HomeMy WebLinkAboutNorthern Sky RV Repair 2018-11-01 i
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CITY OF UKIAH
AGREEMENT FOR LEASE
OF AIRPORT PROPERTY
AGREEMENT FOR LEASE OF PROPERTY
UKAIH AIRPORT
TABLE OF CONTENTS
LEASESUMINIARY...............................................................................................................................vi
PREAMBLE............................................................................................................................................I......1
ARTICLE 1 DEFINITIONS.........................................................................................................................2
1.01 AIRPORT--.......................—.—........... ......... ................ ...... ..........................2
1.02 Airport Manager............ ... .. .. ................................................................. .2
1.03 ANNIVERSARY DATE.--.— ................................ ...2
1.04 BASE:,RF:SIT...... ..................................... ... .. . .... .. . . . ._._._,_............-............,...............................2
1.05 CPI ....................................................,........ ......................_._..,_.........,., ..............................
1.06 CITY COUNCIL ...........................................................................-.-................................................._._2
1.07 DOT....... . . .... . ... . __-........._..... ...,_,.,._,_,............,......,.....,..............,....,....,.......... ..._._..........— _2
1.08 FAA.............................................................. .................. • • ,.,.,.................._.....,..._,..,......."..,... .2
1.09 SJGN ....._—............................... .............. ............................ . ......... .......... ...................................I
1.10 LF`.ASM Pl OJISf-.................................................................................—..........................................3
1.11 LHASEYE:AR .................................................................................................„-..,,,,,-,.-,-
I.12 TRADE FIxTURF9.............................................................................. .............................. .3
ARTICLE2 SPECIAL CONDITIONS.......................................................................................................4
2.tll TF.t m...—...-................................................ .............................„_,.,.,,,................. ..... ... ----.4
2,02 DESCRIPTION O LkASFD PkEJ IISES.....................................................................................................4
2,03 USF OFTHF`.I JP-AS FDPREMISES.....................................................a...-.-+-._.._,_.._,..........--.................
..-,-4
(a) Penrrtned Use........................................................ .................--........... .....................4
(b) f rog`latio rs.....—...................................................................................... —...... ....... ..............,...,.,4
2.04 RENT ........................................................._,_,_._..,_.......,_...................................................... ----------
(a) Time and,4 anne,-rf Payment—I.... .......... .............................................. .............................5
(b) BusrR€►rr.................... -........................................................._...,,.,_..................... ............. ..........6
1c) C'P1 Renlid hereases.-. ...................................................... ...........,...,.,,........6
(d) Berse Rene Adinsrmene......
2,05 SECURITY DFYOSIT............................................................................................................................. 6
(a) Initial Deposrl.............................. ................................................................................ „...,-,-...--6
(b) Deposi#Increases.............. .......................................... .........—................................ . _..... . _.....6
.ii.
(e) C•owliriwrsofbepasit........................
2.06 Ar)r)UK)NAL FEI_S,C RARGWi ANC)RFNrFAL.S....... ... ..................................................................'•--..7
2-07 1.IQlfll)ATF1}DAAIAG SHROMLATF:PAYAIF.TITS..................................................................................7
2,09 CTTILTTIFS..-`...........................................................,...................................................................
-(19 MAI TENANCI;OFLt:AWD PR ...................... ....................................,-..,.,,,..,-,-,.---s
(it) Resli risibility of Fri.................
(b) Res�xri ibility of lessee'....................................................'.,-.-,,,„-,-,-,....................... 8
2,10 1-WROVF IEXT( (oR Aumok7ION.........................................................................................................9
(a) Genera(....... ...........................................' 9
(h) P)-elirrrirlrrr3'Plans............................................................................................,-,-,-.. „-9
(e) Revinp,ofand Crrrxrrrrt'IN on relimblerry P/dils............................................................................10
(d) Filial Plans ............................................. ...............................,,,.....,-,............ .........................10
(e) Appro,-al of Final Plans................................................................................................................10
( Modification of Final 1'krrls"------'.................................................................................................10
(R) 1volice of C'rrroopleliorx........ ............
(h) 11s•Coro,s#r'uc7edlRecor'd brosvin8s,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
(i) Remot-alof Vilffpproveel}rrrlrralwincif#.x......................... ' ............................................. ...11
2,11 1NSURANCE................................................. ..................' I 1
2-12 NOTICES.....................................................
A RTJ CLE 3 GENERA1,CONDITIONS..................................................................................................Y3
1-01 Accili l'ANCE 01 LEACiFII VR1-11I9FS........... ................ ' '........................... .........,............... -------13
3-02 AcCOKI)AN'I)SATISHA('J'1 ": ...............................................................................--.............--------------13
i.O 111RPORT Rj-,Gt!LA7l0Wi+................................----.....................................................,......................13
IN ANll,.M.)-NW'.N 'ICI QVPRFA)FiY FAA........................................................... .-'--------,........-,............13
3-05 M(;J('Pl14MVNl-ANFI]4l'IiLki71'I?VU............................................................. „- -....,.,..,-,..-13
(rr) A.svipi rcoir............................ ' ..............................................-.-,..-.............................. ...... .,-,.,..13
sublevir+g.................................... ...................... ..................... 13
(c) r1#rlrur7 Processing Fee----,,,,,,,,,,,,,, , ,,,,,,,----- '--------,.,-,
3.06 AssuRAt ctis RF.QvtmU t)BY FAA.....................................................................................................73
3.07 AUTHORITY oFAGRFFMFNT..............................'-'--............................... ....14
31.08 AUTHORITV(}FTHr AiRMRT MAKiXGER....................... .......14
1.09 CALID)K IA LAW................ ......................................................... .............................- -,.,14
1,10 C umvi-ATIvERF*%iFl}IE;S ................................................. ..................................................,.......14
3-1) E"RE 1 MlFF,I4IF.NT ......................................................................................... ....--,-,.,.,.,... 18
3-l t EX C1'TR)N BY CITY COUNICIL --.-•...................................... I's
1.13 FoRCI]MmwRE ................................................... .............................................-,--...................15
3.14 HA'I.ARIX)US MATI.RIALS% ............................................................................... ....................... .15
•111-
,
(a) usvee's c>mphiveeWid)£-o ,i`»mxm fell Lms................................
(b) hidepunificalizin b7Le^voe' ...........----'-'-'--' ........... ................. ..................-/8
hdAoliccs-- ......................... ......................... ...........................-_'----- ......----}8
ONRight of bar)............. ....................................................... _ ......---.............. _--- ......A0
(e) Lead-Based PWht...... .................... ............ -_'-'_---............................. .............../7/
3.15 HKmnoNGS .................... ...........~,-.------'------------ .......................]7
3.|6 ImnswmIFxCATxnNo+CITY.............. _--...........................................................-_- ...........l?
3]7 Cwm-puwzamr CONTRACTOR----.......... ..................... ---. ...... ........ -------- ........----......|7
118 0vTsRnmsTArvnworAonnsw ENT.........- ............................... .......-------- ........ ---..|T
3.|9 INVALID PROVISIONS................................---....................................---'--'_ ...... - ..........i8
3,20 MATxON^LROLL0T*NTDACH*kq8]ELIN1Vx^rxowSvsrew-' ...... _- ........................... 8
3.21 NOISE CONTROL...................................................... .......----........... --'-'_-- ........ 8
3-22 NoNDISCApMIwAMw _-,-_'_'_-_---'--------'--'-- .....................is
3-23 NoNHXrLVsvKMGHTy _--.---- .............. -- ..............................................................18
�-24 Nn.,4 WAws*n+RIGHTS .... -_ ......................... ......................................---__ .........-19
3,29 Norxce or-CuAmxs AND SUIT........... ... ....................................... .......----_- ........
---1A
3`26 NnWxxxAmr,es/\Pit nuT ............................. -'--' ............... .................---.......................]9
3`27 ]4omAwrxomU9Vm%Tx...................................... -_'-'--- ........... ............ ........--.......... -|9
3-28 PuuemITvxx,mpLo*m --------------------------------- ..........------_-- ......... ......... ......|9
3-29 ReEASi:o+Lu^wILnY.--'__------------ ......---'-'--- ----------------- |o
3-30 REMOVAL nvussseS9nom4,xr/ - ........ ................. ....... .............................. ..............................20
3.31 ReK)mnS................................................................... ..........- ...... ...... ........... ...... ...... ..............2U
3,32 RszrpnCTvns AND REGULATION x........ ............. ................. -_----....... ........... _ ......JV
3.31 RvGHTn+5NTxv..............................................-'-'--_--_ ..............................................Jx
3.34 RoxRrPvM)N ......................................... -__ ................. -_- ........... .......................20
3.35 Sw*s.-'---' ...... ..........----- ......... ..................... ................................. .....................20
IM S tjucuxoou*rxxN' ...... ......-........ -- ................. ........................ ......................... ......
