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HomeMy WebLinkAboutReso 95-104 - Approve Permit for Commercial Activities (Air Cargo Serv) at RMC between COR & Airborne Freight Corp RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE PERMIT FOR COMMERCIAL ACTIVITIES (AIR CARGO SERVICE) AT REDDING MUNICIPAL AIRPORT BETWEEN THE CITY OF REDDING AND AIRBORNE FREIGHT CORPORATION, DBA AIRBORNE EXPRESS, AND AUTHORIZING THE MAYOR TO SIGN. IT IS HEREBY RESOLVED that the City Council of the City of Redding hereby approves the Permit for Commercial Activities between the City of Redding and Airborne Freight Corporation, dba Airborne Express, a true copy of which is attached hereto and incorporated herein by reference. BE IT FURTHER RESOLVED that the Mayor of the City of Redding is hereby authorized and directed to sign said Permit for Commer- cial Activities on behalf of the City of Redding; and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to impress the official seal of the City of Redding thereto. I HEREBY CERTIFY that the foregoing Resolution was intro- duced and read at a regular meeting of the City Council of the City of Redding on the 18th day of April , 1995, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: P. Anderson, R. Anderson, McGeorge, Murry and Kehoe NOES: COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS : None ABSTAIN: COUNCIL MEMBERS: None DAVID A. OE, Mayor City o Redding ATTST. FOR PPROVED: ATT CONNIE €'. ROHrAYE --City Clerk w. LEONARD WING TE, City Attorney ti P ERM=T F OR COMME RC =AL ACT=V=T= E S RE DD 11 NG MUN I C I PAL A I RP ORT WHEREAS, the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "CITY, " owns and maintains Redding Municipal Airport in the City of Redding; and WHEREAS, AIRBORNE FREIGHT CORPORATION, doing business as AIRBORNE EXPRESS, hereinafter referred to as "OPERATOR, " currently conducts revenue-producing activities at said Airport under approval from the CITY in accordance with Section 3 . 08 . 030 of the Redding Municipal Code and Resolution No. 2978; and WHEREAS, said OPERATOR has now applied for a new Permit; and WHEREAS, the City Council has determined that these commer- cial activities are compatible with the Airport Master Plan, and that the best interests of the public and the CITY will be served by approval of this Permit; NOW, THEREFORE, CITY hereby grants to OPERATOR a Permit, license, and privilege to conduct and carry on from the air terminal building at Redding Municipal Airport the hereinafter described revenue-producing commercial activities for: ( 1 ) a period of fourteen ( 14 ) months, commencing May 1, 1995, and terminating June 30, 1996; and (2 ) thereafter, provided OPERATOR is not in default hereun- der, from year-to-year on an automatic renewal basis, unless written notice of any change in the terms hereof or of termination shall be given by either party sixty (60) days prior to said change or termination. This Permit is subject to the following terms and conditions : 1 . COMMERCIAL ACTIVITIES. A. OPERATOR' s commercial activities shall consist of and be limited to a small package air cargo service. B. Any other commercial activity that OPERATOR may wish to carry on at said Airport, in connection with the forego- ing or independently, shall first require the written permission of CITY. 2 . FEES AND CHARGES; PERFORMANCE BOND, LETTER OF CREDIT OR CER- TIFICATE OF DEPOSIT. A. OPERATOR will pay to CITY for the Permit, license, and privileges herein granted the following monthly fees and charges . i . Commercial aircraft landing fees at the rate of sixty-one cents ( 61(P) per thousand pounds of maximum aircraft landing weight. In connection herewith, it is expressly agreed that OPERATOR will report in writing to the Director of Air- ports of CITY--by the fifth working day of each and every month--the total number of aircraft landings and the gross landing weights of air- craft landing during the previous month belonging to OPERATOR. ii . The sum of One Thousand Dollars ( $1,000.00) for its terminal space fee, based on 874 square feet of area as depicted in Exhibit "A" attached hereto and incorporated herein by reference. iii . The sum of Four Hundred Seventy-five Dollars ( $475.00) for its proportional share of the terminal maintenance and operational costs and for the area depicted in Exhibit "A" attached hereto. "Maintenance and operational costs" pro- vided by CITY are defined as electrical, air- conditioning, heating, water, garbage, and janitorial services for the shared lobby area; OPERATOR is to pay for all other utilities re- quired in its operations . -2- iv. The sum of One Hundred Twenty-five Dollars ( $125 .00) for its proportional share of terminal