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HomeMy WebLinkAboutReso. 1988-191 - Approving the permit for commerical activites (passenger air travel and air cargo service) at redding municipal airport 411 410' RESOLUTION NO. PVF/ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE PERMIT FOR COMMERCIAL ACTIVITIES (PASSENGER AIR TRAVEL AND AIR CARGO SERVICE) AT REDDING MUNICIPAL AIRPORT BETWEEN THE CITY OF REDDING AND WESTAIR COMMUTER AIRLINES , INC. , DOING BUSINESS AS UNITED EXPRESS, AND AUTHORIZING THE MAYOR TO SIGN SAME. 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 Permit for Commercial Activities at Redding Municipal Airport between the City of Redding and WestAir Commuter Airlines, Inc. , dba United Express , for passenger air travel and air cargo service, a true copy of which is attached hereto and incorporated herein; and 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Permit and all necessary documentation in connection therewith 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 on the aforesaid documents, when appropriate. 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 17th day of May , 1988 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Buffum, Dahl , Fulton , & Carter NOES : COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Johannessen ABSTAIN: COUNCIL MEMBERS : None SCOTT CARTER, Vice Mayor City of Redding ATTEST: FORM PROVED: 6,4-e'a Jeepeat ‘ .F" ETHEL A. NICHOLS , City Clerk RA ALL A. HAYS, ty Attorney i t I 4 PERMIT FOR COMMERCIAL ACTIVITIES REDDING MUNICIPAL AIRPORT 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, WESTAIR COMMUTER AIRLINES, INC. , a California Corporation, doing business as UNITED EXPRESS, hereinafter referred to as "OPERATOR, " has applied for a new Permit to carry I ' on revenue-producing commercial activities at said Airport under approval from the CITY in accordance with Section 3 . 08 . 030 of the Redding Municipal Code and Resolution Nos. 2978 and 4162 ; and WHEREAS, the City Council has determined that these commercial 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 carryon from the air terminal building at Redding Municipal Airport the hereinafter- described revenue-producing commercial activities for: (1) a period of one (1) year, commencing January 6 , 1988 , I I and terminating January 5 , 1989 ; and (2) thereafter, provided OPERATOR is not in default here- under, from year-to-year on an automatic renewal basis, unless written notice of any change in the terms hereof Aft Imp 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 passenger air travel and air cargo service. b. Any other commercial activity that OPERATOR may wish to carry on at said Airport, in connection with the foregoing or independently, shall first require the { written permission of CITY. I � 2 . FEES; CHARGES; PERFORMANCE BOND. a. OPERATOR will pay to CITY for the Permit, license, and fj privileges herein granted the following monthly fees and charges: I'I i. Commercial aircraft landing fees at the rate of fifty cents (500 per thousand pounds of maximum aircraft landing weight. In connection herewith, it is expressly agreed that OPERATOR will report to the Director of Airports of CITY the total number of aircraft landings and the gross landing weights of aircraft landing during the previous month belonging to OPERATOR. Such report shall be -2- i i. 4Aft IIP given to the Director of Airports of CITY by the fifth day of the month following. ii. The sum of $1 ,658 .00 for its terminal space fee, based on 1730 square feet of area as depicted in Exhibit "A" attached hereto and incorporated herein by reference. iii. The sum of $795 .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" provided 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 required in its operations, including janitorial services behind its counter. iv. The sum of $207 .00 for its proportional share of terminal security costs. b. The payments called for above shall be payable monthly, in advance. 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 -3- �I i. 4111 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 I I 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 periodic basis and submitted for City Council approval. d. During the term of this Permit, OPERATOR will post with the City Clerk of CITY a performance bond in the amount of $5 ,000. 00 in favor of CITY. Failure on the part of OPERATOR to make timely payment of invoices due CITY / will result in a claim being made against said bond. Cancellation of the performance bond for whatever reason shall forthwith terminate this Permit for Commercial Activities. -4- • 411 3. PARKING SPACES. CITY licenses OPERATOR, its employees and invitees, 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, including direct access between the terminal building and { 1. OPERATOR' s aircraft parked upon the adjacent apron, for all ;i purposes contemplated by this Permit. 5. USE OF AIRPORT. I i 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 passenger air travel and air cargo service; and CITY will grant to OPERATOR, without charge, all rights reasonably necessary for such uses. -5- 111 111 6. SPACE IN TERMINAL BUILDING. CITY hereby assigns to OPERATOR for its exclusive use in connection with its passenger air travel and air cargo service 1730 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 passenger air travel and 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. 