--.�|
3.37 SoccesnoxS AwoAssuGws........................................................-._ .......----....... ........
--2i
3.39 SmRRswnEnoFu:ASsoPpoMsan- ...... ......................................... '--_- .......--- ....... |
3`39 TAxFs.................. ................................. -'----- ............................... ....... ........... ...............J|
(a) P»vSvj�N»?bveFe.Y/«»JPrnPcn) 7�rA:06x'_'- ......._-_- ........ .................. .................2/
oN Righ//oCoo,m' 7fues- ................ ............. ................................. .......................
-'-'.-'2{
3-40 MwsowreeESssmCF------- ...... ................................... ............................. ...................22
3,41 Tq*s*AwuG^RIB*uls........................... ..... ......................... --_' ............. .............. .......-22
3.42 VFnxCucAn AND EQniipwsmTPAnwn«G ..... ......----......-_- .................... .........................22
3.43 Exsrunnw(IF AUnnn.W.wr.................. ......................... -------- ...... - ................... .......23
EXHIBITS:
A. Leased Premises
B. Insurance Requirements
C. FAA Assurances
ti-
UKIAH AIRPORT
Lease Summary
Type of Agreement LEASE OF BUILDING AND ASSOCIATED AREAS AT UKIAH AIRPORT
Lessor City of Ukiah
Lessee David Nelson dba Northern Sky RV Repair
Representative David Nelson
Phone (707)463-1945
Notice Address Lessee Lessor
Northern Sky RV Repair City of Ukiah
667 Road A 1403 South State St
Redwood Valley, Ca 95470 Ukiah, CA 95482
Initial Term Month to Month commencing on Effective Date of Agreement
Termination 30 days'notice
Leased Premises
Approximately 1,200 sq It of storage building space identified as shown on Exhibit A
Approximately 6�,000 sq ft of ground as shown on Exhibit A
Rent Lease year 1:
65,000 sq ft un-paved ground at$0.03 per sq ft per month $1950.00
1,200 sq It storage bu"d'ng at$0.29 per sq ft pc-r month $348.00
$2,298.00
Rent Increases CPI adjustments annually July 1. (Reference 2.04(c))
Security Deposit Initially$1950.00 thereafter adjusted based upon 1 month Base Rent.
Utilities Lessee Responsibility. (Reference Section 2.06)
Most performed by lessee. (Reference Section 2.10)
Other Fees Reference Sections 2,06-2.09, 2.11,3.05,3.11, 3.13, 3.14,3.20,3.22,3.27,3.38 and 3.50
Authorized Use(s) Storage vehicle,equipment, material, and automobile parking
Minimum Insurance Per Exhibit B, summarized as: Personal&Adv. Injury:$1,000,000
Each Occurrence: $2,000,000 Fire Damage: $ 1,000,000
Automobile Liability: $1,000,000 Workers' Compensation: Statutory
General Aggregate: $2,000,000 Employer's Liability.$1,000,000 per accident for
Products Comp/Op Aggregate:$1,000,000
bodily injury or disease
Note: This Lease Summary is presented as a reference of the Lease information at the time of execution. !f there is a
discrepancy between the information contained in this Lease Summary and the requirements contained in the remainder of this
Lease. the requirements as stated in the remainder of this Lease will be applied.
-Vi-
Left Blank
AGREEMENT FOR LEASE OF PROPERTY
UKIAH AIRPORT
THIS AGREEMENT is entered on November 1, 2018 (-'Effective Date"), by the CITY OF
UKIAH, a general law municipal corporation, hereafter"City," and David Nelson, dba Northern Sky
RV Repair, a sole proprietor, hereafter "Lessee."
RECITALS:
1. City operates and maintains the Ukiah Municipal Airport, (hereafter "Airport'),
located in the City of Ukiah, California, and has the right to lease portions of such Airport,
subject to the terms and conditions hereafter set forth.
2. Lessee is a company engaged in the business of storing vehicles, equipment, and
material, and automobile parking.
3. Lessee desires to lease Airport property and facilities from the City for use in
conducting Lessee's operations at the Airport.
4. City is willing to lease property and facilities to Lessee on the terms and conditions
set forth in this Lease.
AGREEMENT:
City and Lessee hereby agree as follows.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page I of 27
Article 1
Definitions
As used herein, the following words and phrases shall have the meanings set forth
below:
1.01 Airport
"Airport" means the Ukiah Municipal Airport operated by the City as a public airport.
1.02 Airport Manager
"Airport Manager" means the City employee who manages the day-to-day operation of
the Airport and who has the authority and responsibilities contained in Division 6, Chapter 1,
Article 1 of the Ukiah City Code, commencing with Section 5000. Whenever in this agreement
reference is made to the Airport Manager, that reference may include any other officer or
employee of the City, including the City Council or the City Manager, if the approval of that other
officer or employee is required by the laws and rules applicable to the City.
1.03 Anniversary Date
"Anniversary Date" means the day and month of the Effective Date in each year
following the year, when this lease was first entered by the parties.
1.04 Base Rent
"Base Rent" means rent specified in Section 2.04(b) of this Lease.
1.05 CPI
"CPI" means the Consumer Price Index published by the United States Bureau of
Labor Statistics, for all commodities for all urban consumers in the All U.S. Cities Average Index
(index base 1982-84=100).
1.06 City Council
"City Council" means the legislative body of the City as established in Title 4, Division
3, Part 2 of the California Government Code, with the authority to lease City property, including
property at the Airport.
1.07 DOT
"DOT" means the United States Department of Transportation, and any federal
agency succeeding to its jurisdiction.
1.08 FAA
"FAA" means the Federal Aviation Administration of the United States government, and
any federal agency succeeding to its jurisdiction.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 2 of 27
1.09 Sign
`Sign"shall have the meaning set forth in Section 3.354.
1.10 Leased Premises
"Leased Premises" means those certain premises leased to Lessee pursuant to this
Lease, which premises are more particularly described by Section 2.02 and the attached Exhibit
A.
1.11 Lease Year
"Lease Year" means a period of twelve (12) consecutive calendar months, starting on
December 5, 2018 ("Commencement Date") and ending December 4, 2019, and each twelve
consecutive months thereafter. The Lease Year does not affect the Term of this Lease which
remains month-to-month.
1.12 Trade Fixtures
"Trade fixtures' shall mean, but shall not be limited to: any signs (electrical or
otherwise) used to identify Lessee's business; all machinery and equipment used in connection
with Lessee's required or permitted activities pursuant to this Agreement, whether or not such
machinery or equipment is bolted or otherwise attached to the Leased Premises; and all other
miscellaneous office equipment, furnishings, and personal property of the Lessee.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page of 27
Article 2
Special Conditions
2.01 Term
The term of this Agreement shall be for month-to-month, commencing on the
Commencement Date.
2.02 Description of Leased Premises
City hereby Leases to Lessee the following premises at Airport more particularly
described below and shown on Exhibit A, attached hereto and incorporated herein by this
reference:
(a) Approximately 65,000 square feet of land-side unpaved ground (Exhibit A).
(b) Approximately 1,200 square feet storage building (Exhibit A)
Lessee accepts the Leased Premises as specified herein and such area shall not be
subject to recalculation. Except as provided herein, all premises are leased in their "as is"
condition and without any express or implied representations or warranties of any kind
whatsoever.
2.03 Use of the Leased Premises
(a) Permitted Use
Subject to the limitations set forth in Section 2.03(b), and elsewhere in this
Agreement, Lessee may use the Leased Premises for any or all of the following
purposes, but for no other purposes:
City authorizes Lessee to use the assigned space for the storage of vehicles,
equipment, and material, and for automobile parking.
Lessee, its employees, agents, guests, invitees, suppliers of material and
furnishers of services shall have full rights of ingress and egress with respect to the
following areas: 1) common use areas of the Airport; 2) the Leased Premises.
Lessee's use of the Leased Premises shall be in accordance with the laws of the
federal government and State of California, the ordinances, rules and regulations of the
City of Ukiah, the regulations of the FAA, the DOT, and the applicable requirements of
any other governmental agency with jurisdiction over the Airport or Lessee's operations
at the Airport. Lessee shall not engage in any operations at Airport prior to obtaining
any certification that may be required by the FAA. Lessee shall furnish the Airport
Manager a copy of any such certificates, upon request.
(b) Limitations
Lessee shall use the Leased Premises in accordance with the following
limitations and all other applicable terms, promises, conditions, and covenants
contained herein.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 4 of 27
1. Except as specifically authorized in subsection (a) of this Section 2.03,
Lessee shall not:
a. engage in any commercial or noncommercial aeronautical or non-aeronautical
activity at Airport, including the sale of fuel, without first complying with the
Commercial Operating Standards-- Ukiah Airport and obtaining the required
permits or agreements from City; and
b. sell airline trip insurance over the counter or by machine.
c. install or operate coin-operated food or drink dispensing machines or devices
unless approved in writing by the Airport Manager.
d. sell prepaid telephone cards or lottery tickets unless approved in writing by the
Airport Manager.
e. sell any goods or service not approved in writing by the Airport Manager,
including, but not limited to, threatening devices or weapons.
f. solicit or advertise goods which are not authorized by the Airport Manager under
this Agreement.
g. in any way obstruct or interfere with the rights of others at Airport or injure or
annoy them.
h. allow any sale by auction on the Leased Premises, without the prior consent of
the Airport Manager.
i. use or allow the Leased Premises to be used for any Improper, immoral, or
unlawful purpose.
j. obstruct the sidewalks, roadways or passageways adjacent to the Leased
Premises.
k. create a public or private nuisance on the Leased Premises or any waste of the
Leased Premises.
