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HomeMy WebLinkAboutStaff Report 5.B 09/10/2018• • MW DATE: September 10, 2018 TO: Honorable Mayor and Members of the City Council through City Manager FROM: Eric Danly, City Attorney SUBJECT: Introduction (First Reading) of an Ordinance Approving an Airport Hangar Ground Lease with Golden State Lumber RECOMMENDATION It is recommended that the City Council Introduce an Ordinance Approving an Airport Hangar Ground Lease with Golden State Lumber. BACKGROUND In 2007, Golden State Lumber purchased a private hangar at the Petaluma Airport previously owned by Peter Pfendler, and, through an Assignment and Assumption agreement, assumed the former Pfendler ground lease at the Petaluma Municipal Airport. The Airport ground lease that Golden State Lumber has assumed is set to expire October 31, 2018 and includes an option for a lease extension that if exercised would extend the lease another ten years through October 31, 2028. In advance of buying anew aircraft to be stored in the hangar space Golden State Lumber occupies at the Petaluma Airport, Golden State Lumber requested a further extension of its ground lease beyond the current option period which would extend the lease for an additional 20 years through 2048. In view of lease term limits contained in the City's charter, and the now somewhat antiquated lease agreement with Golden State Lumber (the Pfendler lease took effect in October, 1988), staff proposed that instead of further extending the assumed lease it would be preferable for the parties to enter a new lease modeled on the use agreements currently used at the Petaluma Airport. Golden State Lumber counsel agreed with staff's recommended approach. DISCUSSION Golden State Lumber has since 2007 occupied two parcels at the Petaluma Municipal Airport that were previously occupied by Peter Pfendler and have had continuous tenants since 1988. While preparing to purchase a new aircraft, Golden State Lumber requested a ground lease term of sufficient duration to maintain a stable base of operations for the new aircraft. The lease term sought corresponds with the estimated useful lifetime of the new aircraft: 30 years. Accordingly, the attached proposed new ground lease would take effect November 1, 2018 and expire 30 years later, on October 31, 2048. Having a long-term tenant in a large space at the Petaluma Airport helps provide financial stability for Airport operations through lease payments and fuel purchases. Taking into account the different types of use agreements at the airport, including tie -down licenses, licenses of City - owned hangars, ground leases for private hangars, and ground leases for Fixed Base Operators, staff have concluded that the lease payments that would apply to Golden State Lumber under the proposed lease are appropriate and consistent with current Airport use charges. The attached proposed lease requires Council approval by ordinance in accordance with Article VII, Section 46 of the City's charter, and satisfies the lease term limits contained in Article XI, Section 75 of the City charter. FINANCIAL IMPACTS Golden State Lumber will pay rent for the ground space it occupies in the amount of $4,801.06 per year, paid in six-month installments. Consistent with the terms of the 10 -year option period that will be subsumed by the proposed new lease, for the first ten years of the new lease term, the lease payment amount will be adjusted every five years for inflation. Commencing year eleven of the new lease, inflation adjustments will occur annually. Airport revenues will benefit from Golden State Lumber fuel purchases at the airport. The amount of fuel purchased will depend upon aircraft usage. Staff understand that Golden State Lumber intends to arrange that purchase of the new aircraft will have Petaluma as situs for purpose of taxes on the purchase, and that the City will receive one-time tax revenue in excess of $900,000 as a result. ATTACHMENTS 1. Ordinance Approving an Airport Hangar Ground Lease with Golden State Lumber with attached ground lease Page 2 ATTACHMENT 1 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA APPROVING AN AIRPORT HANGAR GROUND LEASE WITH GOLDEN STATE LUMBER WHEREAS, the City of Petaluma owns that certain real property known as the Petaluma Municipal Airport ("Airport"); and WHEREAS, the City deems it advantageous to Airport operations to lease to Golden State Lumber ("Lessee") certain Airport land, together with certain rights and interest therein; and WHEREAS, Section 46 of Article VII of the Petaluma City Charter provides, in pertinent part, that no City action providing for the sale or lease of real property having a value of $3,000 or more may be taken except by ordinance or pursuant to a general law of the State; and WHEREAS, Section 75 of Article XI of the Petaluma Charter provides in pertinent part that leases of City property must reserve to the City adequate compensation for the privilege conferred and that lease terms may not exceed an initial period of fifty years with the option to renew for an additional twenty-five years; and WHEREAS, Lessee has used and desires to continue using certain land at the Airport for the construction and/or operation of a Lessee -owned hangar thereon for the storage of aircraft owned or leased by Lessee and used for aviation -related purposes; and WHEREAS, Lessee has been assigned an Airport ground lease on two Airport parcels in accordance with a lease agreement dated October 24, 1988, originally between the City and Peter Pfendler as lessee ("Original Lease"), which Original Lease will by its terms expire on October 31, 2018; and WHEREAS, Lessee assumed its obligations under the Original Lease on August 7, 2007, pursuant to an Assignment and Assumption of Lease agreement; and WHEREAS, the Original Lease grants Lessee an option to extend the Original Lease for an additional 10 -year period, which option, if exercised, would extend the Original Lease until October 31, 2028; and Page 3 WHEREAS, City and Lessee have agreed that it is preferable to substitute for the Original Lease a modern Airport ground lease agreement consistent with City's current Airport use agreements to preserve Lessee's rights under the Original Lease, extend the term of the Lessee's use of Airport Parcels A and B to accommodate the useful life of a new aircraft Lessee is acquiring, and to obtain benefits for both Lessee and City under a modern lease document; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS: Section 1. Approval of Lease. In accordance with Section 46 of Article VII of the Petaluma City Charter and other applicable law, the lease agreement between the City of Petaluma and Golden State Lumber that is attached to and is hereby made a part of this ordinance as Exhibit A is hereby approved, and the City Manager is hereby authorized and directed to execute on behalf of the City a lease agreement with Golden State Lumber that is substantially in accordance with that attached as Exhibit A and is approved as such by the City Attorney. Section 2. Severability. If any section, subsection, sentence, clause, phrase or word 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 or otherwise invalid. Section 3. Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 4. Posting/Publishing of Notice. 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 other applicable law. Page 4 INTRODUCED, and ordered posted/published, this 10"' day of September, 2018. ADOPTED this Ayes: Noes: Abstain: Absent: ATTEST: day of Claire Cooper, City Clerk 2018, by the following vote: David Glass, Mayor APPROVED AS TO FORM: Eric Danly, City Attorney Page 5 GROUND LEASE AGREEMENT WITH GOLDEN STATE LUMBER FOR PRIVATE HANGAR IMPROVEMENTS ON PETALUMA AIRPORT PARCELS A AND B This Ground Lease Agreement ("Agreement") is made and entered into this day of , 20 , by and between the City of Petaluma, hereinafter referred to as "City" and Golden State Lumber, California Corporation No. C1282231, 855 Lakeville St., Ste 200, Petaluma, CA, 94952, hereinafter referred to as "Lessee." For purposes of this Agreement City and Lessee are collectively referred to as the Parties. WHEREAS, City owns that certain real property known as the Petaluma Municipal Airport ("Airport"); and WHEREAS, City deems it advantageous to Airport operations to lease to Lessee certain Airport land described herein, together with certain rights and interest therein; and WHEREAS, Section 46 of Article VII of the Petaluma City Charter provides, in pertinent part, that no City action providing for the sale or lease of real property having a value of $3,000 or more may be taken except by ordinance or pursuant to a general law of the State; and WHEREAS, Lessee has used and desires to continue using certain land at the Airport for the construction and/or operation of a Lessee -owned hangar thereon for the storage of aircraft owned or leased by Lessee and. used for aviation -related purposes, as further described herein; and WHEREAS, Lessee has been assigned an Airport ground lease on - two Airport parcels in accordance with a lease agreement dated October 24, 1988, originally between the City and Peter Pfendler as lessee ("Original Lease"), which Original Lease will by its terms expire on October 31, 2018, and is attached as Exhibit E and incorporated herein by this reference; and WHEREAS, Lessee assumed its obligations under the Original Lease on August 7, 2007, pursuant to an Assignment and Assumption of Lease agreement, attached as Exhibit F and incorporated herein by this reference; and WHEREAS, the Original Lease grants Lessee an option to extend the Original Lease for an additional 10 -year period, which option, if exercised, would extend the Original Lease until October 31, 2028; and WHEREAS, City and Lessee have agreed that it is preferable, to substitute for the Original Lease a modern Airport ground lease agreement consistent with City's current Airport use agreements to preserve Lessee's rights under the Original Lease, extend the term of the Lessee's use of 1 Golden State Lumber Ground Lease 8-29-18 Draft Page 6 Airport Parcels A and B to accommodate the useful life of a new aircraft Lessee is acquiring, and to obtain benefits for both Lessee and City under a modern lease document; NOW, THEREFORE, in consideration of the promises and mutual covenants contained in this Agreement, the parties hereby agree as follows: 1. Lessee Information. The Lessee shall fully complete Exhibit A, "Petaluma Airport Lessee Fact Sheet," a copy of which is attached hereto, describing Lessee's aircraft and hangar facilities. The completed Exhibit A shall be a part of this Agreement and is incorporated herein by this reference. 2. Grant of Premises Lease. City leases to Lessee and . Lessee accepts from City, in accordance with the terms of this Agreement, the right to use Airport Parcels A and B, as further described in Exhibit D which is attached to and incorporated herein by this reference, (the "Premises"), solely for the permitted uses as defined in provision 6 of this Agreement. The parties may mutually agree to relocate Lessee's aircraft described in Exhibit A and related items and activities to another ground space at the Airport ("the Substituted Premises") by completing and executing revised Exhibits A and D and a Substitution of Premises form prepared by City. The revised Exhibits A and D and Substitution of Premises form, when executed by City and Lessee, shall be attached to this Agreement and shall constitute an amendment to this Agreement. 3. Lease Term. The term of this Agreement shall be thirty (30) years, commencing on November 1, 2018 and expiring on October 31, 2048 ("Term"), unless the Parties by mutual agreement modify the Agreement Term by amendment in accordance with provision 21 of this Agreement 4. Lease Payments. a. Lease payments shall be the sum specified in Exhibit C, which is attached to and incorporated herein by this reference, per year, payable in advance, in semi- annual installments covering each six (6) month period of the Term ("Lease Payments"). The City shall send billing for such semi-annual payment thirty (30) days prior to the due date. Lease Payments shall be made payable to the City of Petaluma at Post Office Box 61, Petaluma, California 94953. Lease Payments shall be deemed delinquent if not received by City within twenty (20) days after the due date. Upon delinquency, the Lease Payment due will automatically increase by an additional 10 percent as liquidated damages for each six (6) month period or portion of a six (6) month period that the Lease Payment is delinquent. If the full amount of delinquent Lease Payments, including all liquidated damages, are not brought current within thirty (30) days of the day Lease Payments under the Agreement first became delinquent, the City may, in addition to other remedies available to the City, on notice to the Lessee: take immediate 2 Golden State Lumber Ground Lease 8-29-18 Draft .._.._Page 7_ action for collection, refer and/or assign the delinquent Lease Payments to a collection agency, commence a small claims or other action to recover delinquent Lease Payments, terminate this Agreement for cause in accordance with provision 8(b), below, and/or deduct unpaid Lease Payments from the Security Deposit in accordance with provision 6 below. Lessee agrees that City's