security costs . B. The payments called for above shall be payable monthly, except for landing fees which shall be due within 20 days from the date of the invoice. CITY is entitled to collect, and OPERATOR agrees to pay to CITY, upon invoice, those fees and charges set forth above. Any fees and charges more than thirty ( 30) days past due may be subject to a service charge of one percent ( 1%) per month, based on an annual rate of twelve percent ( 12%) . Without prejudice to any other remedy which otherwise might be used for non-payment of fees and charges, or other breach of this Permit, if CITY is required or elects to pay any sum or sums or incurs any obligations or expenses by reason of a failure, neglect, or refusal of OPERATOR to perform any one or more of the terms, conditions, and covenants of this Permit, or as the result of any act or omission of OPERATOR contrary to said terms, conditions or covenants, the sum or sums so paid, including all interest, costs, damages, or penalties, may be added, after fifteen ( 15) days ' written notice by CITY to OPERATOR, to any fee thereafter due hereunder, and shall be and become additional fees recoverable by CITY in the same manner and with like remedies as though it were originally a part of the fees and charges set forth above. C. The fees contained herein shall be reviewed on a peri- odic basis and submitted for City Council approval . D. LESSEE will post with the City Clerk of CITY a perfor- mance bond or letter of credit in the amount of Five Thousand Dollars ( $5,000 . 00) in favor of the City of Redding to assure payment under the terms set forth herein. For the purpose of this Permit, this is -3- construed to mean a negotiable instrument issued by a National or State insurance company or bank doing business within the State of California in a form acceptable to CITY. Cancellation of the performance bond or letter of credit for whatever reason shall forthwith terminate this Permit. ( 1 ) In addition to a performance bond or letter of credit, CITY may accept a Certificate of Deposit (CD) made out to the City of Redding. Such CD shall provide for the CITY' s absolute right to attach to said CD at any time during the Permit Term in the amount up to and including Five Thousand Dollars ( $5, 000 . 00) . Any CD con- templated by the OPERATOR with respect to this Permit must be received and deemed acceptable by the City Attorney of CITY. E. Said bond, letter of credit or CD will be subject to attachment by the CITY upon the expiration of thirty ( 30) days after any monthly fee required by this Permit becomes due and payable. The payment bond or letter of credit will be maintained and renewed as necessary to remain in force throughout the Term of this Permit or any extension thereof . 3 . PARKING SPACES. CITY licenses OPERATOR, and its employees, to use, without charge, authorized employee vehicular-parking spaces located in the vicinity of the Airport terminal building and the area designated for overnight parking. 4 . RIGHT OF ACCESS . CITY shall permit full and unrestricted access by OPERATOR, its employees and invitees, without charge, to and from the Airport terminal and the premises and facilities referred to above, -4- including direct access between the terminal building and OPERATOR' s aircraft parked upon the adjacent apron, for all purposes contemplated by this Permit. 5 . USE OF AIRPORT. CITY licenses OPERATOR to (a) use, in common with others authorized so to do, all runways, taxiways, and aprons which are or may hereafter be provided at Redding Municipal Airport; and (b) to use all other facilities, improvements, equipment, and services which are or may hereafter be provided at the Airport, except those under lease, permit, or assignment to another. These uses shall include and be limited to those reasonably necessary for the proper operation by OPERATOR of its air cargo service; and CITY will grant to OPERATOR all rights reasonably necessary for such uses . 6 . SPACE IN TERMINAL BUILDING. CITY hereby assigns to OPERATOR for its exclusive use in connection with its air cargo service 874 square feet within the terminal building as delineated in the diagram attached hereto as Exhibit "A. " CITY licenses OPERATOR, its employees and invitees, to use, in common with others, and in connection with OPERATOR' s air cargo service, all public space and facilities in and adjacent to the Airport terminal building which are not exclusively assigned to another user. Such space and facilities are accepted by OPERATOR as adequate for reasonably uncongested and unobstructed use by OPERATOR and its employees and invitees . 