HomeMy WebLinkAboutStaff Report 4.C 03/05/2018DATE: March 5, 2018
Agenda Item #4.
TO: Honorable yor and Members of the City Council through City Manager
Ff �.
FROM: anPublic Works and Utilities Director
Bob atterson —Airport Manager
SUBJECT: Introduction of an Ordinance (First Reading) Approving a Commercial Lease
Agreement Between Mangon Aircraft, Inc., and the City of Petaluma for Hangar
18D Located at the Petaluma Airport for Operation of a Flight School and Related
Aircraft Storage; Approving Amendment 1 to the Lease Agreement Between
Petaluma Pilot Training Center, Inc. and the City to Hangar 18B to Terminate that
Lease Agreement; and Approving Amendment 3 to the Ground Lease Agreement
Between Mangon Aircraft Inc. and the City of Petaluma to Delete Flight School
Operations As a Permitted Use Under that Lease
RECOMMENDATION
It is recommended that the City Council Introduce an Ordinance (First Reading) Approving a
Commercial Lease Agreement Between Mangon Aircraft, Inc., and the City of Petaluma for
Hangar 18D Located at the Petaluma Airport for Operation of a Flight School and Related
Aircraft Storage; Approving Amendment 1 to the Lease Agreement Between Petaluma Pilot
Training Center, Inc. and the City to Hangar 18B to Terminate that Lease Agreement; and
Approving Amendment 3 to the Ground Lease Agreement Between Mangon Aircraft Inc. and
the City of Petaluma to Delete Flight School Operations As a Permitted Use Under that Lease.
BACKGROUND
Mangon Aircraft Inc. wishes to enter into a commercial lease for executive hangar 18D for flight
training and aircraft rental activities. Upon review of the request, it was determined that the lease
of the hangar would require an amendment of both leases currently held by Mangon Aircraft,
Inc., and its subsidiary Petaluma Pilot Training Center, Inc. (PPTC). Mangon entered into a
Lease Agreement with the City of Petaluma for a limited service commercial operation on the
63,120 square foot (sf) ground lease at the Airport on June 9, 1988. The commercial operation
included aircraft maintenance and related services, retail aircraft parts sales, and retail sales of
used aircraft. On March 18, 2005, Amendment One to the Lease Agreement was executed to
reduce the total land lease by 34,020 sf, extend the lease term to 2038, and change the lease fiom
Walter Mangon to Mangon Aircraft, Inc. Amendment Number Two to the Lease Agreement was
approved on February 25, 2010 to license flight instruction and aircraft rental as allowable
activities for the leasehold. Subsequently, Mangon began operation of the flight school in a
temporary construction style trailer next to their existing building. In 2014, the trailer was
removed because it had not received a building permit. Since then, Mangon Aircraft has operated
the flight school and rental business out of the existing building, which has proven not to be a
long-term solution. To partially address this, Mangon Aircraft, Inc. subsidiary, Petaluma Pilot
Training Center (PPTC), leased City Hangar 18B on March 26, 2015 to store rental aircraft.
The Lease Policy and Standards For Services and Operations at the Petaluma Municipal Airport,
adopted in June 1992, set criteria for approval of a commercial lease, and require an applicant
desiring to engage in any commercial activity at the Airport to submit a written application to the
City. On February 5, 2015, the Airport Commission reviewed the application and recommended
to move forward with a Commercial Lease Agreement with Mangon Aircraft, Inc. for the
Executive Hangar. The proposed lease was slated to move forward approximately 1 V2 years ago,
but was delayed at the request of the leasee.
Executive Hangars 18A through D are constructed to allow public access through a storefront
next to a public parking area and do not require access through the airport fence onto the tarmac
operating area. This feature makes these hangars suitable for a commercial operation that serves
the public. The executive hangars are located in the aviation commercial sub -zone, which allows
for aircraft storage, aircraft maintenance and repair, sales of aircraft fuel and lubricants, sale of
aircraft and aviation equipment, aviation schools and aircraft rental, air taxi and charter services,
and avionics sales and repairs. Therefore, the proposed lease meets the operational and zoning
requirements of the hangar.
DISCUSSION
Mangon Aircraft, Inc. requested a commercial lease for Hangar 18D for use as a flight training
and aircraft rental facility. Hangars in row 18 were designed for and zoned to accommodate
commercial use and to provide public access without requiring the public to pass through the
fence onto the airport operating areas. The Airport Commission has long intended that the
executive hangars could be used for commercial purposes. The Airport Commission has
previously approved these hangars for commercial use and recommended a commercial usage
lease rate that is 1.5 times the standard hangar lease rate for storage of aircraft. Calibro Avionics
entered into a commercial lease for 18A on August 10, 2010. The proposed lease with Mangon
Aircraft Inc. uses this recommended commercial rate. Based on their analysis of the lease
application, the Airport Commission determined that Mangon Aircraft Inc. meets the minimum
requirements to operate a flight school and aircraft rental operations in an executive hangar.
The proposed lease would be for three years with the option of extending the term for an
additional two years. The proposed rate for the commercial lease is $0.645 per square foot with a
rate escalator based on CPI to be adjusted each July 1 during the term of the lease. The minimum
limits of insurance for flight training and aircraft rental business is as follows: Aviation General
Liability $2 million minimum coverage; Aircraft Liability $1 million minimum coverage;
Automobile Liability $1 million minimum coverage (if automobiles are used in the flight school
and aircraft rental operations); Employers Liability $1 million minimum coverage; and the State
of California Workers' Compensation minimum limits.
2
A California Environmental Quality Act (CEQA) review of the proposed lease was performed
and found that it meets the conditions for the Existing Facilities exemption pursuant to Section
15301 of the CEQA guidelines. Specifically, the project qualifies for a CEQA exemption for the
following reasons:
• The proposed project is consistent with the General Plan land use designation and
complies with established zoning regulations;
• The Project is a permitted use at the Petaluma Municipal Airport;
• Leasing of and minor alterations to the Petaluma Municipal Airport is identified as an
example of appropriate CEQA exemptions in the City's Environmental Review
Guidelines;
• The site is void of natural vegetation and there is no habitat that would support
endangered, rare or threatened species;
• The project would not result in any significant effects relating to traffic, noise, air quality,
or water quality;
• There are no exceptions that would preclude application of the exemption, and
• The project is adequately served by all required utilities and public services.
Based on the CEQA review, which is detailed in Attachment 5 hereto, it is recommended that
upon approval of a commercial lease to operate the flight school and aircraft leasing out of
hangar 18D, Mangon Aircraft Inc. be required to cease these activities at 501 Sky Ranch Drive
under the commercial ground lease, and at hangar 18B for storage of aircraft under the lease with
PPTC. For that reason, Amendment Number One to the Hangar Lease Agreement for PPTC and
Amendment Number Three to the Ground Lease Agreement, shown as attachments 3 and 4,
respectively, were prepared.
Two letters expressing objection to the proposed lease were received. On March 10, 2015, a
letter from Gary Schoenlein representing Aeroventure, Inc. was received stating opposition to a
commercial hangar agreement because, in part, he felt these hangars were not designed for
commercial use. A second letter dated April 27, 2015 from Elizabeth Cady expressed concerns
over the proposed commercial lease on a basis of fairness to others who were required to build
private structures to conduct commercial activities. She was also concerned that Mr. Schoenlein
was not given notice of the meeting in which the Airport Commission discussed his letter of
objection. These letters of objection have been shared with the Airport Commission and
responded to by staff.
FINANCIAL IMPACTS
The proposed action to terminate the existing aircraft storage' lease of hangar 18B and to initiate
a new commercial lease of Hangar 18D at a 50% higher cormnercial lease rate will increase
airport revenue by $4,721 per year for the same size space.
ATTACHMENTS
1. Ordinance
2. Exhibit A to Resolution: Commercial Lease Agreement for Hangar 18D
3. Exhibit B to Resolution: Amendment Number 1 with Petaluma Pilot Training Center
4. Exhibit C to Resolution: Third amendment to lease Agreement (Ground Lease)
5. Justification for Class I Exemption Commercial lease Agreement Airport Hangar 18B
0
Attachment 1
EFFECTIVE DATE ORDINANCE NO. N.C.S.