2.04 Rent
Lessee shall pay rent to City as follows:
(a) Time and Manner of Payment
Lessee shall pay all rent in advance at City s accounting office, at the address
shown for City under Section 2.1 herein, on the first day of each calendar month
throughout the term of this Agreement. Rent for partial months shall be pro-rated on a
daily basis, based on a 365-day year.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page ' of 27
(b) Base Rent
Commencing on the Commencement Date Lessee shall pay Base Rent in the
total amount of two thousand two hundred ninety-eight dollars and .no/100 ($2,298.00)
for the first Lease month, at the rate of $2,298 per month). Base Rent has been
calculated based on the following rates:
(i) Ground Space: $ 1950.00 per Month.
Building Storage Space: $348.00 per Month
(c) CPI Rental Increases
Lessee shall pay rental increases, calculated as follows:
(i) Effective on the July 111 of each Lease Year Lessee shall pay rent based
on the just completed Lease Year's monthly rent plus an additional amount
calculated as follows:
The just completed Lease Year's monthly rent shall be multiplied by the
same percentage as the percentage increase, if any, in the current CPI, prior to
any seasonal adjustment, as compared to the same month in the preceding year
(e.g. July 2008 level of 219.964 (1982-84-100) is 5.6% higher than in July 2007)
Lessee shall pay as additional rent a sum equal to the product thereof, to the
extent that such sum does not exceed five present (5%) of the total monthly rent
payable by Lessee for the immediately preceding Lease Year.
(ii) Any decrease in the CPI shall not result in any decrease in Lessee's
rental obligation herein.
2.05 Security Deposit
(a) initial Deposit
Upon Commencement, Lessee shall deposit with the finance office the sum
equivalent to one month rent, initially two thousand two hundred ninety-eight dollars and
.no/100 ($2,298.00) City shall not be responsible for payment of any interest on the
deposited funds.
(b) Deposit Increases
At such a time that the monthly rental amount is increased, Lessee will increase the
amount on deposit by that amount.
(c) Conditions of Deposit
City may use such deposit, or any portion thereof, for payment of any sum owed to
City by Lessee, and such use may be without prior notice to Lessee. If any portion of such
deposit is used to correct such a default, Lessee shall pay to City, upon demand therefor,
such sums as are needed to return the full amount of the deposit with City to an amount
equivalent to two months' rent, and such payment shall be made to City by Lessee within
fifteen (15) days of such demand.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 6 of 27
Within fifteen (15) days of applying such deposit to correct a default or to pay
amounts due or owing upon termination of this Agreement, City shall provide Lessee
with an accounting of such deposit application. Upon termination of this Agreement,
such deposit less any amounts due or owing to City by Lessee shall be refunded to
Lessee.
2.06 Additional Fees, Charges and Rentals
Lessee shall pay to City as additional rent, any additional fees, charges and rentals in
the event of any of the following:
(a) If City has paid any sum or sums, or has incurred any obligation or expense, for
which Lessee has agreed to pay or reimburse City, or for which Lessee is otherwise
responsible;
(b) If City is required or elects to pay any sum or sums, or incur any obligation or
expense, because of the failure, neglect or refusal of Lessee to perform or fulfill any of
the promises, terms, conditions or covenants required of it herein;
(c) Pursuant to any separate agreement between the parties not contained herein;
or
(d) Pursuant to any ordinance, resolution or adopted motion as reflected in the
approved City Council meeting minutes ('minute order") of City.
Lessee's obligations pursuant to this Section 2.0 shall include all interest, cost,
damages, and penalties in conjunction with such sums so paid or expenses so incurred by City,
which may be added by City to any installment of fees, charges, and rents payable herein.
Each and every part of such payment by City shall be recoverable by City in the same manner
and with like remedies as rent.
For all purposes under this Section 2.0, and in any suit, action or proceeding of any
kind between the parties hereto, any receipt showing the payment of any sum or sums by City
for or in connection with any work done or material furnished shall be prima facie evidence
against Lessee that the amount of such payment was necessary and reasonable.
Lessee shall pay City pursuant to this Section 2.0 within thirty (30) days following
demand therefor, or within the time specified by applicable ordinance, resolution, or minute
order of City.
2.07 Liquidated Damages from Late Payments
If Lessee is in arrears for seven (7) days or more following the due date of any amount
payable to the City under this Lease, the parties acknowledge that additional clerical,
accounting and other work will be performed which would not otherwise be needed absent the
late payment. In addition, because the actual charges as a result of the late payment are
difficult to identify, the parties hereby agree that Lessee shall pay as a reasonable charge,
liquidated damages for the late payment in the amount of eighteen percent (18%) annual
percentage rate, or twenty-five dollars ($25.00) whichever is greater, applicable from the date
such payment was due to the date of actual payment. If the maximum charge permitted by law
is less than the foregoing amount, then the rate shall be such amount determined to be the
maximum legal amount. Any liquidated damages imposed pursuant to this Section 2.07 shall be
deemed additional rent subject to the remedies available to collect delinquent rent.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page of 27
2.08 Utilities
Lessee, at Lessee's sole cost and expense, shall make its own arrangements and pay
for all charges assessed for any and all of its utilities, including, but not limited to, electrical
power, natural gas, water, sanitary sewer, trash/garbage collection and disposal, telephone and
communication services, and for any other utility service or other service supplied to or used on
the Leased Premises, including any and all connection and metering charges, as billed directly
to Lessee by the City of Ukiah utilities departments or any other utility companies furnishing
such services. Where multiple rental units are supplied a utility service through a master meter
for which the Airport or the City is billed, Lessee shall pay such costs and charges based upon
such standard Airport rates and charges as may be established from time to time by City, and
meter readings, if any, for amounts used by Lessee, within fifteen (15) days following the date of
such billing. Lessee agrees that any and all such charges for any and all such services shall be
paid before they become delinquent and that City shall be protected and held harmless by
Lessee from any expense or payment, arising from Lessee's failure to make a timely payment
for such services. City shall not be liable to Lessee for any interruption in or curtailment of any
utility service, nor shall any such interruption or curtailment constitute a constructive eviction or
grounds for rental abatement in whole or in part.
2.9 Maintenance of Leased Premises
(a) Responsibility of City
Throughout the term of this Agreement, City shall have no obligation to provide
any repair or maintenance of the Leased Premises.
(b) Responsibility of Lessee
Except as otherwise expressly provided in Section 2.9(a), during the term of this
Agreement, Lessee shall at its sole cost and expense perform all other maintenance
and repair, including, but not limited to:
0) All scheduled maintenance and service of electrical and gas systems in
accordance with manufacturers' requirements.
(ii) Maintenance, repair and performance of all ordinary preventative
maintenance and upkeep of the Leased Premises. Such maintenance and repair
shall include all appliances, fixtures, and pavement (including but not limited to
pot-hole repair, striping, and crack repair) within Lessee's Leased Premises.
(iii) Maintenance, repair and performance of all ordinary preventative
maintenance of the mechanical (heating and cooling), electrical (including
relamping and ballast replacement), and plumbing systems.
(iv) Maintenance, repair and performance of all ordinary preventative
maintenance of the roll-up doors, loading docks and ramps.
(v) Maintenance of outdoor paved and unpaved assigned areas ensuring that
these areas are litter-free and weed-free.
(vi) Maintenance, repair and replacement of any improvements, alterations,
or additions caused by Lessee whether Lessee has or has not obtained advance
authorization from City in accordance with Section 2.10 of this Agreement.
(vii) Janitorial service to the Leased Premises.
(viii) Pest control service as necessary to maintain the Leased Premises in
vermin free condition.
(ix) Maintenance of existing grounds and landscaping.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 8 of 27
(x) Maintenance, repair, certification, and monitoring of any installed fire
systems.
(xi) Repair and patch roof, as necessary. Clean and clear gutters as
necessary.
(xii) Provide structural maintenance and/or structural repair to the Leased
Premises, including exterior walls, roof and foundation.
(xiii) Americans with Disabilities Act. In the event that as a result of lessee's
use, or intended use, of the Premises the Americans with Disabilities Act
or any similar law requires modifications or the construction or installation
of improvements in or to the Premises, Building, Project and/or Common
Areas, the Parties agree that such modifications, construction or
improvements shall be made at Lessee's expense
Lessee shall be solely responsible for the cost of any repair or maintenance to
the Leased Premises resulting from the negligent acts or omissions of Lessee, its
officers, agents, employees, invitees, suppliers, or contractors. In the event of such
damage, City may elect to perform such repair or maintenance itself, at Lessee's sole
cost and expense, or require Lessee to perform the same at Lessee's sole cost and
expense. If such repair or maintenance is not of an emergency nature, as determined
by the Airport Manager, in his sole discretion, City shall give Lessee five (5) days
advance written notice of its election in such matter.
