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Home My WebLink About _ 4.2(a)--Approve Lease Agreement with Redding Jet Center � � �' � � � � � � ' � �' � � ' � ` CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: May 21,2024 FROM: Steve Bade, Assistant City ITElVI NO. 4.2(a) Manager ***APPROVED BY*** n � t�� ; s' �r �zrl�#��??4 rS' �P�it�,C�i ��t t� �f��j�� sbade@cityofredding.org sbade@cityofredding.org SUBJECT: 4.2(a)--Approve Ground Lease Agreement with Redding Jet Center Recommendation Authorize and approve the following actions: (1) Approve the Ground Lease Agreement between the City of Redding and Redding Jet Center for land located at the Redding Regional Airport — 3775 Flight Avenue, with annual rent for the initial year to be $19,054.68; increasing to $44,388.52 for the second year; and the remaining 28-year term until May 31, 2054, the annual rent will be adjusted based on CPI; (2) Authorize the City Manager, or designee, to sign and execute the lease agreement; and (3) Find the action categorically exempt from review under the California Environmental Quality Act Guidelines,pursuant to Section 15301 —Existing facilities. Fiscal Impact Annual rent for the initial year will be $19,054.68 increasing to $44,388.52 for the second year. For the remaining period until May 31, 2054 the annual rent will be adjusted based on CPI. Redding Jet Center intends to use the leasehold area to relocate and expand aircraft fuel s�orage and fueling facilities which will have a variable impact on airport revenues from fuel flowage fees charged in the City of Redding Master Fee Schedule. The ultimate impact remains to be seen, however, if the Redding Jet Center development yields increased fuel sales, the Airports Division may collect a higher amount in fuel flowage fees as revenue. Alternative Action City Council may choose not to approve the lease agreement and provide alternative direction to staff instead. Report to Redding City Council May 16,2024 Re: 4.2(a)--Approve Lease Agreement with Redding Jet Center Page 2 Background/flnalysis The City of Redding operates and owns the Redding Regional Airport (RDD), a public-use airport with commercial air service. The RDD contains facilities for both commercial and general aviation users, as we11 as significant amounts of developable space which is further detailed in several planning documents including the Airport Layout Plan, Airport Strategic Plan, and Airport 1Vlaster Plan. A11 land, inc]uding developable ]and, can be generally divided into land which is dedicated to either aeronautical or non-aeronautical land-uses. This distinction determines the applicability of certain regulations and grant sponsor obligations imposed by the Federal Aviation Administration (FAA). In late 2022, the City of Redding Airports Division identified several pieces of land suitable for development of aeronautical land-use facilities. The Airports Division solicited bids for four development sites at the airport between December 30, 2022 and February 1, 2023 as Schedule N�umber 5342. After review of submitted proposals, the Redding Jet Center was selected by the panel as the best and highest use of the site known as the "l�Torth Lot" in the bid package. The Redding Jet Center proposal centers on the development of an above ground fuel storage facility as well as pavement improvements to support fueling activities as part of its overall Fixed Base Operator operations at the airport. The proposed lease terms include an initial term of 30 years starting on June 1, 2024 and then two, five-year options to extend the term of the agreement. The leased premises include an 85,832 square foot area which is further described in the exhibits to the Ground Lease Agreement and referenced as the"North Lot" in the RFP. These improvements will bene�t all airport users by expanding available service, help the Redding Jet Center meet regulatory requirements prohibiting underground fuel tanks, and ultimately benefit the airport by increasing revenues from fuel sales collected through the fuel flowage fee. In accordance with Governlnent 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. Environmental Review Staff has reviewed the action and determined that approval of the lease agreement is categorically exempt from review under the California Environmental Quality Act (CEQA) Guidelines, pursuant to Section 15301 — Existing Facilities. Class 1 exemptions include the permitting, leasing, and operation of public or private structures, facilities, mechanical equipment, or topographical features that involve negligible or no expansion of existing or former use. Approval of the lease agreement has no potential to have a significant effect on the environment. The Redding Jet Center is responsible for meeting certain regu]atory requirements in order to develop land as required by the FAA in a process that includes National Environmental Policy Act (NEPA) and CEQA consideration. Redding Jet Center is working with a qualified aviation consultant to obtain necessary NEPA and CEQA approvals which wi11 be submitted to the City Planning Department and FAA as part of the development approval process. Report to Redding City Council May 16,2024 Re: 4.2(a)--Approve Lease Agreement with Redding Jet Center Page 3 Council Priority/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 RFP 5342 -Airport Development Ground Lease Agreement NOE Lease Agreement Redding Jet Center I T Y -- CITY � E 1 C �� ..�.-�-� 777 Gypress Av�nu�, Reciding, CA 9�C7C?1 � �-;'. PC) �OX 4��Q7`l, Redciing, �A 9FC�4J-6C�71 � L I � `' city�fr�ddir�g.�r� �nb� , December 30, 2022 REQUEST FOR PROPOSAL TO PROVIDE AERONATICAL DEVELOPMENT ON AIRPORT PROPERTY LOCATED AT THE REDDING REGIONAL AIRPORT, CITY OF REDDING, CALIFORNIA (Schedule Number 5342) In accordance with the provisions of the Municipal Code of the City of Redding, sealed proposals must be submitted to the City Clerk's 3ra floor office of the City of Redding, located at City Hall, 777 Cypress Avenue, Redding, California 96001 prior to 3:00 pm PST, Wednesday, February l, 2023, for furnishing the City of Redding a proposal to provide aeronautical development on airport property located at the Redding Regional Airport, per the attached specifications and general conditions. PROPOSALS RECEIVED AFTER THIS TIME AND DATE MAY NOT BE ACCEPTED OR CONSIDERED. The said proposals will be opened at 3:00 pm PST,on Wednesday,February 1,2023,in �he designated City Hall Conference Room as posted in the main lobby of City Hall, 777 Cypress Avenue, Redding, California. The pro�oser shall�rovide the ori ig na1(unbound)�ro�osal,a1on�with an exact co� o� proposal in PDF format on a USB drive. Fax or electronic submission of�ro�osals will not be allowed. The City will award any resulting contract in a manner consistent with the City Purchasing Ordinance. The cut-off date and time for receiving questions regarding this RFP is 5:00 pm PST, on Wednesday,January 18,2023. All inquiries must be made in writing and may be submitted to the email address shown below. THE CITY OF REDDING Purchasing Division ��'�'� �,� `��~��,��.,� . ; Michelle Kempley, Senior Buyer r�l�� I� �it �fr�dd�� ,c�r NOTE If a potential bidder/proposer received this solicitation document through some means other than surface mail from the City of Redding(such as from the City of Redding Internet web site, or from another prospective bidder/proposer), it is the responsibility of the potential bidder/proposer to advise the assigned City of Redding Purchasing contact of its intention to submit a bid/proposal so that any addenda or other correspondence related to this solicitation will be sent to the potential bidder/proposer.When contacting the Purchasing Division,the bidder/proposer sha]1 provide the solicitation number located on the cover page of this document. Transmittal of this information must be in writing, by U.S. Mail, fax, or e-mai1. Transmittal of this information via telephone is not acceptable. Please submit bid/proposal as directed in the RFP package. Forward to: City of Redding City Clerk 777 Cypress Avenue Redding, CA 96001 Proposals must be received by the City Clerk's office prior�0 3:00 pm PST on the date indicated below. Mailing envelope is to be clearly marked on the outside with the following notation: "Proposal for Schedule No. 5342; opening at 3:00 pm, on Wednesday, February 1, 2023" Note: Signatures must be legible, indicating full first and last name. The City of Redding Purchasing Division REQUEST FOR PROPOSALS FOR AERONATICAL DEVELOPMENT ON AIRPORT PROPERTY LOCATED AT THE REDDING REGIONAL AIRPORT SCHEDULE NUMBER: 5342 DECEMBER 30, 2022 CITY OF REDDING REDDING REGTONAL AIRPORT 6751 WOODRUM CIRCLE, SUITE 200 REDDING, CA 96002 � � � �; � � INTRODUCTION/STATEMENT OF PURPOSE The objective of the City of Redding Airports Division is to encourage aeronautical development at the Redding Regional Airport(RDD)in select areas within the Airport Operations Area(AOA). Examplesl of aeronautical development include aircraft parking, cargo and ground handling, and fueling. The available properties for development are referred to as the North Lot, South Lot,Flight Avenue Lot, and East Lot as seen is Exhibit A— Site Maps. The project outcome is expected to represent the highest and best use of the available property within the scope of aeronautical development. The project outcome should also be compliant with all applicable federal, state and local regulations related to aviation and on-airport development and conform with the RDD Airport Master Plan (AMP) and Airport Strategic Plan (ASP). The RDD AMP and ASP are available for viewing at the RDD Airport Administration office located in Suite 200 on the second floor of the terminal at RDD. The City of Redding Airports Division makes no guarantee of regulatory approval nor intends to reimburse costs for permitting or regulatory approval. The City of Redding (City) is soliciting proposals from developers interested in entering a long- term lease to develop on-airport property; complete the planning and building permit processes and all other regulatory processes specific to on-airport development; develop aeronautical uses on the airport property; operate or sub-lease to operate the aeronautical development on airport property. The City is seeking a capable and qualified developer that can demonstrate experience in developing, financing, and operating aeronautical development projects and who has the capability to assemble an experienced development team; prepare an innovative design and business plan; prepare a financing plan and provide evidence of financial capability for funding pre-development costs, equity, and both construction and ongoing project costs; and both the ability and experience to conduct aeronautical operations on airport property. Start-up or other, less experienced development entities are encouraged to partner or submit joint proposals with more experienced entities in order to be competitive. IJpon review of the qualifications and proposals of the prospective development teams, the City anticipates entering into an Exclusive Right to Negotiate Agreement for the project site and, ultimately, a Disposition and Development Agreement to develop the site. SITE INSPECTION/PRE-PROPOSAL CONFERENCE The on-site inspection and pre-proposal conference will begin at 10:00 am, PST, on Thursday, January 12, 2023, at the Redding Regional Airport. Proposers shall meet at the Airport administrative office on the second floor of the Airport terminal building located at 6751 Woodrum Circle, Suite 200,Redding,California 96002,at 10:00 am for the site inspection. The pre-proposal conference will be held immediately thereafter in the James W. McCall Conference Room at the Redding Regional Airport for the purpose of reviewing the proposal documents. The purpose of this eonferenee will be to clarify any questions or concerns. Attendance at the site inspection and_pre-proposal conference is not mandatory, but hi�hly su��ested. 'Not an exhaustive list 2 SUBIVIITTAL INSTRUCTIONS Submit one(1)unbound original proposal and one exact copy of the proposal in PDF format on a USB jump drive in a sealed box or envelope clearly marked with the name of the development entity and labeled: "Rec�uest for Pro�osals, Schedu]e Number: 5342" Proposals sha11 be delivered to the City Clerk of the City of Redding at the address and time as noted on the cover sheet. The City reserves the right to reject at its sole discretion proposals received after the stated time and date. Facsimile or electronic submission will not be accepted. REQUIRED PROPOSAL CONTENTS At a minimum,proposals shall include the following information, in the order indicated below: 1. Transmittai Letter - Include a cover �ransmittal letter signed by a member of the firm having the authority to enter into contracts on behalf of the organization and acknowledge receipt of all addenda by number(if any were issued). If unsure as to the status of addenda, contact 1Vlichelle Kempley, Senior Buyer, to confirm (phone: (530) 225-4137; email: �k��it�c��`r�ddir� .g�). Addenda are also posted at: w�w.�ity�afr�dd��,c�r,�/l��zz��s�r� ��°�ds 2. Company Information - Provide name, address, telephone, fax, and e-mail of the development entity and its principals and describe how the development entity is organized, owned, and controlled. Include fu11 names and biographical summaries of company officers and/or principals 3. Development Experience - Describe relevant project experience/role of the development entity in project planning, fmancing, and construction, with particular emphasis aeronautical development on airport properties. Provide elevations, site plans, and photographs for the most relevant three projects completed within the last five years. Specifically describe what role the developinent entity or its principals have played in affordable ho�using projects from initial planning to build-out, specifying such roles as either"lead" or"support." 4. Development Approach - Describe �he development entity's project management and organization approach, including the development team structure for this project, clearly showing lines of responsibility, including all subcontractors. 5. References - Provide credit, financial, or banking references, including contact names, phone numbers, and e-mail addresses. Reference information obtained for the purposes of this RFP will be kept confidential. 6. Project Description - Provide a description of the development plans for the project site including the following; a. Site Plans showing the location and orientation of structures, pads, aprons, taxiways, or any other improvements. b. Business Plans demonstrating added value of the proposed development to the Redding Regional Airport and including projected cash flow over lease term. 3 EVALUATTON CRTTERIA Submissions received as requested will be evaluated by the City.I�nterviews will then be scheduled with the entity or entities most closely meeting the City's needs and objectives. Submissions will be evaluated and reviewed on the basis of the following criteria: • Experience of development entity in planning, designing, building, and operating on- airport aeronautical developments. • Qualifications and experience of key personnel and development team members. • Financial strength of development entity and ability to raise capital. • Ability to operate the development to the benefit of 1oca1 aviation. • Project consistency with relevant municipal and airport planning documents. • Level of co-location or part�iership with existing adjacent and surrounding aeronautical developments at the airport. The City of Redding reserves the right to reject any or a11 proposals, in part or in their entirety. In addition,the City will award any resulting contract in a manner consistent with the City Purchasing Ordinance. SELECTION PROCESS TIMEFRAME Release of RFP to Developers December 30, 2022 Site Visit 10:00 am on J�anuary 12, 2023 Questions due by 5:00 p.m. January 18,2023 Addendum issued(if necessary) January 20, 2023 Response due to City by 3:00 p.m. February 1, 2023 Analysis of Proposals February 6— 10, 2023 Interviews (if necessary) February 20—24, 2023 Negotiation of Development Agreement February 27 —March 10, 2023 Recommendation to City Council and Approval Apri14, 2023 of Contract/Development Agreement Commencement of Development Agreement Aprii 5, 2023 CONTACTS Technical questions: Procedural Questions: William Wallace, Management Analyst Michelle Kempley, Senior Buyer City of Redding Airports Division City of Redding Purchasing 6751 Woodrum Circle, Suite 200 777 Cypress Avenue Redding, CA 96002 Redding, CA 96001 �r��a��a��ityc�frr�ddir�� rr��r��l��pt�c�fi�ddin�� Questions must be submitted in writing to both contacts shown above. All questions,other than procedural �uestions,must be received no later than 5:00 p.m.,PST,Wednesday,January 18,2023. At the City's sole discretion, clarifications deemed material to this project will be shared with all known interested parties by way of formal written addendum which will also be posted to the Purchasing Division website at: w�vw.�ity�afr�ddin�g/Pur�ha�ir�g�ids . 4 ATTACHMENTS Exhibit A—Site Maps Exhibit B—Sample Lease Agreement Exhibit C—Terms and Conditions 5 ¢r yt F Y�f��2�+�� ` � W °1ti tr " � , . �� '� ��` _ w , � ; � t " .. ... n �, � r y . �� x��; �� "� � 4 � � � , �� ,��r � `�� .m�.��.n�� , � r tia � f �., � � �� { ,. i� �� i a �� ...... � i s+P€I�: eN asy�<< ., i �t�� 1� � a �, f �� d� 9 � ��,„ �7' ''�.. �� sjt�, r �� '�AV E� R { ��!�}� k{�� F 1 7��fi ' 9 4: �. <4�.� i� '� nia. �` �,.m.F.f 7 ��,�7� . �$ �3��? n�tt E$ h Y; � .`p � �?�S. 3� t � t � � � �,i, � �� , � � � East Lot � � �'��1�,�3�'� �,��. � F� f�� y $. t�� ` t �' t��f� �t fi ��} ��, }4t�f l,t �� 7�� +��,{�� t : j ��i.� a� C} � �'``�ts ° � ¢� {: t , .1 �„ � , � �t� . �» �� r ,j <s t � ��. . t �, � °� p t �.�r u�� '� � ; � � � � � ,. �;' `' � �,t �' �z t � , p' � ``�. ,.r,�� z �� ,� t' k ��, } �s , � ,� 'z � ; ��h � t� � � .k sl f#r�t � t � �z Flight Ave. Lot � � � �`t � �� ,� �x. z � ��t �> � � � ��u, � Y 5 a � North �ot �t � � �� f�i < r {, � : �st �j � � ��`.,.s,£,.;Li1� t�"` � ' �25#z}�a � � �� x _ s�0r Y �� South Lot �� 't� F, � �z��t;a; � „ Sf ,,�� iiF� '. y ; f7�3 ts4 k .. f i� }�+.�7, , j��$;f � � j y�� , ; �t'�� , � t� f�t f�� 1��,..� �K 6HTQNFS�+ + � ` � ��; � ; �Q � !, � � { jtt�fi � t �.�,�,. � , `� tt�t� �t/ s# . § p §,}U� y ? 4 %�� g�'{tr �`3 ti v. �t ° �tjl�.. , > . �� i f �',� ,x.� �< t ��I��" ' � i<rt`; �. � � �� , �� Redding�Regional Airport �� `�.^. .r��., � ., �"�t'r � ,, :. sy y �i'�� 4�t� +� �. � �.. $'; Operations Area �t`f � �� , x ��4 � �� ;�� t y�� r, �� r � �` + t �P ,.�'trs x�},. . � r ��7t`��i r,:' � s }�jar� �� Y� i? �� i� ag�� +�Y� o,. � � � , , , ;' , s,. > , , , . „�.� . , ;<, a � } a}= t ,r� , .� �'Yf r,.l 4z. 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"�� N` � y � �r� �Y.,.�� , � � q 'r " ti �� tiS e� � �t� , �s �� t �� x' J „,,�;� r " ¢ ' � � ;� a .�y r'� � w. . � Yt r; s� f �.tf � ,y,t.. � ��'� t ' r ,� b�,:, {,: N �is �iv�sioN EXHIBIT A - RFP SITE MAPS INFORMATION TECHNOLOGY DEPARTMENT W E DATE PRODUCED: DECEMBER21,2022 CITY OF REDDING S o 25a 500Feet REDDING REGIONAL AIRPORT EASTLOT X:\ACADMaplAirport\ProProjectsWeronauticai ReddingAirport.aprx GROUND LEASE AGREEMENT This Agreement is entered into as of date, (the "Effective Date") by and between the City of Redding, a municipal corporation(the"Agreement'), (the"City"),and lessee entity, a organization type, (the "Lessee"). RECITALS A. City operates and maintains the Redding Regional Airport (the "Airport") and is owner of certain real property in the County of Shasta, State of California, described on Exhibit A(the "Property"). B. Lessee desires to lease from City approximately area square feet of ground space to use and develop description of development. AGREEMENT L PREMISES. Lessee desires to lease from City and City desires to lease to Lessee on the terms and conditions contained in this Agreement, area square feet ground area, located adjacent to their existing base operations, legally depicted on Exhibit B, attached hereto and incorporated herein by reference, (the "Premises"). 