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Home My WebLink About _ 9.2(e)--Receive Update on Benton Field and Approve FBO Lease Agreement � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: December 19, 2023 FROM: Steve Bade, Assistant City ITEIVI NO. 9.2(e) Manager ***APPROVED BY*** n � t�� ; s' �r ]�,`l3I�C�?�§ rS' �P�it�,C�i �� 1��'��,{'2{�?� sbade@cityofredding.org btippin@cityofredding.org SUBJECT: 9.2(e)--Report on Benton Field and Approve Lease and Operating Permit for Fixed Base O erator at Benton Field(085) Recommendation Authorize and approve the following: (1) Accept the oral report on Benton Field; (2) Approve the Benton Field Fixed Base Operator Lease Agreement and Commercial Operating Permit (Agreement)with an effective date of January l, 2024; (3) Authorize the Mayor to execute the Agreement; and (4) Find that the action is categorically exempt from review under the California Environmental Quality Act Guidelines,pursuant to Section 15301 —Exis�ing Facilities. Fiscal Impact It is projected �hat Benton Field Fixed Base Operatar Lease Agreement and Commercial Operating Permit's (Agreement) rental payments would generate approximately $1.75 million over the full 20-year term with a three percent annual increase (an average of$87,500 per year), assuming no amendments, the rental abatement, and Lessee exercises both term extension options. Additionally, Lessee will pay rates and fees established by City Council (Council) for transient aircraft tie-down usage and fuel sales. Alte�native Action Council may choose not to approve this Zease and provide alternative direction ta staff. Backg�ound/AnaZysis The City of Redding (City} is the owner, operator and airport sponsor for Benton Fie1d, a general aviation (GA) airport and is bound by the sponsar obligations as a result of accepting federal assistance through programs such as the Airport Improvement Program (AIP) from the Federal Aviation Administration (FAA). Benton Field holds unique value to the City due to its central location near downtown Redding and historical significance as a 100+ year old public aviation Report to Redding City Council December 14,2023 Re: 9.2(e)--Receive Update on Benton Field and Approve FBO Lease Agreement Page 2 facility. The FAA Airport Data and Information Program (ADIP) reported 78 based aircraft and 40,000 annual operations at Benton Field as of 2022. Airport tenants and transient aircraft access services at GA airports such as fuel, food, maintenance, repairs, navigation equipment, flight �raining, and other services and supplies through the Fixed Base Operator (FBO). After the sudden departure of the previous FBO operator at Benton Fie1d, the airport has been without services for almost one year. Not only does this constitute a loss of revenue for the Airports Division, users of Benton Field have been unable to access such basic services as fueling and certified repairs. In September 2023, the Airports Division released a Request for Proposals (RFP) including two open-house site visits which did not attract any qualified proposals. As a result, the Airports Division negotiated directly with a number of qualified prospective FBO operators who had expressed interest, but did not participate in the RFP process. The Airports Division conducted interviews with these prospective operators in October with a panel that comprised of airport stakeholders. Based on proposals solicited through direct negotiations and interviews conducted, the Airports Division opted to move forward with Cardan Aircraft Services, currently the operator of the FBO at Red Bluff Municipal Airport with a favorable reputation among Benton Field tenants for timeliness, quality of work, and customer service. Pursuant to the Agreement, the initial term is 10 years and provides the Lessee two optional five- year term extensions. In addition to base rental payments, the FBO operator will be responsible for collecting transient tie-down fees, paying fuel flowage, and may sublease other business activities such as flight training, restaurant space, and hangar space in operation of the FBO. The Agreement, as written, offers a rental abatement period for two years, to provide start-up relief, in exchange for the Lessee accepting an obligation to conduct certain tenant improvements to the FBO facility. Other provisions within the Agreement include the Lessee's responsibilities for use of Benton Field, utilities, insurance, liability and maintenance obligations — all to provide the public and tenants a well-operated general aviation airport. Envi�onmental Review Staff has reviewed the action and de�ermined that it is categorically exempt from review under the California Environmental Quality Act Guidelines, pursuant to Section 15301 — Existing Facilities. Class 1 exemptions include the permitting, leasing, and operation of public or private structures, facilities, mechanical equipment, or topographical features that involve negligible or no expansion of existing or former use. The action will not result in expansion of use, as the new FBO will replace an FBO operator that previously provided services at the facility. The lease area is located within a built environment, a general aviation airport, and the action has no potential to have a significant effect on the environment, Council PrioNity/City Manage� Goals • Budget and Financial Management — "Achieve balanced and stable 10-year Financial Plans for all funds." • Economic Development — "Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community." Attachments Report to Redding City Council December 14,2023 Re: 9.2(e)--Receive Update on Benton Field and Approve FBO Lease Agreement Page 3 NOE Lease & Operating Permit Benton Field Lease Agreement and Commercial Operating Permit Nc►TICE oF E�EMPT�oN T(�: CI Office of Planning and Research FRo1v�: City of Redding 1400 Tenth Street3 Raom 121 Public Warks Department Sacramento, CA 95814 777 Cypress Avenue l;.edding;,CA 96001 � Shasta County Clerk County of Shasta P.C?. Box 99Q88(}; 1643 Market Street 12edding,CA 96099-Q880 Project Title; Lease and Operatin�Permit for Bentan Field F`roject LQcation—Spec�fic: 2600 Goid Street Praject Location—City: Reddin� Project Locatian—County. Shasta I}escrip#�on of Praject: The City of Redding witl execute a lease w�tl� Cardan Aircraft Services to provide #ixed base c�perator(FB��services at Benton Field. The FBtJ wi11_provide airport tenants and transient aircraft with services such as fuel,food,maintenance,repairs,trainin� and other associated needs. The initial term of the a�reement is for 10 vears and the Lessee will have two s�ptional five-year term extensions. Narne of Public Agency Approving Project. City of Redda'n� Name of Person ar Agency Carrying Qut Pro;�ect;Jim Wadlei�h,Airports Mana�;er Exempt Status; (check one) ❑ Ministerial [Section 21080(b}(1); 15268] ❑ Declared Emergency [Section 2l�$0(b}(3); 15269{a)] ❑ Emergency Project[S�ction 21080{b)(4); 15269(b)] ❑ Statutory Exemptions. State code nurnber: ❑ Common Sense Exemption(This project do�s not fall within an exempt class,but it can be seen with certainty that there is no pcsssibility that the activity may have a signrficant effect on the environment(14 C�R 15601{b][3]). 0 Categorical Exemption: State type and,section nutnber: Sec, 15301,Existin�Facilities � No exceptions apply that would bar the use of a categorical exemption(PRD 21084 and l�-CCR 15300,2). Reasons why praject is exem�t: Class 1 exemptions include the permittin� leasin and operatian of�ublic or private structures, facili�ies, mechanical eauiprnent ar tcrpo�raphical feat�res that involve ne��ible or no expansion of excsting or foriner use, The action will nc�t result in ex�ansion of use as the new FBO will replace an FBt� t1�at previousi� pravided services at the facility. Ti1e lease area is located withan a built environtnent a genera� aviatian airport and the action has no potential to have a si�nificant e�fect an the environment, Lead Agen�y Cantact Person. Amber Kellev Telephane: 530.225.4046 If Filetl by Applicant. 1. Attach certified document of exemption�nding. 2. Has a notice of exemption been fi�ed by the public agency approving the project?a Yes o No Signature: �� Date: *��'..�,�t�c�� Titte: Environmental Compliance Ma er �Signed by Lead Agency Date received f�r filing at QPR; ❑ Signed by App�icant BENTON FIELD (085) FIXED BASE OPERATOR LEASE AGREEMENT AND COMMERCIAL OPERATING PERMIT C- This lease agreement(the"Agreement") is entered into by the City of Redding(the "Lessor") and Cardan Aviation Services (the "Lessee"). 1. LEASED PREMISES. In consideration of the Lessee's prompt satisfaction of the promises and covenants set forth herein, Lessor hereby leases the premises described and depicted on Exhibits A and B, attached and incorporated herein, including ground area, offices, hangar, and fuel tanks. 