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8850 SW State Hwy 3, Bremerton, WA 98312 | 360.674.2381 | www.portofbremert

BOARD OF COMMISSIONERS

REGULAR BUSINESS MEETING

A G E N D A

July 22, 2014 Bill Mahan Conf

6:00 PM Port Administ

Bremerton Natl Airport T

8850 SW State Hwy

Call to Order

Pledge of Allegiance

Presidents Report

Approval of Agenda

Consent Items

All matters listed under Consent Items have been distributed to each member of th

Commission for reading and study, are considered to be routine, and will be enactemotion of the Commission with no separate discussion. If separate discussion is de

item may be removed from the Consent Items and placed under Action Items by re

A. Minutes of the regular business meetingand executive sessionof July 8, 2014.B. Payment of checks #1012466 through #1012496 and #69995 through #70002 a

through #70085 from the General Fund for $227,158.29; #70003 through #700

Construction Fund for $58,468.13 and the payment of payroll taxes for $15,998C. Fund Transfer Resolutions:

Resolution 2014-28 monthly transfer to the General Fund: $20,846.84 fromFund; $178,978.31 from the Harbor Fund; $15,988.41 from the Airport-Ind

Development Fund.

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Agenda for July 22, 2014Page 2

2. Kitsap Aerospace & Defense Alliance (KADA) Report on the Farnborough InAirshow John Powers and Tim Thomson, KADA Co-Chairs

Work Study Session

Citizen Comments: Open to the public for comment on subjects not listed on the agenda. Spasked to keep their comments to less than 3 minutes. A Commissioner m

waive the 3 minute time limit. Please feel free to submit further comme

the Clerk of the Board.

Action Items

1. Aviation Land Lease Termination with H.D. Lent Jr.2. Aviation Land Lease Agreement with Collins Investments, LLC3. Grant of Easement and Department of Natural Resources (DNR) Lease

Acknowledgement with NW Commnet, LLC

New Business

Staff Reports

Commission Reports

Executive Session (if necessary)

Adjournment

Regular business and other meetings that may be attended by members of

Date Time Meeting

7/22 9 am Kitsap Regional Coordinating Council (KRCC) Executive Boar

7/22 12:30 pm *Kitsap Aerospace & Defense Alliance Steering Committee7/22 6 pm *Commission Business Meeting Bill Mahan Conference Roo

7/24 10 am Puget Sound Regional Council (PSRC) Executive Board

7/27-29 *Washington Public Ports Assn (WPPA) Commissioners Semi

8/12 6 pm *Commission Business Meeting Bill Mahan Conference Roo

M i bj h ll i

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REGULAR BUSINESS MEETING

M I N U T E S

July 8, 2014 Bill Mahan Conf

6:00 PM Port AdministBremerton Natl Airport T

8850 SW State Hwy

Call to Order

President Zabinski called the meeting to order at 6:00 p.m. and led the Pledge of Al

Commissioners and Staff Present

Commissioners

Roger Zabinski

Axel Strakeljahn

Larry Stokes

Staff Members

Jim Rothlin

Becky Swanson

Jim Ryan, Atty

Kathy Garcia

Lamarr Wright

Ginger Waye

Approval of Agenda

It was moved by STRAKELJAHN, seconded by STOKES to:

Approve the Agenda as presented.

MOTION CARRIES, 3-0

Consent Items

A. Minutes of the regular business meeting of June 24, 2014 and special meetiJune 30, 2014.

B. Payment of checks #1012434 through #1012465 and #69916 through #6992#69933 through #69994 from the General Fund for $366,640.99; #69925 t#69932 from the Construction Fund for $99,075.02 and the payment of pay$16,385.09.

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Information Items

1. Kitsap Poggie Club Norm Reinhardt, Chief PoggieUsing a slideshow presentation, Mr. Reinhardt explained what a poggie is

club is a nonprofit organization promoting fishing, crabbing and other fa

activities. He provided a history of the Kitsap Poggie Club describing

facilities and organizations they have helped and explaining what the club

coordinating kid and handicap events, organizing fishing derbies, providi

being government liaison, and sitting on state salmon advisory boards and

He discussed their support of the Ports Evergreen Boat Ramp Renovatioother local projects that improve the publics access to marine waters

thanked Mr. Reinhardt for his presentation and support and discussed

complexities of potential projects at Chico and Misery Point Boat Ramps.

Work Study Session

1. Bremerton Marina Parking Lot ReconfigurationCEO Jim Rothlin provided a history on purchasing the property at 2nd and

in downtown Bremerton which was to create enough feasible parking for th

Marina with a goal to develop, or sell for development, the remaining p

property currently holds a parking lot for both tenant and paid parking. As s

marina, a bigger need exists for more dedicated tenant parking spaces

together a design to create more parking in the lot. Mr. Rothlin provided

slideshow that outlined the reconfiguration, detailed the reasoning behin

that includes new fencing, and discussed the financial implications.

There was full discussion between the Board and staff on configura

including installing a gate on the fence to allow for flex parking.

The Board suggested proceeding with the gate option on the fence to a

parking during off-peak times in the upper and side lots leaving the lower p

Street as marina tenant parking only and requested vehicle counts cotracked.

Citizen Comments

Clarke Coulter

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Roger Gay, South Kitsap resident

Communicated that word is getting out about the two marinas; he talkedfrom Chehalis who love Kitsap County, the improvements in Port Orchamarinas. They expounded that they are spreading the word about how good

are to their fellow boaters.

Action Items- None

New Business - None

Staff Reports

Kathy Garcia, Marina Operations Manager

Reminded the Board and audience of the 25thanniversary Chris Craft Rendheld at Port Orchard Marina this upcoming weekend. She invited the Com

attend the Rendezvous awards dinner Saturday night and suggested the

earlier in the day and pick their favorite boat for an award.

Ginger Waye, Executive Assistant

Provided a status report on the VoIP (voice over internet protocol) pinstallation project that was budgeted for 2014. The anticipated deploymen

new system is July 22.

Jim Rothlin, Chief Executive Officer

Confirmed the Harper Beach cleanup being held as mitigation for thereconstruction project is scheduled for Saturday, July 12, 8:00 a.m. to Noon Provided an update on the Evergreen Boat Ramp Renovation Project gran

process.

Commission Reports

Commissioner Zabinski

Reported on a number of recent Puget Sound Regional Council meetings he Will be attending other marketing-related meetings in the near future.

Commissioner Strakeljahn

Puget Sound Regional Council recently voted unanimously to issue funds fSKIA Connector Road Phase 2 1 Approximately $2 1M will be coming th

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At 8:20 p.m. President Zabinski reconvened the regular meeting.

