HomeMy WebLinkAboutReso. 1986 - 128 - Approving the lease agreement between the city of redding and mercy hospital of redding inc 410 410
RESOLUTION NO. ge.-42 8
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE LEASE AGREEMENT BETWEEN THE CITY i3F REDDING
AND MERCY HOSPITAL OF REDDING, INC. , DBA MERCY MEDICAL
CENTER, AT BENTON AIRPARK, AND AUTHORIZING THE MAYOR TO
SIGN.
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 attached Lease Agreement between the City of Redding
and Mercy Hospital of Redding, Inc. , doing business as Mercy
Medical Center;
2. That the Mayor of the City of Redding is hereby
authorized and directed to sign all necessary documents on behalf
of the City of Redding in connection with said Lease Agreement,
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; and
3. That a true copy oftheLease Agreement referred to
a e
herein is attached hereto and made a part hereof.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
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the City of Redding on the 2nd day of June , 1986, and
was duly adopted at said meeting by the following vote
AYES: COUNCIL MEMBERS: Carter, Dahl , Gard, Johannessen, & Fulton
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
Le:76(-64--
LEE D. FULTON, M.D. , Mayor
City of Redding
ATTEST:
ETHEL A. NICHOLS, City Clerk
FORM APPROVED:
RAN ALL A. HAYS, City Attorney
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LEASE
THIS LEASE AGREEMENT, made and entered into this 1st day of
April , 1986 , by and between the CITY OF REDDING, a Municipal
Corporation and General Law City of the State of California,
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hereinafter referred to as "LESSOR, " and MERCY HOSPITAL OF
REDDING, INC. , doing business as MERCY MEDICALCENTER, a
California Corporation, hereinafter referred to as "LESSEE" :
WITNESSETH:
WHEREAS, LESSOR owns - and maintains Benton Airpark, an
aircraft facility located in the City of Redding, County of •
Shasta, State of California; and
WHEREAS, LESSEE desires to lease certain hangar facilities
Airport, and has applied to the Council of LESSOR
at said i p , pp City
for a permit to operate an aircraft hangar operation for
commercial air ambulance activities at. said Airport; and.
WHEREAS, the City Council has determined that (1) the
proposed aircraft hangar activity is compatible with the Master
Plan of the Airport; and (2) that the best interests of the
public and of LESSOR will be served by approval of the appli-
cation for a permit to operate an aircraft hangar operation for
commercial air ambulance activities; and
WHEREAS, LESSEE has indicated a willingness and ability to
properly keep, - maintain and improve said hangar area in
accordance with standards established by LESSOR; and
WHEREAS, LESSEE desires to obtain and avail itself of the
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privileges, rights, uses and interest therein and herein; and
WHEREAS, LESSOR deems it advantageous to itself and to the
operation of said Airport to demise and lease unto LESSEE said
hangar area, together with said privileges, rights, uses and
interest therein, as hereinafter set forth;
NOW, THEREFORE, IT IS AGREED as follows:
1 . Term. LESSOR, for and in consideration of the
covenants, conditions and agreements herein set forth to be kept
and performed by LESSEE, does hereby grant, demise and lease unto
LESSEE, subject to all of the conditions, covenants, terms and
agreements hereinafter set forth, those certain premises known as
Hangars E-2 and E-3 in the Benton Airpark for a term of five (5)
years, commencing April 1 , 1986 , and terminating March 31 , 1991 .
