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HomeMy WebLinkAboutReso 92-235 - Approve & Authorize the mayor to execute the lease between COR & John Castellanos & Jeffery Gedecke, DBA Land Yachts Limousines Co for Airport Ground Transportation Serv Act from within the RMA Terminal Bldg r RESOLUTION NO. q2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE THE LEASE BETWEEN THE CITY OF REDDING AND JOHN CASTELLANOS AND JEFFERY GEDECRE, DOING BUSINESS AS LAND YACHTS LIMOUSINES CO. , FOR AIRPORT GROUND TRANSPORTATION SERVICE ACTIVITY FROM WITHIN THE REDDING MUNICIPAL AIRPORT TERMINAL BUILDING. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby approves the Lease between the City of Redding and John Castellanos and Jeffery Gedecke, dba Land Yachts Limousines Co. , a true copy of which is attached hereto and incorporated herein by reference. 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Lease 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 introduced and read at a regular meeting of the City Council of the City of Redding on the 19th day of may 1992, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Anderson, Arness, Kehoe & Moss NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Dahl ABSTAIN: COUNCIL MEMBERS: None �1 CHARLIE MOSS, Mayor City of Redding A !ST: FORM APPROVED: � riC/,e Qcc N CONNIE STR YER, C- ty Clerk RAtMALL A. HAYS, C' y Attorney W 01 L E A S E THIS LEASE is made and entered into this 20th day of May 1992 by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "LESSOR, " and JOHN CASTEL ANOS and JEFFERY GEDECRE, dba LAND YACHTS LIMOUSINES CO. , hereinafter referred to as "LESSEE" : W I T N E S S E T H: IT IS MUTUALLY AGREED by and between the parties hereto as follows : 1. DESCRIPTION OF PREMISES. The parties acknowledge that LESSOR owns, maintains, and operates the Redding Municipal Airport, and that LESSEE desires to use a portion of said Airport for the purpose of operating an airport limousine ground transportation service activity from within the passenger terminal building. Therefore, LESSOR hereby leases to LESSEE and LESSEE hires from Lessor that part of the Redding Municipal Airport passenger terminal building depicted in Exhibit "A" attached hereto and incorporated herein by reference (hereinafter called "Premises" ) , upon the terms and conditions and for the compensation set forth below. 2. TERM. The term of this Lease shall be for a period of one ( 1) year commencing May 20, 1992, to and including May 19, 1993. 3. LESSEE'S OPTION TO RENEW LEASE. LESSEE shall have two ( 2 ) one-year options to extend the term of this Lease. Such options may extend the initial one-year term of this Lease through May 19 , 1995 . If LESSEE exercises such options, all of the terms of this Lease shall remain in full force and effect, with the exception of this clause covering LESSEE' s options to renew for a further term. The options shall be exercised by written notice addressed by LESSEE to LESSOR no less than ninety ( 90 ) days prior to the expiration of the immediate prior one-year rental period. 4. COMMERCIAL ACTIVITIES. a. LESSEE' s commercial activities shall consist of and be limited to the operation of an Airport Limousine Ground Transportation Service. This service may include the transportation and delivery of passenger luggage. b. Any other commercial activity that LESSEE may wish to carry on at said Airport, in connection with the fore- going or independently, shall first require the written permission of LESSOR. 5. COMPATIBILITY. City Council of Lessor has determined that these commercial activities are compatible with the Airport Master Plan, and that the best interests of the public and the City of Redding will be served by such approval. 6. FEES AND CHARGES. a. LESSEE will pay to LESSOR for the privileges herein granted a monthly rental of Sixty-three Dollars ( $63.00) which is comprised of the following fees and charges. i. The sum of Thirty-nine Dollars and Six Cents ( $39.06) for its terminal space fee, based on 36 square feet of area as depicted in Exhibit "A" attached hereto and incorporated herein by reference. ii. The sum of Eighteen Dollars and Ninety Cents ( $18.90) for its proportional share of the terminal maintenance and operational costs and for the area depicted in Exhibit "A" attached -2- hereto. "Maintenance and operational costs" provided by LESSOR are defined as electrical, air conditioning, heating, water, garbage, and janitorial services for the shared public areas; LESSEE is to pay for all other utilities required in its operations . iii. The sum of Five Dollars and Four Cents ( $5.04) for its proportional share of terminal security costs. b. The payments called for above shall be payable monthly, in advance except for landing fees which shall be due within 20 days from the date of the invoice. LESSOR