Lessee agrees to take good care of the premises and to return the same at the
termination of this Agreement in as good order and condition as when received,
excepting ordinary wear and tear and natural decay.
2.10 Improvements or Alterations
(a) General
No improvements, alterations or repairs of any kind shall be erected, placed,
assembled, constructed or permitted on the Leased Premises without first obtaining
written authorization from the Airport Manager. In the sole opinion of the Airport
Manager, if the proposed improvement, alteration or repair project is of a minor nature,
the project may be reviewed and approved solely by the Airport Manager. The Airport
Manager, at his sole discretion, based on the nature of the proposed improvement,
alteration or repair project may waive one or more of the procedures as set forth in
Section 2.11 herein. Notice of such waiver shall be in writing. In the absence of such
written waiver, Lessee must follow the procedures as set forth in Section 2.10 herein.
(b) Preliminary Plans
Prior to the preparation of preliminary plans, Lessee shall contact the Airport
Manager to schedule a pre-project meeting to brief City staff on the proposed
improvement. Preliminary plans shall show the full extent of the improvements to be
constructed including grading, drainage, landscaping, paving, structural details and
utility locations and the relationship of the proposed improvements to all adjacent
Airport parcels, public roadways, service roadways, taxiways and aircraft parking
aprons. A minimum of three (3) full sets of preliminary plans shall be submitted for
approval. Civil engineering plans shall include plan drawings submitted on a scale not
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page _a of 27
smaller than one (1) inch equals fifty (50) feet. Architectural plans shall include plan
drawings at a suitable scale but in no case shall the scale be smaller than 1/16 inch
equals one (1) foot. Plans shall include complete specifications in sufficient detail for
City to determine compatibility with City objectives for the overall aesthetic character
and quality of the improvements, including the proposed exterior color, scheme, style,
materials, wording and placement of all signs.
(c) Review of and Comment on Preliminary Plans
Within thirty (30) days of the date of receipt of the preliminary plans, City will
return two sets of plans with comments. City review and comment on the preliminary
plans does not mean or infer that the proposed improvement has been approved by
City. Additional plans, specifications or design features beyond those submitted with
the preliminary plans may be required and shall be prepared by Lessee at the request
of the City.
(d) Final Plans
A minimum of three (3) copies of final plans and specifications showing
responses to comments received and setting forth in all necessary detail the
requirements for construction of the project shall be submitted to City for approval prior
to submitting plans to other applicable agencies so that City may check them for design
conformance with the preliminary plans.
(e) Approval of Final Plans
Within thirty (30) days of the date of receipt of the final plans, if final plans are
approved, City will return final plans to Lessee with City approval stamp on the plans.
City will retain one full set of final plans. City approval of the final plans shall only
mean that the proposed improvement is consistent with City's goals and objectives for
Airport development projects and does not infer that the proposed improvement is
approved by the City officials, boards or commissions with regulatory jurisdiction over
the project, such as the Building Official, Zoning Administrator, City Engineer, Planning
Commission, Traffic Engineering Committee, City Council ("City Regulators"). After
approval of the final plans by City, Lessee has full responsibility for obtaining all
required federal, State and local approvals and permits including compliance with
California Environmental Quality Act (CEQA) requirements.
(f) Modification of Final Plans
Any modifications to the approved final plans including environmental mitigation
measures, modifications imposed by City officials, commissions or boards with
regulatory jurisdiction over the project, or construction change orders shall be
submitted to City for approval prior to construction.
(g) Notice of Completion
Within ten (10) days of construction completion, Lessee shall submit a Notice of
Completion to City. Within ten (10) days of receipt of Notice of Completion, City may
schedule an inspection of the improvements to be accompanied by Lessee for
purposes of confirming compliance with the final plans and any subsequent
modifications to the final plans. This inspection tour may be scheduled at the same
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 1 -� of 27
time Lessee schedules a final inspection in accordance with any requirements imposed
by the City Regulators.
(h) As-Constructed/Record Drawings
Within sixty (60) days after filing the Notice of Completion, Lessee shall furnish to
City one (1) set of original reproducible record drawings showing the "as-constructed-
improvements.
Record drawings shall be dated and stamped by the engineer or architect of record.
Drawings must meet FAA, and/or City of Ukiah standers. A complete set of magnetic CAD
drawings, reflecting the same information as the record drawings, shall be delivered at the
same time. Delivery of magnetic CAD drawings shall be on CD (compact disc), along with
necessary printing/plotting information to allow City to reproduce drawings as originally
designed.
(i) Removal of Unapproved Improvements
Improvements made on the Leased Premises without the approval of final plans
for said improvements as outlined herein are hereby determined to be unapproved
improvements constructed or installed in violation of the conditions, restrictions and
requirements of this Agreement. Unapproved improvements shall be immediately
removed at Lessee's sole expense. Portions of improvements that are not constructed
as indicated and specified on approved plans are also hereby determined to be
unapproved improvements and shall be immediately removed or corrected at Lessee's
sole expense.
2.11 Insurance
(a) Throughout the term of this Agreement, Lessee for itself and its officers,
representatives, agents, employees, guests, patrons, contractors, subcontractors,
licensees, invitees, and suppliers shall maintain in full force and affect the forms of
insurance specified in Exhibit B.
(b) In the event Lessee does not have the required certificate(s) of insurance and/or
binder(s) evidencing the proper insurance coverage, or the required insurance
coverage lapses, this Agreement shall automatically be terminated at City's option.
2.12 Notices
(a) Notices required herein shall be in writing and served personally, sent by
overnight courier, such as UPS or Federal Express, U.S. Mail with first class postage
prepaid, email or facsimile. Notices served personally, by overnight courier, email or
facsimile are deemed served and received upon receipt. Any notice mailed pursuant to
this Section 2.12(a), shall be presumed to have been received by the addressee 48
hours after deposit in the mail. Either party shall have the right, by giving written notice
to the other, to change the addressee, address or facsimile number at which its notices
are to be received. Until any such change is made, notices shall be addressed and
delivered as follows:
city.. Lessee:
Airports Manager Northern Sky RV Repair
1403 South State St. 667 Road A
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 11 of 27
Ukiah, Ca 95482 Redwood Valley, Ca 95470
If sent by email or facsimile, said notice shall be presumed to have been received
by the recipient upon confirmation of receipt by email or facsimile machine provided
that the following email or facsimile numbers are used:
Cam: gowen@cityofukiah.com Lessee:
(707)467-2855 David Nelson dba Northern Sky RV
Greg Owen Repair
Airport Manager
(c) All notices shall be effective upon receipt and shall be deemed received as
provided herein.
(d) The person and address provided pursuant to Section 2.12(a) shall be deemed
each party's agent for service of process, unless the party provides a separate written
notice of its agent for service of process, including the agent's street address.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 12 of 27
Article 3
General Conditions
3.01 Acceptance of Leased Premises
Lessee hereby accepts the Leased Premises in its "as-is" condition existing on the
Commencement Date. Taking possession of the Leased Premises by Lessee shall be
conclusive evidence that the condition thereof is satisfactory to Lessee. City makes no
representation or warranty that the Leased Premises are suitable for the uses to which Lessee
shall be restricted pursuant to this Agreement.
3.02 Accord and Satisfaction
No payment by Lessee or receipt by City of a lesser amount than the rent, fees and/or
charges due to be made by Lessee herein shall be deemed to be other than on account of the
rent, fees and/or charges due, and no endorsement or statement on any check or in any letter
accompanying any check or payment as rent, fees and/or charges shall be deemed an accord
and satisfaction, and City may accept such check or payment without prejudice to City's right to
recover the balance of such rent, fees and/or charges or to pursue any other remedy provided in
this Agreement.
3.03 Airport Regulations
In the use of the Leased Premises, Lessee agrees to observe, obey and abide by all
ordinances, airfield rules and other regulations of City applicable thereto. In addition to the
foregoing, Lessee shall comply immediately with any and all directives issued by the Airport
Manager.
3.04 Amendment Required by FAA
This Agreement may be amended without further consideration for the purpose of
satisfying FAA requirements.
3.05 Assignment and Subletting
(a) Assignment
Lessee shall have no right to assign, mortgage, and pledge or otherwise transfer
this Agreement, either voluntarily or by operation of law, in whole or in part,
without the prior written consent of the City in each instance.
(b) Subletting
Lessee shall have no right to sublease all or any part of the Leased Premises
without the prior written consent of City.
3.06 Assurances Required By FAA
The FAA requires the City to include the seventeen (17) provisions set forth in Section
B, "Assurances," in the attached Exhibit C, "Assurances Required by the Federal Aviation
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page '. of 27
Administration," in all agreements (including, without limitation, leases, licenses, permits, and
contracts) with any person or entity who uses or performs work or conducts activities on City-
owned Airport premises for aeronautical or non-aeronautical purposes. By signing on this
Lease, Lessee confirms that it has reviewed these assurances and understands and agrees to
comply with them. Lessee agrees to fully comply with each of these assurances as they read in
Exhibit C or as they may be amended in the future by the FAA. The guidelines established
within Sections 2 through 4 of Section A of Exhibit C shall either be applicable to Lessee on the
Effective Date or may subsequently become applicable to Lessee, as a result of changing facts
and/or circumstances.