At the end of said term, LESSEE shall have the right of.
first refusal as to any lease of such premises negotiated by
LESSOR with any other party. LESSEE shall also have the right of
first refusal as to any sale of said premises in the event LESSOR
elects to sell same. These rights of first refusal given to
LESSEE herein, however, shall not be construed as a waiver of
LESSOR' S rights to remove LESSEE for breach of any term or
condition of this Lease by LESSEE,
2. Rental. LESSEE shall pay to LESSOR hangar building
rental for Hangars E-2 , E-3 , and exclusive apron area (Exhibit A)
in accordance with the following provisions :
a. For the E-2 hangar, which contains approximately2 2
fl 50
square feet , the yearly fee will be Four Thousand Seven
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Hundred Sixteen Dollars ($4 , 716 . 00) . Said annual rent
shall be payable in twelve (12) monthly installments of
Three Hundred Ninety-three Dollars ($393. 00) each
payable in advance to LESSOR on the first day of each
and every month, commencing April 1 , 1986; and in no
event later than the 10th day of each and every month.
In addition, there will be a fee of Seventy-five
Dollars ($75. 00) per month for the privilege of doing
major aircraft maintenance on the leased premises, to
be paid to LESSOR as set forth above.
b. For the E-3 hangar, which contains approximately 2, 700
square feet, the yearly fee will be Five Thousand Seven
Hundred Sixty Dollars ($5, 760 . 00) . Said annual rent
shall be payable in twelve (12) monthly installments of
Four Hundred Eighty Dollars ($480 . 00) each payable in
advance to LESSOR on the first day of each and every
month, commencing April 1 , 1986; and in nolevent later
than the 10th day of each and every month. In
addition, there will be a fee of Seventy-five Dollars
($75. 00) per month for the privilege of 'doing major
aircraft maintenance on the leased premises, to he paid
to LESSOR as set forth above.
c. LESSOR is entitled to collect, and LESSEE agrees to pay
to LESSOR, upon invoice , said rentals, fees and charges.
set forth above. Any said rentals, fees and charges
more than thirty (30) days past due may be subject to a
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service charge of one percent (1%) per month based on
an annual rate of twelve percent (12%) .
d. LESSEE shall provide to LESSOR a performance bond in
the amount of $4 , 000. 00.
Without
prejudice to any other remedy which otherwise mi ht
be used for non-payment of rent, fees and charges or otherg
of this agreement, if LESSOR is required or elects breach
or sums, to pay any sum
or incurs any obligations or expense b
failure, neglect or refusal of LESSEE to perform lY reason of a
any one or more
of the terms, conditions or covenants of this agrelement or as
• result of the
any act or omission of LESSEE contrary to said terms,
conditions or covenants,
the sum or sums so paid or the expense
so incurred by LESSOR,
including all interest, costs, damages and
penalties, may be added,
after fifteen (15) days ' notice by
LESSOR to LESSEE, to any installment of rent tlh
hereunder and each and everyereafter due
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
rxginally a part of the rent as
set forth hereinabove.
3 . Use of Premises.
a. The ground area and improvements thereon shall be used
by LESSEE for the storage of air ambulance
aircraft
owned or leased by LESSEE, and the repair and
maintenance thereof, used specifically in its air
ambulance service. Maintenance performed on any other
aircraft in Hangars E-2 or E-3 will automatically
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cancel this Lease on the hangar in which said
maintenance is performed.
b. LESSEE expressly does not have the right to sell
gasoline or oil as part of its activities. Any right
of LESSEE to purchase gasoline for its own use from a
source other than LESSOR shall first be negotiated with
LESSOR.
4. Maintenance and Repairs. LESSEE shall, at its sole
cost and expense, keep and maintain said internal and external
hangar areas, and the improvements and appurtenance and every
part thereof, in good and sanitary order, condition and repair,
hereby waiving all right to make repairs at the expense of LESSOR
as provided in Section 1942 of the Civil Code of the State of
California, and all rights provided for by Section 1941 of said
Civil Code. Such maintenance shall expressly include a regular
and consistent program of repainting and prompt repair of any
damaged portions of the internal or external building areas.
fl aro .a
LESSOR assumes no liability in case of electrical power failure.
5. Alterations and Additions. LESSEE shall not make any
alterations to or erect any additional structures or improvements
on the leased areas without prior written permission of LESSOR.
Any alterations or additions approved by LESSOR shall be
constructed at the sole expense of LESSEE.
