HomeMy WebLinkAbout _ 4.2(a)--Approve Lease Agreement � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: April 16,2024 FROM: Steve Bade, Assistant City
ITElVI NO. 4.2(a) Manager
***APPROVED BY***
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t��� ; s' �r 4`IU!�C�?4 rS' �P�it�,C�i ��t t� 4�'11,{'2{}?
sbade@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.2(a)--Approve Lease Agreement between the City of Redding and Mark
Le arra for Executive Han ar No. 6 at the Reddin Re ional Ai ort
Recommendation
Approve a Lease Agreement with Mark Legarra for Executive Hangar No. 6 at the Redding
Regional Airport for a five-year term, at $911 per month adjusted annually based on consumer
price index, with the total five year estimated value of the lease to be $56,000, assuming target
inflation of two percent; and authorize the Mayar, to sign and execute the agreement.
Fiscal Impact
The lease agreement is for a five-year term with rental payments set as established in the City of
Redding (City) Master Fee Schedule. The Fiscal Year 2023-24 monthly rate for an executive
hangar at the Redding Regional Airport is $911 per month adjusted annually based on consumer
price index. The total value of the lease over the �ve-year term is estimated at $56,000 assuming
target inflation of two percent.
Alte�native Action
City Council may choose not to approve the lease agreement and provide alternative direction to
City Staff.
BackgNound/Analysis
The City is the owner and operator of the Redding Regional Airport (RDD) which provides
services for general aviation and scheduled commercial air service traffic. In addition to services
provided by Fixed Base Operators (FBOs) at the RDD, the airport offers aircraft storage space to
members of the public. Aircraft storage at the RDD exists in the form of tie-down spaces, closed
hangars, and other types of hangars including executive hangars. The airport may not unlawfully
discriminate against airport users or provide certain forms of exclusive use to commercial
operators, however, airport users interested in conducting a commercial operation at the airport
must conform with airport standards and compliance policy, which includes the reguirement to
Report to Redding City Council Apri110,2024
Re: 4.2(a)--Approve Lease Agreement Page 2
receive a commercial operating permit. To achieve this, the City executes a lease agreement and
commercial operating permit document with the interested party while rental payments are set by
the Master Fee Schedule.
Mark Legarra is the current tenant of Executive Hangar No. 6 at RDD and does business as
Legarra Enterprises. The existing lease agreement and operating permit with Mark Legarra
reached its term in October 2019 and has continued as a month-to-month agreement. This new
agreement sets a term for the hangar occupancy and commercial operating permit and ties rental
payments to the rate as established in the Master Fee Schedule. Under the new commercial
operating permit Mark Legarra wi11 be permitted to operate an engine rebuilding and restoration
business within Executive Hangar No. 6 and provide aerial fire spotting based out of RDD for
lumber companies.
Environmental Review
This is not a project defined under the California Environmental quality Act, and no further
action is required.
Council Pr�ioNity/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
investinent in the community."
Attachments
Lease Agreement with Mark Legarra Executive Hangar No. 6
LEAS A E T T A LE A
E�E+CUTIVE HANGA� NO 6
THIS LEASE AG EMENT is made at Redding, California, by and between the City t�f
Redding("City99), a municipal c�rporation and Mark Legarra, dba Legarra Enterprises
("Lessee"), an Individual.
WHE AS the City oivns and aperates the Redding Regional Airport ("Airport").
�VHE AS,Lessee desires tc� lease and occupy Executive Hangar Na. 6 located at 3720 Flight
Avenue for the purpose of aircraft storage and earrying on c�ammercial activities at the Redding
Regional Airport. �
NOW, T�IE FO ,the parties covenant and agree, for good consideratican hereby
Acknowledged; as fall�ws:
1: HANGAR. Lessee leases from the City and the City leases ta Lessee an the terms and
conditions cantained in this Agreement,the hangar knt�wn as Ex�cutive Hangar No. 6
("Hangar") for aircraft starage and to conduct commercial activities.
2. 'TE p
A. The initial term of this Agreement shali be for'five (5} years commencing on May
1, 2Q24 and expiring Apri130, 2029.
B. Either party may give written notxce pursuant tc� Section 31 to terminate this Lease
with ninety{90) calendar days written notice,
3. USE,
A. The Hangar is leased to Lessee fcrr the sole purpose of aircraft'starage, aircraft
engine rebuilding and restoration, and providing aerial fire spotting for lumber
companies. Lessee sha11 not use or perr�it the Hangar t� be used for any other
purpt�se without the priar written cc�nsent of the City.Ailports Manager's approval
to huild, rebuild, and restore aircraft engines and perform specified major
maintenance aCtivities in the Hangar is subject to Le�see's compiiance with al1
applicable federal, state, and local fire, safety, and building cades and the Airport's
Storm Water Pallution Pr�ventian P1an.
B: All operational aircraft stored In the Hangar must be insured and registered with
The Federal Aviation Administzation {FAA). 'The certificate of aircraft insurance
must be approved lay the City and a current valid�opy of the Certificate of Aircraft
Registration(AC Form 8050-3)must be an file with the Airports Manager.
E'xecutrve Hangar No. 6 tease—Marl�Legarra Page 2
C. Lessee shall have the right in cammcrn with other users of the Airport to the general
use �f aIl public Airport facilities, and improvements which are n�t by right the`
exclusive use �f other nsers of the Airpart ar subject to approval by'the Airports
Manager, including all necessary 1anc�ing area appurtenance� including approach
areas, runways, taxiways, aprc�ns; aircraft, and automobile parking areas ar other
public facilities at the Airpart. The rights herezn extended to Lessee shall include
the right to land take off Iaad and unload persons and personal property from
aircraft. Lessee sha�l not store anything c�utside of the Hangar withot�t the prior
written approval�f the Airparts Manager:
D. N�thing cantained in fihis Agreement shall be construed as entltling Lessee to the
exclusive use of any services; facilities, or praperty rights of any nature at the
Airport, except the�se af the Hangar far the purpose and approved use`set forth in
this Agreement.