8. SERVICE TO THE PUBLIC. OPERATOR 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 OPERATOR shall have the -6- 41/ �► 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 imposed upon CITY by the Federal Aviation Administration Security Field Office for violation of security caused by the actions 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 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. -7- I • S i • 12 . RULES AND REGULATIONS. OPERATOR covenants and agrees to comply with all statutes, laws, ordinances, regulations, orders, judgments, decrees, directions, 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. 13 . UNITED STATES OF AMERICA RESTRICTIONS. a. It is understood and agreed that this Permit, insofar as it pertains to the use of the Redding Municipal Airport, 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 (3) Grant Agreements of record executed by the City of Redding in connection with Federal Aid Airport Projects. b. The permittee (OPERATOR) , for itself, its successors •I and assigns, as a part of the consideration hereof, does hereby covenant and agree that in the event facilities are constructed, maintained, or otherwise , operated on the said property described in this Permit for a purpose for which a Department of Transport -8- • mop program or activity is extended, or for another purpose involving the provision of similar services or benefits, the permittee (OPERATOR) 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. Permittee (OPERATOR) , 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 otherwise subjected to discrimination in the use of said facilities; (2) that in the construction of any improvements on, over, or under such lands and the furnishing of services thereon, no person on the Ij 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 permittee (OPERATOR) shall use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21 , Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. -9- • d. That in the event of breach of any of the above nondis- crimination covenants, CITY shall have the right to terminate the Permit and to re-enter and repossess said lands and facilities thereon, and hold the same as if said Permit had never been made or issued; provided, however, that the permittee (OPERATOR) allegedly in breach shall have the right to contest said alleged breach under applicable Federal Aviation Administration procedures, and any sanctions under or termination of the Permit shall be withheld pending completion of such procedures. e. That in the event of breach of any of the above nondis- crimination covenants, CITY 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 CITY 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, OPERATOR shall likewise be released by CITY. -10- 1 14 . FAA REQUIREMENTS. To comply with Federal Aviation Administration requirements, permittee (OPERATOR) , for itself, its successors and assigns, as a part of the consideration hereof, does hereby covenant and agree, as material terms of this Permit: (1) That in the event facilities are constructed, main- tained, or otherwise operated on the property described in this Permit for a 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 maintain and operate such facilities and services in compliance with all other requirements imposed pursuant I 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 land 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 permittee (OPERATOR) shall use the premises in compliance with all other require- ments 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 1 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 nondis- crimination 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 { -11- i procedures of 49 CFR Part 21 are followed and completed, including expiration of appeal rights. (4) That permittee (OPERATOR) shall furnish its accommo- dations 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 non-compliance with paragraph 14 (4) above shall constitute a material breach thereof; and in the event of non-compliance 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 (1) through 14 (5) in any agreement, contract, etc. , by which said permittee (OPERATOR) 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 permittee (OPERATOR) assures that it will under- ; ' take 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 receiving the services or benefits of any program or activity covered by this subpart. Permittee (OPERATOR) assures that it will require that its covered suborganizations 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) That 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 permittee (OPERATOR) and without interference or hindrance. 1i I i -12- , �I • 11, (9) That 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 permittee (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 structure 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 this Permit above the mean sea level elevation of 502 feet. In the event the aforesaid covenants are breached, City 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 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 otherwise constitute a hazard. In the event the aforesaid covenant is breached, CITY reserves the right to enter upon the herein premises and cause the -13- 111 III • 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) . 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. MAINTENANCE AND OPERATION OF AIRPORT. CITY will properly maintain and operate the Airport (including all buildings and facilities) for the safe, :I I; convenient, and proper use thereof by OPERATOR and in accordance with all FAA rules and regulations. CITY will provide adequate light, heat, water, janitor service, and air conditioning for the public spaces. 17. 