costs incurred to recover delinquent Lease Payments, including, but not limited to, reasonable attorneys' fees and the cost of staff time, will be added to the Lease Payment then due and recoverable by City as liquidated damages. b. During the first ten (10) year period of the Agreement Term, Lease Payments due under this Agreement shall be adjusted on November 30 in the first year of each five-year period by adjusting the Lease Payment applicable to the immediately preceding five years by the increase in .the Bureau of Labor Statistics Cost of Living Index — San Francisco — Oakland all items for the preceding five years. The resulting Lease Payment shall apply to the immediately following five (5) year period of the Agreement Term. Accordingly, the Lease Payment amount specified in Exhibit C will be adjusted on November 30, 2018 using the Lease Payment amount due for the prior five (5) years under the Original Lease, adjusted by the Cost of Living Index in accordance with this provision for that same period—The Lease Payment due under this Agreement will be adjusted again in accordance with this provision effective November 30, 2023 and again effective November 30, 2028. After the initial ten-year period of the Agreement Term, commencing on October 1, 2029, Lease Payments due under the Agreement shall be adjusted in accordance with this provision on an annual basis. Commencing on or before November 1, 2018, notice shall be provided to Lessee regarding adjusted Lease Payments due at least thirty (30) days in advance of the new Lease Payment effective date and in accordance with applicable law. 5. Security Deposit. Lessee shall post a security deposit with City in an amount equal to 1/2 of the semi-annual Lease Payments due October 1, 2018 at the time of execution of this Agreement. Lessee shall return the Premises to City at the expiration or termination of this Agreement in the same condition as at the beginning of the Agreement term, normal wear and tear excepted. In the event repairs are necessary to restore the Premises to the same condition as at the beginning of the Agreement term, normal wear and tear excepted, City may deduct any and all repair costs, including, but not limited to, staff time or administration costs, from the security deposit. The City shall not be required to consider the security deposit as payment of first and last month's lease payment, but City may at its sole option, deduct any unpaid Lease Payments 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 Agreement shall be refunded to Lessee following the expiration or termination of this Agreement. No interest' will be payable on the security deposit. If the security deposit balance is insufficient to cover the cost of repairing the Premises and/or unpaid Lease 3 Golden State Lumber Ground Lease 8-29-18 Draft Page -S- Payments pursuant to this provision, Lessee shall promptly remit to the City the repair costs and/or Lease Payments in excess of the security deposit upon receipt of the City's invoice for such costs and/or payments. 6. Permitted Use. Permitted use of the Premises pursuant to this Agreement is limited to the operation, use and maintenance of the Lessee -owned private hangar improvements on the Premises at the Airport and use, storage and maintenance of Lessee's aircraft described in Exhibit A, and related supply and equipment storage. Aircraft in which Lessee has an ownership interest, as documented in FAA Aircraft Registration forms, or aircraft leased by Lessee, may be listed in Exhibit A and stored in the Premises pursuant to this Agreement. If Lessee leases the airplane listed in Exhibit A, Lessee shall provide lease documentation evidencing Lessee's right to use and store said aircraft. No other use by Lessee, including, but not limited to, use of the Premises by the general public or persons other than the Lessee and Lessee's invitees, except in conjunction with Lessee's permitted use, or storage of aircraft other than the aircraft described in Exhibit A may be conducted on the Premises. The City may treat any use of the Premises by Lessee that is not a permitted use as a material breach of this Agreement subject to termination for cause in accordance with provision 8(b). Lessee may display for -sale signs on the Premises for the sale of Lessee's aircraft stored in the Premises in accordance with this Agreement, and such display shall be a permitted use, so long as such display is in accordance with all applicable laws, rules, and regulations, including, but not limited to, the requirements of the Petaluma Municipal Code and the Petaluma Implementing Zoning Ordinance governing signs. 7. Minimum Standards. Lessee shall at all times comply with the most current version of the Petaluma Municipal Airport Lease and Licensing Policies and Standards for Services and Operations Minimum Standards ("Minimum Standards"), as amended from time to time. The most current version maybe found online at http //cityofpetaluma net/t)ubworks/pdt/airport-minimum-staiidards.pdf or in the Airport Office. The Minimum Standards as amended from to time are hereby incorporated in this Agreement by reference. 8. Termination. This Agreement may be terminated as follows: a. For convenience by Lessee by giving the City (60) days' written notice of such termination by certified or registered mail or by personal delivery, in accordance with applicable law. Any such notices should be sent to City at City Hall, City of Petaluma, Office of the City Manager, Post Office Box 61, Petaluma, California 94953. In the event of termination for convenience by Lessee, City will refund to Lessee the pro -rata share of any Lease Payment amounts already received for periods after the termination effective date, provided that 30 days' written notice is given as required by this subparagraph, and any remaining security deposit balance, less any applicable deductions pursuant to this Agreement. 4 Golden State Lumber Ground Lease 8-29-I8 Draft Page 9 b. For cause by either party on not less than seven (7) days' written notice to the other party for any failure to comply with any of the terms of this Agreement, in accordance with applicable law. The parry giving notice of termination for cause shall allow the other party a reasonable period, specified in the notice, in which to cure that party's failure to comply with this Agreement. In, the event of termination for cause, subject to applicable law, Lessee will remain responsible for Lease Payments due or accrued prior to the termination date, and shall be entitled to return of any security deposit balance remaining following deductions pursuant to this Agreement. C. Beginning on the thirty-first (31st) day following notice of termination for convenience under paragraph (a), or beginning on the second (2nd) day following notice of termination for cause under paragraph (b), Lessee shall cease using the Premises to store aircraft or any materials in the hangar, and/or entering the Premises except for the purpose of removing Lessee's aircraft and other property not fixtures to the hangar improvements or the Premises. Lessee shall, at its sole expense, restore and/or repair any damage or modification to the Premises caused by Lessee's construction, maintenance and/or other operations on the Premises. This obligation of Lessee shall survive expiration or termination of this Agreement. 