2. TERM. The term of the Agreement is divided into the initial term and two additional opportunities to extend the term of the Agreement. a. The initial term of the Agreement is a period of ten (10) years and shall begin on the effective date of the Agreement and end one the same calendar date ten (10) years thereafter. b. Lessee shall have the option to extend the Agreement for two (2) additional five- year periods subject to Lessee's good standing and the mutual consent of the Lessor. The Lessor may not unreasonably withhold its mutual consent to extending the term of the Agreement. To avoid waiver of the option to extend to extend the term of the Agreement the Lessee must submit its intent to exercise these options in writing ninety (90) days prior to the expiration date of either the initial term or the first option. 3. USE OF AIRPORT. a. During the term of the Agreement, the Lessee and any sub-tenants of the Lessee shall have free use of, in common with others at the Airport, all runways,taxiways, public ramps, and public parking areas available at the Airport, and the right of ingress to and egress from the above described Premises, which right shall extend to Lessee's employees, guests, invitees, tenants, and patrons. b. If, during the term of this Agreement, the use of the Airport by the Lessee is temporarily suspended,restricted,or otherwise interfered with for a period of thirty (30) days or more for reasons beyond the practical control of the Lessor, in such manner so as to substantially affect the use of the Leased Premises or operation of aircraft by the Lessee or its tenants, all fees during such period shall abate and the term of the Agreement shall, at the election of the Lessee, be extended by the City for an equivalent period of time. c. Lessee shall apply for,and maintain in good standing for the duration of lease term, a valid commercial operating permit to carry on revenue-producing activities on said area in accordance with City of Redding — Code of Ordinances Section 3.08.030. d. Lessee shall address Storm Water Prevention Pollution Plan best management practice requirements pursuant to regulations set out by the State Water Resource Control Board. e. The premises demised herein and any improvements subsequently constructed thereon shall be used by Lessee for the conduct of the following commercial activities and no others: i. Aircraft Charter Service ii. Aircraft Rental Service iii. Aircraft Flying Instruction iv. Aircraft Sales and Service v. Sale of Aircraft Parts and Accessories vi. Sale of Pilot's Supplies (e.g. computers, maps, oxygen, etc.) vii. Aircraft Maintenance and Repair(including Avionics) viii. Purchase and Sale of Aviation Gasoline and Jet Fuel ix. Sale of Food and Beverages (alcoholic beverages are limited to beer and wine only). f. The provisions of the foregoing 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. g. Lessee shall not engage in the sale of alcoholic beverages at the Premises or Airport without the prior written consent of the Airports Manager. 4. RENTAL PAYMENTS. In consideration of the rights and privileges herein granted, Lessee shall pay to the Lessor the following rentals and fees: a. GROUND RENT. For all premises inclusive of ground area, facilities,hangars, and fueling areas, sixty-four thousand fifty-seven dollars and ninety-two cents ($64,057.92) per year. Said annual rental shall be payable in twelve (12) monthly installments of five thousand three hundred and thirty-eight dollars and sixteen cents ($5,338.16)payable to the Lessor in advance. i. ABATEMENT. The Lessor will provide a one-time period of initial relief from ground rent payments by accepting a reduced rent of two thousand dollars ($2,000.00)per month for twenty-four(24) consecutive monthly billing periods in consideration of tenant improvements listed in Exhibit C, attached and incorporated herein, and the initial start-up of business on the leased premises. The Lessee has a duty to construct all improvements listed in Exhibit C. The Airports Manager will have the authority to grant an extension of abatement of up to three (3) months at their discretion in order to accommodate construction or material delays if they so choose and on the condition of good faith effort by the Lessee to fulfill their duty to construct the improvements in Exhibit C. C- : Benton Field Fixed Base Operator Lease & Operating Permit b. FINANCIAL SECURITY. The Lessee shall provide to Lessor a letter of credit in the amount of five thousand dollars ($5,000.00). The letter of credit value shall be re-evaluated by the Lessor at the conclusion of each rental period. The Airport Manager may, in his/her sole discretion,make a claim on the letter of credit to cure, in whole or in part, any breach of this Agreement, including but not limited to, a failure to pay rent. Within ten(10)calendar days of notice by Lessor to Lessee that it has made a claim on the letter of credit, Lessee shall immediately ensure that the penal sum of the letter of credit($5,000.00)be restored in full. c. RENT INCREASES. The ground rent for the premises wili increase by 3%of the then-current ground rent on annual basis during the initial term and both optional term extensions. Rental increases will be calculated using the full ground rent rather than the amount collected during the initial rent abatement period. d. FUEL FLOWAGE. Lessee shall pay to the Lessor fuel flowage fees for all aviation fuels sold during the previous monthly billing period by the tenth (lOtn) day of each month at the then-current fuel flowage rate as established BY THE City Council. Lessee will provide fuel supplier invoices with each monthly payment; and Lessee consents to Lessor obtaining copies of invoices directly from suppliers. i. Lessee shall maintain full-services responsibilities with regard to above ground fuel tanks, mobile fuel trucks, and all associated federal, state, and local fire code regulations. ii. Lessee shall maintain all necessary manuals and inspection record requirements (e.g. SPCC, Hazmat Business Plan,NFPA, etc.). e. TRANSIENT TIE-DOWN FEES. Lessee shalt collect transient tie-down fees at the then-current rates as established by the City Council. One-half('/z) of the fees collected by the Lessee shall be provided to Lessor by the tenth (10`") day of each month following the previous monthly billing period, with a listing of the general type of aircraft collected from (e.g. twin engine, helicopter, single-engine aircraft). The Airports Manager will establish the specific areas and general procedures for transient aircraft area collections. f. AIR OPERATIONS REPORT. Lessee will, upon request, provide Airport management with an estimated monthly count of all aircraft operations, using criteria established by the FAA. g. LTNICOM OPERATIONS. UNICOM radio will be provided and operated by the Lessee to provide air traffic advisories during all business hours. Lessee will comply with all appropriate State and Federal regulations associated with UNICOM operations. h. TIE-DOWN SPACES. Lessee will be assigned ten (10) aircraft tie-down spaces for its exclusive use only and not for subsequent subleasing. If Lessee requires additional tie-down spaces in the future, and additional tie-down spaces become available,they may be leased from the City of Redding at established rates. C- : Benfon Field Fixed Base Operator Lease & Operating Permif i. SECURITY BADGES. In the event that the airport sponsor (the Crty of Redding) is required by regulators (FAA, TSA, etc.) or independently determines that is necessary to implement identification card access control or otherwise increase access control restrictions to Benton Field, the Lessee agrees to pay any processing fees required for security badges or other access control media as may be required for all employees on the affected premises. The Aviation Security Coordinator shall determine the time of payment and amount of the processing fee which shall be reasonable and uniform for all like tenants at the airport. 5. PROMPT PAYMENT. Lessee shall pay to the City all rent for the premises and all other payments, if any,required by this Agreement,without deduction,set off,prior notice, or demand, n or before the first (lst) day of the month. Payments not paid when due are subject to late fees and penalty charges as shown in the then-current City of Redding Master Fee Schedule. Rent for any partial month shall be prorated based on a thirty(30)day month. 6. HOLDING OVER. In the event Lessee remains in possession of the Leased Premises after the expiration of this Agreement or any extension thereof,without any written renewal or extension of the Agreement, such holding over shall not be deemed as a renewal or extension of this Lease, except on a month-to-month basis at 110% of the amount of monthly rental most recently payable during the term of the Lease. The Lessor shall make a good faith effort to avoid holding over upon expiration of the Agreement by exercising its rights and options as described in the Agreement. 7. UTILITIES. Lessee shall arrange for the provision and payment prior to delinquency of any and all utility charges furnished to the premises, including, without limitation, electricity, gas, water, sewer, telephone, and internet services, as applicable to the specific areas of the premises. The Lessor shall have no responsibility to pay for utilities furnished to the premises, and Lessee shall hold the City free and harmless from all charges for the furnishing of utilities to the premises. 