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HomeMy WebLinkAboutL011-09 - Original - US West Wireless, LLC - Blue Boy Tank - Lease Agreement - 07/01/1998 LEASE AGREEMENT THIS LEASE entered into by and between the City of Kent, Washington, Municipal Corporation("Landlord")and U.S. West Wireless L.L.C.,a Delaware limited liability company,with its principal office located at 1999 Broadway, Tenth Floor,Denver, Colorado 80202 ('Tenant"). Background A. Landlord is the owner in fee simple of a parcel of land located in the City of Kent, King County, Washington, legally described on the attached Exhibit A. B. Tenant is in the communications business and desires to lease a portion of the Landlord's property described below,which is legally described on the attached Exhibit B,together with a nonexclusive access easement, which is legally described on the attached Exhibit C, from Landlord and to construct on the Premises a 130-foot high monopole-type tower for use in connection with its communications business. C. Accordingly,the parties are entering into this Lease on the terms and conditions set forth below. Agreement In consideration of their mutual covenants, the parties agree as follows: 1. Leased Premises. Landlord leases to Tenant and Tenant leases from Landlord the real property legally described on the attached Exhibit B (the"Land")together with a non-exclusive easement for ingress, egress and utilities over the adjacent real property legally described on the attached Exhibit C (the "Access Easement"). The Land and the Access Easement are collectively referred to as the "Premises". This Lease is not a franchise nor is it a permit to use the City of Kenfs rights-of-way. Any such franchise or permit must be obtained separately from Landlord. 2. Term and Option to Renew. This Lease shall commence on July 1, 1998 (the "Commencement Date"), and end on June 30 , 2003. Additionally, Tenant shall have the option to renew this lease for three (3) additional five (5)year periods subject to those terms and conditions as are mutually agreed to between the parties. Should Tenant exercise any option to renew this lease, that option must be exercised--and all conditions of renewal agreed to between the parties-- at least ninety (90) calendar days before the end of the term then in effect. 3. Rent. a. Tenant shall pay Landlord as annual rent for the Premises the sum of Twelve Thousand Dollars ($12,000.00) (Base Rent"). Tenant shall pay Landlord Base Rent for the first year on the Commencement Date. Tenant shall pay Landlord Base Rent annually in advance on each US WEST COMM.BLUE BOY TANK LEASE--Page 1 or 15 anniversary of the Commencement Date. Base Rent shall be increased annually as described hereafter. b. Tenant shall pay Landlord a late payment charge equal to five percent(5%) of the late payment for any payment not paid within twenty(20) calendar days of when due. Any amounts not paid when due shall bear interest until paid at the lesser of the rate of two percent(2%) per month. C. For each additional antenna installed by Tenant beyond the initial array described in Exhibit C, Tenant shall pay an additional annual fee in an amount to be determined by the parties, which shall increase annually under the same terms provided in this Lease and shall become part of the Base Rent. d. Tenant shall also allow Landlord access to its own communication towers, as provided for in Section 6, as"Usage Rent." e. The Base Rent shall be increased annually effective as of each anniversary of the Commencement Date by an amount equal to the greater of five percent(5%)or the percentage increase in the CPI over the CPI for the month 12 months prior to the adjustment date. "CPF'means the Consumer Price Index for All Urban Consumers, U.S. City Average, All Items, issued by the Bureau of Labor Statistics for the United States Department of Labor(1982-84 ` 100). If the CPI is converted to a different standard reference base or otherwise revised, the adjustment set forth in this paragraph shall be made with the use of the conversion formula published by the Bureau of Labor Statistics. £ If this Lease is terminated at a time other than on the last day of the month, Rent shall be prorated as of the date of termination and, in the event of termination for any reason other than nonpayment of Rent, all prepaid Rents shall be refunded to the Tenant. g. Base Rent, and all other consideration to be paid or provided by Tenant to Landlord shall constitute Rent and shall be paid or provided without offset. 4. Use of Premises. a. Tenant shall use the Premises for the construction and operation of a communications tower and for no other purpose. Tenant may erect and operate a 130 foot co- locatable monopole tower. b. Tenant shall, at its expense,comply with all present and future federal, state, and local laws, ordinances, rules and regulations(including laws and ordinances relating to health, radio frequency emissions, other radiation and safety) in connection with the use, operation, maintenance, construction and/or installation of the Antennae Facilities and/or the Premises. C. (1) The Tenant shall remove the Antennae Facilities(including the tower and other buildings or structures)from the Premises upon termination of the Lease. Such removal shall be done in a workmanlike and careful manner and without interference or damage to any other US WEST COMM.BLUE BOY TANK LEASE--Page 2 of 15 t . equipment, structures or operations on the Premises, including use of the Premises by Landlord or any of Landlord's assignees or lessees. (2) Upon removal of the improvements (or portions thereof) as provided above in subpart (1), Tenant shall restore the affected area of the Premises to the reasonable satisfaction of Landlord. (3) All costs and expenses for the removal and restoration to be performed by Tenant pursuant to subparts (1) and(2) above shall be borne by Tenant, and Tenant shall hold Landlord harmless from any portion thereof. 5. Tenant Improvements, Plans, Bonds. a. (1) Tenant may improve the Premises by constructing a communications tower and ancillary support facilities and structures(collectively, "Tower") on the Premises. Prior to commencing construction, Tenant shall submit plans and specifications for all improvements to Landlord for Landlord's written approval, such approval not to be unreasonably withheld. No improvement, construction, installation or alteration shall be commenced until plans for such work have been approved by the Landlord and all necessary permits have been properly issued. (2) Such plans shall include: Fully dimensioned site plans that are drawn to scale and show(i)the proposed location of the antennas,equipment shelter,driveway and parking areas, (ii)the proposed changes in the landscape, (iii)the proposed type and height of fencing, (iv) the proposed color of all structures, including fencing, (v)the proposed type of construction material for all structures, including fencing, and any other details that the Landlord may request. (3) All improvements shall be constructed in a workmanlike manner without the attachment of any liens to the Premises and shall be completed in compliance with all applicable laws, rules, ordinances and regulations. (4) Tenant shall conform and comply with all local land use,regulatory, or building permit conditions issued by the City of Kent in connection with the construction, operation, or