OF ORDINANCE
Introduced by Seconded by
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING
REAL ESTATE TRANSACTION DOCUMENTS, BETWEEN THE CITY OF
PETALUMA, AS LANDLORD, MANGON AIRCRAFT, INC., AS TENANT AND
PETALUMA PILOT TRAINING CENTER AS TENANT, AND AUTHORIZING THE
CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO COMPLETE
THE REAL ESTATE TRANSACTION
WHEREAS, Section 46 of the Charter of the City of Petaluma requires that specified
actions for the acquisition, sale, or lease of real property be taken by Ordinance; and,
WHEREAS, Landlord owns and operates the Petaluma Municipal Airport located at 601
Sky Ranch Drive, Petaluma, CA. , which has been improved with hangars, among which are
hangars commonly referred to as Hangar 18B and 18D located within the Aviation Commercial
Zoning Area ("Premises"); and
WHEREAS, WHEREAS, on March 26, 2105, Landlord and Petaluma Pilot Training
Center, Inc., a California Corporation and subsidiary of Tenant, ("PPTC") entered into a lease
consistent with form lease documents approved by the Petaluma City Council on February 24,
2014, by Resolution No. 2014-024 N.C.S., approving the use of form Hangar Lease Agreement,
for Hangar 1813, also referred to herein as the Leased Premises; and
WHEREAS, Mangon Aircraft, Inc. is
City property located at 501 Sky Ranch Drive
instruction and aircraft rental; and
the Parent Company of PPTC currently leases
and such lease allows for Tenant to offer flight
WHEREAS, Tenant desires to move its flight instruction and aircraft rental to the
Leased Premises at Hangar 18D; and
WHEREAS, on January 12, 2015, Tenant submitted an application requesting that it be
allowed to offer flight instruction and aircraft rental at the Leased Premises of Hangar 18D; and
WHEREAS, PPTC and Landlord agree to terminate the lease between PPTC and
Landlord for Hangar 1813, effective immediately, to allow for Mangon Aircraft, Inc. to lease the
5
Leased Premises of Hangar 18D for the purpose of flight instruction and training of personnel in
flight instruction; and
WHEREAS, Landlord deems it advantageous to itself and the operation of the
Airport to lease certain portions of Airport land and facilities as further described herein,
together with certain privileges, right, uses and interest therein, as hereinafter set forth for the
proposed use set forth in the Application; and
WHEREAS, Amendment three (3) to the Mangon Aircraft Inc. Lease would require
flight instruction and aircraft rental to take place in Leased Premises of Hangar 181); and
WHEREAS, the City Council finds this action qualifies for categorical exemption under
the California Environmental Quality Act (CEQA) pursuant to Title 14, Chapter 3 of the
California Code of Regulations (CEQA Guidelines), sections 15061, 15301 because:
a. The proposed plan is consistent with the General Plan Use;
b. The project is a permitted use at the Petaluma Municipal Airport;
c. The project would not result in any significant effects relating to traffic, noise, air
quality,
d. or water quality;
e. There are no exceptions that would preclude application of the exemption; and
f. The project is adequately served by all required utilities and public service.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
PETALUMA AS FOLLOWS:
Section 1: Findings. Based upon the City staff report, presentation, and input at the
public meeting, based upon substantial evidence in the record, the City Council hereby makes the
following findings:
a. The above recitals are true and correct, and incorporated herein.
b. The Lease is consistent with the City's following the Grant Assurances because it
promotes Aviation, follows adopted commercial lease standards, and treats all
parties fairly.
c. The Lease is consistent with the Lease Standards because of the application
process.
Section 2: The City Council approves the Commercial Lease Agreement between the
City of Petaluma, as landlord, and Mangon Aircraft, Inc., as Tenant for Hangar 18D as attached
herein as Exhibit A to the Resolution. Approval of the Commercial Lease Agreement is
contingent upon the execution of Amendment No. 1, as attached hereto as Exhibit B.
Section 3: The City Council approves Amendment No. 1 to the Hangar Lease
Agreement, between the City of Petaluma, as Landlord, and Petaluma Pilot Training Center, as
Tenant, a copy of which is attached hereto as Exhibit B.
3
Section 4: The City Council approves Amendment No. 3 to the Lease Agreement
between the City of Petaluma, as Landlord, and Mangon Aircraft, Inc., as Tenant, a copy of
which is attached hereto as Exhibit C.
Section 5: On behalf of the City, the City Manager is authorized and directed to
execute documents substantially in accordance with Exhibits A, B, and C as determined by the
City Attorney, and all other documents reasonably necessary to complete the lease transaction.
Section 6: If any section, subsection, sentence, clause, phrase or work of this
Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court
of competent jurisdiction or preempted by State legislation, such decision or legislation shall not
affect the validity of the remaining portions of this Ordinance. The City Council of the City of
Petaluma hereby declares that it would have passed and adopted this Ordinance and each and all
provisions thereof irrespective of the fact that any one or more of said provisions be declared
unconstitutional, unlawful other otherwise invalid.
Section 5: This Ordinance shall become effective thirty (30) days after the date of its
adoption by the Petaluma City Council.
Section 6: The City Clerk is hereby directed to publish or post this Ordinance or a
synopsis for the period and in the manner provided by the City Charter and any other applicable
law.
INTRODUCED and ordered posted this _ day of 2018.
ADOPTED this day of , 2018 by the following vote:
Ayes:
Noes: None
Abstain:
None
Absent:
None
ATTEST:
Claire Cooper, CMC, City Clerk
David Glass, Mayor
APPROVED AS TO FORM:
Eric W. Danly, City Attorney
7
Attachment 2
Exhibit A to Resolution
COMMERCIAL LEASE AGREEMENT
THIS LEASE AGREEMENT ("Lease") is made and entered into as of the day of
2016 (the "Effective Date"), by and between the City of Petaluma, a California
municipal corporation, hereinafter referred to as "Landlord," and Mangon Aircraft, Inc., a
California corporation referred to herein as "Tenant. " Landlord and Tenant are hereinafter
individually referred to as "Party" and collectively referred to as the "Parties."
WITNESSETH
WHEREAS, Landlord is a California municipal corporation duly organized and operating
under the laws of the State of California, and owns all that certain real property commonly
referred to as the Petaluma Municipal Airport ("Airport"), located at 601 Sky Ranch Road,
Petaluma, California (the "Property"), including that certain improved property consisting of
approximately 3,764 square feet, commonly known as Hangar 18D, located within the Aviation
Commercial Subzone of the Airport, as more particularly described in Exhibit A attached hereto
(the "Leased Premises"); and
WHEREAS, Section 46 of the Charter of the City of Petaluma requires that specified actions
for the acquisition, sale, or lease of real property be taken by Ordinance; and,
WHEREAS, Chapter 16.06 of the Petaluma Municipal Code governing Airport Leases was
enacted in satisfaction of Section 46 of the City Charter ordinance requirement concerning leases to
Airport property; and
WHEREAS, Section 16.06.200 of Chapter 16.06 provides that the City Council may
approve ground leases and specialized leases by resolution and Section 16.06.300 of Chapter 16.06
provides that the City Manager may execute on behalf of the City Airport lease agreements approved
by the City Council by resolution; and
WHEREAS, the Airport has been improved with various facilities; and
WHEREAS, Tenant has entered into a ground lease agreement ("Ground Lease") with the
Landlord to a portion of the Airport located at 501 Sky Ranch Drive which the Tennant has
improved with facilities Tenant has operated to provide aircraft maintenance and related services,
aircraft parts sales and retail sales of aircraft, and flight school services, and such Ground Lease has
been amended from time to time in support of Tennant's operations at the Airport; and
WHEREAS, Landlord -owned improvements at the Airport include in addition to the Leased
Premises various hangars, include the hangar designated as Hangar 1813; and
WHEREAS, on March 26, 2015, Petaluma Pilot Training Center, Inc., a California
Corporation and subsidiary of Tennant, ("PPTC") entered into an agreement with the Landlord
pursuant to Petaluma Municipal Code Chapter 16.06 to lease Hangar 18B for aircraft storage; and
WHEREAS, on January 12, 2015, Tennant submitted an application requesting that it be
allowed to offer flight instruction and aircraft rental at the Leased Premises and Tennant currently
desires to move its flight instruction and aircraft rental operations from its facilities at 501 Sky
Ranch Drive to the Leased Premises; and
WHEREAS, the Leased Premises are located in the Airport Commercial Subzone in which
Tennant's proposed flight instruction and aircraft rental operations are a permitted use; and
WHEREAS, upon relocation of Tennant's flight instruction and aircraft rental operations to
the Leased Premises, Tennant will no longer have need of Hangar 1813, and accordingly PPTC
would like to terminate the hangar lease between PPTC and the City to Hangar 1813; and
WHEREAS, because relocation of Tennant's flight instruction and aircraft rental operations
to the Leased Premises is not intended to result in an expansion of use, Tennant and the Landlord
have agreed to amend the Ground Lease revising the permitted uses under the Ground Lease to
exclude flight instruction and aircraft rental operations, so long as such operations are occurring
pursuant to this Lease, and Amendment Number Three (3) to the Ground Lease has been prepared
to delete flight instruction and aircraft rental from the permitted uses pursuant to the Ground Lease;
and
WHEREAS, the City Council has on September 12, 2016, adopted Resolution no. 2016 -
Approving a Commercial Lease Agreement between Mangon Aircraft, Inc., and the City to
Hangar 18D Located at the Petaluma Airport for Operation of a Flight School and Related Aircraft
Storage, Approving Amendment 1 to the Lease Agreement between Petaluma Pilot Training Center,
Inc., and the City to Hanger 18B to Terminate that Lease Agreement, and Approving Amendment 3
to the Ground Lease Agreement between Mangon Aircraft, Inc. and the City of Petaluma to Delete
Flight School Operations as a Permitted Use under that Lease;
WHEREAS, Landlord deems it advantageous to itself and the operation of the Airport to
lease certain portions of Airport land and facilities as further described herein, together with
certain privileges, right, uses and interest therein, as hereinafter set forth for the proposed use set
forth in the Application; and
WHEREAS, Tenant has indicated a willingness and ability to properly keep and
maintain the Leased Premises in accordance with standards established by Landlord, and to
comply otherwise with the terms and provisions of this Lease.
NOW, THEREFORE, in consideration of the promises and mutual covenants contained
in this Lease, the Parties hereby agree as follows:
LEASE OF PREMISES
Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, pursuant to
0
the covenants, terms and conditions set forth herein, the L e a s e d Premises described in
Exhibit A, also referred to as Hangar 18D, which is attached hereto and made a part of this
Lease.