Adjournment

There being no further business before the Board, the meeting was adjourned at

Submitted, Approved,

Jim Rothlin Larry Stokes

Chief Executive Officer Commission Secretary

July 17, 2014 July 22, 2014

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EXECUTIVE SESSION

M I N U T E S

July 8, 2014

8:00 PM Port AdministBremerton Natl Airport T

8850 SW State Hwy

Call to Order

President Zabinski called the executive session to order at 8:00 p.m., July 8

Commissioners and Staff Present

Commissioners

Roger Zabinski

Axel Strakeljahn

Larry Stokes

Staff Members

Jim Rothlin

Fred Salisbury

Jim Ryan, Atty

Item #1: Real estate issues were discussed [RCW 42.30.110(1)(c)].

With no further business to come before the Board, the meeting was ad

regular session at 8:20 p.m.

Submitted, Approved,

Jim Rothlin Larry Stokes

Chief Executive Officer Commission Secretary

July 17 2014 July 22 2014

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PORT OF BREMERTON

KITSAP COUNTY, WASHINGTON

RESOLUTION NO. 2014-28

DATED: July 22, 2014

A RESOLUTIONof the Board of Commissioners, Port of Bremerton, prothe transfer of monies to replenish the General Fund for warrants issued to coverelated to other funds during the month.

WHEREAS, all non-construction warrants were issued from the General

WHEREAS, some of the expenses covered by the warrants related to otand

WHEREAS, the General Fund should be replenished for the monies relafund expenses.

NOW, THEREFORE BE IT RESOLVEDby the Board of CommissionersBremerton that the Port Treasurer transfer monies between Port funds as follow

1. Transfer $20,846.84 from the Airport Fund to the General Fund.

2. Transfer $178,978.31 from the Harbor Fund to the General Fund

3. Transfer $15,988.41 from the Airport-Industrial Development FunGeneral Fund.

ADOPTEDby the Board of Commissioners of the Port of Bremerton at tpublic meeting thereof held this 22ndday of July, 2014,and duly authenticated session by the signatures of the Commissioners voting in favor thereof and the Commission.

Commission President

Commission Vice President

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PORT OF BREMERTON

KITSAP COUNTY, WASHINGTON

RESOLUTION NO. 2014-29

DATED: July 22, 2014

A RESOLUTIONof the Board of Commissioners, Port of Bremerton, for the transfer of monies from the General Fund to the Construction Fund.

WHEREAS, there exists additional monies in the General Fund, and

WHEREAS, there is a need for additional monies in the Construction

NOW, THEREFORE BE IT RESOLVEDby the Board of CommissionBremerton, that the Port Treasurer transfer monies between Port funds as fo

1. Transfer $43,583.69 from the General Fund to the Constructio

ADOPTEDby the Board of Commissioners of the Port of Bremerton aregular public meeting thereof held this 22ndday of July, 2014, and duly authopen session by the signatures of the Commissioners voting in favor thereofSeal of the Commission.

Commission President

Commission Vice-President

ATTEST:

Commission Secretary

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AAGGEENNDDAASSUUMMMMAARRYY

Agenda Item No: Action Item #1

Subject: Doug Lent Lease Termination

Exhibits: Termination of Lease

Prepared By: Fred Salisbury, Director, Airport & Industrial OperationsMeeting Date: July 22, 2014

Summary:

Doug Lent (Lessee) has had a ground lease of approximately 0.96 acres a

National airport since February 9, 1977. The Lessee has a sale pending on his

the purchaser desires to obtain a new lease from the Port. The lease, as

terminated effective July 31, 2014; however, this termination shall be effectivwhen the sale of the building on the lease premises is closed and the Port is del

fully executed lease instrument by the new building owner. If such buildin

closed or such new fully executed lease is not delivered to the Port, then the le

the Port and Lessee, as amended, is not terminated and remains in full force an

lease is financially current through the end of July 2014. The Port Attorney

and approved the termination document.

Fiscal Impact:

None

Recommendation:

Staff recommends approval of the Doug Lent lease termination.

Motion for Consideration:

Move to approve the termination of the Doug Lent Lease.

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AAGGEENNDDAASSUUMMMMAARRYY


Subject: Ground Lease Collins Investment, LLC

Exhibits: Collins Investments, LLC Lease Agreement

Prepared By: Fred Salisbury, Director, Airport & Industrial OperationsMeeting Date: July 22, 2014

Summary:

Roger Collins, Manager of Collins Investments, LLC is purchasing the Doug L

and desires a new lease with the Port of Bremerton in lieu of assuming the Dou

Mr. Collins has purchased the hangar for use of his personal and corporate a

also the Chief Executive Officer of the Sierras Construction Company, Inc. Thincorporates the identical 0.96 acre parcel previously leased by Doug Len

provides for construction of a new/additional hangar, within the leased premis

on the future needs of the Lessee. The Port will conduct a Phase 1 enviro

assessment to identify recognized environmental conditions in connection with

and current uses of the leased premise. This is a 30 year lease with two 10 year

monthly rent is $960.00 per month (based 0n $12K/acre/year) with CPI adjus

recommends a three month security deposit of $2,880. The Port Attorney has rapproved the lease documents.

Fiscal Impact:

Lease income of $11,520/year

Recommendation:Recommend approval of the three month security deposit of $2,880 and

Investments, LLC lease agreement.


h h h i d i i h f $

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TABLE OF CONTENTSCOLLINS INVESTMENTS LLC

LEASE AGREEMENT1. PREMISES ....................................................................................................................2. TERM ............................................................................................................................

2A. INITIAL TERM ..............................................................................................................2B. OPTION ......................................................................................................................2C. POSSESSION ..............................................................................................................

3. RENTAL ........................................................................................................................3A. BASE RENT ................................................................................................................3B. ADDITIONAL RENT .......................................................................................................3C. LATE PAYMENTS .........................................................................................................

4. RENTAL ADJUSTMENTS ............................................................................................4A. PERIODICADJUSTMENT ..............................................................................................4B. ARBITRATION ..............................................................................................................

5. USE OF THE PREMISES .............................................................................................6. OBLIGATIONS OF LESSEE ........................................................................................

6A. EXPENSES ..................................................................................................................6B. MAINTENANCE ............................................................................................................6C. RUBBISH ....................................................................................................................6D. USE OF UTILITIES ........................................................................................................6E. DAMAGE .....................................................................................................................6F. NUISANCE ..................................................................................................................6G. EXCLUSIVE RIGHTS .....................................................................................................6H. USE OF FACILITIES ......................................................................................................6I. RIGHT OF INGRESS/EGRESS ........................................................................................6J. SEWAGE.......................................................................................................................