maintenance of Tenant's facilities contemplated in this lease. (5) No improvements or modifications to the Tower shall be made without the Landlord's consent. Moreover, any such improvements or modifications are subject to the conditions set forth in section a. (1), (2) , (3), and(4) above. b. (1) The Tower shall remain the property of Tenant and Tenant shall, at Landlord's request, remove the Tower upon termination of the Lease. Such removal shall be done in a workmanlike and careful manner and without interference or damage to any other equipment, structures or operations on the Premises, including use of the Premises by Landlord or any of Landlord's assignees or lessees. If, however, Tenant requests permission not to remove all or a portion of the improvements, and Landlord consents to such non-removal, title to the affected improvements shall thereupon transfer to Landlord and the same thereafter shall be the sole and entire property of Landlord, and Tenant shall be relieved of its duty to otherwise remove same. All US WEST COMM.BLUE BOY TANK LEASE--Page 3 of 15 other alterations, improvements and structures located or constructed on the Premises (except for movable equipment and trade fixtures), shall become the property of Landlord upon termination of the Lease, except that Landlord may,by written notice to Tenant, require Tenant to remove all such improvements upon termination of the Lease. Any personal property, equipment or other improvements which are not removed prior to the termination of this Lease shall become the property of Landlord, at Landlord's option. (2) Upon removal of the improvements(or portions thereof)as provided above in subpart 5.b.(1), Tenant shall restore the affected area of the Premises to the reasonable satisfaction of Landlord. (3) All costs and expenses for the removal and restoration to be performed by Tenant pursuant to subparts 5.b.(1)and(2)above shall be home by Tenant,and Tenant shall hold Landlord harmless from any portion thereof. C. Tenant shall annually post a bond(or, at Tenant's option, a letter of credit) from a surety or bank reasonably acceptable to Landlord, and in an amount reasonably deemed necessary by Landlord,to assure that the funds will be available at the termination of the Lease for removal of the Tower. 6. Use by Other Providers. a. Tenant shall design and construct the Tower to accommodate 1 (one) other telecommunication provider("Other Provider"). Toward this end,Tenant shall design and construct the tower so that 2 (two) antennae or antennae arrays may be placed on it. Tenant shall also design and construct all ancillary support facilities, including any support buildings, so that 1 (one) Other Providers will have an adequate amount of space to house their own support equipment. b. Tenant shall cooperate with each new Other Provider in connection with their locating and placing their antennas and other facilities on the Tower and in the ancillary support facilities. C. Each new Other Provider shall be solely responsible for the cost of locating and placing their equipment onto the tower and into the ancillary support facilities, including any support buildings. The Other Providers shall also be responsible for any liabilities that arise from the Other Provider's use of the Tower. d. Within three days after receipt,Tenant shall notify Landlord in writing of all sublease or assignment requests or proposals which Tenant receives for use of the Tower. Tenant shall also immediately provide Landlord with any information relating to an actual or prepared lease to an Other Provider that Landlord requests. Failure to comply with this provision shall place Tenant in default and give Landlord the option of exercising any of the rights described in paragraph 15. e. Landlord may elect at any time to place one antenna or antenna facility on the Tower otherwise available for use by an Other Provider, such usage(and that in paragraph f below) collectively referred to as "Usage Rent." If Landlord so elects, such use shall be without charge to US WEST COMM.BLUE BOY TANK LEASE—Page 4 of 15 Landlord. Tenant shall cooperate with Landlord in connection with Landlord's locating and placing their antennas and other facilities on the Tower and into the ancillary support facilities. f. Landlord may obtain an interference study indicating whether Tenant's use of the Tower will interfere with Landlord's proposed use of the Tower. In the event that such a study indicates that Tenant's use will potentially interfere with Landlord's proposed use of the Tower, Landlord may require Tenant, at Landlord's expense (as appropriate), to relocate Tenant's antenna on the Tower structure and any other equipment so as to minimize the interference,to the extent Landlord deems necessary. 7. Net Lease. Landlord shall not be required to make any expenditures of any kind in connection with this Lease or to make any repairs or improvements to the Premises. The parties agree that this is a net Lease intended to assure Landlord the rent reserved on an absolute net basis. In addition to the Rent reserved above, Tenant shall pay to the parties entitled thereto all taxes, assessments, insurance premiums, maintenance charges, and any other direct charges, costs and expenses against the Premises which may be contemplated under any provisions of this Lease. 8. Signs/Graffiti. Tenant may place signs on the Premises subject to applicable governmental regulations; however, Tenant shall first obtain the Landlord's written consent to design, size and location. Landlord at any time may enter the Premises and undertake any activities necessary to abate or remove graffiti located therein. Tenant shall reimburse Landlord all actual costs incurred by Landlord in connection with such abatement or renewal within 30 days of Landlord's presenting Tenant with a statement of such costs. 9. Maintenance. Tenant shall, at its own expense, maintain the Premises and all improvements, equipment and other personal property on the Premises in good working order, condition and repair. Tenant shall keep the Premises free of debris and anything of a dangerous, noxious or offensive nature or which would create a hazard or undue vibration, heat, noise or interference. In the event the Landlord or any other Tenant undertakes painting, construction or other alterations on the Landlord's property described in Exhibit A, Tenant shall take reasonable measures, at Tenant's cost, to cover Tenant's equipment,personal property or Antennae Facilities and protect them from paint and debris fallout which may occur during the painting, construction or alteration process. This requirement shall not be interpreted as a waiver of any claim Tenant may raise either against Landlord or any third party due to their negligence, so long as Tenant has taken reasonable measures to protect Tenant's equipment,property, and facilities as required above. 10. Access. Landlord and its agents shall have the right to enter the Premises at reasonable times to examine and inspect the Premises. 11. Utilities. Tenant shall, at its expense, separately meter charges for the consumption of electricity and other utilities associated with its use of the Premises and shall timely pay all costs associated therewith. 