2. LEASE TERM
The term of the Lease ("Lease Term") shall commence on , 2016
(the "Commencement Date") and shall continue for a three year period or until Tenant
elects to terminate the Lease by giving the Landlord thirty (30) day's written notice. Upon
the expiration of such Lease Term, Tenant agrees to yield and deliver to Landlord the
Leased Premises including any and all improvements and appurtenances erected or
added by Tenant pursuant to Section 4 of this Lease that have been accepted in writing by
the Landlord. Those improvements and appurtenances not accepted by the Landlord shall
be removed prior to yielding and delivering the Leased Premises. The Tenant shall have the
option of extending the term of this agreement for up to two additional years subject to
written request to and approval by the Landlord, such approval shall not be unreasonably
withheld.
3. RENT PAYMENTS
(a) From the Commencement Date, Tenant shall make rent payments ("Rent") to
Landlord in the amount of Two Thousand Four Hundred Twenty-eight Dollars
($2,428.00) per month based on 50 percent higher than standard rate for hangar for
aircraft storage ( i.e. $0.645/sf based on 3,764 sf . All Rent shall be due in advance,
by the first day of each and every month, duringthe Lease Tenn.
(b) At the commencement of each subsequent twelve (12) month period, beginning on
July 1, 2017 and continuing through June 30th of the applicable year, Rent shall be
increased an amount equal to the percentage increase in the Bureau of Labor
Statistics Cost of Living Index — San Francisco- Oakland, all items, for the
preceding year.
(c) In the event a Rent payment is not made within twenty (20) days of the due date,
there shall be a late fee of ten percent (10%) of the amount due and owing, which
late fee shall become part of that month's Rent. Furthermore, and in addition thereto,
any amount of Rent and/or late fees unpaid after thirty (30) days shall be subject to a
one and one-half percent (1-1/2%) interest charge on the unpaid amounts, which
interest shall likewise become part of the Rent.
(d) Tenant shall post a security deposit with Landlord in an amount equal to two months'
Rent at the time of execution of this Lease. In accordance with Section 4(c), Tenant
shall return the Leased Premises to Landlord at the expiration or termination of this
Lease in the same condition as at the beginning of the Lease term, normal wear and
tear excepted. In the event repairs are necessary to restore the Leased Premises to the
same condition as at the beginning of the Lease term, normal wear and tear excepted,
Landlord may deduct any and all repair costs, including, but not limited to, staff time
10
or administration costs, from the security deposit. The Landlord shall not be required
to consider the security deposit as payment of first and last month's rent, but Landlord
may at its sole option, deduct any unpaid Rent from the security deposit, either prior
to or after deduction of any amounts needed for repairs. Any security deposit balance
remaining after all repair costs and/or other deductions permitted under this Lease
shall be refunded to Tenant following the expiration or termination of this Lease. No
interest will be payable on the security deposit. If the security deposit balance is
insufficient to cover the cost of repairing the Leased Premises and/or Rent pursuant to
this section, Tenant shall promptly remit to Landlord the repair costs and/or Rent in
excess of the security deposit upon receipt of Landlord's invoice for such costs and/or
payments.
4. CONSTRUCTION OF IMPROVEMENTS AND ALTERATIONS
(a) Unless otherwise provided in the Lease, neither Tenant nor Landlord shall have
any responsibility for the construction of any improvements on or outside the
Leased Premises.
(b) Except as provided in Section 4(e), Tenant may not construct any improvements,
make any alterations, install any fixtures, or make any additions to the Leased
Premises without the prior written consent of Landlord, such consent shall not be
unreasonably withheld. In the event that such consent is given, Tenant shall be
responsible for obtaining all required permits, including but not limited to
building permits, prior to commencing work authorized by Landlord pursuant to this
Section 4, and shall be subject to Landlord's further reasonable conditions, including
without limitation, construction in conformity with all applicable laws, ordinances,
rules and regulations (including, if applicable, California prevailing wage
requirements contained in Section 1720 and following of the California Labor Code).
Tenant shall further be required to submit the design of any such authorized work to
Landlord for approval before commencing work.
(c) Upon completion of such work, any Landlord -authorized alterations, fixtures,
additions or other improvements pursuant to this Section 4 shall be removed at
Tenant's sole expense prior to termination of the Lease, or in Landlord's sole
discretion, the Landlord -authorized alterations, fixtures, additions or other
improvements may remain and become the property of Landlord.
(d) Landlord may require Tenant to remove, at Tenant's sole expense, any unauthorized
alterations, fixtures, additions or improvements and/or require Tenant to restore the
Leased Premises to its condition prior to the Lease Term, normal wear and tear
excepted. In the event that Tenant fails to comply with such requirement within
any reasonable period established by Landlord, Landlord may remove such
improvements, fixtures, additions or other alterations and deduct the cost thereof
from amounts, if any, otherwise payable to Tenant pursuant to this Lease. Tenant's
failure to comply with the requirements of this Section 4 shall constitute an Event
of Default.
11
(e) Subject to applicable building permits, Landlord hereby approves of Tenant
improving Leased Premises with temporary class rooms and storage. All the
foregoing improvements shall be undertaken at Tenant's sole expense. Permission
granted for such alterations does not constitute regulatory approval, and to the extent
that such improvements are subject to any regulatory approval or permit, such
alterations shall not commence until any and all applicable regulatory approvals
and/or permits have been granted. Tenant hereby agrees to submit an application for
building permits within thirty (30) days of the City executing this Lease. Tenant
further agrees that the foregoing alterations shall commence and be completed
withinl 80 days of receiving the required building permit(s) from the City.
5. UTILITIES
Tenant shall pay telephone service and all costs, if any, for the installation and
connection of such services.
6. USE OF PREMISES
The Leased Premises shall be used as follows:
(a) Tenant shall use and occupy the Leased Premises for flight instruction and aircraft rental
and storage ("Commercial Operations") together with all operations customarily
ancillary thereto, and for no other purposes.
i. Maintenance of the aircraft owned and rented by Licensee, or employees or
contractors of Licensee possessing an A & P license, and/or by FAA -certified
persons, or entities employed by or affiliated with Airport on-site contractors,
shops or facilities shall be a permitted use for purposes of flight instruction and
aircraft rental and storage, so long as all such maintenance (except for normal
pre-flight maintenance, including preventive maintenance as defined in Part 43
and elsewhere in the Federal aviation Regulations), occurs only within the hangar
on the Premises, or in other designated areas of the Airport where such
maintenance is permitted, or in other areas of the Airport with permission of the
airport manager. Licensee may not spray paint aircraft or other equipment on the
Premises or anywhere else at the Airport. Spray painting aircraft or other
equipment is not a permitted use under this Agreement; provided, however, that
minor paint touch up and application of corrosion safeguards that qualify as
preventive maintenance under applicable federal aviation regulations are
permitted uses under this Agreement. Licensee may not permit maintenance
contractors onto the Premises or other area of the airport for purposes of
performing maintenance on Licensee's rented or owned aircraft except in
accordance with this provision. Doing so is not a permitted use under this
Agreement.
(b) Tenant is prohibited from engaging in the following:
(i) The sale of food to or the consumption thereof by the public, provided,
12
however, that "snack foods," sandwiches and candy may be sold from
mechanical dispensers.
(ii) The sale or consumption of beverages, provided that coffee and soft drinks
may be sold from mechanical, dispensers as provided above. All sale or
consumption of alcoholic beverages is prohibited.
(iii) The use of or permission to use the Leased Premises in any manner
constituting waste or a public or private nuisance, or a disturbance to the
quiet enjoyment of the use of the surrounding Airport Property and/or
facilities.
(iv) The use, storage, transportation, release or disposal of any "Hazardous
Substance," as defined in California Health and Safety Code Sections 25501
(o), (p) and (q), on the Property, including without limitation on the Leased
Premises, by Tenant or any of Tenant's employees, agents, contractors, or
invitees. Notwithstanding, this condition does not apply to de minimis
amounts of oil, brake fluid, and other consumable materials necessary to be
on-site for routine addition to aircraft as a result of the pre-flight checklist
inspection. Premise shall not be used to warehouse these or other hazardous
substances.
(v) Any use that is not explicitly permitted in this Lease or any amendments
thereto.
(c) Landlord may treat any use of the Premises by Tenant that is not a permitted use as a
material breach of this Lease subject to termination for cause in accordance with
Section 18 of this Lease.
7. DUTY TO ACT CONCERNING CONTAMINATION
Notwithstanding Section 6(b) (iv), and in addition and not in lieu of said Section and of
Section 20 regarding indemnity, if the presence of any Hazardous Substance on the
Leased Premises caused or permitted by Tenant results in any contamination of the
Leased Premises and/or the Airport, Tenant shall promptly and at its sole expense take all
actions as are necessary to render the Leased Premises and the Airport in compliance
with all applicable environmental laws; provided, however, that Landlord's approval of
such actions shall first be obtained. Landlord's approval shall not be unreasonably
withheld so long as Tenant's proposed actions, in Landlord's sole reasonable judgment,
will not potentially have any material adverse long-term or short-term effect on the
Leased Premises and/or the Airport.
8. NONDISCRIMINATION
(a) Tenant for itself, its personal representatives, successors in interest and assigns as a
part of the consideration hereof, does hereby covenant and agree that in the
event the Leased Premises and any improvements thereon are constructed,
maintained or otherwise operated for a purpose for which a Department of
Transportation program or activity is extended or for another purpose involving
the provision of similar services or benefits, Tenant shall maintain and operate
13
such facilities and services in compliance with all other requirements imposed
pursuant to 49 Code of Federal Regulations Part 21, Nondiscrimination in Federally
Assisted Programs of the Department of Transportation, as the same may be
amended from time to time. Furthermore, Tenant shall use the Leased Premises in
compliance with all other requirements imposed by or pursuant to 49 Code of
Federal Regulations Part 21, Nondiscrimination in Federally Assisted Programs of
the Department of Transportation, as they may be amended from time to time.
