HomeMy WebLinkAbout _ 4.2(d)--Approve Lease Agreement � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: May 7,2024 FROM: Steve Bade, Assistant City
ITElVI NO. 4.2(d) Manager
***APPROVED BY***
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sbade@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.2(d)--Approve Lease Agreement with Aircraft Service Specialists for Executive
Han ar No. 1 at the Reddin Re ional Ai ort
Recommendation
Approve and authorize the following:
(1) Approve a Lease Agreement with Aircraft Service Specialists for Executive Hangar No.
1 at the Redding Regional Airport for a five-year term, at $911 per month, adjusted
annually based on the consumer price index, with the total five year estimated value of
the lease to be $56,000, assuming target inflation of two percent;
(2} Authorize the Mayor to sign and execute the agreement; and
(3) Find that the action is categorically exempt from review under the California
Environmental Quality Act,pursuant to Section 15301 —Existing Facilities.
Fiscal Impact
The lease agreement is for a five-year term with rental payments in an amount established in the
City of Redding (City) Master Fee Schedule. The Fiscal Year 2023-24 montl�ly rate for an
executive hangar at the Redding Regional Airport (RDD) is $911 per month adjusted annually
based on the consumer price index. The total value of the lease over the five-year term is
estimated at $56,000, assuming target inflation of two percent.
Alte�native Action
City Council may choose nat to approve the lease agreement and provide alternative direction to
staff.
Report to Redding City Council May 1, 2024
Re: 4.2(d)--Approve Lease Agreement Page 2
Background/flnalysis
The City is the owner and operator of the RDD which provides services for general aviation and
scheduled commercial air service traffic. In addition to services provided by fixed base
operators, RDD 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 obtain 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 City's Master Fee Schedule.
Aircraft Service Specialists is the current tenant of Executive Hangar No. 1 at RDD. The existing
lease agreement and operating permit with Aircraft Service Specialists reached its term in
August 2022 and has continued as a month-to-month agreement. This new agreement sets a term
for the hangar occupancy and eommercial operating permit and ties rental payments to the rate as
established in the Master Fee Schedule. Under the new commercial operating permit, Aircraft
Service Specialists will be permitted to operate an engine rebuilding and restoration business
within Executive Hangar No. 1 and provide aerial fire spotting based out of RDD for lumber
companies.
In accordance with Government Code section 54221(�(1)(0), land that is owned by a California
public use airport on which residential uses are prohibited pursuant to the Federal Aviation
Administration Order 5190.6B are declared exempt surplus land.
Envi�^onmental Review
Staff has determined that lease agreement approval is categorically exempt from review under
the California Environmental Quality Act, 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 result in a negligible expansion of use, as
Aireraft Serviee Specialists is the current tenant and will continue to provide services in
Executive Hangar No. L The lease area is located within a built environment, and the action has
no potential to have a significant effect on the environment.
Council Pr�ioNity/City Manager Goals
• 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
Aircraft Service Specialists New Lease
NOE Lease Agreement Executive Hangar No. 1
LEASE AGREEMENT WITH AIRCRAFT SERVICE
SPECIALISTS - EXECUTIVE HANGAR NO 1
THIS LEASE AGREEMENT is made at Redding, California, by and between the City of
Redding("City"), a municipal corporation and Aircraft Service Specialists ("Lessee"), an
Individual.
WHEREAS the City owns and operates the Redding Regional Airport("Airport").
WHEREAS, Lessee desires to lease and occupy Executive Hangar No. 1 located at 3720 Flight
Avenue for the purpose of aircraft storage and carrying on commercial activities at the Redding
Regional Airport.
NOW, TAEREFORE,the parties covenant and agree, for good consideration hereby
Acknowledged, as follows:
l. HANGAR. Lessee leases from the City and the City leases to Lessee on the terms and
conditions contained in this Agreement, the hangar known as Executive Hangar No. 1
("Hangar") for aircraft storage and to conduct commercial activities.