12. License Fees. Tenant shall pay, as they become due and payable, all fees, charges, taxes and expenses required for licenses and/or permits required for or occasioned by Tenant's use of the Premises. US WEST COMM.BLUE BOY TANK LEASE—Page 5 of 15 13. Approvals, Compliance with Laws. Tenant's use of the Premises is contingent upon its obtaining all certificates, permits, zoning, and other approvals that may be required by any federal, state or local authority. Tenant shall erect,maintain and operate its Antennae Facilities in accordance with site standards, statutes, ordinances,rules and regulations now in effect or that may be issued thereafter by the Federal Communications Commission or any other governing bodies. 14. Interference. Tenant's installation, operation, and maintenance of its transmission facilities shall not damage or interfere in any way with Landlord's activities or with such activities on the Premises. Tenant agrees to correct,within fifteen(15)calendar days, all such actions which materially interfere with Landlord's use of the Premises immediately upon actual notice of such interference, provided however, in such case, Tenant shall have the right to terminate the Lease. Landlord, at all times during this Lease,reserves the right to take any action it deems necessary, in its sole discretion,to repair,maintain,alter or improve the Premises in connection with its operations as may be necessary. Before approving the placement of Antennae Facilities, Landlord may obtain, at Tenant's expense, an interference study(not to exceed three thousand dollars($3000.00))indicating whether Tenant's intended use will interfere with any existing communications facilities on the Premises. In the event any other party requests a lease and/or permission to place any type of additional antennae or transmission facility on the Premises, Landlord shall submit a proposal complete with all technical specifications reasonably requested by Tenant to Tenant for review for noninterference; however, Landlord shall not be required to provide Tenant With any specifications or information claimed to be of a proprietary nature by the third party. The third party shall be responsible for the reasonable cost of preparing the technical specifications for its proposed transmission facility. Tenant shall have fifteen (15) calendar days following receipt of said proposal to make any objections thereto, and failure to make any objection within said fifteen (15) calendar day period shall be deemed consent by Tenant to the installation of Antennae or transmission facilities pursuant to said proposal. If Tenant gives notice of objection due to interference during such fifteen (15) calendar day period and Tenant's objections are verified by Landlord to be valid,then Landlord shall not proceed with such proposal unless the third party modifies the proposal in a manner determined, in Landlord's reasonable judgment, to adequately eliminate reasonable interference concerns asserted by Tenant. In that case,Landlord may proceed with the proposal. A governmental unit may be allowed to place Antennae or other communications facilities on the Premises regardless of potential or actual interference with Tenant's use,provided however,if Tenant's use of the Premises is materially affected, Tenant may terminate the Lease. 15. Default and Landlord's Remedies. It shall be a default if Tenant defaults in the payment or provision of Rent or any other sums to Landlord when due, and does not cure such default within fifteen (15) calendar days; or if Tenant defaults in the performance of any other covenant or condition of this Lease and does not cure such other default within thirty (30) calendar days after written notice from Landlord specifying the default complained of; or if Tenant abandons or vacates the Premises; or if Tenant fails, at any time during this lease (including optional renewal periods), to conform or comply with any local land use , regulatory, or building permit conditions issued by the City in connection with the construction, operation, or maintenance of Tenant's US WEST COMM.BLUE BOY TANK LEASE—Page 6 of 15 facilities contemplated in this lease; or if Tenant is adjudicated as bankrupt or makes any assignment for the benefit of creditors; or if Tenant becomes insolvent. In the event of an instance of default as identified in this Section 15, Landlord shall have the right, at its option, in addition to and not exclusive of any other remedy Landlord may have by operation of law,without any further demand or notice,to re-enter the Premises and eject all persons therefrom and declare this Lease at an end, in which event Tenant shall immediately remove the Antennae Facilities (and proceed as set forth in paragraph 5.b.) and pay Landlord a sum of money equal to the total of(1)the amount of the unpaid rent accrued through the date of termination; and (2) Landlord's direct costs associated with Tenant's default; and (3) Liquidated Damages in the amount of twelve (12)months rent. In the event of any claim, suit, or other action brought by Landlord for recovery of possession of the Premises, for the recovery of any rent or any other amount due under the provisions of this Lease, or because of the breach of any other covenant between Tenant and Landlord, and if the Landlord is the prevailing party in any such claim,the Tenant shall pay to the Landlord all expenses incurred therefor, including reasonable attorney fees. 16. Cure by Landlord. In the event of any default of this Lease by Tenant,the Landlord may at any time, after notice, cure the default for the account of and at the expense of the Tenant. If Landlord is compelled to pay or elects to pay any sum of money or to do any act which will require the payment of any sum of money or is compelled to incur any expense,including reasonable attorney fees in instituting, prosecuting or defending any action to enforce the Landlord's rights under this Agreement,the sums so paid by Landlord, with all interest, costs and damages shall be deemed to be Additional Rental and shall be due from the Tenant to Landlord on the first day of the month following the incurring of the respective expenses. 17. Optional Termination. Except for instances of default as set forth in Section 15, above, this Lease may be terminated (a) by Tenant if it is unable to obtain or maintain any license, permit, or other governmental approval necessary for the construction and/or operation of the Antennae Facilities or Tenant's business; (b) by Landlord if the Landlord decides, in its sole discretion and for any reason, to discontinue use of the Premises; (c) by Landlord if it determines in its sole discretion that continued use of the Premises by Tenant is in fact a threat to health, safety or welfare or violates applicable laws or ordinances; (e) by Landlord if Tenant loses its license to provide PCS/cellular service for any reason, including, but not limited to, nonrenewal, expiration, or cancellation of its license; or(f)by Tenant if it no longer requires use of the site. 18. Removal of Facilities Upon Termination. Upon termination of this Lease for any reason, Tenant shall remove its equipment, personal property, Antennae Facilities, and leasehold improvements from the Premises within thirty (30) calendar days from the date of termination, and shall repair any damage to the Premises caused by such equipment,normal wear and tear excepted; all at Tenant's sole cost and expense. Without waiving any other rights Landlord may have under this agreement, if any such property or facilities are not removed to the satisfaction of Landlord by the end of this thirty (30) day time period after termination, Landlord may, at its option, assume ownership of that property by recording notice thereof with the Recorder's office at King County, Washington. US WEST COMM.BLUE BOY TANK LEASE—Page 7 of 15 19. Termination:Notice. Notice of Tenant's termination pursuant to paragraph 17 shall be given to Landlord in writing at least thirty calendar days prior to the termination date (with the sole exception of subsection 17 (c), which shall be subject to immediate termination upon giving written notice) by certified mail,return receipt requested,and shall be effective no sooner than thirty (30) calendar days from the date of receipt of that notice. Landlord may retain such amounts as necessary from all rentals paid for the Lease of the Premises prior to said termination date to cover Landlord's economic loss resulting from Tenant's termination. 