8. TRASH, GARBAGE,REFUSE, ETC. Lessee shall provide a complete and proper arrangement for the adequate sanitary handling and disposal, away from the airport, of all trash, garbage, and other refuse produced as a result of Lessee's business operations on the leased premises. 9. TAXES. Lessee is advised that, pursuant to Revenue and Taxation Code § 107.6, a possessory interest subject to taxation may be created by the grant of this lease and that Lessee may be subject to the payment of property taxes levied upon the interest. a. Lessee shall promptly pay before delinquency any taxes andlor special assessments assessed against the Premises and any improvements and/or Lessee's personal property, and any possessory interest tax levied by reason of its use and/or occupancy of the premises.On demand from the City,Lessee,shall furnish the City with satisfactory evidence of these payments. 10. PUBLIC BENEFIT. Lessee agrees to operate the leased premises for the use and benefit of the public and further agrees: G : Benton Fieid Fixed Base Operator Lease & Operating Permit a. To use reasonable efforts to furnish good, prompt, and efficient services that adequately meet the demand for services at the airport; and b. To furnish said services on a fair,equal, and not unjustly discriminatory basis to all users thereof; and c. To address aircraft maintenance and parts needs in-house as best as practical before resorting to outsourced or off-site work; and d. To charge fair, reasonable, and nondiscriminatory prices for each unit of sale or service,provided that the Lessee may take reasonable nondiscriminatory discounts, rebates, or other similar types of price reductions for volume purchases; and e. To be good stewards of airport-owned equipment including the AWOS and aircraft billing software. 11. INDEMNIFICATION. Lessee shall indemnify and defend the City, its officers, officials, employees, agents and volunteers, against and hold them harmless from any and all claims, losses, damages, civil penalties, and liability for damages, including reasonable attorneys' fees and other costs of defense incurred by the City, whether for damage to or loss of property or injury to or death of person(s), including properties of the City and injury to or death of the City's officers,officials,employees, agents and volunteers,arising out of or resulting from Lessee's possession or use of the Premises or activities hereunder or from the actions of Lessee's officers, employees, agents and invitees, unless such damage, loss, injury or death is caused by the sole negligence or willful misconduct of the City. Lessee's obligations under this Section shall survive terrnination or expiration of this Agreement. 12. INSURANCE. a. Unless modified in writing by City's Risk Manager, Lessee shall maintain, during the duration of this Agreement,the following insurance from an insurance company authorized to do business in the State of California. The cost of such insurance shall be borne by Lessee. Subject to policy terms, conditions, limitations and exclusions, coverage shall be at least as broad as: i. Insurance Services Office form number CG-00 O1, Commercial General Liability Insurance, in an amount not less than $2,000,000 per occurrence and $4,000,000 general aggregate for bodily injury and property damage liability, personal injury and advertising injury liability, medical payments and, as applicable, products-completed operations coverage, explosion, fueling, defueling and refueling operations. ii. Aircraft Liability, in respect of all aircraft owned, leased, hired, borrowed or operated, including passengers and non-passengers, and including contractual liability coverage in an amount not less than $1,000,000 per each occurrence for bodily injury and property damage, with a sublimit per passenger of no less than $100,000. iii. Insurance Services Office form number CA-0001 (Ed. 1/87), Comprehensive Automobile Liability Insurance, which provides for total C- : Benton Field Fixed Base Operator Lease & Operating Permit limits of not less than $1,000,000 combined single limits per accident applicable to all owned, non-owned and hired vehicles. iv. Statutory Workers' Compensation required by the Labor Code of the State of California and Employers'Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials,officers,employees,agents and volunteers. v. Property Insurance against all risks of loss to any tenant improvements, betterments, and contents at full replacement value. The property insurance policy shall contain a waiver of subrogation in favor of City, its officers, officials, agents, employees and volunteers. b. Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. c. Other Insurance Provisions. The general liability policies are to contain or be endorsed to contain the following provisions: i. The City, its officers, officials, employees, agents and volunteers are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Lessee;premises leased or used by Lessee;or automobiles owned,leased,hired or borrowed by the Lessee.The coverage shall contain no special limitations of the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers. ii. City, its elected officials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Consultant; premises owned, leased or used by Consultant; or automobiles owned, leased, hired or borrowed by Consultant. iii. Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents or volunteers but only as respects claims arising from the sole negligence of the Lessee.Any insurance or self- insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. iv. Coverage shall state that Lessee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. d. Cancellation Clause. Each insurance policy required by this section shall be endorsed to state that coverage shall not be canceled except after thirty (30) days' prior written notice has been given to the City. e. Certificate Holder. The Certificate Holder shall be the City of Redding, �77 Cypress Avenue, Redding CA 96001. £ Sublessees. Sublessees shall be required to procure and maintain insurance applicable to their service and/or operation and meet the insurance requirements set G : Benton Field Fixed Base Operator Lease & Operating Permit forth in this Section. City shall determine the type(s) of insurance to be provided by Sublessee. g. Acceptability of Insurers. Insurance is to be placed with insurers admitted to conduct business in the State of California with a current A.M. Best's rating of no less than A-:VII. h. Verification of Coverage. Lessee shall furnish the City with certificates of insurance and original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. i. Coverage. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Lessee thirty(30}days' advance written notice of such change. j. The requirements as to the types and limits of insurance coverage to be maintained by Lessee as required by Section 9 of this Agreement, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Lessee pursuant to this Agreement, including, without limitation, provisions concerning indemnification, k. At every five (5) year anniversary during the initial term of this Agreement or any option term, the City Attorney or Risk Manager may modify the insurance requirements set forth herein and, upon written notice from the City Attorney or Risk Manager of the change in insurance requirements, Lessee shall satisfy said insurance requirement within thirty(30) calendar days. 13. MAINTENANCE AND REPAIRS. a. Lessee shall, at Lessee's sole cost and expense and at all times during the term, maintain the premises in a safe and attractive condition and in the same condition as received at the beginning of the term, ordinary wear and tear excepted. Lessee shall do, or cause to be done without delay, all those things which, in the opinion of the Airports Manager, are necessary or desirable in the interests of safety or to maintain the premises in good repair and appearance. All damage caused to the premises and/or Airport by Lessee, its officers, employees, agents and invitees, shall be repaired at Lessee's sole expense. b. Lessee shall, at Lessee's sole cost and expense and at all times during the tertn, be responsible for the following: i. Pest control (optional); ii. Janitorial; iii. Indoor and outdoor lighting; iv. Indoor and outdoor plumbing fixtures (e.g. clogs, overflows, leaks); v. Landscaping and irrigation; vi. Sweeping and maintaining the aircraft and vehicle parking aprons in a clean condition; vii. Conduct vegetation and weed management. C- : Benton Field Fixed Base Operator Lease & Operafing Permit 14. ALTERATIONS AND ADDITIONS. a. Lessee shall not make or cause to be made any alterations or improvements to the premises without first securing the written consent of the Airports Manager. The Airports Manager, in his sole discretion, may impose restrictions upon any proposed alterations or improvements. All such alterations or improvements shall be made at Lessee's sole expense and comply with Airport Policy and all applicable building, zoning and fire codes. b. Any trade fixtures, equipment, and other property brought, installed, or placed by Lessee in or about the premises shall be and remain the property of Lessee except as otherwise provided herein. Lessee shall have the right at any time during the term hereof to remove any or all of its property, subject to Lessee's obligation to repair all damage, if any, resulting from such removal. c. Upon the termination of this Agreement, at the sole option of the City: (1) The alterations or improvements shall become the property of the City and shall remain on the premises; or (2) Lessee shall remove all alterations or improvements and return the premises to the City in substantially the same condition as the premises existed at the commencement of this Agreement. 