7 . AIRPORT FACILITIES. Nothing herein contained shall be construed as entitling OPERATOR to the exclusive use of any services, facilities, or property rights at said Airport, except those facilities described in Exhibit "A" attached hereto. -5- 0 8 . SERVICE TO THE PUBLIC. OPERATOR shall make its services available to the public without unjust discrimination, and shall refrain from imposing or levying excessive, discriminatory, or otherwise unreasonable charges or fees for any use of its services; provided, however, that OPERATOR shall have the privilege of refusing service to any person or persons for just cause, without discrimination by virtue of race, color, creed, or sex. 9 . SECURITY RESPONSIBILITIES AND FEES. OPERATOR agrees to accept its security responsibilities with regard to access by authorized and unauthorized persons using the herein premises at all times that the Airport terminal building is left open. Any fines or civil penalties imposed upon CITY by the Federal Aviation Administration for violation caused by the actions or omissions of OPERATOR' s personnel shall be paid by OPERATOR. 10. WASTE; QUIET CONDUCT. OPERATOR shall not commit or suffer to be committed any waste upon the premises, or any nuisance or any other act or thing which may disturb the quiet enjoyment of any other occupant or use of CITY' s adjoining premises . 11 . MECHANICS ' LIENS. OPERATOR shall keep the demised premises and the property on which the demised premises are situated free from any liens arising out of any work performed, material furnished, or obligations incurred by OPERATOR. 12 . RULES AND REGULATIONS. OPERATOR covenants and agrees to comply with all statutes, laws, ordinances, regulations, orders, judgments, decrees, direc- tions, and requirements of all federal, state, county, and city authorities now or hereafter applicable to the herein premises and facilities, or to any adjoining public ways . -6- 13 . UNITED STATES OF AMERICA RESTRICTIONS. A. It is understood and agreed that this Permit is subject to the covenants, restrictions, and reservations con- tained in the following instruments to which the United States of America is a party, to wit: ( 1 ) Quitclaim Deed dated June 6, 1947, to the City of Redding. (2 ) Instrument of Transfer dated October 7, 1947, to the City of Redding. ( 3) Grant Agreements of record executed by the City of Redding in connection with Federal Aid Airport Projects . B. To the extent that the United States of America may release said property or any part thereof from any of said covenants, restrictions, and reservations, OPERATOR shall likewise be released by CITY. 14 . FAA REQUIREMENTS. To comply with Federal Aviation Administration requirements, permittee (OPERATOR) , for itself, its heirs, executors, adminis- trators, personal representatives, successors, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with this Permit: ( 1) That in the event facilities are constructed, main- tained, or otherwise operated on the property described in this Permit for the purpose for which a Department of Transport program or activity is extended, or for another purpose involving the provision of similar services or benefits, permittee (OPERATOR) shall main- tain and operate such facilities and services in com- pliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Trans- portation--Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. (2) That (a) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; (b) that in the construction of any improvements on, over, or under such lands and the furnishing of services thereon, -7- no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimina- tion; and (c) that permittee (OPERATOR) shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49 Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21 Non-discrimination in Federally-Assisted Programs of the Department of transportation--Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. ( 3) That in the event of breach of any of the above non- discrimination covenants, CITY shall have the right to terminate this Permit and to re-enter and repossess said premises and the facilities thereon, and hold the same as if said Permit had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed, including expiration of appeal rights . (4) That permittee (OPERATOR) shall furnish its accommoda- tions and/or services on a fair, equal, and not unjustly discriminatory basis to all users thereof, and it shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; provided that permittee (OPERATOR) may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar type of price reductions to volume purchasers . ( 5) That noncompliance with paragraph 14(4 ) above shall constitute a material breach thereof; and in the event of noncompliance