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HomeMy WebLinkAboutReso. 1990-503 - Approving the lease and permit for commercial activities with Redding Air Service at Redding Municipal Airport � � RESOLUTION N0. 90 -So.� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LEASE AND A PERMIT FOR COMMERCIAL ACTIVITIES BETWEEN THE CITY OF REDDING AND REDDING AIR SERVICE AT REDDING MUNICIPAL AIRPORT , AND AUTHORIZING THE MAYOR TO SIGN BOTH AGREEbSENTS . IT ZS HEREBY RESOLVED by the City Council of the City of Redding as follows : 1 . That the City Council of the City of Redding hereby aoproves the Lease and a Permit for Commercial Activities between the City of Redding and Redding Air Service at Redding Municipal Airport, effective August l , 1990 . A true copy of each 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 and Permit on behalL of the City of Reddinq, 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 16th day of October � 1990 , and was duly adopted at said meeting by the following vote : AYES: COUNCIL MEMBERS : ArneSS , Ddhl , fultOn, htoss & Buffum NOES : COUNCIL MEMBERS : None ABSENT : COUNCIL MEMBERS : None ABSTAIN: COUNCIL MEMBERS : None (� . i/j%/./ <� i 7 -��/( I�ANCY Bi� UM, MayOr City of Redding � ATTEST: FORM PROVED: � ���'� C�72��� C ETHEL A. NICHOLS , City Clerk RA ALL A. HAYS , City Attorney �� Lt � � . , � ` L E A S E This Lease is made and entered into as of the lst day of August, 1990 , by and between the CITY OF RE�DING, a Municipal Corporation and General Law City, hereinafter referred to as "LESSOR, " and REDDING AIR SERVICE, a California Corporation, hereinafter referred to as "LESSEE. " W I T N E S S E T H: WHEREAS , LESSOR owns and maintains Reddinq Municipal Airport (hereinafter called "Airport") located in the County of Shasta, State of California; and WHEREAS , LESSEE has been conducting Fixed Wing and Helicopter Aircraft Operations at said Airport since December 31 , 1962 ; and WHEREAS, LESSEE desires to renew its lease of certain ground and hangar area at said Airport, and has applied to the City Council of LESSOR for a permit to carry on revenue-producinq activities on said area in accordance with Section 3 . 08 . 030 of the Reddinq Municipal Code and City Council Resolution No. 2978; and WPEREAS , LESSOR deems it advantageous to the City and to the operation of said Airport to grant, demise , and lease unto LESSEE the ground and hangar area (hereinafter called "Premises") , toqether with said privileqe� , rights, uses , and interest:a therein, a� hereinafter set forth; NOk, T[IEREFORE, IT ZS AGREED by and between the parties hereto as follows: 1 . TERM. For and in consideration of the terms, covenants, conditions , and aqreements herein set forth to be kept and � � , performed by LESSEE, LESSOR does hereby grant , demise, and lease unto LESSEE , subject to all the terms , covenants, conditions , and agreements hereinafter set forth, those certain Premises described in Exhibit "A" and depicted in Exhibits "B-1" and "B-2" attached hereto and incorporated herein by reference , for a period of five (5) years commencinq Auqust 1 , 1990 , and terminatinq July 31 , 1995 . At the end of said term, LESSEE shall have the right of first refusal as to any lease of said Premises neqotiated by LESSOR with any other party . The right of first• refusal given to LESSEE herein shall not be construed as a waiver of LESSOR' s right to remove LESSEE for breach of any of the terms , covenants , conditions , and agreements contained in this Lease by LESSEE, nor of LESSOR' s right to remove LESSEE from the Premises at the end of the initial 5-year term of this Lease in the event LESSOR determines to leave the Premises vacant, operate the Premises itself, or devote the Premises to a different type of municipal or governmental purpose. 2 , USE OF PREMISES. (a) The Premises demised herein and any improvements subsequently constructed thereon may be used by LESSEE for Fixed wing and Helicopter Aircraft Operations , and for no other purpose. Such Operations may include the following: (1) Operation of LESSEE' s helicopter aircraft charter and rental service; (2) Aircraft flyinq instructions , including that of fliqht and ground personnel and students; (3) Aircraft maintenance; (4) Aircraft sales and service; (5) Sale of aircraft parts and accessories; -2- � � (6) Sale of pilots ' supplies , i .e. , computers , maps , oxygen; (7) Parking, turning, taxiinq, loading, unloadinq, maintaining, servicing, fueling, conditioning , repairing, assembling , fabricatinq, moving, constructinq , housing, washinq, storing, and testing of aircraft and related equipment, mechanisms , devices , appliances , supplies , parts , and accessories of all kinds; (S) Use of mobile ground vehicles and other ground equipment used in LESSEE' s aviation operations ; (9) Receivinq, storing, loading, unloadinq, and delivery of passengers and personal property; (10) Vehicular parking for LESSEE , its employees , quests, and invitees; and (11) Provision of maintenance services to the aircraft of others. (bl The provisions of this paraqraph shall not be construed to authorize LESSEE to conduct a separate business or businesses at the Airport, but shall relate only to LESSEE' s aviation operation , activities, uses , and purposes in connection therewith, or incidental to , or related thereto. (c) LESSEE shall have the riqht of access to and the use of facilities at the Airport designed for coRauon use. 3 . RENTAL; DELINQUENCY. (a) LESSEE shall pay to LESSOR rental in the sum of Six Hundred Forty-three Dollars IS643. 00} p,-r month, payable in advance on the lst day of each and e•!e-;� month durinq the term of this Lease, commencing on the lst day of Auqust, 1990 . (b) Rental payments shall h2 eva'.::c�2d every year, cocmnencing August 1 , 1991 , and be adjusted by the average of the United States Bureau of Labor Statistics National Consumer Price Index for the San Francisco-Oakland-San Jose Area for the -3- � � previous one-year period; PROVZDED, however, that in no event shall the minimum rental be less than 5643 . 