is entitled to collect, and LESSEE agrees to pay to LESSOR, 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 and one-half percent ( leo) per month, based on an annual rate of eighteen percent ( 180) . Without prejudice to any other remedy which otherwise might be used for non- payment of fees and charges, or other breach of this Lease, if LESSOR 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 LESSEE to perform any one or more of the terms , conditions , and covenants of this Lease, or as the result of any act or omission of LESSEE contrary to said terms , conditions or coven- ants, the sum or sums so paid, including all interest, costs, damages, or penalties, may be added, after fifteen ( 15 ) days ' written notice by LESSOR to LESSEE, to any fee thereafter due hereunder, and shall be and become additional fees recoverable by LESSOR in the same manner and with like remedies as though it were -3- originally a part of the fees and charges set forth above. C. The fees contained herein shall be reviewed on a periodic basis and submitted for City Council approval. 7. PARKING SPACES. LESSOR licenses LESSEE and its employees to use, without charge, authorized and designated employee vehicular-parking spaces located in the vicinity of the Airport terminal building. 8. RIGHT OF ACCESS. LESSOR shall permit full and unrestricted access by LESSEE, its employees and invitees, without charge, to and from the Airport terminal and the Premises and facilities referred to above. 9. USE OF AIRPORT. LESSOR licenses LESSEE to use in common with others authorized so to do, with the exception of all runways, taxiways, and aprons which are or may hereafter be provided at Redding Municipal Airport, 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 LESSEE of its airport limousine ground transportation service; and LESSOR will grant to LESSEE, without charge, all rights reasonably necessary for such uses . 10. SPACE IN TERMINAL BUILDING. LESSOR hereby assigns to LESSEE for its exclusive use in connection with its airport limousine ground transportation service 36 square feet within the terminal building as delineated in the diagram attached hereto as Exhibit "A. " -4- LESSOR licenses LESSEE, its employees and invitees , to use, in common with others , and in connection with LESSEE' s airport limousine ground transportation 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 LESSEE as adequate for reasonably uncongested and unobstructed use by LESSEE and its employees and invitees. 11. AIRPORT FACILITIES. Nothing herein contained shall be construed as entitling LESSEE to the exclusive use of any services, facilities, or property rights at said Airport, except those facilitates des- cribed in Exhibit "A" attached hereto. 12. SERVICE TO THE PUBLIC. a. LESSEE shall make its services available to the public seven ( 7 ) days a week 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 LESSEE shall have the privilege of refusing ser- vice to any person or persons for just cause, without discrimination by virtue or race, color, creed, or sex. 13. SERVICE STANDARDS. LESSEE shall operate its business in accordance with the highest standards and practices of the limousine service trade. Further, LESSEE understands and acknowledges that the LESSOR' s obligation to facilitate air travel of the public at the Airport includes efficiently operated ground transportation services for the use of air travelers and other members of the public. Consequently, and as an additional consideration to the LESSOR for granting this Lease to the LESSEE, LESSEE covenants as follows: -5- A. To conduct its operations in a quiet, orderly and courteous manner, so as not to annoy, disturb, or offend customers , patrons , or tenants of the Airport. B. All automobile safety related items must be maintained in an operable condition at all times. All automobiles used by the LESSEE for its business must have a business logo or name placed in a conspicuous location. D. LESSEE and its employees shall abide by all reasonable rules , regulations, policies, and instructions of the Airport Director or his designee. E. LESSEE shall provide hours of operations in a manner that will serve the needs of the traveling public who use regularly scheduled passenger flights. F. LESSEE shall insure a copy of its current and updated schedule of hours of operation is maintained on file with the Airport Director. G. Except in case of emergencies, LESSEE shall obtain the approval of the Airport Director prior to any extended periods of Premises closure, such extended period being defined as anything in excess of five ( 5 ) calendar days. H. Employees must be well groomed at all times and, in general, maintain a pleasant attitude. I . Employees must be dressed in a clean, neat and appropriate manner at all times for the personal contact and conducting of its business and services with the traveling public. 