15. NO EXCLUSIVE USE. Nothing contained in the Agreement shall be construed as entitling the Lessee to the exclusive use of any services, facilities, or property rights of any nature at the airport, except the use of the premises for the purpose and approved use set forth in the Agreement. 16. WASTE; QUIET CONDUCT. Lessee shall not commit or suffer to be committed any waste upon the premises, or any nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant of or user of the Airport or the City's adjoining property. 17. STORAGE. Lessee shall not store anything outside of the premises without the prior written approval of the Airports Manager. 18. RIGAT TO INSPECT. a. The City and its authorized officers, agents, employees, volunteers, contractors, subcontractors and other representatives shall have the right to inspect the premises for any purpose, including, but not limited to, the following: i. To inspect the premises at reasonable intervals during regular business hours with twenty-four(24)hours prior notice to determine whether Lessee has complied with or is complying with the promises,terms, covenants and conditions of this Agreement; ii. To make repairs,additions,or alterations as may be necessary or convenient for the conduct, safety, improvement, or preservation of the Airport; iii. For emergency purposes; and iv. In the exercise of the City's police power. b. No inspection by or on behalf of the City of the premises shall cause or constitute a termination of this Agreement, or be deemed to constitute an interference with Lessee's possession or use thereof. C- : Benton Fieid Fixed Base Operator Lease & Operating Permit 19. AUTOMATIC WEATHER OBSERVATION SYSTEM(AWOS) The AWOS is the property of the City and shall not be accessed, moved, or otherwise altered by the Lessee. The content, automated messaging,or any other data contained or displayed by the AWOS shall not be modified by the Lessee in any way without prior consent of the Lessor. 20. INSPECTION OF BOOKS & RECORDS. The Lessee, following accepted accounting practices and procedures, will maintain true and accurate books, records, and receipts which will show fuel flowage. Such books and records may be inspected at any time by Lessor or its duly authorized representatives at the City of Redding, California, upon reasonable notice to Lessee. In the event Lessee requests such inspection to be performed outside the Redding area, such request may be honored at Lessor's discretion; however, any and all expenses incurred by so doing shall be reimbursed by the Lessee. 21. RULES AND REGULATIONS; COMPLIANCE WITH LAWS. Lessee shall,at Lessee's sole cost and expense, comply with all of the requirements of all city, county, state and federal authorities now in force,or which may hereafter be in force,pertaining to Lessee's possession and use of the premises, and shall faithfully observe in the use of the premises all city and county ordinances and state and federal statutes and regulations, now in force or which may hereafter be in force. Lessee's possession and use of the premises shall conform to all Airport rules and regulations and local building and fire codes. 22. HAZARDOUS MATERIALS. a. Hazardous substances or materials include, but are not limited to: i. Substances which are flammable, explosive, corrosive, radioactive,toxic; ii. Any material or substances defined as hazardous substances, hazardous materials, toxic substances, or hazardous wastes in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Sections 9601, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Sections 6901, et seq.), the Hazardous Waste Control Act (California Health & Safety Code Sections 25100, et seq.} the Hazardous Substance Account Act (California Heath & Safety Code Sections 25300, et seq.), California Health and Safety Code Section 25280, et seq., Hazardous Materials Release Response Plans and Inventory or the California Porter-Cologne Water Quality Control Act, (Water Code Sections 13000, et seq.), and all amendments to these laws and regulations adopted or publications promulgated pursuant to these laws; iii. Those asbestos-containing materials defined and described in Environmental Protection Agency Report No. 56/5-85-024 (June 1985) whether or not friable,or any related or successor report,or other applicable government regulations defined or describing such materials; iv. Pesticides as defined by Section 136(u)of FIFRA(7 U.S.C. Section 136)as may be present in soil or groundwater; v. "Hazardous wastes" as defined in Section 25117 of the California Health and Safety Code, or as a chemical that is known to the State of California "to cause cancer or reproductive toxicity" under the Safe Drinking Waster C- : Benton Field Fixed Base Operator Lease & Operating Permit and Toxic Enforcement Action of 1986, California Health and Safety Code Sections 25249.5, et seq.; and vi. Hazardous materials, substances or waste, or toxic materials, substances or waste as those terms or similar terms are defined by any other federal, state or local law or regulation or orders. b. Lessee agrees to indemnify, protect, hold harmless, and defend City, its elected officials, officers, employees, agents and volunteers from and against any and all liability, including without limitiation, (1} all foreseeable and unforeseeable consequential damages, directly or indirectly arising from the use generation, storage, or disposal of hazardous materials by Lessee, and (2) the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, to the full extent that such liability is attributable, directly or indirectly,to the presence of use,generation, storage,release,threatened release, or disposal of hazardous materials by Lessee, its officers, employees, agents and/or invitees on the Premises or Airport after the beginning of the term of this Agreement. c. Lessee releases City from any and all claims Lessee may have against City of whatever kind or nature resulting from or in any way connected with the environmental condition of the Premises, including any and all claims Lessee may have against City under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), or any other federal, state, or local law, whether statutory or common law, ordinance, or regulation pertaining to the release of hazardous materials into the environmental from or at the Premises. Lessee expressly waives the benefits of Civil Code Section 1542, which provides as follows: "A general release does not extend to claims which the creditor does not know or expect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." d. Lessee's obligations under this Section shall survive termination or expiration of this Agreement. 23. SECURITY. Lessee shall completely secure the premises to prevent unauthorized access to the secure side of the Airport at all times. Lessee shall defend, indemnify, hold harmless and pay any fines imposed upon the City by the Federal Aviation Administration (FAA), Department of Homeland Security (DHS), or Transportation Security Administration (TSA) for violations of security caused by actions of Lessee or its agents, employees, or invitees. Lessee shall pay such fine within thirty(30) days of written notice from the City of the obligation to pay the fine. Failure to comply with the provisions of this Section is grounds for termination of this Agreement by the City. 24. SECURITY PLAN. In the even that such a plan is required generally, or as such a plan may currently be required for hosting public events, Lessee shall submit a security plan to the Lessor's Airport Security Coordinator, which is acceptable to the City of Redding Airports Division and the Federal Aviation Administration. Failure to submit an acceptable G : Benton Fieid Fixed Base Operator Lease & Operating Permit security plan at the request of the Aviation Security Coordinator shall be grounds for immediate termination of this Agreement. 25. I30STING OF AIRPORT EVENTS. The lessee may host special events on its premises at the airport contingent upon the approval by the Airports Manager and acquisition of all relevant permits, including special event permits issued by the City of Redding. 