2. TERM. A. Lease Commencement: the �erm will begin after the City Building Division issues an occupancy certificate to Lessee for Lessee's new hanger("Occupancy Date"). The term of this Agreement shall be for the period of thirty (30) years, commencing on the Occupancy Date and expiring on at 11:59 p.m. in the calendar year thirty(30)years after the Occupancy Date (the "Initial Term"). This section is to be amended to include the term dates when occupancy certificate is issued by City Building Division. B. So long as Lessee is not in default under this Agreement, Lessee shall have two (2) five (5)year options to extend the term of this Agreement. If Lessee exercises such option(s), all of the terms of this Lease Agreement shall remain in fu11 force and effect, with the exception of this clause covering Lessee's option to renew. The option(s) shall be exercised by written notice addressed to City no less than ninety(90) calendar days prior to the expiration of the then current Lease term. C. Lessee shall exercise the option to extend the Term by written notice to the City no less than ninety (90) calendar days prior to the expiration of the Initial Term. Failure to exercise the option may, in the City's sole discretion, be considered a forfeiture of the right to exercise the option. 3. USE. A. The Premises is leased to Lessee for the sole purpose of desc�iption of development. Lessee shall not use or permit the Premises to be used for any other purposes without the prior written consent of the Airports Manager. B. Lessee shall not engage in the sale of alcoholic beverages at the Premises or Airport without the prior written consent of the Airports Manager. 4. RENTAL PAYMENTS. A. The monthly rent to be paid by Lessee to the City under this Agreement during the Term of this Agreement (the "Rent"), shall be the following: 1. For the period beginning January 1, 2022,through the end of the Tnitial Term,the Rent to be paid by Lessee for the Premises shall be the Initial Rent $0.042 per square foot per month (approximately area square feet). Upon the commencement of each additional twelve (12) month period through lease term end date, Lessee sha11 pay to the City as the monthly Lease Fee, the sum of the then current monthly Rental fee increased by three percent (3%). 2. Lessee shall have two �ve-year options to extend the term of this Lease. Such options shall extend the initia130-year term of this Lease for two additional five- year periods, to fi�st extension date, and second extension date, respectively. During any extension, and upon the commencement of each additional twelve (12) month period and during said extension, L,essee shall pay to the City as the monthly Lease Fee, the sum of the then current monthly Rental fee increased by three percent (3%). If Lessee exercises such option(s), all of the terms of this Lease Agreement sha11 remain in full force and effect, with the exception of this clause covering Lessee' s option to renew. The option(s) shall be exercised by written notice addressed by Lessee to Lessor no less than ninety (90) days prior to the expiration of the then current Lease term. B. Lessee shall pay to the City all rent for the Premises and all other payments, if any, required by this Agreement, without deduction, set off, prior notice or demand on or before the first (lst) day of the month. Payments not paid when due are subject to late fees and penalty charges as shown in the City's then current Schedule of Fees and Charges. Rent for any partial month shall be prorated based on a thirty(30) day month. 5. UTILITIES. Lessee shall make arrangements for the provision and payment prior to delinquency of any and all utility charges furnished to the Premises,including without limitation, electricity, gas,water, sewer(if the facilities are connected to the sewer in the future), telephone services, garbage and rubbish removal and other public utilities. The City sha11 have no responsibility to pay for utilities furnished to the Premises, and Lessee shall hold the City free and harmless from all eharges for the furnishing of utilities to the Premises. 6. TAXES. A. Lessee is advised that, pursuant to Revenue and Taxation Code §10'7.b, 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. B. Lessee shall promptly pay before delinquency any taxes andlor special assessments assessed against the Premises and any improvements andlor Lessee's personal property, and any possessory interest tax levied by reason of its use and/or occupancy of the Premises. On demand from the City, Lessee shall furnish the City with satisfactory evidence of these payments. 7. CONSTRUCTION BY LESSEE. A. Duty to Construct. L,essee shall, at Lessee's sole cost and expense, construct or cause to be constructed on the Premises, detailed description of developrnent and construction including Lessee responsibilities for costs and engineering, in the manner and according to the terms and conditions specified in this Article and sha11 be subject to any necessary permits as required by Redding Municipal Code thereby meeting the requirements of the City Zoning Ordinance, California Buildings Standards Code and the California Fire Code. The duty to construct for the development and any other improvements includes the duty for site preparation,including the removal,if necessary,of any buildings ar other structures located on the Premises, the installation or relocation of any utilities and the obtaining of any and all necessary permits, including building and planning permits. B. Requirement of City's Written Approval. 1. Nothing contained in this Article 8 is intended to address the requirements or timing of the City of Redding Development Services Department. The City's approval pursuant to this Section is not intended to be, nor shall it be deemed to be, approval for purposes of receiving a building or use permit. 2. No structure or other improvement of any kind sha11 be constructed on the Premises unless and until the plans, specifications, and proposed location of that structure or improvement have been approved in writing by the Airports Manager. The submission of plans for the Airports Manager's approval is for review of preliminary site layout plans and building elevations and is not intended to be nor shall it be deemed a submission for purposes of receiving a building or use permit. Furthermore, no structure or other improvements shall be constructed on the Premises that do not comply with plans, specifications, and locations approved in writing by City. C. Preparation and Submission of Plans. Lessee sha11, at L,essee's own cost and expense, engage a licensed architect or engineer to prepare plans and specifications for the developrnent and other improvements and shall submit to the Airports Manager for approval: 1. Within one hundred eighty(180) days after the effective date of this Lease, two copies of: a. Drawings and materials in the form of preliminary plans and elevations sufficient to convey the architectural design of the development and other improvements to the Airports Manager, and b. A statement of estimated construction costs for the development and other improvements prepared by the engaged architect or engineer. 2. The plans and specifications may be submitted to the City Planning and Building Divisions concurrent with the Airports Manager's review. 3. Within ninety(90) calendar days after approval by Airports Manager of the items specified in Subsection (1) of this Subdivision C, and the obtaining by Lessee of any building permit, variance, use permit, or rezoning or administrative permit required for the development and other improvements, Lessee shall provide the Airports M�anager two (2) copies of a. Detailed working drawings,plans, and specifications for the development and other improvement; and b. A revised statement of estimated construction costs for the development and other improvements prepared by the engaged architect or engineer. D. City's Approval or Rejection of Plans. Within fifteen(15) days after receipt by Airports Manager of any of the documents submitted to City for approval pursuant to Section 8C of this Lease, the Airports 1Vlanager shall either approve those documents by endorsing City's approval on each such document and returning one set of the documents to Lessee, or the Airports Manager shall give written notice to Lessee of any objections City may have to those documents. Within thirty(30) days after service on Lessee of the written notice of City's objections, Lessee shall deliver corrective amendments to the documents to the Airports Manager and City sha11,within ten(10)days after receiving the corrective amendments, serve written notice on Lessee of City's approval or rejection of the documents as so amended. City's failure to comply with the times stated herein shall not constitute approval of Lessee's plans. E. Changes in Plans. After approval by the Airports Manager of the documents described in Section 8.C.3 of this Lease, any material change in the plans or specifications for the Hangar and other improvements shall be approved by the City. City shall give written notice to Lessee of any objections City may have to any proposed changes within twenty (20) days after a written statement of the proposed changes has been given to City by Lessee. Minor changes in work or materials need not be approved by City but a copy of the altered plans and specifications reflecting those changes shall be given to City. For the purposes of this Section, "minor change" means one that does not materially change the exterior appearance, intemal p1an, location on the Premises or result in a change in the cost of construction of more than Ten Thousand Dollars ($10,000.00). All other changes are material. F. A11 Work Under Direction and Supervision of Licensed Contractor. A11 work required in the construction of the development and other improvements, including site preparation work, landscaping work, and utility installation work, as well as actual construction work on the development and other improvements,shall be performed under the direction and supervision of a competent contractor(s) licensed and in good standing under the laws of the State of California. Such contractor(s) may be an employee of Lessee and sha11 have a current class B General Contractor's license issued by the State of California. l. Lessee shall record that Certificate of Completion promptly within the time specified by law for the recording of that notice; and 2. Lessee shall settle and discharge all liens of record claimed by persons who supplied either labor or materials for the construction of the development and other improvements. G. Compliance With Law and Standards. The development and other improvements shall be constructed, al] work on the Premises shall be performed, and a11 buildings or other improvements on the Premises shall be erected in accordance with all valid laws, ordinances, regulations, and orders of a11 federal, state, county, or ]ocal governmental agencies or entities having jurisdiction over the Premises; provided, however, that any structure or other improvement erected on the Premises,including the develop�nent, shall be deemed to have been constructed in full compliance with all such valid laws, ordinances,regulations, and orders when a valid final Certificate of Occupancy entitling Lessee and sublessees,is so authorized,of Lessee to occupy and use the structure or other improvement has been duly issued by proper governmental agencies or entities. All work performed pursuant to this Lease, or authorized by this Lease, shall be done in a good warkmanlike manner and only with new materials of good quality and high standard. H. Tiine for Completion. Lessee sha11 begin substantial construc�ion of the development, pursuant to acquisition of a valid building permit, within twelve (12) months of the effective date of this Lease. Lessee shall cause construction of the development and other improvements to thereafter be diligently pursued without unnecessary interruption, and shall cause the development and other improvements to be completed and ready for occupancy not later than one hundred eighty (180) days after commencement of its construction. Lessee shall be excused for any delays in construction or commencement of construction ca�used by the act of the act of any public enemy, acts of God, the elements, war, war defense conditions, litigation, strikes, walkouts, or other causes beyond Lessee's control. Lessee shall, however, use reasonable diligence to avoid any such delay and to resume construction as promptly as possible after the delay. L Mechanics' Liens. 1. At all times during the term of this Lease, Lessee shall keep the Premises and all improvements now or hereafter located on the Premises free and clear of a111iens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Premises. 2. Should Lessee fail to pay and discharge or cause the Premises to be released from any such lien or claim of lien within twenty (20) days after service on Lessee of written request from City to do so, City may pay, adjust, compromise, and discharge any such lien or claim of lien on any terms and in any manner that City may deem appropriate unless Lessee is in good faith contesting, opposing or objecting to such lien or claim of lien in compliance with subsection (3) below. In the event Lessee so fails to pay and discharge or cause the Premises to be released from any such lien or claim of lien, Lessee shall, on or before the first day of the next calendar month following any such payment by City, reimburse City for the fu11 amount paid by City in paying, adjusting, compromising, and discharging that lien or claim of lien, including any reasonable attorneys' fees or other costs expended by City, and late fees and penalty charges, as appropriate, as shown in City's then current Schedule of Fees, together with interest at the then-maximum ]egal rate from the date of payment by City to the date of repayment by Lessee. 3. Lessee shall have the right to contest,oppose or object in good faith to the amount or the validity of any liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Premises, provided that written notice of the contest,opposition or objection must be given to City at least five(5)days prior to Lessee making or filing the contest, opposition or objection. Lessee shall be responsible for and shall pay all costs and expenses in any contest or legal proceeding instituted by Lessee. In no event sha11 City be subjected to any liability for eosts or expenses connected to any contest, and Lessee agrees to indemnify and hold City harmless from any such costs and expenses. Furthermore, no such contest, opposition, or objection shall be continued or maintained unless Lessee has provided to City such further written assurances as City may require within ten (10) days of City's written request. J. Zoning and Use Permits. Should Lessee deem it necessary or appropriate to obtain any building permit,use permit,variance,rezoning or administrative permit for the Premises in order to construct or operate the development or any other improvements, City agrees to execute any documents, petitions, applications, and authorizations that may be necessary or appropriate; provided, however, that any such permits, variances, or rezoning shall be obtained at the sole cost and expense of Lessee and Lessee agrees to protect and save City and the property of City, including the Premises, free and harmless from any such cost and expense. K. Ownership of Improvements. 1. Title to all improvements,including the Hangar,to be constructed on the Premises by Lessee shall be owned by Lessee until expiration of thirty(30)years from the commencement date of this Lease or earlier termination of this Lease. All improvements,including the I�angar,on the Premises at the expiration of the term or earlier termination of this Lease sha11, without compensation to Lessee, then automatically and without any act of Lessee or any third party become City`s property. Lessee shall surrender the improvements to City at the expiration of the term or earlier termination of this Lease, free and clear of all liens and encumbrances, other than those, if any, permitted under this Lease or otherwise created or consented to by City. Without taking any action to alter the function or habitability of the improvements or to reduce the economic value of the same, Lessee agrees to execute, acknowledge, and deliver to City any instrument requested by City as necessary in City's opinion to perfect City's right, title, and interest to the improvements and the Premises. 2. Lessee sha11 have the right to remove such personal property, machinery, and equipment as may be removed without threat to the structural integrity of any building or improvement. If damage results from the removal of any such items, Lessee shall repair such damage at its sole expense. 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 reasonable attorneys' fees and other costs of defense incurred by the City, whether for damage to or loss of property or injury to or death of person(s),including properties of the City and injury to or death of the City's officers, officials, employees, agents and volunteers, arising out of or resulting from Lessee's possession or use of the Premises or activities hereunder or from the actions of Lessee's officers, employees, agents and invitees, unless such damage, 1oss, injury or death is caused by the sole negligence or willful misconduct of the City. Lessee's obligations under this Section shall survive termination or expiration of this Agreement. 9. INSURANCE. A. Unless modified in writing by City's Risk Manager, Lessee sha11 maintain, during the duration of this Agreement, the following insurance from an insurance company authorized to do business in the State of California. The cost of such insurance shall be born by Lessee. Subject to policy terms,conditions, limitations and exclusions, coverage shall be at least as broad as: 1. Insurance Services Office form number CG-00 O 1, Commercial General Liability Insurance, in an amount not less than $2,000,000 per occurrence and $4,000,000 general aggregate for bodily injury and property damage liability,personal injury and advertising injury liability, medical payments and, as applicable, products- completed operations coverage, explosion, fueling, defueling and refueling operations. 2. Aircraft Liability, in respect of all aircraft owned, leased, hired, borrowed or operated, including passengers and non-passengers, and including contractual liability coverage in an amount not less than $1,000,000 per each occurrence for bodily injury and property damage, with a sublimit per passenger of no less than $100,000. 3. 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. 4. 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 sha11 contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents and vol�unteers. 5. Property Insurance against all risks of loss to any tenant improvements, betterments, and contents at fu11 replacement value. The property insurance policy shall contain a waiver of subrogation in favor of City, its officers,officials, agents, employees and volunteers. B. Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. C. Other Insurance Provisions. The general liability policies are to contain or be endorsed to contain the following provisions: 1. The City, its officers, officials, employees, agents and volunteers are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Lessee; premises leased or used by Lessee; or automobiles owned, leased,hired or borrowed by the Lessee. The coverage sha11 contain no special limitations of the scope of protection afforded to the City, its officers, officials, employees, agents or volunteers. 