2. TERM.
A. The initial terrn of this Agreement shall be for five (5) years commencing on May
l, 2024 and expiring April 30, 2029.
B. Either party may give written notice pursuant to Section 31 to terminate this Lease
with ninety(90) calendar days written notice.
3. USE.
A. The Hangar is leased to Lessee for the sole purpose of aircraft storage, and aircraft
inspection and maintenance. Lessee shall not use or permit the Hangar to be used
for any other purpose without the prior written consent of the City. Airports
Manager's approval to build, rebuild, and restore aircraft engines and perform
specified major maintenance activities in the Hangar is subject to Lessee's
compliance with all applicable federal, state, and local fire, safety, and building
codes and the Airport's Storm Water Pollution Prevention Plan.
B. All operational aircraft stored in the Hangar must be insured and registered with
The Federal Aviation Administration (FAA). The certificate of aircraft insurance
must be approved by the City and a current valid copy of the Certificate of Aircraft
Registration(AC Form 8050-3) must be on file with the Airports Manager.
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 2
C. Lessee shall have the right in common with other users of the Airport to the general
use of all public Airport facilities, and improvements which are not by right the
exclusive use of other users of the Airport or subject to approval by the Airports
Manager, including all necessary landing area appurtenances including approach
areas, runways, taxiways, aprons, aircraft, and automobile parking areas or other
public facilities at the Airport. The rights herein extended to Lessee shall include
the right to land take off load and unload persons and personal property from
aircraft. Lessee shall not store anything outside of the Hangar without the prior
written approval of the Airports Manager.
D. Nothing contained in this Agreement shall be construed as entitling Lessee to the
exclusive use of any services, facilities, or property rights of any nature at the
Airport, except the use of the Hangar for the purpose and approved use set forth in
this Agreement.
E. Lessee shall not engage in the sale or provision of alcoholic beverages at the Hangar
or Airport without the prior written consent of the City.
4. PERMIT FOR COMMERCIAL ACTIVITIES. Pursuant to Redding Municipal Code
Section 3.08.030 City hereby grants to Lessee a non-exclusive Permit far Commercial
Activities ("Permit") to operate an aircraft engine rebuilding and restoration business
within Executive Hangar#1 and provide aerial fire spotting for lumber companies from the
Redding Regional Airport. A breach or default in the terms of this Agreement shall
constitute a violation of the terms of the Perrnit.
5. RENTAL PAYMENTS.Lessee shall pay Lessor the monthly fee listed on the Airport Fee
Schedule at the rate established for Executive Hangar No. l, as determined by resolution
of the Redding City Council.
6. UTILITIES. City will provide electricity water and sewer to the Hangax. Lessee
acknowledges that the Airport provides limited electric utility service to the Hangar. Lessee
hereby expressly waives any and all claims and holds the City harmless for damages arising
or resulting from failure or interruption of any utility services furnished by the City to
Lessee, including but not limited to, stoppages in electrical energy.
7. 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. Lessee
shall promptly pay before delinquency any taxes and/or special assessments assessed
against the Hangar 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 Hangar. On
demand from the City, Lessee shall furnish the City with satisfactory evidence of these
payments.
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 3
8. 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 attorney's 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 Hangar 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.
9. INSURANCE.
A. Unless modified in writing by City' s Risk Manager, Lessee shall maintain the
following insurance during the duration of this Agreement.
i. Insurance Services Office form number CG-0001, commercial General
Liability Insurance, in an amount not less than$1,000,000 per occurrence and
$2,000,000 general aggregate for bodily injury, personal injury and property
damage;
ii. Insurance Services Office form number CA- 0001 (Ed. 1/87}, Comprehensive
Automobile Liability Insurance,which provides for total limits of not less than
$1,000,000 combined single limits per accident applicable to all owned, non-
owned and hired vehicles.
iii. 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.
iv. 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. Any deductibles or self-insured retentions must be declared to and approved by
City. At the option of the City, either the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its elected officials,
officers, employees, agents and volunteers, or the Lessee shall procure a bond
guaranteeing payment of losses and related investigations, claims administration
and defense expenses.