26. SPONSOR ASSURANCES SUBORDINATION. a_ This Lease shall be subordinate to the provisions of any existing or future agreement between the Lessor and the United States concerning the operation or maintenance of the Airport,the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the Airport. Should the effect of such agreement with the United States be to take any of the property under this Lease or otherwise diminish the commercial value of this Lease, the Lessor shall not be held liable therefor. However, If the commercial value is appreciably diminished, the Lessor and Lessee shall engage in good faith negotiations to determine a fair and equitable adjustment to rentals and fees. b. The Lessor covenants and agrees that it will, during the term of this Agreement, operate and maintain the Airport as a public facility consistent with and pursuant to the Assurances given by the Lessor to the United States Government under federal law. c. FEDERAL PROVISIONS (NON-AIP CONTRACT): GENERAL CIVIL RIGHTS PROVISIONS In all its activities within the scope of its airport program,the Contractor agrees to comply with pertinent statutes, Executive Orders, and such rules as identified in Title VI List of Pertinent Nondiscrimination Acts and Authorities to ensure that no person shall, on the grounds of race,color,national arigin(including limited English proficiency), creed, sex(including sexual orientation and gender identity), age,or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. This provision is in addition to that required by Title VI of the Civil Rights Act of 1964. If the Contractor transfers its obligation to another,the transferee is obligated in the same manner as the Contractor. The above provision obiigates the Contractor for the period during which the property is owned, used or possessed by the Contractor and the airport remains obligated to the Federal Aviation Administration. Title VI List of Pertinent Nondiscrimination Acts and Authorities During the performance of this contract,the Contractor, for itself, its assignees,and successors in interest(hereinafter referred to as the"Contractor")agrees to comply with the following non-discrimination statutes and authorities; including but not limited to: C- : Benton Field Fixed Base Operator Lease & Operating Permit • Title VI of the Civil Rights Act of 1964(42 USC § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race,color, national origin); • 49 CFR part 21 (Non-discrimination in Federally-Assisted programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964); • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970,(42 USC § 4601)(prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.),as amended (prohibits discrimination on the basis of disability); and 49 CFR part 27 (Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance); • The Age Discrimination Act of 1975,as amended(42 USC § 6101 et seq.) (prohibits discrimination on the basis of age); • Airport and Airway Improvement Act of 1982(49 USC §47123),as amended (prohibits discrimination based on race,creed, color,national origin,or sex); • The Civil Rights Restoration Act of 1987(PL 100-259)(broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964,the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973,by expanding the definition of the terms"programs or activities"to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act of 1990(42 USC § 12101, et seq)(prohibit discrimination on the basis of disability in the operation of public entities, public and private transportatiou systems,places of public accommodation, and certain testing entities) as implemented by U.S. Department of Transportation regulations at 49 CFR parts 37 and 38; • The Federal Aviation Administration's Nondiscrimination statute(49 USC § 47123)(prohibits discrimination on the basis of race,color, national origin,and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations(ensures ilondiscrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations); • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency,and resulting agency guidance,national origin discrimination includes discrimination because of limited English proficiency(LEP). To ensure compliance with Title VI,you must take reasonable steps to ensure that LEP persons have meaningful access to your programs [70 Fed. Reg. 74087(2005)]; • Title IX of the Education Amendments of 1972,as amended, which prohibits you from discriminating because of sex in education programs or activities(20 USC § 1681, et seq). Compliance with Nondiscrimination Requirements: G : Benton Field Fixed Base Operator Lease & Operating Permit During the performance of this contract,the Contractor, for itself, its assignees,and successors in interest(hereinafter referred to as the"Contractor"),agrees as follows: 1. Compliance with Regulations: The Contractor(hereinafter includes consultants)will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities,as they may be amended from time to time,which are herein incorporated by reference and made a part of this contract. 2. Nondiscrimination: The Contractor,with regard to the work performed by it during the contract,will not discriminate on the grounds of race, color, national origin(including limited English proficiency),creed, sex(including sexual orientation and gender identity), age,or disability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Contractor will not participate directly or indirectly in the discrimination prohibited by the Nondiscrimination Acts and Authorities, including employment practices when the contract covers any activity,project, or program set forth in Appendix B of 49 CFR part Z 1. 3. Solicitations for Subcontracts,including Procurements of Materials and Equipment: In all solicitations,either by competitive bidding or negotiation made by the Contractor for work to be performed under a subcontract, including procurements of materials,or leases of equipment, each potential subcontractor or supplier will be notified by the Contractor of the contractor's obligations under this coniract and the Nondiscrimination Acts and Authorities on the grounds of race,color, or national origin. 4. Information and Reports: The Contractor will provide all information and reports required by the Acts,the Regulations,and directives issued pursuant thereto and will permit access to its books,records, accounts,ottler sources of information,and its facilities as may be determined by the Sponsor or the Federal Aviation Administration to be pertinent to ascertain compliance with such Nondiscrimination Acts and Authorities and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish the information,the Contractor will so certify to the Sponsor or the Federal Aviation Administration,as appropriate, and will set forth what efforts it has made to obtain the information. 5. Sanctions for Noncompliance: In the event of a Contractor's noncompliance with the non-discrimination provisions of this contract,the Sponsor will impose such contract sanctions as it or the Federal Aviation Administration may determine to be appropriate, including, but not limited to: a. Withholding payments to the Contractor under the contract until the Contractor complies; and/or b. Cancelling,terminating,or suspending a contract, in whole or in part. 6. Incorporation of Provisions: The Contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment,unless exempt by the Acts,the Regulations, and directives issued pursuant thereto. The Contractor will take action with respect to any subcontract or procurement as the Sponsor or the Federal Aviation Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided,that if the Contractor becomes involved in,or is threatened with liti ation b a subcontractor,or C- : Benton Field Fixed Base Operator Lease & Operating Permit supplier because of such direction,the Contractor may request the Sponsor to enter into any litigation to protect the interests of the Sponsor. In addition,the Contractor may request the United States to enter into the litigation to protect the interests of the United States. CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE AIRPORT IMPROVEMENT PROGRAM A. The Lessee for himself/herself,his/her heirs,personal representatives, 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: l. In the event facilities are constructed,maintained, or otherwise operated on the property described in this lease for a purpose for which a Federal Aviation Administration activity, facility, or program is e�tended or for another purpose involving the provision of similar services or benefits,the lessee wi11 maintain and operate such facilities and services in compliance with all requirements imposed by the Nondiscrimination Acts and Regulations listed in the Title VI List of Pertinent Nondiscrimination Acts and Authorities(as may be amended)such that no person on the grounds of race, color,or national origin,will be excluded from participation in, denied the benefits of,or be otherwise subjected to discrimination in the use of said facilities. B. With respect to licenses, leases,permits,etc., in the event of breach of any of the above Nondiscrimination covenants, City of Red�ling will have the right to terminate the lease and to enter,re-enter,and repossess said lands and facilities thereon, and hold the same as if the lease had never been made or issued. With respect to a deed, in the event of breach of any of the above Nondiscrimination covenants,the City of Redding will have the right to enter or re-enter the lands and facilities thereon, and the above-described lands and facilities will there upon revert to and vest in and become the absolute property of the City of Redding and its assigns. 