20. Damage or Destruction. If the Tower or any portion of the Tower is destroyed or damaged so as to materially hinder effective use of the Tower through no fault or negligence of Tenant, Tenant may elect to terminate this Lease upon thirty (30) calendar days' written notice to Landlord. In such event, Tenant shall promptly remove the Tower from the Premises as set forth in Section 5.b. above. This Lease (and Tenant's obligation to pay rent) shall terminate upon Tenant's fulfillment of the obligations set forth in the preceding sentence, at which termination Tenant shall be entitled to the reimbursement of any Rent prepaid by Tenant. Landlord shall have no obligation to repair any damage to any portion of the Premises. 21. Condemnation. In the event the Owned Premises are taken by eminent domain,this Lease shall terminate as of the date title to the Owned Premises vests in the condemning authority. In event a portion of the Premises is taken by eminent domain, either party shall have the right to terminate this Lease as of said date of title transfer, by giving thirty(30) days'written notice to the other party. In the event of any taking under the power of eminent domain, Tenant shall not be entitled to any portion of the reward paid for the taking and the Landlord shall receive full amount of such award. Tenant shall hereby expressly waive any right or claim to any portion thereof although all damages, whether awarded as compensation for diminution in value of the leasehold or to the fee of the Premises, shall belong to Landlord, Tenant shall have the right to claim and recover from the condemning authority, but not from Landlord, such compensation as may be separately awarded or recoverable by Tenant on account of any and all damage to Tenant's business and any costs or expenses incurred by Tenant in moving/removing its equipment,personal property, Antennae Facilities, and leasehold improvements. 22. Indemnity and Insurance. a. Disclaimer of Liability: Landlord shall not at any time be liable for injury or damage occurring to any person or property from any cause whatsoever arising out of Tenant's negligent construction,maintenance,repair, use, operation,condition or dismantling of the Premises or Tenant's Antennae Facilities. b. Indemnification: Tenant shall, at its sole cost and expense, indemnify and hold harmless Landlord and all associated,affiliated, allied and subsidiary entities of Landlord,now existing or hereinafter created,and their respective officers,boards,commissions, employees,agents, attorneys, and contractors (hereinafter referred to as "Indemnitees"), from and against: (1) Any and all liability, obligation, damages, penalties, claims, liens, costs, charges, losses and expenses (including,without limitation,reasonable fees and expenses of US WEST COMM.BLUE BOY TANK LEASE--Page 8 of 15 attorneys, expert witnesses and consultants),which may be imposed upon,incurred by or be asserted against the Indemnitees by reason of any negligent act or omission of Tenant, its personnel, employees, agents, contractors or subcontractors,resulting in personal injury,bodily injury, sickness, disease or death to any person or damage to,loss of or destruction of tangible or intangible property, libel, slander, invasion of privacy and unauthorized use of any trademark, trade name, copyright, patent, service mark or any other right of any person, firm or corporation,which may arise out of or be in any way connected with the construction,installation, operation,maintenance,use or condition of the Premises or Tenant's Antennae Facilities or the Tenant's failure to comply with any federal, state or local statute, ordinance or regulation. (2) Any and all liabilities,obligations,damages,penalties, claims, liens, costs, charges, losses and expenses (including,without limitation,reasonable fees and expenses of attorneys, expert witnesses and other consultants),which are imposed upon, incurred by or asserted against the Indemnitees by reason of any claim or lien arising out of work, labor, materials or supplies provided by or supplied to Tenant, its contractors or subcontractors, for the installation, construction, operation, maintenance or use of the Premises or Tenant's Antennae Facilities, and, upon the written request of Landlord, Tenant shall cause such claim or lien covering Landlord's property to be discharged or bonded within thirty (30) days following such request. C. Assumption of Risk: Tenant undertakes and assumes for its officers, agents, affiliates, contractors and subcontractors and employees all risk of dangerous conditions, if any, on or about the Owned Premises. Tenant's assumption of risk shall not apply to any latent defects or other dangerous situation, if Landlord knows or should know that defect or situation to exist but has not disclosed that information to Tenant. d. Defense of Indemnitees: In the event any action or proceeding shall be brought against the Indemnitees by reason of any matter for which the Indemnitees are indemnified hereunder,Tenant shall,upon notice from any of the Indemnitees,at Tenant's sole cost and expense, resist and defend the same;provided however,that Tenant shall not admit liability in any such matter on behalf of the Indemnitees without the written consent of Landlord and provided further that Indemnitees shall not admit liability for, nor enter into any compromise or settlement of, any claim for which they are indemnified hereunder, without the prior written consent of Tenant. e. Notice,Cooperation and Expenses: Landlord shall give Tenant prompt notice of the making of any claim or the commencement of any action, suit or other proceeding covered by the provisions of this paragraph. Nothing herein shall be deemed to prevent Landlord from cooperating with Tenant and participating in the defense of any litigation by Landlord's own counsel so long as the participation is coordinated with Tenant's legal counsel. Tenant shall pay all expenses incurred by Landlord in response to any such actions, suits or proceedings. These expenses shall include all out-of-pocket expenses such as attorney fees and shall also include the reasonable value of any services rendered by the Landlord's attorney, and the actual expenses of Landlord's agents, employees or expert witnesses, and disbursements and liabilities assumed by Landlord in connection with such suits, actions or proceedings but shall not include attorneys' fees