00 per month. (c) All payments called for in this Lease, including the above rent and other charges , shall be payable vithin seven (7) days of the billinq date by LESSOR. LESSOR is entitled to collect from LESSEE, and LESSEE agrees to pay to LESSOR, upon invoice , those rentals , fees , and charqes set forth herein. Any rentals , fees , and charges more than seven (7) days past due shall be subject to a service charge of one and one-half percent (1�8) per month, based on an annual rate of eighteen percent (188) . Without prejudice to any other remedy which otherwise miqht be used for non-payment of rent, fees , and charqes , or other breach of this Lease , if LESSOR is required or elects to pay any sum or sums or incurs any obliqations o= expense by reason of a failure, neqlect, 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 omisaion of LESSEE contrary to said terms, conditions , or covenants, the sum or sums so paid by LESSOR, including all interest, coats , damages , or penalties, may be added, after seven (7) days ' written notice by LESSOR to LESSEE, to any installment of rent thereafter due hereunder, and each and every day thereafter 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 pazt of the rental as set Forth hereinabove. 4 . SECURITY RESPONSIBILITIES; FEES . (a) LESSEE agrees to accept its security responsibilities with reqard to access by authorized and unauthorized persons using its facilities at all times that the vehicle gate -4- I � � located adjacent to the hanqar and/or the hanqar door are 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 or its employees , agents , guests , and invitees shall be paid by LESSEE . (b) LESSEE shall pay to LESSOR its proportional share of the total cost of Airport security, in the amount ' of Thirty and 88/100 Dollars (;30 .68) per month, payable in advance , on the lst day of each and every month durinq the term of this Lease , commencing on the lst day of Auqust, 1990 . Said payments shall be evaluated every year, commencing August 1 , 1991 , and be adjusted by the averaqe of the United States Bureau of Labor Statistics National Consumer Price Zndex for the San Francisco-Oakland-San Jose area Foz the previous one-year period; PROVIDED, however, that in no event shall the minimum payment for LESSEE' s share of the Airport security costs be less than f30 . 89 per month. It is also understood and agreed that this amount may also be increased proportionally whenever there is an increase in LESSOR' s contract with the firm providing security services. (c) Failure by LESSEE to comply vith all of the provisions of this paragraph shall, at the option of LESSOR, subject this Lease to immediate termination. 5 . UTILITIES. LESSEE shall be responsible for the prompt payment of any utility service changes applicable to the qzound area leased to LESSEE herein or to any improvements placed thereon; and the fail+ire *.� pay these charges promptly ��rhen due and payable shall expressly constitute a material breach of this Lease. Further- more , if water, sewer, or electric utility lines are installed on the subject property, eithez at the desire of LESSOR or as a -5- � � . requirement of any provision of law enacted either by the State of California or the County of Shasta , such installation shall be at the sole cost and expense of LESSEE. 6 . MAINTENANCE AND REPAIRS . LESSEE shall, at its sole cost and expense, keep and maintain the leased Premises and every part thereof in good and sanitary order, condition , and repair, hereby waiving all riqht to make repairs at the expense of LESSOR as provided in Section 1942 of the Civil Code of the State of California, and all riqht provided for by Section 1941 of said Civil Code. 7 , ALTERATIONS AND ADDITIONS . LESSEE shall not make any alterations to oz erect any additional structures or improvements on the leased ground area without the prior written consent of LESSOR. Any altezations or additions approved by LESSOR shall be constructed at the sole cost and expense of LESSEE , and shall remain the property of LESSOR at the end of the leasehold term. 8 . SZGNS . LESSEE shall be privileged to erect such siqns and advertising media as may be required and place the same upon the property, subject to first aecurinq the written approval of LESSOR' s Director of Airports , who shall determine whether such adveztising media is aesthetically harmonious with said improve- ments and facilities at the Airport . 9 , IINLAWFUL USE. No buildinq, structu�P , or i.mprovement of any kind shall be erected, placed upon, operated, or maintained on the leased area, nor shall any business or opezation be conducted or carried on therein or thereon in violation of any ordinance, law, statute , -6- � � bylav, order , or rule of the governmental agencies havinq juris- diction thereover. 10 . WASTE ; QUIET CONDUCT. LESSEE shall not commit nor suffer to be co�itted any waste upon said area or improvements , nor any nuisance or other act or thing which may disturb the quiet enjoyment of the use of said Airport or surrounding 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 said 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 the Airport as theiz interests and activities are related thereto. 12 . HOLD HARMLESS ; INSURANCE . (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 for personal injury, death, or property damaqe in any way connected with LESSEE' s use of the Premises hereunder leased, including claims of LESSEE, its officers, aqents , employees and cuatomers . LESSEE shall indemnify and save harmless LESSOR, its officers , aqents, and employees , from any and all liability, loss , cost, or obliqation on account of or ariaing out of any such injury, death, or loss caused by the negliqence or other legal fault of LESSEE or its officers, aqents , employees , and customers. (b) It is specifically understood and agreed as a condition of this Lease that LESSEE shall procure and maintain from a , -7- � � . . 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 Lease a comprehensive general liability insurance policy for aircraft liability and airport premises liability in an amount of ;1 ,000 , 000 . 