14. SECURITY RESPONSIBILITIES AND FEES. LESSEE 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 -6- left open. Any fines imposed upon LESSOR by the Federal Aviation Administration Security Field Office for violation of security caused by the actions of LESSEE' s personnel shall be paid by LESSEE. 15. WASTE; QUITE CONDUCT. LESSEE 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 LESSOR' s adjoining premises. 16. MECHANICS' LIENS. LESSEE 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 obli- gations incurred by LESSEE. 17. RULES AND REGULATIONS. LESSEE 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. 18. UNITED STATES OF AN MCA RESTRICTIONS. a. It is understood and agreed that this Lease, insofar as it pertains to the use of the Redding Municipal Air- port, is subject to the covenants , restrictions and reservations contained in the following instruments to which the United States of America is a party: ( 1 ) Quitclaim Deed dated June 3 , 1947, to the City of Redding; ( 2 ) Instrument of Transfer dated October 7 , 1947, to the City of Redding; and -7- ( 3 ) Grant Agreements of record executed by the City of Redding in connection with Federal Aid Airport Projects. b. The LESSEE, for itself , its successors and assigns, as a part of the consideration hereof, does hereby cove- nant and agree that in the event facilities are con- structed, maintained, or otherwise operated on the said property described in this Lease for a purpose for which a Department of Transport program or activity is extended, or for another purpose involving the provi- sion of similar services or benefits, the LESSEE shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. C. LESSEE, for itself, its successors and assigns , as a part of the consideration hereof , does hereby covenant and agree that: ( 1 ) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be other- wise subjected to discrimination in the use of said facilities ; ( 2 ) that in the construction of any im- provements on, over, or under such lands and the furnishing of services thereon, 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 discrimination; and ( 3 ) that the LESSEE shall use the Premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21 , Nondiscrimination in Federally Assisted -8- r • • Programs of the Department of Transportation, and as said Regulations may be amended. d. That in the event of breach of any of the above non- discrimination covenants , LESSOR shall have the right to terminate the Lease and to re-enter and repossess said lands and facilities thereon, and hold the same as if said Lease had never been made or issued; provided, however, that the LESSEE allegedly in breach shall have the right to contest said alleged breach under applica- ble Federal Aviation Administration procedures, and any sanctions under or termination of the Lease shall be withheld pending completion of such procedures. e. That in the event of breach of any of the above non- discrimination covenants, LESSOR shall have the right to re-enter said lands and facilities thereon, and the above-described lands and facilities shall thereupon revert to and vest in and become the absolute property of LESSOR and its assigns; provided, however, that the party allegedly in breach shall have the right to contest said alleged breach under applicable Federal Aviation Administration procedures, and the right of reverter shall not be exercised until completion of such procedures. f . To the extent that the United States of America may release said Airport or any part thereof from any of said covenants, restrictions , and reservations , LESSEE shall likewise be released by LESSOR. 19. FAA REQUIREMENTS. To comply with Federal Aviation Administration requirements, LESSEE, for itself, its successors and assigns, as a part of the consideration hereof, does hereby covenant and agree, as material terms of this Lease: -9- ( 1 ) That in the event facilities are constructed, main- tained, or otherwise operated on the property described in this Lease for -ie purpose for which a Department of Transport program or activity is extended, or for another , purpose involving the provision of similar services or benefits , LESSEE shall maintain and operate .such facilities and services in compliance 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 Transportation-- 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, 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 discrimination; and (c) that LESSEE 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, Nondiscrimination 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, LESSOR shall have the right to terminate this Lease and to re-enter and repossess said Premises and the facilities thereon, and hold the same