9. Assiannient, Sublicensing or Delegation. Lessee may not assign or sublease Lessee's rights under this Agreement or delegate any of Lessee's obligations under this Agreement without the prior written. consent of City, and any purported assignment, sublease, or delegation without prior written City consent will be void. City may treat any such purported assignment, sublease or delegation as a material breach of this Agreement subject to termination for cause. 10. City's Right of First Refusal. Lessee shall not sell .or agree to sell the hangar improvements on the Premises without first offering them to City in accordance with this Section 10. The word "sell" shall include any transfer, conveyance, assignment, lease, hypothecation, or pledge of all or any portion of the hangar improvements, except for an intra -family conveyance or transfer by gift, bequest or inheritance. In the event of such intra -family conveyance or transfer, the right of first refusal granted to City pursuant to this Agreement and all other terms of the Agreement shall remain in effect against the hangar title-holder so long as the hangar improvements are located on the Premises or elsewhere at the Airport. a. Any sale of Lessee's hangar improvements on the Premises shall be pursuant to a written offer ("Offer") from a Qualified Purchaser, defined as an independent third party that: (i) is not directly or indirectly owned or controlled by or under common control with Lessee, (ii) intends to purchase the hangar improvements for its own account, and (iii) agrees to enter into the City's then -current form of Ground Lease. The Offer must set forth the terms and conditions for such proposed purchase, including at minimum the name of the proposed purchaser, 5 Golden State Lumber Ground Lease 8-29-18 Draft Page 10 the amount of the purchase price, an all-cash method of purchase, and a proposed closing date that shall be not less than thirty (30) days after Lessee's acceptance of the Offer. b. If Lessee receives an Offer that Lessee is willing to accept, Lessee shall promptly give City a copy of the Offer and certify in writing to the City Manager that the proposed purchaser is a Qualified Purchaser ("Offer Notice"). G. City shall have forty-five (45) days from City's receipt of the Offer Notice ("Acceptance Period") in which to notify Lessee of its election to purchase the hangar under the terms and conditions specified in the Offer ("Acceptance Notice"). d. On delivery of the Acceptance Notice, Lessee and City shall complete the sale and purchase of the hangar on the terms and conditions set in the Offer. e. If the City does not give Lessee an Acceptance Notice within the time specified, Lessee may sell the hangar at any time within sixty (60) days after the end of the Acceptance Period on the terms and conditions set forth in the Offer. As a condition of any sale, Lessee shall require the purchaser to enter into the City's then -current form of Ground Lease on or before the date of purchase of the hangar. City may treat Purchaser's failure to enter into the City's then -current form of Ground Lease on or before the date of purchase of the hangar as a material breach of this Agreement subject to termination for cause in accordance with provision 8(b) , and City shall be entitled to pursue all available remedies in law or at equity. f. Any sale or proposed sale on terms or conditions other than as stated in the Offer, or after the expiration of the sixty (60) day period provided for in Section 10(e), shall constitute a new sale subject to all of the terms of the City's right of first refusal pursuant to this Agreement. g. The right of first refusal set forth in this Section 10 shall not be assigned by City without Lessee's prior written consent, and any assignment without such consent shall be void. 11. No Warranties. The City expressly disclaims any warranty of fitness of the Premises for the use intended by Lessee and expressly disclaims any warranty of merchantability. Lessee acknowledges that Lessee has had ample opportunity to, inspect the Premises, and has performed such inspection as Lessee deems necessary, such that Lessee accepts the Premises in an as -is condition, with all faults, and without any warranty whatsoever, express or implied. Lessee relies entirely on its own judgment, inspection and evaluation, and not on any inspection, test or representation by the City whether oral, written, or implied, as to the condition of the Premises in any respect, including, but not limited to, their merchantability and/or their fitness for any use. 12. Alteration of Premises. Lessee may not make any alterations, install any fixtures, or make any additions or improvements to the Premises without the prior written consent of the City. Lessee shall be responsible for obtaining all required permits, including but not 6 Golden State Lumber Ground Lease 8-29-18 Draft Page 11 limited to building permits, prior to commencing work on any alterations authorized by the City pursuant to this provision. City -authorized alterations, fixtures, additions or improvements pursuant to this provision may not be altered or removed without the City's prior written consent. The City may require the Lessee to remove, at Lessee's sole expense, any unauthorized alterations, fixtures, additions or improvements, and/or require the Lessee to restore the Premises to its condition prior to the commencement of the Lease term and the unauthorized alterations, normal wear and tear excepted. If the City directs the Lessee to remove unauthorized alterations and/or to restore the Premises pursuant to this provision, and Lessee fails to do so within any reasonable period established by the City for such removal and/or restoration, the City may remove such alterations and/or restore the Premises or have such alterations removed and the Premises restored. The City may treat any failure of Lessee to comply with the requirements of this provision as a material breach of this Agreement subject to termination for cause in accordance with provision 8(b). 