2. City, its elected of�cials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Consultant; premises owned, leased or used by Consultant; or automobiles owned, leased,hired or borrowed by Consultant. 3. Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents or volunteers but only as respects claims arising from the sole negligence of the Lessee. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 4. Coverage shall state that Lessee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. D. Cancellation Clause. Each insurance policy required by this section shall be endorsed to state that coverage shall not be canceled except after thirty(30)days' prior written notice has been given to the City. E. Certificate Holder. The Certificate Holder shall be the City of Redding, 777 Cypress Avenue, Redding CA 96001. F. Sublessees. Sublessees shall be required to procure and maintain insurance applicable to their service and/or operation and meet the insurance requirements set forth in this Section. City sha11 determine the type(s) of insurance to be provided by Sub]essee. G. Acce�tability of Insurers. Insurance is to be placed with insurers admitted to conduct business in the State of California with a current A.M. Best's rating of no less than A- :VII. I�. Verification of Covera�e. Lessee shall furnish the City with certificates of insurance and original endorsements effecting coverage reguired by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. I. Covera�e. All coverage types and limits required are subject to approval, modification. and additional requirements by the City, as the need arises. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Lessee thirty(30) days' advance written notice of such change. J. The requirements as to the types and limits of insurance coverage to be maintained by Lessee as required by Section 9 of this Agreement, and any approval of said insurance by City, are not intended to and 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. K. At every five(5)year anniversary during the initial term of this Agreement or any option term,the City Attorney or Risk Nlanager may modify the insurance requirements set forth herein and,upon written notice from the City Attorney or Risk Manager of the change in insurance requirements,Lessee shall satisfy said insurance requirement within thirty(30) calendar days. 10. MAINTENANCE AND REPAIRS. A. Lessee shall, at Lessee's sole cost and expense and at all times during the term, maintain the Premises in a safe and attractive condition and in the same condition as received at the beginning of the term, ordinary wear and tear excepted. Lessee shall do, or cause to be done without delay, all those things which, in the opinion of the Airports Manager, are necessary or desirable in the interests of safety or to maintain the Premises in good repair and appearance. A11 damage caused to the Premises and/or Airport by Lessee, its officers, employees, agents and invitees, shall be repaired at Lessee's sole expense. B. Lessee shall, at Lessee's sole cost and expense and at all times during the term, be responsible for the following: l. Sweeping and maintaining the aircraft and vehicle parking aprons in a clean condition; 2. Conduct vegetation and weed management. 11. ALTERATIONS AND ADDITIONS. A. Lessee shall not make or cause to be made any alterations or improvements ta the Premises without first securing the written consent of the Airports Manager. The Airports Manager, in his sole discretion, may impose restrictions upon any proposed alterations or improvements. A11 such alterations or improvements sha11 comply with Airport Policy and all applicable building, zoning and fire codes. B. Any trade fixtures, equipment, and other properry brought, installed, or placed by Lessee in or about the Premises shall be and remain the property of Lessee except as otherwise provided herein. Lessee shall have the right at any time during the term hereof to remove any or a11 of its property, subject to Lessee's obligation to repair all damage, if any, resulting from such removal. C. Upon the termination of this Agreement,at the sole option of the City: (1)The alterations or improvements shall become the property of the City and shall remain on the Premises; or(2)Lessee shall remove a11 alterations or improvements and return the Premises to the City in substantially the same condition as the Premises existed at the commencement of this Agreement. 12. ASSIGNMENT. Lessee sha11 not voluntarily assign, encumber, or sublet its interest in this Agreement or in the Premises, or allow any other person or entity (except its authorized representatives) to occupy or use any or all part(s) of the Premises, without first obtaining the City's prior written consent which sha11 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. 13. INVOLUNTARY ASSIGNMENT. A. No interest of Lessee in this Agreement shall be assignable by operation of 1aw. Each of the following acts shall be considered an involuntary assignment: 1. If Lessee is or becomes bankrupt(whether voluntary or involuntary)or insolvent, makes an assignment for the benefit of creditors, or institutes a proceeding under the Bankruptcy Act in which Lessee is the bankrupt; or,if Lessee is a partnership or consists of more than one person or entity, if any partner of the partnership, or other person or entity,is or becomes bankrupt(whether voluntary or involuntary) or insolvent, or makes an assignment for the benefit of creditors; 2. If a writ of attachment or execution is levied on this Agreement; 3. If, in any proceeding or action to which Lessee is a party, a receiver is appointed with authority to take possession of the Premises; ar 4. The abandonment or discontinuance of any operation at the Airport by Lessee, or the failure to conduct any service, operation or activity permitted by this Agreement. If this condition exists for a period of fifteen (15) days without the prior written consent of the City, it will constitute an abandonment of the land, facility or location, and this Agreement sha11 become nu11 and void. B. An involuntary assignment shall constitute a default by Lessee, and the City shall have the right to elect to terminate this Agreement.In no event shall this Agreement be deemed or treated as an asset of Lessee. 14. NO EXCLUSIVE USE. 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 Premises for the purpose and approved use set forth in this Agreement. 15. WASTE; QUIET CONDUCT. Lessee shall not commit or suffer to be committed any waste upon the Premises, or any nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant of or user of the Airport or the City's adjoining property. 16. STORAGE. Lessee sha11 not store anything outside of the Premises without the prior written approval of the Airports Manager. 17. 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 Premises for any purpose, including, but not limited to, the following: 1. To inspect the Premises at reasonable intervals during regular business hours with twenty-four (24) hours prior notice to determine whether Lessee has complied with or is complying with the promises, terms, covenants and conditions of this Agreement; 2. To make repairs, additions, or alterations as may be necessary or convenient for the conduct, safety, improvement, or preservation of the Airport; 3. For emergency purposes; and 4. In the exercise of the City's police power. B. No inspection by or on behalf of the City of the Premises shall cause or constitute a termination of this Agreement, or be deemed to constitute an interference with Lessee's possession or use thereof. 18. RULES AND REGULATIONS; COMPLIANCE WITH LAWS. Lessee shall, at Lessee's sole cost and expense, comply with all of the requirements of all city, co�unty, state and federal authorities now in force, or which may hereafter be in force, pertaining to Lessee's possession and use of the Premises,and shall faithfully observe in the use of the Premises all city and county ordinances and state and federal statutes and regulations, now in force or which may hereafter be in force. Lessee's possession and use of the Premises shall conform to a11 Airport rules and regulations and local building and fire codes. 19. HAZARDOUS MATERIALS. A. IIazardous substances or materials include, but are not limited to: 1. Substances which are flammable, explosive, corrosive,radioactive, toxic; 2. Any material or substances defined as hazardous substances,hazardous materials, toxic substances, or hazardous wastes in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Sections 9601, et seq.), the Resource Conservation and Recovery Act(42 U.S.C. Sections 6901, et seq.), the �Iazardous Waste Control Act (California Health & Safety Code Sections 25100, et seq.)the Hazardous Substance Account Act(California Heath & Safety Code Sections 25300, et seq.), California Nealth and Safety Code Section 252$0, et seq., Hazardous Materials Release Response P1ans and Inventory or the California Porter-Cologne Water Quality Control Act, (Water Code Sections 13000, et seq.), and a11 amendments to these laws and regulations adopted or publications promulgated pursuant to these laws; 3. Those asbestos-containing materials defined and described in Environmenta]. Protection Agency Report No. 56/5-85-024 (June 1985)whether or not friable, or any related or successor report, or other applicable government regulations defined or describing such materials; 4. Pesticides as defined by Section 136(u) of FIFRA (7 U.S.C. Section 136) as may be present in soil or groundwater; 5. "Hazardous wastes" as defined in Section 25117 of the California Health and Safety Code, or as a chemical that is known to the State of California "to cause cancer or reproductive toxicity" under the Safe Drinking Waster and Toxic Enforceinent Action of 1986, California Health and Safety Code Sections 25249.5, et seq.; and 6. Hazardous materials, substances or waste, or toxic materials, substances or waste as those ter�ns or similar terms are defined by any other federal, state or local law or regulation or orders. B. Lessee agrees to indemnify,protect,hold harmless, and defend City,its elected officials, officers, employees, agents and volunteers from and against any and all liability, including without limitation, (1) all foreseeable and unforeseeable consequential damages, directly or indirectly arising from the use generation, storage, or disposal of hazardous materials by Lessee, and (2) the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, to the full extent that s�uch liability is attributable, directly or indirectly, to the presence of use, generation, storage, release, threatened release, or disposal of hazardous materials by Lessee,its officers, employees, agents andlor invitees on the Premises or Airport after the beginning of the term of this Agreement. C. Lessee releases City from any and all claims Lessee may have against City of whatever kind or nature resulting from or in any way connected with the environmental condition of the Premises, including any and all claims Lessee may have against City under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), or any other federal, state, or local 1aw, whether statutory or common law, ordinance, or regulation pertaining to the release of hazardous materials into the environmental from or at the Premises. Lessee expressly waives the benefits of Civil Code Section 1542,which provides as follows: "A general release does not extend to claims which the creditor does not know or expect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." D. Lessee's obligations under this Section shall survive termination or expiration of this Agreement. 20. SECURITY. Lessee shall completely secure the Premises to prevent unauthorized access to the secure side of the Airport at all times. Lessee sha11 defend, indemnify, hold harmless and pay any fines imposed upon the City by the Federal Aviation Administration(FAA), Department of Homeland Security (DHS), or Transportation Security Administration (TSA) for violations of security caused by actions of Lessee or its agents, employees, or invitees. Lessee shall pay such fine within thirty (30) days of written notice from the City of the obligation to pay the fine. Failure to comply with the provisions of this Section is grounds for termination of this Agreement by the City. 21. FEDERAL REQUIREMENTS. To comply with Federal Aviation Administration requirements, Lessee and its officers, administrators,representatives, successors and assigns, as part of the consideration hereof, do hereby covenant and agree: A. GENERAL CIVIL RIGHTS PROVISIONS: The "Lessee" agrees to comply with pertinent statutes, Executive Orders and such rules as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. If the "Lessee" transfers its obligation to another, the transferee is obligated in the same manner as the "Lessee". This provision obligates the "Lessee" for the period during which the property is owned, used or possessed by the "Lessee" and the airport remains obligated to the Federal Aviation Administration. This provision is in addition to that required by Title VI of the Civil Rights Act of 1964. B. CIVIL RIGHTS—TITLE VI ASSURANCE: Title VI of the Civil Rights Act of 1964, as amended, (Title V� prohibits discrimination on the grounds of race, color, or national origin under any program or activity receiving Federal financial assistance. Sponsors Inust include appropriate clauses from the Standard DOT Title VI Assurances in all contracts and solicitations. C. SOLICITATION CLAUSE: The City of Redding, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 USC §§ 2000d to 2000d- 4) and the Regulations,hereby notifies all bidders or offerors that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award. D. CLAUSE— CONTRACTS: During the performance of this contract, the Lessee, for itself, its assignees,and successors in interest(hereinafter referred to as the"Lessee"), agrees as follows: l. Compliance with Regulations: The Lessee (hereinafter includes consultants) will comply with the Title VI List of Pertinent Nondiscrimination Acts and Authorities, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract. 2. Nondiscrimination: The Lessee, with regard to the work performed by it during the contract, wi11 not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Lessee 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 Lessee for work to be performed under a subcont�act, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the Lessee of the Lessee'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 Lessee 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 Nondiscrilnination 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 Lessee will so certify to the sponsor or the Federal Aviation Administration, as appropriate, and wi11 set forth what efforts it has made to obtain the information. 5. Sanctions for Noncompliance: In the event of a Lessee'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 Lessee under the contract until the Lessee complies; and/or b. Cancelling, terminating, or suspending a contract, in whole or in part. E. Incorporation of Provisions: The Lessee will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations, and directives issued pursuant thereto. The Lessee wi11 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 Lessee becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direction, the Lessee may request the sponsor to enter into any litigation to protect the interests of the sponsor. In addition, the Lessee may request the United States to enter into the litigation to protect the interests of the United States. F. CLAUSES FOR DEEDS TRANSFERRING LTNITED STATES PROPERTY: NOW, THEREFORE, the Federal Aviation Administration as authorized by law and upon the condition that the City of Redding wi11 accept title to the lands and maintain the project constructed thereon in accordance with Executive Order 9689, for the Surplus Property Act of 1944, and the policies and procedures prescribed by the Federal Aviation Administration of the U.S. Department of Transportation in accordance and in compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary,Part 21,N�on-discrimination in Federally-assisted programs of the U.S. Department of Transportation pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 ('78 Stat. 252; 42 USC § 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the City of Redding all the right, title and interest of the U.S. Department of Transportation/Federal Aviation Administration in and to said lands described in Exhibit A attached hereto and made a part hereof. HABENDUM CLAUSE: TO HAVE AND TO HOLD said lands and interests therein City of Redding and its successors forever, subject, however, to the covenants, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and will be binding on the City of Redding, its successors and assigns. The City of Redding, in consideration of the conveyance of said lands and interests in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, that (1) no person will on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed, (2) that the City of Redding will use the lands and interests in lands and interests in lands so conveyed, in compliance with all reguirements imposed by or pursuant to Title 49,Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non- discrimination in Federally-assisted programs of the U.S. Department of Transportation, Effectuation of Title VI of the Civi1 Rights Act of 1964, and as said Regulations and Acts may be amended, and (3) that in the event of breach of any of the above-mentioned nondiscrimination conditions, the Department will have a right to enter or re-enter said lands and facilities on said land, and that above described land and facilities will thereon revert to and vest in and become the absolute property of the Federal Aviation Administration and its assigns as such interest existed prior to this instruction. G. CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE AIRPORT IMPROVEMENT PROGRAM: A. The Lessee for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: 1. In the event facilities are constructed, maintained, or otherwise operated on the property described in this Agreement 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 Pertinent List of Nondiscrimination Authorities (as may be amended) such that no person on the grounds of race, color, or national origin, will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities. B. With respect to licenses, leases,permits, etc., in the event of breach of any of the above Nondiscrimination covenants, City of Redding will have the right to terminate the license and to enter,re-enter, and repossess said lands and facilities thereon, and hold the same as if the license 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 Redding will have the right to enter or re-enter the lands and facilities thereon, and the above described lands and facilities will there upon revert to and vest in and become the absolute property of the City of Redding and its assigns. H. CLAUSES FOR CONSTRUCTIONIUSE/ACCESS TO REAL PROPERTY ACQUIRED UNDER TI�E ACTIVITY, FACILITY OR PROGRAM: The following clauses will be included in deeds, licenses,permits, or similar instruments/agreements entered into by City of Redding pursuant to the provisions of the Airport Improvement Program grant assurances. A. The lessee for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (1) no person on the ground 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, (2) that in the construction of any improvements on, over, or under such land, and the furnishing of services thereon, no person on the ground of race, color, or national origin, wi11 