) Arbitration Awards. Any award by either a consent panel or as a result or proceedings before a panel pursuant to the rules of the American Arbitration Association shall be enforceable in accordance with Alaska statutes. Any award shall include an award of costs, interest and attorney fees. 20. -- XAINTBRANCB ARD RBPAIRS 20.1--Normal Maintenance. During the entire remaining term of this lease and every renewal or extension hereof, LESSEE shall, at LESSEE's sole cost, risk and expense, maintain the leased space, including any improvements placed thereon by LESSEE, in as good condition as received or constructed by LESSEE, ordinary wear and tear excepted. CITY, at CITY's sole option and expense, may, prior to the commencement of construction by LESSEE, perform maintenance and preventative work on the leased space, exclusive of improvements placed thereon by LESSEE, Any such work performed by CITY shall be at CITY's sole expense and risk unless LESSEE agrees, in advance and in writing, to share such expense and risk. LESSEE shall prevent the discharge of any pollutants to any public sewer system beyond those for which the system was designed. LESSEE shall maintain in first class condition at all times all fire, South Central Radio Inc. RE-080 4/27/92 12 . . . pollution and other protective equipment. CITY may periodically inspect the leased space and facilities constructed thereon in order to ascertain the condition of the public portion of the premises but the exercise of this right shall not imply any obligation to do so nor any obligation to do so in any particular way. 20.2--Safetv Issues. CITY may notify LESSEE in writing of any deficiencies in the performance of LESSEE's maintenance responsibilities as they relate to public health or safety and LESSEE shall promptly within thirty (30) days of receipt of such notice advise CITY in writing of its proposed schedule for performance of any work necessary to cure such deficiencies. If such deficiencies relate to the safety of LESSEE's operation such that the surrounding area is exposed to risk, unnecessary potential hazards, or a risk to the public interest (as distinguished from a business risk), or if CITY is not satisfied with the proposed schedule of repairs either because of the delays therein or the scope of the repairs, then CITY may engage an independent engineering consultant well-versed and experienced who shall furnish to CITY a comprehensive survey and report for the purpose of establishing both the need and urgency to perform such maintenance work. As soon as practicable following receipt of said engineer's determinations and recommendations, if the report requires repair then LESSEE shall pay the cost of the report and perform such work in accordance therewith at LESSEE's cost, risk and expense. 20.3--Cost of Re~airs. Should LESSEE dispute the necessity of any maintenance work as being necessary or advisable or reasonable to protect public facilities, it may submit the matter to arbitration; provided, however, that pending the decision of the arbitrators it shall fully comply with the maintenance requests. If an arbitration award (which shall include costs, interest and attorneys' fees) should ultimately find that the repairs were not necessary then LESSEE may ei ther deduct from future rental payments the cost of such repairs or be reimbursed therefor. In deciding whether repairs requested by CITY or required by an engineering report are necessary the arbitration panel is to give primary consideration to the safety and welfare of the Seward port facilities and the citizens of Seward to the highest standards in the industry. If any facility or service provided by CITY to the leased space shall become inadequate due to changes in environmental control standards or should any facility require updating or improvement by reason of a change in LESSEE's use of the leased space or operations therefrom, LESSEE shall either construct such improvements at LESSEE's own cost or reimburse CITY for such work at the option of CITY. 21. -- BSTOPPBL CERTIFICATBS South Central Radio Inc. RE-080 4/27/92 13 . . . Either party shall at any time and from time to time upon not less than ten (10) days' prior written request by the other party, execute, acknowledge, and deliver to such party, or to its designee, a statement in writing certifying that this lease is unamended and in full force and effect (or, if there has been any amendment thereof, that the same is in full force and effect as amended and stating the amendment or amendments), that there are no defaults existing (or, if there is any claimed default, stating the nature and extent thereof); and stating the dates to which the rent and other charges have been paid in advance. 22. -- COIIDITIONS AND COVB1lAllTS. All the provisions of this lease shall be deemed as running with the land, and shall be construed to be "conditions" as well as "covenants", as though the words specifically expressing or imparting covenants and conditions were used in each separate provision. 