7. IMPROVEMENTS/ALTERATIONS ..............................................................................7A. APPROVAL OF PLANS ..................................................................................................7B. PERMITS ....................................................................................................................7C. CONSTRUCTION ..........................................................................................................7D. FIXTURES ...................................................................................................................7E. LIENS .........................................................................................................................

8. SIGNS ...........................................................................................................................9. AIRSPACE .....................................................................................................................10. FIRE PROTECTION ......................................................................................................11. STORMWATER REQUIREMENTS ..............................................................................

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13D. NOTIFICATION ..............................................................................................................13E. ENVIRONMENTALASSESSMENT ....................................................................................13F. INDEMNIFICATION AND HOLD HARMLESS .......................................................................13G. DEFAULT .....................................................................................................................13H. RIGHTS AND REMEDIES ................................................................................................

14. RIGHTS RESERVED FOR PORT ................................................................................14A. USE OF FACILITIES.......................................................................................................14B. ENTRY ........................................................................................................................14C. NO IMPROVEMENTS .....................................................................................................14D. PERFORMAGREEMENTS ..............................................................................................14E. AIR OPERATIONS IMPROVEMENT ..................................................................................14F. TEMPORARY CLOSURE.................................................................................................14G. RIGHT TO MAINTAIN .....................................................................................................14H. PROTECTION OFAERIALAPPROACHES .........................................................................14I. RULES AND REGULATIONS.............................................................................................14J. HIGHERAUTHORITY .....................................................................................................14K. CONDEMNATION ..........................................................................................................

15. DEFAULT AND TERMINATION ....................................................................................15A. PAYMENT DEFAULT......................................................................................................15B. FAILURE TO PERFORM .................................................................................................15C. ABANDONMENT...........................................................................................................15D. INSOLVENCY ................................................................................................................15E. ASSIGNMENT ...............................................................................................................

16. LEASEHOLD IMPROVEMENTS AT TERMINATION ..................................................17. DESTRUCTION OF IMPROVEMENTS ........................................................................18. ASSIGNMENT, SUBLETTING AND USE BY OTHERS ...............................................19. HOLD HARMLESS/INDEMNIFICATION .......................................................................20. INSURANCE ..................................................................................................................

20A. LIABILITY INSURANCE ...................................................................................................20B. PROPERTY INSURANCE ................................................................................................20C. POLICY REQUIREMENTS ...............................................................................................20D. RELEASE AND WAIVER .................................................................................................

21. NONDISCRIMINATION .................................................................................................22. REQUIREMENTS OF THE UNITED STATES .............................................................23. NOTICE ..........................................................................................................................24. SECURITY .....................................................................................................................25. MISCELLANEOUS ........................................................................................................

25A. CAPTIONS ...................................................................................................................25B JOINT AND SEVERAL LIABILITY; BINDING EFFECT

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25H. HOLDING OVER ...........................................................................................................25I. SEVERABILITY.............................................................................................................25J. ENTIRETY ....................................................................................................................25K. NO RECORDATION;MEMORANDUM ...............................................................................25L. SUBMISSION OF LEASE FORM NOT AN OFFER ...............................................................

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PORT OF BREMERTONCOLLINS INVESTMENTS LLC

LEASE AGREEMENT

THIS AGREEMENT is made and entered into as of the ______________, _____, by and between the PORT OF BREMERTON, corporation organized under the laws of the State of Washington (hereinand COLLINS INVESTMENTS, LLC, a Washington State Limited Liabili(hereinafter "Lessee").

WITNESSETH:

WHEREAS, the Port represents that it is the owner and operator oNational Airport and has the right to enter into this lease; and

WHEREAS, the Port desires to lease certain premises to Lessee lothe Bremerton National Airport and Lessee desires to lease from the Port th

all upon the terms, conditions, and provisions set forth below.

NOW, THEREFORE, in consideration of the mutual covenants anherein, the parties agree as follows:

1. PREMISES

The said premises subject matter of this Lease is described in Exhibit "hereto and made a part hereof (hereinafter "Premises"). The Premises cons

Square Feet (0.96 acres) (the former Doug Lent, Inc Lease) more or legraphically depicted for illustrative purposes on the diagram attached heret"B" and made a part hereof. As used herein, the term "Premises" includproperty and improvements now existing or hereafter constructed or instproperty. Lessee has examined the Premises and accepts the same in tcondition, "as is".

2. TERM

2A. Initial Term

The Port leases the Premises to Lessee and Lessee leases the Prthe Port for a term of 30 years commencing on the 1st day of A(Effective Date), and terminating on the 31st day of July, 2044, unt i t d id d i thi L

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rent, for Two (2) successive terms of Ten (10) years each, upon notice thereof to the Port prior to 180 days of the expiration of this L

extended term hereof.2C. Possession

Lessee is entitled to possession of the Premises as of the Effective D

3. RENTAL

3A. Base Rent

Lessee shall pay the Port as Base Rent rental in the amount of month, in advance, commencing on the 1st day of August, 201$12,000 per acre per year), and adjusted as hereinafter provided. that Lessee occupies the premises prior to the Term date, Lessee aa pro-rata rate of $32.00 per day for the days occupied.

3B. Additional Rent

As additional rent, Lessee shall pay any applicable leasehold tax ataxes or assessments, general or special, or fees in lieu thereof, inwith the Premises, tie-downs or any improvements on the Premises.

3C. Late Payments

In the event any rental payment is not made within ten (10) days of Lessee shall also pay the Port a late payment charge in the amount oeach such delinquent rental payment, together with interest on th

total at the rate of eighteen percent (18%) per annum until the decured. The acceptance of rent by the Port for any period or portions default by the Lessee shall not constitute a waiver of the default unlso notifies Lessee in writing. The Lessee agrees that the Port shallagainst all assets of the Lessee located on the Premises or used inwith the Lessees occupation of the Premises for all rents, charges, fees payable under this Lease, and the Lessee further agrees tharemove any of said assets from its locations until all such charge

payable under this Lease are paid in full.

4. RENTAL ADJUSTMENTS

The Base Rent shall be adjusted in accordance with the terms of this Sectioupon which the Base Rent is to be adjusted is referred to as an Adjustmthis Lease

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Date) commencing on the first day of August, 2015 and appliedthereafter. The adjustment shall be equal to the increase, if any,

June Consumer Price Index (CPI-U), all items, Seattle, Tacoma, Bremas published by the U.S. Department of Labor. In no event shall theever decrease from one year to the next. However, if the CPI-U deca given year and then increases the following year the aggregate oadjustments, if positive, shall be used to increase the Base Rent. Eveduring the term of this lease or at the beginning of any extended terrates and other charges due hereunder shall be renegotiated by the to the expiration of the applicable period.