E, Lessee shall not engage in the sa�e or provision:of alcoholic beverages at the Hangar
or Airpart without the prior written consent of the City,
4. PE IT FOR COMMEI2CIAL ACTTVITIES. Pursuant to Redding Municipal Cade
Section 3.08.030 City hereby grants t� Lessee a non-exclusive Permit for Commercial
Activities ("Permit"} to aperate an aircraft engine r�building and restQration business
within Executive Hangar#6 and pravide aerlal fire spotting for Iumber companies from the
Redding Regiona� Airport. A breach or default in the terms of this Agreement shall
constitute a violation ofthe terzns of the Permit.
5. NTAL PAYMENTS.Lessee shall pay Lessor the monthly fee Iisted on the Aarport Fee
Schedule at the rate established for Executive Hangar No: 6, as determined �y resoluti�n
of the Redding City�ouncil.
6, IITILITIES. City will provide 'electricity water anc� sewer to the Hangar. Lessee
acknowledges that the Airp�rt provides lim�ted electric utility service to the Hangar,L�ssee
hereby expressly waives any and all claims and halds the City harmless far damages arising
or resulting from failure �r interrupt�on c�f any utility services furnished by the City to
Lessee, incl�ding but not limited to, stappages in eiectrical energy.
7. TAXES. Lessee is advised that pursuant ta Revenue and Taxation Cade §107.6, a
possessory interest subject to taxation may be created by the grant of this Le�se and that
Lessee may be subject ta the payment c�f praperty taxes levied upon the interest. Lessee
shall prc�mptly pay before del�nquency any taxes and/or special assessments assessed
against the Hangar and any improvements and/Qr Lessee's personai property, and any
possessory interest tax Ievied by reason of its use and/or occupancy of the Hangar, t�n
demand from the �ity, Lessee shall furnish the City with satisfactory evidence of these
payments,
Executive Hangar No. 6 Lease—Mark Legarra Page 3
8. INDEMNIFICATION. Lessee shall indernnify and defenct tke City,its afficers;OfF'icials;
emplayees,agents and volunteers,against and hald them harmless from any and all claims;
losses, damages, civil penalties, and liability far damages, including attorney's f�es and
ather cc�sts of defense incurred by the City, whether for damage to or loss of property or
injury to or death of person{s}, including praperties Qf th�City and injury to or death of the
Crty's�fficers,officials,emplt�yees,agents,and volunteers,arising out c�f ar resulting fram
Lessee's passession or use of the Hangar or activities hereunder or from the actions t�f
Lessee's afficer�,employees,agents and invitees,unless such damage,lass,injury or death
is caused by the sole negligence or willful misconduct of the City.
�. ZNSII NCE.
A. Unless modified in writing by City' s R�sk Manager, Lessee sha11 maintain the
follawing insurance during the duration of this Agreement.
i: Insurance Services Office form number CG-O(}01; comm�rcial General
Liability Insurance,in an amount nat Iess than$1,�00?000 per occurrence and
$2;000,000 general aggregate for bodily injury, personal xnjury and property
darnage;
ii. Insurance`Services Office farm number CA-0001 (Ed. 1/87); Comprehensive
Automobile Liability Insurance,whrch provides far total Iimits of nat less than
$1,C100,000 combined single limit�per accident applicable t� all awned, non-
oumed and hired vehicles:
iii. �tatutary�c�rkers' Compensatian required by the Labor Code of the State of
Califarnia and Employers° Liability Insurance an an amount not less than
$1,OOO,D00 per accurrence. Both the Workers' Campensation and Employers'
I:iability policies shall contain the insurer's waiver of subr�gation in favor of
City, its eiected officials, officers, employees, �gents and volunteers.
iv, Pr�perty Insurance against ail risks t�f loss ta any tenant improvements�
betterments, and contents at full replacement value, The property insurance
policy shall contain a waiver of subrogatian in favar of City, its officers,
officials, agents, employees and volunteers.
B. Any deductibles or self-insured retenti�ns must be d�clared ta and apprt�ved by
City;At the option c�f the City, either the insurer shall reduce or eliminate such
deductibl�s or self-insured retentians as respects the City,, its elected of�"icials,
afficers, employees, agents and volunteers, or the Lessee sha1l prc�cure a bond
guaranteeing payment of lo�ses and related investigations, claims �dmznistration
and defense expenses.
Executive Hang�r No. 6 Lea�e—Mark tegarra Page 4
C. The general and auto liability policies are to contain c�r be endcrrsed fio contain, the
following provisions:
i: City, its elected officials, afficers; ernployees, and agent are to be covered as
additional insured as respects liability arising out of work or aperations
perfarmed by or on behalf of Lessee; premises leased or used by Lessee; or
automobiles awned, leased, hir�d or borrowed by Lessee. The coverage shall
contain na special Iimitations an the scope of protection afforded to City, its
elected officials, officers, emplc�yees, agents and vol�nteers:
ii. The insurance cc�verage of Lessee shall be primary insurance as respects City;
its elected Off�czals,o�cers;employees;agents and volunteers.Any insurance
or self-insuran�e maintained by City,its elected officials,officers;employees,
agents and volunteers, shall be in excess af Lessee' s insurance and sha11 not
COntrlbute W�th 1t,
i1i; Ct�verage shall state that the insurance af Lessee shall apply separateiy to each
insured against whom claim is made or suit is brought, except with respect to
the I3mits of the insurer° s liat�ility.
D: Each insurance policy required by this Agreement sha11 be endc�rsed t� state that
caverage shall not be canceled except after thirty (3'0} calendar days"prior written
notice has been given to City. In addition,Lessee agrees that it shall nat reduee its
coverage or limits on any such palicy except�fter thirty{3{�) calendar days'priar
written notice has been grven to �ity,
E. Insurance is ta be placed with insurers with a current A.M.Best° s rating'of nc� less
than A-VII.
