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HomeMy WebLinkAboutReso. 1987 - 223 - Approving the lease between the city of redding and john ehert dodge inc 411 RESOLUTION NO. YJ-.2.23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LEASE BETWEEN THE CITY OF REDDING AND JOHN EHRET DODGE, INC. , DOING BUSINESS AS B & B RENTALS, INC. , FOR OFFICE SPACE AT THE REDDING MUNICIPAL AIRPORT, AND AUTHORIZING THE MAYOR TO SIGN ALL NECESSARY DOCUMENTATION. II BE IT 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 Ehret Dodge, Inc. , doing business as B & B Rentals, Inc. , a true copy of which is attached hereto and incorporated herein by reference; and 2 . That the Mayor of the City of Redding is hereby authorized and directed to sign said Lease and all necessary documents on behalf of the City of Redding in connection with said Lease, and that 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 21st day of July , 1987 , and was duly adopted at said meeting by the following vote : AYES: COUNCIL MEMBERS: Carter, Fulton, Gard, Johannessen, & Dahl NOES: COUNCIL MEMBERS : None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None Cal". MIKE DAHL, Mayor City of Redding ATTEST: / FORM APPROVED: ETHEL A. NICHOLS, City Clerk RAN ALL A. HAYS, Cit Attorney 1 LEASE• 111 411 THIS LEASE, made and entered into this AUL day of ›Tbat 1987, by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "Lessor, " and JOHN EHRET DODGE, INC. , a California Corporation, with its principal office at 21 West 4th Street, Eureka, California 95501 , and doing business as B & B RENTALS, INC. at 6751 Airport Road, Redding, California 96002 , hereinafter referred to as "Lessee" : WITNESSET H: IT IS MUTUALLY AGREED by and between the parties hereto as follows: 1 . Description of Premises. Lessor hereby leases to Lessee and Lessee hires from Lessor, on the terms and conditions hereinafter set forth, those certain premises (hereinafter called "premises") outlined in yellow on Exhibit "A" attached hereto and incorporated herein by reference. 2 . Term. This Lease shall be on a month-to-month basis, commencing May 1 , 1987. 3 . Rent and Other Charges. a. The rent to be paid by Lessee to Lessor under this Lease Agreement shall be the sum of Two Hundred Fifty Dollars ($250. 00) per month, payable in advance on the first day of each and every month, commencing May 1 , 1987 . Said monthly rent shall • be negotiated each year no later than thirty (30) days prior to the anniversary date. b. All payments called for in this Lease, including the above rent, shall be payable monthly, in advance. Lessor is entitled to collect, and Lessee agrees to pay to Lessor, upon invoice, those rentals , fees and charges set forth herein. Any rentals, fees and charges more than thirty (30) days past due may shall be subject to a service charge of one percent (1%) per month, based on an annual rate of twelve percent (120) . Without prejudice to any other remedy which otherwise might be used for non-payment of rent, 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 expense 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 covenants, the sum or sums so paid by Lessor, including all interest, costs, damages or penalties, may be added, after fifteen (15) days ' written notice by Lessor to Lessee, to any installment or rent thereafter due hereunder, and each and every day part of the same shall be and become additional rent recoverable by Lessor in the same manner and with like remedies as though it were originally a part of the rent as set forth hereinabove. 4. Use. The premises are leased to Lessee for the sole purpose of office space only in connection with its car rental -2- • 4 service (which car rental service is currently being conducted from the counter space on the west side of the Terminal Building under Permit from the City of Redding to John Ehret Dodge , Inc. , doing business as B & B Rentals, Inc. ) . Any other commercial activity that Lessee may wish to carry on at said Airport, in connection with the foregoing or independently, shall first require the written permission of Lessor. The commuter counter area immediately adjacent to said leased premises is not to be used by Lessee in any manner whatsoever, which restriction includes signs . No sublease of any portion of the leased premises is authorized. 5 . Permit. Lessor hereby grants a permit to Lessee to conduct car rental service revenue-producing commercial activities upon said leased premises in accordance with Section 3. 08. 030 of the Redding Municipal Code and Resolution' Nos. 2978 and 4162 . 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 . Airport Facilities. Nothing contained herein shall be construed as entitling Lessee to the exclusive use of any services, facilities, or property rights at said Airport, except the use of the premises described above for office space only. 7 . Waste, Quiet Conduct. Lessee shall not commit or suffer to be committed any waste upon said premises, or any nuisance or other act or thing which may disturb the quiet -3- i , enjoyment of any other occupant or use of Lessor ' s adjoining premises. 8 . 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 obligations incurred by Lessee. 9. Utilities. Lessee shall pay promptly when due all charges for all utilities used by Lessee on or about the demised premises, at a rate of forty cents (404) per square foot. Said rate to be negotiated each year no later than thirty (30) days prior to the anniversary date. 10 . Taxes. Lessee shall pay promptly any taxes assessed against its personal property and any possessory interest tax levied by reason of its occupancy of the subject property. 11 . Rules and Regulations. Lessee agrees to observe and obey all rules and regulations promulgated and enforced by Lessor and any other appropriate authority having jurisdiction over the Redding Municipal Airport during the term of this Lease. Lessor covenants that the rules and regulations so promulgated will apply to and be enforced uniformly by Lessor as to all lessees of said Airport as their interests and activities are related thereto. 12. Acceptance of Premises as is; Surrender at End of Term. By entry hereunder, Lessee accepts the premises as being in good and sanitary order, condition and repair; and agrees that on the last day of said term or sooner termination of this Lease to -4- • • , surrender unto Lessor all and singular said premises with said appurtenances in the same condition, reasonable use and wear thereof and damage by fire, Act of God, or the elements excepted; provided, however, that Lessee shall have the right to remove such personal property placed in and upon the premises by Lessee as may be removed without damage to the leased premises and appurtenances. 