4B. Arbitration

If the parties cannot mutually agree upon the rental and charges payPremises at any such renegotiation interval for the ensuing period, tthe parties shall appoint one (1) arbitrator. If the two (2) arbitrators cupon the rental rates and charges at issue within thirty (30) days afteto such arbitration panel, they shall appoint a third arbitrator. Tpayable fixed by any two (2) such arbitrators shall be the amounts to

said Premises for the ensuing ten year period. The decision of thshall be reduced in writing and delivered to each party within thirty submission of the issue to the arbitration panel for determination.

(1) In determining the rate issue under consideration, thshall endeavor to determine and base their decision upon a fair marlike and similar rates and practices for properties of similar uses, wprimarily found in Kitsap County, or if sufficient data is not available

then from properties and practices found in Pierce County, if any.

(2) The fees of the respective arbitrators shall be paid by thselected the same, and if a third arbitrator is employed, his fees shaequally between the parties and paid accordingly.

(3) These renegotiations shall be commenced and compthe last six (6) months of each specified ten year interval as set forth event shall the rate be less than in the immediately preceding periorate resulting from the first such renegotiation shall be effective on ththe succeeding period. The new rate shall be applied retroactbeginning of the new period if not determined prior to the end of tperiod. During any extended renegotiation period, the Lessee sh

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5. USE OF THE PREMISES

Lessee shall use the Premises for the following purpose(s): For personal a

aircraft storage, operations, maintenance and servicing of personal anaircraft; aircraft hangar and tie-down; office and administration; outside service uses related or ancillary to other uses compatible to the primary usabove. Such use is to be approved by the Port, which approval sunreasonably withheld. Outside storage of Recreational Vehicles (RV) or trailers is not approved..Lessee shall not use the Premises for any othwithout the prior written consent of the Port. The Lessee shall observecomply with any and all applicable federal, state or local laws, rules or reg

affect the Premises, as well as all of the Port's rules regulations and minimuapplicable to Bremerton National Airport as they are now formulated, or as re-formulated in the future. Lessee shall not allow any illegal or unlawful actPremises. Nothing herein shall be deemed or construed to grant Lessee aright or interest to conduct the type of business or activity permitted hereund

6. OBLIGATIONS OF LESSEE

During the term of this Lease or any extensions thereof, the Lessee shall:6A. Expenses

Pay all costs and expenses associated and in connection with thePremises and the rights and privileges herein granted, including, buto, leasehold and other taxes, permit fees, license fees, and alawfully levied or assessed upon the Premises or the improvementproperty on the Premises. The Lessee may, however, at its sole e

cost, contest any tax, fee, or assessment, but shall in no event allow become a lien on the Premises.

6B. Maintenance

Keep and maintain the Premises in neat, clean, sanitary and safe crepair. Upon written notice by the Port to the Lessee, the Lessrequired to perform whatever maintenance and repair the Port deemsrequired. If the maintenance and repair is not undertaken within te

after receipt of written notice, the Port shall have the right to entPremises and perform such maintenance and repair, the cost of whcharged to and borne by the Lessee. Said amount(s) shall be paid byas an additional rent on the next due date after receipt of noticamount(s) thereof.

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6D. Use of Utili ties

Properly use and operate all electrical, gas, heating, plumbing, and o

and appliances that are or may be available for use by the Lessee.

6E. Damage

Not intentionally or negligently destroy, deface, damage, impair, or reof the Premises, its appurtenances, facilities, equipment, furniture,appliances, or fixtures, nor permit any person, whether family, inviteor otherwise, acting under control of the Lessee to do so.

6F. NuisanceNot permit any nuisance or common waste on the Premises.

6G. Exclusive Rights

It is not the intent of this Agreement to grant to the Lessee the excluprovide any or all of the services described in this document at anythe term of this Agreement. The Port reserves the right, at its sole dgrant to others certain rights and privileges upon the Airport whidentical or similar, in part or in whole, to those granted to the Lessherein contained shall be construed to grant or authorize the graexclusive right within the meaning of Section 308 of the Federal A1958 or any other provision of law.

6H. Use of Facilit ies

The Lessee shall be entitled, in common with others so authorized, t

all facilities and improvements of a public nature which now are or mbe connected with or appurtenant to the Airport, including the usareas, runways, taxiways, navigational aids, terminal facilities, parking areas designated by the Port, all upon such rules, reguminimum standards as may be established by the Port from thereafter.

6I. Right of Ingress/Egress

The Lessee shall have the reasonable right to ingress and egress to Premises and to the public areas of the Airport in the carrying on of thas herein provided for; subject, however, to such rules, regulations astandards pertaining to the use and operation of the Airport established by the Port from time to time hereafter, which right shall eLessee's guests and invitees Said right shall be exercised so as not

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6J. Sewage

Lessee will allow only domestic wastewater into the Ports sew

Domestic Wastewater means water carrying human waste, incluand bath wastes from industrial buildings. Industrial Wastes, wwater or liquid carrying wastes from any industrial, trade or businessactivity, are not allowed into the Ports sewage system.

7. IMPROVEMENTS/ALTERATIONS

As part of the consideration for the privileges herein granted, the Lesseconsider, dependent on future need of Lessee, the construction of a ne

hangar on the lease property, or otherwise make improvements to the Presole cost and expense, except those which may be otherwise agreed to in wPort.

7A. Approval of Plans

Lessee agrees that it shall submit to the Port for approval, detailespecifications for any proposed leasehold improvements at least thirprior to taking steps toward commencement of any proposed constearth movement, material acquisitions or permit applications).In ththe Port requires revisions of the plans and specifications, it shaLessee in writing which details such revisions and the Lessee shathirty (30) calendar days from the date of receipt of the Port's resubmit the plans and specifications for the Port's approval.

7B. Permits

The Lessee agrees that it shall secure all permits required in connectconstruction and improvements and pay the required fees therefore. agrees that all construction, improvements, and maintenance shall conformance with the provisions of all applicable laws, rules, regulations. It is further agreed that all leasehold improvements shacondition so as to meet the requirements of applicable Uniform BuildCodes at all times.