F: Lessee sha11 designate the City c�f Redding as a Certificate Holder of the insurance':
Lessee shall fzimish City with certificates of insurance and original endorsements
effecting the coverages required by this clause, Certificates and endorsements sha11
be furnished to: Risk Management Department, City of Redding, 777 Cypress
Avenue, Redding,CA 96001, The certificates and endorsements for each�nsurance
policy are to be signed by a person authorized by the insurer tQ bind coverage on
its behalf. All endorsements are to be received and approved by the City' s Risk
Manager prior to accupatian of the Prernises and commencement of acfivities,
G; The types of coverage, limits of liability; prc�Visions and endorsements set fc�rth an
this sectf on may apply to Less�e's contractor/subcontractor, af any:
H, The requ�rements as tQ the types and limits of insurance coverage to be maintained
by Lessee as required by this Section, and any apprav�l of said insurance by City,
are nc�t intended to and will not in any manner limit or qualify the Iiabilities and
obligations otherwise assumed by Lessee pursuant to this Agreement; including,
Executive Hangar No. 6 Lease—Mark Legarra ppg�5
w�thout limitation,pravisions concerning�ndemnificatian,
10. LEASE ANI? I)ISCHARGE. City shall not be responsible for; and assumes nc�
liability axising from; damage or Ioss to Lessee s pr�perty including, without limitation,
aircraft and engine parts. Lessee hereby releases and discharges'the City from ali clazms
and demands by Lessee for lass of ar damage ta Lessee's property. AII hangar contents
and aircraft are stored solely at Lessee's risk.
11� MAIl'�TENANCE AND PAIR.
A. Lessee sha11, at Lessee's sole cosfi and expense;maintarn the Hangar in a safe and
attractive condition and in the sarne cc�ndition as received at the beginning of the
term, �rdinary wear and tear excepted.
B. Lessee shall do, or cause to be done without delay, all thase things which, in the
opinion of the Af rparts Manager;are necessary or desirable in the interests of safety
or to maintain the Hangar in good repair and appearance. Lessee's maintenance of
the Hangar shall include periodic sweeping of the floor and door tracks,pest cc�ntrol
and protecting the floor from fueI and c�il erosion. Le�see shall notify City of repairs
to the Hangar that are ne�essary or apprapriate
C. Lessee shall immediately natify the Azrports Manager t�f any damage to the Hangar
and/or Airport, All damag� caused to the Hangar and/or Airpart by Lessee, its'
officers, employees9 agents and invitees;shall be repaired at Less�e's sole expense.
D. City shall maintain the plumbing and electrical systems, hangar doors, door
roliers and guides,
12. ALTE TIdNS TO HANGAR,
A, Lesse�shall not make or cause to be made any alterations or improvements to the
Hangar, including but not limited tt�, modification� or a�terations of the Hangar's
electrical installations c�r equipment, w�tho�t the praor written consent of the
Airports Manager. The Airport� Manager may impose restr°rcti�ns upon any
propased alterations or irnproVements: All such alterations or improvements shall
cc�mply with Airport Policy and aI1 appiicabie building, zoning and fire codes.
B. Upon the terminatian of this Agreement, at the sole option af the City: (1) the
alt�rataons or improvements shall became pr�perty +�f the City or (2)Lessee sha11
remove all alterations or improvements and return tke Hangar to the City in
substantially the same condition as the Hangar existed at the eommencement ofthis
Agreement.
Executive Hangar No. 6 Lease—Mark Legarra ppge 6
C. Any trade fixtures; equipment, and other property brought; �nstalled, c�r placed by
Lessee in or about the Hangar sha11 be and remain the property of Lessee except as
�therwise provided herein. Lessee sh�ll;have the right at any time during the term
hereof to remt�ve any ar all of its prc�p�rty, subject ta Lessee's oblggation to repair
all damage to the Hangar resulting frc�m such removal.
13, MECHANIC'S LIE1�S. Lessee shall keep the Hangar free fr�m any liens arising out of
any work performed,materials furnished; or obligations incurr�d by Lessee.
14. WASTE; QUIET COI'�DUCT. Lessee, its agents; and invitees sha11 not disturb, annay
or endanger other Airport Iessees, occupants and tenants, Airpart staff and its agents,
contractors, or subcc�ntractc�rs,nor cammit any waste or nuisance in or about the Hangar ar
Airport which interferes w�th the quiet enjoyment of the Airp�rt by any other Lessee;
accupant,tenant,c�r member of the public; Lessee shall not do anything,nor keep anything;
in or a�out th:e Hangar that will obstruct the public spaces available to c�ther hangar
occupants.
15. AIRC ' . FT, Lessee shall prc�vide tcr the Aiz-�orts Manager a copy of the FAA registration
for aircraft stc�red in the Hangar. Lessee sha11 notify the City in writing within ten {10)
calendar days c�f any sale of aircraft, change in ownership, subst�tution of aircraft or
addition of aircraft.Lessee shall l�eep all aperational aircraft maintained in accordance with
FAA crlteria and provide evidence of such maintenance to th� Airports Manager upon
request.
16. PROPELLER R(3TC�R BLADE BLAST. Lessee shall nt�t run the engines of any aircraft
with the propeller or rotor-blade blast directed in a mann�r that would cause harm to; or
jeapardize the safety of any person, aircraft, building or other facility or equipment at the
Airport.A11 engine run-ups sha11 be conducted c�nly �n runway run-up aprons:
17. AIRC FT MAINTENANCE AND PAIR.
Lessee shall nat engage c�r use the service of a person for hire in c4nnection with any
aircraft wc�rl�; mainten�nce or r�pair at or in the hangar. Lessee shalt nat perfarrn major
repair or maintenance work ar non-routine, nan-preventative maintenance an the aircraft
at �r in the hangar without prior written apprQval of Airports Manager. Airpc�rts Manager
may grant appraval to restore aircraft, build kit aircraft or perform specified major
maintenance activities in the hangar as long as Lessee is in compliance with applicable fire,
safety and building cades, These prr�visians sha11 not limit the aircraft c�wner or piZot from
performing routine, preventative maintenance on the aircraft as p�rmitted by the Federal
Aviation Reguiations; Under no circumstances sha11 Lessee perft�rm the following
1C$1V1t1�S:'
1. Application of flammable finishes (paint, dc�pe, chemical stripping epoxy, re�an,
etc.);
Execut�ve Hangar IVo. &Lease—Mark Legarra ppge 7
2, Making, breaking or rep�iring any fuel system connections or cc�mpanents
C'.+�TULLTE'iLCJT9 Ul]1VQiS' 11TIPr."?, L�T1�CSg e.CC.}�
3: Any fuelrng or refueling of the aircraft except as provided in Seetian 18,
4. Washing ar painting the aircraft;
5, Welding or storage of welding equipment, ar
6. Use open flames c�r�ther sources c�f ignition such as electrzc c�r fueled
heaters:
18, FUELING,
A; No fueling or de-fueling of aircraft may be canducted while any part of the aircraft
is in the Hangar:
S. Self-fueiing c�f aircraft is subject to the prior �vritten approval of the Aizports
Manager. All self-fizeling of aircraft sha11 be conducted in accordance with
applicable Federal Aviatic�n Administration (FAA) rules and regu�atzons and
comply at all times with a11 federal, St�te, and local laws, rules, regulatic�ns and
ordinances, ineluding the Uniform Fire Code,If applicabl�, Lessee sha11 remit fuel
flowage fees to the City in�he amount shc�wn on the City's then curremt Schedule
of Fees and Service Charges.
C. A fi�el storage system for the engine test bed sha11 meet all Federal, State,and local
fuel tank safety and enVirc�nmental regulations, requirements, and permits?
including the Spall Prevention Control and Countermeasures Plan.
19. RI+GHT TO INSPEC'T.
A, The City and its authorized c�fficers, agents, employees, valunteers, eantractors;
s�bcontxactors, anc�other representatives sha11 have the right to inspect the Hangar
fc�r any purpose, including but nt�t limited to the following:
i. To inspect the Hangar at reasonable intervals during regular business haurs
to determine whether Lessee has complied with or is ccrmplying with the
terms and candi�ions of this Agreement;
ri; Ta make repairs, additiQns or alterations as may be nec�ssary or convenient
for the conduct, safety, improvement or preservation of the Airport;
rii, For emergency purxrases;
Executive Hangar No. 6 tease—Mark Cegarra ppg�g
iv. In the exercise of City police pawer and
v. Inspection for compliance with fire safety cades.
B. Except for inspections for the purposes listed�n subsections 19.A.3. and 19.A.4:,
the Cit� sha11 provide Lessee written nc�tice at least forty-eight (48) hours in
advance of the inspectian. No inspectian by c�r on behalf af the City of the Hangar
shall be deemed tt�constitute an interference with Lessee's use of th�Hangar;
20. RULES GiULATIONS AND ACCESS +C(}I�TRClLS.
A: Less�e shall,at Lessee's sole ct�st and exp�nse; comply with all requirements of all
City, caunty; state and federal authorities no�v in force, or which may hereafter be
in force,pertaining to Lessee's �peratian and use of the Hangar and the Airpart.
B; Lessee shall faithfully observe and cornply with the Airport Qperating Ru1es,
Regulations and Minimum Standards and a11 city and county ordinances and state
and federal statutes and regulations, now in foree ar which may hereafter be in
force.
C: Lessee shall at a11 times comply with the Air�ac�rt's Storm Water Pollutit�n
Prevention Plan (SWPPP} and follow best management practices to prevent the
discharge or flc�w of non-storm water discharges, Lessee shall do all those things
required and requested by City in order for the Airpc�rt to maintain compliance with
the Airport's SWl'Pl'. If there are any fines irnposed upon the City fcar violatian af
the SWPPP caused by the action ar inaction af Lessee, its employ�es, agents; and
invitees;the City will pravide Lessee with written notice af such fines.Lessee shall
within thirty(30} days of receipt of said notice defend and indemnify the City for
such fine�.
D: City, co�ntys state or federal regulations or directives may restrict access to the
Arrport. Lessee shall, at Lessee's sole cost and expense, comply with all access
cantr4ls, procedures and directives in fc�rce, or which may hereafter be in force.
E: Lessee is subject to an annual fee as sh�wn in the �i�y's then current Sch�dule of
Fees and Serv#ce Charges for an Airport proximity card to aperate automatic
vehicle gates to acce�s the Airport.
21. HAZA ' OUS MATERIALS.
A. Lessee shall not store c�r use combustibl�chemicals or materials at or in the Hangar
except those chemicals or materials permitted by the Fire Department,Lessee shall
not store dispense or otherwise handle fuel compresse� gasses ar other hazardous
Executive Hangar No. 6 Lease—Mark Legarra Page 9
materials. Lessee shall prop�rly dispose of all wastes and hazardous rnaterials in a
�awful manner and in appropriate receptacles. Fr�r purposes of this paragraph,
hazardt�us materials include but are not limited to;
i. 5ubstances which are flammable, explosive, corrosive, radi�active toxic;
ii. Those asbestc�s-containing mat�rials de�ned and described in
Environmental Profection Agency Report Nt�. 56/5-$5-024 {3une l9$5}
whether or not friable, or�ny reiated�r successor report, c�r other
applicable government regulations defining or describing such materials;
iii: Pesticides as defined by Section 136(u} of FIFRA {7 U,S.C; Section 136) as
may be present zn soil or groundwater;
iv. "Hazardaus wastes" as defined in�ection 25117 c�f the California Health
and Safety Code, or a�a chemical that is kn�wn to the State of California
"tc� cause cancer ar repraductive toxicity" under the Safe I7rinking Water
and Toxic Enforcement Aetic�n of 19$6, California Health and Safety Code
sections 25�49.5 et. Seq.; and
v. Hazardous materials, substances or waste, or taxic materials, substances or
waste, as those terms or similar terms are defined by any ather federal, state
or lacal law, rule,regulation, ordinance or�rders:
22. FEDE QUI MENTS. This Lease shall be subordinate ta the provisions of any
existing or future agreement between the Lessor and the United States concerning the
operation or maintenance of the Airport, the executic�n of which has been or may be
required as a conditian 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
c�f the property under this Lease or otherwise diminish the commercial value of this Lease,
the Lessor shall nok be held liable therefor.However,if the c�mmercial value is appreciably
diminished, the Lessor and Lessee sha1l engage in gaad faith negotiations to determine a
fair and equitable adjustment tc�rentals and fees,
GENERAL CIVIL RIGHTS PROVISIt?NS
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
Nondiscriminatron Acts and Authorities to ensure that n�persan shall, on the grounds of race;color;
national origin(including limited English prc�ficiency), creed, sex(including sexual orientatic�n and
gender identity);age,or disability be excluded from participating in any activity canducted with or
benefiting from Federal assistance:
This provision is in addition to that required by Titie VI of the Civil Rights Act of 1964.