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 1 -14- I• S . 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. 18 . 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 P premises shall be the sole obligation of OPERATOR; OPERATOR further covenants and agrees to hold CITY harmless therefrom. 19 . TAXES. OPERATOR agrees to pay promptly when due any and all taxes assessed against its personalro ert and P P Y any possessory interest tax levied by reason of its occupancy of the demised premises. 20 . 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, -15- agents, employees, and invitees . 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. b. OPERATOR shall procure and maintain from a company authorized to do business in the State of California, at its sole cost and expense and at all times during the term of this Permit, comprehensive general liabilityinsurance policy for aircraft liability and airport premises liability in an amount of $10 ,000,000 combined single limits. Said policy shall name CITY, its officers, agents, and employees, as additional insured, and shall further 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. A Certificate of Insurance evidencing such coverage and notice requirement shall be approved by the Risk Manager of CITY, and filed with the City Clerk 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, and furnish the City Clerk of CITY with a Certificate evidencing such insurance, approved by the Risk Manager of CITY. Said -16- S ! 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 OPERATOR have no employees, OPERATOR shall provide the City Clerk 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. '� i 21 . SIGNS. i The size and location of signs advertising the activities of OPERATOR shall be subject to the prior written approval and control of CITY. 22. 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, -17- 1 �� s • resulting from such removal. Such trade fixtures, equipment, and other property of OPERATOR shall be removed by OPERATOR from the hereinremises bythe P expiration or earlier termination of this Permit. 23. RIGHT TO ENTER AND MAKE REPAIRS . CITY and its authorized officers, agents, employees, contractors, 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 P premises and facilities at reasonable intervals during regular business hours (or at any time in case of emergency) to determine whether OPERATOR 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; the herein inspect(c) To � P premises and facilities, and perform any and all things with reference thereto which CITY is obligated or authorized to do as set forth Iherein. 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. 1 -18- I, • . • • 24 . DAMAGE OR DESTRUCTION OF PREMISES. In the event the terminal building is damaged by fire or other casualty, CITY covenants and agrees to repair such damage as soon as practicable, using the proceeds of fire insurance policies coveringsubject the premises, or to construct a new terminal, without unreasonable delay. OPERATOR covenants and agrees to continue its operations at the subject Airport by means of such temporary measures as can be mutually agreed upon by CITY 1 and OPERATOR during the period of repair and reconstruction, or new construction; and OPERATOR further agrees to continue to pay all of the established fees and charges due under this Permit. 25 . 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 CITY 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, -19- I. 1 • 411 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. 26. 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 g obligations against g 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 bank- ruptcy, or if any receiver should be appointed in any action or ( proceeding 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. 27. REVOCATION OF LEASE, PERMIT, OR LICENSE. 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 -20- • 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, by the lease, permit, license, or agreement itself, or by law, or upon the happening of one or more of the following: a. Filing a petition of voluntary or involuntary bankruptcy with respect to the operator or license. 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 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 CITY, 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 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 statements to or before the CITY, or intentional failure to make full . disclosure on a financial statement, or other required documents. -21- 411 28. TERMINATION. a. This Permit is subject to cancellation by either party upon giving sixty (60) days ' written notice in advance of such cancellation date. b. Breach by OPERATOR of any of the terms, conditions, and agreements contained herein, if not corrected by OPERATOR within sixty (60) days ' written notice by CITY to do so, shall be a basis for cancellation of this Permit. 29. 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 CITY at 760 Parkview Avenue, Redding, California 96001-3396 ; and to OPERATOR at 5570 Air Terminal Drive, Fresno, California 93727 . 30 . 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 WESTAIR COMMUTER -22- •• AIRLINES, INC. , doing business as UNITED EXPRESS, have executed this Permit for Commercial Activities, effective January 6 , 1988 , on the day and year set forth below. CITY OF REDDING i; DATED: 1988 By: COMMUTER WESTAIR/AIRLINES, I . , DOING BUSINESS • S UNITED '•RESS DATED: zl g 9 , 1988 By: = By: ATTEST: ETHEL A. 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