(b) Tenant for itself, its personal representatives, successors in interest and assigns, as a
part of the consideration hereof, does hereby covenant and agree that there shall be
no discrimination against or segregation of any person or group of persons on
account of race color, religion, creed, sex, sexual orientation, disability, marital
status, familial status, ancestry or national origin in the use, occupancy, or
enjoyment of the Leased Premises or any part thereof, nor shall Tenant or any
person claiming under or through Tenant establish or permit any such practice or
practices of discrimination or segregation, including witll respect to the hiring,
promotion or employment of employees, consultants or contractors. Tenant shall
include such provisions in all leases, licenses, permits, contracts and other
instruments executed by Tenant with respect to the Leased Premises, and shall
diligently enforce the same.
9. OPERATION OF AVIATION BUSINESS BY TENANT
(a) This Lease shall be subordinate and subject to the Grant Agreement ("Grant
Agreement"), by and between the United States of America, Federal Aviation
Agency, and the City, and any airport wide policies, including but not limited to
the Lease Standards, and any subsequent amendments thereto.
(b) In the Airport Manager's discretion, the Airport Manager investigates any complaints
against Tenant by members of the public. If the Airport Manager finds that the
complaint is justified, the Airport Manager may direct Tenant to take such
reasonable action as necessary to rectify the complaint or prevent its recurrence. If
Tenant is aggrieved by any such directive, Tenant may appeal therefrom to the City's
Airport Commission, whose decision shall be appealable to the Petaluma City
Council, whose decision shall be final.
(c) Tenant agrees to observe and obey all rules and regulations promulgated and
enforced by Landlord or any other appropriate authority having jurisdiction over the
Airport during the Lease Term and at all times to use and operate the Leased
Premises in compliance with all applicable statutes, ordinances, laws, regulations
and other requirements, now or hereafter imposed, by the City, county, state, or
federal authorities. Landlord's rules and regulations are expressly made a part of
this Lease.
(d) Tenant agrees to furnish services on a reasonable and not unjustly discriminatory,
basis to all users of the Airport. Tenant further agrees to charge reasonable, and not
14
unjustly discriminatory, prices for each unit or service, provided that Tenant may
be allowed to make reasonable and non-discriminatory discounts, rebates, or other
similar types of price reductions to volume purchasers.
(e) Tenant shall at all times abide by the most current published version of the
Petaluma Municipal Airport Lease and Licensing Policies and Standards for
Services and Operations Minimum Standards. A version will be kept in the airport
office as well as available online. An updated version will be provided to the
tenant when any significant changes are made to this policy manual.
10. CONDITION OF PREMISES
Except as may be otherwise specified in this Lease, Tenant hereby accepts the Leased
Premises in the condition existing as of the earlier of Tenant's possession of the Leased
Premises or commencement of the Lease Term. By executing this Lease, Tenant
acknowledges that it has had the opportunity to inspect the Leased Premises and accepts
the Leased Premises in the AS IS condition.
11. MAINTENANCE AND REPAIRS
Landlord shall have no obligation to make repairs for tenant improvements to the Leased
Premises. Tenant shall, at its sole cost and expense, keep and maintain the interior of the
Leased Premises and appurtenances, and every part thereof, in good and sanitary order,
condition and repair, and hereby waives all right to make repairs at the expense of
Landlord as provided in Section 1942 et seq. of the California Civil Code or otherwise.
Any failure to maintain or make said repairs upon being notified by Landlord shall
constitute an Event of Default by Tenant. This provision shall not apply to the fire
suppression system or bi-fold hangar door, which shall remain the maintenance
responsibility of the Landlord.
12. SIGNS
Tenant shall be privileged to erect such signs and advertising media as comply with all
applicable laws, rules and regulations, including without limitation the requirements of the
Petaluma Municipal Code governing signs.
13. INSURANCE
Tenant agrees to procure and maintain at its cost and expense, and at all time during the
Lease Term, insurance in accordance with this Section 13 and Exhibit B which is attached
hereto and made a part of this Lease. Exhibit B sets forth the minimum kinds and
amounts of insurance that Tenant must maintain pursuant to this Lease, as well as
required endorsements and other requirements. Insurance required pursuant to this Section
13 and Exhibit B and in the most current published version of the Petaluma Municipal
Airport Lease and Licensing Policies and Standards for Services and Operations
Minimum Standards as may be modified at the sole discretion of City Manager. Any such
approved insurance modifications shall be by written amendment of this Lease in
15
accordance with Section 27. Failure to maintain the required insurance in effect for the
duration of this Lease shall constitute an Event of Default by Tenant.
16
14. TAXES
Tenant agrees to pay promptly all taxes and assessments related to items of property
including both real and personal property within the purview of this Lease, which may be
levied or assessed upon said properties leased or owned by Tenant, as Tenant's interest
may appear when the said taxes and assessments become due and payable during the
occupancy of the Leased Premises under any levy or assessment by county, City or other
legally authorized governmental authority. Without limiting the foregoing, Tenant is
advised that under California Revenue and Taxation Code Section 107.6, execution of
this Lease may create a possessory interest in Tenant subject to property taxation and
hereby acknowledges that in such event Tenant shall be solely responsible for the payment
of property taxes levied on any such interest.
15. RIGHT OF ENTRY
To the maximum extent permitted by law, Landlord shall have the right to enter the
Leased Premises at all reasonable times to inspect the Leased Premises to insure
compliance with this Lease and provide for Airport safety. Landlord shall endeavor to
provide Tenant with advance notice of inspections and to permit Tenant to be present
during inspections. Tenant shall provide Landlord with a key to all Tenant -furnished
locks securing the Leased Premises and/or Landlord shall retain a key to any Landlord -
provided locks. Landlord shall be entitled to treat Tenant's failure to comply with this
key requirement as an Event of Default by Tenant.
16. ASSIGNMENT OR SUBLETTING
(a) Tenant shall not assign or sublease Tenant's rights under this Lease or delegate
any of Tenant's obligations under this Lease without the prior written consent of
Landlord, which consent shall not be unreasonably withheld. Signed copies of all
such Landlord -approved subleases and/or agreements shall be furnished to
Landlord upon execution. Any purported assignment, sublease or delegation
without Landlord's prior written consent shall be void. In addition, Landlord shall be
entitled to treat any purported assignment, sublease or delegation by Tenant without
Landlord's prior written consent as an Event of Default by Tenant.
(b) Notwithstanding written consent of Landlord, no sublease or assignment shall
release Tenant from its obligations under this Lease, including without limitation
its obligation to pay Rent. Landlord's consent to one assignment or sublease shall
not be deemed consent to subsequent assignments or subleases. In the event of a
default by Tenant's assignee or sublessee, Landlord shall be entitled, at its option,
to proceed directly against Tenant without the necessity of exhausting any
remedies against such assignee or sublessee.
17
17. EVENTS OF DEFAULT
Each of the following shall constitute an "Event of Default":
(a) Tenant's failure to make any payment of Rent or other required payment under this
Lease when due.
(b) Tenant's vacation or abandonment of the Leased Premises before the end of the
Lease Term.
(c) The placement of all or substantially all of Tenant's assets in the hands of a
receiver or trustee where such receivership or trusteeship continues for a period of
thirty (30) calendar days or more, an assignment by Tenant for the benefit of
creditors, an adjudication of Tenant as bankrupt, Tenant's institution of any
proceedings under any state or federal bankruptcy act in which Tenant seeks to be
adjudicated bankrupt or to be discharged of debts, or the filing of any voluntary
proceeding against Tenant under bankruptcy laws where Tenant consents and
acquiesces thereto by pleading or by default.
(d) Tenant's failure, within thirty (30) calendar days written notice thereof, to correct
any breach or default of any of the terms, covenants, or conditions of this Lease.
18. TERMINATION
Landlord may act to terminate this Lease immediately for cause, without notice, in the
case of a failure by Tenant or anyone acting under or through Tenant to comply with the
terms of this Lease, where such failure presents a clear and immediate danger to the
public health, safety and welfare generally and/or to Airport operations and/or users.
Tenant specifically waives any right Tenant may have under applicable law or this Lease to
a three (3) -day or other period provided in Section 17, or otherwise, in which to cure any
breach of this Lease, should Landlord elect not to provide such period for cure of
Tenant's breach. Tenant may terminate with 30 -day written notice to Landlord and
removal of all improvements and appurtenances that Landlord has NOT agreed in writing
to accept.
19. REMEDIES
(a) In the event of any Event of Default by Tenant, and in addition to any and all
other rights and remedies of Landlord hereunder or provided by law, Landlord
shall have the right to terminate this Lease and/or Tenant's possessory rights
hereunder, to re-enter and keep possession of the Leased Premises, and except as
otherwise provided herein, to remove all persons and property therefrom and store
such property at Tenant's risk and for Tenant's account, and Tenant shall have no
further claim thereon or hereunder. Landlord's re-entry or taking of possession of
the Leased Premises shall not be construed as an election on Landlord's part to
terminate the Lease unless Landlord shall have given written notice of such
intention to Tenant. For so long as the Lease continues in effect, Landlord may
enforce all of Landlord's rights and remedies hereunder, including without
limitation the right to recover all Rent and other monetary payments as they
become due. Landlord shall have the right to commence an action against Tenant
for damages, injunction, and/or specific performance.