for services that are unnecessarily duplicative of services provided Landlord by Tenant. US WEST COMM.BLUE BOY TANK LEASE—Page 9 of 15 If Tenant requests Landlord to assist it in such defense, then Tenant shall pay all expenses incurred by Landlord in response thereto, including defending itself with regard to any such actions, suits or proceedings. These expenses shall include all out-of-pocket expenses such as attorney fees and shall also include the costs of any services rendered by the Landlord's attorney, and the actual expenses of Landlord's agents, employees or expert witnesses, and disbursements and liabilities assumed by Landlord in connection with such suits, actions or proceedings which are not directly attributable to Landlord's negligence. f. Insurance: During the term of the Lease, Tenant shall maintain, or cause to be maintained, in full force and effect and at its sole cost and expense,the following types and limits of insurance: (1) Worker's Compensation insurance meeting applicable statutory requirements and employer's liability insurance with minimum limits of One Hundred Thousand Dollars ($100,000) for each accident. (2) Comprehensive Commercial General Liability insurance written on an occurrence basis with limits no less than Two Million Dollars($2,000,000)combined single limit per occurrence and Two Million Dollars($2,000,000) general aggregate for bodily injury,personal injury and property damage. The policy shall provide blanket contractual liability insurance for all written contracts, and shall include coverage for products and completed operations liability, independent contractor's liability; coverage for property damage from perils of explosion, collapse or damage to underground utilities, commonly known as XCU coverage. (3) Automobile Liability insurance covering all owned, hired, and nonowned vehicles in use by Tenant, its employees and agents, with personal protection insurance and property protection insurance to comply with the provisions of state law with minimum limits of One Million Dollars ($1,000,000) as the combined single limit for each occurrence for bodily injury and property damage. (4) Excess Liability insurance with limits not less than Four Million Dollars ($4,000,000.00)per occurrence and in the aggregate. (5) At the start of and during the period of any construction,builders all- risk insurance,together with an installation floater or equivalent property coverage covering cables, materials, machinery and supplies of any nature whatsoever which are to be used in or incidental to the installation of the Antennae Facilities. Upon completion of the installation of the Antennae Facilities, Tenant shall substitute for the foregoing insurance policies of fire, extended coverage and vandalism and malicious mischief insurance on the Antennae Facilities. The amount of insurance at all times shall be representative of the insurable values installed or constructed. (6) All policies other than those for Worker's Compensation shall be written on an occurrence and not on a claims made basis. US WEST COMM.BLUE BOY TANK LEASE—Page 10 of 15 (7) The coverage amounts set forth above may be met by a combination of underlying and umbrella policies so long as in combination the limits equal or exceed those stated. g. Named Insureds: All policies, except for business interruption and worker's compensation policies, shall list Landlord and its officials, officers, employees, agents and assigns, as their respective interests may appear,as additional insureds(herein referred to as the"Additional Insureds"). Each policy which is to be endorsed to list Additional Insureds hereunder, shall contain cross-liability wording, as follows: "In the event of a claim being made hereunder by one insured for which another insured is or may be liable,then this policy shall cover such insured against whom a claim is or may be made in the same manner as if separate policies had been issued to each insured hereunder." h. Evidence of Insurance: Certificates of insurance or self insurance for each insurance policy required to be obtained by Tenant in compliance with this paragraph,together with a copy of the endorsement listing the City as additional insured. Tenant shall also provide written evidence of payment of required premiums shall be filed and maintained with Landlord annually during the term of the Lease. Tenant shall immediately advise Landlord of any claim or litigation that may result in liability to Landlord. i. Cancellation of Policies of Insurance: All insurance policies maintained pursuant to this Lease shall contain the following endorsement: "At least sixty (60) days prior written notice shall be given to Landlord by the insurer of any intention(a)not to renew, (b)to cancel or(c)to materially alter this insurance policy, such notice to be given by registered mail to the parties named in this paragraph of the Lease." j. Insurance Companies: All insurance shall be effected under valid and enforceable policies, insured by insurers licensed to do business by the State of Washington or surplus line carriers on the State of Washington Insurance Commissioner's approved list of companies qualified to do business in the State of Washington. All insurance carriers and surplus line carriers shall be rated B+(}BII) or better by A.M. Best Company. Alternatively and subject to Landlord's prior written approval,which shall not be unreasonably withheld,Tenant shall be allowed to self-insure for the amounts and types of insurance required herein. k. Deductibles: Any payment of deductible or self-insured retention shall be the sole responsibility of the Tenant. 1. Contractors: Tenant shall require that each and every one of its contractors and their subcontractors who perform work on the Premises carry, in full force and effect, workers' compensation,comprehensive public liability and automobile liability insurance coverage of the type US WEST COMM.BLUE BOY TANK LEASE—Page 11 of 15 which Tenant is required to obtain under the terms of this paragraph with appropriate limits of insurance. in. Review of Limits: Once during each calendar year during the term of this Lease,Landlord may review the insurance coverage to be carried by Tenant. If Landlord determines that higher limits of coverage are necessary to protect the interests of Landlord or the Additional Insureds, Tenant shall be so notified and shall obtain the additional limits of insurance, at its sole cost and expense. 23. Hazardous Substance Indemnification. Tenant represents and warrants that its use of the Premises herein will not generate any hazardous substance, and it will not negligently or intentionally store or dispose on the Premises nor transport to or over the Premises any hazardous substance in violation of any federal or state law. Tenant further agrees to hold Landlord harmless from and indemnify Landlord against any release of any such hazardous substance and any damage, loss, or expense or liability resulting from such release including all attorneys' fees, costs and penalties incurred as a result thereof except any release caused by the negligence of Landlord, its employees or agents. Similarly, Landlord warrants that the Premises are free of any hazardous substances and agrees to indemnify and hold Tenant harmless from the Landlord's negligent or intentional introduction of any hazardous substance by Landlord. "Hazardous substance" shall be interpreted broadly to mean any substance or material defined or designated as hazardous or toxic waste,hazardous or toxic material,hazardous or toxic or radioactive substance,or other similar term by any federal, state or local environmental law,regulation or rule presently in effect or promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include,but not be limited to, any substance which after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. 