C. The general and auto liability policies are to contain or be endorsed to contain, the
following provisions:
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 4
i. City, its elected officials, officers, employees, and agent 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 Lessee. The coverage shall
contain no special limitations on the scope of protection afforded to City, its
elected officials, officers, employees, agents and volunteers.
ii. The insurance coverage of Lessee shall be primary insurance as respects City,
its elected officials,officers,employees,agents and volunteers. Any insurance
or self-insurance maintained by City, its elected officials, officers, employees,
agents and volunteers, shall be in excess of Lessee' s insurance and shall not
contribute with it.
iii. Coverage shall state that the insurance of Lessee 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. Each insurance policy required by this Agreement shall be endorsed to state that
coverage shall not be canceled except after thirty (30) calendar days' prior written
notice has been given to City. In addition, Lessee agrees that it shall not reduce its
coverage or limits on any such policy except after thirty (30) calendar days' prior
written notice has been given to City.
E. Insurance is to be placed with insurers with a current A.M. Best' s rating af no less
than A-VII.
F. Lessee shall designate the City of Redding as a Certificate Holder of the insurance.
Lessee shall furnish City with certificates of insurance and original endorsements
effecting the coverages required by this clause. Certificates and endorsements shall
be furnished to: Risk Management Department, City of Redding, 777 Cypress
Avenue,Redding, CA 96001. The certificates and endorsements for each insurance
policy are to be signed by a person authorized by the insurer to bind coverage on
its behal£ All endorsements are to be received and approved by the City' s Risk
Manager prior to occupation of the Premises and commencement of activities.
G. The types of coverage, limits of liability, provisions and endorsements set forth in
this section may apply to Lessee' s contractor/subcontractor, if any.
H. The requirements as to the types and limits of insurance coverage to be maintained
by Lessee as required by this Section, and any approval of said insurance by City,
are not intended to and wi11 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.
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page S
10. RELEASE AND DISCHARGE. City shall not be responsible for, and assumes no
liability arising from, damage or loss to Lessee s property including, without limitation,
aircraft and engine parts. Lessee hereby releases and discharges the City from all claims
and demands by Lessee for loss of or damage to Lessee's property. All hangar contents
and aircraft are stored solely at Lessee's risk.
11. MAINTENANCE AND REPAIR.
A. Lessee shall, at Lessee's sole cost and expense, maintain the Hangar in a safe and
attractive condition and in the same condition as received at the beginning of the
term, ordinary wear and tear excepted.
B. 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 Hangar in good repair and appearance. Lessee's maintenance of
the Hangar shall include periodic sweeping of the floor and door tracks,pest control
and protecting the floor from fuel and oil erosion. Lessee shall notify City of repairs
to the Hangar that are necessary or appropriate
C. Lessee shall immediately notify the Airports Manager of any damage to the Hangar
and/or Airport. All damage caused to the Hangar and/or Airport by Lessee, its
officers, employees, agents and invitees, shall be repaired at Lessee's sole expense.
D. City shall maintain the plumbing and electrical systems, hangar doors, door
rollers and guides.
12. ALTERATIONS TO HANGAR.
A. Lessee shall not make or cause to be made any alterations or improvements to the
Hangar, including but not limited to, modifications or alterations of the Hangar's
electrical installations or equipment, without the prior written consent of the ,
Airports Manager. The Airports Manager may impose restrictions upon any
proposed alterations or improvements. All such alterations or improvements shall
comply with Airport Policy and all applicable building, zoning and fire codes.
B. Upon the termination of this Agreement, at the sole option of the City: (1) the
alterations or improvements shall become property of the City or (2) Lessee shall
remove all alterations or improvements and return the Hangar to the City in
substantially the same condition as the Hangar existed at the commencement of this
Agreement.