6. Signs. LESSEE shall be privileged to erect such signs
and advertising media and place the same upon the improvements is as
may be required, subject to first securing the approval of the
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Director of Airports of LESSOR. The Director of Airports P s shall
determine
whether . such advertising media is aesthetically
harmonious with the said improvements and facilities
Airport. at the
7. Unlawful Use. No building, structure or improvement
any kind shall be erected, placed of
upon, operated or maintained o
the leased n
areas, nor shall
any business or operation be
conducted or carried on therein or thereon in violation
ordinance, law, statute, bylaw, order or rule of the of any
governmental
agencies having jurisdiction thereover.
8. Waste, Quiet Conduct.
LESSEE shall not
suffer to be committed commit, or
, any waste upon said areas or improve-
ments, or any nuisance or other act or
the quietthing which may disturb
enjoyment of the use . of said Airport Ir surroundin
property, g
9. Trade . Fixtures.
Any trade fixtures, equipment and
otherrc� erty
P P brought, installed or placed by LESSEE in or about
the leased premises shall be and remain the property
except as � opeity of LESSEE
P otherwise provided herein, and LESSEE shall have the
right at any time during the term hereof to remove anyor
its property, all of
subject to LESSEE' S obligation to repairall
damage,
g if any, resulting from such removal. Such
fixtures trade
equipment and other property of LESSEE shall be
by LESSEE from- the leased removed
premises upon the expiration or earlier
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termination of this Lease.
10. Insurance.
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a. This Lease is granted upon the express condition that
LESSOR, its officers, agents and employees , shall be
free from any and all liability and claims for damages
from personal injury, death or property damage in any
way connected with LESSEE's activities at said Airport,
including claims of LESSEE, its officers, agents or
employees. LESSEE shall indemnify and save harmless
LESSOR, 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 or employees .
b. LESSEE shall procure and maintain at all times during
the term of this Lease, at its sole cost and expense ,
public liability insurance in the sum of $100 ,000 . 00
for each person and $500 , 000 . 00 for two or more
persons, and property damage insurance in the sum of
not less than $1, 000, 000 . 00 . Evidence of such
insurance shall be filed with the City Clerk of LESSOR
and shall name LESSOR, its officers, agents and
employees , as additional insureds; provided, however,
that LESSEE shall not be liable for any damages
occasioned by the sole negligence of LESSOR, its
officers , agents or employees . Such insurance shall
further contain a provision which obligates the
insurance carrier to notify LESSOR in writing at least
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ten (10) days prior to any cancellation or reduction in
coverage of such insurance.
c. LESSEE shall also secure and maintain fire insurance on
the buildings, structures and contents as a part of the
aviation operation created by this Lease agreement, and
insurance coverage shall be to the full insurable value
of the structures, buildings and contents as erected
and placed upon the leased areas. LESSEE further
agrees that in the event of any fire or partial or
complete destruction of the buildings, sltructures and
contents, any proceeds of insurance received by LESSEE
shall be utilized in the replacement, reconstruction or
repair of the damaged or destroyed improvements.
11 . Possessory Interest Taxes. LESSEE shall pay any and
all possessory interest taxes levied against. LESSEE by the County
Assessor of the County of Shasta, State of California, arising
out of its use of the demised premises . In addition thereto,
LESSEE shall pay any and all charges incurred for telephone
service and any and all other utilities subscribed Ito by LESSEE
which are not expressly leased in the paragraph entitled
"Maintenance and Operation of Airport" as set forth (hereafter to
be provided and paid for by LESSOR.
12. Inspection and Notice . Insofar as- the same may be
necessary for the protection of LESSOR''s rights , LESSOR or its
agents shall at any and all times have the right to go upon and
inspect the areas and improvements hereby leased and any and
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every structure or improvement erected or constructed or in the
course of being erected or constructed, repaired, added to,
rebuilt or restored thereon, and also to serve or to post and to
keep posted thereon, or on any part thereof, any notices provided
in Section 1183 . 1 of the Code of Civil Procedure ofthe State
of
California, or any other section of the code of Civil Procedure
of the State of California, or any other notice or notices that
may be at any time required or permitted by law.