as if said Lease had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and com- pleted, including expiration of appeal rights. ( 4 ) That LESSEE shall furnish its accommodations and/or services on a fair, equal, and not unjustly discrimina- tory basis to all users thereof , and it shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; provided that LESSEE may be allowed to make reasonable and nondiscriminatory -10- 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 LESSOR shall have the right to termi- nate this Lease and the estate hereby created without liability therefore, or, at the election of LESSOR or the United States, either or both Governments shall have the right to judicially enforce provisions . ( 6 ) That LESSEE agrees that it shall insert the above five provisions 14( 1 ) through 14 ( 5 ) in any agreement, contract, etc. , by which said LESSEE grants a right or privilege to any person, firm, or corporation to render accommodations and/or services to the public on the Premises herein. ( 7 ) That LESSEE assures that it will undertake an affirma- tive 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. LESSEE assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. LESSEE assures that it will require that its covered suborganizations provide assurances to LESSEE 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 ) That LESSOR 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 LESSEE and without interference or hindrance. ( 9 ) That LESSOR reserves the right, but shall not be obli- gated to LESSEE, 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 LESSEE in this regard. ( 10 ) That this Lease shall be subordinate to the provisions and requirements of any existing or future agreement -11- between LESSOR and the United States relative to the development, operation, or maintenance of the Redding Municipal Airport. ( 11 ) That there is hereby reserved to LESSOR, 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 LESSEE 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 structure situated on the herein Premises. ( 13 ) That LESSEE, by accepting this Lease, 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 this Lease above the mean sea level eleva- tion of 502 feet. In the event the aforesaid covenants are breached, LESSOR reserves the right to enter upon the land/Premises hereunder and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of LESSEE. ( 14 ) That LESSEE, by accepting this Lease, 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, LESSOR reserves the right to enter upon the herein Premises and cause the abatement of such interference at the expense of LESSEE. ( 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) . -12- ( 16 ) That this Lease 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 nonexclusive use of the airport by the United States during the time of war or national emergency. 20. RESTRICTION OF OPERATIONS. If LESSOR' s operation of the Airport or LESSEE' 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. 21. IMPROVEMENTS. a. LESSEE accepts the terminal building Premises in their present condition. Any alterations, construction, or improvements desired by LESSEE on the Premises must be performed at no cost to LESSOR and shall be subject to the prior written approval of the LESSOR. When re- quired by the LESSOR to do so, LESSEE will submit plans and specifications prior to any alterations, construc- tion or improvements. b. The display by LESSEE of any signs, advertising or similar matter on the terminal building Premises without the prior written approval of LESSOR is prohibited. Any advertisement not directly related to LESSEE' s business is prohibited. C. LESSEE is required to provide business "logo" type signage. Such signage and its size and placement, must be approved by the LESSOR. -13- d. Unless otherwise agreed by the parties, all partitions, wiring and piping, or other improvements installed on the terminal building Premises by the LESSEE must be removed by the LESSEE, at the termination or expiration of this Lease, and thereby leaving the terminal build- ing Premises in good condition. LESSOR may grant additional time for the removal of improvements if hardship is established by LESSEE. If, in LESSOR' s opinion, removal will damage the Premises or the terminal, LESSOR may either prohibit removal or require LESSEE to repair all damage connected with removal. e. Title to any improvements not removed from the terminal building Premises as provided herein passes to LESSOR. f. Upon request by LESSOR, LESSEE shall deliver to LESSOR three ( 3 ) copies of as-built drawings showing the location and dimensions of improvements placed or constructed on the terminal building Premises by LESSEE. 