C. Any trade fixtures, equipment, and other property brought, installed, or placed by
Lessee in or about the Hangar shall be and remain the property of Lessee except as
otherwise provided herein. Lessee shall have the right at any time during the term
Executive Hangar No. 1 Lease—Aircraft Service Speciatists Page 6
hereof to remove any or all of its property, subject to Lessee's obligation to repair
all damage to the Hangar resulting from such removal.
13. MECHANIC'S LIENS. Lessee shall keep the Hangar free from any liens arising out of
any work performed, materials furnished, or obligations incurred by Lessee.
14. WASTE; QUIET CONDUCT. Lessee, its agents, and invitees shall not disturb, annoy
or endanger other Airport lessees, occupants and tenants, Airport staff and its agents,
contractors, or subcontractors,nor commit any waste or nuisance in or about the Hangar or
Airport which interferes with the quiet enjoyment of the Airport by any other Lessee,
occupant,tenant, ar member of the public. Lessee shall not do anything,nor keep anything,
in or about the Hangar that will obstruct the public spaces available to other hangar
occupants.
15. AIRCRAFT. Lessee shall provide to the Airports Manager a copy of the FAA registration
for aircraft stored in the Hangar. Lessee shall notify the City in writing within ten (10)
calendar days of any sale of aircraft, change in ownership, substitution of aircraft or
addition of aircraft. Lessee shall keep all operational aircraft maintained in accordance with
FAA criteria and provide evidence of such maintenance to the Airports Manager upon
request.
16. PROPELLER ROTOR BLADE BLAST. Lessee shall not run the engines of any aircraft
with the propeller or rotor-blade blast directed in a manner that would cause harm to, or
jeopardize the safety of any person, aircraft, building or other facility or equipment at the
Airport. All engine run-ups shall be conducted only on runway run-up aprons.
17. AIRCRAFT MAINTENANCE AND REPAIR.
Lessee shall not engage or use the service of a person for hire in connection with any
aircraft work, maintenance or repair at or in the hangar. Lessee shall not perform major
repair or maintenance work or non-routine, non-preventative maintenance on the aircraft
at or in the hangar without prior written approval of Airports Manager. Airports Manager
may grant approval to restore aircraft, build kit aircraft or perfarm specified major
maintenance activities in the hangar as long as Lessee is in compliance with applicable fire,
safety and building codes. These provisions shall not limit the aircraft owner or pilot from
performing routine, preventative maintenance on the aircraft as permitted by the Federal
Aviation Regulations. Under no circumstances shall Lessee perform the following
activities:
l. Application of flammable finishes (paint, dope, chemical stripping epoxy, resin,
etc.);
2. Making, breaking or repairing any fuel system connections or components
carburetor, valves, lines, tanks, etc.);
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 7
3. Any fueling or refueling of the aircraft except as provided in Section 18;
4. Washing or painting the aircraft;
5. Welding or storage of welding equipment, or
6. Use open flames or other sources of ignition such as electric or fueled
heaters.
18. FUELING.
A. No fueling or de-fueling of aircraft may be conducted while any part of the aircraft
is in the Hangar.
B. Self-fueling of aircraft is subject to the prior written approval of the Airports
Manager. All self-fueling of aircraft shall be conducted in accordance with ,
applicable Federal Aviation Administration (FAA) rules and regulations and
comply at all times with all federal, State, and local laws, rules, regulations and
ordinances, including the Uniform Fire Code. If applicable, Lessee shall remit fuel
flowage fees to the City in the amount shown on the City's then current Schedule
of Fees and Service Charges.
C. A fuel storage system for the engine test bed shall meet all Federal, State, and local
fuel tank safety and environmental regulations, requirements, and permits,
including the Spill Prevention Control and Countermeasures Plan.
