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HomeMy WebLinkAbout2012-10-11 Airport Commission PacketKENAI AIRPORT COMMISSION OCTOBER 11, 2012 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1: CALL TO ORDER AND ROLL CALL 1 -a. Administer Oath of Office to Newly Appointed Officer McClure ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY -- August 9, 2012 ITEM 4: PERSONS SCHEDULED TO BE HEARD 4 -a. Rebecca Cronkhite, Alaska International Airport System -- Safety Management System Presentation ITEM 5: UNFINISHED BUSINESS 5 -a. Discussion -- Tree Obstruction Clearing Project Update ITEM 6: ITEM 7: REPORT 7 -a. Commission Chair 7 -b. Airport Manager 7 -c. City Council Liaison ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION -- November 8, 2012 ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11: INFORMATION ITEMS 11 -a. August 2012 Enplanement 11 -b. Float Plane Basin Activity 2008 - 2012 11 -c. Airport Manager's Report -- September 2012 11 -d. Automated Flight Service Lease -- Ordinance No. 2651 -2012 ITEM 12: ADJOURNMENT PLEASE CONTACT VS IF YOU WILL NOT SE ABLE TO ATTEND THE MEETING: COREY -- 283 -8250 OR MARY -- 283 -7951 Item 3. KENAI AIRPORT COMMISSION AUGUST 9, 2012 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MEETING SUMMARY ITEM 1: CALL TO ORDER AND ROLL CALL Chair Knackstedt called the meeting to order at approximately 7:00 p.m. Roll was confirmed as follows: Commissioners present: Chair H. Knackstedt, J. Bielefeld, G. Feeken, K. Roser Commissioners absent: J. Zirul, L. Porter Staff /Council Liaison present: Airport Manager M. Bondurant, Administrative Assistant E. Shinn, Council Member R. Molloy A quorum was present. ITEM 2: AGENDA APPROVAL MOTION: Commissioner Bielefeld MOVED to approve the agenda as presented and Commissioner Feeken SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY -- July 12, 2012 Commissioner Bielefeld requested the following change: change 1022/2012 to 2012/2013 in item 6 -c. MOTION: Commissioner Bielefeld MOVED to approve the amended meeting summary of July 12, 2012 and Commissioner Feeken SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None. ITEM 5: UNFINISHED BUSINESS 5 -a. Discussion/ Recommendation - 2012/2013 Goals and Objectives MOTION: Commissioner Bielefeld MOVED to accept the 2012/2013 Goals and Objectives and Commissioner Feeken SECONDED the motion. VOTE: MOTION PASSED UNANIMOUSLY. 5 -b. Discussion/ Comments - Imagine 2030 Comprehensive Plan Update General discussion occurred. The Airport Manager noted she would give the City Planner their input. ITEM 6: NEW BUSINESS -- None. ITEM 7: REPORT 7 -a. Commission Chair -- No report. 7 -b. Airport Manager -- Bondurant noted moving forward with the grant program; the Department of Transportation was painting the taxiway; and, she would begin recruiting for snow removal personnel soon. 7 -c. City Council Liaison -- Council Member Molloy reviewed the August 1 work session and City Council meeting. ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION 8 -a. September 13, 2012 (Identify if you are requesting an excused absence.) Commissioner Feeken requested an excused absence from the September 13 meeting. ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS Roser noted the Airport had been doing a good job. ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD -- None. ITEM 11: INFORMATION ITEMS 11 -a. July 2012 Airport Manager's Report 11 -b. June 2012 Enplanements 11 -c. 2008 - 2012 Float Plane Basin Activity 11 -d. Think About It Article - KSRM Radio Group ITEM 12: ADJOURNMENT MOTION: Commissioner Bielefeld MOVED to adjourn and Commissioner Roser SECONDED the motion. There were no objections. SO ORDERED. AIRPORT COMMISSION MEETING AUGUST 9, 2012 PAGE 2 There being no further business before the Commission, the meeting was adjourned at approximately 7:38 p.m. Meeting summary prepared and submitted by: Corene Hall, CMC, Deputy City Clerk AIRPORT COMMISSION MEETING AUGUST 9, 2012 PAGE 3 Ite,., 9. aarety management Nystems The State of Alaska, Division of Airports is conducting a planning study to assess the potential for developing a scalable SMS program for all Alaska Airports. The project includes all state operated airports and is open to participation by municipal and other non -state airports. SMS stands for Safety Management Systems and is a top -down approach to managing safety risk, which the FAA expects will improve aviation safety. SMS is not an additional safety program but a formalized process that incorporates existing inspections to identify potential hazards and ensure that a process is put in place to effectively manage them. FAA is overseeing implementation of this new approach — called a safety management system (SMS) approach —both within FAA and throughout the U.S. aviation industry and is coordinating these efforts with the international aviation community. Safety management systems represent a proactive approach to safety and are intended to continually monitor all aspects of aviation operations and collect appropriate data to identify emerging safety problems before they result in death, injury, or significant property damage. Under SMS, FAA will use the aviation safety data it collects to identify conditions that could lead to aviation accidents or incidents and to address such conditions through changes in the FAA's organization, processes, management, and culture. SMS adoption and implementation is one of the biggest cultural and procedural transformations in FAA history and will likely involve years of continuous effort on the part of agency and industry officials. GAO -12 -898 Safety Management Systems The FAA is currently in the rulemaking process to require airports and airlines implement SMS in their operations. The current rulemaking documents are specific to Certificated (Part 139) airports and Part 121 Air Carriers; however the FAA has indicated that these requirements will be expanded to all airports and commercial air carriers in the future. The State of Alaska SMS project is an opportunity to look ahead and plan for impacts. The stated goal of the project is to explore the feasibility and cost effectiveness of utilizing common resources to institute a scalable, compliant and practical SMS program for all state airports. A full briefing of the project and opportunities for participation will be presented at the October 11, 2012 Kenai Airport Commission Meeting. U.S. Department A Advisory Subject: INTRODUCTION TO SAFETY Date: February 28, 2007 AC No: AC 150/5200 -37 MANAGEMENT SYSTEMS (SMS) FOR Initiated by: AAS -300 Change: AIRPORT OPERATORS 1. PURPOSE. This Advisory Circular (AC) introduces the concept of a safety management system (SMS) for airport operators. BACKGROUND. The application of a systematic, proactive, and well - defined safety program (as is inherent in a SMS) allows an organization producing a product or service to strike a realistic and efficient balance between safety and production. The forecast growth in air transportation will require new measures and a greater effort from all aviation producers — including airport operators —in order to achieve a continuing improvement in the level of aviation safety. The use of SMS at airports can contribute to this effort by increasing the likelihood that airport operators will detect and correct safety problems before those problems result in an aircraft accident or incident. In November 2005, the International Civil Aviation Organization (ICAO) amended Annex 14, Volume I (Airport Design and Operations) to require member States to have certificated international airports establish an SMS. The FAA supports harmonization of international standards, and has worked to make U.S. aviation safety regulations consistent with ICAO standards and recommended practices. The agency intends to implement the use of SMS at U.S. airports to meet the intent of the ICAO standard in a way that complements existing airport safety regulations in 14 CFR Part 139. The following actions are being taken in conjunction with the implementation of SMS at commercial airports in the United States: Rulemaking. The FAA has opened a rulemaking project to consider a formal requirement for SMS at certificated airports. In the United States, about 570 airports are certificated under 14 CFR Part 139, Certification of Airports. The agency anticipates issuing a notice of proposed rulemaking (NPRM) for public comment in 2008. A decision on a final rule will not be made until the agency has considered all of the public and industry comments received on the NPRM. We will also take into account the experience of airports that have already implemented an SMS. In any decision to issue a final rule to have airport operators implement SMS, the FAA would: Consider the benefits and costs of the rule and tailor the rule to impose the minimum burden and costs necessary for effective implementation Consider whether the requirement should apply to all certificated airports or only to airports above a certain activity level AC 150/5200 -37 February 28, 2007 • Consider, for airports subject to an SMS requirement, how SMS program elements would apply to airports of different sizes and resource • Acknowledge the existing requirements of 14 CFR Part 139 and avoid duplication of safety programs • Consider the appropriate degree of FAA oversight of individual SMS plans by FAA airport certification safety inspectors • Review SMS training needs for FAA employees and airport operators Airport Improvement Program (AIP) grant eligibility. The FAA has determined that contract costs incurred for development of an initial SMS at an airport are eligible for AIP planning grant funds. Additional guidance on SMS at airports. If a regulation on SMS is adopted the FAA will update the SMS Advisory Circular and issue additional guidance as necessary for its implementation, including a detailed checklist and possibly a model SMS plan document. In addition, two projects have been approved for funding under the Airport Cooperative Research Program (ACRP) administered by the Transportation Research Board that will provide further guidance on SMS implementation by airport operators. First, the Mitre Corporation has received an ACRP grant to produce a white paper on SMS with a description of its general benefits, the ICAO requirement, and how SMS could be used at airports in the U.S. The white paper should be published in May 2007. Second, ACRP has approved a grant project for development of an SMS user guidebook for airport operators with detailed practical guidance on the implementation of an airport SMS. Completion of the project is expected by September 2008. SMS will also be added to the agenda in the FAA's Airport Safety and Operations Schools (ASOS), which is offered several times each year. 2. APPLICATION. The material contained in this AC is applicable for use at all civil airports, when adapted to the size, activity level, staff level, and resources of each airport. A safety management system can be integrated into all aspects of airport operations, business and management practices. This includes consideration of work performed by all direct contractors. 3. COMMENTS OR SUGGESTIONS for improvements to this AC should be sent to: Manager, Airport Safety and Operations Division Federal Aviation Administration ATTN: AAS -300 800 Independence Avenue, S.W. Washington, DC 20591 ii February 28, 2007 AC 150/5200 -37 4. COPIES OF THIS AC. The Office of Airport Safety and Standards makes ACS available to the public through the Internet. These ACs may be found through the FAA home page (www.faa.gov). A printed copy of this AC and other ACs can be ordered from the U.S. Department of Transportation, Subsequent Distribution Office, Ardmore East Business Center, 3341 Q 75th Avenue, Landover, MD 20785. 61/t't L-'i9 DAVID L. BENNETT Director of Airport Safety and Standards iii February 28, 2007 AC 150/5200 -37 TABLE OF CONTENTS CHAPTER 1: GENERAL INFORMATION ......................................... ............................... 1 1.1. PURPOSE ........................................................................... ..............................1 1.2. DEFINITIONS .................................................................... ..............................1 1.3. SAFETY CULTURE ......................................................... ............................... 2 CHAPTER 2: ELEMENTS OF A SAFETY MANAGEMENT SYSTEM ........................ 3 2.1. GENERAL .......................................................................... ..............................3 2.2. SAFETY POLICY AND OBJECTIVES ........................... ............................... 3 2.2.1 Safety Pol icy ...................................................................... ............................... 3 2.2.2 Safety Objectives ............................................................... ............................... 3 2.3. SAFETY RISK MANAGEMENT .................................... ............................... 5 2.4. SAFETY ASSURANCE .................................................... ............................... 6 2.5. SAFETY PROMOTION .................................................... ............................... 7 CHAPTER 3: SAFETY RISK MANAGEMENT (SRM) ..................... ............................... 9 3.1. GENERAL .......................................................................... ..............................9 3.2. SRM BACKGROUND INFORMATION ......................... ............................... 9 3.3. THE FIVE PHASES OF SRM .......................................... ............................... 9 APPENDIX 1: EXAMPLE: APPLICATION OF SRM TO A SAFETY DURING CONSTRUCTIONPLAN ............................................. ............................... 15 LIST OF FIGURES Figure 2 - 1. SMS Lifecycle Overview ........................................................... ............................... 5 Figure 3 - 1. Predictive Risk Matrix ............................................................. ............................... 12 v February 28, 2007 CHAPTER 1: I.I. PURPOSE. GENERAL INFORMATION AC 150/5200 -37 This chapter provides general guidelines for Safety Management Systems (SMSs). The benefits of an SMS would apply to all activities at an airport. However, any action by the FAA to amend 14 CFR Part 139 to implement a requirement for an SMS would be limited to those areas subject to 14 CFR Part 139 regulation. Accordingly, the following general guidelines should not be taken as an indication of the content or scope of a possible future FAA rule relating to SMS. 1.2. DEFINITIONS. Gap Analysis — Identification of existing safety components, compared to SMS program requirements. Gap analysis provides an airport operator an initial SMS development plan and roadmap for compliance. Hazard — Any existing or potential condition that can lead to injury, illness, or death to people; damage to or loss of a system, equipment, or property; or damage to the environment. A hazard is a condition that is a prerequisite to an accident or incident. Risk Assessment — Assessment of the system or component to compare the achieved risk level with the tolerable risk level. Safety Assessment — A systematic, comprehensive evaluation of an implemented system. Safety assurance — SMS process management functions that systematically provide confidence that organizational products /services meet or exceed safety requirements. Safety Management System (SMS) — The formal, top -down business -like approach to managing safety risk. It includes systematic procedures, practices, and policies for the management of safety (including safety risk management, safety policy, safety assurance, and safety promotion). Safety Policy — Defines the fundamental approach to managing safety that is to be adopted within an organization. Safety policy further defines the organization's commitment to safety and overall safety vision. Safety promotion — A combination of safety culture, training, and data sharing activities that supports the implementation and operation of an SMS in an organization. Safety risk — The composite of the likelihood (i.e., risk) of the potential effect of a hazard, and predicted severity of that effect. As an example, the possibility of an overshoot by an aircraft landing on an icy runway would be considered a safety risk of the hazard. The hazard is "icy runway" and the risk is "possibility of an overshoot." Safety risk control — Anything that mitigates the safety risk of a hazard. Safety risk controls necessary to mitigate an unacceptable risk should be mandatory, measurable, and monitored for effectiveness. AC 150/5200 -37 February 28, 2007 Safety Risk Management (SRM) — A formal process within the SMS composed of describing the system, identifying the hazards, assessing the risk, analyzing the risk, and controlling the risk. The SRM process is embedded in the operational system; is not a separate /distinct process. Severity — The consequence or impact of a hazard in terms of degree of loss or harm. System(s) — An integrated set of elements that are combined in an operational or support environment to accomplish a defined objective. These elements include people, hardware, software, firmware, information, procedures, facilities, services and environment. Top Management — The person or group of people who direct and control an organization. Sometimes it is also referred to as Senior Management. 