3.07 Authority of Agreement
Lessee warrants and represents that it has the right, power, and legal capacity to enter
into, and perform its obligations under this Agreement, without any additional approvals or
consents. The execution, delivery, and performance of this Agreement by the undersigned
Lessee representatives have been duly authorized by all necessary corporate action of Lessee,
and this Agreement will constitute a legal, valid, and binding obligation of Lessee, enforceable in
accordance with its terms.
3.08 Authority of the Airport Manager
The Airport Manager shall administer this Agreement on behalf of City. The Airport
Manager shall represent the City and communicate with the Lessee on behalf of the City. The
laws and rules applicable to the City will determine which City official or employee has the
authority to make any particular decision on behalf of the City.
Any appeals of these policies can be taken to the Airport Commission for review and
recommendation to the City Council.
3.09 California Law
This Agreement shall be interpreted and enforced in accordance with the laws of the
State of California. In the event of a dispute between the parties as to the language of this
Agreement or the construction or meaning of any term hereof, this Agreement shall be deemed
to have been drafted by the parties in equal parts so that no presumption or inferences
concerning its terms or interpretation may be construed against any party to this Agreement.
Any litigation filed by Lessee or City against the other regarding the terms of this
Agreement, performance of a party's obligations under this Agreement, or any other reason
related in any way to this Agreement, shall be filed in the California state courts in Ukiah,
California, and the appropriate California courts of appeal. Each party consents to the
jurisdiction of such courts and agrees to venue in Ukiah.
The prevailing party in any action to interpret or enforce this Lease shall be entitled to
recover its attorneys' fees and other costs of the litigation from the other party.
3.10 Cumulative Remedies
No remedy or election of remedies shall be deemed exclusive but shall, wherever
possible, be cumulative with all other remedies available at law or in equity.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 14 of 27
3.11 Entire Agreement
This Agreement, together with all attached exhibits, contains the entire agreement
between the parties, concerning the lease of the Leased Premises to Lessee. This Lease
supersedes and replaces any other representations, statements or agreements by or between
the parties concerning the lease of the Leased Premises to Lessee. This Agreement may be
amended only by written instrument duly executed by Lessor and Lessee, except as stipulated
in Section 3.04.
3.12 Execution by City Council
Submission of this document by City for review, examination or execution by Lessee
does not constitute a reservation of an option to lease space on the Airport, and this document
shall not be effective as a lease agreement, or otherwise, unless and until approved by the City
Council of the City and executed by the officer authorized by said Council.
3.13 Force Majeure
Neither City nor Lessee shall be deemed to be in breach of this Agreement if either is
prevented from performing any of its obligations herein by reason of strike, boycott, labor
dispute, embargo, shortage of energy or materials, act of God, act of a public enemy, act of a
superior governmental authority, weather conditions, rebellion, riot, sabotage, or any other
circumstance for which it is not responsible, or which is not within its control.
3.14 Hazardous Materials
(a) Lessee's Compliance with Environmental Laws
Lessee shall at all times in all respects comply with all environmental laws, and
any amendments thereto affecting Lessee's operation on the Airport, including all
federal, State and local laws, ordinances and regulations relating to Hazardous
Material. As used herein, the term "Hazardous Material" means any hazardous or toxic
substance, material or waste which is or becomes regulated by any local governmental
authority, the State of California or the United States Government. The term
"Hazardous Material" includes, without limitation, any material or substance which is:
(1) defined as a "Hazardous Waste" or "Extremely Hazardous Waste" or "Restricted
Hazardous Waste" under Section 25115, 25117 or 25122.7 or listed pursuant to
Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5
(Hazardous Waste Control Law); (2) defined as a "Hazardous Substance" under
Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8
(Carpenter-Presley-Tanner Hazardous Substance Account Act); (3) defined as a
"Hazardous Material" or "Hazardous Substance" or "Hazardous Waste" under Section
25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous
Materials Release Response Plans and Inventory); (4) defined as a "Hazardous
Substance" under Section 25281 of the California Health and Safety Code, Division 20,
Chapter 6.7 (Underground Storage of Hazardous Substances); (5) petroleum; (6)
asbestos; (7) listed under Article 9 or defined as "Hazardous Wastes" or "Extremely
Hazardous" pursuant to Article 11 of Title 22 of the California Administrative Code,
Division 4, Chapter 20; (8) designated as a "Hazardous Substance" pursuant to
Section 311 of the Federal Water Pollution Control Act (33 USC Section 1317); (9)
defined as a "Hazardous Waste" pursuant to Section 1004 of the Federal Resource
Conservation and Recovery Act, 42 USC Section 6901 et seq. (42 USC Section 6903)
or; (10) defined as a "Hazardous Substance" pursuant to Section 101 of the
Tenant City of Uk;.ah Municipal Airport
Agreement for tease of Property Page : r of 27
Comprehensive Environmental Response, Compensation and Liability Act, 42 USC
Section 9601 et seq. (42 USC Section 9601).
(b) Indemnification by Lessee
Lessee shall not cause or permit any Hazardous Material to be brought upon,
kept or used in or about the Leased Premises by Lessee, its agents, employees,
contractors or invitees without the prior written consent of City (which City shall not
unreasonably withhold or delay as long as Lessee demonstrates to the City's
reasonable satisfaction that such Hazardous Material is necessary or useful to
Lessee's business and will be used, kept and stored in a manner that complies with all
laws regulating any such Hazardous Material so brought upon, used or kept in or about
the Leased Premises). If Lessee breaches the obligations stated in the preceding
sentence, or if the presence of Hazardous Material on the property caused or permitted
by Lessee results in contamination of the Leased Premises, or if contamination of the
Leased Premises by Hazardous Material otherwise occurs for which Lessee is legally
liable to City for damage resulting there from, then Lessee shall indemnify, defend and
hold City harmless from any claims, judgments, damages, penalties, fines, costs,
liabilities or losses (including without limitation, diminution in value of the Leased
Premises and sums paid in settlement of claims, reasonable attorneys' fees, consultant
fees and expert fees) which arise during or after the term of the Agreement as a result
of such contamination. This indemnification of City by Lessee includes, without
limitation, costs incurred in connection with any investigation of site conditions or any
clean-up, remedial, removal or restoration work required by any federal, State or local
governmental agency or political subdivision because of Hazardous Material present in
the soil or ground water on or under the Leased Premises. Without limiting the
foregoing, if the presence of any Hazardous Material on the Leased Premises caused
or permitted by Lessee results in any contamination of the Leased Premises, Lessee
shall promptly take all actions at its sole expense as are necessary to clean up the
Leased Premises to the extent required by government agencies having jurisdiction. In
the event an order from a regulatory agency with jurisdiction over the Leased Premises
is issued to investigate, monitor or clean up any contamination on, under or emanating
from the Leased Premises , the City shall immediately notify Lessee and provide it the
opportunity to negotiate with the acting government authority and enter the property to
conduct investigatory, monitoring, or cleanup work, subject to reasonable conditions.
In the event Lessee is responsible for any remediation or cleanup work on the
premises after termination of the Agreement term, Lessee shall have the right to enter
the property for performance of such obligation, subject to reasonable conditions.
(c) Notices
Lessee shall immediately notify City in writing of any enforcement, clean-up,
removal or other governmental or regulatory action instituted, completed or threatened
pursuant to any Hazardous Materials laws. Lessee shall also supply to City as promptly
as possible, and in any event within ten (10) business days after Lessee first receives
or sends the same, with copies of all claims, reports, complaints, notices or warnings or
asserted violations relating in any way to the Leased Premises or Lessee's use thereof.
(d) Right of Entry
During the term of this Agreement, the Airport Manager shall have the right of
entry to test and determine the extent of any contamination of the Leased Premises.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 16 of 27
Entry for this purpose shall be with advance notice, at reasonable times, and should
not unreasonably interfere with Lessee's use of the premises.
(e) Lead-Based Paint
Lessee agrees that in any improvements on the Leased Premises, Lessee
agrees to be solely responsible for abatement of lead-based paint hazards, if Lessee's
use is deemed to require abatement of lead-based paint hazards. The Lessee further
agrees that in its use and occupancy of the Leased Premises, it will comply with Title X
and all applicable Federal, State, and local laws relating to lead-based paint, if any are
deemed to apply. City assumes no liability for damages for personal injury, illness,
disability, or death, to the Lessee or to any other person including members of the
general public, arising from or incident to the purchase, transportation, removal,
handling, use, disposition, or other activity causing or leading to contact of any kind
whatsoever with lead-based paint on the Leased Premises, whether Lessee and/or City
has properly warned or failed to properly warn the individual(s) injured.
3.15 Headings
The headings of the articles and Sections of this Agreement are inserted only as a
matter of convenience and for reference, and do not define or limit the scope or intent of any
provisions of this Agreement, and shall not be construed to affect in any manner the terms and
provisions hereof or the interpretation or construction thereof.