27. DAMAGE; DESTRUCTION. a. If the Premises are so damaged or destroyed by fire, flood, earthquake, the elements, casualty, war, riot, public disorder, or any other cause not the fault of Lessee, its officers,ernployees,agents or invitees so as to render the entire Premises unusable for Lessee's operations, the Lessee shall have the option to either repair the Premises or terminate this Agreement. In the event that the Lessee elects to terminate this Agreement, rent for the month in which the Premises are damaged shall be prorated and the unearned portion refunded to Lessee within three(3)days of the Lessee's election to terminate this Agreement. Notwithstanding,Lessee shall bear the cost of removing all material, structures and improvements from the Premises and City may recover as a set-off to rent to be returned to Lessee pursuant to this subdivision or by any other means afforded to it in law or equity the cost of removing the same if Lessee does not do so within thirty(30)calendar days of City having deposited notice to Lessee of its obligation as set forth herein." C- : Benton Field Fixed Base Operator Lease & Operating Permit b. If the Premises are partially damaged or rendered partially unusable by fire, flood, earthquake,the elements, casualty,war, riot,public disorder, or any other cause not the fault of City, its officers or employees, City shall give the Lessee written notice of such damage, and if the Lessee does not commence repairs within thirty (30) calendar days from the date of the notice, City may elect to terminate this Agreement by giving written notice to the Lessee of City's election to terminate this Agreement. If City elects not to terminate this Agreement, this Agreement shall continue in full force and effect except that the damage to the Premises shall be repaired by and at the expense of the Lessee and until such repair is substantially completed so that full use and occupancy of the Premises by Lessee is possible,the rent shall be apportioned according to the portion of the Premises which remains useable. If such repairs are not completed within one hundred eighty(180)calendar days from the date of the City's notice of the damage, City may terminate this Agreement by giving Lessee written notice within ten (10) calendar days of the expiration of the one hundred eighty(180)calendar day period of the City's election to terminate this Agreement. 28. DEFAULT. a. The occurrence of any of the following shall constitute a material breach or default of this Agreement by Lessee: i. Failure to pay any payment due under this Agreement when due, if the failure to pay continues for five (5) days after notice of the failure has been given to Lessee; ii. Failure to perform any other provision of this Agreement if the failure to perform is not cured within thirty (30) days after notice of the failure has been given to Lessee. If the breach or default cannot be reasonably cured within thirty (30) days, Lessee shall not be in breach or default of this Agreement if Lessee commences to cure the breach or default within the thirty (30) day period and diligently and in good faith continues to cure the default. iii. Failure to maintain current licenses, if any, required for the permitted operation. iv. Intentionally supplying the City with false or misleading information or misrepresenting any material fact on documents or in statements to or before the City and its employees,or the intentional failure to make full disclosure on a financial statement or other required documents. b. Notices given under this section shall be made in writing, and shall specify the alleged breach or default, and shall demand that Lessee perform the provisions of this Agreement or pay the payment that is in arrears, as the case may be,within the applicable time period, or this Agreement is terminated. No such notice shall be deemed a forfeiture or a termination of this Agreement unless the City so elects in the notice. c. The City, at any time after Lessee commits a breach or default of this Agreement, can cure the breach or default at Lessee's cost. If the City, at any time,by reason of C- : 8enton Field Fixed Base Operator tease & Operating Permit Lessee's breach or default,pays any sum or does any act that requires the payment of any sum, the sum paid by the City shall be due immediately from Lessee to the City at the time the sum is paid, and if paid at a later date shall be subject to late fees and penalty charges as shown in the City's then current Schedule of Fees and Charges. The sum, together with the late fees or penalty charges, shall be an additional payment owed to the City pursuant to this Agreement. 29. CITIES REMEDIES FOR DEFAULT. a. Termination of Lease. Upon the occurrence of a default that is not timely cured by Lessee,the City may immediately terminate this Agreement and recover possession of the Premises. Once the City has terminated this Agreement, Lessee shall immediately surrender the Premises to the City. On termination of this Agreement, the City may recover from Lessee all of the following: i. The worth at the time of the award of any unpaid rent that had been earned at the time of the termination, to be computed by allowing interest at the maximum amount of interest permitted by law; ii. Any difference in the rent owed going forward less the rent from a new tenant as multiplied by the number of months remaining on the term; iii. Any other amount necessary to reasonably compensate the City for all the detriment proximately caused by Lessee's failure to perform obligations under this Agreement, including brokerage commissions and advertising expenses, expenses of remodeling the Premises for a new Lessee (whether for the same or a different use), and any special concessions made to obtain a new Lessee; and iv. Any other reasonable amounts, in addition to or in lieu of those listed above, that may be permitted by applicable law. b. Continuation of Lease in Effect: Upon the occurrence of a default that is not timely cured by Lessee, the City shall have the remedy described in Civil Code section 1951.4,which provides that,when a Lessee has the right to sublet or assign(subject only to reasonable limitations), the City may continue the lease in effect after the Lessee's breach and abandonment and recover rent as it becomes due.Accordingly, if the City does not elect to terminate this Agreement on account of any default by Lessee, the City may enforce all of the City's rights and remedies under this Agreement, including the right to recover all rent as it becomes due. c. Specific Performance: The Parties agree that a breach of the terms and conditions would cause irreparable damage to the non-breaching party and that equitable relief is available to the non-breaching party. The breaching party agrees that he will not oppose the grant of an injunction, specific performance and other equitable relief on the basis that an adequate remedy at law is available or that an award of specific performance is not an appropriate remedy for any reason at law or in equity. The Party seeking injunctive relief, specific performance or other equitable relief shall not be required to provide any bond or other security in order to seek said injunctive relief, specific performance, or other equitable relief. C- : Bento» Field Fixed Base Operator Lease & Operating Permit 30. SURRENDER OF PREMISES. On the expiration, cancellation or termination of this Agreement, Lessee shall surrender possession of the Premise to City, deliver all keys to any locks on the Premises and make known to City the combination of any combination locks on the Premises. Lessee shall reimburse City for any damage done to the Premises caused by Lessee's use of the Premises or Lessee's actions or omissions other than normal wear and tear. Lessee shall remove all its personal property on or before the date of expiration, cancellation or termination of the Agreement. 31. ADMINISTRATION BY CITY. Whenever Lessee is required to secure the approval or consent of the City pursuant to this Agreement, the City shall mean the Airports Manager. When the Mayor is signatory to this Agreement, the Airports Manager shall have authority to execute any amendment to this Agreement which does not decrease the amount of compensation allowable to City, or otherwise substantially change the nature or scope of the agreement provided herein. 32. VOLUNTEER ASSISTANCE. Under no circumstances will Lessee use City employees whom are on duty to perform work at the Premises. Under no circumstances will Lessee use City employees whom are off duty to perform work at the Premises if the nature of the work is substantially similar to the employee's regular work duties for the City. 33. SIGNS. The size and location of signs, banners,flags, etc., located off of the Airport advertising the activities of Lessee shall be subject to the City's sign ordinance (Redding Municipal Code Chapter 18.42.) The size and location of signs,banners,flags,etc., located on the Premises or at the Airport shall be subject to the prior written approval and control of the Airports Manager. 