1.3. SAFETY CULTURE. Effective safety management requires more than establishing an appropriate organizational structure and establishing rules and procedures to be followed. It requires a commitment to safety on the part of senior management. The attitudes, decisions and methods of operation at the policy- making level demonstrate the priority given to safety. A key indicator of management's commitment to safety is the adequacy of resources. Establishing a management structure, assigning responsibility and accountability, and allocating appropriate resources must be consistent with the organization's stated safety objectives. In effective safety cultures, there are clear reporting lines, clearly defined duties and well understood procedures. Personnel fully understand their responsibilities and know what to report, to whom and when. Senior management reviews not only the financial performance of the organization but also its safety performance. Safety culture, then, is both attitudinal and structural, relating to individuals and organizations. It concerns the requirement to not only perceive safety issues but also match them with appropriate action. Safety culture relates to such intangibles as personal attitudes and the style of the organization. It is therefore difficult to measure, especially when the principal criterion for measuring safety is the absence of accidents and incidents. Yet, personal attitudes and corporate style enable or facilitate the unsafe acts and conditions that are the precursors to accidents and incidents. Therefore, safety culture may affect systems safety either negatively or positively. 0 February 28, 2007 AC 150/5200 -37 CHAPTER 2: ELEMENTS OF A SAFETY MANAGEMENT SYSTEM 2.1. GENERAL. Effective safety management requires a systems approach to the development of safety policies, procedures and practices to allow the organization to achieve its safety objectives. Similar to other management functions, safety management requires planning, organizing, communicating and providing direction. A SMS provides a proactive, systematic, and integrated method of managing safety for airport operators.. Essential to a SMS are formal safety risk management procedures that provide risk analysis and assessment. Generally accepted industry standards and International Civil Aviation Organization (ICAO) guidance describe Safety Management Systems in terms of four distinct elements. They include: • Safety Policy and Objectives • Safety Risk Management • Safety Assurance • Safety Promotion. 2.2. SAFETY POLICY AND OBJECTIVES. 2.2.1 Safety Policy. Management's commitment to safety should be formally expressed in a statement of the organization's safety policy. This policy should reflect the organization's safety philosophy and become the establishment of the SMS. The safety policy outlines the methods and processes that the organization will use to achieve desired safety outcomes. A safety policy will be signed by Top Management and will typically contain the following attributes: • The commitment of senior management to implement SMS • A commitment to continual safety improvement • The encouragement of employees to report safety issues without fear of reprisal • A commitment to provide the necessary safety resources • A commitment to make safety the highest priority 2.2.2 Safety Objectives. SMS requires the support of senior management. SMS also requires that Top Management in the organization, one with the authority to adequately control resources, be assigned SMS AC 150/5200 -37 February 28, 2007 responsibilities. In addition to having a basic understanding of the SMS, effective decision - makers understand how to use SMS outputs as inputs to the SMS lifecycle as described in Figure 2 -1. Executives and managers also understand when safety risk management is necessary, and when to elevate decisions and the supporting information to a higher level. Some key elements of accountability within an organization are: • The organization's policy concerning responsibility and accountability, including written guidance regarding the safety authorities and responsibilities of all key personnel assigned to the airport • Identification within the system of someone responsible for administration of the overall SMS. Often, that one responsible person will be the Safety Manager. This person reports to the highest level of management to assure appropriate consideration of all reports, recommendations, and issues • At larger airports, operations may support the Safety Manager being a full -time permanent employee and in some cases having a support staff. Some airports may have an existing risk management office that could substantially meet SMS safety management requirements • The responsibilities of the Safety Manager are clearly defined along with identified lines of communication within the organization • Depending on the size and complexity of the airport's operation, it may be useful to establish a safety committee. The safety committee acts as a source of expertise for the Safety Manager and is chaired by the Safety Manager How an organization arranges its method of conducting business and managing safety will influence its resilience to hazardous situations and its ability to reduce risks. To ensure responsible safety management, successful organizations follow a disciplined approach to documentation and information management. The process of formal documentation clarifies the relationship of the SMS to other organizational functions and the integration of SMS activities. Further, the documentation process defines how SMS activities relate to the organization's operating policies. The contents of this documentation may be in the form of safety reporting records, surveys, hazard reporting forms, and risk analysis /mitigation processes. It is important that the organization maintain a record of the measures taken to fulfill the objectives of the SMS. These records may be required in the event of a formal investigation of an accident or serious incident and should be maintained in sufficient detail to ensure traceability of all significant safety- related decisions. NOTE: The Airport SMS should be distributed as necessary to educate and inform the airport staff. If the FAA adopts a rule to make a SMS mandatory at some or all certificated airports, SMS documentation related to 14 CFR Part 139 responsibilities would be incorporated into the Airport Certification Manual (ACM) or added as an appendix. As an appendix to the ACM, the Airport SMS, to the extent it relates to 14 CFR Part 139, would be subject to the same document control measures as any other part of the ACM. 2 February 28, 2007 National legislation, regulation, standards, and procedures Follow -up Accident and incident reporting and investigation Analysis Airport Safety Manager Safety Recommendation Safety Audits AC 150/5200 -37 Safety suggestions received from all levels Provide information to managers Provide information to employees Airport Safety Committee Ramp SMGCS / Low Construction Airport Individual Safety Visibility Safety Emergency organizations Committee Committee Committee Committee and authorities Corrective Actions - New and revised procedures - Training / Audits - Safety campaigns - Improvement of airport safety system Figure 2 - 1. SMS Lifecycle Overview 2.3. SAFETY RISK MANAGEMENT Safety Risk Management (SRM) is at the heart of any Safety Management System. It is through the SRM process that an organization identifies hazards, determines potential risks, and designs appropriate risk mitigation strategies. Safety Risk Management is discussed in Chapter 3. AC 150/5200 -37 2.4. SAFETY ASSURANCE February 28, 2007 Safety Assurance includes self - auditing, external auditing, and safety oversight. Safety oversight can be achieved through auditing and surveillance practices, given the diverse activities at commercial airports. In addition to the airport operator's existing responsibilities for self - inspection and correction of discrepancies under 14 CFR Part 139, an effective airport SMS audit program should: • Develop identified safety performance indicators and targets • Monitor adherence to safety policy through self - auditing • Allocate adequate resources for safety oversight • Solicit input through a non- punitive safety reporting system • Systematically review all available feedback from daily self - inspections, assessments, reports, safety risk analysis, and safety audits • Communicate findings to staff and implement agreed -upon mitigation strategies (14 CFR Part 139 already requires this for actions covered by that regulation) • Promote integration of a systems approach to safety into the overall operation of the airport A systems approach to safety management addresses significant hazards and the possible risks these hazards may present to employees and the public. Individuals responsible for developing the SMS program should work with the persons that have direct responsibility for analyzing hazards, identifying control measures derived from that analysis, and ensuring those measures are effective. Similarly, individuals responsible for operations should have direct responsibility for the safety of those operations and should be given the resources to implement the necessary controls. Feedback is necessary to assess how well the SMS is working. This is achieved through safety oversight, performance monitoring, and continuous improvement processes. The SMS should include a visible non - punitive safety reporting system supported by management. The safety reporting system should permit feedback from personnel regarding hazards and safety- related concerns. The SMS should use this information to identify and address safety deficiencies. The safety reporting system may also identify and correct non- conformance to safety policy. Safety auditing is a core safety management activity. Similar to financial audits, safety audits provide a means for systematically assessing how well the organization is meeting its safety objectives. Top Management may choose to have an external agency audit the system (e.g., by a consultant or another airport operator). The safety audit, together with other safety oversight activities, provides feedback to managers concerning the overall safety performance of the organization. February 28, 2007 AC 150/5200 -37 Safety performance monitoring validates the SMS, confirming the organization's safety objectives. Through regular review and evaluation, management can pursue continuous improvements in safety management and may revise safety objectives to ensure that the SMS remains effective and relevant to the organization's operation. 2.5. SAFETY PROMOTION Safety Promotion includes: • Training and education • Safety communication • Safety competency and continuous improvement The Safety Manager provides current information and training relating to safety issues relevant to the specific operation of the airport. The provision of appropriate training to all staff, regardless of their level in the organization, is an indication of management's commitment to an effective SMS. Safety training and education should consist of the following: • A documented process to identify training requirements • A validation process that measures the effectiveness of training • Initial (general safety) job - specific training • Recurrent safety training • Indoctrination /initial training incorporating SMS • Training that includes human factors and organizational factors Training requirements and activities should be documented for each area of activity within the organization. A training file should be developed for each employee, including management, to assist in identifying and tracking employee training requirements and verifying that the personnel have received the planned training. Any training program should be adapted to fit the needs and complexity of the airport in question. At certificated airports this is already being done for training required by 14 CFR Part 139. The airport operator /safety manager should communicate safety goals and procedures to all employees. The safety management system should be visible in all aspects of the airport operation. Systems safety is a good business practice and should be promoted accordingly. The safety manager should communicate the health of the airport SMS program through bulletins, briefings and training. The safety manager should ensure that lessons learned from hazardous occurrence investigations and case history or experiences, both internally and from other organizations, are distributed widely. The communication should flow between the safety manager to the organization. Systems safety improvement will occur most efficiently if staff and AC 150/5200 -37 February 28, 2007 employees are actively encouraged to identify potential hazards and propose solutions. Some examples of organizational communication are: • Safety seminars • Safety letters, notices and bulletins • Safety lessons - learned • Bulletin boards, safety reporting drop boxes, and electronic reporting through web sites or email • A method to exchange safety - related information with other airport operators through regional offices or professional organizations • In the future, voluntary posting of safety- related information on an existing FAA web - based safety reporting system currently being used by air operators As part of a continuous improvement process, the common element of many quality programs; the evolution of systems safety is dependent upon the SMS lifecycle. As hazards are identified, risks determined and mitigated through corrective actions, system improvements through training and revised policies and procedures, then follow -up begins the safety process over again. The diagram in Figure 2 -1 gives a brief overview of how the SMS lifecycle might look at a large airport using tenant /operator safety committees. 0 February 28, 2007 AC 150/5200 -37 CHAPTER 3: SAFETY RISK MANAGEMENT (SRM) 3.1. General. SRM is a fundamental component of SMS. To be truly effective a SMS must have a formal risk assessment program that identifies and documents hazards on the airport. An SMS: • determines associated risk(s) • identifies the severity and probability of the occurring risk(s) • develops mitigation strategies as appropriate • applies, tracks, and monitors the mitigation strategy • assesses and modifies strategies as necessary • hazard is a condition, object or activity with the potential for causing damage, loss, or injury. • risk is the chance of loss or injury measured in terms of severity and probability. 3.2. SRM Background Information. SRM is a systematic, explicit, and comprehensive approach for managing safety risk at all levels throughout the airport. A comprehensive SMS using SRM will develop layers of safety built upon the measures taken to mitigate risk. These layers are examples of implemented protective measures such as vehicle driver's training programs, marking and lighting standards and reflective vests. An unsafe event can occur when gaps occur in the system's protective layers. These gaps are not static and may appear unexpectedly. In order for an incident or accident to take place there is normally a succession of gaps in a system that will line up and enable an event to occur. 