24. Holding Over. Any holding over after the expiration of the term hereof, with the consent of the Landlord, shall be construed to be a tenancy from month to month at two times the rents herein specified(prorated on a monthly basis) and shall otherwise be for the term and on the conditions herein specified, so far as applicable. 25. Subordination to Mortgage. Any mortgage now or subsequently placed upon any property of which the Premises are a part shall be deemed to be prior in time and senior to the rights of the Tenant under this Lease. Tenant subordinates all of its interest in the leasehold estate created by this Lease to the lien of any such mortgage. Tenant shall, at Landlord's request, execute any additional documents necessary to indicate this subordination. 26. Acceptance of Premises. With the exception of latent defects and any hazardous substance contamination to Landlord's property, by taking possession of the Premises, Tenant accepts the Premises in the condition existing as of the Commencement Date. Landlord makes no representation or warranty with respect to the condition of the Premises. 27. Estoppel Certificate. Tenant shall, at any time and from time to time upon not less than ten(10)days prior request by Landlord, deliver to Landlord a statement in writing certifying that(a)the Lease is unmodified and in full force(or if there have been modifications,that the Lease is in full force as modified and identify the modifications); (b) the dates to which rent and other US WEST COMM.BLUE BOY TANK LEASE—Page 12 of 15 charges have been paid; (c) so far as the person making the certificate knows, Landlord is not in default under any provisions of the Lease; and (d) such other matters as Landlord may reasonably request. 28. Notices. All notices,requests, demands, and other communications hereunder shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested; to the following addresses: If to Landlord, to: Facilities Manager City of Kent 220 Fourth Avenue South Kent, WA 98032 With a copy to: City Clerk City of Kent 220 Fourth Avenue South Kent, WA 98032 If to Tenant, to: U.S. WEST Communications Real Estate Services 8200 East Belleview Suite 500 Greenwood Village, CO 80111 Attn: PSL Manager/Wireless With a copy to: U.S. WEST Wireless,L.L.C. 450 110'Ave NE, Room 219A Bellevue, WA 98004 Attn: Regional Real Estate Manager 29. Assignment and Sublettine. Subject to the provisions of paragraph 6,Tenant shall not assign this Lease in whole or in part, or sublet all or any part of the Premises without the Landlord's prior written consent. Consent by Landlord to any assignment or subletting shall not constitute a waiver of the necessity of such consent to any subsequent assignment or subletting. This prohibition against any assignment or subletting shall be construed to include a prohibition against any subletting or assignment by operation of law. If this Lease is assigned,or if the Premises or any part thereof is sublet or occupied by anyone other than Tenant, Landlord may collect rent from the assignee, subTenant or occupant and apply the net amount collected to the rent and other obligations of Tenant hereunder reserved, but no such assignment, subletting, occupancy or collection shall be deemed a waiver or release of Tenant from the further performance by Tenant of the covenants on the part of Tenant hereunder contained. If Tenant is a corporation or partnership, and if the control thereof changes at any time during the term of this Lease,then Landlord at its option may, by giving ten(10) days prior written notice to Tenant, declare such change a breach of this paragraph unless Landlord has previously approved the new controlling party. US WEST COMM.BLUE BOY TANK LEASE—Page 13 of 15 Any person or entity to which this Lease is assigned pursuant to the provisions of the Bankruptcy Code, 11 USC sections 101, et seq., shall be deemed without further act to have assumed all of the obligations of Tenant arising under this Lease on and after the date of such assignment. Any such assignee shall upon demand execute and deliver to Landlord an instrument confirming such assumption. Any monies or other considerations payable or otherwise to be delivered in connection with such assignment shall be paid to Landlord, shall be the exclusive property of Landlord, and shall not constitute property of the Tenant or of the estate of Tenant within the meaning of the Bankruptcy Code. Any monies or other considerations constituting Landlord' s property under the preceding sentence not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and be promptly paid to Landlord. 30. Other Leases. Nothing in this Lease shall preclude Landlord from leasing other space for communications equipment to any person or entity which may be in competition With Tenant, or any other party. 31. Successors and Assigns. This Lease shall be binding upon and inure to the benefit of the parties, their respective successors,personal representatives and assigns. 32. Non-Waiver. Failure of Landlord to insist on strict performance of any of the conditions, covenants, terms or provisions of this Agreement or to exercise any of its rights hereunder shall not waive such rights,but Landlord shall have the rights to enforce such rights at any time and take such action as might be lawful or authorized hereunder, either in law or equity. The receipt of any sum paid by Tenant to Landlord after a breach of this Agreement shall not be deemed a waiver of such breach unless expressly set forth in writing. 33. Taxes. a. Tenant shall pay all real and personal property taxes(or payments in lieu of taxes) and assessments for the Premises that are directly the result of Tenant's communication equipment, if any,which become due and payable during the term of this Lease. All such payments shall be made, and evidence of all such payments shall be provided to Landlord, at least ten (10) days prior to the delinquency date of the payment. Tenant shall pay all taxes on its personal property on the Premises. b. Tenant shall indemnify Landlord from any and all liability, obligation, damages,penalties,claims, liens, costs, charges,losses and expenses (including,without limitation, reasonable fees and expenses of attorneys, expert witnesses and consultants),which may be imposed upon, incurred by or be asserted against Tenant in relation to the taxes owed or assessed on the Premises. C. If the methods of taxation in effect at the Commencement Date of the Lease are altered so that in lieu of or as a substitute for any portion of the property taxes and special assessments now imposed on property there is imposed a tax upon or against the rentals payable by Tenant to Landlord,Tenant shall pay those amounts in the same manner as provided for the payment of real and personal property taxes. US WEST COMM.BLUE BOY TANK LEASE—Page 14 of 15 t 34. Miscellaneous. a. Landlord and Tenant represent that each,respectively,has full right,power, and authority to execute this Lease. b. This Lease constitutes the entire agreement and understanding of the parties and supersedes all offers, negotiations, and other agreements of any kind. There are no representations or understandings of any kind not set forth herein. Any modification of or amendment to this Lease must be in writing and executed by both parties. C. This Lease shall be construed in accordance with the laws of the State of Washington. Venue and jurisdiction of any lawsuit arising out of the performance or obligations of this lease shall be in the King County Superior Court, Kent Regional Justice Center, Kent, Washington. d. If any term of this Lease is found to be void or invalid, such invalidity shall not affect the remaining terms of this Lease,which shall continue in full force and effect. THIS LEASE IS EXECUTED and shall become effective on the last date indicated below. LANDLORD: TENANT: CITY OF KENT U.S. WEST WIRELESS, L.L.C. yyarl',— /1) f by White, Klayor b p i V.P.