be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the lessee wi11 use the premises in compliance with a11 other reguirements imposed by or pursuant to the List of discrimination Acts And Authorities. B. With respect to licenses, in the event of breach of any of the above nondiscrimination covenants, City of Redding will have the right to terminate the license and to enter or re-enter and repossess said land and the facilities thereon, and hold the same as if said license had never been made or issued. C. With respect to deeds, in the event of breach of any of the above nondiscrimination covenants, City of Redding will there upon revert to and vest in and become the absolute property of City of Redding and its assigns. L TITLE VI LIST OF PERTINENT NONDISCRIMINATION ACTS AND AI7THORITIES: During the performance of this contract, the Lessee, for itself, its assignees, and successors in interest(hereinafter referred to as the "Lessee") 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, colar, national origin); • 49 CFR part 21 (Non-discrimination in Federally-assisted programs of the Department of Transportation—Effectuation of Tit1e VI of the Civil Rights Act of 1964); • The Uniform Relocation Assistance and Rea1 Property Acquisition Policies Act of 1970, (42 USC § 4601) (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as amended(prohibits discrimination on the basis of disability); and 49 CFR part 27; • 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 §471, Section 47123), as amended (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987 (PL 100-209) (broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities"to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act of 1990, which 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 (42 USC §§ 12131 — 12189) 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 Environinental Justice in Minority Populations and Low-Income Populations, which 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-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 7408'7 to 74100); • Title IX of the Education Amendments of 19'72, as amended, which prohibits you from discriminating because of sex in education programs or activities(20 USC 1681 et sec�. J. Lessee acknowledges that City is subject to Federal Crrant Agreement obligations as a condition precedent to the granting of federal funds for improvements to the Airport, and,accordingly,Lessee agrees to,and agrees to be bound by,the following covenants provided by the Federal Aviation Administration as they may apply to Lessee. A. Lessee for itself,its personal representatives,successors in interest and assigns, as a part of consideration hereof, does hereby covenant and agree that in the event facilities are constructed,maintained,or otherwise operated on any areas occupied by Lessee and described in this Agreement for a purpose for which a DOT program or activity is extended or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such facilities and services in colnpliance with a11 other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. B. Lessee for itself,its personal representatives,successors in interest and assigns, as a part of consideration hereof, does hereby covenant and agree that: (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in use of the facilities, (2) that in the construction of any improvements on, over, or under any areas by Lessee and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination, (3)that Lessee shall occupy and use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations,Department of Transportation, Subtitle A,Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulations may be amended. C. That in the event of breach of any of the above nondiscrimination covenants, the City sha11 have the right to terminate this Agreement and to reenter and repossess the land and the areas occupied by Lessee and the facilities thereon, and hold the same as if this Agreement had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights. D. Lessee shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service. Lessee may be allotived to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers. E. Without limiting the generality of any other terms or provisions of this Agreement, non-compliance with subsection D above shall constitute a material breach thereof and in the event of such non-compliance the City shall have the right to terminate this Agreement and the estate hereby created without liability therefore or, at the election of the City or the United States, either or both Governments shall have the right to judicially enforce subsections A, B, C, and D. F. Lessee agrees that it sha11 insert the above �ve (5) provisions, subsection A through E, in any agreement by which Lessee grants a right or privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises. G. Lessee assures that it will comply with pertinent statues, executive orders and such rules as are promulgated to assure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or handicap be excluded from participating in any activity conducted with or benefitting from federal assistance. This section obligates Lessee or its transferee for the period during which federal assistance is extended to the Airport, except where federal assistance is to provide, or is in the form of personal property or real property or interest therein or structures or improvements thereon. In these cases, this subsection obligates Lessee or any transferee for the longer of the following periods: (a) the period during which the property is used by City or any transferee for a purpose for which federal assistance is extended, or for any purpose involving the provision of similar services or benefits; or (b) the period during which City or any transferee retains ownership or possession of the property. In the case of Lessees,this subsection binds the subsection binds the Lessees from the bid solicitation period through the completion of the contract. H. Lessee agrees to adopt and enforce workplace safety policies to decrease crashes caused by distracted drivers including policies to ban text messaging while driving when performing any work for, or on behalf of, the Federal government, including work related to a grant or sub-grant. I. Lessee agrees to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as: 1. Establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving; and 2. Education, awareness, and other outreach to employees about the safety risks associated with texting while driving. J. The City reserves the right, but shall not be obligated to Lessee to maintain and keep in repair the landing area of the airport and a11 publicly-owned facilities of the airport,together with the right to direct and control all activities of Lessee in this regard. K. The City reserves the right to further develop or improve the landing area of the airport as it sees fit,regardless of the desires or view of Lessee and without interference or hindrance. L. This Agreement shall be subordinate to the provisions and requirements of any existing or fut�ure agreement between the City and the United States relative to the use, development, operation, security or maintenance of the airport, the execution of which is or may be required by the United States as a condition precedent to the grant or expenditure of federal funds for the Airport. M. There is hereby reserved to the City, its successors and assigns,for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises herein leased. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from or operation on the Redding Regional Airport. N. Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event future construction of a building is planned for the Preinises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises. O. Lessee, its officers, administrators, representatives, successors, and assigns will not erect nor permit the erection of any structure or object, nor permit the growth of any tree or vegetation on the Airport to a height above the mean sea level that would exceed Federal Aviation Regulations Part 77 standards or elevations affecting Airport navigable airspace. In the event the aforesaid covenants are breached, the City reserves the right to enter upon the Premises and to remove the offending structure or object and cut the offending tree or vegetation, all of which shall be at the expense of Lessee. P. Lessee,its officers,administrators,representatives,successors and assigns wi11 not make use of the Premises in any manner which might interfere with the landing and taking off of aircraft from Redding Regional Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the City reserves the right to enter upon the Premises and cause the abatement of such interference at the expense of Lessee. Q. This Agreement and all the provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation and taking over of the Redding Regional Airport or the exclusive or non-exclusive use of the Airport by the United States during the time of war or national emergency. Lessee agrees that this Agreement is subject to the ongoing jurisdiction of the United States of America and that if the provisions set forth in this Section 23 are altered, amended or changed in any way by an agency having jurisdiction over the Airport, the Lessee hereby agrees to amendment of this Agreement in order to adopt any such changes. 22. DAMAGE; DESTRUCTION. A. If the Premises are so damaged or destroyed by fire, flood, earthquake, the elements, casualty, war,riot,public disorder, or any other cause not the fault of Lessee, its officers, employees, agents or invitees so as to render the entire Premises unusable for Lessee's operations, the Lessee shall have the option to either repair the Premises or terminate this Agreement. In the event that the Lessee elects to terminate this Agreement, rent for the month in which the Premises are damaged sha11 be prorated and the unearned portion refunded to Lessee within three (3) days of the Lessee's election to terminate this Agreement. Notwithstanding, Lessee shall bear the cost of removing all material, structures and improvements from the Premises and City may recover as a set-off to rent to be returned to Lessee pursuant to this subdivision or by any other means afforded to it in law or equity the cost of removing the saine if Lessee does not do so within thirty(30) calendar days of City having deposited notice to Lessee of its obligation as set forth herein." B. If the Preinises are partially damaged or rendered partially unusable by fire, flood, earthquake, the elements, casualty, war,riot, public disorder, or any other cause not the fault of City, its officers or employees, City shall give the Lessee written notice of such damage, and if the Lessee does not commence repairs within thirty(30) calendar days from the date of the notice, City may elect to ter�ninate this Agreement by giving written notice to the Lessee of City's election to terminate this Agreement. If City elects not to terminate this Agreement, this Agreement shall continue in full force and effect except that the damage to the Premises sha11 be repaired by and at the expense of the Lessee and until such repair is substantially completed so that full use and occupancy of the Premises by Lessee is possible, the rent shall be apportioned according to the portion of the Premises which remains useable. If such repairs are not completed within one hundred eighty(180) calendar days from the date of the City's notice of the damage, City may terminate this Agreement by giving Lessee written notice within ten(10) calendar days of the expiration of the one hundred eighty(180) calendar day period of the City's election to terminate this Agreement. 23. DEFAULT. A. The occurrence of any of the following sha11 constitute a material breach or default of this Agreeinent by Lessee: l. Failure to pay any payment due under this Agreement when due, if the failure to pay continues for five (5) days after notice of the failure has been given to Lessee; 2. Failure to perform any other provision of this Agreement if the failure to perform is not cured within thirty(30) days after notice of the failure has been given to Lessee. If the breach or default cannot be reasonably cured within thirty(30) days, Lessee shall not be in breach or default of this Agreement if Lessee commences to cure the breach or default within the thirty (30) day period and diligently and in good faith continues to cure the default. 3. Failure to maintain current licenses, if any, required for the permitted operation. 4. Intentionally supp]ying the City with false or misleading information or misrepresenting any material fact on documents or in statements to or before the City and its employees, or the intentional failure to make fu11 disclosure on a financial statement or other required documents. B. Notices given under this section sha11 be made in writing, and shall specify the alleged breach or default, and shall demand that Lessee perform the provisions of this Agreeinent or pay the payment that is in arrears, as the case may be, within the applicable time period, or this Agreement is terminated. No such notice shall be deemed a forfeiture or a termination of this Agreement unless the City so elects in the notice. C. The City, at any time after Lessee commits a breach or default of this Agreement, can cure the breach or default at Lessee's cost. If the City, at any time, by reason of 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 subj ect 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. 24. CITY'S REMEDIES FOR DEFAULT. A. Termination of Lease. Upon the occurrence of a default that is not timely cured by Lessee, the City may immediately terminate this Agreement and recover possession of the Premises. Once the City has terminated this Agreement, Lessee shall immediately surrender the Premises to the City. On termination of this Agreement, the City Inay recover from L,essee all of the following: l. The worth at the time of the award of any unpaid rent that had been earned at the time of the termination, to be computed by allowing interest at the maximum amount of interest permitted by law; 2. Any difference in the rent owed going forward less the rent from a new tenant as multiplied by the number of months remaining on the term; 3. Any other amount necessary to reasonable compensate the City for all the detriment proximately caused by Lessee's failure to perform obligations under this Agreement, including brokerage commissions and advertising expenses, expenses of remodeling the Premises for a new Lessee (whether for the same or a different use), and any special concessions made to obtain a new Lessee; and 4. Any other reasonable amounts, in addition to or in lieu of those listed above, that may be permitted by applicable law. B. Continuation of Lease in Effect: Upon the occurrence of a default that is not timely cured by Lessee, the City sha11 have the remedy described in Civil Code section 1951.4, which provides that, when a Lessee has the right to sublet or assign (subject only to reasonable limitations), the City may continue the lease in effect after the Lessee's breach and abandonment and recover rent as it becomes due. Accordingly, if the City does not elect to terminate this Agreement on account of any default by Lessee, the City may enforce all of the City's rights and remedies under this Agreement, including the right to recover a11 rent as it becomes due. 25. SURRENDER OF PREMISES. On the expiration, cancellation or termination of this Agreement, Lessee shall surrender possession of the Premise to City, deliver all keys to any locks on the Premises and make known to City the combination of any combination locks on the Premises. Lessee shall reimburse City for any damage done to the Preinises caused by Lessee's use of the Premises or Lessee's actions or omissions other than normal wear and tear. Lessee shall remove all its personal properry on or before the date of expiration, cancellation or termination of the Agreement. 26. ADMINISTRATION BY CITY. Whenever Lessee is required to secure the approval or consent of the City pursuant to this Agreement, the City sha11 mean the Airports Manager. When the Mayor is signatory to this Agreement,the Airports Manager shall have authority to execute any amendment to this Agreement which does not decrease the amount of compensation allowable to City, or otherwise substantially change the nature or scope of the agreement provided herein. 27. VOLUNTEER ASSISTANCE. Under no circumstances will Lessee use City employees whom are on duty to perform work at the Premises, Under no circumstances will Lessee use City employees whom are off duty to perform work at the Premises if the nature of the work is substantially similar to the employee's regular work duties for the City. 28. SIGNS. The size and location of signs, banners, flags, etc., located off of the Airport advertising the activities of Lessee shall be subject to the City's sign ordinance (Redding Municipal Code Chapter 18.42.) The size and location of signs, banners, flags, etc., located on the Premises or at the Airport shall be subject to the prior written approval and control of the Airports Manager. 29. NOTICES. All notices, requests, demands and other communications hereunder shall be deemed given on]y if in writing signed by an authorized representative of the sender and personally delivered to the City or Lessee, or in lieu of such personal service, sent by United States mai1, registered or certified, return receipt requested, or delivered by facsimile, with a hard copy mailed first class,postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows: TO THE CITY: TO LESSEE: City of Redding Lessee Entity Attn.: Airports Manager Attn: Contact Narrze, Title 6751 Woodrum Circle, #200 Address Line 1 Redding, CA 96002 City, State ZIP Either party may change its address for the purposes of this section by giving written no�ice of such change to the other party in the manner provided in this section. 30. BINDING ON I-IEIRS AND SUCCESSORS. This Agreement shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors, and assigns of the parties hereto, but nothing in this Section shall be construed as a consent by City to any assignment of this Agreement or any interest in the Agreement by Lessee except as provided in Section 13 of this Agreement. 31. ATTORNEY'S FEES. In any dispute between the City and Lessee,whether or not resulting in litigation,the prevailing party shall be entitled to recover from the other party all reasonable costs, including without limitation, reasonable attorney's fees. "Prevailing party" shall include without limitation, a party who dismisses an action for specific performance or for damages in exchange for sums allegedly due, performance for covenants allegedly breached or consideration substantially equal to the relief sought in the action, or which receives from the other party, in connection with any dispute, performance substantially equivalent to any ofthese. 32. HEADINGS AND REFERENCE AND WAIVER. The titles and headings in this Agreement are inserted for convenience only and sha11 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. 33. NO PARTY DEElVIED DRAFTER. In the event of a dispute between any of the parties hereto over the meaning of this Agreement, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civi1 Code §1654 that contracts are construed against the drafter shall not apply. 34. CALIFORNIA LAW. This Agreement shall be deemed to have been entered into in Redding, California. A11 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. 35. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every provision therein. 