3.16 Indemnification of City
Lessee shall indemnify, defend and hold City and its elected representatives, officers,
agents and employees harmless from and against all liabilities, losses, costs, suits, claims,
judgments, expenses, fines or demands of any kind (including, but not limited to, costs of
investigation, court costs and expert fees) resulting from any injury, damage or death to any
person or property, of any nature whatsoever, and arising out of or alleged to arise out of the
use, occupancy or operations of Lessee, or any of its officers, representatives, agents,
employees, guests, patrons, contractors, subcontractors, licensees, subtenants, invitees, or
suppliers, at the Airport. Lessee shall not be liable for any injuries, death or damage to the
extent that such injury, death or damage is caused by the sole and active negligence of City, its
elected representatives, officers, agents or employees This Section 3.16 shall survive the
termination or expiration of this Agreement
3.17 Independent Contractor
Lessee is not an employee or agent of City by reason of this Agreement, or otherwise.
Lessee is an independent contractor, and as between City and Lessee, Lessee shall be solely
responsible for its acts and omissions arising from or relating to its operations or activities at
Airport, or lease of property herein.
3.18 Interpretation of Agreement
Nothing herein contained shall be construed or interpreted, in any manner whatsoever,
as limiting, relinquishing or waiving any of the rights of ownership enjoyed by City in and to
Airport property, or in any manner waiving or limiting City's control over the operation and
maintenance of the Airport property or in derogation of such governmental rights as City
possesses, except as is specifically provided for herein.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page of 27
3.19 Invalid Provisions
In the event of any covenant, condition or provision of this Agreement, or the
application thereof to any person, entity, or circumstances, shall to any extent be held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
covenants, conditions or provisions of this Agreement, or the application thereof to any person,
entity, or circumstance, shall remain in full force and effect and shall in no way be affected,
impaired or invalidated, provided that such invalidity, voiding or unenforceability of such
covenant, condition or provision does not materially prejudice either party in its respective rights
and obligations contained in the then remaining valid covenants, conditions or provisions of this
Agreement.
3.20 National Pollutant Discharge Elimination System
Operator shall comply with all federal and State regulations governing the National
Pollutant Discharge Elimination System (NPDES) including all future amendments of said
regulations, and procedures as may be adopted by federal, State or local agencies.
3.21 Noise Control
Lessee shall not conduct any operation or activity on the Leased Premises, or
elsewhere at Airport, which produces sound of such volume, frequency or intensity as to
constitute a nuisance. The Airport Manager shall have the sole and exclusive authority to
determine what constitutes a nuisance under the provisions of this Section, except that
operations and activities having noise levels not in violation of federal, State or local
governmental standards shall not be deemed a nuisance.
3.22 Nondiscrimination
Lessee, for itself, its personal representatives, successors in interest, and assigns, as
part of the consideration hereof, does hereby covenant and agree that (1) no person on the
grounds of race, color, creed, national origin, sex, age or handicap shall be excluded from
participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of
Lessee's facilities pursuant to its operations herein; (2) that in the furnishing of services on
Airport, no person on the grounds of race, color, creed, national origin, sex, age, or handicap
shall be excluded from participation in, denied the benefit of, or otherwise be subjected to
discrimination; (3) that Lessee shall use Airport 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
such Regulations may be amended.
3.23 Nonexclusive Rights
Nothing herein shall be construed to grant or authorize the granting of any exclusive
right or privilege within the meaning of Section 308 of the Federal Aviation Act for the conduct of
any activity on the Airport; provided, however, subject to the terms and provisions of this
Agreement, Lessee shall have the right to exclusive possession of the Leased Premises
described by Section 2.02.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 8 of 27
3.24 Non-waiver of Rights
No waiver of default by either party hereto of any of the terms, promises, covenants, or
conditions hereof to be performed, kept, and observed by the other party shall be construed as,
or shall operate as, a waiver of any subsequent default of any of the terms, promises,
covenants, or conditions herein contained, to be performed, kept, and observed by such other
party.
3.25 Notice of Claims and Suit
City and Lessee shall each give the other prompt and timely written notice of any
personal injury or other accident claims, and of any lawsuit coming to its knowledge when either
such claim or lawsuit arises out of or is in any way connected with the Leased Premises, the
operations of Lessee herein, or the construction or operation of Airport by City, which in any
way, directly, indirectly, contingently or otherwise, might reasonably affect the parties'
relationship under this Agreement.
Such notice shall be deemed prompt and timely if given within thirty (30) calendar days
following the date of receipt of such claim by an officer, agent, or employee of either party, and if
given within ten (i 0) calendar days following the date of service of process upon either party
with respect to any such lawsuit.
No provision of this Lease shall be deemed to waive or affect the application of the
California Government Claims Act contained in Title 1, Division 3.6, commencing with Section
810 of the California Government Code.
3.26 No Warranty Regarding Airport
City does not warrant that Airport will continue to be used as an airport during the term of
this Agreement. In the event that such airport use is terminated, whether temporarily or
permanently, Lessee shall neither claim, nor have entitlement to, any damages whatsoever from
City.
3.27 Nuisance and Waste
Lessee shall not erect, nor permit to be erected, any nuisance on the Leased
Premises, or permit any waste thereof. Lessee shall not permit any trash or garbage to
accumulate on or about the Leased Premises.
3.28 Prohibition of Liens
Lessee shall pay promptly, as due, all persons supplying labor and materials for any
alteration of, or improvement to, the Leased Premises, and shall permit no lien or claim to be
filed or prosecuted against City on account of such labor and materials furnished.
3.29 Release of Liability
City shall not be liable for, and is hereby released from any and all liability to Lessee, to
Lessee's insurance carrier or to anyone claiming under or through Lessee, for any loss or
damage whatsoever to the property or effects of Lessee resulting from the discharge of water or
other substance from pipes, sprinklers, conduits, containers, appurtenances thereof, or fixtures
thereto; or from any damage resulting from the discharge or failure of electric current,
regardless of cause or origin, except the active negligence of City, its employees or agents.
Tenant City of Uk!ah Mun cipal Airport
Agreerncnt for Lease}of Property Page 19 of 27
3.30 Removal of Lessee's Property
If Lessee is not in default as to the payment of any rent, fee, or other charge payable to
City herein, Lessee may remove its inventory, Trade Fixtures and furnishings from the Leased
Premises upon expiration or earlier termination of this Agreement. If Lessee does not elect, or
otherwise fails to remove the same, or any part thereof, within thirty (30) days following City's
regaining possession of the Leased Premises, City may, at its option, either require such
removal at Lessee's sole cost and expense, or keep such property, in which latter event, title to
the same shall vest in City without any obligation to pay Lessee with respect thereto.
3.31 Reports
Lessee shall provide City with any reasonable financial or statistical reports which the
Airport Manager may from time to time request by written notice to Lessee.
3.32 Restrictions and Regulations
This Agreement, and the rights herein granted, shall be subject to any and all
applicable federal, State and City rules, regulations, orders and restrictions which are now in
force or which may hereafter be adopted by any duly authorized governmental agency with
respect to Lessee's operation at Airport.
3.33 Right of Entry
City, its officers, agents, and employees shall have the right, without limitation,
throughout the term of this Agreement, to enter upon the Leased Premises for any lawful
purpose, including the purpose of determining whether Lessee is complying with its obligations
under this Lease.
Such entry by City shall not be deemed to excuse Lessee's performance of any
promise, term, condition, or covenant required of it by this Agreement, and shall not be deemed
to constitute waiver thereof by City.
3.34 Risk Reduction
Lessee shall neither use nor permit the use of the Leased Premises in such a manner
as to increase the risk which would affect the rate of insurance thereon in excess of that in
existence at the commencement of the term hereof.
3.35 Signs
As used herein, "sign" means any advertising sign, billboard, identification sign or
symbol, poster, or other similar device, regardless of content.
Lessee shall not erect, maintain, or display any sign on the Leased Premises, or
elsewhere at Airport, without the prior written consent of the Airport Manager. Lessee shall
submit drawings, sketches, designs, and dimensions of such signs to the Ukiah Airport Manager
when requesting such approval. All such signs shall be consistent with City's general sign
policy for Airport and the provisions of the Ukiah City Code. Any condition, restriction, or
limitation as to use or appearance of such signs as may be stated by the Airport Manager in
writing shall become a part of this Agreement, as if specifically set forth herein.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 20 of 27
3.36 Subordination
This agreement shall be subordinate to the provisions of any existing and future
agreement, rules and regulations between Lessor and the United States of America, or any
agency or administrative arm thereof relating to the operation or maintenance of the Ukiah
Municipal Airport or the conduct or operation of any flight school or other governmental
operation thereon.
3.37 Successors and Assigns
The provisions of this Agreement shall be binding upon and inure to the benefit of the
respective successors, assigns, heirs, and personal representatives of the parties hereto,
3.38 Surrender of Leased Premises
City is not required to give Lessee any notice to quit possession of the Leased
Premises upon expiration or earlier termination of this Agreement. Lessee shall peaceably
surrender possession of the Leased Premises upon termination of this Agreement in as good
order and condition as when received, excepting reasonable wear, destruction by lightning or
other natural causes, or fire not caused by the acts or omissions of Lessee, its officers, agents,
employees, subcontractors, customers, invitees, or other persons doing business with Lessee
or on the Leased Premises with the consent of Lessee.