CITY shall have the right to terminate this Permit and the estate hereby created without liability therefor, or, at the election of CITY or the United States, either or both Governments shall have the right to judicially enforce provisions . (6 ) That permittee (OPERATOR) agrees that it shall insert the above five provisions 14( l) through 14 (5) in any agreement, contract, etc. , by which said permittee (OPERATOR) grants a right or privilege to any per- son, firm, or corporation to render accommodations and/or services to the public on the premises herein. ( 7 ) That permittee (OPERATOR) assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to ensure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from participating in any employment activities covered in 14 CFR Part 152 , Subpart E. Permittee (OPERATOR) assures that no person shall be excluded on these grounds from participating in or -g- receiving the services or benefits of any program or activity covered by this subpart. Permittee (OPERATOR) assures that it will require that its covered subor- ganizations provide assurances to permittee (OPERATOR) that they similarly will undertake affirmative action programs, and that they will require assurances from their suborganizations, as required by 14 CFR 152, Subpart E, to the same effort. ( 8) The CITY reserves the right to further develop or improve the landing area of Redding Municipal Airport as it sees fit, regardless of the desires or view of per- mittee (OPERATOR) and without interference or hindrance. (9 ) The CITY reserves the right, but shall not be obligated to permittee (OPERATOR) , to maintain and keep in repair the landing area of Redding Municipal Airport and all publicly-owned facilities of said Airport, together with the right to direct and control all activities of per- mittee (OPERATOR) in this regard. ( 10) That this Permit shall be subordinate to the provisions and requirements of any existing or future agreement between CITY and the United States relative to the development, operation, or maintenance of the Redding Municipal Airport. ( 11) That there is hereby reserved to CITY, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the premises herein. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through said airspace, or landing at, taking off from, or operation on the Redding Municipal Airport. ( 12) That permittee (OPERATOR) agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event future construction of a building is planned for the herein premises, or in the event of any planned modification or alteration of any present or future building or struc- ture situated on the herein premises . ( 13) That permittee (OPERATOR) , by accepting this Permit, expressly agrees for itself, its successors and assigns, that it will not erect nor permit the erection of any structure or object nor permit the growth of any tree, on the land subject to the Permit to be above any mean sea level elevation that would be in noncompliance with Part 77 . In the event the aforesaid covenants are breached, City reserves the right to enter upon the land/premises hereunder and to remove the offending -9- structure or object and cut the offending tree, all of which shall be at the expense of permittee (OPERATOR) . ( 14 ) That permittee (OPERATOR) , by accepting this Permit, agrees for itself, its successors and assigns, that it will not make use of the premises herein in any manner which might interfere with the landing and taking off of aircraft from the Redding Municipal Airport, or other- wise constitute a hazard. In the event the aforesaid covenant is breached, CITY reserves the right to enter upon the herein premises and cause the abatement of such interference at the expense of permittee (OPERATOR) . ( 15) That it is understood and agreed that nothing herein contained shall be. construed to grant or authorize the granting of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S .C. 1349a) . ( 16 ) This Permit and all provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation and taking over of said airport or the exclusive or non-exclusive use of the airport by the United States during the time of war or national emergency. 15 . RESTRICTION OF OPERATIONS. If CITY' s operation of the Airport or OPERATOR's operations at the Airport are substantially restricted by any competent governmental or judicial action, either party hereto will have the right, upon notice, to an equitable reduction in the services and facilities to be afforded hereunder, or the rental to become due hereunder, from the time of such notice until such restriction has been remedied and normal operations restored. 