36. ENTIRE AGREEMENT. This Agreement, which includes all exhibits attached hereto and incorporated by reference herein, contains all the representations and the entire understanding and agreement between the parties pertaining to the use of the Premises or any other matters connected therewith. All correspondence, memoranda, or oral or written agreements pertaining to the Premises or the parties hereto, which originated before the date of this Agreement are nu11, void and no longer in force and with no effect, and are replaced in total with this Agreement unless otherwise expressly stated in this Agreement. 37. MODIFICATION OF LEASE. This Agreement sha11 not be altered, amended, or modified except by a writing signed by City and Lessee. 38. SEVERABILITY. 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. 39. AUTHORITY. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Facilities and Ground Lease on behalf of the respective parties to this Agreement, that they have full right, power and lawful authority to undertake all obligations as provided in this Agreement; and that the execution, performance and delivery of this Agreement by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Agreement. 40. DATE OF AGREEMENT. The date of this Agreement sha11 be the date it is signed by the City. IN WITNESS THEREOF, City and Lessee have executed this Agreement on the days and year set forth below. CITY OF REDDING Dated: , 2023 By: MICHAEL DACQUISTO,Mayor Attest: Approved as to Form: BARRY E. DeWALT City Attorney PAMELA MIZE, City Clerk By: LESSEE ENTITY Dated: , 2023 By: Lessee Signatory,Signatory Title Attachments—Exhibit A,P�operty Desc�iption Exhibit B,Legal Description CITY OF REDDING, CALIFORNIA REQiJEST FOR PROPOSALS GENERAL CONDITIONS 1. PUBtiIC INFORMATION A11 submitted proposals and information included therein or attaehed thereto sha11 become public record upon their delivery to the City. Proposals may be reviewed by outside interested parties after a11 proposals received for a particular project have been reviewed and the intended awardee has been selected. By submission of a proposal, Consultant understands and agrees that the City of Redding is subject to the California Public Records Act(Cal. Gov. Code section 62500 et seq.), and that all or part of the proposal submitted by Consultant may be subject to disclosure therein regardless of whether the proposal or part thereof is marked as proprietary. The City reserves sole discretion to determine whether disclosure is necessary under State law, and Consultant hereby releases City from all liability relating to such disclosure. City shall have no obligation to litigate the issue of disclosure under the Act on behalf of Consultant. 2. RFP ADDENDA The City of Redding reserves the right to amend, alter, or revoke this RFP in any manner at any time. At the City's sole discretion, modifications, clarifications, or additions will be distributed as an addendum to all known proposers. It is the responsibility of all interested parties to verify the existence of addenda (check Purchasing's website at v�w�o�ity�f�°�dd�n�.��/I��zr��sin �ic�s or calU email the stated City contact). 3. PROPOSAL PREPARATION COSTS A11 costs incurred in the preparation and presentation of this proposal sha11 be wholly absorbed by the vendor. 4. PROPOSALS All proposals wi11 be firm for a period of ninety(90) calendar days following the required date of submission unless an alternate time frame is stated in the Request for Proposal. 5. DEVIATIONS If there are any deviations from the specifications set forth herein,the bidder shall note the deviations in his proposal. Failure to note a deviation from the specifications may be grounds for rejection by the City of that particular proposal. Where deviations are noted, the City reserves the right to accept a proposal containing such deviations provided that,in the sole opinion of the City, the deviation or deviations so noted do not affect the overall capability of the alternative item or process proposed to perform the function for which it is to be acquired and such deviations result in lesser total cost to the City for the subject item or service. Page 1 of 3 6. WITHDRAWAL OF PROPOSAL Any proposer may withdraw their proposal, either personally or by written request at any time prior to the scheduled closing time for the receipt of proposals. Such requests are to be directed to the City Clerk. 7. SELECTION PROCEDURES Proposals submitted wi11 be subject to the City's selection procedures for technical and/or professional consultants. Accordingly,final selection wi11 be based upon overall capability to perform services and not exclusively upon cost of services. The City may make any investigation it deems necessary to determine the ability of a Proposer to carry out the obligations indicated in the Request for Proposal and the submitted Proposal. At the City's sole discretion, the Proposer shall furnish to the City aIl information and data for this purpose if materials submitted by, or investigation of, any Proposer fails to satisfy the City that the Proposer is properly qualified to carry out the stated obligations. The City of Redding reserves the right to accept the proposal that is in the best interest of the City. The City's decision shall be final. 8. RIGI-IT TO REJECT PROPOSALS The City reserves the right to reject any and all proposals, to waive any non-material irregularities or information in any proposal, and to accept or reject any combination of items. 9. AWARD OF CONTRACT The award of the contract, if it is awarded, shall be made on the basis of availability of budgeted funds and to a responsible Contractor who presents the best value to the City per Redding 1VIunicipal Code 4.20.040(C). 4.20.Q4Q(C) �'�ocu�e fc�� the city the a�eeded quality in sup�lies, s��^vices ancl equipment that prove ta 13e the best value to the city. Dete�°minati�n of b�st vc�lue may ta1�e into consideration additional elements Iaeyo�ad eost�such as war�anty, life cycle related c�sts, lec�d tiTne, desi�ed aestheties, wo�k expe�ience c�s ver^ified thr�ugh re,f'e�ences o�° w��k exarnples, vendc�r loeataon,p�ior�wo�k�with the eity o�oth��^facto�s r�eemed relevant by the purchasin� offtcet^ in the��°acuretnent c�f th� n�ed�d sup�lies, equi�ament o� tivo�k ta b� perfor•mecl. . . 10. CITY OF REDDING BUSiNESS LICENSE The awarded Vendor/Consultant may be required to obtain a City of Redding Business License per Il��ni�al. �c�d� 6,02—I3�s��ss I,i��s�s. Page 2 of 3 6.02.020 It is unlawful for any pe�^son to be engaged in business in the city without having a vczlid license from the city to do so, in compliance with any and all regulations contained in this chapter pertaining to the business, unless the person is exempt under the provisions of this chapte�. No person who is an employee, o� the direct representative of a licensee, shall be Nequired to pay a license fee for doing any part of the wo�k of the licensee. The selected firm shall exeeute an agreement with the City within ten (10) working days after notification of selection,unless the time for execution has been extended for good cause at the sole discretion of the City. Failure of the selected firm to meet contract submission requirements (e.g. insurance)or failure to timely execute an agreement with the City may result,in the sole discretion. of the City, a decision to select from the remaining proposers or to eall for new proposals. x��.ovlv2o Page 3 of 3 GROUND LEASE AGREEMENT THIS AGREEMENT is made by and between the City of Redding, a municipal corporation ("City"), and Redding Jet Center, LLC, Inc. a California Corporation ("Lessee"). RECITALS A. The City owns and operates the Redding Regional Airport("Airport"). B. Lessee desires to lease approximately 85,832 square feet of ground space to use and develop an above ground fuel farm, and mobile fuel vehicle storage in support of its fixed based operation activities at the Redding Jet Center. AGREEMENT 1. PREMISES. Lessee leases from the City and the City leases to Lessee on the terms and conditions contained in this Agreement, 85,832 ground area, located adjacent to their fixed based operations at 37�5 Flight Avenue, described in Exhibit A and depicted in Exhibit B, attached hereto and incorporated herein by reference, (known hereafter as the "Premises"). 2. TERM. A. The initial term of this Agreement shall be for the period commencing on June 1, 2024, and expiring on May 31, 2054. B. So long as Lessee is not in default under this Agreement, Lessee shall have two (2) five (5) year options to extend the term of this Agreement. If Lessee exercises such option(s}, all of the terms of this Lease Agreement shall remain in full force and effect, with the exception of this clause covering Lessee's option to renew. The option(s) shall be exercised by written notice addressed to City no less than ninety (90) calendar days prior to the expiration of the then current Lease term. C. Lessee shall exercise the option to extend the term by written notice to the City no less than ninety (90) days prior to the expiration of the initial term. Failure to exercise the option may, in the City's sole discretion, be considered a forfeiture of the right to exercise the option. 3. USE. A. The premises are leased to Lessee for the sole purpose of developing and constructing an above ground fuel storage facility (four— 30,000-gallon Jet A tanks, one —20,000- gallon Avgas tank and one — 1,000 MOGAS/Diesel gallon tank) and associated pavement improvements to provide primary storage for mobile refueling vehicles as part of its fixed based operation activities. Lessee shall not use or permit the Premises to be used for any other purposes without the prior written Facilities and Ground Lease Agreement—Redding,Iet Center, LLC Page 2 consent of the City. B. Lessee shall not engage in the sale or provision of alcoholic beverages at the Premises or Airport without the prior written consent of the City. 4 PERMIT FOR COMMERCIAL ACTIVITIES. This Agreement shall also constitute a Permit for Commercial Activities ("Permit"), and the terms hereof shall constitute the terms far a permit for commercial activities required by Redding Municipal Code Section 3.08.030. The City Council of the City has determined that these commercial activities are compatible with the use of the Airport, and that the best interests of the public and the City of Redding will be served by approval of such commercial activities. A breach or default in the terms of this Agreement shall constitute a breach of the Permit. 5 RENTAL PAYMENTS. A. The monthly rent to be paid by Lessee to the City under this Agreement during the term of this Agreement, shall be the following: 1. For the period June 1, 2024, through May 31, 2025, the initial Base Rent to be paid by Lessee for the Premises shall be $1,587.89 per month. 2. For the period beginning June l, 2025, through May 31, 2026, the initial Base Rent to be paid by Lessee for the Premises shall be $3,690.71 per month. For the period beginning June l, 2026, and upon the commencement of each additional twelve (12} month period thereafter, through May 31, 2054, the monthly rent shall equal the monthly Base Rent during the immediately preceding year increased by the change in United States Bureau of Labor Statistics National Consumer Price Index (CPI-U) for the San Francisco- Oakland-Hayward area over such preceding twelve-month(12)period. 3. Lessee shall have two five-year options to extend the term of this Lease. Such options shall extend the initial 30-year term of this Lease for two additional five-year periods, to April 30, 2058, and April 30, 2063, respectively. During any extension, and upon the commencement of each additional twelve (12) month period, the monthly rent shall equal the monthly Base Rent during the immediately preceding year increased by the change in United States Bureau of Labor Statistics National Consumer Price Index (CPI-U) for the San Francisco- Oakland-Hayward area over such preceding twelve-month (12) period. If Lessee exercises such option(s), all of the terms of this Lease Agreement shall remain in full force and effect, with the exception of this clause covering Lessee' s option to renew. The option(s} shall be exercised by written notice addressed by Lessee to Lessor no less than ninety (90) days prior to the expiration of the then current Lease term. B. Lessee shall pay to the City all rent for the Premises and all other payments, if any, Facilities and Ground�ease Agreement—Redding.Tet Center, LLC Page 3 required by this Agreement, without deduction, set off, prior notice or demand on or before the twenty fifth (25ih) day of the month. Payments not paid when due are subject to late fees and penalty charges as shown in the City's then current Schedule of Fees and Charges. Rent for any partial month shall be prorated based on a thirty (30) day month. G AIRCRAFT FUEL FLOWAGE FEES. Fuel Flowage Fees. In consideration of the privilege to conduct aircraft refueling on the property, and not as rent, Operator shall pay to the city a fuel flowage fee calculated in cents and mils per gallon, at the rate established for all refueling operations at the Redding Municipal Airport by resolution of Redding's City Council. The fuel flowage fee shall be paid on a monthly basis, no later than the twentieth (20`h) day of the month following the billing period, and shall be based upon the number of gallons of aviation fuel delivered at the Redding Municipal Airport to Operator, as indicated by the monthly bill of lading. Operator may refuel aircraft by way of truck, above ground, or below ground tanks or a combination thereof, as Operator sees fit and at Operator's sole option, provided, however, that all refueling facilities at all times comply with all applicable safety and environmental laws, standards, as stated in Section 20. 7. UTILITIES. Lessee shall make arrangements for the provision and payment prior to delinquency of any and all utility charges furnished to the Premises, including without limitation, electricity, gas, water, sewer (if the facilities are connected to the sewer in the future), telephone services, garbage and rubbish removal and other public utilities. The City shall have no responsibility to pay for utilities furnished to the Premises, and Lessee shall hold the City free and harmless from all charges for the furnishing of utilities to the Premises. 8 TAXES. A. 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. B. Lessee shall promptly pay before delinquency any taxes and/or special assessments assessed against the Premises and any improvements and/or Lessee's personal property, and any possessory interest tax levied by reason of its use and/ar occupancy of the Premises. On demand from the City, Lessee shall furnish the City with satisfactory evidence of these payments. 9 CONSTRUCTION BY LESSEE. A. Duty to Construct. Lessee shall, at Lessee's sole cost and expense, construct or cause to be constructed on the Premises, six (6} Aboveground Storage Tank (AST) Foundations (four—30,000 gallon tanks, one—20,000 gallon tank, and ane— 1,000 gallon tank as Facilities and Ground Lease Agreement—Redding,Iet Center, LLC Page 4 described in Section 3) and pavement improvements comprised of a minimum of three (3) inches of asphalt concrete over seven (7) inches of base aggregate and other related improvements ( "Apron") adjacent to the Premises, in the manner and according to the terms and conditions specified in this Article and shall be subject to any necessary permits as required by Redding Municipal Code thereby meeting the requirements of the City Zoning Ordinance, California Buildings Standards Code and the California Fire Code. The duty to construct for the AST foundations and pavement improvements and any other improvements includes the duty for site preparation, including the removal, if necessary, of any buildings or other structures located on the Premises, the installation or relocation of any utilities and the obtaining of any and all necessary permits, including building and planning permits. B. Requirement of City's Written Approval. l. Nothing contained in this Article 8 is intended to address the requirements or timing of the City of Redding Development Services Department. The City's approval pursuant to this Section is not intended to be, nor shall it be deemed to be, approval for purposes of receiving a building or use permit. 2. No structure or other improvement of any kind shall be constructed on the Premises unless and until the plans, specifications, and proposed location of that structure or improvement have been approved in writing by the Airports Manager. The submission of plans for the Airports Manager's approval is for review of preliminary site layout plans and elevations of all improvements and is not intended to be nor shall it be deemed a submission for purposes of receiving a building or use permit. Furthermore, no structure or other improvements shall be constructed on the Premises that do not comply with plans, specifications, and locations approved in writing by City. C. Preparation and Submission of Plans. Lessee shall, at Lessee's own cost and expense, engage a licensed architect or engineer to prepare plans and specifications for above ground fuel storage and pavement improvements and shall submit to the Airports Manager for approval: 1. Within twelve (12)months after the effective date of this Lease, two copies of: a Drawings and materials in the form of preliminary plans and elevations sufficient to convey the architectural design of the above ground fuel storage facility to the Airports Manager, and b. A statement of estimated construction costs for the above ground fuel storage facility prepared by the engaged architect or engineer. 