19. RIGHT TO INSPECT.
A. The City and its authorized officers, agents, employees, volunteers, contractors,
subcontractors, and other representatives shall have the right to inspect the Hangar
for any purpose, including but not limited to the following:
i. To inspect the Hangar at reasonable intervals during regular business hours
to determine whether Lessee has complied with or is complying with the
terms 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;
iv. In the exercise of City police power and
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 8
v. Inspection for compliance with fire safety codes.
B. Except for inspections for the purposes listed in subsections 19. A.3. and 19. A.4.,
the City shall provide Lessee written notice at least forty-eight (48) hours in
advance of the inspection. No inspection by or on behalf of the City of the Hangar
shall be deemed to constitute an interference with Lessee's use of the Hangar.
20. RULES REGULATIONS AND ACCESS CONTROLS.
A. Lessee shall, at Lessee's sole cost and expense, comply with all requirements of all
City, county, state and federal authorities now in force, or which may hereafter be
in farce, pertaining to Lessee's operation and use of the Hangar and the Airport.
B. Lessee shall faithfully observe and comply with the Airport Operating Rules,
Regulations and Minimum Standards and all city and county ordinances and state
and federal statutes and regulations; now in force or which may hereafter be in
force.
C. Lessee shall at all times comply with the Airport's Storm Water Pollution
Prevention Plan (SWPPP) and follow best management practices to prevent the
discharge or flow of non-storm water discharges. Lessee shall do all those things
required and requested by City in order for the Airport to maintain compliance with
the Airport's SWPPP. If there are any fines imposed upon the City for violation of
the SWPPP caused by the action or inaction of Lessee, its employees, agents, and
invitees,the City will provide Lessee with written notice of such fines. Lessee shall
within thirty (30) days of receipt of said notice defend and indemnify the City far
such fines.
D. City, county, state or federal regulations or directives may restrict access to the
Airport. Lessee shall, at Lessee's sole cost and expense, comply with all access
controls, procedures and directives in force, or which may hereafter be in force.
E. Lessee is subject to an annual fee as shown in the City's then current Schedule of
Fees and Service Charges for an Airport proximity card to operate automatic
vehicle gates to access the Airport.
21. HAZARDOUS MATERIALS.
A. Lessee shall not store or use combustible 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 compressed gasses or other hazardous
materials. Lessee shall properly dispose of all wastes and hazardous materials in a
lawful manner and in appropriate receptacles. For purposes of this paragraph,
hazardous materials include but are not limited to:
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 9
i. Substances which are flammable, explosive, corrosive, radioactive toxic;
ii. 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 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 in soil or groundwater;
iv. "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 Water and
Toxic Enforcement Action of 1986, California Health and Safety Code
sections 25249.5 et. Seq.; and
v. Hazardous materials, substances or waste, or toxic materials, substances ar
waste, as those terms or similar terms are defined by any other federal, state
or local law, rule, regulation, ordinance or orders.
22. FEDERAL REQUIREMENTS. 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.
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 origin(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.
Title VI List of Pertinent Nondiscrimination Acts and Authorities
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 10
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:
• 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
Transpoi�tation—Effectuation of Title VI of the Civil Rights Act of 1964);
• The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 19�0,(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 19'73, 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 transportation 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 nondiscrimination against minority
populations by discouraging programs,policies,and activities with disproportionately high and
adverse human health or environmental effects on minority and low-incoine 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 (2d05)];
• 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:
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:
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page.21
1. Compliance with Regulations: The Contractor(hei•einafter 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 21.
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 contract 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, other 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 tmder 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 tl�e 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 litigation by a subcontractor,or 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.
Executive Hangar No. 2 Lease—Aircraft Service Specialists Page 12
CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER TBE
AIRPORT IMPROVEMENT PROGRAM
A. The�essee 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
properly described in this lease for a purpose for which a Federal Aviation
Administration activity, facility,or program is extended or for another purpose
involving the provision of similar services or benefits, the lessee will 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 ojRed�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.