34. BUSINESS SOLICITATIONS. All of Lessee's business operations and solicitations will be confined to the Leased Premises or such other premises at the Airport that have been leased to Lessee. 35. RIGHTS OF OTHERS. It is clearly understood by the Lessee that no right or privilege has been granted which would operate to prevent any person, firm,or corporation operating an aircraft at the Airport from performing any services on its own aircraft with its own employees(including, but not limited to, maintenance and repair)that such person, firm, or corporation may choose to perform. Lessee understands that any exclusive right to performing services on aircraft that may be implied by this Agreement is a civil dispute as between the Lessee and any other tenant and that Lessor shall not be held liable for any failure to monitor and/or enforce this provision. 36. ACCESS. Lessee is obligated to control all access to the aircraft operations areas (AOA)through the Leased Premises and through gates assigned to or controlled by Lessee so as to prevent unauthorized entry to the airfield by persons or vehicles. In the event that unauthorized access to the AOA is gained through the leased Premises or any areas which Lessee controls or is obligated to control, any fines or penalties assessed by the Federal Aviation Administration and/or Transportation Security Administration shall be the responsibility of the Lessee and Lessee hereby agrees to pay all such fines or penalties without delay and make any and all requested changes in operations or facilities necessary to maintain Airport security and prevent reoccurrence of any unauthorized entry. Failure C- : Benton Field Fixed Base Operator Lease & Operating Permit to comply with this paragraph shall be cause for immediate termination of this Lease Agreement by Lessor. 37. VEHICULAR MOVEMENT. Except as specifically authorized by the City of Redding Airports Division, Lessee will not permit the driving of vehicles by employees, customers, guests, or invitees on the apron, taxiways, or runways. 38. SAFETY. Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent Lessee from constructing or permitting construction of any building or other structure on or off the Airport which, in the opinion of Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft. 39. MAINTENANCE OF PUBLIC AREA. Lessor reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the landing areas of the Airport and all publicly-owned facilities of the Airport. Lessee will perform no maintenance activities outside of the Leased Premises without the consent of the City of Redding Airports Division. 40. STANDARDS. Lessor reserves the right to establish reasonable standards for the construction and maintenance of and alterations, repairs, additions, or improvements of Lessee's facilities. This includes structural design, calor, materials used, landscaping and maintenance of Lessee's facilities and Leased Premises. Subject to Lessee's Duty to Repair, Lessor will not require Lessee to reconstruct or alter an existing improvement that has been constructed and maintained in good condition under a prior design standard. 41. TIME OF EMERGENCY. During time of war or national emergency, the Lessor shall have the right to sublease the landing area and any other portion of the Airport to the United States for governmental use and, if any such sublease is executed, the provisions of this instrument and any associated rentals and fees, insofar as they are inconsistent with the provisions of the lease to the United States, shall be suspended. 42. DEVELOPMENT OF AIRPORT. Lessor reserves the right to further develop or improve the Airport as Lessor sees fit in a reasonable and nondiscriminatory manner. However,the Lessor shall notify Lessee in writing,prior to planned development effecting Lessee's Leased Premises. However, if the commercial value is appreciably diminished, Lessor and Lessee shall engage in good faith negotiations to determine a fair and equitable adjustment to rentals and fees. 43. LESSEE'S DUTY TO REPAIR. Except as provided herein,any property of Lessor,or for which Lessor may be responsible, which is damaged or destroyed incident to the exercise of the rights or privileges herein granted, or which damage or destruction is occasioned by the negligence of Lessee, its employees, agents, servants, patrons, or invitees, shall be properly repaired or replaced by Lessee, at its sole expense, to the reasonable satisfaction of the Director of Aviation of Lessor, or in lieu of such repair or replacement, Lessee shall, if so required by the City of Redding Airports Division, pay Lessor the replacement cost of such property. 44. PARKING. Lessee shall at its sole cost and expense provide adequate and suitable parking areas for use by its customers, employees, patrons, guests, and invitees upon its premises. C- : Benton Field Fixed Base Operator Lease & Operating Permit 45. OPERATION OF AIRCRAFT; COMPLIANCE WITH RULES AND REGULATIONS. Lessee agrees to operate and conduct its business upon the Leased Premises and at the Airport at all times in compliance with applicable federal, state and local rules and regulations. Lessee further agrees that in the event that a civil penalty or fine is levied against the Airport as a result of Lessee's failure to comply or act in accordance with said regulations, statutes, and/or ordinances, Lessee shall within fifteen (15) days reimburse the Airport the full amount of the penalty or fine and take reasonable steps to immediately correct the failure,act,or omission leading to,causing,or contributing to the violation. Failure of the lessee to timely comply with any requirement of this paragraph shall be cause for immediate termination of this Lease Agreement by the Lessor. Provided, however, that the duty of the Lessee to reimburse Lessor is subject to Lessor providing timely written notice of any potential fine or penalty. Lessee shall be provided notice to participate in the proceeding and defend itself, with counsel of its choice and its own cost. 46. REMOVAL OF LESSEE'S PROPERTY.The Lessee shall have the right, within thirty (30) days after the termination of this Lease, whether such termination comes upon expiration of the initial term,any extension,or otherwise under any provision of this Lease, to remove from the Leased Premises all of Lessee's furniture, fixtures, equipment, furnishings, and other personal property which has not become the property of the Lessor, but Lessee shall restore the Premises to the original condition, normal wear and tear excepted. The Lessor, however, shall have a lien on all of the Lessee's property to secure any unpaid rentals or other revenue due the Lessor; and Lessee's right to remove property from the Leased Premises is conditioned upon all amounts due the Lessor from Lessee having been paid in full. Unless a renewal agreement is executed, property left on the Premises after thirty (30) days from the date of termination of this Agreement shall be deemed abandoned and will become the property of the Lessor, and may be disposed of as the Lessor sees fit, without any liability to the Lessee to account for the proceeds of any sale; and the lessor, at its option, may require Lessee to remove the abandoned property and may charge rent from the date of expiration or termination of this Agreement through the day of final removal of the property,or of notification to the Lessee of the abandonment of the property and taking by the Lessor, as the case may be. 47. NOTICES. All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender and personally delivered to the City or Lessee,or in lieu of such personal service,sent by United States mail, registered ar certified, return receipt requested,or delivered by facsimile,with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows: TO THE CITY: LESSEE: City of Redding Cardan Aircraft Services Attn: Airports Division 1950 Airport Blvd, 7�7 Cypress Avenue Red Bluff, CA 96080 Reddin , CA 96001 C- : Benton Field Fixed Base Operator Lease & Operafing Permit Either party may change its address for the purposes of this section by giving written notice of such change to the other party in the manner provided in this section. 48. BINDING ON HEIRS AND SUCCESSORS. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors,administrators,successors,and assigns of the parties hereto, but nothing in this Section shall be construed as a consent by City to any assignment of this Agreement or any interest in the Agreement by Lessee except as provided in Section 13 of this Agreement. 