7C. ConstructionUpon receiving all necessary approvals of its plans and specifiLessee shall engage one or more qualified contractors to coimprovements. Construction shall commence within ninety (90) calethe Lessee's receipt of the Port's final approval of the plans and sand receipt of applicable permits and shall be scheduled for comple

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7D. Fixtures

The Lessee shall have the right to install, at its own expense, trade

equipment normal for its activities and the right (subject to any other this Lease) to remove the same at the expiration of this Leasehowever, that the Lessee shall pay for all damages suffered by the such removal.

7E. Liens

The Lessee shall have no authority, expressed or implied, to createsaid Premises without the receipt of prior written approval of the Po

hold harmless, defend and indemnify the Port from any loss or claim reason of any such lien. Lessee shall cause any such lien to be rethe Premises. If any such lien is not removed or satisfied by the Lethirty (30) days after written notice thereof by the Port, the Port maobligated to, take such steps as it may deem reasonably required tolien to be removed, including but not limited to payment of the amountherefor, and the Lessee shall, upon receipt of notice, reimburse thesums it may have paid to cause said lien to be removed plus interes

the rate of twelve percent (12%) per annum from the date of the Pountil reimbursed in full by Lessee.

8. SIGNS

Lessee shall have the right, at its own expense, to place in or on the Premissigns identifying the Lessee. Said sign or signs shall be of a size, shape, and at a location or locations, approved by the Port in writing and in confo

any overall directional graphics or sign program, codes, rules or regulationsby the Port or any other governmental entity having jurisdiction over thincluding, but not limited to, City of Bremerton. Said sign or signs shpresentable and in good repair. Notwithstanding any other provision of thissign or signs shall remain the property of the Lessee. The Lessee shall reexpense, all lettering, signs, and placards so erected on the Premises at thof the term of this Lease. If the Lessee violates this provision, the Port maysign or signs without any liability, and may charge the expense incurr

removal to the Lessee, which expense Lessee shall pay within ten (10) daof notice thereof. Provided, however, that the Port shall give the Lessee writthe Lessee's violation of this provision, and Lessee shall have forty-eighafter receiving said notice to comply before the Port removes said sign(s).

9 AIRSPACE

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or designed for navigation of or flight in the air), by whomsoever owned and all air space above the surface of the Premises to an infinite height.

In addition, this easement grants the right to cause in all airspace above tsuch noise, vibrations, fumes, dust, fuel particles, and all other effects tcaused by the current or future operation of aircraft landings at, or takingoperating at or on the Bremerton National Airport. The Lessee does herebyremise, and release any right or cause of action which they may now have omay have in the future against the Port, its successors and assigns, due tovibrations, fumes, dust, fuel particles, and all other effects that may be ca

operation of such aircraft.

In addition, this easement includes the continuing right of the Port to erection of or growth upon the Premises of any building, structure, tree, or extending into the air space which would constitute an obstruction to said accordance with Federal Air Regulation Part 77 (or its successor lregulation).The Lessee for themselves, their heirs, personal repsuccessors, and permitted assigns, do hereby agree that for and during th

Lease they will not erect, permit the erection of, or permit or suffer to remaPremises any building, structure, tree or other object extending into such addition, Lessee agrees that it shall not use, permit or suffer the use of the such a manner as to create electrical or other interference with radio combetween any installation upon the Bremerton National Airport and aircraft, odifficult for flyers to distinguish between airport lights and others, or as to imin the vicinity of the airport, or to endanger the landing, taking off or maaircraft.

10. FIRE PROTECTION

Lessee understands and agrees that Port provides for fire protection seAirport through an interlocal agreement with a local volunteer fire district. Leunderstands and agrees that Port has no duty under this Lease to provide fifor Lessees buildings, property or equipment located on or upon the Preagreed that fire protection services shall be provided to the Premises

volunteer fire district, and Lessee agrees to pay any service charges timposed by said fire district. Lessee understands that it is the Lessees rand duty to include the value of its buildings; property and equipment toCounty authorities for personal property tax purposes through which fire discharges are paid. Failure of Lessee to list accurately its improvements orpay its fire district service charges when due shall be breach of this Lease

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11. STORMWATER REQUIREMENTS

Lessee agrees that storm water it allows to discharge from any modifica

existing site, and/or new construction on the Premises shall, at Lessee's expdirected and contained so as to comply with the Federal National PollutanElimination (NPDES) program, State Department of Ecology requiimplemented on behalf of the federal Environmental Protection Agesuccessor agency(s) or department(s), and City of Bremerton requiremwater facilities required by City of Bremerton drainage ordinances shall be imaintained by the Lessee. Such facilities shall not be altered, damaged without prior written agreement with the Port and City of Bremerton. Less

before delinquency any and all federal, state or local storm water drainageor assessments attributable to the Premises.

The Lessee will be allowed to connect to the Ports regional stormwatfacility. Lessee will treat quality of stormwater runoff through means acapplicable governmental authorities (e.g. bio-swale, etc).Low Impact Dfeatures are encouraged to treat roof and impervious surface water run-off.

12. UTILITIESThe Lessee, at its own expense, shall provide for and make connections tthat it requires to serve the Premises. Any on-site utility improvementsPremises shall be the sole responsibility of Lessee, including, but not lidesign and construction costs. Lessee shall pay all charges for utilities aprovided to the Premises prior to delinquency.

13. HAZARDOUS SUBSTANCESAs used in this Lease, the term "Hazardous Substance" means any hazadangerous or extremely dangerous substance, material or waste, which is, regulated by the United States Government, the State of Washington, ogovernmental authority. The term includes, without limitation, any substancconstituents regulated as specified above. The term "release" shall beprovided in 42 U.S.C. 9601 and RCW 70.105D.020, as amended. In the eveexists between the two definitions, the broader definition shall apply. For

this Lease, the term release shall also include a threatened release. Duringthis Lease, or any extended term:

13A. Storage and Use, etc.

Lessee shall not use, store, treat, generate, sell or dispose of any

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13B. Compliance

The Lessee shall, at its sole cost and expense, comply with all law

ordinances, regulations, rules, and other governmental requirementhe proper and lawful generation, use, sale, transportation, storageand disposal of Hazardous Substances (hereinafter "Laws") on the in any manner that affects the Premises.

13C. Right of Entry

The Port or its designated agents may, at the Port's sole discrereasonable times, enter upon the Premises for the purpose of

Lessee's activities or conducting environmental testing and sdetermine compliance with applicable Laws and the terms of this Lemonitoring discloses the presence or release of Hazardous Suviolation of either applicable Laws or this Lease, the cost of such monbe paid by the Lessee. In addition, within five (5) days of the Prequest, the Lessee shall provide the Port with a detailed written dthe Lessee's generation, use, sale, transportation, storage, treadisposal of Hazardous Substances on the Premises or which ma

Premises or adjacent property. The Port's discretionary actions purparagraph shall not constitute a release, waiver or modification of tobligations otherwise specified in this Lease.