13. Compliance with Law. Lessee covenants and agrees to comply with all statutes , laws, ordinances, regulations, orders , judgments, decrees, directions and requirements of Lessor and of all Federal , State, County and City authorities now in force or which may hereafter be in force applicable to said leased premises. The judgment of any Court of competent jurisdiction or the admission of Lessee in any action or proceeding against Lessee, whether Lessor be a party thereto or not, that Lessee has violated any such ordinance or statute in the use of the premises shall be conclusive of the fact as between Lessor and Lessee and shall subject this Lease to immediate termination at the option of Lessor. 14. Security Responsibilities and Fees. Lessee agrees to accept its security responsibilities with regard to access by authorized and unauthorized persons using the leased premises at all times that said Airport Terminal Building is 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. -5- • • Lessee is already paying to Lessor its proportional share of the total cost of Airport security under its current Permit for counter space. Failure to comply with the provisions of this section shall subject this Lease to immediate termination at the option of Lessor. 15 . Hold Harmless; 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 the premises hereunder leased, including claims of Lessee, its officers, agents , employees and customers . Lessee shall indemnify and save harmless Lessor City of Redding, its officers , agents and employees, from any and all liability, loss, cost or obligation on account of or arising out of any such injury, death or loss caused by the negligence or other legal fault of. Lessee or its officers, agents, employees and customers. b. It is specifically understood and agreed as a condition of this Lease that Lessee shall, at its own expense, obtain and keep in full force and effect public liability insurance in the amounts of $300 , 000 for injury to one person, $500, 000 for any one accident, and $50 , 000 property damage limits, which insurance shall be in 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 . -6- 411 110 Such public liability and property damage insurance shall be carried with an insurance company acceptable to Lessor, and a Certificate evidencing such insurance shall be approved by the City Attorney and filed with the City Clerk of Lessor 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 every year. c. It is further understood and agreed as a condition of this Lease that should Lessee hire an employee or employees, it will provide workers ' compensation insurance on its employees, and shall furnish Lessor with a Certificate evidencing such insurance. 16 . Assignment or Subletting. Lessee shall not assign this Lease or any interest therein and shall not sublet said premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other person (the agents and servants of Lessee excepted) to occupy or use said premises or any portion thereof, without the written consent of Lessor first had and obtained; and a consent to one assignment, subletting, , occupation or use by another person shall not be deemed to be a . consent to any subsequent assignment, subletting, occupation br use by another person. Any such assignment or subletting without such consent shall be void and shall, at the option Of Lessor, terminate this Lease. This Lease shall not, nor shall any -7- . . . interest therein, be assignable as to the interest of. Lessee by operation of law without the written consent of Lessor. 17. Inspection. Lessee shall permit Lessor to inspect said premises and any improvements constructed thereon or therein at all reasonable times during the term of this Lease or any extension thereof. 18 . Cancellation. This Lease or any extension thereof may be cancelled by Lessor or Lessee any time during the term of this Lease upon giving thirty (30) days ' advance notice in writing to the other party. Breach by Lessee of any of the terms, conditions and agreements contained in this Lease or any exten- sion thereof shall, at the option of Lessor, be a basis for imme- diate cancellation of this Lease or any extension thereof. 19. 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 reorgani- zation 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 possession and control of any trustee in bankruptcy, or if any receiver should be appointed in any action or proceeding with power to take charge, possession, control or care of said premises, Lessor shall have the option to forthwith terminate this Lease and -8- re-enter the leased premises and take possession thereof. In no event shall this Lease be deemed an asset of Lessee after adjudi- cation in bankruptcy. 20. United States of America Restrictions. (a) It is understood and agreed that this Lease is subject to the covenants , restrictions and reservations contained 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 Agreement executed by the City of Redding on December 1 , 1948, covering Federal Aid Airport Project No. 9-04-062-901. (4) Grant Agreement executed by the City of Redding on May 18 , 1949 , covering Federal Aid Airport Project No. 9-04-062-092. (5) Grant Agreement executed by the City of Redding on July 10 , 1950, covering Federal Air Airport Project No. 9-04- 062-903. (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, Lessee shall likewise be released by Lessor. (c) Lessee, for itself, its successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that in the event facilities are cnstructed, maintained, or otherwise operated on the property -9- • described in this Lease 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, that it shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CRF Part 21 , Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. (d) Lessee, for itself, its successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land: (1) that no person on the grounds of race, color, or national origin shall be excluded from participationin, denied the benefits of, or be other- wise subjected to discrimination in the use of said facilities; (2) 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 (3) that Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21 , Nondiscrimination in Federally Assisted -10- • • Programs of the Department of Transportation, and as said Regulations may be amended. (e) That in the event of breach of any of the above nondis- crimination covenants, Lessor shall have the right to terminate the Lease and to re-enter and repossess said land 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 appli- cable Federal Aviation Administration procedures, and any sanctions under or termination of the Lease shall be withheld pending completion of such procedures. (f) That in the event of breach of any of the above nondis- crimination covenants, Lessor shall have the right to re-enter said land 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. 