Resolution 2000-021 Rental Agreement

RENTAL AGREEMENT

This rental agreement, made this 1st day of March, 2000, by and between NIKOLAEVSK INC. (lessor) and the KENAI PENINSULA BOROUGH (lessee);

WITNESSETH:

1. Premises and Term. Lessor, for an in consideration of the rents, covenants, and conditions hereinafter specified to be paid, by lessee, does hereby lease to lessee, the real estate located in the Kenai Recording District, Third Judicial District, State of Alaska, more particularly described as follows:

a stall in the Nikolaevsk water treatment plant at HM800033 T04S R14W S24 Nikolaevsk Village Sub No 4 Lot 90

for the purpose of storing an ambulance and other items of personal property.

2. Term. The term of this rental agreement commences on the first day of March, 2000, through and including the 30th day of June, 2001, unless sooner terminated as herein provided and is subject to the option to extend as provided in paragraph 11.

3. Rental. In consideration of the rental of the premises by lessor, the lessee covenants to pay to the lessor as rental for the premises described in paragraph 1 above, the sum of Five Hundred Dollars ($500.00) per month beginning on July 1, 2000, in advance; all payments, unless and until otherwise directed in writing, by lessor, shall be paid to the lessor. There shall be no rent charged for the months of March through June 2000.

4. Covenants of Lessee. The lessee hereby covenants and agrees:

To pay rent: The lessee will pay the said rent specified at the times and in the manner set out in paragraph 3 herein, except only in the case of fire or other casualty as herein provided.

Not to assign. Lessee shall not assign, sublet or part with the possession of all or any part of the leased premises without the prior written consent of the lessor. Such consent shall not be unreasonably withheld by lessor.

To permit lessor to enter. Lessee shall allow the lessor, on 24 hours written notice, at reasonable times to enter, view the premises, and make any repairs which lessor may see fit to make, except that 24 hours notice is not necessary for emergency repairs. Lessor shall be accompanied by an employee or agent of lessee for all lessor entries onto the premises unless this right is specifically waived in writing by the lessee. Lessee may waive in writing the 24 hour notice requirement for lessor's entry onto premises.

To yield up premises. At the expiration of the term of this rental agreement, lessee will peaceably yield up to the lessor the premises, in good repair in all respects, reasonable use and wear and damage by fire and other casualties excepted.

Alterations. Lessee may not alter the premises without first obtaining prior approval of lessor.

5. Lessor's warranties. The lessor covenants, guarantees and provides the following express warranties:

No existing restrictions interfere with the borough's permitted and intended use of the leased property;

Availability of adequate ingress and egress to leased property;

Lessor has sufficient interests in property to grant tenant this leasehold;

Lessee shall have quiet enjoyment of the premises;

The property is fit for its intended use;

Lessor shall be responsible for all snow and ice removal from the roof, the adjacent parking area, and entrances and exits;

Any use, treatment, storage, or transportation of hazardous substances has been in compliance with all applicable federal, state and local laws. No hazardous substances have been released, discharged, spilled, leaked, disposed of, or omitted on, in, or under the premises. The premises are free of hazardous substances; and

Lessor shall be responsible to maintain the premises in good repair at all times and shall provide adequate heat and electricity and water at all times.

6. Default by lessor/lessee. Should either lessee or lessor default in the performance of the obligations of any covenants of this rental agreement and fail to fully remedy such default within thirty days after written notice by the nondefaulting party, then the rental agreement may be terminated by written notice to the defaulting party. All rental hereunder shall abate during the period of any such default. Upon termination of this rental agreement, lessor shall refund to lessee any unearned advance rental paid of lessee.

7. Liability and insurance. Each party shall be responsible and liable for its own acts and omissions under this rental agreement and shall carry insurance adequate to protect its interest.

8. Permits, laws, and taxes. Lessor shall acquire and maintain in good standing all permits, licenses, and other entitlements necessary to the performance under this rental agreement. All actions taken by the lessor under this agreement shall comply with all applicable statutes, ordinances, rules and regulations. Lessor shall pay all taxes that may be due and owing to a federal, state, or local taxing entity.

9. No waiver. No assent, expressed or implied, by either party to any breach of either party's covenants shall be deemed to be a waiver of any succeeding breach of the same covenant, nor shall any forbearance by a party to seek a remedy for any breach be deemed a waiver by that party of its rights or remedies with respect to such breach.

10. Integration. This document contains the entire lease agreement of the parties hereto. All negotiations, statements, representations, guarantees, warranties, and assurances, whether oral or written, which are in any way related to the subject matter of this rental agreement and the performance of either party hereto, are merged and integrated into the terms of this document.

11. Modification. The parties may mutually agree to modify the terms of this agreement. Any modifications shall be in writing executed by both parties.

12. Renewal. This rental agreement shall automatically renew for an additional period of one year per renewal term on the same terms as this rental agreement, unless either party gives written notice of the termination no later than 60 days prior to the end of the term or renewal term.

13. Interpretation and enforcement. This agreement has been drafted following negotiations between the parties. It shall be construed according to the fair intent of the language as a whole, not for or against any party. The interpretation and enforcement of this agreement shall be governed by the laws of the State of Alaska. The titles of sections in this agreement are not to be construed as limitations or definitions but are for identification purposes only.

13. Severability. If any section or clause of this agreement is held invalid by a court of competent jurisdiction, or is otherwise invalid under the law, the remainder of this agreement shall remain in full force and effect.

14. Notice. Whenever notice is required hereunder, it shall be addressed as follows until written notice of change of address is given to the other party:

Lessor: Lessee:

NIKOLAEVSK INC. KENAI PENINSULA BOROUGH

Nikolaevsk Community Water System 144 N. Binkley Street

P.O. Box 5062 Soldotna, AK 99669

Nikolaevsk, AK 99556-5062

DATED this ____ day of _______________, 2000.

NIKOLAEVSK INC. KENAI PENINSULA BOROUGH

By: By Dale L. Bagley, Mayor

Date: Date: _____________________________

APPROVED AS TO FORM AND SUFFICIENCY

_____________________________________

Holly B. Montague

Assistant Borough Attorney

State of Alaska )

) ss.

Third Judicial District )

THIS IS TO CERTIFY that on this _____ day of _______________, 2000, before me, the undersigned, a notary public in and for the State of Alaska, personally appeared , known to me to be the person whose name is subscribed to the within instrument and he acknowledged to me that he had executed the foregoing instrument for the uses and purposes therein stated.

WITNESS my hand and official seal the day and year in this certificate first above written.

_______________________________________

NOTARY PUBLIC in and for the State of Alaska

My commission expires: ___________________