16 . IMPROVEMENTS. A. OPERATOR accepts the terminal building premises in their present condition. Any alterations, construction, or improvements desired by OPERATOR on the premises must be performed at no cost to CITY and shall be subject to the prior written approval of the CITY. When required by the CITY to do so, OPERATOR will submit plans and specifications prior to any alterations, construction or improvements . -10- B. The display by OPERATOR of any signs, advertising or similar matter on the terminal building premises without the prior written approval of CITY is prohibited. Any advertisement not directly related to OPERATOR' s business is prohibited. C. OPERATOR is required to provide business "logo" type signage. Such signage and its size and placement, must be approved by the CITY. D. Unless otherwise agreed by the parties, all partitions, wiring and piping, or other improvements installed on the terminal building premises by the OPERATOR must be removed by the OPERATOR, at the termination or expira- tion of this Permit, and thereby leaving the terminal building premises in good condition. CITY may grant additional time for the removal of improvements if hardship is established by OPERATOR. If, in CITY's opinion, removal will damage the premises or the termi- nal, CITY may either prohibit removal or require OPERA- TOR to repair all damage connected with removal . E. Title to any improvements not removed from the terminal building premises as provided herein passes to CITY. F. Upon request by CITY, OPERATOR shall deliver to CITY three ( 3) copies of as-built drawings showing the location and dimensions of improvements placed or con- structed on the terminal building premises by OPERATOR. 17 . MAINTENANCE. A. OPERATOR shall maintain the terminal building premises which it leases in good repair and appearance and in a safe condition at all times . OPERATOR shall do, or cause to be done without delay, all those things which, in the opinion of CITY, are necessary or desirable in the interest of safety or to maintain the terminal building premises which it leases in good repair and appearance. -11- B. CITY will maintain the structure of the terminal, the roofs and exterior walls . CITY will provide reasonable janitorial service for the public areas of the terminal, including solid waste removal from the outside dumpster. CITY will also clean and maintain the public areas in the terminal . C. CITY will maintain the electrical, plumbing, and heating and cooling systems on the terminal building premises in good condition and repair. CITY may refuse to maintain any systems installed on the terminal building premises by OPERATOR and may charge OPERATOR for any repair resulting from OPERATOR's negligence. D. CITY reserves the right to require that any improvements or any portion thereof placed through, on or above the terminal building premises be relocated at the expense of OPERATOR when such relocation is determined to be necessary by CITY. The determination shall be made on a reasonable basis and only for the purpose of expan- sion, relocation, or better utilization of facilities operated by CITY. E. OPERATOR hereby expressly waives any and all claims and holds CITY harmless for damages arising or resulting from failures or interruption of utility services furnished by CITY herein including but not limited to stoppages in electrical energy, the quantity or temperature of water, space heating or cooling, or for the failure or interruption of any public or passenger conveniences . 18 . CITY DIRECTED RELOCATION. OPERATOR acknowledges and agrees that CITY may require the relocation, in whole or in part, of the terminal building premises upon finding that relocation is necessary to meet the needs of the traveling public at the Airport. A. CITY, at its sole expense, will : -12- ( 1 ) Construct the demising walls and interior perma- nent improvements to the new OPERATOR area using standard materials . The term "interior permanent improvements" is construed to include floors, ceilings, carpeting, lighting, electrical, wall finishes, heating units, air ventilation, and permanent fixtures similar in type and quality to those in the OPERATOR area being relocated. B. OPERATOR, at its sole expense, will : ( 1) Relocate any fixture, furnishing, or equipment of a nonpermanent nature located in any existing OPERATOR area which is being relocated. ( 2 ) Provide any additional fixture, furnishing, or equipment which OPERATOR finds necessary or de- sirable to fully use the new area. ( 3) Upon completion of the new area, vacate and sur- render to CITY former OPERATOR space. CITY and OPERATOR agree to perform their respective obliga- tions under this paragraph in an expeditious manner, excluding delays which are beyond the control of the respective parties . 