2. The plans and specifications may be submitted to the City Planning and Building Divisions concurrent with the Airports Manager's review. Facilities and Grozcnd Lease Agreement—Redding.Iet Center, LLC Page 5 3. Within ninety (90) calendar days after approval by Airports Manager of the items specified in Subsection (1} of this Subdivision C, and the obtaining by Lessee of any building permit, variance, use permit, or rezoning or administrative permit required for above ground fuel storage facility and pavement improvements, Lessee shall provide the Airports Manager two (2) copies of: a Detailed working drawings, plans, and specifications for the above ground fuel storage facility and pavement improvements; and b. A revised statement of estimated construction costs for the above ground fuel storage facility and pavement improvements prepared by the engaged architect or engineer. D. City's Approval or Rejection of Plans. Within fifteen (15) days after receipt by Airports Manager of any of the documents submitted to City for approval pursuant to Section 9C of this Lease, the Airports Manager shall either approve those documents by endorsing City's approval on each such document and returning one set of the documents to Lessee, or the Airports Manager shall give written notice to Lessee of any objections City may have to those documents. Within thirty (30) days after service on Lessee of the written notice of City's objections, Lessee shall deliver corrective amendments to the documents to the Airports Manager and City shall, within ten (10) days after receiving the corrective amendments, serve written notice on Lessee of City's approval or rejection of the documents as so amended. City's failure to comply with the times stated herein shall not constitute approval of Lessee's plans. E. Changes in Plans. After approval by the Airports Manager of the documents described in Section 9.C.3 of this Lease, any material change in the plans or specifications for all improvements shall be approved by the City. City shall give written notice to Lessee of any objections City may have to any proposed changes within twenty (20) days after a written statement of the proposed changes has been given to City by Lessee. Minor changes in work or materials need not be approved by City but a copy of the altered plans and specifications reflecting those changes shall be given to City. For the purposes of this Section, "minor change" means one that does not materially change the exterior appearance, internal plan, location on the Premises or result in a change in the cost of construction of more than Ten Thousand Dollars ($10,000.00). All other changes are material. F. All Work Under Direction and Supervision of Licensed Contractor. All work required in the construction of the above ground fuel storage facility and pavement improvements, including site preparation work, landscaping work, and utility installation work, as well as actual construction work on the above ground fuel storage facility and pavement improvements, shall be performed under the direction and supervision of a competent contractor(s) licensed and in good standing under the laws of the State of California. Such contractor(s) may be an employee of Lessee and shall have a current class B General Contractor's license issued by the State of California. Facilities and Graund Lease Agreement—Redding Jet Center, LLC Page 6 1. Lessee shall record that Certificate of Completion promptly within the time specified by law for the recording of that notice; and 2. Lessee shall settle and discharge all liens of record claimed by persons who supplied either labor or materials for the construction of the improvements. G. Compliance With Law and Standards. The above ground fuel storage facility and pavement improvements shall be constructed, all work on the Premises shall be performed, and all buildings or other improvements on the Premises shall be erected in accordance with all valid laws, ordinances, regulations, and orders of all federal, state, county, or local governmental agencies or entities having jurisdiction over the Premises; provided, however, that any structure or other improvement erected on the Premises, including the above ground fuel storage facility and pavement improvements, shall be deemed to have been constructed in full compliance with all such valid laws, ordinances, regulations, and orders when a valid final Certificate of Occupancy entitling Lessee and sublessees, is so authorized, of Lessee to occupy and use the structure or other improvement has been duly issued by proper governmental agencies or entities. All work performed pursuant to this Lease, or authorized by this Lease, shall be done in a good workmanlike manner and only with new materials of good quality and high standard. H. Time for Completion. Lessee shall begin substantial construction of the above ground fuel storage facility and pavement improvements, pursuant to acquisition of a valid building permit, within twelve (12) months of the effective date of this Lease. Lessee shall cause construction of the above ground fuel storage facility and pavement improvements to thereafter be diligently pursued without unnecessary interruption and shall cause the above ground fuel storage facility and pavement improvements to be completed not later than twelve (12) months after commencement of its construction. Lessee shall be excused for any delays in construction or commencement of construction caused by the act of the act of any public enemy, acts of God, the elements, war, war defense conditions, litigation, strikes, walkouts, or other causes beyond Lessee's reasonable control. Lessee shall, however, use reasonable diligence to avoid any such delay and to resume construction as promptly as possible after the delay. I. Mechanics' Liens. l. At all times during the term of this Lease, Lessee shall keep the Premises and all improvements now or hereafter located on the Premises free and clear of all liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Premises. 2. Should Lessee fail to pay and discharge or cause the Premises to be released from any such lien or claim of lien within twenty (20) days after service on Lessee of written request from City to do so, City may pay, adjust, compromise, Facilities and Ground Lease Agreement—Redding Jet Center, �LC Page 7 and discharge any such lien or claim of lien on any terms and in any manner that City may deem appropriate unless Lessee is in good faith contesting, opposing or objecting to such lien or claim of lien in compliance with subsection (3) below. In the event Lessee so fails to pay and discharge or cause the Premises to be released from any such lien or claim of lien, Lessee shall, on or before the first day of the next calendar month following any such payment by City, reimburse City for the full amount paid by City in paying, adjusting, compromising, and discharging that lien or claim of lien, including any attorneys' fees or other costs expended by City, and late fees and penalty charges, as appropriate, as shown in City's then current Schedule of Fees, together with interest at the then-maximum legal rate from the date of payment by City to the date of repayment by Lessee. 3. Lessee shall have the right to contest, oppose or object in good faith to the amount or the validity of any liens and claims of liens for labor, services, materials, supplies, or equipment performed on or furnished to the Premises, provided that written notice of the contest, opposition or objection must be given to City at least five (5) days prior to Lessee making or filing the contest, opposition or objection. Lessee shall be responsible for and shall pay all costs and expenses in any contest or legal proceeding instituted by Lessee. In rio event shall City be subjected to any liability for costs or expenses connected to any contest, and Lessee agrees to indemnify and hold City harmless from any such costs and expenses. Furthermore, no such contest, opposition, or objection shall be continued or maintained unless Lessee has provided to City such further written assurances as City may require within ten (10) days of City's written request. J. Zoning and Use Permits. Should Lessee deem it necessary or appropriate to obtain any building permit, use permit, variance, rezoning or administrative permit for the Premises in order to construct or operate the above ground fuel storage facility and pavement improvements, City agrees to execute any documents, petitions, applications, and authorizations that may be necessary or appropriate; provided, however, that any such permits, variances, or rezoning shall be obtained at the sole cost and expense of Lessee and Lessee agrees to protect and save City and the property of City, including the Premises, free and harmless from any such cost and expense. K. Ownership of Improvements. 1. Title to all improvements, including the Above Ground Storage Foundations and pavement improvements, to be constructed on the Premises by Lessee shall be owned by Lessee until expiration of thirty (30) years from the commencement date of this Lease or earlier termination of this Lease. All improvements including the Above Ground Storage Foundations and pavement improvements, on the Premises at the expiration of the term or earlier termination of this Lease shall, without compensation to Lessee, then automatically and without any act of Lessee or any third party become City's Facilities and Ground Lease Agreement—Redding.Iet Center, LLC Page 8 property. Lessee shall surrender the improvements to City at the expiration of the term or earlier termination of this Lease, free and clear of all liens and encumbrances, other than those, if any, permitted under this Lease or otherwise created or consented to by City. Without taking any action to alter the function or habitability of the improvements or to reduce the economic value of the same, Lessee agrees to execute, acknowledge, and deliver to City any instrument requested by City as necessary in City's opinion to perfect City's right, title, and interest to the improvements and the Premises. 2. Lessee shall have the right to remove such personal property, machinery, and equipment as may be removed without threat to the structural integrity of any building or improvement. If damage results from the removal of any such items, Lessee shall repair such damage at its sole expense. 1Q 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 attorneys' fees and other costs of defense incurred by the City, whether for damage to or loss of property or injury to or death of person(s), including properties of the City and injury to or death of the City's officers, officials, employees, agents and volunteers, arising out of or resulting from Lessee's possession or use of the Premises or activities hereunder or from the actions of Lessee's officers, employees, agents and invitees, unless such damage, loss, injury or death is caused by the sole negligence or willful misconduct of the City. Lessee's obligations under this Sectian shall survive termination or expiration of this Agreement. 11. INSURANCE. A. Unless modified in writing by City's Risk Manager, Lessee shall maintain, during the duration of this Agreement, the following insurance from an insurance company authorized to do business in the State of California. The cost of such insurance shall be borne by Lessee. Subject to policy terms, conditions, limitations and exclusions, coverage shall be at least as broad as: l. Insurance Services Office form number CG-00 O1, Commercial General Liability Insurance, in an amount not less than $2,000,000 per occurrence and $4,000,000 general aggregate for bodily injury and property damage liability, personal injury and advertising injury liability, medical payments and, as applicable, products-completed operations coverage, explosion, fueling, defueling and refueling operations. 2. Aircraft Liability, in respect of all aircraft owned, leased, hired, borrowed or operated, including passengers and non-passengers, and including contractual liability coverage in an amount not less than $1,000,000 per each occurrence for bodily injury and property damage, with a sublimit per passenger of no less than $100,000. Facilities and Ground Lease Agreement—Redding,Iet Center, LLC Page 9 3. Insurance Services Office form number CA-0001 (Ed. 1/87), Comprehensive Automabile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all Lessee's owned, non-owned and hired vehicles. 4. 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. 5. Pollution Liability, no less than $1,000,000 per loss and $1,000,000 annually for aggregates, for sudden and non-sudden pollution conditions resulting from the use of above-ground storage tanks and/or hazardous materials or substances that may be stored on airport premises. Coverage shall apply to bodily injury, property damage, including the loss of use of damaged property or of property that has no been physically injured or destroyed, cleanup costs, and defense costs, including costs and expenses incurred in the investigation, defense, and settlement of claims. 6. Property Insurance against all risks of loss to any tenant improvements, betterments, and contents at full replacement value. The property insurance policy shall contain a waiver of subrogation in favor of City, its officers, officials, agents, employees and volunteers. B. Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. C. Other Insurance Provisions. The general liability policies are to contain or be endorsed to contain the following provisions: 1. The City, its officers, officials, employees, agents, and volunteers are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Lessee; premises leased or used by Lessee; or automobiles owned, leased, hired or borrowed by the Lessee. The coverage shall contain no special limitations of the scope of protection afforded to the City, its officers, officials, employees, agents, or volunteers. 2. City, its eleeted officials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of consultant; premises owned, leased or used by Consultant; or automobiles owned, leased, hired or borrowed by Consultant. 3. Lessee's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, agents, or volunteers but only as respects claims arising from the sole negligence of the Lessee. Any insurance or self-insurance Facilities crnd Grotcnd Lease Agreement—Redding Jet Center, LLC Page 10 maintained by the City, its officers, officials, employees, agents or volunteers shall be excess of the Lessee's insurance and shall not contribute with it. 4. Coverage shall state that Lessee's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. D. Cancellation Clause. Each insurance policy required by this section shall be endorsed to state that coverage shall not be canceled except after thirty (30) days' prior written notice has been given to the City. E. Certificate Holder. The Certificate Holder shall be the City of Redding, 777 Cypress Avenue, Redding CA 96001. F. Sublessees. Sublessees shall be required to procure and maintain insurance applicable to their service and/or operation and meet the insurance requirements set forth in this Section. City shall determine the type(s) of insurance to be provided by Sublessee. G. Acceptability of Insurers. Insurance is to be placed with insurers admitted to conduct business in the State of California with a current A.M. Best's rating of no less than A- :VII. H. Verification of Covera�e. Lessee shall furnish the City with certificates of insurance and original endarsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. I. Covera�e. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Lessee thirty (30) days' advance written notice of such change. J. The requirements as to the types and limits of insurance coverage to be maintained by Lessee as required by Section 9 of this Agreement, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Lessee pursuant to this Agreement, including, without limitation, provisions concerning indemnification. K. At every five (5) year anniversary during the initial term of this Agreement or any option term,the City Attorney or Risk Manager may modify the insurance requirements set forth herein and, upon written notice from the City Attorney or Risk Manager of the change in insurance requirements, Lessee shall satisfy said insurance requirement within thirty(30) calendar days. 12 MAINTENANCE AND REPAIRS. Facilities and Ground Lease Agreement—Redding Jet Center, LLC Page I 1 A. Lessee shall, at Lessee's sole cost and expense and at all times during the term, maintain the Premises in a safe and attractive condition and in the same condition as received at the beginning of the term, ordinary wear and tear excepted. Lessee shall do, or cause to be done without delay, all those things which, in the opinion of the Airports Manager, are necessary or desirable in the interests of safety or to maintain the Premises in good repair and appearance. All damage caused to the Premises and/or Airport by Lessee, its officers, employees, agents and invitees, shall be repaired at Lessee's sole expense. B. Lessee shall, at Lessee's sole cost and expense and at all times during the term, be responsible for the following: l. Sweeping and maintaining the aircraft and vehicle parking aprons in a clean condition; 2. Conduct vegetation and weed management. 13� ALTERATIONS AND ADDITIQNS. A. Lessee shall not make or cause to be made any alterations or improvements to the Premises without first securing the written consent of the Airports Manager. The Airports Manager, in his sole discretion, may impose reasonable 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. Any trade fixtures, equipment, and other property brought, installed, or placed by Lessee in or about the Premises shall be and remain the property of Lessee except as otherwise provided herein. Lessee shall have the right at any time during the term hereof to remove any or all of its property, subject to Lessee's obligation to repair all damage, if any, resulting from such removal. C. Upon the termination of this Agreement, at the sole option of the City: (1) The alterations or improvements shall become the property of the City and shall remain on the Premises; or (2) Lessee shall remove all alterations or improvements and return the Premises to the City in substantially the same condition as the Premises existed at the commencement of this Agreement. 14 ASSIGNMENT. Lessee shall not voluntarily assign, encumber, or sublet its interest in this Agreement or in the Premises, or allow any other person or entity (except its authorized representatives) to occupy or use any or all part(s) of the Premises, 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. Facilities and Ground Lease Agreement—Redding Jet Center, LLC Page 12 1� INVOLUNTARY ASSIGNMENT. A. No interest of Lessee in this Agreement shall be assignable by operation of law. Each of the following acts shall be considered an involuntary assignment: l. If Lessee is or becomes bankrupt (whether voluntary or involuntary) or insolvent, makes an assignment for the benefit of creditors, or institutes a proceeding under the Bankruptcy Act in which Lessee is the bankrupt; or, if Lessee is a partnership or consists of more than one person or entity, if any partner of the partnership, or other person or entity, is or becomes bankrupt (whether voluntary or involuntary) or insolvent, or makes an assignment for the benefit of creditors; 2. If a writ of attachment or execution is levied on this Agreement; 3. If, in any proceeding or action to which Lessee is a party, a receiver is appointed with authority to take possession of the Premises; or 4. The abandonment or discontinuance of any operation at the Airport by Lessee, or the failure to conduct any service, operation or activity permitted by this Agreement. If this condition exists for a period of fifteen (15) days without the prior written consent of the City, it will constitute an abandonment of the land, facility or location, and this Agreement and the Permit shall become null and void. B. An involuntary assignment shall constitute a default by Lessee, and the City shall have the right to elect to terminate this Agreement. In no event shall this Agreement be deemed or treated as an asset of Lessee. 1G NO EXCLUSIVE USE. 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 Premises for the purpose and approved use set forth in this Agreement. 17. WASTE; QUIET CONDUCT. Lessee shall not commit or suffer to be committed any waste upon the Premises, or any nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant of or user of the Airport or the City's adjoining property. 18 STORAGE. Lessee shall not store anything outside of the Premises without the prior written approval of the Airports Manager. 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 Premises for any purpose, including, but not limited to, the following: Facilities and Grozcnd Lease Agreefnent—Redding Jet Center, �LC Page 13 1. To inspect the Premises at reasonable intervals during regular business hours with twenty-four (24) hours prior notice to determine whether Lessee has complied with or is complying with the promises, terms, covenants and conditions of this Agreement; 2. To make repairs, additions, or alterations as may be necessary or convenient for the conduct, safety, improvement, or preservation of the Airport; 3. For emergency purposes; and 4. In the exercise of the City's police power. B. No inspection by or on behalf of the City of the Premises shall cause or constitute a termination of this Agreement or be deemed to constitute an interference with Lessee's possession or use thereof. 2Q RULES AND REGULATIONS; COMPLIANCE WITH LAWS. Lessee shall, at Lessee's sole cost and expense, comply with all of the requirements of all city, county, state and federal authorities now in force, or which may hereafter be in force, pertaining to Lessee's possession and use of the Premises, and shall faithfully observe in the use of the Premises all city and county ordinances and state and federal statutes and regulations, now in force or which may hereafter be in force. Lessee's possession and use of the Premises shall conform to all Airport rules and regulations and local building and fire codes. 