22. MAINTENANCE. a. LESSEE shall maintain the terminal building Premises in good repair and appearance and in a safe condition at all times. LESSEE shall do, or cause to be done without delay, all those things which, in the opinion of LESSOR, are necessary or desirable in the interest of safety or to maintain the terminal building Premis- es in good repair and appearance. b. LESSOR will maintain the structure of the terminal, the roofs and exterior walls . LESSOR will provide reason- able janitorial service for the public areas of the terminal, including solid waste removal from the outside dumpster. LESSOR will also clean and maintain the public areas in the terminal. -14- C . LESSOR will maintain the electrical, plumbing, and heating and cooling systems on the terminal building Premises in good condition and repair. LESSOR may refuse to maintain any systems installed on the termi- nal building Premises by LESSEE and may charge LESSEE for any repair resulting from LESSEE' s negligence. d. LESSOR reserves the right to require that any improve- ments or any portion thereof placed through, on or above the terminal building Premises be relocated at the expense of LESSEE when such relocation is deter- mined to be necessary by LESSOR. The determination shall be made on a reasonable basis and only for the purpose of expansion, relocation, or better utilization of facilities operated by LESSOR. e. LESSEE hereby expressly waives any and all claims and holds LESSOR harmless for damages arising or resulting from failures or interruption of utility services furnished by LESSOR herein including but not limited to stoppages in electrical energy, the quantity of temper- ature of water, space heating or cooling, or for the failure or interruption of any public conveniences. 23. LESSOR DIRECTED RELOCATION. LESSEE acknowledges and agrees that LESSOR 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. LESSOR, at its sole expense, will: ( 1 ) Construct the demising walls and interior perma- nent improvements to the new LESSEE area using standard materials. The term "interior permanent improvements" is construed to include floors , ceilings, carpeting, lighting, electrical, wall -15- finishes, heating units, air ventilation, and permanent fixtures similar in type and quality to those in the LESSEE area being relocated. ( 2 ) If only a portion of LESSEE ' s area is relocated, perform the construction necessary to enclose and restore the remainder of LESSEE' s area, and render the area useable for LESSEE' s functions authorized by the Lease. b. LESSEE, at its sole expense, will: ( 1 ) Relocate any fixture, furnishing, or equipment of a nonpermanent nature located in any existing LESSEE area which is being relocated. ( 2 ) Provide any additional fixture, furnishing, or equipment which LESSEE finds necessary or desir- able to fully use the new area. ( 3 ) Upon completion of the new area, vacate and surrender to LESSOR former LESSEE space. LESSOR and LESSEE agree to perform their respective obli- gations under this paragraph in an expeditious manner, excluding delays which are beyond the control of the respective parties. The new area to which LESSEE is directed to relocate must have a floor area not smaller than the floor area of the space being vacated by LESSEE. LESSOR will make every reasonable effort to insure that the new LESSEE area provides access and exposure to public traffic similar to the former LESSEE area. However, LESSOR is not responsible for any exemplary, consequential, or special damages , including lost profits , that LESSEE may incur as a result of a relocation under this paragraph. 24. LESSOR ADMINISTRATION. Whenever LESSEE is required to secure the approval. or consent from LESSOR herein, LESSOR shall mean the Director of Airports of LESSOR. However, at the option of the Director of Airports or the -16- LESSEE, and according to proper procedure, any such questions may be referred to the City Council of LESSOR, whose decision thereon shall be final. 25. PREMISES AS-IS. LESSEE hereby certifies and agrees that it has inspected the above-described Premises and accepts the same in its existing con- dition. LESSEE expressly covenants and agrees that any expenses incurred in the maintenance, repair, and modification or improve- ments of said Premises shall be the sole obligation of LESSEE; LESSEE further covenants and agrees to hold LESSOR harmless therefrom. 26. TAXES. LESSEE 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. 