19 . CITY ADMINISTRATION. Whenever OPERATOR is required to secure the approval or consent from CITY herein, CITY shall mean the Director of Airports of CITY. However, at the option of the Director of Airports or the OPERATOR, and according to proper procedure, any such questions may be referred to the City Council of CITY, whose decision thereon shall be final . 20 . PREMISES AS-IS. OPERATOR hereby certifies and agrees that it has inspected the above-described premises and accepts the same in its existing condition. OPERATOR expressly covenants and agrees that any expenses incurred in the maintenance, repair, and modification or improvements of said premises shall be the sole obligation of -13- OPERATOR; OPERATOR further covenants and agrees to hold CITY harm- less therefrom. 21 . TAXES . OPERATOR agrees to pay promptly when due any and all taxes assessed against its personal property and any possessory interest tax levied by reason of its occupancy of the demised premises . 22 . INSURANCE. A. This Permit is granted upon the express condition that CITY, its officers, agents, and employees, shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with OPERATOR' s activities at said Airport, including claims of OPERATOR, its officers, agents, employees, and invitees, unless such damages arise from the sole negligence or misconduct of CITY, its officers, agents or employees . CITY, its officers, agents, and employees, shall be held harmless from any and all liability, loss, cost or obligation on account of or arising out of any such injury, death, or loss however occurring, unless arising out of their sole negligence or misconduct. B. OPERATOR shall procure and maintain from a company satisfactory to CITY, at its sole cost and expense and at all times during the term of this Permit, comprehen- sive general liability insurance policy for aircraft liability and airport premises liability in an amount of not less than One Million Dollars ($1,000,000 .00) combined single limits . In the event OPERATOR should begin to operate their own aircraft or aircraft leased by them, OPERATOR will provide insur/g�ce in an amount of (45/0 0001000-00). not less than Ten Million DollarsSaid policy shall name CITY, its officers, agents and employees, harmless as additional insureds, and shall further contain a provision obligating the insurance -14- carrier to notify CITY in writing at least ten ( 10) days prior to any cancellation or reduction of such in- surance. A Certificate of Insurance evidencing such coverage and notice requirement shall be approved by and filed with the Risk Manager of CITY, prior to the commencement of this Permit. C. It is further understood and agreed as a condition of this Permit that OPERATOR will provide workers ' compen- sation insurance on its employees . A Certificate evidencing such insurance shall be approved by and filed with the Risk Manager of CITY. Said Certificate shall contain a provision obligating the insurance carrier to notify CITY in writing at least ten ( 10) days prior to any cancellation or reduction of such insurance. To obtain an exemption from this requirement should OPERA- TOR have no employees, OPERATOR shall provide the Risk Manager of CITY with a letter stating that it is not employing any person or persons in any manner so as to become subject to the workers ' compensation laws of California; provided, however, that should OPERATOR later become subject to the workers ' compensation provisions of the Labor Code, it will forthwith comply with the insurance requirements set forth above. Nothing herein is intended to exculpate CITY from its own negligence. 23 . TRADE FIXTURES. Any trade fixtures, equipment, and other property brought, installed, or placed by OPERATOR in or about the herein premises shall be and remain the property of OPERATOR except as otherwise provided herein. OPERATOR shall have the right at any time during the term hereof to remove any or all of its property, subject to OPERATOR' s obligation to repair all damage, if any, resulting from such removal . Such trade fixtures, equipment, and other property -15- of OPERATOR shall be removed by OPERATOR from the herein premises by the expiration or earlier termination of this Permit. 