(b) No remedy specified in this Section 19 shall be considered exclusive of any
other remedy, but the same shall be cumulative and shall be in addition to every
other remedy provided hereunder or now or hereafter existing at law or in equity.
The rights given hereunder to receive, collect or sue for any Rent or other monetary
payments, or the enforce the terms of this Lease or prevent the breach thereof, or
the exercise of any other right or remedy by Landlord shall not in any way affect,
impair or toll Landlord's right to terminate Tenant's right of possession because
of any Event of Default or breach of any of the covenants, provisions or conditions
of this Lease beyond the applicable cure period.
(c) No waiver of Landlord or default by Tenant of any of the Terms, covenants, or
conditions hereof to be performed, kept, or observed by Tenant shall be construed
to be or act as waiver by Landlord of any subsequent default of any of the
terms, covenants, and conditions herein contained to be performed, kept, and
observed by Tenant.
20. INDEMNITY
To the maximum extent permitted by law, Tenant shall, at its own expense, indemnify,
defend with counsel acceptable to Landlord, (which acceptance will not be unreasonably
withheld), and hold harmless Landlord and its officers, officials, employees, agents and
volunteers ("Indemnitees") from and against any and all alleged liability, loss, damage,
claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory
proceedings, civil penalties and fines, expenses and costs (including, without limitation,
claims expenses, attorney's fees and costs and fees of litigation) (collectively, "Liability") of
every nature, whether actual, alleged or threatened, arising out of or in connection with the
Lease and/or use of the Leased Premises and/or failure to comply with any of the terms of
this Lease and/or termination of the Hangar Lease Agreement with PPTC, regardless of any
fault or alleged fault of the Indemnitees.
Tenant's obligation to indemnify, defend and hold harmless under this provision shall not be
excused because of Tenant's inability to evaluate Liability, or because Tenant evaluates
Liability and determines that Tenant is not or may not be liable. Tenant must respond within
30 calendar days to any tender for defense and indemnity by the City, unless the time for
responding has been extended by an authorized representative of Landlord in writing. In the
event that Landlord must file responsive documents in a matter tendered to Tenant prior to
Tenant's acceptance of tender, Tenant agrees to fully reimburse all costs, including but not
limited to attorney's fees and costs and fees of litigation, incurred by Landlord in filing such
responsive documents.
19
Notwithstanding the foregoing, to the extent this Lease is a "construction contract" as defined
by California Civil Code Section 2783, as may be amended from time to time, Consultant's
duty to indemnify under this provision shall not apply when to do so would be prohibited by
California Civil Code Section 2782, as may be amended from time to time.
21. EMINENT DOMAIN
It is expressly agreed by Landlord and Tenant that in the event eminent domain proceedings
are undertaken by any governmental agency, other than the City, affecting the whole of
the Airport, or any part thereof, which would adversely affect Tenant's interest
hereunder, Landlord and Tenant shall each have the right to represent its respective interest
and prosecute its respective claim, consistent with current eminent domain laws and
procedures. No provision of this Lease is intended to give Tenant greater rights or
remedies than Tenant would otherwise have under eminent domain law.
22. NATIONAL EMERGENCY
In the event that a national emergency or a declaration by federal, state or county
government causes a drastic curtailment of civilian aviation activities, Tenant shall be
entitled to submit a request for reduction in Rent. Tenant shall be entitled to present facts
and data to show that such a curtailment has taken place and that the curtailment has
seriously affected Tenant's utilization of the Leased Premises. If such facts and data
indicate that a reduction in Rent is warranted, then Landlord and Tenant shall agree to
negotiate a reduction in Rent during the period of curtailment.
23. NOTICES
Any and all notices to be given under this lease, or otherwise, may be served by enclosing
the same in a sealed envelope addressed to the party intended to receive the same, at its
address, and deposited in the United States Post Office as registered mail with postage
prepaid. When so given, such notice shall be effective from the date of the mailing of the
same. For the purpose thereof, unless otherwise provided in writing by the parties hereto,
the address of the Landlord and the proper party to receive any such notices on its behalf
is:
City of Petaluma
City Hall
Post Office Box 61
Petaluma, CA 94953
Attention: City Manager
and the address of the Tenant is:
Mangon Aircraft, Inc.
501 Sky Ranch Drive
Petaluma, CA 94954
Attention: Ron Mangon
24. SEVERABILITY
If any term or portion of this Lease is held to be invalid, illegal, or otherwise unenforceable
by a court of competent jurisdiction to be void or unenforceable, the remaining provisions
of this Lease shall continue in full force and effect.
25. ENTIRE AGREEMENT
This Lease, including any Exhibits thereto, constitutes the entire agreement between the
Parties and supersedes all prior agreements or understandings, oral or written, between
the Parties concerning the subject matter of this Lease.
26. AMENDMENT
This Lease may be amended only by a written instrument executed by authorized
representatives of each Party.
27. GOVERNING LAW AND VENUE
This Lease is and shall be enforced and interpreted under the State of California and the
City of Petaluma. Any action to enforce or interpret this Lease shall be filed in the
Superior Court of Sonoma County, California or, if cognizable therein, the Federal District
Court for the Northern District of California.
28. CONSTRUCTION
This Lease is the product of negotiation and compromise on the part of both Parties,
who agree that, notwithstanding California Civil Code Section 1654, any uncertainty in
this Lease shall not be construed against the drafter of the Lease.
29. NON -WAIVER
The failure to enforce any provision of this Lease or the waiver thereof in a particular
instance shall not be construed as a general waiver of any part of such provision, and
the provision shall remain in full force and effect.
30. HEADINGS
The headings used in this Lease are for convenience only and are not intended to affect
the interpretation or construction of any provisions herein.
31. SURVIVAL
All obligations arising prior to the expiration or termination of this Lease, including
without limitation Tenant's indemnity obligation pursuant to Section 20, and any provisions
of this Agreement allocating liability between Landlord and Tenant shall survive the
expiration or earlier termination of this Lease.
21
32. NO THIRD PARTY BENEFICIARIES
The Parties do not intend to create, and nothing in this Lease shall be construed to
create, any benefit or right in any third parry.
33. ATTORNEYS' FEES
In the event either Party hereto shall commence any legal action or proceeding by
reason of the alleged failure of the other to perform or keep any term, covenant or
condition of this Lease performed or kept, the Party prevailing in said action or
proceeding shall be entitled to recover, in addition to its costs of suit, reasonable
attorneys' fees as fixed by the court having jurisdiction.
34. TENANT'S AUTHORITY
If Tenant is a corporation, each individual executing this Lease on behalf of Tenant
represents and warrants that Tenant is qualified to do business in California and that he
or she is duly authorized to execute and deliver this Lease on behalf of Tenant and
shall deliver appropriate certification thereof if requested. If Tenant is other
than a corporation, each individual executing this Lease on behalf of Tenant represents and
warrants that he or she is duly authorized to execute this Lease on behalf of Tenant and
that this Lease is binding on Tenant. Tenant agrees that the execution of any written
consent hereunder, or any written modification or termination of this Lease, by any
authorized agent of Tenant, shall be binding on Tenant.
35. EFFECTIVE DATE
This Lease shall take effect on the effective date of appropriate action by the City Council
of the City of Petaluma approving this Lease in the manner and form required by the
City of Petaluma Charter, the Petaluma Municipal Code, and all applicable law or
regulatory requirements. Upon the Effective Date, the Commencement Date of this Lease
shall be.
IN WITNESS WHEREOF, the parties hereto have set their hand the day and
year first above written.
LANDLORD — CITY OF PETALUMA TENANT — MANGON AIRCRAFT,
INC.
By:
City Manager
in
22
IN WITNESS WHEREOF, the parties hereto have set their hand the day and
year first above written.
LANDLORD — CITY OF PETALUMA
By:
City Manager
ATTEST:
City Cleric
APPROVED:
City Attorney
/: ' ' �0
Airport Manager
APPROVED:
Department Director
Risk Manager
TENANT — MANGON AIRCRAFT,
INC.
23
EXHIBIT A TO AGREEMENT
(Attach legal description and diagram of the Leased Premises showing location of parking)
24
L, IT A TO A.GI2UIV ENT
(Attach legal description and diagram of the Leased Promises showing location of parking)
ExhibItA C,
25
EXHIBIT B
MINIMUM INSURANCE REQUIREMENTS
Lessee shall not take possession under this Agreement until Lessee shall have obtained
all insurance required under this Exhibit and such insurance shall have been approved
by the City's Risk Manager as to carrier and sufficiency; nor shall Lessee allow any
subcontractor, unless Lessee has obtained prior written City approval for subcontractor,
to commence work on or within the leased premises until all similar insurance required
of the Lessee and/or subcontractor shall have been so obtained and approved. All
requirements herein provided shall appear either in the body of the insurance policies
or as endorsements and shall specifically bind the insurance carrier.
Lessee shall procure and maintain for the duration of the Agreement all necessary
insurance against claims for injuries to persons or damages to property which may arise
from or in connection with the Agreement.
A. Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Aviation General Liability coverage:
a. Blanket contractual liability
b. Broad form property coverage
c. Personal injury
d. Hanger Keepers Liability (may be required later if operations change, or if
Aviation Insurance Industry standards change)
e. Completed Operations
f. Breach of Warranty Endorsement
2. Aircraft Liability
3. Automobile Liability.
4. Workers' Compensation insurance as required by the State of California and
Employer's Liability insurance.