13D. Notification

The Lessee shall notify the Port within twenty-four (24) hours of anHazardous Substances that may affect the Premises or any adjacand shall promptly provide the Port with a copy of any notifications governmental entity regarding any such release. The Lessee shprovide the Port with copies of any inspection report, order, fine, reqor other correspondence from any governmental entity regarding thHazardous Substances that may affect the Premises or any adjaceThe Lessee shall provide the Port with a copy of all reports, manifsafety data sheets (MSDS), and identification numbers regardingSubstances at the same time they are submitted to the appropriate g

authorities.

13E. Environmental Assessment

The Lessee shall, upon written request from the Port, based on reason to believe there has been a release of Hazardous Substasixty (60) days following expiration or other termination of this Lease

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certify that diligent investigation of the Premises has revealed no evrelease of Hazardous Substances or violation of applicable Lawsrelease or violation of applicable Laws is detected, identify and detypes and levels of Hazardous Substances detected; (ii) the physicaof the release, including property other than the Premises; (iii) thepotential risks to the environment from such release or violation; procedures and actions necessary to remedy the release or compliance with applicable Laws. The Lessee shall pay the expensethe environmental assessment and of performing all remediation.

13F. Indemnification and Hold Harmless

The Lessee shall defend (with attorneys approved in writing by theapproval not unreasonably withheld), indemnify and hold thCommissioners, employees and agents and representatives harmleloss, claim, fine, or penalty arising from the release of Hazardous Suany violation of applicable Laws affecting the Premises caused in whby the Lessee. Such obligation shall include, but shall not beenvironmental response and remedial costs, other cleanup costs, en

consultants' fees, attorneys' fees, fines and penalties, laboratory tclaims by third parties and governmental authorities for death, persoproperty damage, business disruption, lost profits, natural resource dany other costs, and the Port's expenses incurred under the foregoinThe Lessee's obligation pursuant to this paragraph shall survive eother termination of this Lease. Lessee shall not be responsible fclaim, fine, or penalty arising from the release of Hazardous Substaviolation of applicable Laws affecting the Premises, caused in whole

any previous lessee, sub-lessee, tenant or user of the Premises Effective Date of this Lease. Within ninety (90) days of the lease efthe Port will conduct a Phase 1 Environmental Site Assessmenrecognized environmental conditions in connection with the previoususes of the lease premise.

13G. Default

Notwithstanding any other provision of this Lease, the Port may, in threlease of Hazardous Substances or a violation of applicable LLessee, its tenants, employees, agents or representatives, aPremises, elect to declare this Lease in default and terminate it. Sucthe Port, if made, shall be without prejudice to any other remedy proLease. Should the Port not elect to declare a default, it may cure an

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13H. Rights and Remedies

Notwithstanding any other provision of this Lease, and without prej

other such remedy, the Port, in the event of a release of Hazardous a violation of applicable Laws or a breach of this Lease, shall be erights and remedies provided by law or in equity, including, but not lfollowing, at the Port's option: Terminate this Lease immediately; recoall damages associated with the default, including but not limited to cland charges, civil and criminal penalties and fees, loss of business athe Port and other tenants, and any and all damages and claims assparties' and the Port's attorneys' fees and costs; or to renegotiate t

this Lease to recover any return on expenditures made by the Porinsure that the Premises and the use of such Premises comgovernmental rules, regulations and requirements. The Port, in pparticular remedy, shall not be deemed to have made an election of the exclusion of any other remedies available to it.

14. RIGHTS RESERVED FORPORT

During the term, or any extensions of this Lease, the Port shall:

14A. Use of Facilit ies

Have the perpetual right and privilege to construct and maintain foitself, its agents or tenants, underground pipe, cable, ducts, and othefacilities to serve other users and tenants, together with the right tothe Premises at any time with all necessary men, materials, and apthe purposes of constructing, inspecting, operating, repairing, and

the same.14B. Entry

Have the right to enter upon the Premises at any reasonable time for of making any inspection it may deem expedient to the proper enfany of the covenants or conditions of this Lease.

14C. No Improvements

Not be required to make any improvements or repairs of any kinPremises, except as may be specifically provided for in this Lease.

14D. Perform Agreements

Have the right to make any changes to and perform any construP i i d b t bli ti t hi h it i bj

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14E. Air Operations Improvement

The Port reserves the right to further develop or improve the air ope

of the Airport as it sees fit, regardless of the desires or opinion of the without interference or hindrance from the Lessee.

14F. Temporary Closure

The Port reserves the right to temporarily close the Airport or any of thereon for maintenance, improvement, or for the safety of the publicemergency closures or those beyond the Port's control, the Port wihours prior notice to the Lessee of such closure.

14G. Right to Maintain

The Port reserves the right, but not the obligation, to maintain and kethe Air Operation Area of the Airport and all publicly owned fac

Airport, together with the right to direct and control all activities of ththis regard.

14H. Protection of Aerial Approaches

The Port reserves the right to take any action it considers necessathe aerial approaches of the airport against obstruction, together withprevent the Lessee, its successors or assigns, from erecting or pererected any building, device, or structure on or adjacent to the Airpthe opinion of the Port, would limit the usefulness of the Airport, i

Airport operations, planning, development, constitute a hazard to any way place the Airport in a position of non-compliance with FAR PFederal Aviation Administration Regulations.

14I. Rules and Regulations

The Port reserves the right to promulgate reasonable rules and regthe use of runways, taxiways, ramps, streets, and parking areasconfines of Bremerton National Airport as it may deem appropriateinterests of the Port, Lessee and the general public. Lessee agreessuch rules and cooperate in the observance thereof.

14J. Higher Authori ty

The Port shall have the right to make any changes and perform any required by any agreement or obligation to which it is subject witgovernmental agency or agencies having jurisdiction thereon upon notice served upon the Lessee at least ninety (90) days in adva

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vest in the Port free and clear of any lien of claim of the Lessee or itsAll property of the Lessee which is located on the Premises, whefrom execution or not, shall be bound by and subject to a lien for theany amount(s) owing hereunder, and for any other damages aribreach by the Lessee of any portion of this Lease. Lessee agrees tmay take possession of said property, or any part or parts thereofcause the same to be sold at a public or private sale, without nohighest bidder for cash, and apply the proceeds of said sale towathereof and then toward the indebtedness or other damages. SuPort's lien rights set forth above, upon termination of this Lease, the L

at its sole cost and expense, remove all signs, trade fixtures, personal property, equipment, and materials from the Premises whichwas permitted to install or maintain under the rights granted herein. repair all damages caused by such removal. If the Lessee fails to thirty (30) days, then the Port may effect such removal or restorLessee's expense, and the Lessee agrees to pay to the Port supromptly upon receipt of a proper invoice therefor.