23. -- NO WAIVER 01' BREACH No failure by either CITY or LESSEE to insist upon the strict performance by the other of any term, covenant or condition of this lease or to exercise any right or remedy consequent upon a breach thereof, shall constitute a waiver of any such breach or of such terms, covenant or condition. No waiver of any breach shall affect or alter this lease, but each and every term, covenant and condition of this lease shall continue in full force and effect with respect to any other then existing or subsequent breach. 24. -- TIKB 01' BSSBNCB Time is of the essence of this lease and of each provision. 25. -- COMPUTATION 01' TIKB The time in which any act provided by this lease is to be done by shall be computed by excluding the first day and including the last, unless the last day is a saturday, Sunday or a holiday, and then it is also excluded. 21. -- SOCCBSSORS IN INTBRBST Each and all of the terms, covenants and conditions in this lease shall inure to the benefit of and shall be binding upon the successors in interest of CITY and LESSEE. 27. ENTIRB AGRBBKBNT This lease contains the entire agreement of the parties with respect to the matters covered by this lease, and no other agreement, statement or promise made by any party which is not contained in this lease shall be binding or valid. South central Radio Ino. RE-080 4/27/92 14 . . . 28 . -- GQVBlUfING LAW This lease shall be governed by, construed accordance with the laws of the state of Alaska. and enforced in 29. -- PARTIAL INVALIDITY If any provision of this lease is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 30. -- RBLATIONSHIP OP PARTIBS Nothing contained in this lease shall be deemed or construed by the parties or by any third person to create the relationship of principal and agent or of partnership or of joint venture or of any association between CITY and LESSEE; and neither the method of computation of rent, nor any other provisions contained in this lease nor any acts of the parties, shall be deemed to create any relationship between CITY and LESSEE other than the relationship of lessee and lessor. 31. -- INTERPRETATION The language in all parts of this lease shall in all cases be simply construed according to its fair meaning and not for or against CITY or LESSEE as both CITY and LESSEE have had the assistance of attorneys in drafting and reviewing this lease. 32. -- lfUKBBR AIfD GBlfDBR In this lease, the neuter gender includes the masculine and the feminine, and the singular number includes the plural; the word "person" includes corporation, partnership, firm or association wherever the context so requires. 33. -- lIAIIDATORY AIfD PBlUIISSIVB "Shall", "will" and "agrees" are mandatory; "may" is permissive. 34 . CAPTIONS Captions of the sections and Subsections of this lease are for convenience and reference only, and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this lease. 35 . -- AKBIfI)MBN'1' This lease is not subject to amendment except in writing executed by both parties hereto. South Central Radio Inc. RE-080 4/27/92 15 . . . Mr~-~~-~~ ~CU l~.~r r nl\ !tV. ~lJ c.~..,jc...Q It: C L t'tv t D APR 2 4 1992 OJ-fleE uF THE CITX CLERK '.J J. I J VJ IJ....Y'lJill.v 36. -- DELrVERl OH NOTXCBS M KBTKOD OF TXME All notices, demands or requests from one party to anOther shall be delivered in person or be sent by mail, certified or registered, postage prepaid, to the addresses stated in 38 and to such other persons and addresses as either party may designate notice shall ba deemed to have been given at the time of mailing. 37. -- HOTleES All notices, demands and requests from LESSEE to CITY shall be given to CITY at the following address: city Manager City of Seward P.O. Box 167 Seward, Alaska 99664 All notices, demands or requests from CITY to LESSEE shall be given to LESSEE at the following address: South Central Radio Inc. 7437 Old Seward Highway Anchoraqe, Alaska 99518 sa. -- CHANG. OF ADDRESS Each party shall have the right, from time to time, to designate a different address by notice given in conformity with this . IN WITNBSS WHERBOF, the parties hereto have set their hands and seals the date first hereinbefore set forth. CITY: CITY OF SEWARD ~;EIt CITY MANAGER LESSEE: SOUTH CENTRAL RADIO IN South Central Radio tno. RE-OSO 4/27/92 16 . . . APR-22-92 WED 14:58 CITY OF SEWARD p, 03 FAX NO. 8072243248 ATTEST: APPROVE AS TO FORM~ PERKINS COlE Attorneys fer the city of Seward 7. J N a..-- 1. FRED B. ARVIDSON (CITY SEAL) .- , " it. '" '~. . ) i' :, , " ) SS.l t THIRD JUDICIAL DIS'I'RIC'1') : if. THIS IS TO CERTIFY that on this 22- day Oft40lrl Y:~ 19::1'; before me, the undersigned, a Notary PUblic in and fo~~te Of Alaska, personally appeared. ..jb~ ' (. RA Fl E::' , known to me and to me known to be the ~nd~v1dual named 1n an who executed, the foreqoing document, and who acknowledged to me that (t) (y) dqned the same freely and voluntarily for the uses and purposes herein contained. STATE OF ALASKA WITNESS my hand hereinabove written. day and. year first i .. ~ ,." " :r.. ~1:' ~~:. :' .' ~~ Central Radio Inc. 4/27/92 17