00 combined single limits. Said 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 . A Certificate evidencing such insurance sha11 be approved by the Risk Manager of LESSOR and filed with him, naminq LESSOR, its officers, agents , and employees , as additional insureds , and guazanteeinq at least ten (101 days ' advance notice to LESSOR, in writinq, before any I cancellation or reduction of such insurance coverage. (c) If any buildinqs and structures are erected by liESSEE, after first obtaining LESSOR' s written consent thereto, LESSEE shall also secuze and maintain fire insurance on said buildings and structures as a part of the aviation operation created by this Lease , and insurance coverage shall be to the full insurable value of the structures, buildings and contents as erected and placed upon the leased area. LESSEE further agrees that in the event of any fire or partial or complete destruction of the structures erected by LESSEE, any proceeds of insuzance received by LESSEE shall be utili2ed in the replacement, reconstruction, or repair of the damaqed or destroyed improvements. (d) It is further understood and agreed as a condition of this Lease that LESSEE will provide workers' compensation insurance on its employees , and shall furnish the Risk Manager of LESSOR with a Certificate evidencinq such insurance . To obtain an exemption from this requirement should LESSEE have no employees, LESSOR shall provide the -8- � � 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 complv with the insurance requirements set forth above. 13 . TAXES . LESSEE agrees to pay promptly all taxes and assessments which shall be assessed upon any real or personal property, including possessozy interest taxes, owned by LESSEE or in which LESSEE has a leasehold interest to the extent of LESSEE ' s interest therein, as such interest may appear at the time when said taxes or assessments become due or payable under any levy or assessment by any leqally authorized qovernmental agency. 14 . INSPECTION AND NOTICE. Insofar as the same may be necessary for the protection of LESSOR' s rights , LESSOR or its aqents shall, at any and all times , have the right to go upon and inspect the ground area and improvements hereby leased, and any and 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 keep posted thereon, or on any part thereof, any notices provided in Section 1183 . 1 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. 15 . ASSIGNMENT SUBLETTING, OR OCCUPANCY. LESSEE shall not assiqn this Lease or any interest therein, and shall not sublet the Premises oz any part thereof, or any -9- � � , riqht or privilege appurtenant thereto, nor suffer any other person (the agents and employees of LESSEE excepted) or entity to , occupy or use said Premises or any part 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 , subletting, occupancy , or use by another person or entity. Any such assignment, sublettinq, occupancy, or use by another person or entity without such vritten consent shall be void and shall, at the option of LESSOR, terminate this Lease. LESSOR shall not unreasonably withhold its consent to a sublease or assignment by LESSEE. 16 . SERVICES TO THE PUBLIC. LESSEE shall make its services available to the public without unjust discrimination, and shall refrain from imposing or levying excessive, discriminatory, or otherwise unreasonable charges or fees for any use of its facilities or services; PROVIDED, however, that LESSEE shall have the privilege to refuse service to any person or persons for just cause, but not to discriminate by virtue of race , color, sex, or czeed. 17 . UNITED STATES OF AMERICA RESTRZCTIONS . fa) Zt is understood and aqreed that this Lease is subject to the covenanta, restrictions, and reservations contained in the followinq instruments to which the United States of America is a party, to wit: (1) Quitclaim Deed dated June 5 , 1947 , to the City of Redding. ( 2) Znetrument of Transfer �iated October '7 , 1947 , to the City of Redding. (3) Grant Agreement executed by the City of Reddinq on December 1 , 1948 , covering Federal Aid Airport Project No. 9-04-062-901 . -10- ! • (4 ) Grant Agreement executed by the City of Redding on May 18 , 1949 , coverinq 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. 18 . FAA RE4UIREMENTS . 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 aqree , as a covenant runninq with the land: (1) That in the event facilities are constructed, main- tained, or otherwise operated on the property described in this Lease for a purpose for vhich a Department of Transport program or activity is extended, or for another purpose involving the provision of similar services or benefita , 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 Federallv-Assisted Proqrams 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 qrounds 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; (bl that in the construction o£ any improvements on, over, or under such land and the furniahinq of servicea thereon , no pe:�cn 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 ehall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49 , Code of Federal -11- � , Regulations , Department of Transportation, Subtitle A, Office of the Secretary, Part 21 , Non-discrimination in Federally-Assisted Proqrams 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 riqht to terminate this Lease and to reenter 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 accoaQnodations and/or services on a fair, equal and not unjustly discrimi- natory basis to all users thereof, and it shall charqe fair, reasonable, and not unjustly discriminatory prices 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 paraqraph 19 (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 Govern- ments shall have the right to judicially enforce provisiona . (6) That LESSEE aqrees that it shall insert the above five provisions 16 (1) throuqh 18 (5) in any lease aqreement, contract, etc. , by which said LESSEE qrants a riqht 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 assurea that it will undertake an affirmative action proqram 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 participatinq in any employment activities covered in 14 CFR Part 152 , Subpart E. LESSEE assures that no person shall be excluded on these gzounds from participating in or receivinq the services or benefits of any program or activity covered -12- . � � by this subpart. LESSEE assures that it will require that its covered suborganizations provide assurances to LESSEE that they similarly will undertake affirmative action proqrams, 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 desirea or views 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 landinq area of Redding Municipal Airport and all publicly-owned facilities of said Airport, toqether 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 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-fliqht ahall 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 Requlations in