3.3. The Five Phases of SRM. There are five phases to the SRM Process: Phase 1. Describe the system Phase 2. Identify the hazards Phase 3. Determine the risk Phase 4. Assess and analyze the risk Phase 5. Treat the risk (i.e., mitigate, monitor and track) Phase 1: Describe the system. When considering the environment of the airport system, consider all of the safety- related functions already outlined in the ACM. The existing safety AC 150/5200 -37 February 28, 2007 functions should steer the focus of the risk management analysis and will assist in determining potential mitigation strategies. Phase 2: Identify Hazards. In this phase, hazards to the system (i.e., operation, equipment, people, and procedures) are identified in a systematic, disciplined way. There are many ways to do this, but all require at least four elements: • Operational expertise • Training in SMS, and if possible, hazard analysis techniques • A simple, but well- defined, hazard analysis tool • Adequate documentation of the process The hazard identification effort should mirror the management structure and complexity of the airport in question. The airport manager at a small airport could conduct it alone, while it may be conducted by a committee or group at a larger airport. Regardless, the person or the group will require sufficient operations expertise, safety experience, and training to adequately conduct the assessment. The hazard identification stage considers all the possible sources of system failure. Depending on the nature and size of the system under consideration, these should include: • The equipment (example: construction equipment on a movement surface) • Operating environment (example: cold, night, low visibility) • Human element (example: shift work) • Operational procedures (example: staffing levels) • Maintenance procedures (example: nightly movement area inspections by airport electricians) • External services (example: ramp traffic by Fixed -Base Operator (FBO) or law enforcement vehicles) Phase 3. Determine the risk. In this phase, each hazard in its system context is identified to determine what risks exist, if any, that may be related to the hazard. In this phase, there is no determination of the severity or potential of the risk occurring. First, all potential hazards are identified and documented. Next, the hazards are subjected to an assessment of the possible severity and potential risk as described in Phase 4. In a very simple example, an airport may have identified the hazard of Foreign Object Damage (FOD) on the ramp, with the associated risk of the FOD being ingested into the engines of taxiing aircraft. That hazard and the identified risk would be documented before moving to 10 February 28, 2007 AC 150/5200 -37 Phase 4, a determination of the probability of that risk occurring, and the severity if such an event were to occur. Phase 4: Assess and Analyze the Risk. In this Phase, the airport operator estimates the level of risk such as by using the predictive risk matrix in Figure 3 -1. Risk is the composite of the predicted severity and likelihood of the outcome or effect (harm) of the hazard in the worst credible system state. In order to assess the risk of an accident or incident occurring, severity and likelihood are first determined. Severity is determined by the worst credible potential outcome. Less severe effects may be considered in addition to this, but at a minimum, the most severe effects are considered. Determination of severity is independent of likelihood, and likelihood should not be considered when determining severity. Over time, quantitative data may support or alter the determinations of severity and probability, but the initial risk determinations will most likely be qualitative in nature, based on experience and judgment more than data. The risk levels used in the matrix can be defined as: • High risk — Unacceptable level of risk: The proposal cannot be implemented or the activity continued unless hazards are further mitigated so that risk is reduced to medium or low level. Tracking and management involvement are required, and management must approve any proposed mitigating controls. Catastrophic hazards that are caused by: (1) single -point events or failures (2) common -cause events or failures (3) undetectable latent events in combination with single point or common cause events are considered high risk, even if extremely remote • Medium risk — Acceptable level of risk: Minimum acceptable safety objective; the proposal may be implemented or the activity can continue, but tracking and management are required. Low risk — Target level of risk: Acceptable without restriction or limitation; the identified hazards are not required to be actively managed, but are documented. Hazards are ranked according to the severity and the likelihood of their risk, which is illustrated by where they fall on the risk matrix. Hazards with high risk receive higher priority for treatment and mitigation. NOTE: At U.S. airports, many of the airport operators' actions are governed by standards issued by the FAA. The FAA would not expect an airport operator to conduct an independent risk analysis of an action or condition directed by a mandatory FAA standard or specification. Any discretionary action or decision by the airport operator in the application of the standards should still be analyzed. 11 AC 150/5200 -37 February 28, 2007 Figure 3 - 1. Predictive Risk Matrix Phase 5: Treat the risk. In this phase, the airport operator develops options to mitigate the risk and alternative strategies for managing a hazard's risk(s). These strategies can be used to reduce the hazard's effects on the system. It should be noted that the majority of risk management strategies address medium and high -risk hazards. Low -risk hazards may be accepted after considering risk. The risk management activity should identify feasible options to control or mitigate risk. Some options could include: • Avoidance: selecting a different approach or not participating in, or allowing, the operation or procedure • Assumption: accepting the likelihood, probability, and consequences associated with the risk • Control: development of options and alternatives that minimize or eliminate the risk 12 February 28, 2007 • Transfer: shifting the risk to another area AC 150/5200 -37 Prior to operational use, a mitigation strategy is validated and verified (as operational experience or data may support). Once validated, verified, and accepted, it then becomes an existing element of the system or operation. Next, the effect of the proposed mitigation measure on the overall risk is assessed. If necessary, the process is repeated until a measure or combination of measures is found that reduces the risk to an acceptable level. When risk is determined to be unacceptable, it is necessary to identify and evaluate risk mitigation measures by which the probability of occurrence and /or the severity of the hazard could be reduced. When risk mitigation strategies cross organizations, risk acceptance and approval from stakeholder organizations is necessary. Risk mitigation may require a management decision to approve, fund, schedule, and implement one or more risk mitigation strategies. The objective of this phase is to implement appropriate and cost- effective risk mitigation plans to mitigate hazards. Appropriate risk mitigation strategies are developed, documented, selected, and implemented. Hazard tracking is the core of this risk management phase. Each medium and high -risk hazard is tracked until its risk is mitigated to an acceptable level and the effectiveness of the controls mitigating the risk is verified. The hazard record is kept for the lifecycle of the system change. When assessing risk using a group or committee, remember that interactions between safety - group participants with varying experience and knowledge tend to lead to broader, more comprehensive, and more balanced consideration of safety issues than if an individual conducts the assessment. Thus, if possible, group analysis by appropriate subject matter experts, is recommended. Utilization of safety risk management increases the level of safety in airport operations, maintenance, and new systems. Through SRM, hazards are assessed, mitigated, documented, tracked, and operational data are continuously monitored to provide feedback on hazards. Understanding the consequences of risk increases the ability to anticipate and control the impacts of internal and /or external events on a program. Accountability is the foundation of an effective SMS. By accepting the safety risk mitigation strategy, the appropriate management official is certifying acceptance and accountability. Applying the Concept of SRM: Appendix 1 provides an example of how Safety Risk Management could be applied to enhance safety during airfield construction. 13 February 28, 2007 AC 150/5200 -37 APPENDIX 1: EXAMPLE: APPLICATION OF SRM TO A SAFETY DURING CONSTRUCTION PLAN NOTE: Because of the many variables within the development of a construction plan this case will focus on only one hazard and risk example. XYZ Airport has two runways and is planning to install drainage near the approach end of the secondary runway. Construction vehicles must cross the primary runway to gain access to the construction site. Because there are numerous operations during the day, a decision is made to do work at night during lighter traffic. The Airport Safety Manager understands a need to develop a plan for night construction to avoid interruption of day operations. It is clear that there are many challenges in developing such a plan. To begin formulating the plan, the Airport Safety Manager consults with a designated Construction Safety Committee and follows the guidance outlined in the FAA Advisory Circular 150/5370 -2, Operational Safety on Airports During Construction. One area of concern found during this process was the movement of construction vehicles to and from the work site in a way that would avoid runway incursions. In evaluating this process, the committee decides to follow the concept of systems safety and apply SRM to evaluate their decisions. Phase 1. Describe the System: • Runway environment during construction at night, including a high volume of construction vehicle traffic between the ramp and the construction site • Existing driver training program and the use of escorts for construction vehicles • Air Traffic Control Tower, but no radio communications with construction vehicles, which are not radio- equipped • Signs, markings and lighting for the taxiways, runways, and construction area Phase 2. Identify the Hazards: • Construction vehicles crossing primary runway Phase 3. Determine the Risk: • Aircraft hitting a construction vehicle on the primary runway Phase 4. Assess and Analyze the Risk: Using the Predictive Risk Matrix, it is the opinion of the committee there is a remote chance a construction vehicle will deviate from prescribed guidelines and cross the primary runway without an escort. There are night air carrier operations at the airport, so there is a remote chance that an aircraft would conflict with a crossing vehicle. The likelihood that a construction vehicle crossed the runway and caused an aircraft accident 15 AC 150/5200 -37 February 28, 2007 is therefore remote or extremely improbable, but the committee understands that the severity of such an incident could be catastrophic • The committee agrees that the proposed means of getting construction vehicles to the construction site is unacceptable and must be mitigated Phase 5. Treat the Risk: • The committee decides to control the risk by using an existing airport perimeter road to gain access to the construction site. All construction vehicles will then be escorted on the perimeter road. Use of the perimeter road may delay construction vehicles due to driving distance but it's in the best interest of safety • The committee documents this decision process for future follow -up with the Airport Safety Manager 16 n a 1 27.60% w:�r,ort ERA 7,696 72.40% REVIEWED BY COUNCIL NO ACTION TAKEN Date: C�`IC�I�Z r August 2012 Enplanements GRANT 2,934 Month ERA AVIATION GRANT AVIATION Total YTD in 2012 2011 Change from 2011 KENAI AVIATION Combined Month Total January 5,436 2,179 7,615 6,782 833 171 7,786 February 5,308 2,190 7,498 6,698 800 158 7,656 March 5,294 2,231 7,525 7,193 332 192 7,717 April 4,878 2,092 6,970 6,609 361 194 7,164 May 6,152 2,339 8,491 6,971 1,520 312 8,803 June 5,752 2,256 81008 7,659 349 323 8,331 July 8,391 2,903 11,294 10,676 618 362 11,656 August 7,696 2,934 10,630 10,402 228 416 11,046 September 0 7,896 0 October 0 8,142 0 November 0 7,517 0 December 0 7,465 p Totals 48,907 19,124 68,031 1 94,010 1 5,041 2,128 70,159 AUGUST 2011 $15,656 2014 $26,759 30000 27500 25000 22500 20000 17500 15000 12500 10000 7500 5000 2500 0 Terminal - Vehicle Parking Revenues 2 Total $204,669 FY YTD 1 $40,831 Vehicle Parking Revenues Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun ■ FY12 FY13 T_f r. II be nal FLOAT PLANE BASIN ACTIVITY M 2008-2012 Municipal Airpor — — — — — — — — — — — — — — ------------- - — — — — — — — — — — — — — — — — — — - - - -- OPERATIONS — — — — — — — — — Month ------ 2012 2011 2010 - 2009 - - - -- 2008 MAY $521 12 49 109 118 66 JUNE $2,714 149 135 170 190 118 JULY $3,252 172 162 228 242 242 AUGUST SEPTEMBER 195 124 192 278 192 SEPTEMBER 29 86 83 146 119 OCTOBER $13,451 $ 10,405 56 20 68 48 NOVEMBER Closed Closed Closed Closed Total 557 612 802 1042 785 ------------------------------- ------------------- FUEL SALES ------ -- - - - - - - -- - - - -- Month 2012 2011 2010 2009 2008 MAY $292 $150 $521 $368 $561 JUNE $3,206 $2,558 $2,027 $2,714 $3,443 JULY $2,533 $4,421 $3,870 $2,815 $3,252 AUGUST $5,929 $3,535 $2,497 $3,390 $3,506 SEPTEMBER $824 $2,211 $1,447 $2,498 $1,735 OCTOBER $576 $43 $642 $100 Total $12,783 $13,451 $ 10,405 $12,427 $12,596 Slips Rented Private Commerical Basin opened on May 23, 2012 Rev 6/2008 hai Municipal Airport Airport Improvement Program: Tkem ii c* September 2012 Airport Manager's Report Master Plan — The Phase 1 report is under final review by City Administration. After City Administration approval, the report will be sent to the FAA for review and approval. Phase 2 which includes Facility Requirements, Alternatives and Environmental Conditions and Impacts has also begun. Tree Obstruction Clearing Proiect: The bid documents were revised are under final review by City Administration. After approval, the project will be rebid. Airfield Marking — Plans and specs are complete and the City's frontend bid documents are being prepared by the Airport and City Administration. The project will be advertised and bid with painting to start next summer. In -house Projects: Airfield maintenance: Crack sealing, mowing, gate & fence repair, winter sand screening, and brush cutting continue. Beautification projects: KENAI sign project, vinyl replacement on stairs to terminal 2nd floor, replace terminal entrance doors, asphalt repair in the terminal parking lot; and terminal wall painting. Temporary Equipment Operator List: This position was advertised for three weeks with only 8 applicants; 6 met the license requirements and are scheduled for interviews. This is to establish a call -out list for temporary equipment operators who will work on the airport on an on -call, as- needed basis. Temporary Staff: Sheryl Oldham is temporarily filling in for Erica while she is on leave enjoying her new baby girl. Many of you will remember Sheryl from the Legal Department at City Hall. She is a real asset to the office since she is very familiar with many aspects of City business. 