13. Aircraft Maintenance. Maintenance of the aircraft described in Exhibit A by Lessee, or employees or contractors of Lessee 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 provision 6 of this Agreement, 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. Lessee 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. Lessee may not permit maintenance contractors onto the Premises or other areas of the Airport for purposes of performing maintenance on Lessee's aircraft described in Exhibit A or other aircraft except in accordance with this provision. Doing so is not a permitted use under this Agreement. 14. Right of Err - To the maximum extent provided by law, City shall have the right to enter the Premises, including the hangar improvements on the Premises, at all reasonable times, to inspect the Premises, including the hangar on the Premises, to ensure compliance' with this Agreement and provide for Airport safety. City shall provide the Lessee advance notice of inspections and permit Lessee to be present during inspections. Lessee shall provide City with a key to all Lessee -furnished locks securing the hangar improvements on the Premises. City may treat Lessee's use of a lock to secure the hangar for which the City does not have a key as a material breach of this Agreement subject to termination for cause. In addition to other remedies of the City for use of a lock for which 7 Golden State Lumber Ground Lease 8-29-18 Draft Page 12 the City does not have a key, the City may remove or have such locks removed without notice to the Lessee and at Lessee's expense. The City may deduct the cost of lock removal not paid by the Lessee from the security deposit or other funds payable to the Lessee pursuant to this Agreement. 15. Permanent Removal of Aircraft. Lessee shall notify the airport manager in writing within five (5) days of permanent removal of Lessee's aircraft from the Premises. Upon receipt of such notice, in the absence of notice of Lessee's intent to add a new aircraft to Exhibit A, and store such aircraft in the hangar on the Premises, City may terminate this Agreement in accordance with provision 8(b). Lessee may not store any aircraft not listed in Exhibit A on the Premises. Prior to storing a new aircraft on the Premises, Lessee shall notify the airport manager in writing, provide registration and confirmation of Lessee's ownership or lease interest in the aircraft, and evidence of all insurance required under this Agreement for such aircraft.'Upon approval by the City of such required information, Exhibit A shall be modified to reflect that Lessee is authorized to store such aircraft on the Premises. 16. Possession of Aircraft. Lessee covenants and agrees that Lessee will maintain possession and control of the aircraft specified in Exhibit A in accordance with the terms of this Agreement while such aircraft is located at the Airport. The parties agree that City is not responsible for, and that the City, on behalf of its officials, officers, employees, agents and volunteers disclaims, all liability related to the parking, possession or control of Lessee's aircraft. The aircraft specified in Exhibit A shall be the sole and exclusive responsibility of the Lessee at all times. 17. Government Regulations. Lessee shall comply with all statutes, ordinances and regulations of any federal, state, county and municipal authorities presently in effect, or which hereafter may become effective, pertaining to the use of the Premises, and/or the Airport pursuant to this Agreement. City may treat Lessee's failure to comply with such statutes, ordinances and regulations as a material breach of this Agreement subject to termination for cause in accordance with provision 8(b). 18. Indemnification. To the maximum extent permitted by law, Lessee shall, at its own expense, indemnify, defend with counsel acceptable to the City, (which acceptance will not be unreasonably withheld), and hold harmless City and its officers, officials, employees, agents and volunteers ("Indemnitees") from and against any and all 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 Lessee's use of the Premises, Lessee's use of Lessees aircraft, and Lessee's use of the Airport, including, but not limited to, Lessee's failure to comply with 8 Golden State Lumber Ground Lease 8-29-18 Draft Page 13 any of the terms of this Agreement, regardless of any fault or alleged fault of the Indemnitees. Lessee's obligation to indemnify, defend and hold harmless under this provision shall not be excused because of Lessee's inability to evaluate Liability, or because Lessee evaluates Liability and determines that Lessee is not or may not be liable. Lessee must respond within 30 calendar days to any tender of defense and indemnity by the City, unless the time for responding has been extended by an authorized representative of the City in writing. In the event that the City must file responsive documents in a matter tendered to Lessee prior to Lessee's acceptance of tender, Lessee agrees to fully reimburse all costs, including but not limited to attorneys' fees and costs and fees of litigation, incurred by the City in filing such responsive documents. This section shall survive termination of the Agreement for as long as permitted by law. Lessee waives any and all rights to express or implied indemnity against the Indemnitees concerning any Liability of Lessee arising out of or in connection with Lessee's use of the Leased Premises and Lessee's failure to comply with any of the terms of this Lease Agreement. 19. Insurance. Lessee shall procure and maintain in effect for the duration of this Agreement insurance in accordance with this provision and Exhibit B which is attached to and made a part of this Agreement. Exhibit B sets forth the minimum kinds and amounts of insurance that Lessee must maintain pursuant to this Agreement, as well as required endorsements and other requirements. Insurance required pursuant to this provision and Exhibit B may be modified in the sole discretion of the City's Risk Manager or City Manager. Any such approved insurance modifications will be by written amendment to this Agreement in accordance with provision 21. City may treat failure of the Lessee to maintain in effect for the duration of this, Agreement insurance in accordance with this provision and Exhibit B as a material breach of this Agreement subject to termination for cause in accordance with provision 8(b). 