5. Such other insurance coverages and limits as may be required by the City of
Petaluma.
g. Minimum Limits of Insurance
Lessee shall maintain limits no less than:
1. Aviation General Liability: $2,000,000;
26
2. Hanger Keepers Liability: $3,000,000 (if required).
3. Aircraft Liability: $1,000,000
4. Automobile Liability (if applicable): $1,000,000 per accident for bodily injury and
property damage.
5. Employer's Liability: Bodily Injury by Accident - $1,000,000 each accident.
Bodily Injury by Disease - $1,000,000 policy limit.
Bodily Injury by Disease - $1,000,000 each employee.
6. Such other insurance coverages and limits as maybe required by the City of
Petaluma.
C. Deductibles and Self -Insured Retentions
1. Any deductibles or self-insured retentions must be declared to and approved by the
City of Petaluma. At the option of the City of Petaluma, either: the insurer shall
reduce or eliminate such deductibles or self-insured retentions as respects the City
of Petaluma, its officers, officials, employees, and volunteers; or the Lessee shall
procure a bond guaranteeing payment of losses and related investigations, claims
administration and defense expenses.
2. Policies containing any self-insured retention (SIR) provision shall provide or be
endorsed to provide that the SIR maybe satisfied by either the named insured or
the City of Petaluma.
The City of Petaluma reserves the right to obtain a full certified copy of any
insurance policy and endorsement. Failure to exercise this right shall not constitute
a waiver of right to exercise later.
Other Insurance Provision Requirements
Additional Insured Requirements:
1. The required general liability and automobile policies are to contain, or be endorsed
to contain the following provisions:
a. The City of Petaluma, its officers, officials, employees, agents and volunteers
are to be covered as additional insureds as respects alleged: 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 of Petaluma, its officers, officials, employees, agents or
volunteers.
Any failure to comply with reporting or other provisions of the policies
including breaches of warranties shall not affect coverage provided to the
City of Petaluma, its officers, officials, employees, agents or volunteers.
27
c. The Lessor'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. Lessee shall furnish properly executed Certificates of Insurance from
insurance companies acceptable to the City of Petaluma and signed copies
of the specified endorsements for each policy prior to commencement of
work under this agreement. Such documentation shall clearly evidence all
coverages required above including specific evidence of separate
endorsements naming the City of Petaluma and shall provide that such
insurance shall not be materially changed, terminated or allowed to expire
except after 30 days prior written notice by certified mail, return receipt
requested, has been filed with the City Clerk. Lessee shall replace such
certificates for policies expiring prior to expiration under this agreement.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A: VII.
Completed Operations
Lessee shall maintain insurance as required by this contract to the fullest
amount allowed by law and shall maintain insurance for a minimum of five years
following the completion of this lease. In the event the Lessee fails to obtain or
maintain completed operations coverage as required by this agreement, the
City of Petaluma at its sole discretion may purchase the coverage required and
the cost will be paid by the Lessee.
Cross -Liability
The Liability policy shall include a cross -liability or severability of interest
endorsement.
Failure to Maintain Insurance Coverage
If Lessee, for any reason, fails to maintain insurance coverage, which is required
pursuant to this agreement, the same shall be deemed a material breach of
contract. The City of Petaluma, at its sole option, may terminate this agreement
and obtain damages from the Lessee resulting from said breach. Alternatively,
the City of Petaluma may purchase such required insurance coverage, and
without further notice to Lessee, the City of Petaluma may deduct from sums
W'?
due to Lessee any premium costs advanced by the City of Petaluma for such
insurance.
Primary and Non -Contributory
For any claims related to this project, the Lessor's insurance coverage shall be
primary insurance as respects the City of Petaluma, its officers, officials,
employees, agents and volunteers. Any insurance or self-insurance maintained
by the City of Petaluma, its officers, officials, employees, agents or volunteers
shall be excess of the Lessor's insurance and shall not contribute with it. The
additional insured coverage under the Lessor's policy shall be "primary and non-
contributory" and will not seek contribution from the City of Petaluma's
insurance or self-insurance and shall be at least as broad as CG 20 0104 13.
Subrogation Waiver
Lessee agrees to waive subrogation rights against City of Petaluma regardless of
the applicability of any insurance proceeds, and to require all Lessees, sub-
lessees or others involved in any way with the services to do likewise.
INSURANCE REMINDER
THE CITY OF PETALUMA'S INSURANCE DOES NOT COVER ANY
OF LESSEE'S PERSONAL PROPERTY, INCLUDING AIRCRAFT
29
Attachment 3
Exhibit B to Resolution
AMENDMENT NO. ONE TO HANGAR LEASE AGREEMENT
This Amendment No. One to Hangar Lease Agreement ("Amendment") is made and
entered into this day of , 201, by and between the CITY OF PETALUMA, a
municipal corporation ("City"), and PETALUMA PILOT TRAINING CENTER, INC., a
California corporation ("Lessee").
RECITALS
WHEREAS, Section 46 of the Charter of the City of Petaluma requires that
specified actions for the acquisition, sale, or lease of real property be taken by Ordinance;
and,
WHEREAS, Chapter 16.06 of the Petaluma Municipal Code governing Airport
Leases was enacted in satisfaction of Section 46 of the City Charter ordinance
requirement concerning leases to Petaluma Airport property; and
WHEREAS, Section 16.06.200 of Chapter 16.06 provides that the City Council
may approve ground leases and specialized leases by resolution and Section 16.06.300 of
Chapter 16.06 provides that the City Manager may execute on behalf of the City Airport
lease agreements approved by the City Council by resolution; and
WHEREAS, the City owns and operates the Petaluma Municipal Airport located
at 601 Sky Ranch Drive, Petaluma, CA. , which has been improved with various
facilities; and
WHEREAS, Lessee has entered into a ground lease agreement ("Ground Lease")
with the City to a portion of the City Airport located at 501 Sky Ranch Drive which the
Lessee has improved with facilities Lessee has operated to provide aircraft maintenance
and related services, aircraft parts sales and retail sales of aircraft, and flight school
services, and such Ground Lease has been amended from time to time in support of
Lessee's operations at the City Airport; and
WHEREAS, City -owned improvements at the City Airport include hangars
designated as Hangars 18B and 181); and
WHEREAS, on March 26, 2015, Petaluma Pilot Training Center, Inc., a
California Corporation and subsidiary of Lessee, ("PPTC") entered into an agreement
with the City pursuant to Petaluma Municipal Code Chapter 16.06 to lease Hangar 18B
for aircraft storage; and
WHEREAS, on January 12, 2015, Lessee submitted an application requesting
that it be allowed to offer flight instruction and aircraft rental at Hangar 18D and Lessee
currently desires to move its flight instruction and aircraft rental operations from its
facilities at 501 Sky Ranch Drive to Hangar 18D; and
30
WHEREAS, Hangar 18D is located in an area of the City Airport zoned
Aviation Commercial in which Lessee's proposed flight instruction and aircraft rental
operations are a permitted use; and
WHEREAS, upon relocation of Lessee's flight instruction and aircraft rental
operations to Hangar 18D, Lessee will no longer have need of Hangar 18B, and
accordingly PPTC would like to terminate the hangar lease between PPTC and the City
to Hangar 18B; and
WHEREAS, because relocation of Lessee's flight instruction and aircraft rental
operations to Hangar 18D is not intended to result in an expansion of use, Lessee and the
City have agreed to amend the Ground Lease revising the permitted uses under the
Ground Lease to exclude flight instruction and aircraft rental operations, so long as such
operations are occurring pursuant to the Hangar Lease to Hangar 18D, and Amendment
Number Three (3) to the Ground Lease has been prepared to delete flight instruction and
aircraft rental from the permitted uses pursuant to the Ground Lease; and
WHEREAS, the City Council has on March 5, 2018, adopted Resolution no.
2018- Approving a Commercial Lease Agreement between Mangon Aircraft, Inc.,
and the City to Hangar 18D Located at the Petaluma Airport for Operation of a Flight
School and Related Aircraft Storage, Approving Amendment 1 to the Lease Agreement
between Petaluma Pilot Training Center, Inc., and the City to Hanger 18B to Terminate
that Lease Agreement, and Approving Amendment 3 to the Ground Lease Agreement
between Mangon Aircraft, Inc. and the City of Petaluma to Delete Flight School
Operations as a Permitted Use under that Lease; and
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, City and Lessee enter into this
Amendment.
AGREEMENT
1. Termination: The Parties hereby agree to terminate the Lease immediately
upon execution of this Amendment by all parties. The Lessee's obligations as set forth in
section 14 of the Lease shall survive termination.
2. Waiver of Notice: The Parties hereby waive their right to any applicable
notice as set forth in section 6 of the Lease, or under any applicable law.
3. Release. Upon termination of this Agreement, Lessee may be or may
become eligible to receive compensation, reimbursement, assistance, including, but not
limited to, the fair market value of real and personal property, loss of goodwill, loss of
profits, actual and reasonable expenses for moving a business, loss of tangible real
property as a result of moving the business, expenses incurred in searching for
replacement site for the business, expenses to reestablish at the new site, "in -lieu
payments" and other such benefits (collectively, "Benefits") under the California
31
Relocation Assistance Act (Government Code, § 7260, et seq,), Title 25 of the California
Code of Regulations, Article I, § 19 of the California Constitution, the California
Eminent Domain Law (Civil Procedure Code, § 1230.010, et seq.) or other similar local,
state, or federal statute, ordinance, regulation, rule, or decisional law (collectively
"Compensatory Laws"). Lessee further acknowledges that it has received Rill and fair
compensation of all Benefits Lessee is or might be or might become entitled to recover
from City as a result of, or in any way related to, the Lease, the leased premises, the
execution of this Amendment, and the subsequent expiration or termination of the Lease.