2012 -08 �t{re a o KENAI, ALASKA I WOOD lem /10(6 Suggested 1 CITY OF KENAI ORDINANCE NO. 2651 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, WAIVING CERTAIN LEASING PROVISIONS IMPOSED BY KENAI MUNICIPAL CODE SECTIONS 21.10.100, 21.10.170, AND 21.10.090; DETERMINING THE LEASE TERM; AND APPROVING THE FORM OF LEASE WITH RESPECT TO LOT 7A -1, BLOCK 2, FBO SUBDIVISION, LOCATED WITHIN THE AIRPORT RESERVE, TO THE FEDERAL AVIATION ADMINISTRATION FOR THE USE OF AN AUTOMATED FLIGHT SERVICE STATION. WHEREAS, in 1983, when the Federal Aviation Administration (FAA) decided to decommission flight service stations around the state, the City of Kenai submitted a proposal for an automated flight service station to be constructed by the City and located in Kenai on Lot 7A -1, Block 2, FBO Subdivision; and, WHEREAS, on June 10, 1983, the Federal Aviation Administration (FAA) entered into a lease with the City for the Automated Flight Service Station (AFSS) for an annual rent of $1.00 per year and providing for twenty, one -year extensions to September 30, 2027 under the same terms; and, WHEREAS, on May 6, 2010, the City submitted a lease proposal that was subsequently accepted by the FAA and that was based on an independent appraisal that analyzed the City-owned office space and property for the purpose of estimating market rent and which determined a lease rate of $10,000.00 per month; and, WHEREAS, on February 8, 2012, the FAA submitted the proposed lease on its Standard Space Lease Form which includes rent in the amount of $10,000.00 per month for a term of ten (10) years as well as the requirement that the City meet all Architectural Barriers Act Accessibility (ABAAS) requirements within twelve (12) months; and, WHEREAS, pursuant to KMC 21.10.100, 21.10.160, and 21.10.170, the rental rate for land within the Airport Reserve shall be determined by a zone -based square foot lease rate, which values lease lots as -if vacant with no consideration of existing buildings; and, WHEREAS, pursuant to KMC 21.10.090, the length of term for a lease granted for land within the Airport Reserve shall be based on the amount of investment the applicant proposes unless the City determines a shorter lease term is in the best interest of the City; and, WHEREAS, pursuant to KMC 21.10.150(b), the City Manager may deviate from the standard lease form adopted under Code, if the Manager believes the action is in the best interest of the City and the form is approved by the City Attorney; and, New Text Underlined; [DELETED TEXT BRACKETEDI Ordinance No. 2651 -2012 Page 2 of 2 WHEREAS, the City Manager believes that rent in the amount of $10,000.00 per month for a term of ten (10) years as proposed on the FAA's Standard Space Lease Form is in the best interests of the City and the form has been approved by the City Attorney; and, WHEREAS, the Council of the City of Kenai finds that in this instance waiving the provisions of KMC 21.10.100, 21.10.170, and 21.10.090 is in the best interests of the City of Kenai; and, WHEREAS, the Council of the City of Kenai finds that rent in the amount of $10,000.00 per month for a term of ten (10) years as proposed on the FAA's Standard Space Lease Form is in the best interests of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Waiver of Ordinance Requirements: The Council of the City of Kenai waives the following leasing provisions of the Kenai Municipal Code as it applies to the lease of Lot 7A -1, Block 2, FBO subdivision, located within the Airport Reserve, to the FAA for the use of an automated flight service station only: KMC21.10.100, 21.10.170, and 21.10.090 with respect to rental rate determination, otherwise requiring the rental rate to be determined by a zone -based appraisal. Section 2. Determination of Lease Term: The Council of the City of Kenai determines that a ten (10) year lease term for Lot 7A -1, Block 2, FBO subdivision, located within the Airport Reserve, to the FAA for the use of an automated flight service station is in the best interests of the City. Section 3. Approval of Lease Form: The Council of the City of Kenai approves the Standard Space Lease From utilized by the FAA for the lease of Lot 7A -1, Block 2, FBO subdivision; located within the Airport Reserve, to the FAA for the use of an automated flight service station. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this 3rd day of October, 2012. YfTNST: dra Modi , City Clerk PAT PORTER, O. Introduced: September 19, 2012 Adopted: October 3, 2012 Effective: November 3, 2012 New Text Underlined; [DELETED TEXT BRACKETED] "Villa ye with a Past Gi with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 l Telephone: 907 - 283 -7535 / FAX: 907- 283 -3014 IIII \�ttie cify uf; 1992 MEMO* TO: City Council FROM: Rick Koch, City Manager DATE: September 12, 2012 SUBJECT: Automated Flight Service Station Lease Ordinance No. 2651 -2012 The City has received a request for a renewal of the FAA's lease of the Automated Flight Service Station (AFSS). The FAA has leased this property for the purpose of operation the AFSS and SACOM facilities dating back to 1983, when the City first entered into a lease with the FAA for an annual rent of $1.00 per year. The attached lease proposal includes rent in the amount of $10,000.00 per month for a term of ten years as well as a requirement that the City meet all Architectural Barriers Act Accessibility (ABAAS) requirements within twelve months. The City Manager recommends Council approval of Ordinance 2651 -2012. The attached proposed lease as well as a draft copy of Ordinance No. 2651 -2012 is scheduled on the September 26 Planning Commission Agenda for review and comment. The Airport Commission has previously reviewed and discussed the lease with Administration. An informational copy will be provided in their next Commission packet. The recommendations of the P & Z Commission will be forwarded to the City Council at its October 3 Council Meeting for consideration in conjunction with the public hearing on Ordinance No. 2651 -2012. Attachments "'V'�laye with a Past, C# with a Future MEMO: 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 11111,1 1992 TO: Rick Koch, City Manager FROM: Marilyn Kebschull, Planning Administration DATE: September 27, 2012 SUBJECT: Ordinance No. 2651 -2012 — Automated Flight Service Station Lease Lease Renewal — Lot 7A -1, Block 2, FBO Subdivision No. 5 At their meeting on September 26`h, the Planning and Zoning Commission reviewed Ordinance No. 2651 -2012 and the lease renewal for the Automated Flight Service Station. As is required under Kenai Municipal Code, I reviewed the application to determine if the lease conforms to the Airport Layout Plan (ALP), Comprehensive Plan, zoning, and future airport projects. Based on my review, I found that the lease conforms to the ALP, Comprehensive Plan, zoning, and that there are no future airport projects planned for the property. A copy of the review is attached. The Commission voted unanimously to support the lease renewal but recommended the draft lease be further reviewed to ensure the lease correctly identifies which services and utilities the lessor will be responsible to provide. Specifically, it appears there may be inconsistency between Page 2, Item 6 of the lease and Page 4, Item B4 of Attachment A. Attachment "Villaye with a Past, C# with a Future' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -75351 FAX: 907 - 283 -3014 1IIII1 1992 MEMO: TO: Planning & Zoning Commission FROM: Marilyn Kebschull, Planning Administration DATE: September 18, 2012 SUBJECT: Lease Renewal —Lot 7A -1, Block 2, FBO Subdivision No. 5 Federal Aviation Administration (FAA) The City has received a request for a renewal of the FAA's lease of the Automated Flight Service Station (AFSS). Under KMC 21.10.080 lease amendments or renewals are subject to the requirements of KMC 21.10.070. The code requires the City Planner to review the application for conformance with the Airport Land Use Plan (ALP), Comprehensive Plan, municipal zoning, and future airport improvement projects and requires referral of the application to the Planning and Zoning Commission for review and comment. This property is located at 470 North Willow Street and is located in the Airport Reserve. ➢ Airport Land Use Plan — The ALP was approved in July, 2009. On sheet 13 of the plan, the property is identified as "Aviation Related Activities." Sheet 14 of the approved ALP, identifies the parcel as "Aviation Support." The Supplemental Plan defines Aviation Support/Govermnental as, "Areas used by government activities required for the operation and maintenance of the airport and air navigation such as the air traffic control tower, flight service station, airport maintenance facilities, airport rescue and fire fighting, and airport storage areas." The proposed uses conform to the ALP. ➢ Comprehensive Plan — The City of Kenai Comprehensive Land Use Plan identifies this area as Airport Industrial. The Airport Industrial area is defined as, "The Airport Industrial district identifies airport lands reserved for the Kenai Municipal Airport and its future expansion, and tracts needed for present and future aviation - related uses and activities. The proposed uses conform to the Comprehensive Plan. Lease Renewal — Lot 7A -1, Block 2, FBO Subdivision No. 5 Federal Aviation Administration (FAA) Page 2 ➢ Zoning —The property is zoned IL — Light Industrial. Airports and related uses are permitted witbin the zone. ➢ Airport Improvement Projects —There are no airport improvement projects planned for this property. Based on the information provided in the amended lease application, the proposed lease conforms to the ALP, Comprehensive Plan, and Zoning. In Ordinance No. 2651 -2012, the City Manager is recommending a deviation from the requirements of the municipal code under Title 21 which identifies provisions for lease rates and terms. The City Manager is proposing to renew the FAA's lease for a period of 10 years for the lease rate of $10,000 per month. The City Manager has asked the Commission to review the proposed lease amendment. Attached for your review are Ordinance No. 2651 -2012 and the attachments. The Commission's comments will be forwarded to City Council at their meeting on October 3, 2012. cc: Mary Bondurant, Airport Manager U.S. DEPARTMENT OF TRANSPORTATION FEDERAL AVIATION ADMINISTRATION LEASE for Real Property Lease No: DTFAWN -13 - L — 00002 Geographical Location: Kenai, Alaska 99611 Section 1— SPACE LEASE: 1. THIS LEASE, entered into by and between the City of Kenai whose interest in the property hereinafter described is that of owner, hereby referred to as LESSOR, and the United States of America, hereinafter referred to as the GOVERNMENT OR FAA: WITNESSETH: The Parties hereto, and for the consideration hereinafter mentioned, covenant and agree as follows: 2. DESCRIPTION - The Lessor hereby leases to the FAA the following described premises: 7A -1, Block 2 FBO Subdivision No. 5, according to Plat No. 92 -60, in the Kenai Recording District, Third Judicial District, State of Alaska. Comprising more or less 3.445 acres, and a 3.214 acre building restriction clear zone easement, which will be utilized for the Automated Flight Service Station (AFSS) building which contains 10,812 square feet of space, and Satellite Communications Center (SACOM) Facilities at 470 North Willow Street, Kenai, Alaska. 3. TERM - To have and to hold, for the term commencing on October 1, 2012 and continuing through September 30, 2022 inclusive, PROVIDED, that adequate appropriations are available from year to year for the payment of rentals. This lease succeeds lease number DTFAAL -08 -L- 00001, which expires on September 30, 2012. 4. CANCELLATION - The GOVERNMENT may terminate this lease at any time, in whole or in part, if the Real Estate Contracting Officer (RECO) determines that a termination is in the best interest of the Government, on or after December 31, 2012 by giving at least 120 -day's notice in writing to the Lessor. No rental shall accrue after the effective date of termination. Said notice shall be computed commencing with the day after the date of mailing. 5. RENTAL - Rent in the amount of $10,000.00 per month shall be payable to the Lessor in arrears and will be due on the first workday of each month without the submission of invoices or vouchers. Subject to available appropriations. Rent shall be considered paid on the date a check is dated or an electronic funds transfer is made. Rent for a period of less than a month shall be prorated. Checks will be made payable to: City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 -7750 2.6.8 Standard Space Lease Form April 2010 OMB Control No. 2120 -0595 KENAI DTFAWN -I3 -L -00002 Page 1 of 16 6. SERVICES AND UTILITIES (To be provided by Lessor as part of rent. Services shall be Building Standard, unless level of service is prescribed elsewhere in the lease.) Services, utilities, and maintenance will be provided daily, extending from 6 a.m. to 6 p.m. except Saturday, Sunday, and Federal holidays. Services supplied to technical equipment shall be supplied 24 hours a day, and seven days a week. The GOVERNMENT shall have access to the leased premises at all times, including the use of electrical services, toilets, lights, elevators, and GOVERNMENT office machines without additional payment. HEAT ONLY 72 DEG ELECTRICITY SPECIAL POWER — NOTED BELOW WATER (hot & cold) SNOW REMOVAL TRASH REMOVAL CHILLED DRINKING WATER HVAC — 68 -72 DEG. F DAILY TOILET SUPPLIES & CLEANING DAILY JANITORIAL SERV. & SUPPLIES GROUND MAINTENANCE WINDOW WASHING — Frequency twice yearly CARPET CLEANING — Frequency every 3 years INITIAL & REPLACEMENT LAMPS, TUBES, & BALLASTS PAINTING — Frequency (5) five years Space Frequency (10) ten years Public Areas OTHER (SPECIFY) parking lot stripping (3) three years Section 2 - GENERAL CLAUSES: 7A. INSPECTION (10/96) - The GOVERNMENT reserves the right, at any time after the lease is signed and during the term of the lease, to inspect the leased premises and all other areas of the building to which access is necessary to ensure a safe and healthy work environment for the GOVERNMENT tenants and the Lessor's performance under this lease. The GOVERNMENT shall have the right to perform sampling of suspected hazardous conditions. 7B. DAMAGE BY FIRE OR OTHER CASUALTY (10/96) - If the building or structure is partially or totally destroyed or damaged by fire or other casualty or if environmentally hazardous conditions are found to exist so that the leased premises is untenantable as determined by the GOVERNMENT, the GOVERNMENT may terminate the lease, in whole or in part, immediately by giving written notice to the Lessor and no further rental will be due. 7C. MAINTENANCE OF THE PREMISES (10/96) - The Lessor shall maintain the demised premises, including the building, grounds, and all equipment, fixtures, and appurtenances furnished by the Lessor under this lease, in good repair and tenantable condition. 2.6.8 Standard Space Lease Form K NAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 2 of 16 The lessor shall recoat /replace the roof in 2013, and recoat every ten years thereafter. 7D. FAILURE IN PERFORMANCE (10/96) - In the event the Lessor fails to perform any service, to provide any item, or meet any requirement of this lease, the GOVERNMENT may perform the service, provide the item, or meet the requirement, either directly or through a contract. The GOVERNMENT may deduct any costs incurred for the service or item, including administrative costs, from the rental payments. No deduction of rent pursuant to this clause shall constitute default by the GOVERNMENT on this lease. 