16. LEASEHOLD IMPROVEMENTS AT TERMINATIONExcept as may otherwise be specifically provided in Section 17belowimprovements upon the Premises shall become the property of the Port upoor termination of this Lease. Upon expiration of the term of this Lease sooner termination hereof pursuant to any of the provisions of this Lease, thtake and have title to all improvements then located upon the Premises,those improvements shall vest in the Port free and clear of any lien or claimor its successors. Lessee shall deliver any and all keys to the Premises upo

or termination of this Lease. Provided, however, that upon the expiration othis Lease or upon the sooner termination thereof, the Port shall be entitlspecific written request given sixty (60) days in advance in the case of expLease term, to have the Premises returned to it clear of all improvements, cgood condition, in which event, title to all of said improvements shall remainthe Lessee.

If the Port requests such removal, the Lessee shall complete the same withdays after the termination of this Lease. If the Lessee fails to so rimprovements within the specified time, they may be removed by the PLessee shall pay the Port the cost thereof upon demand.

If, in the reasonable opinion of the Port, the Premises are left in an unclean

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17. DESTRUCTION OF IMPROVEMENTS

In the event any improvements owned or constructed by the Lessee on t

are destroyed in whole or in part of fire, earthquake, wind, storm, floodaircraft collision, vehicle collision, smoke, vandalism or malicious mischief,shall restore the same to its original condition subject to the approval of the of Commissioners of any Plans and Specifications for such reconstrreconstruction shall be undertaken within sixty (60) days of the event whichin part necessitates reconstruction and diligently processed to completion;the said improvements on the Premises are totally destroyed or partially destroyed to the extent that the costs of reconstruction or restoration of

sixty percent (60%) of the full insurable value of the Premises, Lessee manotice to the Port within thirty (30) days of the occurrence of such destruction, elect not to reconstruct or restore the improvements and sdemolish the above ground structures then existing and restore the Premisestreet level surface (pursuant to applicable governmental regulations, insurance proceeds remaining shall be distributed to the Loss Payees as may appear and in lieu of further Lease obligations to the Port, whereas thisterminate as to the day on which demolition and debris removal shall

completed to the Port's satisfaction.

18. ASSIGNMENT, SUBLETTING AND USE BY OTHERS

Neither this Lease, nor any part hereof, may be assigned, transferred, rentby the Lessee by process or operation of law or in any other manner without the prior written consent of the Port. Such consent shall not be uwithheld. Copies of all proposed agreements between the Lessee and any

sublessee or other party relating in any way to the use of the Premises, swith the Port for review and consideration not less than thirty (30) days effective date of said documents. The Port reserves the right to require suadditional detailed information concerning such other party including, but nfinancial records and statements, business background and references.

Lessee will not permit any use or activity to be conducted upon the Premisnot conform to all applicable zoning and construction regulations. Lessee w

into any sublease or other tenancy agreement when the proposed use of trequires a Special Use Permit, rezone, variance of any kind, environmstatement, determination of non-significance, or any other use that requpermission by a governing body, without the prior written consent of the Port

The Port reserves the right to adopt a policy or policies which specially exc

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"Sublessee shall perform all covenants and conditions contained in the LAgreement between the Port and Lessee, except for the covenant relating

payment of rent. Sublessee also understands and agrees that the only aauthorized by this sublease document is that which is specifically addressthe Lease Agreement between Lessor and Lessee and no other activity."

The Port may withhold its consent to any assignment, sublease, other tenancy if the proposed transferee's use of the Premises may involve thestorage, use, treatment, or disposal of Hazardous Substances, as defined in

19. HOLD HARMLESS/INDEMNIFICATION

The Lessee covenants and agrees to hold harmless, defend and indemnifycommissioners, employees, agents and representatives from and against liability, damages, judgments, or claims therefor, which may arise fattributable to the Lessee's occupancy or use of the Premises or any facilities, whatsoever the nature, and whether authorized or unauthorized. shall defray the expenses, including reasonable attorney's fees and co

defense of any such claim, including but not limited to litigation in acompetent jurisdiction or any other dispute resolution process or procLessee also agrees that the Port, or its employees or agents, shall not be hany damage to property or persons caused by any defects now in said equipment, and hereafter occurring, and the Lessee shall defend, indemnithe Port harmless therefrom. The Port may, at its option, select the defensits choice in any such matters.

20. INSURANCE

20A. Liability Insurance

The Lessee shall obtain and keep in force during the term of Comprehensive General Liability insurance, extended to cover the Pthe Lessee's business operations in companies and in form to be athe Port. Coverage provided by the foregoing insurance policy evaluated in accordance with the time schedule established for renrental rates and shall include such areas of coverage as the reasonably required and appropriate to protect itself from claims of liaof the nature of Lessee's business operations and use of the Premise

20B. Property Insurance

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20C. Policy Requirements

All such policies shall:

(1) Name the Port as an Additional Insured and Loss Pathe Premises as a covered site.

(2) Apply as primary insurance irrespective of any insurancPort may carry.

(3) In the case of the Comprehensive General Liability po

be in an amount not less than $2,000,000 general aggregatefor single limit bodily injury/property damage. The policy shall similar coverage for site specific pollution for the Premises. shall be responsible for notifying the Port in the event that receives notice of cancellation of coverage. The Lessee shallnotice to the Port within 10 days of receiving notice of cancellainsurer. It will be considered a material breach of this Lease not notified and given the opportunity to place coverage a

appropriate. The Lessee will be responsible for any premiuthe Port incurs for replacing said coverage.

(4) A true copy of the insurance policy, including all of the afocoverage and endorsements, shall be provided to the Port uThe insurance carrier must annually provide the Port with a cproperly authenticated Certificate of Insurance as evidecoverage required herein, said Certificate to be subject to the

the Port.

20D. Release and Waiver

The Port and the Lessee herein hereby mutually release each other and waive all right of recovery against each other for any loss from pagainst under their respective property insurance contracts, for all pthereunder. Provided, that this paragraph shall be inapplicable if it the effect, but only to the extent that it would have the effect, of invainsurance coverage of the Port or the Lessee.

21. NONDISCRIMINATION

Notwithstanding any other or inconsistent provision of this Lease, durinhereof or any extended term the Lessee for itself its heirs personal rep

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discrimination in the use of the Premises or in the construction of any improover, or under the Premises, or the furnishing of services therein or thereon.