the event future construction of a buildinq is planned for the leased Premiaes , or in the event of any planned modification or alteration of any present or future buildinq or structure situated on the leased Premises . (13) That LESSEE , by accepting this Lease, expressly agrees for itaelf, its success�:rs and assigns, that it will not erect nor permit the erection of any structuze or object, nor permit the qrowth of any tree , on the land leased hereunder above the mean sea-level elevation of 502 feet. In the event the aforesaid covenants are breached, LESSOR reserves the right to enter upon the -13- � � - land leased hezeunder and to remove the offending structure or object and cut the offendinq tree, all of which shall be at the expense of LESSEE . (14) That LESSEE, by accepting this Lease, agrees for itself, its successore and assiqns , that it will not make use of the leased Premises in any manner which might interfere with the landing and taking off of aizcraft 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. (15) That it is understood and aqreed that nothing herein contained shall be construed to qrant or suthorize the qrantinq of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S.C. 1349a) . 19 . REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT. LESSOR shall have the right to terminate any l�ase, permit, license, or agreement ( includinq that of LESSEE herein) coverinq a commercial or noncommercial operation, and to revoke a lease , permit, license , or aqreement 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 , permit, license , or agzeement itself, or by law, or upon the happeninq of one or more of the following: a. Filinq a petition of voluntary or involuntary bank- ruptcy by the lessee , permittee, licensee, or operator. b. The makinq by the lessee , permittee, licensee, or operator of any general assignment for the benefit of creditors. c . The abandonment or discor.��:.:uance of any operation at the Airport by a commercial operator; or the failuze to conduct any service , operation, or activity which the lessee, permittee, licen�ee , or operator has agreed to provide under the terms of its contract with the City of Reddinq. If this condition exists for a period of ten (10) days without the prior written consent of the City of Reddinq, it will constitute an abandonment of -14- . � � the land or facilities, and the lease, permit, license , and/or agreement shall become null and void. d. The failure of a lessee , permittee, licensee , or operator to pay promptly when due all rents, charges , fees , or other payments owed to the City of Redding in accordance with its contract with the City. e. The failuze of the lessee , permittee, licensee, or operator to remedy any default, breach, or violation of the Airport Rules and Requlations by it .or its employees within thirty (30) days aftez notice from the City of Redding. f. Violation of any of these standards, rules , and requlations , or failure to maintain current licenses required for the operations permitted under its lease, permit, license , and/or agreement with the City of Redding. g. Intentionally supplyinq the City of Reddinq with false or misleading information or misrepresenting any material fact on the application or documents , or in statementa to or before the City, oz intentionally failinq to make full disclosure on a financial state- ment, or other required documents . h. The failure of the licensee, permittee, licensee , or operatoz to perform any proviaion or covenant within its contract with the City of Redding. 20 . BREACH. Upon written notice from LESSOR to LESSEE that LESSEE is coimnitting a material breach of any term, covenant, condition, or agreement of this Lease, LESSEE shall forthwith cure such breach. In the event LESSEE has not cured such breach within thirty (30) days followinq the mailing of such written notice to LESSEE by LESSOR, LESSOR shall have the right to enter and take over the demised Premises and exclu3e LESSEE therefrom. Thia right shall be in addition to any and all other riqhts possessed by LESSOR under the laws of the State of California relating to landlord and tenant. -15- � � , zi , wAivsx. No delay or failure by any party to exerciae any riqht, power , or remedy with regard to any breach or default by such partv under this Lease , or to insist upon strict performance of any of the provisions hereof, shall impair any riqht, power , or remedy of such party, and shall not be construed to be a waiver of any breach or default of the same or any other provision of this Lease. The waiver by LESSOR of any breach •oz default of any term, covenant, or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition, or any subsequent breach of the same , or any other term, covenant, or condition herein contained. 22 . DEFAULT. If LESSEE shall be in arrears in the payment of rent for thirty (30) days or more , or if the transfez or assiqnment, voluntarily or involuntarily , of this Lease or any interest therein is attempted, except as herein provided, or if LESSEE violates or neglects or fails to keep, observe , and perform any of the covenants , promises, or conditions herein contained which are on its part to be kept, observed, and performed, LESSOR may, at its election, qive LESSEE written notice of such default. If such default shall continue for sixty (60) days , and LESSEE has failed to commence qood faith efforts to cure such default within said period, LESSOR shall have the riqht at any time thereafter and vhile such neqlect or default continues to enter into or upon said Premisea, or any part thereof, and repossess the same, including all buildinqs and improvements thereon, and expel LESSEE and those claiminq under LESSEE, and remove their effects, without prejudice to any remedies which miqht otherwise be invoked by LESSOR. -16- . � � 23 . EMINENT DOMAIN. In the event the entire Premises shall be appropriated or taken under the power of eminent domain by any public or quasi- public authority, this Lease shall terminate and expire as of the date of such takinq, and LESSEE shall thereupon be released from any liability thereafter accruinq hereunder. Zn the event a portion of the Premises is taken under the pover of eminent domain by any public' or quasi-public authority, such that the improvements thereon cannot, in LESSEE' s opinion, be used for its intended purposes, LESSEE shall have the riqht to terminate this