7E. DEFAULT BY LESSOR (10/96) - (1) Each of the following shall constitute a default by Lessor under this lease: (a) If the Lessor fails to perform the work required to deliver the leased premises ready for occupancy by the GOVERNMENT with such diligence as will ensure delivery of the leased premises within the time required by the lease agreement, or any extension of the specified time. (b) Failure to maintain, repair, operate or service the premises as and when specified in this lease, or failure to perform any other requirement of this lease as and when required provided such failure which shall remain uncured for a period of time as specified by the Real Estate Contracting Officer, following Lessor's receipt of written notice thereof from the Real Estate Contracting Officer. (c) Repeated failure by the Lessor to comply with one or more requirements of this lease shall constitute a default notwithstanding that one or all failures shall have been timely cured pursuant to this clause. (2) If default occurs, the GOVERNMENT may, by written notice to the Lessor, terminate the lease in whole or in part. 7F. COMPLIANCE WITH APPLICABLE LAWS (10/96) - The Lessor shall comply with all federal, state and local laws applicable to the Lessor as owner or lessor, or both, of building or premises, including, without limitation, laws applicable to the construction, ownership, alteration or operation of both or either thereof, and will obtain all necessary permits, licenses and similar items at Lessor's expense. This lease shall be governed by Federal law. 7G. ACCEPTANCE OF SPACE (8/02) — This property is presently being leased and occupied by the Government. This lease supersedes lease agreement DTFAAL -08 -L- 00001. For the purposes of this lease the Government accepts the premises for occupancy, contingent upon all ABAAS requirements being met within twelve (12) months of the commencement date of this Lease, or earlier. 7H. ALTERATIONS (10/96) - The GOVERNMENT shall have the right during the existence of this lease to make alterations, attach fixtures, and erect structures or signs in or upon the premises hereby leased, which fixtures, additions or structures so placed in, on, upon, or attached to the said premises shall be and remains the property of the GOVERNMENT and may be removed or otherwise disposed of by the GOVERNMENT 2.6.8 Standard Space Lease Form KENAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 3 of 16 subject to the Lessor's approval not to be unreasonably withheld. The Parties hereto mutually agreed and understood, that no restoration rights shall accrue to the Lessor for any alterations to the leased premises under this lease, and that the GOVERNMENT shall have the option of abandoning alterations in place, when tenninating the lease, at no additional cost. 7I. ACCESSIBILITY (10/06) - The Building and the leased premises shall be accessible to persons with disabilities pursuant to the Architectural Barriers Act and Rehabilitation Act as detailed in the Architectural Barriers Act Accessibility Standards (ABAAS) 41 CFR Parts 102 -71, 102 -72, et.al and all applicable state and local accessibility laws and regulations. 7J. CHANGES (8/02) (1) The Real Estate Contracting Officer may at any time, by written order, make changes within the general scope of this lease in any one or more of the following: Work or services; Facilities or space layout; or Amount of space, provided the Lessor consents to the change. (2) If any such change causes an increase or decrease in Lessor's cost of or the time required for performance under this lease, whether or not changed by the order, the Real Estate Contracting Officer shall modify this lease to provide for one or more of the following: An equitable adjustment in the rental rate; A lump sum equitable adjustment; or An equitable adjustment of the annual operating costs per Occupiable square foot specified in the SFO. (3) The Lessor shall assert its right to an adjustment under this clause within 30 days from the date of receipt of the change order and shall submit a proposal for adjustment. Failure to agree to any adjustment shall be a dispute under the Protest and Disputes clause. However, nothing in this clause shall excuse the Lessor from proceeding with the change as directed. (4) Absent such written change order, the Government shall not be liable to Lessor under this clause. 7K. OFFICIALS NOT TO BENEFIT (10/96) - No member of or delegate to Congress, or resident commissioner, shall be admitted to any share or part of this contract, or to any benefit arising from it. However, this clause does not apply to this contract to the extent that this contract is made with a corporation for the corporation's general benefit. 7L. COVENANT AGAINST CONTINGENT FEES (8/02) - The Lessor warrants that no person or agency has been employed or retained to solicit or obtain this contract upon an agreement or understanding for a contingent fee, except a bona fide employee or agency. For breach or violation of this warranty, the GOVERNMENT shall have the right to 2.6.8 Standard Space Lease Form KENAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 4 of 16 annul this contract without liability or, in its discretion, to deduct from the contract price or consideration, or otherwise recover the full amount of the contingent fee. 7M. ANTI- KICKBACK (10/96) - The Anti - Kickback Act of 1986 (41 U.S.C. 51 -58) (the Act), prohibits any person from (1) Providing or attempting to provide or offering to provide any kickback; (2) Soliciting, accepting, or attempting to accept any kickback; or (3) Including, directly or indirectly, the amount of any kickback in the contract price charged by a prime Contractor to the United States or in the contract price charged by a subcontractor to a prime Contractor or higher tier subcontractor. 7N1. CONTRACT DISPUTES (11/03) (a) All contract disputes and arising under or related to this lease contract shall be resolved through the Federal Aviation Administration (FAA) dispute resolution system at the Office of Dispute Resolution for Acquisition (ODRA) and shall be governed by the procedures set forth in 14 C.F.R. Parts 14 and 17, which are hereby incorporated by reference. Judicial review, where available, will be in accordance with 49 U.S.C. 46110 and shall apply only to final agency decisions. A Lessor may seek review of a final FAA decision only after its administrative remedies have been exhausted. (b) All Contract Disputes shall be in writing and shall be filed at the following address: Office of Dispute Resolution for Acquisition, AGC -70, Federal Aviation Administration, 800 Independence Avenue, S.W., Room 323, Washington, DC 20591, Telephone: (202) 267 -3290, Facsimile: (202) 267 -3720 (c) A contract dispute against the FAA shall be filed with the ODRA within two (2) years of the accrual of the lease contract claim involved. A contract dispute is considered to be filed on the date it is received by the ODRA. The full text of the Contract Disputes clause is incorporated by reference. Upon request the full text will be provided by the RECO. 7N2. PROTEST (11/03) (a) Protests concerning Federal Aviation Administration Screening Information Requests (SIRS) or awards of lease contracts shall be resolved through the Federal Aviation Administration (FAA) dispute resolution system at the Office of Dispute Resolution for Acquisition (ODRA) and shall be governed by the procedures set forth in 14 C.F.R. Parts 14 and 17, which are hereby incorporated by reference. Judicial review, where available, will be in accordance with 49 U.S.C. 46110 and shall apply only to final agency decisions. A protestor may seek review of a final FAA decision only after its administrative remedies have been exhausted. 2.6.8 Standard Space Lease Form KENAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 5 of 16 (b) Offerors initially should attempt to resolve any issues concerning potential protests with the Real Estate Contracting Officer (RECO). (c) Protests shall be in writing and shall be filed at: Office of Dispute Resolution for Acquisition, AGC -70, Federal Aviation Administration, 800 Independence Avenue, S.W., Room 323, Washington, DC 20591, Telephone: (202) 267 -3290, Facsimile: (202) 267 -3720 (1) At the same time as filing the protest with the ODRA, the protestor shall serve a copy of the protest on the Real Estate Contracting Officer (RECO). (2) (d) A protest is considered to be filed on the date it is received by the ODRA and shall be filed: (i) Not later than seven (7) business days after the date the protester knew or should have known of the grounds for the protest; or (ii) If the protester has requested a post -award debriefing from the RECO, not later than five (5) business days after the date on which the RECO holds that debriefing. The full text of the Protest clause is incorporated by reference. Upon request the full text will be provided by the RECD. 70. EXAMINATION OF RECORDS (8/02) - The Comptroller General of the United States; the Administrator of FAA or a duly authorized representative from either shall, until 3 years after final payment under this contract have access to and the right to examine any of the Lessor's directly pertinent books, documents, paper, or other records involving transactions related to this contract. 7P1 - PAYMENT BY ELECTRONIC FUND TRANSFER (OCT -06): (a) Method of payment. 1. All payments by the Government under this contract will be made by electronic funds transfer (EFT), except as provided in paragraph (a) (2) or (a) (3) of this lease. As used in this clause, the term "EFT" refers to the funds transfer and may also include the payment information transfer. Payment information transfer refers to the payment information normally sent with a payment to assist the contractor in associating the payment to specific contracts. 2.6.8 Standard Space Lease Form April 2010 OMB Control No. 2120 -0595 KENAI DTFAWN -I3 -L -00002 Page 6 of 16 2. In the event the Government is unable to release one or more payments by EFT, the Contractor agrees to either; a. Accept payment by check or b. Request the Government to extend the payment due date until such time as the Government can make payment by EFT (but see paragraph (d) of this clause). 3. hi the event that the Contractor is granted a waiver from EFT under the exceptions as provided for in FAA AMS Section T3.3.1.A -7, the Government payments will be made by check. A waiver from EFT is not permanent, and the Contractor must register for EFT when the circumstances that justified the waiver change. (b) Contractor's EFT information. The Government will make payment to the Contractor using the EFT information contained in the Central Contractor Registration (CCR) database. In the event that the EFT information changes, the Contractor will be responsible for providing the updated information to the CCR database (Reference Clause, "Central Contractor Registration - Real Property "). If the Contractor is granted an exemption from CCR, the contractor will follow the requirements of alternate clause "Contractor Payment Information - Non - CCR". (c) Mechanisms for EFT payment. The Government may make payment by EFT through either the Automated Clearing House (ACH) network, subject to the rules of the National Automated Clearing House Association, or the Fedwire Transfer System. The rules governing Federal payments through the ACH are contained in 31 CFR Part 210. (d) Suspension of payment. If the Contractor's EFT information in the CCR database is incorrect, then the Government is not required to make payments to the Contractor under this contract until correct EFT information is entered into the CCR database, and any invoice or contract financing request submitted during this period of noncompliance will be deemed not to be a proper invoice for the purpose of prompt payment under this contract. In such instances, the late interest payment terms of the contract regarding notice of an improper invoice and delays in accrual of interest penalties apply. (e) Liability for incomplete or erroneous transfers. 1. If an incomplete or erroneous transfer occurs because the Government used the Contractor's EFT information incorrectly, the Government remains responsible for, 2.6.8 Standard Space Lease Form KENAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 7 of 16 (i) Making a correct payment; (ii) Paying any late payment penalty due; and (iii) Recovering any erroneously directed funds. 2 If an incomplete or erroneous transfer occurs because the Contractor's EFT information was incorrect, or was revised within 30 days of Government release of the EFT payment transaction instruction to the Federal Reserve System, and, (i) If the funds are no longer under the control of the payment office, the Government is deemed to have made payment and the Contractor is responsible for recovery of any erroneously directed funds; or (ii) If the funds remain under the control of the payment office, the Government will make payment under the provisions of paragraph (d)) "Suspension of Payment ". (f) EFT and payment terms. A payment will be deemed to have been made in a timely manner in accordance with the payment terms of this contract if, in the EFT payment transaction instruction released to the Federal Reserve System, the date specified for settlement of the payment is on or before the payment due date, provided the specified payment date is a valid date under the rules of the Federal Reserve System. (g) EFT and assignment of claims. If the Contractor assigns the proceeds of this contract, as provided for in the assignment of claims terms of this contract, the Contractor will require that the assignee register separately in the CCR database and that the assignee agree that payments will be made by EFT in accordance with the terms of this clause. The requirements of this clause will apply to the assignee as if it were the Contractor. EFT information that shows the ultimate recipient of the transfer to be other than the Contractor or the CCR registered assignee is incorrect EFT information within the meaning of paragraph (d) "Suspension of Payment" clause. (h) EFT and Change of Name or Ownership Changes. If the Contractor transfers ownership of the property under lease or changes its business name, it will follow the requirements of section (g) of clause, "Central Contractor Registration - Real Property ". (i) Liability for change of EFT information by financial agent. The Government is not liable for errors resulting from changes to EFT information made by the Contractor's financial agent. 2.6.8 Standard Space Lease Form April 2010 OMB Control No. 2120 -0595 KENAI DTFAWN -I3 -L -00002 Page 8 of 16 6) Payment information. The accounting office will forward to the Contractor available payment information that is suitable for transmission as of the date of release of the EFT instruction to the Federal Reserve System. The Government may request the Contractor to designate a desired format and method(s) for delivery of payment information from a list of formats and methods the payment office is capable of executing. However, the Government does not guarantee that any particular format or method of delivery is available at any particular payment office and retains the latitude to use the format and delivery method most convenient to the Government. The Contractor can obtain detailed payment information by registering for the US Treasury PAID system. This can be done on the internet by logging onto the website: htti)s://fmsai)i)s.treas.gov/pai . If the Government makes payment by check in accordance with paragraph (a) of this clause, the Government will mail the payment information to the remittance address contained in the contract and CCR database. 