C. With respect to a deed, in the event of breach of any of the above Nondiscrimination
covenants,the City of Reciding 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.
23. DAMAGE DESTRUCTION.
A. If the Hangar is 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, employees, agents or invitees, so as to render the entire Hangar unusable
for Lessee's operations, the City shall have the option to either repair the Hangar
or terminate 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 prorated
and the unearned portion refunded to Lessee. In the event the City elects to repair
the Hangar,the City shall endeavor to provide to Lessee another acceptable Hangar,
and this Agreement shall remain in full force and effect except that the City and
Lessee shall negotiate in good faith the amount of the rent to be paid by Lessee
during the time the City repairs the Hangar.
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 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 (30) calendar days from the date of the notice, Lessee may elect to
terminate this Agreement by giving written notice to the City of Lessee's election
to terminate this Agreement. If Lessee 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 City, and until such repair
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 13
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 Lessee's notice of the damage, either party
may terminate this Agreement by giving the other party written notice within ten
(10)days of the expiration of the one hundred eighty(180)day period of the party's
election to terminate this Agreement.
24. ASSIGNMENT. Lessee shall not voluntarily assign,encumber,or sublet its interest in this
Agreement or in the Hangar, or allow any other person or entity (except its authorized
representatives) to occupy or use any or all part(s) of the Hangar, without first obtaining
the City's prior written consent,which shall not be unreasonably withheld.Any assignment
or encumbrance without the City' s consent shall be voidable and, at the sole election of
the City, shall constitute a default of this Agreement. No consent to any assignment or
encumbrance shall constitute a further waiver of the provisions of this section.
25. DEFAULT.
A. The occurrence of any of the following shall constitute a material breach or default
of this Agreement by Lessee:
1. Storage of an operational aircraft within the Hangar that is not properly
registered and insured.
2. Failure to pay any payment due under this Agreement when due,if the failure
to pay continues for five(5)calendar days after notice of the failure has been
given to Lessee;
3. Failure to perform any other provision of this Agreement if the failure to
perform is not cured within thirty(30)calendar days after notice of the failure
has been given to Lessee. If the breach or default cannot be reasonably cured
within thirty (30) calendar 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) calendar day period and diligently and in good faith continues to
cure the default.
4. Failure to maintain current licenses.
5. 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.
B. Notices given under this section shall specify the alleged breach or default, and
shall demand that Lessee perform the provisions of this Agreement or pay the
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 14
payment that is in arrears, as the case may be, within the applicable time 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 default pursuant to Section
31.No such notice shall be deemed a termination of this Agreement or a revocation
of the Permit 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 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.
26. CITY' S REMEDIES FOR DEFAULT.
A. 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 Hangar. Once
the City has terminated this Agreement, Lessee shall immediately surrender the
Hangar to the City. On termination of this Agreement, the City may recover from
Lessee all of the following:
l. The worth 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;
2. Any other amount necessary to 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 Hangar for a new Lessee (whether for the same
or a different use) and any special concessions made to obtain a new Lessee;
and
3. Any other amounts in addition to 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 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 become due. Accordingly, if the City does not elect to
terminate this Agreement on account of any default by Lessee,the City may enforce
Fxecutive Nangar No. .2 lease—Aircraft Service Specialists Page 15
all of the City's rights and remedies under this Agreement including the right to
recover all rent as it becomes due.
27. SURRENDER OF HANGAR.
A. On the expiration, cancellation or termination of this Agreement, Lessee shall
surrender possession of the Hangar to the City and return the empty Hangar in
substantially the same condition as the Hangar existed at the commencement of the
Agreement, ordinary wear and tear excepted. The Hangar shall be returned to City
broom clean and free of debris, and in good operating order, condition and repair.