3.39 Taxes
Lessee shall, at its sole cost and expense, pay any and all taxes for which it is
responsible, or which may be assessed against it.
(a) Possessory Interest and Property Taxation
Under this Agreement a possessory interest subject to property taxation may be
created and that the party in whom the possessory interest is vested may be subject to
the payment of property taxes and special taxes levied on such interest.
Lessee shall pay any and all taxes, assessments, and other charges of
whatsoever character that may be levied or charged upon Lessee's leasehold interest
or its improvements, operations, business inventory or business equipment.
(b) Right to Contest Taxes
Lessee shall have the right to contest at its own expense and without cost,
expense or liability to the City, in its own name, or, to the extent reasonably necessary,
in City's name, in good faith and by all appropriate proceedings, the amount,
applicability, or validity of any tax assessment for which the Lessee is liable under the
terms of this Lease or arising out of its use of the Leased Premises.
In the event Lessee initiates such contest, City shall reasonably cooperate with
Lessee, provided that such contest will not subject any part of the surface of Airport
property to forfeiture or loss.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 2 1 of 27
If, at any time, payment of any tax or assessment becomes necessary to prevent
any forfeiture or loss, Lessee shall timely pay such tax or assessment to prevent such
forfeiture or loss.
3.40 Time of the Essence
Time is of the essence in the performance of this Agreement.
3.41 Trash and Garbage
Lessee shall, at its sole cost and expense, provide a complete and proper arrangement
for the adequate sanitary handling and disposal away from Airport of all trash, garbage, and
other refuse resulting from, or in any way associated with, Lessee's operations. Such
arrangements shall include, but not be limited to, the use of suitable covered metal receptacles
at the Leased Premises for such garbage, trash and other refuse, and shall comply with the
applicable provisions of the Ukiah City Code.
3.42 Vehicular and Equipment Parking
Vehicular and equipment parking by Lessee, its employees, agents, suppliers,
subcontractors, customers, guests or invitees shall be restricted to Lessee's Leased Premises.
Parking in areas other than the Leased Premises shall be subject such regulations or
restrictions as apply to the general public, including the payment of such parking fees and
charges as may from time to time be in effect for designated areas.
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 2�. of 27
3.43 Execution of Agreement
IN WITNESS WHEREOF, the parties have entered this Agreement on the Effective
Date.
CITY OF UKIAH
8y:4!<
-
S ge Sangiacomo, City Manager
Lessee:
By:
David Nelson dba Northern Sky RV Repair
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 2 3 of 27
EXHIBIT A
Tenant City of Ukiah Municipal Airport
Agreement for Lease of Property Page 2 4 o! 27
CITY OF UKIAH
INSURANCE REQUIREMENTS FOR LESSEES
Without limiting Lessee's obligation to indemnify the City under the attached Agreement for Lease
of Property (Agreement), Lessee shall procure and maintain for the duration of the Agreement
insurance against claims for injuries to persons or damages to property which may arise from or in
connection with Lessee's space, products and operations pursuant to the Agreement. City shall
retain the right at any time to review the coverage, form, and amount of the insurance required
hereby. If in the opinion of the City's Risk Management Office the insurance provisions in these
requirements do not provide adequate protection for City and for members of the public, City may
require Lessee to obtain insurance sufficient in coverage, form and amount to provide adequate
protection. City's requirements shall be reasonable but shall be imposed to assure protection from
and against the kind and extent of risks that exist at the time a change in insurance is required.
Verification of Coverage
Lessee shall furnish the City with certificates of insurance evidencing coverage required herein,
including copies of endorsements with specific reference to each of the coverage modifications or
amendments set forth below. Certified copies of required endorsements must be attached to
provided certificates. All certificates are to be received and approved by the City prior to the
effective date of the Agreement. The City reserves the right to require that Lessee provide
complete, certified copies of any policy of insurance offered in compliance with these specifications.
As an alternative to insurance certificates, the Lessee's insurer may voluntarily provide complete,
certified copies of all required insurance policies, including endorsements, affecting the coverage
required by these specifications.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG
0001).
2. Insurance Services Office form number CA 0001 (Ed. 6192) covering Automobile
Liability, code 1 (any auto).
3. Workers' Compensation insurance as required by State of California and Employer's
Liability Insurance.
4. Cargo Legal Liability (if applicable)
Page 1 o 1 '3
Insurance Requirements EXHIBIT B
Minimum Limits of Insurance
Lessee shall maintain for itself and its officers, representatives, agents, employees, guests, patrons,
contractors, subcontractors, licensees, invitees, and suppliers limits no less than:
1. General Liability: $2,000,000 per occurrence for bodily injury, personal injury and
property damage. If Commercial General Liability Insurance or other form with a general
aggregate limit is used, either the general aggregate limit shall apply separately to this
project/location or the general aggregate limit shall be twice the required occurrence
limit. Fire legal not less than $1,000,000,
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage for
all owned, non-owned, and hired vehicles operated by or on behalf of Lessee on the
Leased Premises, or elsewhere at the Airport, including any additional or replacement
vehicles.
3. Workers' Compensation: Statutory
4. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
5. Cargo Legal Liability: $100,000 covering any non-owned cargo in the care, custody and
control of Lessee at Airport.
Deductibles and Self-Insured Retention
Any deductibles or self-insured retention must be declared to and approved by the City. At the
option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured
retention as respects the City, its officers, officials, employees and volunteers; or the Lessee shall
procure a bond guaranteeing payment of losses and related investigations, claim administration and
defense expenses.
Other Insurance Provisions
The general liability and automobile 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 activities performed by or on
behalf of the Lessee; products and completed operations of the Lessee; premises
owned, occupied or used by the Lessee; or automobiles owned, leased, hired or
borrowed by the Lessee. The coverage shall contain no special limitations on the
scope of protection afforded to the City, its officers, officials, employees, agents or
volunteers.
Page 2 of 3
Insurance Requirements EXHIBIT B
2. For any claims related to Lessee's activities pursuant to the Agreement, the Lessee's
insurance coverage shall be primary insurance as respects the City, its officers, officials,
employees, agents and volunteers. 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.
3. Any failure to comply with reporting or other provisions of the policies including breaches
of warranties shall not affect coverage provided to the City, its officers, officials,
employees, agents or volunteers.
4. The 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.
5. Each insurance policy required by this clause shall be endorsed to state that coverage
shall not be suspended, voided, canceled by either party, reduced in coverage or in
limits except after thirty (30) days' prior written notice by certified mail, return receipt
requested, has been received by the City.
6. To the extent permitted by law, the workers' compensation policy required hereunder
shall be endorsed to state that the workers' compensation carrier waives its right of
subrogation against the City, its officers, officials, employees, agents or volunteers,
which might arise by reason of payment under such policy in connection with work
performed under this Agreement by the Lessee.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A-for
financial strength, AA for long-term credit rating and AMB-1 for short-term credit rating.. The City
Risk Manager may waive or alter this requirement, or accept self-insurance in lieu of any required
policy of insurance if, in the opinion of the Risk Manager, the interests of the City and the general
public are adequately protected.
Page 3 o F
Insurance Requirements EXHIBIT B
ASSURANCES REQUIRED BY THE FEDERAL AVIATION ADMINISTRATION
SECTION A
Purpose, Classes of Activities, Applicability of Assurances
And
Definition of Terms
1. PURPOSE:
The City of Ukiah, California, an airport owner subject to both Federal Grant Agreement
obligation; is required by the Federal Aviation Administration (FAA) to include specific provisions,
addressing, among other things, the requirements of Title VI of the Civil Rights Act of 1964,
Exclusive Rights prohibitions, and Affirmative Action items contained in Title 14 Code of Federal
Regulations Part 152, within all agreements (including, without limitation, leases, licenses, permits,
and contracts) between said City and any and all entities who use or perform work or conduct
activities on City owned or operated airport premises for aeronautical or non-aeronautical purposes.
The purpose of this Exhibit is to appropriately incorporate within the "Agreement," to which it is
attached and made a part of by reference therein, the seventeen (17) numbered provisions
contained within Section "B," "ASSURANCES," below.
2. CLASSES OF ACTIVITIES:
The applicability of each of the seventeen (17) numbered provisions contained within
Section "B," "ASSURANCES," below, to that certain "Agreement" to which this Exhibit is attached
and made a part of by reference therein, is, among other things, dependent upon the type of work
to be performed and/or the type of activities to be conducted at the airport(s) by the Lessee,
Permittee, Licensee, Operator, etc., named therein, pursuant to and in accordance with those
certain rights, privileges, uses, and operations, expressly granted and/or authorized there under.
The following activity classifications, as established by the FAA, are provided for the information
and guidance of all concerned:
a. Direct and Supportive Aeronautical: The following activities, commonly conducted
on airports, are AERONAUTICAL ACTIVITIES:
(1) Aerial Firefighting
(2) Charter Operations
(3) Pilot Training
(4) Aircraft rental and sightseeing
(5) Air Ambulance
(6) Crop dusting
(7) Aerial Advertising and Surveying
(8) Aircraft Sales and Services
(9) Sale of Aviation Petroleum products (whether or not conducted in conjunction
with other included activities)
(10) Repair and Maintenance of Aircraft
(11) Sale of Aircraft Parts
(12) Any other activities which, because of their direct relationship to the operation
of an aircraft, can appropriately be regarded as an "aeronautical activity."