24 . RIGHT TO ENTER AND MAKE REPAIRS. CITY and its authorized officers, agents, employees, contrac- tors, subcontractors, and other representatives shall have the right to enter into OPERATOR' s premises and facilities (as set forth in attached Exhibit "A" ) for the following purposes : A. To inspect said premises and facilities at reasonable intervals during the regular business hours (or at any time in case of emergency) to determine whether OPERA- TOR has complied with and is complying with the terms and conditions of this Permit with respect to such premises and facilities; B. In the exercise of CITY police power; C. To inspect the herein premises and facilities, and perform any and all things with reference thereto which CITY is obligated or authorized to do as set forth herein. No such entry by or on behalf of CITY within or upon said premises and facilities shall cause or constitute a termination of this Permit, or be deemed to constitute an interference with the possession thereof by OPERATOR. As a result of any entry pursuant to this Permit, CITY will only be liable for its own negligence and for returning the terminal building premises to their former condition using standard materials . CITY will use its best efforts to minimize disruption of OPERATOR' s operation. 25 . DAMAGE OR DESTRUCTION OF PREMISES. A. In the event the terminal building in which OPERATOR occupies space hereunder shall be partially damaged by fire or other casualty, but not rendered untenantable, the same shall be repaired with due diligence by CITY at its own cost and expense. B. If the damage shall be so extensive as to render the premises untenantable but capable of being repaired -16- within 45 days, the same shall be repaired with due diligence by CITY at its own cost and expense, and the rent payable hereunder with respect to OPERATOR's space shall be proportionately paid up to the time of such damage, and shall thenceforth cease until such time as the premises shall be fully restored. C. In the event the terminal building is completely de- stroyed by fire or other casualty, or so damaged that it will remain untenantable for more than 45 days, OPERATOR shall pay said proportionate rent up to the time of such damage, and shall have the following options : i . to cancel this Permit forthwith in writing; or ii . if said building shall be repaired or recon- structed by CITY at its own cost and ex- pense, OPERATOR may temporarily suspend its operations, or a part thereof . If OPERATOR temporarily suspends its entire operation, rent shall thenceforth cease until the pre- mises shall be fully restored. If OPERATOR continues to operate a portion of its ser- vices, OPERATOR shall pay a proportionate rent until such time as the premises shall be fully restored. D. In the event that the Redding Municipal Airport or the premises herein occupied by OPERATOR are rendered untenantable or unusable because of the condition thereof other than due to fire or casualty as set forth above, and except by reason of fog, snow, flood, earth- quake, or other uncontrollable conditions, there shall be a reasonable and proportionate abatement of the charges provided for herein during the period that the same are so untenantable or unusable. -17- 26 . ASSIGNMENT OR SUBLETTING. OPERATOR shall not assign this Permit or any interest therein, and shall not sublet the demised premises or any part thereof, or any right or privilege appurtenant thereto, nor suffer any other person (agents and employees of OPERATOR excepted) to occupy or use the demised premises or any portion thereof without the written consent of CITY first had and obtained. A consent by CITY to one assignment, subletting, occupancy, or use by another party shall not be deemed to be a consent to any subsequent assignment, subletting, occupancy, or use by another person or entity. Any such assignment, subletting, occupancy, or use by another person or entity without such consent by CITY shall be void and shall, at the option of CITY, terminate this Permit. This Permit shall not, nor shall any interest therein, be assigned as to the interest of OPERATOR, by operation of law, without the written consent of CITY. CITY agrees that it will not arbitrarily or capriciously withhold its consent required hereunder. 27 . BANKRUPTCY AND INSOLVENCY. If OPERATOR shall be adjudged bankrupt, either by voluntary or involuntary proceedings, or if OPERATOR shall be the subject of any proceeding to stay the enforcement of obligations against it in the form of reorganization or otherwise under and pursuant to any existing or future laws of the Congress of the United States, or if OPERATOR shall discontinue business or fail in business, or abandon or vacate said premises, or ,make an assignment for the benefit of creditors, or if said premises should come into possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceedings with power to take charge, possession, control or care of said premises, CITY shall have the option to forthwith terminate this Permit and re-enter the premises and take possession thereof . In no event shall this Permit be deemed an asset