RESOLUTION NO PASSED by the City Council this 14th day of October, ATTEST: ood T. Edvalson, City Clerk APPROVED AS TO FORM:

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1 RESOLUTION NO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BONNEY LAKE, PIERCE COUNTY, WASHINGTON, AUTHORIZING A LEASE AGREEMENT WITH MR. & MRS. MEL V AIN DONYES AND MR. & MRS. HOBAN TO LEASE THE PROPERTY AT TH AVENUE EAST. The City Council of the City of Bonney Lake, Washington, does hereby resolve that the Mayor is authorized to sign the agreement attached hereto and incorporated herein by this reference. PASSED by the City Council this 14th day of October, ATTEST: ood T. Edvalson, City Clerk APPROVED AS TO FORM: J es Dionne, City Attorney

2 Resolution 1183 Passed 14 October 2003 Note: The resolution approves a lease with Doynes & Hoban. The lease was changed to be with German & McClean and was not used until December No additional resolution was adopted to reflect this change, so the original resolution is assumed to be for the lease signed December 2003 until further notice. See copies of both lease agreements, attached. See also Resolution 1162.

3 LEASE AGREEMENT THIS LEASE AGREEMENT {"Agreement"} is made and entered into this 14 day of October, 2003, by and between the City of Bonney Lake, hereinafter called "Lessor," and Mr. & Mrs. Melvain Donyes and Mr. and Mrs. James Hoban, hereinafter collectively called "Lessee." THE PARTIES HEREBY AGREE as follows: 1. Lease of Real Property. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, for the uses set out in this Agreement, the building located at t h Avenue. East, Bonney Lake, Washington ("the Premises"). 2. Term. The term of this Agreement shall commence on or before November 1, 2003, and shall terminate on November 1, This Agreement shall renew only by further written agreement of the parties. 3. Rent. Lessee shall pay to Lessor monthly rent in the amount of $1, per month, which shall be due in advance on the first business day of each month during the term of this Agreement. 4. Custodial Services. Lessor will provide Lessee with reasonable standards and guidelines for the maintenance of the Premises. Lessee shall be solely responsible for maintaining the Premises leased hereunder in accordance with such standards and guidelines, and shall be solely responsible for providing all necessary custodial services and supplies in order to do so; provided, that if, in the sole judgment of Lessor, the Premises are not being maintained in accordance with such standards and guidelines, Lessor may undertake the maintenance of the Premises and bill all of the reasonable costs thereof to Lessee. 5. Insurance. Lessee shall carry public liability insurance in the amount of one million dollars ($1,000,000.00) and shall name Lessor as an additional insured under such policy for any liability arising out of or incident to the use of the Premises by Lessee. Lessee agrees to provide proof of such insurance to Lessor upon request. 6. Utilities. Lessee shall be responsible for payment of all costs relating to utility services, including power, water, sewer, telephone and data services. 7. Alterations. Lessee shall make no permanent alterations to the Premises without Lessor's written consent. 8. Liability and Indemnity. Lessee shall be fully responsible for all acts and omissions of the Lessee and its officials, employees and agents in the performance of the Lessee's obligations under this Agreement and in their use of the Premises under this Agreement. Lessee shall defend, indemnify and hold Lessor and its officials, employees and agents harmless from all costs, expenses, losses and damages, including costs of legal defense, incurred as a result of any acts or Page 1 of 3

4 omissions of Lessee or any of Lessee's officials, employees or agents relating to the use of the Premises or the performance of this Agreement. 9. Surrender of Premises. At the expiration of this Agreement, Lessee will quit and surrender the Premises in as good a state and condition as they now are, with due regard and consideration of ordinary wear and tear and damage by the elements and fire excepted. 10. Subletting and Assignment. Lessee agrees not to sublease or underlet the whole or any part of the Premises nor assign this Agreement, or any interest herein, without Lessor's prior written consent. 11. Attorney Fees. In the event of any dispute between Lessor and Lessee arising out of or incident to this Agreement, or arising out of Lessee's use or occupancy of the Premises, the prevailing party shall be entitled to recovery of its reasonable attorney fees and costs incurred. 12. Warranties. Lessor specifically disclaims any warranty of any kind or of any nature of the Premises, including a specific disclaimer of any fitness of the Premises for a particular purpose. Lessee shall be solely responsible for ensuring that the Premises comply with any and all legal requirements applicable to Lessee's use of the Premises. 13. Notices. All notices, requests, demands and other communications required by this Agreement shall be in writing and shall be deemed to have been given at the time of delivery if personally delivered or three days after.mailing if mailed by first class, postage pre-paid and addressed to the party at its address as stated in this Agreement or at such address as either party may designate at any time in writing. The parties' addresses for notification pursuant to this Agreement are as follows: Lessor: City of Bonney Lake Post Office Box 7380 Bonney Lake, Washington Lessee: Mr. and Mrs. Melvain Donyes Mr. and Mrs. James Hoban 14. Leasehold Excise Tax. Lessee understands that this Agreement is subject to the Leasehold Excise Tax imposed by Ch A RCW. Lessee agrees to remit to Lessor, along with each rental payment required by section 3 of this Agreement, monthly tax payment in the amount required by RCW 82.29A.030, as such statute may hereafter be amended. The rental and tax payments may be combined. Lessor will remit the tax collected to the Washington State Department of Revenue as required by law. The current total Leasehold Excise Tax rate is 12.84% of the rental amount. Page 2 of 3