7P2 - CENTRAL CONTRACTOR REGISTRATION - REAL PROPERTY (OCT -06) The FAA uses the Central Contractor Registration (CCR) system as the primary means to maintain Contractor information required for payment under any FAA contract. (a) Definitions. As used in this clause for: (1) "Central Contractor Registration (CCR) database" means the primary Government repository for Contractor information required for the conduct of business with the Government. (2) "Contractor" is synonymous with "Lessor" for real property leases or other contracts (3) 'Data Universal Numbering System (DUNS) number" means the 9 -digit number assigned by Dun and Bradstreet, Inc. (D &B) to identify unique business entities. (4) 'Data Universal Numbering System +4 (DUNS +4) number" means the DUNS number assigned by D &B plus a 4- character suffix that may be assigned by a business concern. (D &B has no affiliation with this 4- character suffix.) This 4- character suffix may be assigned at the discretion of the business concern to establish additional CCR records for identifying alternative Electronic Funds Transfer (EFT) accounts for the same parent concern. (5) "Registered in the CCR database" means that the Contractor has entered all mandatory information, including the DUNS number or the DUNS +4 number, into the CCR database. (b) By submission of an offer, the offeror acknowledges that: (1) A prospective awardee will be registered in the CCR database prior to award, during performance, and through final payment. (2) The offeror will enter, in the space provided on the clause, Contractor Identification Number Data Universal Numbering System (DUNS) Number - 2.6.8 Standard Space Lease Form K, NAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 9 of 16 Real Property the offerors DUNS or DUNS +4 number that identifies the offerors name and address exactly as stated in the offer. The DUNS number will be used by the Contracting Officer to verify that the offeror is registered in the CCR database. (c) If the offeror does not have a DUNS number, it will contact Dun and Bradstreet directly to obtain one. (1) An offeror may obtain a DUNS number: (i) If located within the United States, by calling Dun and Bradstreet at 1 -866- 705 -5711 or via the Internet at htto: / /www.dnb.com; or (ii) If located outside the United States, by contacting the local Dun and Bradstreet office. (2) The offeror will be prepared to provide the following information: (i) Company* legal business. (ii) Tradestyle, doing business, or other name by which your entity is commonly recognized. (iii) Company Physical Street Address, City, State, and ZIP Code. (iv) Company Mailing Address, City, State and ZIP Code (if separate from physical). (v) Company Telephone Number. (vi) Date the company was started. (vii) Number of employees at your location. (viii) Chief executive officer /key manager. (ix) Line of business (industry). (x) Company Headquarters name and address (reporting relationship within your entity). * Individual (non- corporate) Lessors of real property that are not normally in the business of leasing real property: You should consider your leasing to the Government as a separate business (usually a sole proprietorship) then provide the pertinent ownership information as an sole proprietor when providing this information to Dunn & Bradstreet. (d) If an otherwise successful Offeror does not become registered in the CCR database in the time prescribed by the Contracting Officer, the Contracting Officer may proceed to award to the next otherwise successful registered Offeror, if the Contracting Officer determines it to be in the best interests of the Government. (e) Processing time, normally 48 hours, will be taken into consideration when registering. Offerors who are not registered will consider applying for registration immediately upon receipt of this solicitation. 2.6.8 Standard Space Lease Form April 2010 OMB Control No. 2120 -0595 KENAI DTFAWN -I3 -L -00002 Page 10 of 16 (f) The Contractor is responsible for the accuracy and completeness of the data within the CCR database, and for any liability resulting from the Government's reliance on inaccurate or incomplete data. To remain registered in the CCR database the Contractor is required to review and update, on an annual basis from the date of initial registration or subsequent updates, its information in the CCR database to ensure it is current, accurate and complete. Updating information in the CCR does not alter the terms and conditions of this contract and is not a substitute for a properly executed contractual document. (g) Changes (1) Name or Ownership Changes (i) If a Contractor has legally changed its business name, "doing business as" name, or division name (whichever is shown on the contract), or has transferred the assets used in performing the contract, the Contractor will provide the responsible Contracting Officer a minimum of one business day's written notification of its intention to: a) Change the name in the CCR database; b) Agree in writing to the timeline and procedures the Contracting Officer specifies to document the requested change in the contract. With notification, the Contractor will provide sufficient documentation to support the legally changed name then execute the appropriate supplemental agreement to document the name change provided by the Contracting Officer. (ii) The Contractor's entry of the name /ownership change in CCR does not relieve the Contractor of responsibility to provide proper notice of the name change to the Contracting Officer. The change in CCR cannot be made effective until the appropriate documentation/ supplemental agreement is executed by the Contracting Officer. Any discrepancy in payee information in CCR caused by a failure to fulfill the requirements specified in paragraph (g)(1) (i) above, will result in a discrepancy that is incorrect information, within the meaning of paragraph (d) Suspension of Payment of the electronic funds transfer (EFT) clause of this contract. (2) Assignment of Claims. The Contractor will not change the name or address for EFT payments in the CCR or manual payments to reflect an assignee. Assignees must separately register in the CCR database. The Contractor will notify the Contracting Officer and will comply with the instructions for submitting an Assignment of Claims notification. Information provided to the Contractor's CCR record that indicates payments, including those made by EFT, to an ultimate recipient other than that Contractor, without proper notice to the Contracting Officer, will be considered to be incorrect information within the meaning of the paragraph (d) "Suspension of payment" of the EFT clause of this contract. 2.6.8 Standard Space Lease Form KENAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 11 of 16 (h) Exceptions to CCR. As provided for in AMS Procurement Toolbox Section T3.3. LA -8, "Central Contractor Registration ", certain contractors may qualify by limited exceptions to CCR waiver. If a contractor is determined by the Contracting Officer to merit justification of a waiver from CCR, then the contractor will provide initial payment information and any future vendor information changes to the Contracting Officer on the "Vendor Miscellaneous Payment Information" form, provided by the Contracting Officer. An alternate clause, "Contractor Payment Information -Non CCR" will be included in the contract and the lessor /vendor will comply with the terms of that clause. Having an exception from CCR does not excuse a vendor from EFT payment requirements, as required in the clause, 'Payment by Electronic Fund Transfer - Real Property ". (i) Offerors and Contractors may obtain information on registration and annual confirmation requirements via the internet at httn: / /www.ecr.gov or by calling 1- 888 -227- 2423, or 269-961-5757. 7P3 - CONTRACTOR IDENTIFICATION NUMBER - DATA UNIVERSAL NUMBERING SYSTEM (DUNS) NUMBER - REAL PROPERTY (OCT 2006) (a) Definitions. As used in this clause "Contractor Identification Number," as used in this provision, means "Data Universal Numbering System (DUNS) number, which is a nine -digit number assigned by Dun and Bradstreet Information Services, to identify unique business entities (taken from CCR clause) "Data Universal Numbering System +4 (DUNS +4) number" means the DUNS number assigned by D &B plus a 4- character suffix that may be assigned by a business concern. (D &B has no affiliation with this 4- character suffix.) This 4- character suffix may be assigned at the discretion of the business concern to establish additional CCR records for identifying alternative Electronic Fund Transfer. (b) Contractor identification is essential for receiving payment and complying with statutory contract reporting requirements. Therefore, the offeror will provide its DUNS or DUNS +4 number below. The DUNS number will be used by the Contracting Officer to verify that the offeror is registered in the CCR database. DUNS OR DUNS +4 NUMBER: 002174159 (c) If the offeror does not have a DUNS number, he should contact Dun and Bradstreet at 1- 866 - 705 -5711, or via the intemet at hq: / /www.dnb.com directly to obtain one. Detailed requirements for obtaining a DUNS number is contained in Paragraph (c) of clause "Central Contractor Registration -Real Property ". 7P4 CERTIFICATION OF REGISTRATION IN CENTRAL CONTRACTOR REGISTRATION (CCR) (Oct -06) (a) In accordance with clause, "Central Contractor Registration -Real Property ", and by submission of this offer, the offeror certifies that they are registered in the CCR Database 2.6.8 Standard Space Lease Form April 2010 OMB Control No. 2120 -0595 KENAI DTFAWN -I3 -L -00002 Page 12 of 16 and have entered all mandatory information including the DUNS or DUNS +4 Number required in clause, "Contractor Identification Number -Data Universal Numbering System (DUNS) Number - Real Property ". (b) / Signature of Offeror /Date 7Q. ASSIGNMENT OF CLAIMS (10/96) - Pursuant to the Assignment of Claims Act, as amended, 31 USC 3727, 41 USC 15, the Lessor may assign his rights to be paid under this lease. 7R. SUBORDINATION, NONDISTRUBANCE AND ATTORNMENT (10/96) - The GOVERNMENT agrees, in consideration of the warranties herein expressed, that this lease is subject and subordinate to any and all recorded deeds of trust, mortgages, and other security instruments now or hereafter imposed upon the premises, so long as such subordination shall not interfere with any right of the GOVERNMENT under this lease. The Parties hereto mutually agreed that this subordination shall be self - operative and that no further instrument shall be required to effect said subordination. In the event of any sale of the premises, or any portion thereof, or any such transfer of ownership, by foreclosure of the lien of any such security instrument, or deed provided in lieu of foreclosure, the GOVERNMENT will be deemed to have attorned to any purchaser, successor, assigns, or transferee. The succeeding owner will be deemed to have assumed all rights and obligations of the Lessor under this lease, establishing direct privity of estate and contract between the GOVERNMENT and said purchasers /transferees, with the same force, effect and relative priority in time and right as if the lease had initially been entered into between such purchasers or transferees and the GOVERNMENT; provided that such transferees shall promptly provide, following such sale or transfer, appropriate documentation deemed necessary by the Real Estate Contracting Officer, and shall promptly execute any instrument, or other writings, as shall be deemed necessary to document the change in ownership. 7S. LESSOR'S SUCCESSORS (10/96) - The terms and provisions of this lease and the conditions herein bind the Lessor and the Lessor's heirs, executors, administrators, successors, and assigns. 7T. SUBLEASE (10/96) - The GOVERNMENT reserves the right to sublease the space covered under this lease to another agency or private party with written approval from the City of Kenai. If the City agrees to allow the FAA to sublease to another party the GOVERNMENT is not relieved from its responsibilities under the terms of this lease, unless otherwise agreed upon with the Lessor. 7U. NO WAIVER (10/96) - No failure by the GOVERNMENT to insist upon strict performance of any provision of this lease, or failure to exercise any right, or remedy consequent to a breach thereof, shall constitute a waiver of any such breach in the future 2,6.8 Standard Space Lease Form KENAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 13 of 16 7V. INTEGRATED AGREEMENT (10/96) - This Lease, upon execution, contains the entire agreement of the parties, and no prior written or oral agreement, express or implied shall be admissible to contradict the provisions of this lease. 7W. EQUAL OPPORTUNITY (10/96) - The Lessor shall have on file affirmative action programs required by the rules and regulations of the Secretary of Labor (41 CFR 60 -1 and 60 -2). 7X. AFFIRMATIVE ACTION FOR SPECIAL DISABLED AND VIETNAM ERA VETERANS (10/96) - The Lessor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor (Secretary) issued under the Vietnam Era Veterans' Readjustment Assistance Act of 1972 (the Act), as amended. If the Lessor does not comply with the requirements of this clause, appropriate actions may be taken under the rules, regulations, and relevant orders of the Secretary issued pursuant to the Act. 7Y. AFFIRMATIVE ACTION FOR DISABLED WORKERS (10/96) - The Lessor agrees to comply with the rules, regulations, and relevant orders of the Secretary of Labor (Secretary) issued under the Rehabilitation Act of 1973 (29 USC 793) (the Act), as amended. If the Lessor does not comply with the requirements of this clause, appropriate actions may be taken under the rules, regulations, and relevant orders of the Secretary issued pursuant to the Act. 7Z. SEISMIC SAFETY FOR EXISTING BUILDINGS (1/07) — Unless it is determined by the GOVERNMENT'S Contracting Officer that seismically conforming premises are not available, all existing buildings leased by the GOVERNMENT under this contract must meet the minimum acceptable performance seismic standard of `Life Safety' as specified in Section 2.2 of Standards of Seismic Safety for Existing Federally Owned or Leased Buildings and Commentary issued by the Interagency Committee on Seismic Safety in Construction as ICSSC RP -6. RP -6 is available on -line at (ht!p:Hfire.nist. oe v/bfrlpubs/build0l /PD b01056 pdfl and is available in print from the National Institute of Standards and Technology as NISTIR 6762. All offers received in response to screening information request will be evaluated to determine whether they are in compliance with "Life Safety ". If at least one offeror is fully compliant, all offerors who are not fully compliant will be considered non- responsive and ineligible for award. In the event a building with a certification of seismic compliance is occupied by the GOVERNMENT and is later determined to not meet the standard indicated on the certification form, the GOVERNMENT at its discretion may require the Lessor to meet the agreed upon standard or may terminate this lease upon giving written notice, with no cost accruing to the GOVERNMENT, not withstanding any other agreements contained in this lease. (a) COMPLIANCE with LIFE SAFETY Buildings designed and constructed in compliance with the seismic requirements of the building codes delineated in Section 1.3.1 of RP -6 are considered to fully meet the GOVERNMENT'S minimum seismic requirement. The offeror shall 2.6.8 Standard Space Lease Form K, NAI April 2010 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 14 of 16 provide proof of compliance in the form of a written certification by an independent licensed structural engineer that the building was designed, built and maintained to the requirements of RP -6. The structural engineer certification shall be in the format of the enclosed CERTIFICATION OF SEISMIC COMPLIANCE. If the building cannot be certified in accordance with RP -6, the structural engineer must evaluate the building using the American Society for Civil Engineers (ASCE) 31 -03, Seismic Evaluation of Existing Buildings and attach the evaluation to the Certification of Seismic Compliance. Buildings meeting the requirements of ASCE 31 -03 using a safety objective of `Life Safety' are considered to meet the GOVERNMENT'S requirement. (b) LESS THAN LIFE SAFETY Existing buildings, which cannot achieve life safety, will require documentation by an independent licensed structural engineer to describe the actual level of seismic compliance. In the event a building with a certification of seismic compliance is occupied by the GOVERNMENT and is later determined to not meet the standard indicated on the certification form, the GOVERNMENT at its discretion may require the Lessor to meet the agreed upon standard or may terminate this lease upon giving written notice, with no cost accruing to the GOVERNMENT, not withstanding any other agreements contained in this lease. 