of OPERATOR after adjudication in bankruptcy. -18- 28 . REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT. CITY shall have the right to terminate any lease, permit, license, or agreement ( including that of OPERATOR herein) covering a commercial or noncommercial operation, and to revoke a lease, permit, license, or agreement on any land or facility at the Airport ( including that of OPERATOR herein) for any cause or reason provided by these standards, or by law, or upon the happen- ing of one or more of the following : a. Filing a petition of voluntary or involuntary bankruptcy with respect to the operator or licensee. b. The making by the operator or licensee of any general assignment for the benefit of creditors . C. The abandonment or discontinuance of any operation at the Airport by the commercial operator, or the failure to conduct any service, operation, or activity which the operator, permittee, or licensee has agreed to provide under the terms of his contract. If this condition exists for a period of ten ( 10) days without prior written consent of CITY, it will constitute an abandon- ment of the land or facilities and the lease, permit and/or license shall become null and void. d. The failure of an operator, permittee or licensee to pay promptly when due all rents, charges, fees, or other payments in accordance with applicable leases, permits, or licenses. e. The failure of the operator, permittee or licensee to remedy any default, breach or violation of the Airport Rules and Regulations by him or his employees within thirty ( 30) days after notice from the CITY. f . Violation of any of these standards and rules and regulations or failure to maintain current licenses required for the permitted operation. g. Intentionally supplying CITY with false or misleading information or misrepresenting any material fact on the application or documents, or in statement to or before the CITY, or intentional failure to make full disclosure on a financial statement or other required documents . 29 . TERMINATION. A. This Permit is subject to cancellation by either party upon giving sixty (60) days ' written notice in advance of such cancellation date. -19- B. Breach by OPERATOR of any of the terms, conditions, and agreements contained herein, if not corrected by OPERA- TOR within sixty ( 60) days ' written notice by CITY to do so, shall be a basis for cancellation of this Permit. 30 . VACATION OF PREMISES BY OPERATOR. OPERATOR covenants and agrees to yield and deliver possession of the terminal building premises to CITY on the date of the termination, cancellation or expiration of this Permit promptly, peaceable, quietly and in as good order and condition as the same now or may be hereafter improved by OPERATOR or CITY, reasonable use and wear and tear excepted. OPERATOR shall be allowed a maximum of five (5) days follow- ing the effective date of the cancellation of this Permit within which to remove all of OPERATOR' s personal property, equipment, furniture and fixtures from the terminal building premises . OPERATOR and CITY agree, as part of the consideration for this Permit, that all property remaining on the terminal building premises after the expiration of said five (5) days will become the sole property of CITY, with full title vested in CITY, and CITY may remove, modify, sell, or destroy the property as it sees fit. 31 . NOTICE. Any notices or demands that may be given by either party hereunder, including notice of default and notice of termination, shall be deemed to have been fully and properly given when made in writing, enclosed in a sealed envelope and deposited in the United States Post Office, certified mail, postage prepaid, or delivered via reputable overnight delivery company, addressed as follows : To CITY: City of Redding 760 Parkview Avenue Redding, CA 96001 Attn: Director of Airports To OPERATOR: Airborne Freight Corporation dba Airborne Express P. 0. Box 662/3101 Western Avenue Seattle, WA 98111 Attn: Properties Department -20- 32 . CE A. It has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act. IN WITNESS WHEREOF, the CITY OF REDDING and AIRBORNE FREIGHT CORPORATION, doing business as AIRBORNE EXPRESS, have executed this Permit for Commercial Activities on the day and year set forth below. CITY OF REDDING DATED: , 1995 By: Mayor AIRBORNE FREIGHT CORPORATION, DOING BUSINESS AS AIRBORNE EXPRESS DATED: 0 -,,,rjv 1995 By: ATTEST: 0` -` ` RYiCu�dSEL CONNIE STROHMAYER, City Clerk CONTENT APPROVED: FORM A,ROVE r" J ;p -141 GEORGE E. PERRY, JR. IV W. LEONARD WINGAVE Director of Airports City Attorney -21- o t-7 F4 CA o A=RBORNE EXP RE S S EXHIBIT "A" CITY OF REDDING TERMINAL BUILDING RENTAL SPACE REDDING MUNICIPAL AIRPORT