5 15. Entire Agreement. This Agreement represents the entire Agreement between the parties. No change, termination or attempted waiver of any of the provisions of the Agreement shall be binding on any party unless executed in writing by authorized representatives of each party. The agreement shall not be modified, supplemented or otherwise affected by the course of. dealing between the parties. 16. Waiver. Failure by any party to this Agreement to enforce any provision of this Agreement or to declare a breach shall not constitute a waiver thereof, nor shall it impair any party's right to demand strict performance of that or any other provision of this Agreement any time thereafter. 17. Severability. If any provision of this Agreement or its application is held invalid, the remainder of the Agreement or the application of the remainder of the Agreement shall not be affected. LESSOR LESSEE Date: -- g: \bonlk\ooi \J04OJI<,..,.agr.doc Page 3 of 3

6 , 1Ii. LEASE AGREEMENT THIS LEASE AGREEMENT ("Agreement") is made and entered into this 1st day of December 2003, by and between the City of Bonney Lake, hereinafter called "Lessor," and Ms. K.C. German & Mrs. Kathie McClean, hereinafter called "Lessee." THE PARTIES HEREBY AGREE as follows: 1. Lease of Real Property. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, for the uses set out in this Agreement, the building located at t h Avenue East, Bonney Lake, Washington ("the Premises"). 2. Term. The initial term of this Agreement shall commence on December 1, 2003 and shall terminate on December 31, Thereafter, the lease shall automatically renew for additional six-month terms, unless either party notifies the other of its intention not to renew at least six months prior to the end of the last term. 3. Rent. Lessee shall pay to Lessor monthly rent in the following amounts per month: December 1, $ and $ in leasehold excise tax, as referenced in paragraph 14, for a total pay ent of $ January 1, $ 0.00 and $ in leasehold excise tax, as referenced in paragraph 14, for a total pa ent of February 1, $80 00 and $ in leasehold excise tax, as referenced in paragraph 14, for a total paym of $902. n. 1.-1). \" March 1, $ and $ in leasehold excise tax, as referenced in paragraph 14, for a total paymen of tp J(, April 1, $ 0.00 nd $ in leasehold excise tax, as referenced in paragraph 14, for a total pay ent of$ t,d5. May 1, ,i900.00_an $ in leasehold excise tax, as referenced in paragraph 14, for a total p yment of $ June 1, December 1, $1, and $ in leasehold excise tax, as referenced in paragraph 14, for a total payment of $ Said Rent shall be due in advance on the first business day of each month during the term of this Agreement. Lessee shall pay first and last months' rent, and applicable leasehold excise tax due on the same, along with a security/damage deposit of $500.00, prior to taking possession of the Premises." 4. Custodial Services. Lessor will provide Lessee with reasonable standards and guidelines for the maintenance of the Premises. Lessee shall be solely responsible for maintaining the Premises leased hereunder in accordance with such standards and guidelines, and shall be solely responsible for providing all necessary custodial services and supplies in order to do so; provided, that if, in the sole judgment of Lessor, the Premises are not being maintained in Page 1 of 5

7 '. accorqance with such standards and guidelines, Lessor may undertake the maintenance of the Premises and bill all of the reasonable costs thereof to Lessee. 5. Insurance. The Lessee shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property, which may arise from or in connection with the Lessee's operation and use of the leased Premises. A. Minimum Scope of Insurance Lessee shall obtain insurance of the types described below: 1. Commercial General Liability insurance shall be written on Insurance Services Office (ISO) occurrence form CG and shall cover premises and contractual liability. The City shall be named as an insured on Lessee's Commercial Liability insurance policy using ISO Additional Insured - Managers or Lessors of Premises Form CG or a substitute endorsement providing equivalent coverage. 2. Property insurance shall be written on an all risk basis. B. Minimum Amounts of Insurance Lessee shall maintain the following insurance limits: 1. Commercial General Liability insurance shall be written with limits no less than $ 1,000,000 each occurrence, $ 2,000,000 general aggregate. 2. Property insurance shall be written covering the full value of Lessee's property and improvements with no coinsurance provisions. C. Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Commercial General Liability insurance: 1. The Lessee's insurance coverage shall be primary insurance as respect to the City. Any Insurance, self insurance, or insurance pool coverage maintained by the City shall be excess of the Lessee's insurance and shall not contribute with it. 2. The Lessee's insurance shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30 ) days prior written notice by certified mail, return receipt requested, has been given to the City. D. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best rating of not less than A:VII. Page 2 of 5