7AA. LABOR STANDARDS (6/09) — By signing this lease, the Lessor certifies to the Real Estate Contracting Officer (RECD) that all laborers and mechanics employed or working upon the leased premises will be paid unconditionally and not less often than once a week, and without subsequent deduction or rebate on any account (except such payroll deductions as are permitted by regulations issued by the Secretary of Labor under the Copeland Act (29 CFR Part 3)), the fall amount of wages and bona fide fringe benefits (or cash equivalents thereof) due at time of payment computed at rates not less than those contained in the wage determination of the Secretary of Labor which is attached hereto and made a part hereof, regardless of any contractual relationship which may be alleged to exist between the Lessor and such laborers and mechanics. Contributions made or costs reasonably anticipated for bona fide fringe benefits under section 1(b)(2) of the Davis -Bacon Act on behalf of laborers or mechanics are considered wages paid to such laborers or mechanics, subject to the provisions of paragraph (d) of this clause; also, regular contributions made or costs incurred for more than a weekly period (but not less often than quarterly) under plans, funds, or programs which cover the particular weekly period are deemed to be constructively made or incurred during such period. Such laborers and mechanics shall be paid not less than the appropriate wage rate and fringe benefits in the wage determination for the classification of work actually performed, without regard to skill, except as provided in the clause titled "Apprentices, Trainees, and Helpers." Laborers or mechanics performing work in more than one classification may be compensated at the rate specified for each classification for the time actually worked therein; provided, that the employer's payroll records accurately set forth the time spent in each classification in which work is performed. The wage determination (including any additional classifications and wage rates conformed under 2.6.8 Standard Space Lease Form April 2010 OMB Control No. 2120 -0595 KENAI DTFAWN -I3 -L -00002 Page 15 of 16 paragraph (b) of this clause) and the Davis -Bacon poster (WH -1321) shall be posted at all times by the Lessor and its subcontractors at the site of the work in a prominent and accessible place where it can be easily seen by the workers. Section 3 - CLOSING NOTICES - All notices /correspondence shall be in writing, reference the Lease number, and be addressed as follows: City of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 -7794 FEDERAL AVIATION ADMININSTRATION Real Estate and Utilities Group 1601 Lind Avenue SW Renton, Washington 98057 ATTACHMENTS - See herein attached - Attachment A IN WITNESS WHEREOF, the parties hereto have signed their names: NAME AND TITLE 19b. SIGNATURE OF 9c. DATE OWNER(Type or Print) OWNER DOCUMENT IS NOT BINDING ON THE GOVERNMENT OF THE STATES OF AMERICA 1NLESS SIGNED BELOW BY AUTHORIZED CON_ TR_A_CTIN_G O_F_FIC_ER. Oa. NAME OF REAL 110b. SIGNATURE OF 110c. DATE TATE CONTRACTING AREAL ESTATE sR(Type or Print McGruder 2.6.8 Standard Space Lease Form April 2010 OMB Control No. 2120 -0595 OFFICER KENAI DTFAWN -I3 -L -00002 Page 16 of 16 ATTACHMENT A Lease No: DTFAWN -13 - L - 00002 I. SECTION A - GENERAL BUILDING REQUIREMENTS AND SPECIFICATIONS Al- Adhesives and Sealants (11/11) The Lessor shall use adhesives and sealants that contain no formaldehyde or heavy metals. A2- Ceilings (10/96) Must have acoustical treatment with a flame spread of 25 or less and smoke development rating of 50 or less. A3 -Doors (10/96) Exterior doors shall be weather tight, equipped with cylinder locks and door checks, automatic door closures and open outward. The FAA will be furnished at least two master keys and two keys for each lock. Interior doors must be solid cord and at least 32 by 80 inches with a minimum opening of 32 inches and be of sturdy construction. Fire doors shall conform to NFPA Standard No. 80. As designated by the FAA, doors shall be equipped with non - removable hinge pins, and "Best" locks with 7 -pin removable cores. The FAA shall provide cores. A4 -Floor Load (8/02) All adjoining floor areas shall be 1) of a common level not varying more than 1/4 inch over a 10- foot, 0 -inch horizontal run in accordance with the American Concrete Institute standards, 2) non- slip, and 3) acceptable to the Real Estate Contracting Officer. Under floor surfaces shall be smooth and level. Office areas shall have a minimum live load capacity of 50 pounds per square foot plus 20 pounds per square foot for moveable partitions. Storage areas shall have a minimum live load capacity of 100 pounds per square foot including moveable partitions. A report showing the floor load capacity, at no cost to the Government, by a registered professional engineer may be required by the Contracting Officer. A5- General Health and Safety Standards (8/02) Local Health, Environmental (OSHA and EPA), and Safety Standards and Building Codes shall be complied with when accomplishing any cleaning, construction, renovation, remodeling, maintenance or testing done in the leased space and areas connected to or integrated with the leased space. Whenever FAA Standards require work processes or precautions to be provided, the Lessor shall coordinate with the FAA during the work so that proper requirements are met. A6 -HVAC (10/96) Heating, ventilation and air - conditioning systems are required which maintain a temperature range of 68 -72 degrees Faluenheit year - round. These temperatures must be maintained 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN -I3 -L -00002 Page 1 of 11 throughout the leased premises and service areas regardless of outside temperatures during hours of operation. For further information see ASHRAE standard ANSI/ ANSFASHRAE 62 -1999 - Ventilation for Acceptable Indoor Air Quality. A7- Lighting (10/96) Modem, diffused, energy efficient (T -8 or better) fluorescent fixtures shall be provided maintaining a uniform lighting level of 50 foot candles at working surfaces. Emergency lighting must provide at least 0.5 foot candles of illumination throughout the exit path, including exit access routes, exit stairways, or other routes such as passageways to the outside of the building. The Lessor shall replace all interior lighting fixtures as necessary within six (6) months of lease execution. Lessor will replace all interior lighting fixtures due to failure. A8- Painting (8/02) Prior to occupancy all surfaces must be newly painted with non -lead based paints in colors acceptable to the FAA. All surfaces must be repainted after working hours at Lessor's expense at least every (5) five years. This includes moving and return of the furniture. Any existing lead based paint shall be properly maintained and managed per existing regulatory requirements. If there is flaking paint, it would need to be sampled for lead. If containing lead, it would need to be abated prior to occupancy. This could be done either by removal or sealing with an encapsulating material. A9- Parkin (g 10/06) At no additional cost to the FAA, the Lessor shall provide 90 reserved off - street parking spaces located at the facility. The Lessor shall maintain the parking areas in good repair and provide snow and ice removal. The Lessor shall repaint parking lot markings, and repaint every three (3) years thereafter, beginning with lease execution. The Lessor shall be responsible for asphalt sealing of parking lot every six years, beginning with lease execution. A10- Prior Notification (8/02) A pre - construction meeting shall be held at the facility prior to the commencement of any cleaning, construction, renovation, remodeling, repair, maintenance or testing within the leased premises and areas connected to or integrated with the leased premises. If any items on the checklist are questionable or undone, full resolution of the issues will be expected before the project starts. The pre - construction meeting will be planned, scheduled, and coordinated, with the Government's supervisor or manager responsible for the facility, at least one week before the execution of the work. 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN -I3 -L -00002 Page 2 of 11 Al l- Restrooms and Drinking Fountains (7/09) Separate toilet facilities for men and women shall be provided on each floor where the FAA leases space. Water closets and urinals shall not be visible when the exterior door is open. Each toilet room shall contain toilet paper dispensers, soap dispensers, paper towel dispensers, waste receptacles; a coin operated sanitary napkin dispenser with receptacle for each women's toilet, disposable toilet seat cover dispensers, a convenience outlet, and hot and cold water for all restrooms. (The FAA will advise if additional facilities are required.). The Lessor shall provide a minimum of one chilled accessible drinking fountain with potable water within every 200 feet of travel. Al2- Window and Floor Covering (8/02) All exterior windows shall be equipped with window covering. Floors will be carpeted with a commercial grade of carpet acceptable to the FAA. Existing floor and window covering may be accepted at the discretion of the Real Estate Contracting Officer however; prior to occupancy all carpeting and window covering shall be cleaned. At no additional cost to the FAA, the Lessor shall replace carpeting at least every five (5) years, and vinyl or tiles every ten (10) years during FAA occupancy or any time during the lease when: • Backing or underlayment is exposed • There are noticeable variations in surface color or texture • Any carpeting or vinyl creating safety or tripping hazards shall be repaired or replaced immediately to FAA satisfaction Replacement includes moving and return of furniture. FAA will be responsible for replacement of floor covering in the Operations and Equipment Area's. Il. SECTION B - SERVICES, UTILITIES, AND MAINTENANCE B1- Grounds Maintenance (10/96) The FAA shall maintain in good condition landscape plants and lawns. B2 -Pest Control (8/02) The Lessor shall exterminate and control pests within the premises within a timely manner as required by the Government. Notice shall be provided to the users of the building before any application of herbicide(s) /pesticide(s) or other chemical pest control. OSHA requirements for Hazard Communication shall apply for the use of hazardous materials used in pest control. Copies of Material Safety Data Sheets (MSDS) for all chemicals applied shall be provided to the 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN -I3 -L -00002 Page 3 of 11 FAA before application. Only licensed applicators shall be allowed to apply chemicals. Herbicides /pesticides are not to be applied near the outside air intakes of the building during normal working hours and when the system is in operation. 133- Services and Facilities (10/96) The Lessor shall provide to the Government, as part of the rental consideration, the following: • Heating, air conditioning, and ventilation that provide for the comfortable occupancy of the premises. Temperatures will be thermostatically controlled to maintain a temperature of 68 - 72 degrees Fahrenheit. These temperatures must be maintained throughout the leased premises and service areas, regardless of outside temperatures, during the FAA's normal hours of operation. • Electrical power to the premises for the operation of lights, communications equipment, and office machines. • Water (hot and cold) and sewer to leased premises. • Trash removal for leased premises. 134- Utilities Not Provided By The Lessor (10/96) If the cost of utilities is not included as part of the rental consideration, the Lessor must specify which utilities are excluded. The Lessor shall provide separate meters for utilities to be paid for by FAA. When FAA is to pay for utilities, the Lessor will furnish the Real Estate Contracting Officer, prior to occupancy by the FAA, written verification of the meter numbers and certification that these meters will measure FAA usage only. Proration is not permissible. If the cost of utilities for heating, ventilation, and air conditioning is not included as part of the rental considerations, an automatic control system will be provided to assure compliance with heating and air conditioning provisions included in this specifications package. Utilities Not Covered by the Lessor • Water • Sewer • Trash Removal • Natural Gas • Electricity • Telephone /Communications III. SECTION C - SAFETY AND FIRE PREVENTION C1 -Fire and Safety Requirements 8( /02) All NFPA Standards addressed in this section reference the current edition of NFPA in place at the signing of this contract. At any point when construction takes place, systems should be brought into compliance according to the current edition of NFPA. The building shall, as required by Code, be equipped with automatic sprinklers which conform to NFPA No. 13, be maintained in accordance with NFPA No. 13A, have electrically supervised control valves (NFPA No. 13), and have water -flow alarm switches connected to automatically notify the local fire department 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN -I3 -L -00002 Page 4 of 11 (NFPA No. 72) or central station (NFPA No. 71). The notification of the fire department or central station shall be accomplished through the building fire alarm system. Regardless of code requirements when the leased space (including garage areas under lease by the FAA) is on the 6th floor and above, or below grade, sprinklers are required. A manual fire alarm system shall be provided, maintained, and tested by the Lessor in accordance with NFPA Standard No. 71 and 72 in buildings, which are three (3) or more stories in height or contain more than 50,000 square feet gross floor area. The fire alarm system wiring and equipment must be electrically supervised and automatically notify the local fire department and conform to NFPA Standards No. 70 and 72. Engineered smoke control systems, if present, shall be maintained in accordance with the manufacturer's recommendations. Fire- safety, equivalent to the requirements stated above in this clause, may be accepted, at the discretion of the Real Estate Contracting Officer, if certified by a Licensed Fire Protection Engineer. Portable fire extinguishers shall be provided, inspected, and maintained by the Lessor in accordance with NFPA Standard No. 10. C24ndoor Air Quality (8/02) The Lessor shall control contaminants at the source and /or operate the space in such a manner that the indicator levels for carbon monoxide (CO), carbon dioxide (CO2), and formaldehyde (HCHO), are not exceeded. The indicator levels for office area are as follows: CO -9 parts per million (PPM) time weighted average (TWA - 8 -hour sample); CO2 - 1,000 PPM (TWA); HCHO - 0.1 PPM (TWA). All indoor air contaminant levels in leased space will be kept below appropriate OSHA regulations or Consensus standards, whichever is stricter. Air quality and facility cleaning will be adequate to prevent the growth of mold, mildew and bacteria. Any visual evidence of these will require immediate sampling and remediation. Moisture /standing water will be controlled to prevent the growth of these. During working hours, ventilation shall be provided in accordance with the latest edition of ANSI/ASHRAE Standard 62, Ventilation for Acceptable Indoor Air Quality. The Lessor shall promptly investigate indoor air quality (IAQ) complaints and shall implement controls including alteration of building operating procedures (e.g., adjusting air intakes, adjusting air distribution, cleaning and maintaining HVAC, etc.). The FAA is responsible for addressing IAQ problems resulting from its own activities. MSDS will be provided for all cleaning solutions used in the FAA spaces. C3 -OSHA Requirements (10/96) The Lessor shall provide space, services, equipment, and conditions that comply with Occupational Safety and Health Administration (OSHA) safety and Health standards (29 CFR 1910 and 1926). 