20. Statutory Notice of Possessory Interest Tax. Lessee is advised that under California Revenue and Taxation Code Section 107.6, execution of this Agreement may create a possessory interest in Lessee subject to property taxation. Lessee hereby agrees that if such possessory interest is created and is subject to property taxation, Lessee shall be solely responsible for the payment of said property taxes levied on any such interest. 21. Amendment. This Agreement may be amended only by a written instrument executed by authorized representatives of each party. 22. Construction. The parties agree that, notwithstanding Civil Code section 1654, any uncertainty in the Agreement shall not be construed against the drafter of the Agreement. 9 Golden State Lumber Ground Lease 8-29-18 Draft Page 14 23. Governing Law, Venue. This Agreement shall be enforced and interpreted under the laws of the State of California and the City of Petaluma. Any action arising from or brought in connection with this Agreement shall be venued in a court of competent jurisdiction in the County of Sonoma, State of California. 24. Non -Waiver. The failure to enforce any provision of this Agreement 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. 25. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 26. No Third Party Beneficiaries. The parties do not intend to create, and nothing in this Agreement shall be construed to create any benefit or right in any third party. 27. Headings. The headings used in this Agreement are for convenience only and are not intended to affect the interpretation or construction of any provisions herein. 28. Survival. All obligations arising prior to the expiration or termination of this Agreement and all provisions of this Agreement allocating liability between City and Lessee shall survive the expiration or termination of this Agreement. 29. Entire Agreement. This Agreement, including .all exhibits, 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 Agreement. [Signatures on next page] 10 Golden State Lumber Ground Lease 8-29-18 Draft Page 15 IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written. CITY City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney file name: LESSEE Signature Printed Name Address City State Zip 11 Golden State Lumber Ground Lease 8-29-18 Draft Page 16 Please rill in missing information below or revise incorrect information for our records. EXHIBIT A TO PRIVATE HANGAR ON CITY PROPERTY GROUND LEASE AGREEMENT PETALUMA AIRPORT LESSEE FACT SHEET NAME ADDRESS CITY & ZIP PHONE & EMAIL DRIVERS LICENSE NUMBER Golden State Lumber, Inc. 855 Lakeville Street, Suite 200 Petaluma, CA 94952 707-206-4041; cscerri(a�goldenstatelumber.com N/A LEGAL OWNER OF AIRPLANE Golden State Lumber, Inc. ADDRESS 855 Lakeville Street, Suite 200 CITY & ZIP MAKE MODEL YEAR COLOR REGISTRATION NUMBER INSURANCE COMPANY PHONE # E-MAIL HANGAR TYPE HANGAR MODEL HANGAR DIMENSIONS Petaluma, CA 94952 Cessna Citation 4 2018 White with red and gray stripes N246GS Steel Frame with Concrete N/A HANGAR SQUARE FOOTAGE 15,256 12 Golden State Lumber Ground Lease 8-29-18 Draft Page 17 EXHIBIT B TO PRIVATE. HANGAR ON CITY PROPERTY GROUND LICENSE AGREEMENT MINIMUM INSURANCE REQUIREMENTS FOR AIRPORT LESSEE 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 contractor, unless Lessee has obtained prior written City approval for contractor, to commence work on or within the leased premises until all insurance required of the Lessee and/or contractor 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. The City reserves the right to adjust minimum insurance limits as needed to protect the City, the Airport, and users of the Airport, in accordance with sections 20 and 22 of this Agreement A. Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Commercial General Liability (Insurance Services Office) coverage: i. Personal injury; ii. Contractual liability 2. Automobile Liability (Insurance Services Office form — any auto) 3. Aircraft Liability Insurance Coverage. 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. B. Minimum Limits of Insurance Lessee shall maintain limits no less than: 1. Commercial 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 liability is used, either the general aggregate limit shall apply separately to this Agreement or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage. 3. Aircraft Liability: $22,000,000 per occurrence for bodily injury, personal injury and property damage. Lessee shall procure and maintain for the duration of this Agreement, insurance against claims for injuries to persons or damage to property, which may arise from, or in connection with Lessee's operation and use of the leased premises. The cost of such insurance shall be borne by Lessee. 4. Workers' Compensation as required by the State of California 13 Golden State Lumber Ground Lease 8-29-18 Draft Page 18 i. Employer's Liability: Bodily Injury by Accident - $1,000,000 each accident ii. Bodily Injury by Disease - $1,000,000 policy limit iii. Bodily Injury by Disease - $1,000,000 each employee 5. Such other insurance coverages and limits as may be required by the City of Petaluma as stated in the Petaluma Municipal Airport Lease and Licensing Policies and Standards for Services and Operations Minimum Standards. C. Deductibles and Self -Insured Retentions 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, claim administration and defense expenses. D. Other Insurance Provisions The required commercial general liability, aircraft liability and other applicable insurance policies are to contain, or be endorsed to contain the following provisions: 1. The City of Petaluma, its officers, officials, employees, agents and volunteers are to be covered as additional insureds 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. The coverage shall contain no special limitations on the scope of protection afforded to the City of Petaluma and its officers, officials, employees, agents or volunteers. 2. For any claims related to this Agreement, the Lessee'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, and/or 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 of Petaluma, and 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 (3 0) days' prior written notice by mail has been given to the City of Petaluma. 6. Waiver of Subrogation: Consultant agrees to waive subrogation rights for commercial general liability, automobile liability and worker's compensation against City regardless of the applicability of any insurance proceeds, and to require all contractors, subcontractors or others involved in any way with the Services to do likewise: 7. It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum insurance coverage requirement and/or limits shall be available to the additional insured. 