Lease as of the date LESSEE is required to vacate a portion of the Premises , upon the giving of notice in writing of such election within thirty ( 30) days after said Premises have been so appropriated or taken. In the event of such termination, both LESSOR and LESSEE shall thereupon be released from any liability thereafter accruing hereunder. LESSOR aq=ees , immedi- ately after learning of any appropriation or taking, to give LESSEE notice thereof in writinq. If the Premises are taken, or LESSEE elects to terminate upon a partial takinq, LESSOR agrees to offer to lease to LESSEE similar apace on similar terms for a term equal to the remaining term hereunder, if any such land is available for lease at the Airport. If this Lease is terminated in either maaner hereinabove provided, LESSOR shall be entitled to the entire award or compen- sation for the land in such proceedings, but the rent and other charges for the last month of LESSEE' s occupancy shall be prorated and LESSOR agrees to refund to LESSEE any unused portion of said rent or other charges paid in advance. LESSEE' s riqht to receive compensation or dama�es for +_ts improvements , fixtures , personal property, and for the moving or relocation expenses shall not be affected in any manner hereby, and LESSEE reserves the right to bring an action for such compensation or damaqes , -17- � � including loss of business , leasehold interest, and other reasonable damages . 24 . SANRRUPTCY OR INSOLVENCY . If LESSEE shall be adjudged bankrupt, either by voluntary or involuntary proceedings , or should be the subject of any proceedings to stay the enforcement of obliqations against it in the form of reorganization or otherwise under and pursuant to any existing or future laws of the Congress of the Onited States , or if LESSEE shall discontinue business or fail in business , or abandon or vacate said real property, 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 anv receiver should be appointed in any action or proceedinq with power to take charge , possession, control, or care of said property, LESSOR shall have the option to forthwith terminate this Lease, and reenter the property and take possession thereof. In no event shall this Lease be deemed an asset of LESSEE after adjudication in bankruptcy. 25 . SURRENDER. At the termination of this Lease by lapse of time or other- wise , LESSEE shall surrender possession of the Premises to LESSOR; deliver all keys to the Premises and all locks therein to LESSOR; make known to LESSOR the combination of any combination locks in or on the Premises; and return the Premises and all equipment and fixtures of LESSOR therein to LESSOR in broom-clean condition and in as qood a condition as when LESSEE originally took posaession, ordinary wear and tear excepted, failinq which LESSOR may restore the Premises and such equipment and fixtures to such condition and LESSEE shall pay the cost thereof to LESSOR on demand. -18- , � � 26 . ADMZNZSTRATZON BY LESSOR. whenever LESSEE is required to secure the approval or consent of LESSOR under this Lease , "LESSOR" shall mean the Director of Airports of the City of Redding. However, at the option of the Director of Airports of LESSOR, or the LESSEE, any such questions may be referred to the City Council of the City of Redding, whose decision thereon shall be final . 27 . ENTIRE AGREEMENT. This Lease sets forth the entire aqreement between the parties hereto. Modifications or additions to this Lease shall be considered valid only when mutually agreed upon by the parties in rrriting. 28 . INVALZD PROVISIONS . In the event any covenant, condition, or pro'vision herein contained is held invalid by any Court of competent jurisdiction, the invalidity of the same shall in no way affect any other covenant, condition, or provision herein contained, provided that the validity of any such covenant, condition, oz provision does not materially prejudice either LESSOR or LESSEE in their respective rights and obligations contained in the valid covenants , conditions , and provisions of this Lease. Z9 , 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 qiven when made in writing , enclosed in a sealed envelope , and deposited in the United States Post Office with postaqe prepaid, certified mail, addressed as follows: To LESSOR c/o Director of Airports, City Hall, 760 Parkview Avenue , Redding, California 96001-3396 ; and to LESSEE at 6831 Airway Drive , Redding , California 96002 . -19- � � 30 . ATTORNEY ' S FEES. Zn case suit or action is instituted to enforce any of the provisions of this Lease, the prevailing party therein shall be entitled to attorney' s fees and other sums as may be adjudqed reasonable and necessary at trial and on appeal . 31 . BINDING ON SUCCESSORS. The provisions and conditions of this Lease shall be binding upon and inure to the benefit of the successozs and assigns of the parties hereto. 32 . TIME OF ESSENCE. Time is of the essence o,f this Lease and of each and every provision thereof. 33 . CEQA. It has been determined that this matter is categorically exempt fzom the provisions of the California Environmental Quality Act. IN WZTNESS WftEREOF, the parties hereto have executed this Lease in the presence of their respective officers duly authorized in that behalf on the day and year set forth below. CITY OF REDDING Date : , 1990 By: NANCY BUFFUM, Mayor [siqnatures continued on page 21] -20- � � Lease between City of Redding and Redding Air Service , effective August 1 , 1990 . Signatures , continued: REDDING AIR SERVICE � Date : , 1990 By: U/1 . BURT TRAIN By: �/J�� /�' _ �./l�I� MARTHA A. TRAIN ATTEST: ETHEL A. NICHOLS , City Clerk FORI+! APPROVED: RANDALL A. HAYS , City Attorney -21- � � PERMIT FOR COMMERCIAL ACTIVITIES REDDING AIR SERVICE Effective August 1 , 1990 WHEREAS , the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "CZTY, " owns and maintains Reddinq Municipal Airport, hereinafter referred to as "Airport , " situate in Shasta County, California; and WHEREAS , REDDING AIR SERVZCE has entered into a Lease with CITY effective August 1 , 1990 , hereinafter referred to as "Lease , " coverinq certain ground and hangar area at said Airport , hereinafter referred to as "Premises" ; and WHEREAS , said Premises are more particularly described in Exhibit "A" and shown on Exhibit "B" attached hereto' and incorpo- rated herein by reference; and WHEREAS , in conjunction with said Lease, REDDING AIR SERVICE, hereinafter referred to as "OPERATOR, " wishes to carry on revenue-producing commercial activities at said Airport, hereinafter described, under approval from the CITY in accordance with Section 3 . 