Therefore, being fully informed of and understanding the acknowledgements made herein
and of Lessee's rights or potential rights to benefits under the Compensatory Laws,
Lessee hereby expressly and unconditionally waives, and releases City from, any and all
rights of Lessee to claim, demand, sue for, or receive any Benefits which Lessee is or
might be or might become entitled to recover from City as a result of, or in any way
related to the Lease or leased premises, the execution of the Amendment, and the
subsequent expiration of or termination of the Lease. The City acknowledges and agrees
that the release and waiver set forth in this paragraph is material consideration for City
entering into this Amendment, and into the Agreement with Mangon for Hangar 18B for
purposes of flight instruction and training of personnel in flight operations, and that but
for this release and waiver, City would not have entered into this Amendment or the
Agreement with Mangon for Hangar 18B. By releasing and forever discharging the
claims described herein, Lessee expressly waives any rights under California Civil Code
section 1542, which provides:
"A GENERAL RELEASE DOES NOT EXTEND
TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS
OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF
KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER
SETTLEMENT WITH THE DEBTOR."
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as
of the date first written above.
CITY OF PETALUMA TENANT — MANGON AIRCRAFT,
INC.
e 2tL��--D-
1
City Manager
ATTEST:
City Clerk
32
APPROVED AS TO FORM:
City Attorney
APPROVED:
Department Director
APPROVED:
Risk Manager
APPROVED:
Finance Director
33
Attachment 4
Exhibit C to Resolution
AMENDMENT NO. THREE TO LEASE AGREEMENT
PETALUMA MUNICIPAL AIRPORT
This Amendment No. Three to Lease Agreement ("Amendment") is made and entered
into this day of , 201_, by and between the CITY OF PETALUMA, a
municipal corporation ("Lessor" or "City"), and MANGON AIRCRAFT, INC., a
California corporation ("Lessee").
RECITALS
WHEREAS, Section 46 of the Charter of the City of Petaluma requires that
specified actions for the acquisition, sale, or lease of real property be taken by Ordinance;
and,
WHEREAS, Chapter 16.06 of the Petaluma Municipal Code governing Airport
Leases was enacted in satisfaction of Section 46 of the City Charter ordinance
requirement concerning leases to Petaluma Airport property; and
WHEREAS, Section 16.06.200 of Chapter 16.06 provides that the City Council
may approve ground leases and specialized leases by resolution and Section 16.06.300 of
Chapter 16.06 provides that the City Manager may execute on behalf of the City Airport
lease agreements approved by the City Council by resolution; and
WHEREAS, the City owns and operates the Petaluma Municipal Airport located
at 601 Sky Ranch Drive, Petaluma, CA, which has been improved with various facilities;
and
WHEREAS, Lessee has entered into a ground lease agreement ("Ground
Lease") with the City to a portion of the City Airport located at 501 Sky Ranch Drive
which the Lessee has improved with facilities Lessee has operated to provide aircraft
maintenance and related services, aircraft parts sales and retail sales of aircraft, and flight
school services, and such Ground Lease has been amended from time to time in support
of Lessee's operations at the City Airport; and
WHEREAS, City -owned improvements at the City Airport include hangars
designated as Hangars 18B and 181); and
WHEREAS, on March 26, 2015, Petaluma Pilot Training Center, Inc., a
California Corporation and subsidiary of Lessee, ("PPTC") entered into an agreement
with the City pursuant to Petaluma Municipal Code Chapter 16.06 to lease Hangar 18B
for aircraft storage; and
WHEREAS, on January 12, 2015, Lessee submitted an application requesting
that it be allowed to offer flight instruction and aircraft rental at Hangar 18D and Lessee
34
currently desires to move its flight instruction and aircraft rental operations from its
facilities at 501 Sky Ranch Drive to Hangar 181); and
WHEREAS, Hangar 18D is located in an area of the City Airport zoned
Aviation Commercial in which Lessee's proposed flight instruction and aircraft rental
operations are a permitted use; and
WHEREAS, upon relocation of Lessee's flight instruction and aircraft rental
operations to Hangar 18D, Lessee will no longer have need of Hangar 1813, and
accordingly PPTC would like to terminate the hangar lease between PPTC and the City
to Hangar 1813; and
WHEREAS, because relocation of Lessee's flight instruction and aircraft rental
operations to Hangar 18D is not intended to result in an expansion of use, Lessee and the
City have agreed to amend the Ground Lease revising the permitted uses under the
Ground Lease to exclude flight instruction and aircraft rental operations, so long as such
operations are occurring pursuant to the Hangar Lease to Hangar 18D, and Amendment
Number Three (3) to the Ground Lease has been prepared to delete flight instruction and
aircraft rental from the permitted uses pursuant to the Ground Lease; and
WHEREAS, the City Council has on March 5, 2018, adopted Resolution no.
2018- Approving a Commercial Lease Agreement between Mangon Aircraft, Inc.,
and the City to Hangar 18D Located at the Petaluma Airport for Operation of a Flight
School and Related Aircraft Storage, Approving Amendment 1 to the Lease Agreement
between Petaluma Pilot Training Center, Inc., and the City to Hanger 18B to Terminate
that Lease Agreement, and Approving Amendment 3 to the Ground Lease Agreement
between Mangon Aircraft, Inc. and the City of Petaluma to Delete Flight School
Operations as a Permitted Use under that Lease;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Lessor and Lessee enter into this Amendment.
AGREEMENT
1. This Amendment shall incorporate by reference all of the foregoing
recitals.
2. Capitalized terms used herein without definition shall have the meanings
ascribed to them in the Ground Lease.
3. Section 6(a) of the Ground Lease, as amended by Section 3 of
Amendment No. 2 is hereby further amended to delete "the training of personnel in such
operations; flight instruction and".
9
4. Section 4 of Amendment No. 2 shall be amended to delete the phrase "All
flight instruction" from the beginning of the section.
5. Flight instruction, aircraft rental in such operations shall be prohibited on
the Premises.
6. To the extent of a conflict between the terms and condition of the Ground
Lease, and its subsequent Amendments thereto, the terms and conditions of this
Amendment No. 3 shall prevail.
7. In the event that the Commercial Lease between Lessee and the City for
Hangar 18D, is terminated for any reason or expires, and the Ground Lease, and any
amendments thereto, is then in effect, then immediately and without further action of the
parties or approval of any governmental body, and without the need for any further
ordinance, this Amendment 3 to the Ground Lease shall automatically be rescinded,
terminate and cease to be in effect and the provisions of the Ground Lease and any
amendment thereto further amended or deleted pursuant to this Amendment 3 shall be
revived and be in full force and effect as if they had never been amended or deleted
pursuant to this Amendment 3. The parties understand and agree that the purpose of this
provision is to restore flight school and aircraft rental operations as permitted uses under
the Ground Lease in the event that the Commercial Lease between Lessee and the City
for the use of Hangar 18D terminates or expires and the Ground Lease continues. To the
extent reasonably requested by either party, each party agrees to execute any document
necessary to give full effect to the purposes and intent of this provision without
modification.
8. All other provisions of the Ground Lease shall remain unchanged and in
full force and effect.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Amendment as
of the date first written above.
CITY OF PETALUMA TENANT — MANGON AIRCRAFT,
INC.
City Manager
ATTEST:
City Clerk
36
APPROVED:
Department Director
APPROVED:
Risk Manager
APPROVED:
Finance Director
37
r
POST OFFICE Box 61
PETALUIWA, CA 94953-0061
Attachment 5
David Glass
Mayor
April 2, 2015
Chris Albertson
Teresa Barrett
Mike Healy
RE- Expanded Justification for Class I Exemption
Gabe Kearney
Dave King
Commercial Lease Agreement Airport Hangar 18B
� P �
Kathy Miller
601 Sky Ranch Road
Cozmcilmembers
Petaluma, CA
The proposed Commercial Lease Agreement between the Petaluma Municipal
Airport and Petaluma Pilot Training Center. (project) meets the conditions for the
Existing Facilities exemption 'pursuant to Section 15301 of the State California
Environmental Quality Act (CEQA) Guidelines, Specifically, the project qualifies
for a CEQA exemption for the following reasons:
® The proposed project is consistent with the General Plan land use
designation and complies with the established zoning regulations;
6 The project is a permitted use at the Petaluma Municipal Airport;
® Leasing of and minor alternations to the Petaluma Municipal Airport is
Public Works & utilities
identified as an example of appropriate CEQA exemptions in the
City's Environmental Review Guidelines;
City Engineers
II English Street
® The site is void of natural veg etation and there is no habitat that would
Petaluma, CA 94952
support endangered, rare or threatened species;
Phone (707) 778-4303
Fax (707) 776-3602
The project would not result in an significant effects relating to
° l� 1 y g
E -Mail:
traffic, noise, air quality, or water quality;
publicivorksC
i There are no exceptions that would preclude application of the
cipetaltutta.cazts
exemption; and
6 The project is adequately served by all required utilities and public
Parks & Building
services,
Maintenance
840 Hopper St. Ext.
Petaluma, CA 94952
Mangon Aircraft Inc. currently stores and rents aircrafts as well as operates the
Phone (707) 778-4303
Petaluma Pilot Training Center (PPTC) at the City's Municipal Airport located at
.Fax (707) 778-4437
501 Sky Ranch Road, Mangon maintains a fleet of small aircrafts including
Cessna 150M, 172M Skyhawk and 172SM, which are generally described as four
Transportation Services
seat, .single engine fixed wing crafts, The PPTC typically operates the flight
555 1v McDowell Blvd
school between the hours of 8 am and 5 pm seven days per week.