27. HOLD H71RML•ESS; INSURANCE. a. This Lease is granted upon the express condition that LESSOR shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with LESSEE' s use of Premises hereunder leased, whether or not the same be groundless, including claims of LESSEE, its agents, employees , customers, or other persons upon the leased Premises for any reason. LESSEE shall indemnify and save harmless LESSOR, its officers, agents, and employ- ees, from any and all liability, loss , cost or obliga- tion on account of or arising out of any acts or omissions, injury, death, or loss caused by the negli- gence or other legal fault of LESSEE or its agents, -17- employees , customers , or other persons upon the leased Premises for any reason. b. It is specifically understood and agreed as a condition of this Lease that LESSEE shall, at LESSEE' s own expense, obtain and keep in full force and effect commercial general insurance in a minimum combined single limits amount of $1, 000 , 000 . 00 , which insurance shall be in a form and content sufficient and adequate to save LESSOR, its officers , agents, and employees, harmless from any and all claims arising out of the use and occupancy of said Premises. Such insurance shall be carried with an insurance company acceptable to LESSOR, and a Certificate evidencing such insurance shall be approved by the Risk Manager of LESSOR. and filed with him prior to the commencement of the term hereof, which shall name LESSOR, its officers, agents and employees, as additional insureds and guarantee at least ten ( 10 ) days advance notice to LESSOR, in writing, before any cancellation or reduction of such insurance coverage. Insurance requirements will be reevaluated by LESSOR every year. LESSEE shall main- tain the insurance limits specified above, or as revised by LESSOR, whichever shall be greater. C. It is further understood and agreed as a condition of this Lease that LESSEE will provide workers ' compen- sation insurance on its employees, meeting the minimum requirements of the California Labor Code, and furnish the Risk Manager of LESSOR with a Certificate evidenc- ing such insurance, to be approved by him, prior to the commencement of the term hereof. Said Certificate shall contain a provision obligating the insurance carrier to notify LESSOR in writing at least ten ( 10 ) -18- days prior to any cancellation or reduction of such insurance. To obtain an exemption from this require- ment should LESSEE have no employees , LESSEE shall provide the Risk Manager of LESSOR 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 LESSEE 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 LESSOR from its own negligence. 28. TRADE FIXTURES. Any trade fixtures, equipment, and other property brought, installed, or placed by LESSEE in or about the herein Premises shall be and remain the property of LESSEE except as otherwise provided herein. LESSEE shall have the right at any time during the term hereof to remove any or all of its property, subject to LESSEE' s obligation to repair all damage, if any, resulting from such removal. Such trade fixture, equipment, and other property of LESSEE shall be removed by LESSEE from the herein Premises by the expiration or earlier termination of this Lease. 29. RIGHT TO ENTER AND MARE REPAIRS. LESSOR and its authorized officers , agents , employees , contractors, subcontractors, and other representatives shall have the right to enter into LESSEE' 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 LESSEE -19- has complied with and is complying with the terms and conditions of this Lease with respect to such Premises and facilities; b. In the exercise of LESSOR police power; C. To inspect the herein Premises and facilities, and perform any and all things with reference thereto which LESSOR is obligated or authorized to do as set forth herein. No such entry by or on behalf of LESSOR within or upon said Premises and facilities shall cause or constitute a termination of this Lease, or be deemed to constitute an interference with the possession thereof by LESSEE. As a result of any entry pursuant to this Lease, LESSOR will only be liable for its own negligence and for returning the terminal building Premises to their former condition using standard materials. 30. DAMAGE OR DESTRUCTION OF PREMISES. a. In the event the terminal building in which LESSEE 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 LESSOR 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 within 45 days, the same shall be repaired with due diligence by LESSOR at its own cost and expense, and the rent payable hereunder with respect to LESSEE' 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 destroyed by fire or other casualty, or so damaged that it will remain untenantable for more than 45 days , -20- LESSEE shall pay said proportionate rent up to the time of such damage, and shall have the following options: i . to cancel this Lease forthwith in writing; or ii. if said building shall be repaired or reconstructed by LESSOR at its own cost and expense, LESSEE may temporarily suspend its operations, or a part thereof. If LESSEE temporarily suspends its entire operation, rent shall thenceforth cease until the Premises shall be fully restored. If LESSEE continues to operate a portion of its services , LESSEE 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 LESSEE 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, earthquake, 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. 