B. Lessee shall remove all personal property and perform any and all necessary
restoration made necessary by the removal of any personal property on or before
the date of expiration,cancellation or termination of this Agreement. City may elect
to retain or dispose of in any manner any alterations or Lessee's personal property
that Lessee does not remove from the Hangar on the expiration, cancellation or
termination of the term of this Agreement as allowed or required by this Agreement,
by giving at least five (5) calendar days' notice to Lessee. Title to any such
alterations or Lessee's personal property that City elects to retain or dispose of shall
vest in City on 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
disposition of any such alterations or Lessee's personal property. Lessee shall be
liable to City for City's costs for storing, removing, and disposing of any alteration
or Lessee's personal property.
C. Lessee shall reimburse the City for any damage done to the Hangar caused by
Lessee's use or actions neglect or omissions or operations. Damage done to the
Hangar shall include, but not be limited to, interior and/or exterior walls, hangar
doors and floors. City shall provide 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 to City on expiration, cancellation or
termination as required by this section, Lessee shall hold City harmless from all
damages resulting from Lessee's failure to surrender the Hangar,including,without
limitation, claims made by a succeeding Lessee resulting from Lessee's failure to
surrender the Hangar.
28. ADMINISTRATION BY CITY. VVhenever Lessee is required to secure the approval or
consent of the City pursuant to this Agreement, the City shall mean the Airports Manager.
29. VOLUNTEER ASSISTANCE. Under no circumstances will Lessee use City employees
whom are on duty to perform work at the Hangar. Under no circumstances will Lessee use
Executive Hangar No. 1 Lease—Aircraft Service Specialists Page 16
City employees whom are off duty to perform work at the Hangar if the nature of the work
is substantially similar to the employee s regular work duties for the City.
30. INTERPRETATION VENUE AND ATTORNEY FEES.
A. 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.
If any claim, at law or otherwise, is made by either party to this Agreement, the
prevailing party shall be entitled to its costs and reasonable attorneys' fees.
B. This document contains the entire agreement between the parties and supersedes
whatever oral or written understanding each may have had prior to the execution of
this Agreement. This Agreement shall not be altered, amended or modified except
by a writing signed by City and Lessee. No verbal agreement or conversation with
any official, officer, agent or employee of City, either before, during or after the
execution of this Agreement, shall affect or modify any of the terms or conditions
contained in this Agreement.
C. If any portion of this Agreement or the application thereof to any person or
circumstance shall be invalid or unenforceable to any extent, the remainder of this
Agreement shall not be affected thereby and shall be enforced to the greatest extent
permitted by law.
D. The 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.
E. Each party hereto declares and represents that in entering into this Agreement, it
has relied and is relying solely upon its own judgment, belief and knowledge of the
nature, extent, effect and consequence relating thereto. Each party further declares
and represents that this Agreement is made without reliance upon any statement or
representation not contained herein 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 counsel with respect to the negotiations, terms, and
conditions of this Agreement and that the decision of whether or not to seek the
advice of counsel with respect to this Agreement is a decision which is the sole
responsibility of each of the parties. Accordingly, 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.
Executive Hangar No. 1 Lease—Aircraft Service Specialisfs Page 17
31. NOTICES.
A. 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 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 CITY: TO LESSEE:
City of Redding Aircraft Service Specialists
Attn.; Airports Manager Attn: Neal Martin
6751 Woodrum Circle#200 2875 Idlewild Drive #89
Redding, CA 96002 Reno,NV 89509
B. Either party may change its address for the purposes of this paragraph by giving
written notice of such change to the other party in the manner provided in this
Section.
C. Notice shall be deemed effective upon: (1) personal service ar (2) two calendar
days after mailing or transmission by facsimile, whichever is earlier.
32. 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 24 of this Agreement.
33. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every
provision therein.
34. AUTHORITY TO CONTRACT. The City Manager or his designee shall have authority
to execute on behalf of the City any amendment to this Agreement which does not decrease
the amount of compensation due to City or otherwise substantially change the terms
provided herein. The City Manager, or his designee, shall likewise have the right to
terminate this Agreement either due to default or upon mutual agreement of the Parties.