Petahrma, CA 94954
Phone (707) 778-4427
Fax (707) 776-3799
In order for students to qualify for their pilot license; there is a requirement to log
a specified number of hours in the air including a portion during the evening
hours. For aviation purposes, the evening hours are generally considered to be
Utilities & Field Operations
anytime from 1, hour before sunset until 1 hour after sunrise. As such, PPTC
202 McDowell Blvd
Petaluma, CA 94954
periodically schedules evening flights as part of the training process.
Phone (707) 778-4546
Fax (707) 778-4508
E -Mail: publicivoiksCa
ripe a unta.ca.us
Class I Exemption Justification for Petaluma Pilot Training Center Lease Agreement
There are up to four flight school instructors that are currently employed by PPTC and
qualified to conduct classes and flight training. Two are full time employees and two are part
time employees.
The existing flight school prepares students for pilot certification. The final test prior to
receiving certification requires a flight accompanied by an authorized representative of the
Federal Aviation Administration (FAA). The current activities of the Petaluma Pilot Training
Center average 30 flights per week and provide training to 25 active students.
Mangon also operates an Aircraft Service & Repair shop at the Petaluma Airport. The
proposed project would not change any of the existing lease specifications that govern
activities associated with the Service and Repair shop. The Repair component of Mangon's
business will be retained and continue to operate in the same manner as the existing
condition.
The subject project will result in the relocation of the Petaluma Pilot Training Center from
501 Sky Ranch Road to Hangar 18B. Hanger 18B will also be used for the storage and rental
of aircrafts in accordance with the specification of the lease for fixed base operations.
Airport Location
Petaluma Municipal Airport is located at the northeastern most edge of the city, near the City
limit boundary. A majority of the land north, east and west of the airport is agricultural, golf
course (Rooster Run), or is dedicated parks and open space land. Residential development
abuts the southern portion of the airport property.
a) The project is consistent with the applicable General Plan Designation, applicable
policies and applicable zoning designation and regulations.
The project site, at the Petaluma Municipal Airport, is designated Public/Semi Public per the
2025 General Plan Land Use and is zoned Planned Community District (PCD). The Petaluma
Municipal Airport Planned Community District establishes the zoning regulations with the
purpose of promoting safe and efficient air travel services while minimizing impacts on
adjacent land uses. The PCD zoning establishes five subzones including operations, aircraft
storage, commercial aviation, commercial, and approach protection.
The proposed relocation for the Petaluma Pilot Training Center is to Hanger IBB, which is
within the Commercial Aviation Subzone. This subzone specifically allows for aviation
schools (Item 5 of the principal uses permitted, Exhibit A Ordinance No. 1608).
As a currently operating flight school relocating from one area of the airport to another, the
proposed project will not substantially change the use of the site, Rather, the project would
relocate an existing and established use from one airport hangar to another,
The project will retain the existing aesthetic of the established hanger, but will introduce
signage noting the presence of the flight school. The PCD zoning regulations include
provisions for signage in accordance with the design guidelines.
39
Class I Exemption Justification for Petaluma Pilot Training Center Lease Agreement
As proposed, the project is consistent with the overall intent of the General Plan and zoning
requirements.
b) The project site has no value as habitat for endangered, rare or threatened species.
The Municipal Airport is currently developed and consists of runways, driveways, parking
areas, a series of hangers, aircraft fueling and storage facilities including repair, maintenance
and rentals, as well as ancillary commercial components such as the Two-Niner Diner. Land
within the Airport area is dominated by pavement, parking stalls, sidewalks, and a limited
amount of ornamental landscaping. There are no natural communities or other such habitat
that would support endangered, rare or threatened species at the location of Hangar 18B or in
the immediate project vicinity. Thus, the project location has no habitat value.
c) Approval of the project would not result in any significant effects relating to traffic,
noise, air quality, or water quality.
The following discussion described the project as it related to traffic, noise, air quality and
water quality concerns:
Traffic
The existing and established activities associated with the currently operating Petaluma Pilot
Training Center will remain. The project will result in the relocation of the training school
from one existing hanger to another. There are no proposed or anticipated increases to
student enrollment or demand. The current traffic volumes generated by the PPTC include
trips to the airport by students and flight instructors. The project will not increase traffic or
otherwise alter traffic and circulation on Petaluma roadways. At the airport, internal
circulation will also remain as the existing condition, with the exception that vehicles headed
to the PPTC will now be directed to Hangar 18B rather than 501 Sky Ranch Road.
The access driveway and parking area at Hangar 18B are fully improved with paving, curb,
gutter and striping. There are no proposed changes to the drive aisles or parking area
proximate to Hangar 18B nor are any warranted.
The relocation of the PPTC will have a negligible affect on traffic and circulation. As the
number of flight instructors will remain the same, and there is no increase in capacity there
will not be an increase in the number of vehicles at the Airport. As such, any increase in
traffic generation is expected to be negligible and there would be no significant impacts
related to traffic.
Noise
The existing PPTC will continue to offer pilot certification for various Federal Aviation
Administration ratings at the Petaluma Municipal Airport. Noise at the Airport is
predominantly generated by aircraft operations including take off and landing, as well as by
vehicles, doors, horns and car alarms. The relocation of the flight school from one hanger to
another will not generate noise that exceeds the noise level already present on the site. There
are no changes in the proposed lease that would introduce substantial new noise sources
relative to the existing condition.
FI d
Class I Exemption Justification for Petaluma Pilot Training Center Lease Agreement
Air Quality
There are no elements of the project that would generate air quality emissions beyond what
are currently generated by the existing PPTC. The new lease would authorize activities to
occur from Hangar 18B, but would not substantially increase the number of flights, alter the
operating hours, or otherwise introduce a use that would result in air quality emissions. There
are no aspects of the project that would increase vehicles trips, create additional demand fro
energy or water supplies or otherwise require an expansion of energy expenditure. Any
increase in the electricity use at Hanger 18B would be negligible. Therefore, the net project
emissions would result in a negligible change relative to the existing condition.
Water quality .
The project does not propose any changes to the existing drainage such that flows would be
redirected and water quality impacted. The amount of impervious surfaces at the Petaluma
Airport and proximate to Hangar 18B would remain consistent with the existing condition.
Thus, the project would have no effect on water quality.
d) The project has been reviewed by City Staff, and can be adequately served by all required
utilities and public services.
The project is located in an urbanized area within the Urban Growth Boundary and is well
served by existing utilities and public services. Relative to the existing condition there will be
a negligible change in the demand for water, wastewater, stormdrain facilities and police and
fire protection as a result of the proposed project. No new utilities or services will be needed
due to the project, as sufficient capacities are currently available. Thus, there would be no
impacts due to utilities and public services resulting from the project.
Review of Exceptions to Exemption
It has been further considered whether or not the project is subject to any of the exceptions
outlined in CEQA Guidelines Section 15300.2, An exemption would be prohibited pursuant
to Section 15300.2 if any of the following circumstances were found to exist:
a) certain classes of projects (Classes 3, 4, 5, b and 1.1) due to location where the project
may impact an environmental resource or hazardous or critical concern.
As a Class 1 exemption, Section 15300,2(a) does not apply to the existing facilities
exemption,
b) when the cumulative impact of successive projects of the same type in the same place,
over time, is significant.
There is no indication that successive projects allowing for new or additional flight
schools will be, introduced at the Airport in the future. The Petaluma Municipal Airport
has sufficient capacity to support expanded use without resulting in a significant impact,
1n any event, new activities and uses at the Airport require authorization from the City via
execution and. adherence to a lease agreement,
41
4
Class I Exemption Justification for Petaluma Pilot Training Center Lease Agreement
In the event that demand increases for flight training such that successive projects are
proposed, each project would be reviewed on a case-by-case basis to assess the potential
for cumulative impacts. The provisions set forth in fixture lease agreement would provide
a mechanism to ensure that cumulative impacts of successive projects are avoided. Thus,
the project does not introduce a potential for cumulative impacts.
c) where there is a reasonable possibility that the activity will have a significant effect on
the environment due to unusual circumstances.
There is no expectation that the project would have a significant effect on the
environment resulting from unusual circumstances. The proposed project involves the
negligible change of relocating an existing use from one hangar to another existing
hanger at the Petaluma Municipal Airport. As a fully improved and developed area, there
are no known unusual circumstances such as geotechnical, -hydrological, archeological or
biological conditions that would be affected. Therefore, no significant effects generated
by the presence of unusual circumstances would result from the proposed project.
d) where the project may result in damage to scenic resources, including but not limited to,
trees, historic buildings, rock outcroppings, or similar resources, within a highway
officially designated as a state scenic highway.
Section. 15300.2(d) is not applicable; the project is not located in the vicinity of a State
Designated Highway, nor is it located in the vicinity of a locally recognized or designated
Scenic Corridor,
e) where the project is located on a state designated hazardous waste site.
Section 15300.2 is not applicable as the project site is not located on a State designated
hazardous waste site.
fi where the project may cause a substantial adverse change in the significance of a
historical resource.
Section 15300.2 is not applicable as there are no historical resources that would be
affected by the proposed lease agreement.
42