08 .030 of the Redding Municipal Code and Resolution Nos . 2976 and 4162 ; and WHEREAS , OPERATOR has now applied for a Permit; and WHEREAS , City Councii has determined that these commercial activities are compatible with said Airport, and that the best interests of the public and the CITY will be served by approval of this Permit; NOW, THEREFORE, CITY hereby qrants to OPERATOR a Permit, license , and privilege to conduct and carry on from the Premises at said Airport the hereinafter-described revenue-producing commercial activities for a period of five (5) years, commencing August 1 , 1990 , and terminatinq July 31 , 1995 . . � � This Permit is subject to the following terms and conditions : 1 . COMMERCIAL ACTZVZTIES . (a) The Premises demised herein and any improvements subsequently constructed thereon may be used by LESSEE for Fixed �Wing and Helicopter Aircraft Operations , and for no other purpose. Such Operations may include the following: ( 1) Operation of LESSEE' s helicopter aircraft charter and rental service; (2) Aircraft flying instructions, includinq that of flight and qround personnel and students ; ( 3) Aircraft maintenance; (4) Aircraft sales and service; ( 5) Sale of aircraft parts and accessories; (6) Sale of pilots ' supplies, i.e. , computers , maps , oxygen; (7) Parkinq, turning, taxiinq, loading, unloading, maintaininq , servicing, fueling, conditioning, repairing, assembling, fabricatinq, moving, con- structing, housing , washinq, storing, and testinq of aircraft and related equipment, mechanisms , devices, appliances, supplies, parts, and accessories of all kinds; (S) Use of mobile qround vehicles and other qround equip- ment used in LESSEE' s aviation operations; (9) Receiving, storinq , loading , unloading , and delivery of passenqers and personal property; (10) Vehicular parking for LESSEE , its employees , guests, and invitees; and (11) Provision of maintenance services to the aircraft of others. -�- � � (b) The provisions of this paragraph shall not be construed to authorize LESSEE to conduct a separate business or businesses at the Airport, but shall relate only to LESSEE' s aviation operation , activities , uses, and purposes in connection therewith, or incidental to , or related thereto. (c) 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 LESSOR. 2 . RZGHT OF ACCESS . For all purposes contemplated by this Permit, oPERATOR shall have the right of access to and the use of facilities at the Airpozt designed for common use. 3 . IISE OF AIRPORT. CITY licenses OPERATOR to (a) use, in coc�on with others authozized so to do, all runways, taxiways , and aprons which are or may hereaftez be provided at said 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 services as outlined in paragraph 1 (a) of this Permit; and CITY will grant to OPERATOR, without charge, all riqhts reasonably necessary for such uses . 4 . AIRPORT FACILITIES . Nothing herein contained shall be construed as entitlinq oPERATOR to the exclusive use of any services, facilities , or -3- � � property riqhts at said Airport, except those facilities described in Exhibit "A" attached hereto. 5 . SERVICE TO THE PUBLIC. OPERATOR shall make its services available to the public without unjust discrimination, and shall refrain from imposing or lew ing excessive, discriminatory, or otherwise unreasonable charqes or fees for any use of its services; provided, however, that OPERATOR shall have the privilege of refusinq service to any person or persons for just cause, without diacrimination by virtue of race, color, creed, oz sex. 6. SECURZTY RESPONSIBILITIES. 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 Premises is left open. 7 . WASTE; QUIET CONDUCT. OPERATOR shall not commit or suffer to be committed any waste upon the Premises, nor any nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant or use of CITY ' s adjoining property. 8 . MECHANICS' LZENS . OPERATOR shall keep the Premises and the property on which the Premises are eituated free from an� liens arising out of any work performed, material furnished, or obliqations incurred by OPERATOR. 9 . RULES AND REGULATIONS. OPERATOR covenants and aqrees to comply with all statutes, laws , ordinances, regulations, orders, judqments, decrees, -4- � � 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 . 10 . RESTRZCTION 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 riqht, upon notice, to an equitable reduction in the services and facilities to be afforded hereunder, or the fee due by OPERATOR to CITY under the Lease , from the time of such notice until such restriction has been remedied and normal operations restored. 11 . MAINTENANCE AND OPERATZON OF AIRPORT. CITY will properly maintain and opezate the Airport for the safe , convenient, and proper use thereof by OPERATOR, and in accordance with all FAA rules and regulations . 12 . CITY ADMINISTRATION. Whenever OPERATOR is required to secure the approval or consent from CITY herein, CZTY shall mean the Director of Airports of CZTY. However, at the option of the Director of Airports or the OPERATOR, and according to proper procedure , any such questions may be referred to the City Council of CZTY, whose decision thereon shall be final . 13 . TAXES. OPERATOR agrees to pay promptly when due any and all taxes assessed against its personal property and any possessory interest tax levied by reason of its occupancy of the Premises . -5- , � � 14 , INSURANCE. a . This Permit is granted upon the express condition that CITY, its officers, aqents , and employees , shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with OPERATOR' s activities at said Airport, including claims of OPERATOR, its officers , agents , employees , and invitees . 