22. REQUIREMENTS OF THE UNITED STATESThis Agreement shall be subordinate to the provisions of any existinagreement between the Port and the United States or any proper agerelative to the operation or maintenance of the Airport, the execution of whior may be required as a condition precedent to the expenditure of federal fdevelopment of the Airport. During time of war or national emergency, thhave the right to lease the Airport or any part thereof to the United States

for military or naval use, and if any such lease is executed, the provisAgreement, insofar as they are inconsistent with the provisions of the government, shall be suspended.

23. NOTICE

Any notice given by one party to the other in connection with this Agreemewriting and shall be personally delivered or mailed. If mailed, it shall be smail, return receipt requested, with postage and certification fees prepaid:

If to the Port, addressed to: Port of Bremerton8850 SW State Hwy 3Bremerton, WA98312

If to the Lessee, addressed to: Collins Investments, LLC19900 144thAvenue NEWoodinville, WA 98072

Notice shall be deemed to have been received on the date of receipt as sreturn receipt or three (3) days after mailing, whichever first occurs.

24. SECURITY

Lessee shall deposit with the Port security for Lessee's full and faithful perall the terms, covenants, and conditions of this Lease in the amount of $2,88

shall return such sum, without interest, after the expiration hereof, if Lessand faithfully carried out all of such terms, covenants, and conditions. Thapply any part of such deposit to cure any of Lessee's defaults. In such evshall, upon demand, deposit with the Port the amount so applied so that thhave the full deposit on hand at all times during the term hereof. Lessmortgage assign or encumber the security deposited under this Lease

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25A. Captions

The captions used in this Lease are intended for convenience of refand do not define or limit the scope or meaning of any provision of th

25B. Joint and Several Liability; Binding Effect

Each party who signs this Lease (other than in a representative capjointly and severally liable for the performance of the obligationsLease. This Lease is and shall be binding upon and inure to the bparties hereto and their respective heirs, personal representatives, and permitted assigns.

25C. Lessee Includes Lessees

It is understood and agreed that for convenience the word "Lesseeand pronouns in the singular number and neuter gender are unthroughout this Lease, regardless of the number, gender, or fact of iof the party who is, or of the parties who are, the actual Lessee or Lethis Lease.

25D. WaiverThe failure to enforce any provision concerning breach, violation, or with respect to the performance or observance of the covenants ancontained herein shall not be taken to constitute a waiver of rightssuch provisions with respect to any such subsequent breach, violatioin or with respect to the same or any other covenant or condition here

25E. Governing Law

The place of making of the Lease shall be deemed to be KitsWashington, and the legal rights and obligations of the Port and the be determined by the laws of the State of Washington.

25F. Jurisdiction and Venue

In the event any suit, action or other proceeding shall be brought inwith any of the terms or conditions of this Lease, the Port and the Le

stipulate that jurisdiction and venue of each suit, action or other procbe in Kitsap County, Washington.

25G. Attorneys Fees and Costs

In the event that any suit, action or other proceeding shall be institutecompliance with any of the terms or conditions of this Lease there s

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25H. Holding Over

In the event that the Lessee, for any reason, shall hold over in possePremises following the expiration of this Lease, or any extensions hholding over shall not be deemed to operate as a renewal or extenLease, but shall only create a tenancy from month to month whterminated at will at any time by the Port.

25I. Severability

In the event that any section, or any part of any section, of this Ledeclared invalid by a court of competent jurisdiction, said holding sh

effect upon the remaining sections of this Lease, which remain in fueffect.

25J. Entirety

The Lease constitutes the entire agreement and understanding betwand the Lessee. There are no other agreements or representations, eor oral, which modify or have any effect upon this Lease. This Leffective in any manner until such time as formally approved and acc

Bremerton Port Commissioners as evidenced by their signatures belo

25K. No Recordation; Memorandum

This Lease Agreement may not be recorded. A memorandum of leasby the Port may be executed in recordable form and recorded witCounty Auditor.

25L. Submission of Lease Form Not an Offer

One partys submission of this Lease to the other for review shall nan offer to lease the Premises. This Lease shall not become ebinding upon Port and Tenant until it has been fully signed by boTenant.

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IN WITNESS WHEREOFthe parties hereto have caused this Leaseto be executed as of the day and year first above written.

Collins Investments, LLC PORT OF BREMERTONA Washington State Limited Liabil ity Co A Municipal Corporat ion

______________________________ _______________________Roger Collins, Manager President and Commissione

______________________________ _______________________Vice-President and Commis

_______________________Secretary and Commissione

Approved As To Form:

______________________________Port AttorneyDate:_________________________

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STATE OF WASHINGTON )ssCOUNTY OF )

On this ______ day of ____________________________, before meappeared , to me theof the limited liability company that executed the within and foregoing instacknowledged the said instrument to be the free and voluntary act and dcompany, for the uses and purposes therein mentioned, and that they are aexecute said instrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixeseal the day and year first above written.

Notary Public in and for theState of

residing atMy commission expires:

STATE OF WASHINGTON )ssCOUNTY OF KITSAP )

On this _______ day of ______________________________ personally appeared to me kthe ____________________________________________ of the Port ofthat executed the within and foregoing instrument, and acknowledgeinstrument to be the free and voluntary act and deed of said corporation, and purposes therein mentioned, and that they are authorized to einstrument.

IN WITNESS WHEREOF, I have hereunto set my hand and affixedSeal the day and year first above written.

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AGENDA SUMMARY


Subject:Grant of Easement and DNR Lease Acknowledgment with N

Commnet, LLC

Exhibits: Easement and Acknowledgment Letter

Prepared By: Jim Rothlin, CEO

Meeting Date: July 22, 2014

Summary:

John Stockwell, NW Commnet, provided a presentation to the Board at the M

meeting on NW Commnets project to lay submarine communication fiber

between Bremerton and Port Orchard. A 10 x 10 easement on Port property ad2ndStreet cul-de-sac in Bremerton is necessary for placing a 5 x 5 cable vault

that project. A formal easement has now been prepared for Board consideration

Also required for this project is an acknowledgment by the Port that there is no

a lease from Washington State Department of Natural Resources (DNR) to N

for the fiber optic cable across the bedlands of Sinclair Inlet that runs throu

portion of bedlands currently leased from DNR to the Port.

The Port Attorney has reviewed both documents and finds them acceptable.

Fiscal Impact:

None

Recommendation:

Staff recommends accommodating NW Commnets request for an ea

acknowledgment of their lease with DNR.


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