21 . FAA Requirements. To comply with Federal Aviation Administration requirements, Lessee, for itself, its successors -11- • and assigns , as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land: (1) That in the event facilities are constructed, 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 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 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 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 , 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 nondis- crimination covenants, Lessor shall have the right to terminate this Lease and to re-enter and repossess said land 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 completed, including expiration of appeal rights. (4) That Lessee shall furnish its accommodations and/or services on a fair, equal and not unjustly discrimi- natory basis to all users thereof, and it shall charge fair, reasonable and not unjustly discriminatory prices -12- i • for each unit or service; provided that Lessee 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 21 (4) above shall constitute a material breach thereof, and in the event of non-compliance Lessor shall have the right to terminate this Lease and the estate hereby created without liability therefor, or at the election of Lessor or the United States either or both said Governments shall have the right to judicially enforce provisions. (6) That Lessee agrees that it shall insert the above five provisions 21 (1) through 21 (5) in any lease 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 leased. (7) That Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure 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 obligated 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 -13- 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 leased. 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 leased premises , or in the event of any planned modification or alteration of any present or future building or structure situated on the leased 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 leased hereunder above the mean sea level elevation 502 feet. In the event the aforesaid covenants are breached, Lessor reserves the right to enter upon the land leased 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 leased premises 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 premises hereby leased and cause the abatement of such interference at the expense of Lessee. 22. Discrimination. Notwithstanding any otherprovisions of this Lease, Lessee shall make its services available to the public without unjust discrimination; provided, however, that Lessee shall have the privilege of refusing service to any person -14- . ' . , . or persons for just cause, but not to discriminate by virtue of race , creed or color. Lessee shall furnish said services on a fair, equal and not unjustly discriminatory basis to all persons and users thereof, and will charge fair, reasonable and not unjustly discriminatory prices for such services . 23. Revocation of Lease, Permit, or License. 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 on any land or facility at the Airport (including that of Lessee herein) for any cause or reason provided by these standards, by the lease, 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 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 and/or license shall become null and void. d. The failure of an operator or licensee to pay promptly when due all rents , charges, fees , or other payments in accordance with applicable leases or license . e. The failure of the operator or licensee toyremedy 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. -15- 4 • 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 the Lessor with false or misleading information or misrepresenting any material fact on the application or documents, or in statements to or before the Lessor, or intentional failure to make full disclosure on a financial statement, or other required documents. 24 . 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 760 Parkview Avenue Redding, California 96001 To Lessee : John Ehret Dodge, Inc. 21 West 4th Street Eureka, California 95501 B & B Rentals, Inc. 6751 Airport Road Redding, California 96002 25. City Administration. Whenever Lessee is required to secure approval or consent from Lessor City of Redding, Lessor shall mean the Director of Airports of City. However, at the option of the Director of Airports or the Lessee, and according to proper procedure, any such questions may be referred to the City Council of the City of Redding, whose decision thereon shall be final. -16- . 111 . . . 26. Successors and Assigns. All covenants, stipulations and agreements in this Lease shall extend to and bind the legal representatives, successors and assigns of the respective parties hereto. 27. Invalid Provision. In the event any covenant, condition or provision herein contained is held invalid by any Court of competent jurisdiction, the invalidity of same shall in no way affect any other covenant, condition or provision herein contained, provided that the validity of any such covenant, condition or provision does not materially prejudice either Lessor or Lessee in its respective rights and obligations contained in the valid covenants , conditions and provisions of this Agreement. 28. CEQA. It has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act. IN WITNESS WHEREOF, the parties hereto have executed this Lease in the presence of their respective officers duly authorized in that behalf on the day and year first above written. CITY OF REDDING JOHN EHRET DODGE, INC. , doing business7as B B REN S/ C. By: By: E Z.�-- MIKE DAHL, Mayor ATTEST: FORM APPROVED: ETHEL A. NICHOLS, City Clerk RANDALL A. 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