31. ASSIGNMENT OR SUBLETTING. LESSEE shall not assign this Lease 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 LESSOR excepted) to occupy or use the demised Premises or any portion thereof without the written consent of LESSOR first had and obtained. A consent by LESSOR to one assignment, subletting, occupancy, or use by another party shall not be deemed to be a consent to any subsequent assignment, -21- 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 LESSOR shall be void and shall, at the option of LESSOR, terminate this Lease. This Lease shall not, nor shall any interest therein, be assigned as to the inter- est of LESSEE, by operation of law, without the written consent of LESSOR. LESSOR agrees that it will not arbitrarily or capricious- ly withhold its consent required hereunder. 32. BANKRUPTCY AND INSOLVENCY. If LESSEE shall be adjudged bankrupt, either by voluntary or involuntary proceedings, or if LESSEE 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 LESSEE 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 posses- sion 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, LESSOR shall have the option to forthwith terminate this Lease and re- enter the Premises and take possession thereof. In no event shall this Lease be deemed an asset of LESSEE after adjudication in bankruptcy. 33. REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT. LESSOR shall have the right to terminate any lease, permit, license, or agreement ( including that of LESSEE 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 LESSEE herein) for any cause or reason -22- provided by these standards , or by law, or upon the happening of one or more of the following: a. Filing a petition of voluntary or involuntary bank- ruptcy with respect to the lessee, permittee or licensee. b. The making by the lessee, permittee 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 lessee, 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 LESSOR, it will constitute an abandonment of the land or facilities and the lease, permit and/or license shall become null and void. d. The failure of a lessee, 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 lessee, 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 LESSOR. 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 LESSOR with false or misleading information or misrepresenting any material fact on the application or documents , or in statement to or before the LESSOR, or intentional failure to make full dis- closure on a financial statement or other required documents. 34. TERMINATION. % a. This Lease is subject to cancellation by either party upon giving sixty ( 60 ) days ' written notice in advance of such cancellation date. -23- b. Breach by LESSEE of any of the terms , conditions, and agreements contained herein, if not corrected by LESSEE within sixty ( 60 ) days ' written notice by LESSOR to do so, shall be a basis for cancellation of this Lease. 35. VACATION OF PREMISES BY LESSEE. LESSEE covenants and agrees to yield and deliver possession of the terminal building Premises to LESSOR on the date of the termination, cancellation or expiration of this Lease promptly, peaceable, quietly and in as good order and condition as the same now or may be hereafter improved by LESSEE or LESSOR, reasonable use and wear and tear excepted. LESSEE shall be allowed a maximum of five ( 5 ) days following the effective date of the cancellation of this Lease within which to remove all of LESSEE' s personal property, equipment, furniture and fixtures from the terminal building Premises. LESSEE and LESSOR agree, as part of the consideration for this Lease, that all property remaining on the terminal building Premises after the expiration of said five ( 5 ) days will become the sole property of LESSOR, with full title vested in LESSOR, and LESSOR may remove, modify, sell, or destroy the property as it sees fit. 36. 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, addressed as follows: To LESSOR: City of Redding c/o Director of Airports P. O. Box 496071 Redding, CA 96049-6071 -24- To LESSEE: John Castellanos and Jeffery Gedecke dba Land Yachts Limousines Co. 1540 Division Street Redding, CA 96001 37. CEQA. 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 JOHN CASTELLANOS and JEFFERY GEDECKE, dba LAND YACHTS LIMOUSINES CO. , have executed this Lease on the day and year set forth below. CITY OF REDDING DATED: 1992 By: Mayor JOHN CASTELLANOS & JEFFERY GEDECRE, dba LAND YACHTS LIMOUSINES CO. DATED: 1992 By: DATED: 1992 By: 777 ATTEST: CONNIE STROHMAYER, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney -25- I / � d ��r