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN- 13 -L -00002 Page 5 of 11 C4 -Radon (10/96) Radon levels in space leased to the FAA shall not equal or exceed the EPA action level for buildings of four (4) picocuries per liter (pCi /L). If radon levels are found to be at or above 4 pCi /L, the Lessor shall develop and promptly implement a plan of corrective action. C5- Refrigerants (8/02) The Lessor shall identify which refrigerants are used in the HVAC systems in the spaces covered by this lease. The lease should provide for use of refrigerants consistent with EPA and ASHRAE requirements. C6- Warranty Of Space (8/02) (a) Notwithstanding inspection and acceptance by the Government or any provision concerning the conclusiveness thereof, the Lessor warrants that all space leased to the Government under this contract, spaces above suspended ceilings in the leased space, air plenums elsewhere in the building which service the leased space, engineering spaces in the same ventilation zone as the leased space, public spaces and common use space (e.g., lobbies, hallways) will, at the time of acceptance and during the term of the lease contract, comply with the asbestos containing material (ACM) and polychlorinated biphenyl (PCB) requirements of the Toxic Substance Control Act. The Real Estate Contracting Officer shall notify the Lessor in writing, within 30 days after the discovery, of any failure to comply with the asbestos requirement. With any construction work, Lessor would be required to comply with the OSHA regulations for Asbestos and relevant FAA orders. (b) The leased premises shall be free of all asbestos - containing material, PCB's, Radon, and other environmentally hazardous substances. If either ACMs or PCBs are found to be in the leased space the Government reserves the right to require the Lessor, at no cost to the GOVERNMENT, to take whatever corrective action as might be required by the Toxic Substance Control Act, EPA regulations and state requirements. All facilities constructed prior to 1981 are to have an asbestos building survey conducted by a qualified inspector including a visual examination and bulk sampling. All ACM survey reports are to be made available to the Real Estate Contracting Officer. (c) If the Lessor fails, after receipt of notice, to make correction within the specified period of time, the Government shall have the right to make correction and charge to the Lessor the costs occasioned to the FAA or terminate the lease agreement at no cost to the Government. (d) The rights and remedies of the FAA in this clause are in addition to any other rights and remedies provided by the law and under this contract. (e) Definitions. • (1) "Acceptance ", as used in this clause means the act of an authorized representative of the Government by which the Government assumes for itself, or as an agent of another, the leased premises as ready for occupancy or approves a 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN - 13 -L -00002 Page 6 of 11 portion of the premises for occupancy in accordance with the provisions of this lease contract. (2) "Correction ", as used in this clause, means (i) the removal, encapsulation or enclosure of any friable asbestos materials found in the space leased to the Government, spaces above suspended ceilings in the leased space, air plenums elsewhere in the building which service the leased space, public spaces, engineering spaces in the same ventilation zone as the leased space and common use space (e.g., lobbies, hallways). Following such abatement actions, the Lessor shall adhere to the FAA's required post- asbestos - abatement air monitoring program. (ii) With regard to non - friable asbestos materials in good condition, it means the establishment and execution of a special operations and maintenance program and an abatement plan, approved by the Government, to be implemented from the time the materials are discovered through the remainder of the lease term, and (iii) with regard to PCBs, it involves the removal or retrofitting, in accordance with EPA regulations, of any PCB equipment present in the building. IV. SECTION D — MISCELLANEOUS Dl -Da try Extension (8/02 The Government shall continue to occupy the premises for a period not to exceed 180 days after the end of the lease term including all option periods. The rent shall be paid monthly in arrears on a prorated basis at the rate paid on the date of the lease expiration, until one of the following events occurs: (1) the extension day period expires: (2) a new lease commences, (3) the Government acquires a fee simple or other long -term interest in the property through negotiation or eminent domain or (4) the Government vacates the leased premises; whichever occurs first. The accrued rent computed on a daily basis shall be due and payable in arrears at the end of each month until the amount accrued by the end of the month has been fully paid. D2- Erection of Signs (10/96) The Government shall have the right to erect on or attach to the Lessor's premises such signs as may be required to clearly identify the Government's facility. Said signs so erected will remain the property of the Government and shall be removed from the premises upon termination of the Lease. D3 -Hold Harmless (10/96) In accordance with and subject to the conditions, limitations and exceptions set forth in the Federal Tort Claims Act of 1948, as amended (28 USC 2671 et. seq.), hereafter termed "the Act" the Government will be liable to persons damaged by any personal injury, death or injury to or loss of property, which is caused by a negligent or wrongful act or omission of an employee of the Government while acting within the scope of his office or employment under circumstances where a private person would be liable in accordance with the law of the place where the act or omission occurred. The foregoing shall not be deemed to extend the Government's liability beyond that existing under the Act at the time of such act or omission or to preclude the Government from using any defense available in law or equity. 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN- 13 -L -00002 Page 7 of 11 D4- Installation Of Antennas, Cables And Other Appurtenances (10/96) The FAA shall have the right to install, operate and maintain antennas, wires and their supporting structures including any linking wires, connecting cables and conduits atop and within buildings and structures, or at other locations, as deemed necessary by the Government. D5- Non - Restoration (10/96) The FAA shall have no obligation to restore and/or rehabilitate, either wholly or partially, the premises under this lease. It is further agreed that the FAA may abandon in place any or all of the structures, improvements and/or equipment installed in or located upon said property by the FAA during its tenure. Notice of abandonment will be conveyed to the Lessor in writing. D6- Unauthorized Negotiating (10/96) In no event shall the Lessor enter into negotiations concerning the space leased or to be leased with other than the real estate contracting officer or his designee. D7- Wiring For Telephones (10/96) The Government reserves the right to provide its own telephone service in the space to be leased. It may have inside wiring and telephone equipment installed by the local telephone company or a private contractor. Alternately, the FAA may wish to consider using inside wiring provided by the building, if available. However, the final decision will remain the Government. V. SECTION E - SECURITY REQUIREMENTS E1- Facility Security (Updated 4/09) Security requirements for Government occupied space must meet minimum - security accreditation standards for the type of facility covered by this lease. The FAA Facility Security Management Program defines facility security accreditation standard levels. The security requirements identified below are tailored specifically for the type of facility covered by this solicitation. The Lessor shall provide or make accommodation to provide for all the security requirements listed herein for the leased premises covered by this lease agreement: Contact your local Servicing Security Element (SSE) Pam Smith at 907 - 271 -2193 for a list of your security requirements. The local SSE will determine any additional security upgrades that are required to meet accreditation and shall conduct a final security assessment of the building. The Lessor shall provide maintenance services to the security upgrades installed within the leased premises and covered under this lease. E2- Contractor Personnel Suitability Requirements (4/09) (a) This clause applies to the extent that this contract requires contractor employees, subcontractors, or consultants to have unescorted access to FAA: 2.6.3 Attachment - A to Space Lease Kenai Revised January 2012 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 8 of 11 (1) Facilities; (2) Sensitive information; and /or; (3) Resources regardless of the location where such access occurs, and none of the exceptions of FAA Order 1600.72A, Contractor and Industrial Security Program, Chapter 5, paragraphs 4, 6, 7 and 8 pertains. Definitions of applicable terminology are contained in the corresponding guidance and FAA Order 1600.72A, appendix A. (b) Consistent with FAA Order 1600.72A, the FAA Servicing Security Element (SSE) has approved designated risk levels for the positions under the contract. Those designated risk levels are: (c) If a National Agency Check with Inquiries (NACI) or other investigation is required under paragraph (b) for a given position, the contractor will submit to the Contracting Officer (CO) a point of contact (POC) that will enter applicant data into the Vendor Applicant Process (VAP) system (vap.faa.gov). VAP is a FAA system used to process and manage security information for FAA contractor personnel. Each contract may have up to 5 POCs. Once designated, a VAP administrator will provide each POC a Web ID and password. The type of investigation conducted will be determined by the position risk level designation for all duties, functions, and/or tasks performed and will serve as the basis for granting a favorable employment suitability authorization as described in FAA Order 1600.72A. If an employee has had a previous U. S. Government conducted background investigation which meets the requirements of Chapter 5 of FAA Order 1600.72A and Homeland Security Presidential Directive 12 (HSPD -12), it will be accepted by the FAA. However, the FAA reserves the right to conduct further investigations, if necessary. The contract may include positions that are temporary, seasonal, or under escort only. In such cases, a FAA Form 1600 -77 for each specific position will be established as the investigative requirements may differ from the NACI. The following information must be entered into VAP by the POC for each applicant requiring an investigation: • Name; • Date and place of birth (city and state); • Social Security Number (SSN); • Position and office location; • Contract number; • Current e-mail address and telephone number (personal or work); and • Any known information regarding current security clearance or previous investigations (e.g. the name of the investigating entity, type of background investigation conducted, contract number, labor category (Position), and approximate date the previous background investigation was completed). If a prior investigation exists and there has not been a 2 year break in service by the applicant, the SSE will notify the contractor that no investigation is required and that final suitability is approved. 2.6.3 Attachment - A to Space Lease Kenai Revised January 2012 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 9 of 11 If no previous investigation exists, the SSE will send the applicant an e-mail (this step may be delegated to VAP POC): • Stating that no previous investigation exists and the applicant must complete a form through the Electronic Questionnaires for Investigations Processing (eQIP) system • Instructing the applicant how to enter and complete the eQIP form; • Providing where to send/fax signature and release pages and other applicable forms; and • Providing instructions regarding fingerprinting. The applicant must complete the eQIP form and submit other required material within 15 days of receiving the e -mail from the SSE. For items to be submitted outside eQIP, the contractor must submit the required information with a transmittal letter referencing the contract number to: Headquarters Contracts: Manager, Personnel Security Division, AIN -400 800 Independence Avenue, S.W., Room 315 Washington, D.C. 20591 Regional and Center Contracts: Manager, Security & Hazardous Materials Branch 222 W. 7"' it 14 Anchorage, AK 99513 -7587 The transmittal letter must also include a list of all of the names of contractor employees and their positions for which completed forms will be submitted to the SSE pursuant to this Clause. (d) The contractor must submit the information required by paragraph (c) of this Clause for any new employee not listed in the Contractor's initial submission who is hired into any position identified in paragraph (b) of this Clause. (e) The CO will provide notice to the contractor when any contractor employee is found to be unsuitable or otherwise objectionable, or whose conduct appears contrary to the public interest, or inconsistent with the best interest of national security. The contractor must take appropriate action, including the removal of such employee from working on this FAA contract, at their own expense. Once action has been taken, the contractor will report the action to the CO and SSE. (f) No contractor employee will work in a high, moderate, or low risk position unless the SSE has received all forms necessary to conduct any required investigation and has authorized the contractor employee to begin work. (g) The contractor must notify the CO within one (1) business day after any employee identified pursuant to paragraph (c) of this Clause is terminated from performance on the contract. This notification must be done utilizing the Removal Entry Screen of VAP. If 2.6.3 Attachment - A to Space Lease Kenai Revised January 2012 DTFAWN -I3 -L -00002 OMB Control No. 2120 -0595 Page 10 of 11 FAA issued the terminated employee and identification card, the contractor must collect the card and submit it to the SSE. (h) The CO may also, after coordination with the SSE and other security specialists, require contractor employees to submit any other security information (including additional fingerprinting) deemed reasonably necessary to protect the interests of the FAA. In this event, the contractor must provide, or cause each of its employees to provide, such security information to the SSE, and the same transmittal letter requirements of paragraph (c) of this Clause applies. (i) The contractor and/or subcontractor(s) must contact the Servicing Security Elements (Regional and/or Center Security Divisions) or AIN -400 at Headquarters within one (1) business day in the event an employee is arrested (detained by law enforcement for any offenses, other than minor traffic offenses) or is involved in theft of government property or the contractor becomes aware of any information that may raise a question about the suitability of a contractor employee. 0) Failure to submit information required by this clause within the time required may be determined by the CO a material breach of the contract. (k) If subsequent to the effective date of this contract, the security classification or security requirements under this contract are changed by the Government and if the changes cause an increase or decrease in direct contract costs or otherwise affect any other term or condition of this contract, the contract will be subject to an equitable adjustment. (1) The contractor agrees to insert terms that conform substantially to the language of this clause, including paragraph (k) but excluding any reference to the Changes clause of this contract, in all subcontracts under this contract that involve access and where the exceptions under Chapter 5, FAA Order 1600.72A do not apply. (m) Contractor employees who have not undergone a background investigation must be escorted at all times. In some instances, a contractor employee may be required to serve as an escort. To serve as an escort, a contractor employee must have a favorably adjudicated fingerprint check and initiated a NACI with FAA. VI. SECTION F - SPECIAL REQUIREMENTS VII. CERTIFICATION FORMS (8/02) - See attached forms: Certification of Seismic Compliance FAA Safety and Environmental Certification Checklist Vendor /Miscellaneous Payment Information Form 2.6.3 Attachment - A to Space Lease Revised January 2012 OMB Control No. 2120 -0595 Kenai DTFAWN- 13 -L -00002 Page 11 of 11