EXeGutiVe Hpngtrr NQ. 6 lepSe—MpCk LegpCrp Page 1U
If the Contractor transfers its obligation to another,the transferee is c�bligated in the sarne manner as
the Contractor.
fiitle VI List of Pertinent Nandiscriminatioan Acts and Authorities
During the perft�rmance ofthis contract,the Gcsntractor, for itself, its assignees, and successors it�
interest(hereinafter referi•ed to as the"Cantractor")agrees to comply with the follawing non-
drscrimiilation statutes and authorities, including btitt not timited t�:
• Title VI of the Civil Rights Act of 1964(4� USC § 2000d et seq., 78 stat. 252)(prohibits
discrimination on the basis of race,coic�r;national origin);
• 49 CFR part 21 (Non-discrimination in Federally-Assisted prograins of the Department of
Transportation—Effectuatian of Title VI of t�e Civil Rights Act of 1964);
f The Uniform Relocation Assistance and Real Praperiy Acquisition Policies Act of 197a,{42
US� § 45�1)(prohibits unfair treatmei7t of persons displaced or whose property has been
acc�uired becatase of Federal or Federal-aid programs and projects);
• Section 504 of the Rehabilitation Act of 1973 {29 USC § 794 etseq.);as amended(prohibits
discrimination c�n the basis of disability}; and 49 C�'R part 27(Nondiscrimi��ation on the Basis
of Disability in Programs or Activaties Receiving Federal Financiat Assistance);
• The Age Discrimination Act af 1975, as amended{42 USC § 5I01 et seq.)(prohibits
dis�rimination an the basis of age);
• Airport and Airway Improvement Act of 1982(49 USC § 47123), as amended(prohibits
discriminatian based Qn race,creed�colc�r,natianal origin,or sex);
• The Civit Rights Restoration Act of 1987{PL 100-259){broadened the scope,coverage and
applicability of Title VI of the Civi1 Rights AcY of 1954; the Age Discrimination Act of 19�5
and Section 504 oftlae Rehabilitation Act of 1973, by expanding the definition of the tel-tns
"pragrams or activities"to include all of ihe prt�grams oi�activities of the Federal-aid
recipients, sub-recipients ar�d contractors,whether such programs or activities are Federally
funded or not};
• Titles II and III of the Americans with I?isabilities Act of 1990(42 USC § �2101, et seq)
(prolai6it discritninat�on an the basis t�f disabiiity in the operati�n of public entaties,pubiic and
private transp�rtation systems,places c�f public accommodati�n;and certain testing entit�es}as
implemented by U.S. Department of Transportation regulatrons at 49 CFR parts 37 and 38;
* The Federal AviationAdministration's Nondiscrimznation statute{49 USC § 47123)(prohibits
discrimination on the basis of race,colar�national origin,and sex};
i Executive Qrder 12898,Federal Actions t�Address Environmental Justice in Minc�rity
Populations and Low-Income Populations(ensures nandiscrimination against minorily
populatic�ns by discouraging programs, poiicies;and actrvities with disproportionatety high and
adverse human health or environmental effects on minority and Iow-income populations);
* Executive Order 131b6,Improving Access to Services for Persans with Limited Engllsh
Proficiency, and resutting agency guidance;,national origin discrimination includes
discrimination because of Iimited English proficiency(LEPj. To ensure compliance with Title
VI,you must take reasonable steps to ensure that LEP persons have meaningful access ta yoaar
programs[70 Fed. Reg. 74087 {2005)];
� Title IX of the Educatian Amendments af 1972, as amended,which prohibits you from
discriminating because of sex in education prcrgrams or activities(20 USC � 1581; et seq).
Execut�ve Hangar No, 6 Lease— ark Legarra Page 11
Compiiaztce with Nondiscrimittation Requirements,
During the performance afthis contract,the Contractor,for itself; its assigneesg and successors in
interest(hereinafter referred to as the"Contractor"), agrees as follows;
1. Compiiance with Regulatians; The Contractar(hereinafter includes consultants)will
comply with the Titie VI List ofPertinent Ntrndiscriminatian Acts and Authorities,as they
may be arnended from time to time,which are herein inccarper�-ated by reference and rnade a
part of this contract.
2. Nandiscrimination: TI�e Contractar,with regard to the work performed by it during the
c�ntract;will not discriminate on the grounds of race,color,national c�rigin(ancluding
limited English proficiency), creed, sex(including sexual orientatian and gender identzty},
age, or disability in the selection and retention of subcontractors,including procurements
af materials and leases of equipment. The Contractor will n�t participate directly or
ind�rectly in the discrimination prohibited by the Nondiscrimination Acts and Authorities;
4nclusiing employment practices when the contract covers any a�tivity, project;or program
set ft�rtll in Appendix B �f 49 CFR part 21.