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 a11 times durinq the term of this Permit, comprehensive general liability insurance policy for aircraft liability and airport Premises liability in an amount of ;1 ,000 ,000 .00 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 CZTY in writing at least ten ( 10) days prior to any cancellation or reduction of such insurance . A Certi- ficate of Insurance evidencing such coverage and notice requirement shall be approved by the Risk Manaqer of CITY, and filed with the Risk Manager of CITY prior to the commencement of this Permit. c . Zt is further understood and agreed as a condition of thia Permit that OPERATOR will provide workers ' compen- sation insurance on its employees , and furnish the Risk Manager of CITY with a Certificate evidencing such -6- • • , insurance , approved by said Risk Manager. Said Certi- ficate 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 ahould 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. 15 . SIGNS. The size and location of signs advertisinq the activities of OPERATOR shall be subject to the prior written approval and control of CZTY. 16 . 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 riqht at any time during the term hereof to remove any or all of its property, subject to OPERATOR' s obligation to repair all damaqe , if any, resultinq from such removal . Such trade fixtures, equipment , and other property of OPERATOR shall be removed by OPERATOR from the , herein Premises by the expiration or earlier termination of this Permit. -�- � � 17 . RIGHT TO ENTER AND MAAE REPAIRS. CITY and its authorized officers , aqents , employees , contractors , subcontractors , and other representatives shall have the right to enter on and into OPERATOR' s Premises and facilities (as set forth in attached Exhibit "A" ) for the following purposes: (a) To inspect said Premises and facilities at reasonable intervals during regular buainess hours (or at any time in case of emergency) to determine whether OPERATOR has complied with and is complyinq with the terms and conditions of this Permit with respect to such Premises and facilities; (b) In the exercise of CITY police power; (c) To inspect the herein Premises and facilities , and perform any and all things with refezence thereto which CITY is obligated or authorized to do as set forth herein. No such entry by or on behalf of CITY within or upon said Premises and facilities shall cause or constitute a termination of this Permit, or be deemed to constitute an interference with the possession thereof by OPERATOR. 18 . ASSIGNMENT OR SUBLETTING. OPERATOR shall not assign this Permit or any interest therein, and shall not sublet the Premises or any part thereof, or any right or. privilege appurtenant thereto, nor suffer any other person (aqents and employees of CITY excepted) to occupy or use the Premises or any portion thereof without the written consent of CITY first had and obtained. A consent by CITY to one assignment, sublettinq, occupancy, or use by another party shall not be deemed to be a consent to any subsequent assignment, sublettinq, 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, -a- � � , at the option of CITY , terminate this Permit. This Permit shall not , nor shall any interest therein , be assigned as to the interest of OPERATOR, by operation of law, without the written consent of CITY. CITY aqrees that it will not arbitrarily or capriciously withhold its consent required hereunder. 19 . BANRRUPTCY AND INSOLVENCY . If OPERATOR shall be adjudged bankrupt, either by voluntary or involuntary proceedinqs , or if OPERATOR shall be the subject of any proceeding to stay the enforcement of obliqations against it in the form of reorganization or otherwise under and pursuant to any existing or future laws of the Congress of the ilnited States , or if OPERATOR shall discontinue business or fail in business, or abandon or vacate said Premises, or make an assign- ment for the benefit of czeditors, 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 charqe, possession, control, or care of said Premises, CZTY ahall 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. 20 . UNITED STATES OF AMERICA RESTRICTIONS . (a) Zt is understood and agreed that this Permit 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. -9- � � ( 3) Grant Agreement executed by the City of Redding on December 1 , 1948 , coverinq 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 Aid 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 , OPERATOR shall likewise be released by CITY . 21 . FAA REQUIREMENTS . To comply with Federal Aviation Administration requirements , Permittee , for itself , its successors and assigns , as a part of the consideration hereof , does hereby covenant and aqree , as a covenant running with the land: (1) That in the event facilities are constructed, main- tained, or otherwise operated on the said 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 proviaion of similar aervices or benefits, Permittee shall maintain and operate such facilities and services in compliance with all other requizements imposed pureuant to Title 49 , Code of Federal Requlations , DOT, Subtitle A, Office of the Secretary, Part 21 , Nondis- crimination in Federally-Assisted Programs of the Department of Transportation--Effectuation of Title VZ -10- � � of the Civil Rights Ac.t of 1964 , and as said Regu- lations may be amended. (2) That (a) no pereon 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 shall use the premises in compliance with all other zequirements 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 Requlations 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 land and the facilities thereon, and hold the same as if said Permit had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed, including expiration of appeal rights . -11- . . � � (4) That Permittee shall fur.nish its acco�odations and/or services on a fair, equal and not unjustly discrimi- natory basis to all users thereof, and it shall charqe fair, reasonable and not unjustly discriminatory prices for each unit or service; provided that Permittee 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 paraqraph 21 (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 said Governments shall have the right to judicially enforce provisions . (6) That Permittee agrees that it shall insert the above five provisions 21 (1) throuqh 21 (5) in any lease agreement, contract , etc. , by which said Pezmittee 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 Permittee 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 participatinq in any employment activities covered in 14 CFR Part 152, Subpart E. Permittee assures that no person shall be excluded on these qrounds from participating in or receiving the -12- � � services or benefits of .any program or activity covered by this subpart. Permittee assures that it