Page 1 of 5
Assurances Required by the Federal Aviation Administration EXHIBIT C
b. Complementary Aeronautical: The following activities, when conducted on airports,
are COMPLEMENTARY AERONAUTICAL ACTIVITIES:
(1) Ground Transportation (taxis, car rentals, limousines)
(2) Restaurants
(3) Barber Shops
(4) Auto Parking Lots
(5) Recreational Facilities
(6) Any other commodities, services or accommodations made available to the
general public.
C. Non-Aeronautical: The following activities, when conducted on airports, being
neither"Direct and Supportive Aeronautical" nor "Complementary Aeronautical," as
defined above, are NON-AERONAUTICAL ACTIVITIES.
(1) Manufacturing
(2) Agriculture
(3) Any other activity not appropriately falling within the above-said "Direct and
Supportive Aeronautical' and/or"Complementary Aeronautical,"
classifications.
3. APPLICABILITY OF NUMBERED PROVISIONS WITHIN SECTION "B," "ASSURANCES,"
BELOW TO CLASS (ES) OF ACTIVITIES SPECIFIED WITHIN PARAGRAPH 2, ABOVE:
The applicability of the numbered provisions within Section "B," "Assurances," below, to the
respective classes of activities specified within sub-paragraphs 2a, b, and c, of this Section `A,"
above, is as follows:
NUMBERED PROVISIONS
ACTIVITY CLASS APPLICABLE TO CLASS
Direct and Supportive Aeronautical 1 through 17
Complementary Aeronautical 1 through 16
Non-Aeronautical 1 through 16
4. DEFINITION OF TERMS USED WITHIN SECTION "B." "ASSURANCES," BELOW:
In order to facilitate ease of fulfillment of the requirement specified within paragraph 1 of
this Section 'A" this Exhibit is designed to be attached to and made a part of all City of Ukiah
Airport "Agreements," including, without limitation, leases, licenses, permits, contracts, etc.
Therefore, in the event the "Agreement" to which this Exhibit is attached and made a part of by
reference therein shall be other than a lease or be a lease within which the parties thereto are
therein called or referred to other than "Lessor" and "Lessee," then, where the terms "Lessor,"
"Lessee," and "Lease" appear, as shown, within the seventeen (17) numbered "ASSURANCES"
listed within Section "B," below, said terms shall be deemed to mean "CITY OF UKIAH,
CALIFORNIA," "THE OTHER PARTY TO THE PARTICULAR AGREEMENT" (e.g., Licensee,
Permittee, Concessionaire, Operator, etc.), and the "AGREEMENT" itself (regardless of title, type
and/or description, including, without limitation, Leases, Agreements, Licenses, Permits, and
Contracts) respectively. Where the terms "LAND LEASED" and "LEASED PREMISES" (and all
reasonably readily identifiable derivations thereof) appear, said terms shall be deemed to mean the
Page 2 of 5
Assurances Required by the Federal Aviation Administration EXHIBIT C
land(s) and/or premises specifically identified within the "Agreement" as being that/those to which
leasehold tenancies, occupancies, use(s), operation(s), and/or access(es) by the Lessee,
Permittee, Licensee, Operator, Concessionaire, etc., are expressly authorized. In all cases, where
the term "AIRPORT" appears, as shown, it shall be deemed to mean Ukiah Regional Airport as
identified within the "Agreement" between the parties as being the Airport to which the "Agreement"
pertains.
SECTION B
Assurances
1. The "LESSEE," for itself, its 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 if the "Agreement" to which this Exhibit is attached is a lease) that in the event
facilities are constructed, maintained, or otherwise operated on the said property described in this
"LEASE" for a purpose for which a U.S. Department of Transportation (DOT) program or activity is
extended or for another purpose involving the provision of similar services or benefits, the
"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.
2. The "LESSEE," for itself, its 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 if the agreement to which this Exhibit is attached is a lease) 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 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
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 the "LESSEE" shall 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, Non-
discrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of
Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.
3. That in the event of breach of any of the above nondiscrimination covenants, "LESSOR" shall
have the right to terminate the "LEASE" and to reenter and repossess said land and the facilities
thereon, and hold the same as if said "LEASE" had never been made or issued. This provision
does not become effective until the procedures of 49 CFR Part 21 are followed and completed
including expiration of appeal rights.
4. "LESSEE` shall furnish its accommodations and/or services on a fair, equal and not unjustly
discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly
discriminatory prices for each unit or service; PROVIDED, THAT the "LESSEE" may be allowed to
make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions
to volume purchasers.
Page 3 of 5
Assurances Required by the Federal Aviation Administration EXHIBIT C
5. Non-compliance with Provision 4 above shall constitute a material breach thereof and in the
event of such non-compliance the CITY OF UKIAH, CALIFORNIA ("LESSOR") shall have the right
to terminate this "LEASE" and the estate hereby created without liability therefore or at the election
of the "LESSOR" or the United States either or both said Governments shall have the right to
judicially enforce Provisions 1, 2, 3, and 4 above.
6, "LESSEE" agrees that it shall insert the above five (5) provisions in any lease, agreement,
contract, etc., 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" herein 'LEASED."
7. The "LESSEE" assures that it will undertake an affirmative action program as required by 14
CFR Part 152, Subpart E, to ensure that no person shall on the grounds of race, creed, color,
national origin, or sex be excluded from participating in any employment activities covered in 14
CFR Part 152, Subpart E. The "LESSEE" assures that no person shall be excluded on these
grounds from participating in or receiving the services or benefits of any program or activity covered
by this subpart. The "LESSEE" assures that it will require that its covered sub organizations
provide assurances to the "LESSEE" that they similarly will undertake affirmative action programs
and that they will require assurances from their sub organizations, as required by 14 CFR 152,
Subpart E, to the same effect.
8. The "LESSOR" reserves the right to further develop or improve the landing area of the
"Ai-rport" as it sees fit, regardless of the desires or view of the "LESSEE" and without interference or
hindrance.
9. The"LESSOR" reserves the right, but shall not be obl-,gated to the "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 the "LESSEE" in this regard.
10. This"LEASE" shall be subordinate to the provisions and requirements of any existing or future
agreement between the "LESSOR" and the United States, relative to the development, operation or
maintenance of the "Airport."
11. There is hereby reserved to the "LESSOR." its successors and assigns, for the use and
benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of
the "premises" herein "LEASED." This public right of 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 "Airport."
12. "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
"LEASED PREMISES," or in the event of any planned modification or alteration of any present or
future building or structure situated on the "LEASED PREMISES."
13. The "LESSEE." by accepting this "LEASE," expressly agrees for itself, its successors and
assigns that it will not erect nor permit the erection of any structure or object, nor permit the growth
of any tree on the "land leased" hereunder which would exceed the height limits of Part 77 of the
Federal Aviation Regulations. In the event the aforesaid covenants are breached, "LESSOR" (the
owner) reserves the right to enter upon the "land leased" hereunder and to remove the offending
structure or object and cut the offending tree, all of which shall be at the expense of the "LESSEE."
Page 4 of 5
Assurances Required by the Federal Aviation Administration EXHIBIT C
14. The "LESSEE," by accepting this `LEASE,' agrees for itself, its successors and assigns, that it
will not make use of the "LEASED PREMISES" in any manner which might interfere with the landing
and/or taking off of aircraft at and/or from the "AIRPORT' (either Sacramento International Airport,
Sacramento Executive Airport or Mather Field, as applicable) or otherwise constitute a hazard. In
the event the aforesaid covenant is breached, the 'LESSOR" (owner) reserves the right to enter
upon the'premises hereby leased" and cause the abatement of such interference at the expense of
the "LESSEE."
15. This "LEASE,' 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 said "AIRPORT" or the exclusive or nonexclusive use of the
"AIRPORT" by the United States during the time of war or national emergency.
16. It is the policy of the Department of Transportation (DOT) that disadvantaged and minority
business enterprises as defined in 49 CFR Part 23 shall have the maximum opportunity to
participate in the performance of leases as defined in 49 CFR 23.5. Consequently, these leases
are subject to 49 CFR Part 23, as applicable. "LESSEE" hereby covenants and agrees that no
person shall be excluded from participation in, denied the benefits of or otherwise discriminated
against in connection with the award and performance of any contract, including leases, covered by
49 CFR Part 23 on the grounds of race, color, national origin or sex. "LESSEE" agrees that it will
include the above clauses in all sub-leases and cause sub lessees to similarly include the clauses
in further sub-leases.
17. It is understood and agreed that nothing herein contained shall be construed to grant or
authorize the granting of an exclusive right within the meaning of Section 308a of the Federal
Aviation Act of 1958 (49 U.S.C. 1349a).
Page 5 of 5
Assurances Required by the Federal Aviation Administration EXHIBIT C