49. ATTORNEY'S FEES. In any dispute between the City and Lessee, whether or not resulting in litigation, the prevailing party shall be entitled to recover from the other party all reasonable costs, including without limitation, reasonable attorney's fees. "Prevailing party" shall include without limitation, a party who dismisses an action for specific performance or for damages in exchange for sums allegedly due, performance for covenants allegedly breached or consideration substantially equal to the relief sought in the action,or which receives from the other party,in connection with any dispute,performance substantially equivalent to any of these. 50. HEADINGS,REFERENCES,AND WAIVERS. The titles and headings in this Agreement are inserted for convenience only and shall not constitute a part hereof. A waiver of any party of any provision or a breach of this Agreement must be provided in writing, and shall not be construed as a waiver of any other provision or any succeeding breach of the same or any other provisions herein. 51. NO PARTY DEEMED DRAFTER. In the event of a dispute between any of the parties hereto over the meaning of this Agreement, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code § 1654 that contracts are construed against the drafter shall not apply. 52. CALIFORNIA LAW. This agreement shall be deemed to have been entered into in Redding, California.All questions regarding the validity, interpretation, or performance of any of its terms or of any rights or obligations of the parties to this Agreement shall be governed by California law, and any action brought by either party to enforce any of the terms of this Agreement shall be filed in the Shasta County Superior Court. 53. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every provision therein. 54. ENTIRE AGREEMENT. This Agreement, which includes all exhibits attached hereto and incorporated by reference herein, contains all the representations and the entire understanding between the parties pertaining to the use of the Premises or any other matters connected therewith. All correspondence, memoranda, or oral or written agreements pertaining to the premises or the parties hereto, which originated before the date of this Agreement are null, void, and no longer in force and with no effect, and are replaced in total with this Agreement unless otherwise expressly stated in this Agreement. 55. MODIFICATION OF LEASE. This Agreement shall not be altered, amended, or modified except by a writing signed by City and Lessee. 56. SEVERABILITY. If any portion of this Agreement or the application thereof to any person or circumstance shall be invalid or unenforceable to any extend, the remainder of C- : Benton Field Fixed Base Operator Lease & Operating Permit this Agreement shall not be affected thereby and shall be enforced to the greatest extent permitted by law. 57. AUTHORITY. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Lease Agreement and Commercial Operating Permit on behalf of the respective parties to this Agreement, that they have full right, power,and lawful authority to undertake all obligations as provided in this Agreement;and that the execution, performance, and delivery of this Agreement by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Agreement. 58. DATE OF AGREEMENT. The date of this Agreement shall be the date it is signed by the City. C- : Benton Field Fixed Base Operator Lease & Operating Permit IN WITNESS WHEREOF; City and Cansultant have executed this Contract on the days and year set forth below; CITY OF REDI}ING; A Municipal Corporat�an Dated: a 20 MICHAEL I)ACQUISTQ, Mayor ATTEST: AI'PRQVEI3 AS TO F(JRM: BARRY E.DeWALT City Attorney SHARL�NE TIPT(7N, City Clerk By: CARDAIV AIRCRAFT SERVICES �; '�� Dated: , 2Q ��' �'`�M -��.�, � $;�� Tax ID No.:��;�T=��-� C- : Bentan Field Fixed t�ase aperator Lease & Qi�erating Permit EXHiBIT `A' HILLSIDE AVtATIC�N LEASE SITES HANGER LEASE AREA COMMENCING at a point on the centerline of the runway of Benton Airpark,which point is designated as Engineer's Station O+QO Qn the plans for grading and paving of Benton Airpark and which point has the following Lambert Grid distances: X = 1,887,007.07 Y =453,535.89 thence South 7°Q3'48" East, on and along the centerline of said runway, a distance of 1202 feet to Engineer's Station 12+02 South, 0+00 East; thence North 82°56'S2" East, a distance of 247 feet to the TRUE PQINT OF BEGINNING of this description,which is Engineer's Station 12+02 South,2+47 East; thence North 82°56'52" East,a distance of 198 feet to Engineer's Station 12+02 South, 4+45 East; thence South 7°03'08" East, a distance of 35 feet to Engineer's Station 12+37 South, 4+45 East; thence South 82°56'52"West, a distance of 198 feet to Engineer's Station 12+37 South, 2+47 East; thence North 7°03'08" West, a distance of 35 feet to the TRUE PQINT OF BEGINNING of this description. Containing 6,930 square feet, more or less. EXHfBIT `A' tcontinued) FUEL TANKS LEASE AREA COMMENCtNG at a point on the centerline of the runway of Benton Airpark, which point is designated as Engineer's Statian 0+00 on the plans for grading and paving of Benton Airpark and which point has the following Lambert Grid distances: X = 1,887,007.07 Y = 453,535.89 thence South 7°03'08" East, on and along the centerline of said runway, a distance of 1218.00 feet to Engineer's Station 12+18.00 South, 0+00 East; thence Sauth 82°56'52" West, a distance of 646.00 feet to the TRUE POINT C)F BEGINNING of this description, which is Engineer`s Statian 12+18.00 South, 6+46.00 West; thence South 82°56'S2" West, a distance of 68 feet to Engineer's Station 12+18.00 South, 7+14.00 West; thence North 7°Q3'08" West, a distance af 72 feet to Engineer's Station 11+46.00 South, 7+14.00 West; thence North 82°56'S2" East, a distance of 68 feet to Engineer's Station 11+46.00 Sauth, 6+46.00 West; thence South 7°03'08" East, a distance of 72 feet to the TRUE POfNT �F BEGINNING of this description. Containing 4,896 square feet, more or less. .� �� y� r ��q ,� ��"�� > i`� °� �,,�`�, � ""'a��,«�r „� ��.; � y x:.«- w:„ ';r . . "� 's�,i �,7� y �: a�:.j�� '... y. � , �., � ..�. r f4�� NV1,Ils�,� ..,,m'� � �� "� � ��.��.�� '�� ^"°� x s m� �� ; � ��,� ��;' t '` �'�'�eX�4.� � '. $ � �at ...,.w-.,.`� � °' ��n ��'� �� ' �iNE 1'�1BLE �. � � 7 � � �>� t�'-. . � � `;� �'' ` � l.Ih1E BF.�RING �� t�l�i"l�CE �� ': , � � �p �� L1 �� N 8�56 52 E � #98.t1t} ' �8 1.� S 7`t�3'4B'" E �5.{�t} � � �°� Y`�'-��` 4� �� L3 S 82'S8 52 YY 198.(10 � �' �" �� `��cs t�4 '�� N 'T�3 C!!3�; W 3�:0� "` ' : "�'; L� � 8�'S8`52- W';< 68.t�0 � � ,��"� �, �� "�: ��w. � l.& '� N T03'08" 1N 72.00' �� " . _.. �� sn �' � L7 �� 1� 82"56'52" E 68 � �� ` � �� v�� '� � �� "Q3!78 �� E _:, �... �.C�C�' , ` ;%$ �' � �I CC1 P�JC �- P�tINT OF Ct�M�ENCEM,ENT • � :.� � �:�� 3� y . �� P�3B' = P�INT �F BEGINNING ��,�" �� r x � , , � m ",�`� � ` _ ` '°= �' �` � N� -��,{ � X• � -�`4 � Y e '. � r!1/ i..+'...1 �,'�' � ..� �� . ��p � ; ...-+;-.'.. O � �, ♦ i �4 a.� }.,� , % *y,�.. � § ;� ,+,�^�'SX da' � '� �� »�.63�« � ,�,(4 � �� y. � m*= ��p �. �� *�"`��'� "E----' �� „.t' �'" � �� . � ` ' ti� � �� n � �*'� t�" ��,�` ` � � ' � � , '� .�,' ,;.��'.�� , � ,re. a ;��,� ` � ,F �� „�,� � �� _ � 1 " � ��a�� l �� . � t� t _:a � r �� '�" � � � "�' � � :,� �� g � �,�� . f � � � � � � �� . ,--��. �, �, �� % � '1�+02.U(�� '� ,��` �� :: �.. 3 � , � !i �_ FIJEL T�NKS LEASE AREA � �� 4,89� Sq. F�. � ' �� '��,�� `��° �� ' � �`<8��.Ot)' L � �,� �� , , � ��4T '�' -'�"' �� ''� �it.� N 8�'�6'52" 1� s�s.00 ,�.—�; � � �� HAN�ER ,LEA�E AR�`� ' ° �- � � � � � 6,9 0 ,.�...�----- ' � � � � ��x�� s t.5 � 12-F18a�ttl'� �� , �`� �....._.--�-- � "� C `� ' � �� . � �� j � �� . � �� ', ; �`gq ` ` '�,p �{, ,, 1� A4 ,..� $ '�-� � '��r ��`�� 4�y � � rtx ,>� � v : $ r' T5k�, J ,. , ��e. �. { 'a:,. ','`. � ,u, �,` � ' ' . # �Jy 5` �y'd� xy �LY� �v��, ��Y �l�qS;�� t l��fnf 1 f !1 kr�a.k��. �� J �� ...: I' � �< �y� p�;g �' ', w�%a .k 4 ��9�{b �y � i. �` `�� R'4 c�' .�IYi��r n:;Y. ��:k��,=,',dt� �T+i a, ,.� �. , x , ,.< , y . � , ,., 4, " ,� .�c^s la'�.�, ;. �;z, 3 ,: . 4 :: .:,, . ��.�a , s rx ;. �. :,t; ENGINEERIN� DiVISIC�N LEA�E SITE , ..._ BENTON AIR CENTER, INC. 0 2Q0 400 PLAT C3F HANGER AND FUEL TANKS LEASE �wc. r�o: PRt�PER'tl' OF THE CITY' OF REt�D1RlG Ex��Bcr MARCH, 2C}23 EXHIBIT C �IST OF PLANNED TENANT IMPROVEMENTS • Establish fuel service within two weeks of contract effective date. The anticipated fuel costs for 100LL are $40,080.00 and for Jet A are $35,040.00. • Establish aircraft maintenance at same time as fuel service starts. Shop tooling and equipment and start up inventory are anticipated to cost $150,000.00 • Cafe requires renovation and new equipment; estimated time to get up and running, with no unforeseen issues, is by the end of April with estimated costs of$65,000 • Con-vault fuel tanks for self-service fuel have limited availability (6-9 months delivery following order) and site work is needed (i.e. electrical wiring, plumbing and QT-Pod credit card processing equipment will be up and running with in the year with estimated cost of$90,000.00). • Flight training up and running with in the first ninety days. Cost of aircraft and type depends on availability anticipated cost of$85,000.00. • General maintenance, cleaning, painting and exterior work as needed to start business and keep up appearances. Anticipated cost of$7,500.00.