&ERATIONH ENGINEERING DATE: (0-30- -� W,"40ag ATTEST: NWa u t LLG 11 - ge1U8�C IX&SC:zd.e� '9�� BRENDA JACO E , CITY CLERK APPROVED AS TO FORM: ROGER A. LU OVI H, CITY ATTORNEY P9 AW MESb328WCSGRM� USWA. US WEST COMM.BLUE BOY TANK LEASE--Page 15 of 15 FISHER, SWEETBAUM & LEVIN PROFESSIONAL CORPORATION ATTORNEYS AT LAW FRITZ L.FISHER 1331 SEVENTEENTH STREET,SUITE 1000 TELEPHONE ALAN D.SWEETBAUM DENVER,COLORADO 60202 (303)296-3377 SCOTT L.LEVIN TELECOPIER CARLEEN T.CLARK (303) 296-7343 MARGARET M.TEZAK ADAM T.RABIN writer's e-mail address: EDIE MARIE SUHR esuhr@fslpc.com TARA T.CAVANAUGH E.JAMES WILDER Special Counsel BURKELEY N.RIGGS MARLA D.MUSIC KAREN P.REILLY- 'Licensed in California Only September 25, 2000 Via Federal Express Facilities Manager City Clerk City of Kent City of Kent 220 Fourth Avenue South 220 Fourth Avenue South Kent, WA 98032 Kent, WA 98032 Re: Lease Agreement, dated July 20, 1998, between the City of Kent, as Landlord, and U S West Wireless, L.L.C., as Tenant, for a parcel of land located in City of Kent, King County, Washington("Lease") Our File No. U122-082 Dear Gentlemen: This firm represents Qwest Wireless, L.L.C. ("Qwest") and as such has been asked to send formal written notice notifying you of the recent name change from U S West Wireless, L.L.C. to Qwest Wireless, L.L.C. Enclosed for your records is a copy of the Certificate from the Delaware Secretary of State evidencing such name change. As a sign of your acceptance to the name change as set forth in this letter, please sign the acknowledgement set forth on page two and return this letter via facsimile to 303-296-7343, with one copy of the original via mail in the enclosed self-addressed, stamped envelope. Ve truly yours, '- / is VS5 Edie M. Suhr EMS//j lb Enclosure cc: Shirley Sattler E-KENT FISHER, SWEETBAUM & LEVIN PROFESSIONAL CORPORATION City of Kent Facilities Manager City Clerk September 25, 2000 Page 2 ACKNOWLEDGEMENT: The undersigned consents to the name change set forth in this letter. CIT OF KENT, a ashi nici orporation B -r- Name: ' r �S yD Title: _ �21Cs c i (kG c Ei�r � J E-KENT State of Delaware Office of the Secretary of State PAGE 1 I, EDWARD J. FREEL, SECRETARY OF STATE OF THE STATE OF DELA.WARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY' OF THE CERTIFICATE OF AMENDMENT''OF !'U S WEST WIRELESS, L.L.C. ", CHANGING ITS -NAME FROM "U S WEST WIRELESS, L.L.C. " TO "QWEST WIRELESS, L.L.C. " , FILED IN THIS OFFICE ON THE SEVENTH DAY OF JULY, A.D. 2000, AT 5 O'CLOCK P.M. 0 0 Edward J.Freel, Secretary of State 2752013 8100 "' a AUTHENTICATION: 0668091 001456965 DATE: 09-11-00 JUL-07-2000 13:57 CT CORPORATION 1 303 629 2525 P.02/08 CERTIFICATE OF AMENDMENT OF THE U S WEST WIRELESS.L.L.C. 1. The name of the limited liability company is U S WEST Wireless.L.L.C.. 2. The Certificate of Formation of the limited liability company is hereby amended as follows: "FIRST: The name of the limited liability company(the"Company")is: Qwest Wireliss,L.L.C." _ [N WITNESS WHEREOF,the undersigned bas cxecuted this Certificate of Amendment of U S WEST Wireless.L.L.Q.this 6th day of July,2000. j i U S WEST WIRELESS,L.L.C. Yash .Rgfia Assi ant Secretary i . i i i i STATE OF DELAWARE SECRETARY OF STATE DIVISION OF CORPORATIONS FILED 05:00 PM 07/07/2000 001346105 - 2752013 LU apt/Tf;flt vta4UJG recl .t 1 .at..,'.I• ► � !J ' poi } VOL C 465IPtt6I UF�d • I ~c CJa I '1 4 I'� 'S 52AOL 1 ; ItR1u.000NTv 9ASK 41 seer Lee I Statutory Warranty Dodd TAa GRAN'ftlR CHARLE30. MARTELL and DOROTHY F. ?AARTF.LL, at*atre. • 1.. fm and a mmldention of SC YEN THOUOAND FLW HGNDRCD and no/100 DOLL)13 1t:7,soon col to land pad.mnv,ys and"""is to CITY OS KENT, a Municipality of the Third Class of the state of Washington, the fellwat dr,[ribed mi odes,2Ruatd In OR County ul . Hlag •We of N'aahlailm The East 264 fast of the North t/t of the Northwest lt4 of the Southeast 114 of the southeast 114 of Section 17, Township 31 North, Rang. 6 rest M.M.. TOGETHER wl:H an aseetraot for roadway and utility purposes over, under and Was the following dasaribsd propertyi The South t0 feet of the North 03 foot of the North 114 of the Northwest lift of the iouthoast 114 of the Southeast 114 of hoctlon 17, Township 12 North, Aaeys g East W.M., in King County, hashingtoa.rXCEPT the Oast Lai tut thereof and XXCEAT County roadl all situated in the County of Ling, State of Inashington. sellers reads"the right to connect any lots frontttu the.ester main supplying the teak upon payment of the usual and customary City of Kant charsos. ]Jess Mt !�/� der of `J c'1K.4. .q 'ta,t•G•t, _ulna STATt.OF UAgIINGt t1N. {a f t"sty d :1ny ► tIo Ih,I da!prltauny yd,eutd hehot oe:.IeARLE d C. MAAhiT,SL�,..iLi and DORQ'�iF��'yTE LL. 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W = YYYYI s"s 3 e nd Z W O W sp MOP € 6 Qj J a gn sr ggg, a pg O � •€ ¢yyy� y9y4 pp�g� } € ��� zED ?t e qf aeeas3 I` bi O €�@ W W ir rfp � Ya�� 3e8 esH d z EB E y Ei f ya ®�yII^III B �1 ' C i.s .uC..�4le IIC3e a , k Ese. .a I kh i �s 7e tsi ltl..1 as9E 5 E1gg131 ..,E xs86 ..il. gg q � Ili�il!4�! a4a�i 9ElLd 11l�a16!!4�1 4!i E � 1! � mm � ---------- 3, 3ae3e, oitIE ------- W 3Eal11 gals ,314t €hu!f .,h,I4Ia I!&J. I i CITY CLERK CITY OF KENT • 220 4"Avenue South KEN T Kent, WA 98032 Wg5H1NGTON Fax 253-856-6725 PHONE: 253-856-5725 Lease Agreement Cover Sheet Instructions This document is to be used in lieu of the Contract Cover Sheet SECTION 1 - CONTRACT PROCESSING AND TENANT SET-UP: All lease agreements must be signed by the Mayor or his/her designee and approved by the City Council. Lease amendments, extensions, renewals, and assignments may or may not require Council approval (contact the Law Department), but they must be signed by the Mayor. The City Clerk's Office will perform the following tasks associated with all lease agreements and amendments: • Assign a sequential lease agreement number based on starting with 001 and preceded with "L", e.g. L001. • Scan the Lease Agreement Cover Sheet, Lease Agreement (or Amendment) and, if any, related supporting documentation into the document imaging system. • Provide notification via e-mail to the Contact Person (Question 2), Law and Customer Services. The Lease Agreement Cover Sheet is to be completed for each existing and active and all subsequent lease agreements, lease amendments and assignments of lease. There is recognition that certain existing