2L HAZARDOUS MATERIALS. A. Hazardous substances or materials include, but are not limited to: l. Substances which are flammable, explosive, corrosive, radioactive,toxic; 2. Any material or substances defined as hazardous substances, hazardous materials, toxic substances, or hazardous wastes in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C. Sections 9601, et seq.), the Resource Conservation and Recovery Act (42 U.S.C. Sections 6901, et seq.), the Hazardous Waste Control Act (California Health & Safety Code Sections 25100, et seq.) the Hazardous Substance Account Act (California Heath & Safety Code Sections 2530Q, et seq.), California Health and Safety Code Section 25280, et seq., Hazardous Materials Release Response Plans and Inventory ar the California Porter-Cologne Water Quality Control Act, (Water Code Sections 13000, et seq.), and all amendments to these laws and regulations adopted or publications promulgated pursuant to these laws; 3. Those asbestos-containing materials defined and described in Environmental Protection Agency Report No. 56/5-85-024 (June 1985) whether or not friable, Facilities and Ground Lease Agreement—Redding Jet Center, LLC Page 14 or any related or successor report, or other applicable government regulations defined or describing such materials; 4. Pesticides as defined by Section 136(u) of FIFRA (7 U.S.C. Section 136) as may be present in soil or groundwater; 5. "Hazardous wastes" as defined in Section 25117 of the California Health and Safety Code, or as a chemical that is known to the State of California "to cause cancer or reproductive toxicity" under the Safe Drinking Waster and Toxic Enforcement Action of 1986, California Health and Safety Code Sections 25249.5, et seq.; and 6. Hazardous materials, substances or waste, or toxic materials, substances or waste as those terms or similar terms are defined by any other federal, state or local law or regulation or orders. B. Lessee agrees to indemnify, protect, hold harmless, and defend City, its elected officials, officers, employees, agents and volunteers from and against any and all liability, including without limitation, (1) all foreseeable and unforeseeable consequential damages, directly or indirectly arising from the use generation, storage, or disposal of hazardous materials by Lessee, and (2) the cost of any required or necessary repair, cleanup or detoxification and the preparation of any closure or other required plans, to the full extent that such liability is attributable, directly or indirectly, to the presence of use, generation, storage, release, threatened release, or disposal of hazardous materials by Lessee, its officers, employees, agents and/or invitees on the Premises or Airport after the beginning of the term of this Agreement. C. Lessee releases City from any and all claims Lessee may have against City of whatever kind or nature resulting from or in any way connected with the environmental condition of the Premises, including any and all claims Lessee may have against City under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"), or any other federal, state, or local law, whether statutory ar common law, ordinance, or regulation pertaining to the release of hazardous materials into the environmental from or at the Premises. Lessee expressly waives the benefits of Civil Code Section 1542, which provides as follows: "A general release does not extend to claims which the creditor does not know or expect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor." D. Lessee's obligations under this Section shall survive termination or expiration of this Agreement. Facilities and Groi�nd�ease Agreement—Redding.Iet Center, LLC Page 1 S ZZ SECURITY. Lessee shall completely secure the Premises to prevent unauthorized access to the secure side of the Airport at all times. Lessee shall defend, indemnify, hold harmless and pay any fines imposed upon the City by the Federal Aviation Administration (FAA), Department of Homeland Security (DHS), or Transportation Security Administration (TSA) for violations of security caused by actions of Lessee or its agents, employees, or invitees. Lessee shall pay such fine within thirty (30) days of written notice from the City of the obligation to pay the fine. Failure to comply with the provisions af this Section is grounds for termination of this Agreement by the City. 2� FEDERAL REQUIREMENTS. To comply with Federal Aviation Administration requirements, Lessee and its officers, administrators, representatives, successors and assigns, as part of the consideration hereof, do hereby covenant and agree: A. GENERAL CIVIL RIGHTS PROVISIONS: The "Lessee" agrees to comply with pertinent statutes, Executive Orders and such rules as are promulgated to ensure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or disability be excluded from participating in any activity conducted with or benefiting from Federal assistance. If the "Lessee" transfers its obligation to another, the transferee is obligated in the same manner as the "Lessee". This provision obligates the "Lessee" for the period during which the property is owned, used or possessed by the "Lessee" and the airport remains obligated to the Federal Aviation Administration. This provision is in addition to that required by Title VI of the Civil Rights Act of 1964. B. CIVIL RIGHTS — TITLE VI ASSURANCE: Title VI of the Civil Rights Act of 1964, as amended, (Title VI) prohibits discrimination on the grounds of race, color, or national origin under any program or activity receiving Federal financial assistance. Sponsors must include appropriate clauses from the Standard DOT Title VI Assurances in all contracts and solicitations. C. SOLICITATION CLAUSE: The City of Redding, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 USC §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders or offerors that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award. D. CLAUSE — CONTRACTS: During the performance of this contract, the Lessee, for itself, its assignees, and successors in interest (hereinafter referred to as the "Lessee"), agrees as follows: l. Compliance with Regulations: The Lessee (hereinafter includes consultants} will comply with the Title VI List of Pertinent Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 16 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 Lessee, with regard to the work performed by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The Lessee 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 Lessee 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 Lessee of the Lessee'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 Lessee 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 faci(ities 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 Lessee 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 Lessee'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 Lessee under the contract until the Lessee complies; andlor b. Cancelling,terminating, or suspending a contract, in whole or in part. Facilities and Ground Lease Agreement—IZedding Jet Center, LLC. Page 17 E. Incorporation of Provisions: The Lessee will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts,the Regulations, and directives issued pursuant thereto. The Lessee 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 Lessee becomes involved in, or is threatened with litigation by a subcontractor, or supplier because of such direct'ron, the Lessee may request the sponsor to enter into any litigation to protect the interests of the sponsor. In addition,the Lessee may request the United States to enter into the litigation to protect the interests of the United States. F. CLAUSES FOR DEEDS TRANSFERRiNG UNITED STATES PROPERTY: NOW,THEREFORE,the Federal Aviation Administration as authorized by law and upon the condition that the City of Redding will accept title to the lands and maintain the project constructed thereon in accordance with Executive Order 9689, for the Surplus Property Act of 1944, and the policies and procedures prescribed by the Federal Aviation Administration of the U.S. Department of Transportation in accordance and in compliance with all requirements imposed by Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21,Non-discrimination in Federally- assisted programs of the U.S. Department of Transportation pertaining to and effectuating the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252; 42 USC § 2000d to 2000d-4), does hereby remise, release, quitclaim and convey unto the City of Redding all the right, title and interest of the U.S. Department of Transportation/Federal Aviation Administration in and to said lands described in Exhibit A attached hereto and made a part hereof. HABENDUM CLAUSE: T4 HAVE AND TO HOLD said lands and interests therein City of Redding and its successors forever, subject, however,to the covenants, conditions, restrictions and reservations herein contained as follows, which will remain in effect for the period during which the real property or structures are used for a purpose for which Federal financial assistance is extended or for another purpose involving the provision of similar services or benefits and will be binding on the City of Redding, its successors and assigns. The City of Redding, in consideration of the conveyance of said lands and interests in lands, does hereby covenant and agree as a covenant running with the land for itself, its successors and assigns, that(1) no person will on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination with regard to any facility located wholly or in part on, over, or under such lands hereby conveyed, (2} that Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 18 the City of Redding will use the lands and interests in lands and interests in lands so conveyed, in compliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation, Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations and Acts may be amended, and (3) that in the event of breach of any of the above-mentioned nondiscrimination conditions, the Department will have a right to enter or re-enter said lands and facilities on said land, and that above described land and facilities will thereon revert to and vest in and become the absolute property of the Federal Aviation Administration and its assigns as such interest existed prior to this instruction. G. CLAUSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR IMPROVED UNDER THE AIRPORT IMPROVEMENT PROGRAM: A. The Lessee for himself/herself, his/her heirs,personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: 1. In the event facilities are constructed, maintained, or otherwise operated on the property described in this license 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 Pertinent List of Nondiscrimination Authorities (as may be amended) such that no person on the grounds of race, color, or national origin,will be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities. B. With respect to licenses, leases, permits, etc., in the event of breach of any of the above Nondiscrimination covenants, City of Redding will have the right to terminate the license and to enter, re-enter, and repossess said lands and facilities thereon, and hold the same as if the license 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 Redding will have the right to enter or re-enter the lands and facilities thereon, and the above described lands and facilities will there upon revert to and vest in and become the absolute property of the City of Redding and its assigns. Facilities and Ground Lease Agreement–Redding Jet Center, LLC. Pcrge 19 H. CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY ACQUIRED IINDER THE ACTIVITY, FACILITY OR PROGRAM: The following clauses will be included in deeds, licenses, permits, or similar instruments/agreements entered into by City of Redding pursuant to the provisions of the Airport Improvement Program grant assurances. A. The lessee for himself/herself, his/her heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (1) no person on the ground 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, (2) that in the construction of any improvements on, over, or under such land, and the furnishing of services thereon, no person on the ground of race, color, or national origin, will be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the lessee will use the premises in compliance with all other requirements imposed by or pursuant to the List of discrimination Acts And Authorities. B. With respect to licenses, in the event of breach of any of the above nondiscrimination covenants, City of Redding will have the right to terminate the license and to enter or re-enter and repossess said land and the facilities thereon, and hold the salne as if said license had never been made or issued. C. With respect to deeds, in the event of breach of any of the above nondiscrimination covenants, City of Redding will there upon revert to and vest in and become the absolute property of City of Redding and its assigns. I. TITLE VI LIST OF PERTiNENT NONDISCRIMINATION ACTS AND AUTHORITIES: During the performance of this contract, the Lessee, for itself, its assignees, and successors in interest (hereinafter referred to as the "Lessee") 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 § 2004d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin}; • 49 CFR part 21 (Non-discrimination in Federally-assisted programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964); • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 USC § 4601) (prohibits unfair treatment of Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 20 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; • The Age Discrimination Act of 19�5, as amended (42 USC § 6101 et seq.) (prohibits discrimination on the basis of age); • Airport and Airway Improvement Act of 1982 (49 USC § 471, Section 47123), as amended (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987 (PL 100-209) (broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act of 1990, which 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 (42 USC §§ 12131 — 12189) 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, which 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-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of Iimited 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. at 74087 to 74100); • 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). J. Lessee acknowledges that City is subject to Federal Grant Agreement obligations as a condition precedent to the granting of federal funds for improvements to the Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 21 Airport, and, accordingly, Lessee agrees to, and agrees to be bound by, the following covenants provided by the Federal Aviation Administration as they may apply to Lessee. A. Lessee for itself, its personal representatives, successors in interest and assigns, as a part of consideration hereof, does hereby covenant and agree that in the event facilities are constructed, maintained, or otherwise operated on any areas occupied by Lessee and described in this Agreement for a purpose for which a DOT program or activity is extended or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. B. Lessee for itself, its personal representatives, successors in interest and assigns, as a part of consideration hereof, does hereby covenant and agree that: (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in use of the facilities, (2) that in the construction of any improvements on, over, or under any areas by Lessee and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination, (3) that Lessee shall occupy and use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulations may be amended. C. That in the event of breach of any of the above nondiscrimination covenants, the City shall have the right to terminate this Agreement and to reenter and repossess the land and the areas occupied by Lessee and the facilities thereon, and hold the same as if this Agreement had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights. D. Lessee shall furnish its accommodations and/or services on a fair, equal and not unjustly discriminatory basis to all users thereof and shall charge Facilities and Grozrnd Lease Agreement—Redding Jet Center, LLC. Page 22 fair, reasonable, and not unjustly discriminatory prices for each unit or selvice. Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers. E. Without limiting the generality of any other terms or provisions of this Agreement, non-compliance with subsection D above shall constitute a material breach thereof and in the event of such non-compliance the City shall have the right to terminate this Agreement and the estate hereby created without liability therefore or, at the election of the City or the United States, either or both Governments shall have the right to judicially enforce subsections A, B, C, and D. F. Lessee agrees that it shall insert the above five (5) provisions, subsection A through E, in any agreement by which Lessee grants a right or privilege to any person, firm or corporation to render accommodations and/or services to the public on the Premises. G. Lessee assures that it will comply with pertinent statues, executive orders and such rules as are promulgated to assure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or handicap be excluded from participating in any activity conducted with or benefitting from federal assistance. This section obligates Lessee or its transferee for the period during which federal assistance is extended to the Airport, except where federal assistance is to provide, or is in the form of personal property or real properry or interest therein or structures or improvements thereon. In these cases, this subsection obligates Lessee or any transferee for the longer of the following periods: (a) the period during which the property is used by City or any transferee for a purpose for which federal assistance is extended, or for any purpose involving the provision of similar services ar benefits; or (b) the period during which City or any transferee retains ownership or possession of the property. In the case of Lessees, this subsection binds the subsection binds the Lessees from the bid solicitation period through the completion of the contract. H. Lessee agrees to adopt and enforce workplace safety policies to decrease crashes caused by distracted drivers including policies to ban text messaging while driving when performing any work for, or on behalf of, the Federal government, including work related to a grant or sub-grant. I. Lessee agrees to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as: Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 23 1. Establishment of new rules and programs or re-evaluation of existing programs to prohibit text messaging while driving; and 2. Education, awareness, and other outreach to employees about the safety risks associated with texting while driving. J. The City reserves the right, but shall not be obligated to Lessee to maintain and keep in repair the landing area of the airport and all publicly- owned facilities of the airport, together with the right to direct and control all activities of Lessee in this regard. K. The City reserves the right to further develop or improve the landing area of the airport as it sees fit, regardless of the desires or view of Lessee and without interference or hindrance. L. This Agreement shall be subordinate to the provisions and requirements of any existing or future agreement between the City and the United States relative to the use, development, operation, security or maintenance of the airport, the execution of which is or may be required by the United States as a condition precedent to the grant or expenditure of federal funds for the Airport. M. There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises herein leased. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from or operation on the Redding Municipal Airport. N. Lessee agrees to comply with the notification and review requirements covered in Part �7 of the Federal Aviation Regulations in the event future construction of a building is planned for the Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Premises. O. Lessee, its officers, administrators, representatives, successors, and assigns will not erect nor permit the erection of any structure or object, nor permit the growth of any tree or vegetation on the Airport to a height above the mean sea level that would exceed Federal Aviation Regulations Part ?7 standards or elevations affecting Airport navigable airspace. In the event the aforesaid covenants are breached, the City reserves the right to enter upon the Premises and to remove the offending structure or object and cut Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 24 the offending tree or vegetation, all of which shall be at the expense of Lessee. P, Lessee, its officers, administrators, representatives, successors and assigns will not make use of the Premises in any manner which might interfere with the landing and taking off of aircraft from Redding Municipal Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the City reserves the right to enter upon the Premises and cause the abatement of such interference at the expense of Lessee. Q. This Agreement and all the provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation and taking over of the Redding Municipal Airport or the exclusive or non-exclusive use of the Airport by the United States during the time of war or national emergency. Lessee agrees that this Agreement is subject to the ongoing jurisdiction of the United States of America and that if the provisions set forth in this Section 23 are altered, amended or changed in any way by an agency having jurisdiction over the Airport, the Lessee hereby agrees to amendment of this Agreement in order to adopt any such changes. 24. DAMAGE; DESTRUCTION. A. If the Premises are so damaged or destroyed by fire, flood, earthquake, the elements, casualty, war, riot, public disorder, or any other cause not the fault of Lessee, its officers, employees, agents or invitees so as to render the entire Premises unusable for Lessee's operations, the Lessee shall have the option to either repair the Premises or terminate this Agreement. In the event that the Lessee elects to terminate this Agreement, rent for the month in which the Premises are damaged shall be prorated and the unearned portion refunded to Lessee within three (3) days of the Lessee's election to terminate this Agreement. Notwithstanding, Lessee shall bear the cost of removing all material, structures and improvements from the Premises and City may recover as a set-off to rent to be returned to Lessee pursuant to this subdivision or by any other means afforded to it in law or equity the cost of removing the same if Lessee does not do so within thirty (30) calendar days of City having deposited notice to Lessee of its obligation as set forth herein." B. If the Premises are partially damaged or rendered partially unusable by fire, flood, earthquake,the elements, casualty, war, riot,public disorder, or any other cause not the fault of City, its officers or employees, City shall give the Lessee written notice of such damage, and if the Lessee does not commence repairs within thirty (30) calendar days from the date of the notice, City may elect to terminate this Facilities and Ground Lease Agr�eement—Redding Jet Center, LLC. Page 2S Agreement by giving written notice to the Lessee of City's election to terminate this Agreement. If City elects not to terminate this Agreement, this Agreement shall continue in full force and effect except that the damage to the Premises shall be repaired by and at the expense of the Lessee and until such repair is substantially completed so that full use and occupancy of the Premises by Lessee is possible, the rent shall be apportioned according to the portion of the Premises which remains useable. If such repairs are not completed in good faith within one hundred eighty (180) calendar days from the date of the City's notice of the damage, City may terminate this Agreement by giving Lessee written notice within ten (10) calendar days of the expiration of the one hundred eighty (180) calendar day period of the City's election to terminate this Agreement. 25. DEFAULT. A, The occurrence of any of the following shall constitute a material breach or default of this Agreement by Lessee: 1. Failure to pay any payment due under this Agreement when due, if the failure to pay continues for five (5) days after notice of the failure has been given to Lessee; 2. Failure to perform any other provision of this Agreement if the failure to perforrn is not cured within thirty (30) days after notice of the failure has been given to Lessee. If the breach or default cannot be reasonably cured within thirty (30) days, Lessee shall not be in breach or default of this Agreement if Lessee commences to cure the breach or default within the thirty (30) day period and diligently and in good faith continues to cure the default. 3. Failure to maintain current licenses, if any, required for the permitted operation. 4. Intentionally supplying the City with false or misleading information or misrepresenting any material fact on documents or in statements to or before the City and its employees, or the intentional failure to make full disclosure on a financial statement or other required documents. B. Notices given under this section shall specify the alleged breach or default, and shall demand that Lessee perform the provisions of this Agreement or pay the payment that is in arrears, as the case may be, within the applicable time period, or this Agreement is terminated. No such notice shall be deemed a forfeiture or a termination of this Agreement or a revocation of the Permit unless the City so elects in the notice. Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 26 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. Termination of Lease. Upon the occurrence of a default that is not timely cured by Lessee, the City may immediately terrninate this Agreement and recover possession of the Premises. Once the City has terminated this Agreement, Lessee shall immediately surrender the Premises to the City. On termination of this Agreement, the City may recover from Lessee all of the following: 1. The worth at the time of the award of any unpaid rent that had been earned at the time of the termination, to be computed by allowing interest at the maximum amount of interest permitted by law; 2. Any difference in the rent owed going forward less the rent from a new tenant as multiplied by the number of months remaining on the term; 3. 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 Premises for a new Lessee (whether for the same or a different use), and any special concessions made to obtain a new Lessee; and 4. Any other amounts, in addition to or in lieu of those listed above, that may be permitted by applicable law. B. Continuation of Lease in Effect: Upon the occurrence of a default that is not timely cured by Lessee, the City shall have the remedy described in Civil Code section 1951.4, which provides that, when a Lessee has the right to sublet or assign (subject only to reasonable limitations), the City may continue the lease in effect after the Lessee's breach and abandonment and recover rent as it becomes due. Accordingly, if the City does not elect to terminate this Agreement on account of any default by Lessee, the City may enforce all of the City's rights and Facilities and Ground Lease Agreement—Redding.Iet Center, LLC. Page 27 remedies under this Agreement, including the right to recover all rent as it becomes due, 27. SURRENDER OF PREMISES. On the expiration, cancellation or termination of this Agreement, Lessee shall surrender possession of the Premise to City, deliver all keys to any locks on the Premises and make known to City the combination of any combination locks on the Premises. Lessee shall reimburse City for any damage done to the Premises caused by Lessee's use of the Premises or Lessee's actions or omissions. Lessee shall remove all its personal property on or before the date of expiration, cancellation or termination of the Agreement. 28. ADMINISTRATION BY CITY. Whenever Lessee is required to secure the approval or consent of the City pursuant to this Agreement, the City shall mean the Airports Manager. When the Mayor is signatory to this Agreement, the Airports Manager shall have authority to execute any amendment to this Agreement which does not decrease the amount of compensation allowable to City, or otherwise substantially change the nature or scope of the agreement provided herein. 29. VOLUNTEER ASSISTANCE. Under no circumstances will Lessee use City employees whom are on duty to perform work at the Premises. Under no circumstances will Lessee use City employees whom are off duty to perform work at the Premises if the nature of the work is substantially similar to the employee's regular work duties for the City. 30. SIGNS. The size and location of signs, banners, flags, etc., located off of the Airport advertising the activities of Lessee shall be subject to the City's sign ordinance (Redding Municipal Code Chapter 18.42.) The size and location of signs, banners, flags, etc., located on the Premises or at the Airport shall be subject to the prior written approval and control of the Airports Manager. 31. NOTICES. All notices, requests, demands and other communications hereunder shall be deemed given only if in writing signed by an authorized representative of the sender and personally delivered to the City or Lessee, or in lieu of such personal service, sent by United States mail, registered or certified, return receipt requested, or delivered by facsimile, with a hard copy mailed first class, postage prepaid; or when sent by a courier or an express service guaranteeing overnight delivery to the receiving party, addressed to the respective parties as follows: Facilities and Ground Lease Agreement—Redding Jet Center, LLC. Page 28 TO THE CITY: TO LESSEE: City of Redding Redding Jet Center, LLC,. Attn.: Airports Manager Attn: Douglas E. Coble, President 6751 Woodrum Circle, #200 3775 Flight Avenue Redding, CA 96002 Redding, CA 96002 Either party may change its address for the purposes of this section by giving written notice of such change to the other party in the manner provided in this section. 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 13 of this Agreement. 33. ATTORNEY'S FEES. In any dispute between the City and Lessee, whether or not resulting in litigation, the prevailing party shall be entitled to recover from the other party all reasonable costs, including without limitation, reasonable attorney's fees. "Prevailing party" shall include without limitation, a party who dismisses an action for specific performance or for damages in exchange for sums allegedly due, performance for covenants allegedly breached or consideration substantially equal to the relief sought in the action; or which receives from the other party, in connection with any dispute, performance substantially equivalent to any of these. 34. HEADINGS AND REFERENCE AND WAIVER. The titles and headings in this Agreement are inserted for convenience only and shall not constitute a part hereo£ 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. 35. NO PARTY DEEMED DRAFTER. In the event of a dispute between any of the parties hereto over the meaning of this Agreement, no party shall be deemed to have been the drafter hereof, and the principle of law set forth in Civil Code §1654 that contracts are construed against the drafter shall not apply. 36. CALIFORNIA LAW. This Agreement shall be deemed to have been entered into in Redding, California. All questions regarding the validity, interpretation or performance of any of its terms or of any rights or obligations of the parties to this Agreement shall be governed by California law, and any action brought by either party to enforce any of the terms of this Agreement shall be filed in the Shasta County Superior Court. 37. TIME OF ESSENCE. Time is of the essence of this Agreement and of each and every provision therein. Facilities and Ground Lease Agreement—�edding.Iet Center, LLC. Page 29 38. ENTIRE AGREEMENT. This Agreement, which includes all exhibits attached hereto and incorporated by reference herein, contains all the representations and the entire understanding and agreement between the parties pertaining to the use of the Premises or any other matters connected therewith. All correspondence, memoranda, or oral or written agreements pertaining to the Premises or the parties hereto, which originated before the date of this Agreement are null, void and no longer in force and with no effect, and are replaced in total with this Agreement unless otherwise expressly stated in this Agreement. 39. MODIFICATION OF LEASE. This Agreement shall not be altered, amended, or modified except by a writing signed by City and Lessee. 40. SEVERABILITY. 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. 41. AUTHORITY. Each of the undersigned signatories hereby represents and warrants that they are authorized to execute this Facilities and Ground Lease on behalf of the respective parties to this Agreement, that they have full right, power and lawful authority to undertake all obligations as provided in this Agreement; and that the execution, performance and delivery of this Agreement by said signatories has been fully authorized by all requisite actions on the part of the respective parties to this Agreement. 42. DATE OF AGREEMENT. The date of this Agreement shall be the date it is signed by the City. IN WITNESS THEREOF, City and Lessee have executed this Agreement on the days and year set forth below. CITY OF REDDING Dated: ,2024 By: BARRY TIPPIN,City Manager Attest: Approved as to Form: Facilities anc�Ground Lease Agreement—Redding Jet Center, LLC. Page 30 CHRISTIAN M. CURTIS City Attorney SHARLENE TIPTON, City Clerk By: REDDING JET CENTER, LLC Dated: _,2024 By: �TGLA E. COBLE, President Attachments—Exhibit A,Froperty Description Exhibit B,Legal Description E�I1�B1T cc�ss LAND DESCRTPTIOI'� All that�eal praperty located �n the C�ty af Redding, County of Shasta, State c�f �alifornia, being a portion of the Southeast one-quar�er c�f Section 27, Townshzp 31 North, Range 4 We�t, Mount I��abIQ Base and Meridian, mare part�cularly described as follows; �ommencing at the c�rner commc�n tc� Sectzons 22, 23, 26' and 27, Township 31 North, Range 4 West, M�unt Diablo Base and Meridian, and thence westerly on�nd a�c►ng the section line comm�n tQ Sections 22 and 27, S; 89°14'S6" W., 2{�00.00 feet to the centerline of Airpart Road; thence southerly r�n and along said c�nterline, �. 00°02'OA�" E:, 3939.b8 feet to the centerline of Flight AVenue (F��-merly Municipa� Airpart Entrance Rc�ad); thence on and al�rng said centerline, I�. 89°S7'S6" E;, 619.56 feet; thence leaving sa�d c�nterline, S, Ot}°03'S6" E,, and paral�el with the center�ine of the taxiway, 40.00 feet to the True .Point of Beginning; thence runt�ing the following bearings and distances; T"henc� S. 00°03'S6" E,, and parallel with the centerline vf said taxiway, 154.22 feet. Thence N. 89°57'S�" E., and parailel with the centerline of said entrance rc�ad, 60.00 feet; Thence S. �0°03'Sb„ E , and para11e1 with the centerline c�f said taxiway, 180.00 feet; Thence S. 89°57'S6" W:, and parallel with the centerline c>f sa.id entrance road, 284.50 feet; Thence N. 0�?°03'S�" W., and parallel with the centerline of said taxiway, 334.22 feet; Thence N. 89°57'S6" E., and parallel with the c�nterl�ne c�f said entrance rc�ad, 224.50 feet, more or�ess, to the Tru� Point of Beginning: Confa�ning 85,832 square feet, (1.9 acres} more or Ie�s. I)ate> .� - � - .��.�'- Char es Ken Iwamuras PLS 8540 ��w;,�_ �,��iN j�� '��` C ` ES KEPi � � ! U o a � �o,a�� .� '�� CP�'T"-� �.��. Section Line 22 2$ S 89'14'56" W 200�.00' 27f 2� b POG � � m � `° � � � rn M � w O o (Formerly Municipai a o Airport Entrance Rd.) • Flight Ave. � � -------------------------------------------------------- N 89'S7'S6" E 1004.56' � � 900.00' 104.56 � 619.56'�� TPOB a ---.�o------------- °i• N 89'57'56" E —�� N 89'57'S6" E 280.00' � ---- 2 4.50' ------------------� 0 EXISTING '. . . . . � �-- FENCE. . .... . . W �� _ � ( • = . .�. . . . . . .. ... -. _ �N U� U��N N� . . . . . _ , . . . ..�. � p'�' �I . .. .. .. . . . . . . ��. O O�� tA� N .�. . . . .. . .. , . , .. .�._.;. . . . .. . Q O' ��W d� .. . . . .. �.� . . . � Z' `� �cD . . .� . . . . . � � . . . .� � M �.. � . . . . . . . . .�. . . . .. 6Q.�Q� I � �- —__--___--�_ -------�0 3 N 89'57'S6" E N 89'S7'56" E 325.00' ° LEASE PARCEL W = ��' 0 85832 Sq. Feet �� i 0 1.9 Acres +/— o `�n° o o � oI Z o 0 . . ao 00 � I _ . � '' I � . I � � J S 89'S7'S6" W 264.50' S 89'S7'56" W 325.Q0' Ex,ST,�� E X H I B I T� B �NCE Redding Aero Enterprises, inc. LEGEND Lease POC - POINT OF COMMENCEMENT at TPOB - TRUE POINT OF BEGINNING Redding Municipal Airport City of Redding �� LEASE AREA = 85832 S.F. AifpOftS DiYiSiOn ��R��Q z u c� o � �v 9C�FpP� 0' 100' z00' 300' 6751 Woodrum Circle No. 200 Redding, Califarnia Scale: 1"=1 QO' January. 2022 .�tJTICE UF E+ XEMPTIC3N To; � Office of Planning and Research FROM. City af Redding 1400 Tenth Street,Roorn 121 Publac Works Department Sacrament�,CA 95814 777 Cypress Avenue Redding,CA 960Q1 � Shasta Cc�unty Clerk County of Shasta P.{J.Box 990$80, 1643 Market Street Redding,CA 96t�99-0880 Project Ti#le; Lease A�reemenf with Redding Jet Center at the Reddinu Re�;ional Arrport Project Lacatian—�peci�c:Adiacent to 37'75 Fir�htAvenue Praject Location—Ci#y: Reddin� Project Location—Caunty;Shasta Descriptian of Project: The Citv of Reddin�wil�execute a Lease A�;reeznent with the Reddin�Jet Center at the Reddin� Re�ional Airport. The 1�ase area is a�proximately 85 832 square feet The initial term of this A�;reernent shall be for thirtv(30)vears with two five (S�year options to ext�nd The Pease wi11 commence on June 1 2024 and will expire on Ma�31,2054. 1Vame of Public Agency Ap�roving Proj�ctF Citv of R.eddin�; Natr�e of person or Agency Carrying Uut Praject: Lauren Ford,Assistant Airpc�rt Mana�er Exernpf Status: (check one) ❑ Ministerral [Secfion 21080(b)(1); 15268] ❑ Declared Emergency [Sectian 21080(b)(3); 1526�{a)] ❑ Emergency Project [Section 21080(b)(4); 15269{b)] ❑ Statutc�ry Exemptions.State c�de number. ❑ Commc�n�ense Exempfion(This project does not fall within an exempt class,but it can be seen with certainty ghat there is no passibility that the activity mayhave a sign�ficant effect can the environrnent(14 CCR 1Sb01 jb][3l). � Categori�al Exemption, State type and section number: Sec. 15301 Existin�Facilities � No exceptions apply that wauld bar the use of�categorical exemption(PRD 21084 and I4 CCR 1530d.2). Rea�ons why praject is exempt: Class 1 exemptions includs the permitt'rngl leasing, and at�eratic�n of public or private structurea facilities mechanacal equipment or topo�raphicai features that invc�lve ne�ligible ar no expansion af existi� or former use. Future develcapment of the lease area wi11 be subiect to a separate review under CEQA Approval af the lease a�reement has no t�c�tential to have a si�nificant effect on the environment Lead Agency Contact Person; Amber Ke11ey Telephone. 530:22S.4Q4'6 If Filed by Applicant: l. Attach certified dc�cument of exemption finding: 2. Has a notice of exemption beert filed by the public agency appro�ring flle project?o Yes ❑No Signaturea�� .�c�,;� �� — Date: ..�- ��` �^ — Titte: Environmental Com liance a er 0 Signed by Lead Agency Date received for fling at C}PR: ❑ Signed bY Applicant