13. Assignment or Subletting. LESSEE shall not assign this
Lease or any interest therein and shall not sublet the said
premises or any part thereof, or any right or privilege pertinent
thereto, or suffer any other person (the officers, agents and
employees of LESSEE excepted) to occupy or use the said premises
or any portion thereof without the written consent of LESSOR
first had and obtained; and a consent to one assignment,
subletting, occupancy or use by another party shall riot be deemed
to be a consent to any subsequent assignment, subletting,
occupancy or use by another party. Any such assignment,
subletting or occupancy without such consent 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
interest of LESSEE by operation of law without the written
consent of LESSOR.
14. Bankruptcy or Insolvency. If LESSEE shall be adjudged
bankrupt, either by voluntary or involuntary proceedings, or if
LESSEE should be the subject of any proceedings to stay the
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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 leased premises or make an assignment for the benefit of
creditors, or if said real property should come into possession
and control of any trustee in bankruptcy, or if an
y receiver
should be appointed in any action or proceeding with power to
take charge, possession, control or care of said leased premises,
LESSOR shall have the option to forthwith terminate this Lease
and to re-enter the leased premises and take possession thereof.
In no event shall this Lease be deemed an asset of LESSEE after
adjudication in bankruptcy.
15. Utilities. LESSEE shall be responsible for the prompt
p
payment of any utility service charges applicable to the area
leased to it by the provisions of this Lease, and the failure to
pay these charges promptly shall expressly constitute a material_
breach of this Lease. A City of Redding electric meter will be
installed by LESSEE for the leased premises:
16. Bindina on Heirs . The provisions and conditions of
this Lease shall be binding upon and inure to the benefit of the
heirs, assigns and successors in interest of the parties hereto.
17. Maintenance and Operation of Airport. LESSOR will
properly maintain and operate the Airport for the safe,
convenient and proper use thereof by LESSEE and in accordance
with all Federal Aviation Administration rules and regulations.
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18. 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 or hereafter
applicable to the leased premises and facilities, the commercial
activities conducted therein or thereon, or to any adjoining
public ways.
19. Discrimination. LESSEE, in the operation and use of
Benton Airpark or of its facilities thereon, will not, on the
grounds of race, color, sex or national origin, discriminate or
permit discrimination against any person or group of persons in
any manner prohibited by the United States of America or the
State of California.
20. 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
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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 licenses.
e. The failure of the operator 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 andj 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.
IN WITNESS WHEREOF, the parties hereto have executed this
Lease agreement as of the day and year first above written.
CITY OF REDDING MERCY HOSPITAL OF RELnDING, INC.
dba MERCY MEDICAL CENTER
By:
LEE D. FULTON, M.D. , Mayor By:
By: —.
ATTEST:
ETHEL A. NICHOLS , City Clerk
FORM APPROVED:
RANDALL A. HAYS, City Attorney
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EXHIBIT "A"
MERCY MEDICAL CENTER LEASE AT BENTON AIRPARK
(CORPORATE HANGARS AND APRON)
Commencing at the most northerly centerline monument of Airpark
Drive, as shown on that certain map recorded in Book 25 of Parcel
Maps , at page 2 , Shasta County Records; thence S. 281°04 ' 27" W. ,
466 . 22 feet to the southwest corner of the "Corporate Hangar, "
the true point of beginning; thence running the following
bearings and distances , N. 06°47 ' 54" W. , 112 feet; thence
S. 83°12 ' 06" W. , 112 feet; thence S. 06°47 ' 54" E. , 112 feet;
thence N. 83°12 ' 06" E. , 112 feet to the point of beginning,
containing 12 ,544 square feet.
SKETCH ATTACHED
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