will require that its covered suborganizations provide assurances to Permittee that they similarly will undertake affirmative action proqrams, 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 oz improve the landing area of Redding Municipal Airport as it sees fit, regardless of the desires or view of Permittee and without interference or hindrance. (9) That City reserves the right, but shall not be obliqated to Permittee, to maintain and keep in repair the landing area of Reddinq Municipal Airport and all publicly-owned facilities of said Airport, together with the right to direct and control all activities of Permittee in this regard. ( 10) That this Permit shall be subordinate to the provisions and requirements of any existing or future aqreement 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 assiqns , for the use and benefit of the public, a right of flight for the passaqe of aircraft in the airspace above the surface of the premises herein leased. This public riqht of flight shall include the right to cause in said airspace any noise inherent in -13- � � � the operation of any aircraft used for naviqation or flight through said airspace or landinq at, taking off from, or operation on the Reddinq Municipal Airport. (12) That Permittee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Requlations in the event future construction of a building is planned for the leased pzemises , 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 Permittee , by accepting this Permit, expressly aqrees for itself, its successors and assiqns, 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 of 502 feet. In the event the aforesaid covenants are breached, City reserves the riqht to enter upon the land leased hereunder and to remove the offendinq structure or object and cut the offending tree , all of which shall be at the expense of Permittee. (14) That Permittee, by acceptinq this Permit, agrees for itself, its successors and assiqns, that it will not make use of the leased premises in any manner which might interfere with the landinq and taking off of aircraft from the Redding Municipal Airport, or other- wise constitute a hazard. In the event the aforesaid covenant ia breached, City reserves the right to enter -14- • • a upon the premises hereby. leased and cause the abatement of such interference at the expense of Permittee . ( 15) That it is understood and agreed that nothing herein contained shall be construed to grant or authorize the grantinq of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U. S .C. 1349a) . 22 , REVOCATION OF LEASE, PERMIT, LICENSE, OR AGREEMENT . CITY shall have the right to terminate any lease, permit, license, or agreement (includinq that of OPERATOR herein) covering a commercial or noncommercial opezation, and to zevoke a lease , permit , license, or agreement on any land or facility at the Airport ( including that of OPERATOR herein) for any cause or reason provided by these standards , by the lease , permit, license, or aqreement itself, or by law, or upon the happening of one or more of the following: a. Filinq a petition of voluntary or involuntary bank- ruptcy by the lessee , permittee, licensee , or operator. b. The makinq by the lessee, permittee , licensee , or operator of any qeneral assiqnment for the benefit of creditors. c. The abandonment or discontinuance of any operation at the Airport by a commercial operator; or the failure to conduct any service, operation , or activity which the lessee , permittee , licensee . or operator has agreed to provide under the terms of his contract with the City of Reddinq. If this condition exists for a period of ten (10) days without prior written consent of the City of Redding, it will constitute an abandonment of the land or facilities and the lease , permit, license, and/or aqreement shall become null and void. d. The failure of a lessee, permittee , licensee , or opezator to pay promptly when due all rents , charges , -15- � . - � � fees , or other payments .owed to the City of Redding in accordance with his contract with the City. e . The failure of the lessee , permittee , licensee , or operator 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 of Redding. f . Violation of any of these standards and rules and regulations , or failure to maintain current licenses required for the operations permitted under his or her lease, permit, license, and/or agreement with the City of Redding. g. Intentionally supplying the City of Redding with false or misleadinq infozmation or misrepresentinq ' any material fact on the application or documents , or in statements to or before the City, or intentionally failing to make full disclosure on a financial state- ment , or other required documents . h. The failure of the licensee , permittee, licensee, or operator to perform any provision or covenant within his contract with the City of Redding. 23. NOTICE . Any notices or demands that may be qiven by either party hezeunder, includinq notice of default and notice of termination, shall be deemed to have been fully and properly given when made in �+riting, enclosed in a sealed envelope, and deposited in the United States Post Office , certified mail, postaqe prepaid, addressed as follows : To CITY c/o Director of Airports , 760 Parkview Avenue , Redding , California 96001-3396 ; and to OPERATOR at 6631 Airway Drive , Redding, California 96002 . 24 . CEQA. It has been determined that this matter is categorically exempt from the provisions of the California Environmental 4uality Act. -16- � � . � � � _ . ' I � 25 . ENTIRE AGREEMENT. This Permit sets forth the entire agreement between the parties hereto. Modifications or additions to this Permit shall be considered valid only when mutually agreed upon by the parties in writing . 26 . SUCCESSORS AND ASSIGNS . All covenants , stipulations, and aqreements in this Permit shall extend to and bind the legal representatives, successors, and assigns of the respective parties hereto. IN WITNESS WHEREOF , the parties hereto have executed this Permit on the day and year set forth below, in the presence of their respective officers duly authorized in that behalf. CITY OF REDDING DATED: , 1990 BY � NANCY BUFFUM, Mayor REDDING AIR SERVZCE DATED: , 1990 BY� S�lG C. .. ���B�URT .T�Rf�.IN /� ///�{A Y/ // I.C� � t7`��L By' ��r MARTHA A. TRAIN ATTEST: FORM APPROVED: ETHEL A. NZCHOLS , City Clerk RANDALL A. HAYS , City Attorney -17-