and active agreements and amendments may not incorporate new policies, e.g. commencement of the lease on the 1" of the month or year. Those agreements and amendments will be addressed through subsequent agreements and/or amendments, if any. Contract Number: L011-09 1. Responsible Department/Division: Public Works 2. Contact Person and Title: Kevin Swinford Telephone Extension: 5613 3. Tenant (Customer) Name: U.S West Wireless, LLC (now Sprint United Management Company) 4. Tenant (Customer) Number: 69680 Lease Agreement Cover Sheet-Page 1 of 4 5. General Ledger Account Number: 41005550.56260 6. King County Tax Parcel Number: 172205-9184 (partial) 7. Address of Parcel: 11228 Southeast 2361h Place, Kent 8. Type of Lease: Lease Agreement - Commercial Property Rental ("Blue Boy" Cellular Phone Tower) 9. Council Authorization Date: None 10. Mayor Signature Date: July 20, 1998 SECTION 2 - LEASE DURATION AND IMPORTANT DATES: All lease agreements and amendments must reflect the lease start date, lease termination date and the duration of the lease. The lease agreement may also authorize the tenant to request an extension of the lease term, i.e. either "month to month" or for a defined period of time. The tenant must provide advanced written notice of the intent to exercise this lease option. A date certain lease start date must be established in the lease agreement and must be the first of the month. Commencement of certain leases may be predicated on certain actions by the tenant, e.g. installation of cellular tower equipment. In such instances, a reasonable fixed future date must be established in the lease agreement. 11. Lease Start Date: July 1, 1998 12. Tenant Lease Option Renewal Notification Due Date: 90 calendar days prior to expiration of current term 13. Lease Termination Date: June 30, 2003 14. Lease Duration: July 1, 1998 through June 30, 2003. Three additional five year option periods SECTION 3 - RENT DETERMINATION AND DUE DATE: Lease agreement must include provisions establishing the stated rent and, if over one year in length, modification of stated rent. Typically, rental increases are based on changes in the Consumer Price Index. Example of possible contract language: Effective as of each anniversary of the Commencement date (the "Adjustment Date") by an amount equal to the greater of four (4) percent or the percentage Increase in the CPI two (2) months prior to the Adjustment Date and the CPI for the month 12 months prior to the Adjustment Date. "CPI" means the Consumer Price Index - All Urban Consumers (Seattle-Tacoma-Bremerton, WA), All Items, base period 1982-84=100, Not Seasonally Adjusted, issued by the U.S. Bureau of Labor Statistics. If the CPI is converted to a different standard reference base, or otherwise revised, the adjustment set forth in this paragraph shall be made with the use of the conversion formula published by the U.S. Bureau of Labor Statistics. Lease Agreement Cover Sheet-Page 2 of 4 15. Rent: $12,000.00/year (excludes leasehold excise tax) 16. Rent Due Date: July 1 17. Calculation of Rental Increase(s): Greater of 5% or the percentage increase in the CPI for the month 12 months prior to the adjustment date. "CPI" means the Consumer Price Index for All Urban Customers, U.S. City Average, All Items, issued by the Bureau of Labor Statistics for the United States Department of Labor (1982-84 = 100). SECTION 4 — LEASEHOLD EXCISE TAX: Leasehold excise tax applies to the possession and use of publicly owned real property by a private sector individual, business or other organization. This tax is calculated based on 12.84 percent of the contract rent amount. See also Department of Revenue Leasehold Excise Tax Frequently Asked Questions and Answers (http://dor.wa.gov/docs/Pubs/IndustSpecific/Leasehold.pdf). Contact the Customer Services Financial Analyst (LIDS/Receivables) or the Audit Manager regarding questions in this area. 18. Is this lease subject to leasehold excise taxes? ® YES (go to Question 19) ❑ NO, reason: 19. Are leasehold excise taxes for this tenant centrally assessed, i.e. directly collected from the tenant by the Washington State Department of Revenue? ® YES (attach written verification received directly from DOR or indirectly through the tenant, e.g. DOR notification letter) ❑ NO (go to Question 20) 20. Does Lease Rent include Leasehold Excise Tax? (Leasehold taxes must be broken out on the invoice and coded: Business unit.32500.0303) ❑ YES Calculate the leasehold excise tax (Stated Rent divided by 1.1284) ❑ NO Calculate the leasehold excise tax (Stated Rent times .1284) SECTION 5 — APPLICABLITY OF UTLITIES: The Lease agreement must include provisions establishing responsibility for payment of utilities, including but not limited to electricity, natural gas, water, sewer, storm drainage, and garbage collection and disposal services. In certain instances, the utility service may not be applicable, e.g. septic system, or may not be provided by the City, e.g. Highline Water District service area. In all instances, City utilities will be billed through the Customer Services utility billing system. Other utilities paid by the City on behalf of the tenant, e.g. electricity or Lease Agreement Cover Sheet—Page 3 of 4 natural gas, will be invoiced to the tenant through the central accounts receivable system (JD Edwards). Electricity or natural gas charges may be established based on actual consumption, e.g. usage of a meter or by a reasonable amount established through appropriate financial analysis. Separate meters for measurement should not be established on City-owned or leased properties. The dollar amount of electric and natural gas charges must be included in the lease agreement (amendment) and should be subject to future modification based on appropriate methodologies, e.g. change in rate, etc. Contact Finance Customer Services for questions in this area, as well as ensuring that City accounts are transferred into the name of the tenant. 21. Applicability of Utilities — Check all that utilities that are affected and indicate provider (e.g. City of Kent), Account Number or basis of exclusion. ❑ Does Not Apply ❑ Water: No services ❑ Sewer: No services ® Drainage: Paid by City ❑ Garbage: No services ® Electricity/Natural Gas: Puget Sound Energy Ensure that Finance Customer Services is properly notified to ensure City utility account, if any, is recorded into the name of the tenant if so established in the Agreement. Ensure all other applicable charges are properly invoiced to the tenant. SECTION 6 — MONETARY PENALTIES AND LATE INTEREST CHARGES: Lease agreement should contain provisions establishing penalties and must contain provisions establishing late interest charges. Late interest (also referred to as "finance charges") should be consistent with Chapter 3.10 of the Kent City Code, i.e. currently 1% of the amount of the unpaid balance or $2.00, whichever is greater, if not paid within 30 days from the due date. 22. Monetary Penalties: 5% of the late payment not paid within 20 calendar days of when due (July 1) 23. Late Interest: 2% per month on the amount outstanding if not when due (July 1) SECTION 7 — OTHER LEASE CONSIDERATIONS: Section 24 of the Lease Agreement establishes a rental rate of two times the rents specified (prorated on a monthly basis) for any holding over period after the expiration of the lease term. Lease Agreement Cover Sheet—Page 4 of 4