8 E. Verification of Coverage Lessee shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Lessee. F. Waiver of Subrogation Lessee and Landlord hereby release and discharge each other from all claims, losses and liabilities arising from or caused by any hazard covered by property insurance on or in connection with the premises or said building. The release shall apply only to the extent that such claim, loss or liability is covered by insurance. G. Landlord's Property Insurance Landlord shall purchase and maintain during the term of the lease all-risk property insurance covering the Building for their full i'eplacement value without any coinsurance provisions. 6. Utilities. Lessee shall be responsible for payment of all costs relating to utility services, including power, water, sewer, storm water, solid waste, telephone and data services. 7. Alterations. Lessee shall make no permanent alterations to the Premises without Lessor's written consent. 8. Liability and Indemnity. Lessee shall be fully responsible for all acts and omissions of the Lessee and its officials, employees and agents in the performance of the Lessee's obligations under this Agreement and in their use of the Premises under this Agreement. Lessee shall defend, indemnify and hold Lessor and its officials, employees and agents and volunteers HARMLESS from and against any and all claims, suits, actions, or liabilities for injury or death of any person, or for loss or damage to property, which arises out of Lessee's use of Premises, or from the conduct of Lessee's business, or from any activity, work or thing done, permitted or suffered by Lessee in or about the Premises, except only such injury or damage as shall have been occasioned by the sole negligence of the City. 9. Surrender of Premises. At the expiration of this Agreement, Lessee will quit and surrender the Premises in as good a state and condition as they now are, with due regard and consideration of ordinary wear and tear and damage by the elements and fire excepted. 10. Subletting and Assignment. Lessee agrees not to sublease or underlet the whole or any part of the Premises nor assign this Agreement, or any interest herein, without Lessor's prior written consent. Page 3 of 5

9 '. 11. Attorney Fees. In the event of any dispute between Lessor and Lessee arising out of or incident to this Agreement, or arising out of Lessee's use or occupancy of the Premises, the prevailing party shall be entitled to recovery of its reasonable attorney fees and costs incurred. 12. Warranties. Lessor specifically disclaims any warranty of any kind or of any nature of the Premises, including a specific disclaimer of any fitness of the Premises for a particular purpose. Lessee shall be solely responsible for ensuring that the Premises comply with any and all legal requirements applicable to Lessee's use of the Premises. 13. Notices. All notices, requests, demands and other communications required by this Agreement shall be in writing and shall be deemed to have been given at the time of delivery if personally delivered or three days after mailing if mailed by first class, postage pre-paid and addressed to the party at its address as stated in this Agreement or at such address as either party may designate at any time in writing. The parties' addresses for notification pursuant to this Agreement are as follows: Lessor: City of Bonney Lake Post Office Box 7380 Bonney Lake, Washington Lessee: K. C. German & Kathie McClean P.O. Box 246 Wilkerson (360) Leasehold Excise Tax. Lessee understands that this Agreement is subject to the Leasehold Excise Tax imposed by Ch A RCW. Lessee agrees to remit to Lessor, along with each rental payment required by section 3 of this Agreement, monthly tax payment in the amount required by RCW 82.29A.030, as such statute may hereafter be amended. The rental and tax payments may be combined. Lessor will remit the tax collected to the Washington State Department of Revenue as required by law. The current total Leasehold Excise Tax rate is 12.84% of the rental amount. 15. Entire Agreement. This Agreement represents the entire Agreement between the parties. No change, termination or attempted waiver of any of the provisions of the Agreement shall be binding on any party unless executed in writing by authorized representatives of each party. The agreement shall not be modified, supplemented or otherwise affected by the course of dealing between the parties. 16. Waiver. Failure by any party to this Agreement to enforce any provision of this Agreement or to declare a breach shall not constitute a waiver thereof, nor shall it impair any Page 4 of 5

10 ,. party's right to demand strict performance of that or any other provision of this Agreement any time thereafter. 17. Severability. If any provision of this Agreement or its application is held invalid. the remainder of the Agreement or the application of the remainder of the Agreement shall not be affected. LESSOR CITY OF BONNEY lake P.O. Box 7380 Bonney Lake, W A (253) LESSEE K. C. German & Kathie McClean P.O. Box 246 Wilkerson, W A (360) 829-OS67 Bob Young, Ma r Date: _--,1_ : ;:;... 0=-3 I Date: go \bonlk\oo I \)0403 le:ue.ogr.doc Page 5 of 5