3: Solicitatians far Subcontracts,including Procurements of Materials and Equipment:
I1�al1 solicitati�ns;ezther by competitive bidding or negotiation rnade by the Cc�ntractor for
work to be performed under a subcantract5 including procurements of materiais, or leases
of equipment, each potential subcontractor or supplier will be notified by the Contractor of'
the cantractor's obligations under ti�is contract and the Nondiscrimination Acts and
Authorities on the grounds af race;color,or national origin.
4. Information and Reports: The Conti-actcar wiil provide a11 information and rept�rts
required by the Acts,the Regulations,and directives issued pursuant ther�to and will
perrnrt access to its books,records,accounts,otl7er sources of information,and its facilities
as may be detarmined by the Spansor or the Federal Aviation Administratic�n ta be
pertinent to ascertain compliance witla such Nandiscrim�nation Acts and Autharities and
instructic�ns. �Iliere any;infarmation required of a cantraetor is in the e�clusive possession
of ancather who fails ar refuses tc�fumxsh the infc�rmation,the Contractc�r will so certify to
the Sponsar or tlle Federal Aviation Administration,as apprapriate; and will set forth what
efforts it lias made to abtain the information.
5: Sanctions far Noncompliance: In the event'ofa Contractar's noncompliance wzth the
non-discrimination provisions ofthis contract;the Sponsor wi11 impose such contract
sanctions as it or the F�deral Aviation Administration may determine to be appropriate,
including, but not limited to:
a. Withholding�ayments to the Cantractor under the contract until the Cantractor
cornpiies;and/or
b. Cancelling,terminating; or suspending a contract, in whc�le or in part.
6. Incorporatic�n of Provisions: The Contractor wi11 include tlie provisians 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
theretca. The Contractor will taka action with respect to any subcontract or pracurement as
the Sponsar or t11e Fed�ral Aviatit�n Administration may direct as a means of enforcing
such prc�visions including sanctians for noncomplianee. Provided,that ifthe Contractor
becames ir�volved in,or is threatened with litigatioll by a subcontraetor,or supplier
because of such direction,the Contractor ma re uest the S onsor to enter inta an
Exeeutive Hangar No. 6 Eease—Mark Legarra Page 12
litigatic�n to protect the interests�f the Sponsvz-. In additian,the Contractor may request
the United States to enter into the litigation to protect the interests of the United States:
CLAUSES F(?R TRANSFER t�F REAL PROPERTY ACQUIRED QR 1MPR(�VEI)UNDER THE
AIRPfJRT IMF"ROVEMENT PR�GRAM
A. The Lessee for himself/herself;hls/her heirs, personal representatives, successors in
interest,�nd assigns; as a part af the consideration hereof,does hereby cavenant and agree
as a covenailt running with the Iand that:
1. In tlie event facilities are cflnstructed,maintained,or otherwise operated on the
property desc�-ibed in this lease fc�r a purpt�se for which a Federal Aviatron
Administration activity, facility, or program is extended or for anotherpurpose
involving the provision of similar services or benefits, the lessee will maintain and
operate such facilities and sel�vices in campliance with all req�irements imposed
by the Nondiscrirnination Acts agld Regulations listed in the Tit1e VI List af
Pertine�t Nandiscrimination Acts and Atathorities(as may be atnended)such that
no person on the grounds of race,colcrr, or national arigin,will be e�ccluded from
participation in,denied the benefits of,or be otherwise subjected ta discrimination
in the use of said facilities:
B. With respect to licenses; leases,permits,etc.,in the event of breach of any c�f the above
Nondiscrimination ccavenants; City of Recicling wi11 have t11e right to terminate the lease
and to enter,i:e-enter, and repossess said lands and facilities thereon, and hold the same as
if the Zease had never been made or issued.
C. With xespect to a deed, in the event of breach of any of the above Nondiscr�minati�n
covenants,the Gity nf Rerl�litig wilt 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 becoi�ne the absolute properiy of the C'aty of Reclding and its assiga�s.
23: DAMAGE DE�TRITCTION.
A. If the Hangar is damaged or destroyed by fire, flood, earthquake, the elem�nts;
Casualty, war, ric�t, public disorder; ar any other cause nc�t the fault of Lessee, its
officers, empl�yees, agents or invitees, so as to render the entire Hangar unusable
for Lessee's Q�erations, the City shall have the optian ta either repair the H�ngar
; or t�rminate this Agreement, In the event that the City elects to terminate this
Agreement, rent for the month in which the Hangar is damaged shall be prarated
and the unearned portion ref�nded to Lessee. In the event the City elects to repalr
the Hangar,the City sha11 endeavt�r to pravide to Lessee anather acceptable Hangar,
an�1 this Agreement sha11 remain in fu11 force and effect except that the City and
Lessee shall negotiate in ga�d faith the amount �rf the rent to be paid by Lessee
during the time the City repairs the Hangar:
B. If the Premises are partially damaged or renttered partially unusable by fire, fload,
earthquake;the elements,casualty; war,riot,public disorder;t�r any other cause nat
the fault of Lessee, its officers, employees, agents or invitees, Lessee shall give the
City written notice of such damage, and if the City does not commence repairs
within thirty (3�) calendar days from the date of the notice, Lessee may elect t�
Execut'ive Hangar No. 6 Lease—Mark Legdrra Fage 13
terminate this Agreem�nt by giving written notice to the City of Lessee's election
to terminate this Agreement. If Lessee e�ects not to terminate this Agreement,this
Agreetnent shall continue in full force and effect except that the damage to the
Premis�s �haii be repaired by and at the expense af the City, and until such repair
is substantiaily completed so that full use and occupancy of the Premises by Lessee
�s possible, the rent shall be apportioned according to the �ortian of the Premises
which remains useable,If such repairs are not campleted within c�ne hundred eighty
(l&0)calendar days from the date c�f the Lessee' s notice of the damage;either party
may terminate this Agreement by givang the other party written notice within ten
(10)days of the expiration of the ane hundred e�ghty(18Q)day period ofthe party's
election to terminate this Agreement:
24. ASSIGNMENT.Lessee sha11 not voluntarily assign,encumber,or s�blet its interest in this
Agreement or in the Hangar, ar a11ow any oth�r persan ar entity (except its authorized
representatives) to occupy or use any or ali part(s} of the Hangar; without first obtaining
the City`s prior written consent,which shall nc�t be unreasanably withheld.Any assignment
ar encumbrance withaut the City° s consent shall be vaidable and, at the sa�e election of
the City, sha11 constitute a default Qf this Agreement, No c�nsent to any assignment or
encurnbrance sha11 constitute a further waiver of the provisions of this section:
25. DEFAULT.
A; The occurrence of any af the follawing sha11 constitute a material breach or default
of this Agreement by Lessee:
l. Storage af an aperatic�nal aircraft within the Hangar that is nat prc�perly
registered and insured,
2. Failure tQ pay any payment due under this Agreement when due,if the failure
to pay cc�ntinues for five(5)calendar days after notice af the failure has been
�1V�11 tb L�SS��;
3-. Failure to perform any other provision of this Agreement if the failure ta
perform is nc�t cured withan thirty{30)caiendar days after notice of the failure
has been gaven to Lessee. If the bxeach or defau�t cannot be reasonably cured
within thirty (30) calendar days, Lessee shall not be in breach �r defauit of
this Agreement if Lessee commences to cure the breach c�r default within the
thirty {30) calendar day periad and diligently and in good faith continues to
cure the default:
4. Failure to ma°rntain current licenses.
5. Intentionally supplying the City with false or misleading information or misrepresenting
any material fact an documents ar in statements to or before the City and it� emp�oyees:
Executive Hangar No, 6 Lease—Mark Legarra Page 14
B. Natices given under this sectlon shall specify the alleged breach or default; and sha11
demand that Lessee perform the prQvasions of this Agreement or pay the payment that is in
arrears, as the case may be, within the applicable tzme period, or this Agreement is
terminated. Lessee shall cure said breach or default no later than thirty{30) calendar days
after City delivers notice of the d�fault pursuant tt� Section 31, No such notice sha11 be
deemed a terminatic�n af this Agreemet�t Qr a revocatlon af the Permit unless the Czty sa
elect� in the notice:
C. The City, at any time after Lessee commits a breach or d�fault of this Agreement,can cure
the breach or default at Lessee's cost. If the City, at any time,by reason of Lessee`5 breach
or default, pays any sum c�r does �ny act that requires the payment o�'any s�un, the sum
paid by the City shall be due imrnediately from Lessee to the City at the time the sum is
paid, and if paid at a later date sha11 be subject to late fees anct penalty charges as shc�wn in
the City' s then current Schedule of�'ees 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:
26. CITY' S MEDiES FOR DEFAULT.
A: Upc�n the occurrence of a defauit that is nat timely cured by Lessee, the City may
immediately terminate this Agreement and recQver pc�ssession of the Hangar.Qnce
the City has terminated this Agreetnent, Lessee shall immediately surrender the
Hangar tc� the City. (Jn termination of this Agreement, the City may recaver from
Lessee all of the fo�ic�wing:
1: The w�rth c�f any unpaid rent that had been earnecl at the time af the
terminafzan,to be computed by allowing interest at the maximum amount of
Interest permitted by law;
2, Any other amount necessary to compensate the City for aIl the detriment
praximately caused by Lessee's failure to perform obligations under this
Agre�ment, including brokerage cc�mmissions and advertising expenses,
expenses of remodel�ng the Hangar far a new Lessee (whether for the same
ar a different use}and any special concessions made to obtain a new Lessee;
and
3. Any oth�r amounts`in addition tc�or in lieu of those listed above,that may be
permitted by applicable law,
B. Upon the occurrence of a default that is not timely cured by Lessee, the City shall
have the remedy described in Civi1 Code section 1951.4,which provides that when
a Lessee has the rrght tc� sublet or ass�gn (subject only to reasonable limrtat�ans),
the City may continue the iease in effect after the Lessee's breach and abandonment
and recover rent as rt become due. Accordingly, if the City does nt�t elect to
terminate this Agreement an accc��nt of any default by Lessee,the City may enforce
ai� of the City's rights and remedies under this Agreement including the right tQ
re�c�ver ali rent as it i�ecc�rnes due,
Executive Hangar No. 6 Lease—Mark tegarra ppg+��5
27, SU N1�ER OF HANGAR.
A. On the expiration; eancellatian ar termination of this Agreement, Lessee shall
surrender possession af the Hangar to the City and return the empty Hangar in
substantgally the same conditian as the Hangar existed at the commencement�f the
Agreement, ordinary wear and tear excepted; The Hangar shall be retu�ned to City
broc�m elean and free of debris,and in good operating order, condition and repair.
B. Lessee shall remove all perst�nal property and perfarm any and al1 necessary
restoratian made necessary by the removal of any personal prope�ty on or before
the date of expiration,canceliation or termination of this Agreement. City may elect
to retain or disp�se of in any mann�r any alterations or L�ssee's personal property
that Lessee does not remove fram the Hang�rr on the expiration, cancellation or
terminatic�n of the term of this Agreement as allowed or required by this Agreement,
by gaving at least five (5} ca�endar days' notice to Lessee. Title t� any such
alterations or Lessee's personal property that City elects ta retain ar dispose of shall
vest in City c�n expiration of the five (5} calendar day period. Lessee waives all
claims against City for any damage to Lessee resulting from City's retention or
cl�sposition of any such alterations or Lessee's personal property. Lesse� shall be
liabl�t� City for City's costs for storing, removing,and d'rsposing of any alteration
or Less�e's personal property.
C. Lessee sha11 reimburse the City fQr any darnage done t� the Hangar caused by
Lessee's use or actians neglect or omissions or operatic�ns. Damage done to the
Hangar shall include, but not be limited ta, intesic�r and/�r eXterior wa11s, han�ar
doors and floors. City sha11 �rovide written notice to Lessee of the amount due to
City for damage to the Hangar or Airport which shall be due and payable
immediately from Lessee.