35. DATE OF AGREEMENT. The effective date of this Agreement shall be the date it is
signed by the City.
Executive Hanqar No. .1 Lease—Aircraft Service Speciatists Page 28
II'�WITNESS WHE OF, City and Lessee have executed this Agreernent an the days and year
set f�rth below:
CITY QF DDING
Date: ,�024
BA Y TIPPIN, +City Manager
ATTEST: APPROVED AS TO�'+Q ` r
CHRISTIAN 1VI. CURTI�
City Attorney
SI3A ENE TIPT(31�T, City Clerk 8y:
LESSEE
AIRC FT SERVICE SPECIALISTS
Date: � � �` ,2024
By. NE L MARTIN
OTICE OF �EMPTION
TO. 0 Office of Planning and Research FROM: City of Redding
1400 Tenth Street,Raom lZl Public Works Department
Sacramento, CA 95814 777 Cypress Avenue
Reddi��g;CA 96001
� Shasta Couraty Clerk
County of Shasta
P.O: Box 9908&0, 1643 Ma►•ket Street
Redding, CA 96099-0$80
Project Ti#le: Lease A�g•eement for Executive Han�arNo. l at the Reddiil�Re�ioilal Airport
Project�acation—Specific� 675I Woodt�um Gii-cle
Project Lacation—City:Reddin� Praject Location—County: Shasta
Description of Project: The Citv of Reddin� wiil execute a Lease A�reement with Aircraft Service Specialists for
Executive Han�ar No. 1 at the Reddit�a Regiona( Airpoi�t. The initial term of tlris A�reement shall be for five (5) vears
commencin og n Ma,�l 2Q24 and expiring Apri130 2029.
Name of PublicAgency A�proving Project: City of ReddinQ
Name of Person ar Agency Carryin�Out Project: Lauren Ford Assistant Airport Manatrer
Exempf Status: (check one)
❑ Mitiisteriai [Section 21080(b)(1}; 15268]
❑ Declared Emergellcy [Section 21080(b}(3); 15269(a)]
❑ Eanergei�cy Project [Section 21080(b)(4); 15269(b)]
❑ Statutac•y Exe�nptions. State code nuinber;
❑ Common Setlse Exemptian (This project does not fall within an exempt class;but it can be seen with certainty that there is
no�possibiliry�thatthe�activity may have a sigmftcant effect on the�environment{1�4�CCR 15641[b][3]).
0 Categorical Exemption_ State type at�d section nurnber: Sec, 15301 Existing Facilities
� No exceptions apply tllat would bar tlie use of a categoi-ical exemption(PRD 21084 and 14 CCR 153Q0.2).
I�easans why praject is exempt: Class 1 exemptions include tt�e per�nitting, leasin�, attd opet'ation of public or rip vate
struoture� faoil�ities in�cilanical e�uipment or topo�raphical features tliat involve negli�ible or no expails�ion of existing
�or former use. The actioi� will r►ot result in expansic�n of use as Aircraft�Service Specialists� is tlle cut�rent teizant and will
ao�itinue to provide services in EXecutive� Han�ar�No. 1. The� lease area is� located within a built environment, and tl�e
action has no pote«tial to have a sigllificant effect on the eilvironment
Lead Agency Contact Personc Amber Kelley Telephone: 530:225.4046
If Filed by Applicant:
1. Attach certified document of exemptian finding:
2. Has a notice af exemption been filed by the pubtic agency approviilg the project? ❑Yes ❑No
�-;�'�� � ,��°-����
s�gn�tur�: � � �a��...v� � .��:� , DatQ: � ,�
Title: Environmental Com Iiance Mana r
�Signed by Lead Agency Date received for filing at OI'R:
❑ Sig�led by Applicant