D. If Lessee fails to surrender the Hangar tc� City on expiration, cancellatic�n or
termanatic�n as required by this sect�on, Lessee shall hold City harmless from all
damages resulting fram Lessee's failure to surrender the Hangar;inciuding,without
limitatian, ciaims made by a succeeding Lessee resulting from Lessee's failure to
surrender the Hangar.
28. ADMINIST TION BY CITY. Whenever Lessee is required to secure the appraval or
consent of the City purs�ant to this Agreement; the City shall mean the Airparts Manager.
29, VOLUNTEER ASSISTANCE. Under no circumstances wi11 Les�ee u5e City employees
whom are on duty to perform work at the Hangar. Under no circumstances will Lessee use
City employees whom are off duty to perform work at the Hangar if the nature af the work
is substantia�ly similar to the employee s regular work duties for the City.
Executive Hpngpr lVo. 6 Lease—Mdrk Legdrrp Page 16
�a. I�vTE Ta°r�oN vENu�;a�v�aTTo ��FEE�.
A. This Agreement shall be deemed to have been entered into in Redding; California:
All questions regarding the validity, interpretat�on Qr performance of any of its
terms or of any rights or obligataQns of the parties to this Agreement shall be
governed by California law, and any action brought by either party t� enforce any
af the terms of this Agreement sha11 be filed in the Shasta County Superior Court:
If�ny claim, at law or atherwise, is made by either party ta this Agreem�nt; the
prevailing party shall be entitled to its costs and reasonable attoxneys' fees:
B. This document eontains the entire agreement between the �aarties and supersedes
whatever c�ral or written understanding each may have hact prior to the exec�tion of
this Agreement. This Agr�ement shall nat be altered, amended or modified except
by a urriting signed by City and Lessee. Na verbal agreement or canversation with
any official, officer, agent or emplc�yee c�f City, either before, dtxt•ing c�r after the
execution c�f this Agreement, sha11 affect or modify any of the terms or conditions
contained in this Agreement,
C. If any portion of this Agreement or the application therec�f to any person or
circumstance shall be invalid or unenforceab�e to any extent,the remainder of thzs
Agreement shall not be affected tihereby and sha11 be enfcrrced to the greatest extent
permitted by law.
D, The headings in this Agreement are �nserted for convenience only and shall not
constitute a part hereof. A waiver af any party of any provzsion or a breach af this
Agreement must be pravided in writing, and shall n�t be construed as a waiver of
any c�ther pr�visic�n or any succeeding breach of the sazne or any t�ther pravisions
herein.
E; Each party heretc� deciares and represents that in entering into this Agreement, it
has relied and is relying salely upon its own judgment,belief and knowledge of the
nature, extent; effect and cansequence relating theret�. Each party further deciares
and represents that this Agreem�nt is made without reliance upon any statement or
representatian nat contained her�in of any other party or any representative, agent
or attorney of the other party; The parties agree that they are aware that they have
the right to be advised by c€�unsel with respect to the negatiations, terms, and
conditions of this Agreement and th�t the decision of whether ar not to seek the
advice t�f cc�unsel with respect to this Agreement is a decision which is the sole
responsibility of each of the parties. Accardingly, no party shall be deemed to have
been the drafter hereof, and the principle o£Iaw s�t forth in Civil Code § 1654 that
ce�ntracts are construed against the drafter shall not apply:
FX�GUtIVE /'/pt?t,�Q'/'NO. �LEQISe—�C1C�f�$t„Jp(Cp �p�C'17
31. NOTICES,
A. A11 notices; requests, demands and other communications hereunder shall be
deemed g�ven only if in writing signed by an authorized representative�f the sender
and delivered by facsimile,with a hard copy mailed first class, postage prepaid, or
when sent by a courier c�r an express service guaranteeing avemight delivery to the
receiving party, addressed to the respective parties as follows:
TO CITY: T+� LESSEE;
City of Redding Mark Legarra(dba Legarra Enterprises)
Attn.: Airports Manager Attn: Mari�Legarra
6751 Woodr�xm Circle#240 3720 Flight Ave
Redding, CA 96002 Redding, CA 960�2
B: Either party may change its address for the purposes of this par�graph by giving
written natice of such change to the other party in the manner provided in this
Section,
C. Notice shall be deemed effective upon: (1) personal service c�r (2) two calendar
days after mailing or transmissit�n by facsimile, whichever is earlier.
32: BINDING ON HEIRS AND SUCCESSORS� This Agreement shall be binding on and
shall �nure to the benefit of the heirs, executors� administrators, success�rs and assigns of
the parties hereta,but nothing in this Section shall be construed as a consent by City to any
assignment of this Agreetnent or any interest in the Agreement by Lessee except as
provr�ted in Section 24 of this Agreement.
33. TIME C!F ESSENCE. Titne is of the essence of this Agreement and Qf each and every
provision therein,
34. AITTHQRITY T{3 +Ct?NT CT. The City Manager or his designee shall have authority
to execute onbeh�lf af the City any am�ndment to this Agreement which does not decrease
the amount of compensatian due to City or otherwise substantially change the terms
provid�d herein. The City Manager, or his designee, shall likewise have the right to
terminate this Agreement either due ta defa�lt ar upc�n mutual agre�ment Qf the Parties,
35: DATE t}F AG EMENT. The date of this Agreement shall be the date it is �igned by
the City.
ExeCutive Hangpr No. 6 tease—Mark tegarra Ppge 38
IN WITNES�WHE QF, �ity and Lessee have executed this Agreement on the days and year
set forth below:
CITY�F DDING
Date: ,2024
TENESSA AUDETTE,Mayor
ATTEST: APF'R�DVED AS TQ FtJ .
CH STIAN CURTIS
City Attorney
SHA ENE TTPTQN, City Clerk By;
LESSEE
..��
__..�_______._
Date: °�� �`� v-- ,2Q24 � �-~�µr~�� ��
�g;�°� By: MA LE
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