14 Golden State Lumber Ground Lease 8-29-18 Draft Page 19 Furthermore, the requirement for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement, or (2) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the named insured; whichever is greater. The limits of insurance required in this Agreement may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance shall contain or be endorsed to contain a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City of Petaluma before the City of Petaluma's own insurance or self-insurance shall be called upon to protect it as a named insured. E. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A -VII. F. Verification of Coverage Lessee shall fiunish the City of Petaluma with original endorsements effecting coverage required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City of Petaluma before the Agreement commences. The Lessee's insurer may provide complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by the City of Petaluma. INSURANCE REMINDER THE CITY OF PETALUMA'S INSURANCE DOES NOT COVER ANY OF LESSEE'S PERSONAL PROPERTY, INCLUDING AIRCRAFT 15 Golden State Lumber Ground Lease 8-29-18 Draft Page 20 EXHIBIT C TO PRIVATE HANGAR ON CITY PROPERTY GROUND LEASE AGREEMENT GROUND LOCATION AND LEASE PAYMENT LESSEE NAME[S] SPACE NUMBER RENTAL FEE $ .3147 per square foot for 15,256 square feet totaling $4,801.06 per year, paid in semi-annual installments. 16 Golden State Lumber Ground Lease 8-29-18 Draft Page 21 EXHIBIT D PAFaCFJ. •A" All that portion of land lying within Parcel 08" as shown upon the map entitled Exhibit "A" Airport Property Kap► on file with the City of Petaluma. Further described as follows: 8egi nni ng a t a 1/2" 1 ron pi pe tagged RCE 11226 located at the most north westerly corner of Parcel "A" as shown upon said map. Thence N 35' 20055" E 437.88 feet to a point on the westerly boundary of Parcel '910 as shown upon said crap. lbence S 54' 33100" E 1.100.04 feet to an open 3/4" iron pipe sat flush with the pavement marking the west end of a southerly 170.00 foot offset to the center line of the runway. lhence from said point S 35' 2700011 M 164.00 feet to a point thence N 54' 330000 M 29.87 f"t to an open 3/48 iron pipe marking the northeast corner of the lease parcel herein to be described. Said pofnt to be known as the true point of beginning. Thence frog said point of beginning N 54. 33000" M 155.00 foot to an open 3/48 irm pipe., Thence S 35' 27000" N 90.00 feet to an open 3/4" iron pipe. Thence S 54' 33#00" E 155.00 feet to an open 3/4" iron pfpe. Thence N 35', 2700011 E 90.00 feet to the true point of beginning. Said parcel contains 0.32 aceta more or less. Page 22 EXHIBIT D PARCEL °9" All that portion of land lying within Parcel "B" as shown upon the map entitl ed Exh ibi t "A" At rport Property Nap, on f it e w ith the Ci ty of Petal uea, Further described as fall ars r Beginning at an open 3/4" iron pipe marking the most southwesterly corner of Handler lease, Thence from said corner S 3S' 27100" M 10.00 feet to a point, Thence S 54" 33100" E 155,00 feet to a point, Thence N 350, 21100" E 10.00 feet to an open 3/4" iron pipe marking the most southeasterly corner of Pfendl er lease. Thence N $41 33100" M along Pf endl er lease Most southerly boundary 155.00 feet to the point of.beginning. Said parcel contains 0.03 acres more or less. Page 23 t.' EXHIBIT E ` FIRST ADDENDUM TO LEASE AGREEMENT AT TIDE PETALUMA ZVIC7NxCIPAL AIRPORT This Agreement is made and entered into as of The ? W' day of _, 200/ by and between the CITY OF PETALUMA, a political subdivisioin of the State of California, hereinafter referred to as "Lessor," and PETER G. PFENDLER, hereinafter referred to as "Lessee," and forms a FIRST ADDENDUM to that, certain "LEASE AGREEMENT AT THE PETALUMA MUNICIPAL AIRPORT" between the parties, dated October 24, 1988 (hereinafter "the Lease"). ;WHEREAS, Lessee has expended certain monies on the installation of infrastructure improvements at the Petaluma Municipal Airport to serve Lessee's airplane hangar; -and yPMEAS, prior to installation of such improvements, Lessor agreed that Lessee could seek reimbursement for the cost of the improvements when other hangar parcels were developed; and 'WHEREAS, Lessee and Lessor have agreed that it is now appropriate for Lessor to compensate Lessee for the installation of. such improvements, and have also agreed as to how such compensation should be structured. NOW, THEREFORE, as full compensation for Lessee's installation of infrastructure improvements at the Petaluma Municipal Airport, and as. full satisfaction of any obligation by Lessor to reimburse Lessee for such improvements, the parties agree as follows: 1. Paragraph 1 of the Lease, entitled "TERM," is amended to grant Lessee, at the expiration of his lease term on the last day of October, 2018, an option to renew this lease for ten (10) years. 2. Paragraph 2 of the Lease, entitled "RENTAL," is amended as follows: The base ground rental, as established in paragraph 2, shall be reduced by a sum, not to exceed Seven Hundred Dollars ($700.00) for each of sixteen (16) consecutive semi-annual installments of rent, and by the sum of twenty-eight and 12/100 dollars ($28.12) for the Page 24 seventeenth consecutive semi-annual installment of, rent, commencing with the first such semi-annual installment due following the date of this FIRST ADDENDUM, until the amount of $11,228.12 is reimbursed in full to Lessee. 3. Except as amended herein, all provisions of the Lease shall remain unmodified and in full force and effect. IN WITNESS WHEREOF, the parties hereto have set their hand the date and year first set forth above. LESSOR LESSEE City Manager Pe er G. P£endler ATTEST: City Clerk 1''j f O APPROVED TO FORM: n r\�. City Attorney APPROVED: Iz Department Director APPROVED: *879823 Page 25 POL• IQY NO.: NAB3040665 ATTACHED TO CERTIFICATE # 1 CERTIFICATE OF INSURANCE THIS IS TO CERTIFY TO: ,City of Petaluma, its officers, officials, employees, agents and volunteers Petaluma Airport 601 Sky Ranch Drive Petaluma, CA 94954 THAT THE FOLLOWING POLICY OF INSURANCE HAS BEEN ISSUED TO: Peter G. Pfendier 765 Baywood Drive, Suite 147 Petaluma, CA 94954 POLICY NUMBER: NAB3040656 POLICY PERIOD: From March 28, 2007 To March 28, 2008 INSURANCE COMPANY: XL Specialty Insurance Company DESCRIPTION OF COVERAGES AND LIMITS OF LIABILITY: Please refer to attached schedule which is incorporated as a part.hereof. The above Certificate Holder is included as an Additional Insured but only to the extent of,liability imposed upon the Additional Insured solely as the result of an act or omission of the Named Insured or its employees in connection with the Named Insured's Operations. Subject to Date Change Recognition Endorsement Data included in this Certificate valid as of July 18, 2007. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policy listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of insurance may be issued or may pertain, the insurance,afforded by the policy described herein is subject to all the terms, exclusions and conditions of such policies. Should the described policy be cancelled before the expiration date hereof, the issuing company will endeavor to give 30 days (10 days for non-payment) notice to the certificate holder named herein. However, failure to mail such notice shall not impose any obligation nor any liability of any kind upon the Company, its representatives or agents. By: W. Brown & Associates Insurance Services Certificate # 1 Date of Issue: July 18, 2007 Certificate No.: 1 Page 1 of 2 Page 26 POLICY NO.: NAB3040655 ATTACHED TO CERTIFICATE # 1 SCHEDULE OF AIRCRAFT DESCRIPTION OF AIRCRAFT No. IFAA Cert # ISerial # Year/Make/Model Insured Value 1 IN75OPP 501-0686 11984 Cessna Citation 501 SP $1,750,000 PHYSICAL DAMAGE COVERAGE No. Deductibles Physical Damage Coverage Not in Motion In Motion 1 $10,000 n/a G. All Risk Basis Not In Motion AIRCRAFT LIABILITY COVERAGES No. Single Limit Bodily Injury & Property Damage Passenger Liability Passenger Uabilitv Limited To Each Person I Each Occurrence 1 $1,000,000 Excluded XXXX XXXX MEDICAL EXPENSES No. Including Crew Each Person Each Occurrence 1 No XXXX XXXX Certificate # 1 Page 2 of 2 Page 27 EXHIBIT E LEASE AGREEMENT AT THE PETALUMA MUNICIPAL AIRPORT THIS LEASE AGREEMENT, made and entered Into as of the a4 6 day of 19A, by and between the CITY OF PETALUNAp a political subdivision of the State of California, hereinafter referred to an "Lessor" and PETER G. PFENDLER, hereinafter referred to as "Lessaall j WITNESSETH WHEREAS, the Lessor herein is a political subdivision duly, organit4.and operating under the, laws of the State of Callforniipand 'owns all • .thsti certain real property located at the Petaluma Munl6pallliportp 'Petalumar'­ California, a city airport, hereinafter referred to -as. lkir por t.; an WHEREAS, Lessor deeds It advantageous to Itself 811 .1 the operation Airport to lease unto Lessee a certain parcel of. linediicribea;- herein together with certain privileges, right, uses# and Interest• theMn.";,; hereinafter set forth; and WHEREAS, Lesese proposes to lease a ground -area consisting'' of' those portions of the Petaluma Municipal Airport; known as B", both of which are more particularly described in' Exhibit 'A and ,. Exhibit; . B hereto, which are Incorporated,,., herein by reference. Said pr7er!I shall be used for a private aircraft storage hangar: and WHEREAS, Lessee has indicated a willingness and ability to properly keep and maintain and improve the leased ground in accordance with standards established by Lessor; and WHEREAS, Lessee desires to obtain and avail Itself of the privileges, right, uses and Interest therein and herein; I If the image of this dommnt appears less sharp than this notice, it is Page 28 Page 29 � 'F` . t p I •q ' ?s �• `••4�. '-'- NOW, THEREFORE, IT IS AGREED AS FOLLOWS: t?s s. 1, TERM Lessor, for and in consideration of all the covenants, conditions, and k agreements to be set forth hereinafter to be kept and perforated by ; Leasee and by Lessor, does hereby lease :unto Lessee, on -all 'the !f conditions, covenants, terma and agreements hereinafter' set forth, those certain premises t described in Exhibits *A" and "B" hereto fora :.: term of thirty (30) years.. commencing on the first dap of November, tti�v+ %,; ` •s 1988, and ending on the last day of October, 2018. 2. RENTAL , ; Lessee shall *pay to Lessor a rental -in accordance with the following :,." tt: ' _,: } �- provisions:. "'• .'}�'-:`4'- 4. ���i i (a)" The base ground rental, for the premises,; as deecribeiI:in Exhibits `":; • "� F,: 'N' i "A" and."B" hereto sliall be at an 'annual rate•'044.1�`P,er agliare..; • a.. r. foot. Said. reniil shall be payable foz the'•firit"five Yet• of''thir :"•'' :• ': lease: Thereafter;''the rental rate %for',:tiie ifi've,,ieriiairiagffide3 year. "perWs of :the' lease,' term 'shall be computed'': at:.,the'_ r••: +t,>i„ t. • r•` commencement of oacla sucC. cessive • five,.`ye, `ar perldd at': the %,rarital' � ' rate applicable for the immediately.preciding five years -::adjusted j. 'Statiatiei Coaf Livlfi for an increase in the"'Bureau:'of• Labor.t o - s': "?•{ •' Index -San Francisco'- Oaktand'all items. oi* said presiding five years. In no event shall the 'rental rate• for• any, five year period • is ;;7';•: ,;; . be less than the applicable*: rental rate for, the'preceiiing•five',yeir ;;;;•; , ..i t periodunless •adjustments in' the .rental ' r;te ~are ..mads is , ' it{�����:••. -accordance with the provisions of this Ag=sanies:. Furthermore. •''''U the rental rate herein shall not exceed other rates for 'comparable leases at the Petaluma Municipal Airport for comparable purposes. ' `• (b) The base ground rent shall be payable, in advance, in semi-annual Installments for the'next six (6) month period of the e 2 t i . If the maga of this d=mnt appears i less shathan this notice, it is rp t, due to the quality of the original. NONE Page 29 +If the image of this document appears less -sharp than this ratite, it is due to the quality of the original. j Page 30 lease. The City shall send a billing for such semi-annual ! payment thirty (30) days prior to the due date. In the event such payment Is not made within five (6) , days of the due datet s; there shall be a penalty of six percent (61) ;of the amount due and owing, which penalty shall become part of that semi-annual ,. rental payment. Furthermore, and in addition thereto, any'.;amonn!' of` rental :'}�: p tA' and penalties unpaid,after thirty (30) `days shall have'a payment one and one-half percent (214) interest charge on the ..anpiid , amounts, which interest shall Ilkewise• become: part'. of ',the rental i ';`' , '� �;:'� payment. i i. ;:;• 3. OFF SITE IMPROVEMENT "X'. pr Lessee have no responsibility; for 'tTi 'coilsit�ruetion , ;of,.siny' .'shall improvements to any site not contained.ivitliin;tiuzjeaed;preoiisea��',:•. :;':%„• Lessor shall set the necessary boundary monucienti, and %jtjdi-"x ikei,;i";;•:, � "b on the leased premises. Lessor shall 8, 411? ed,� ramp to the leased premises of adequate -width'to, peii* accassjo Wd i premises -by taxiing aircraft. ., � !' +,i•,:,'••� .!.:,;, .. :•� • R .1.,..�. 4. ON SITE IMPROVEMENT REQUIREMENTS The Lessee shall berequired to construct -an saidp art a •6gildiria '`� `` in conformity with all applicable limos, oidinai4ces,,?'' 7rples:: i�fd - ! The building shall be approved by the..;SPAitC of the ., regulations. City of Petaluma. ,+•;'.'`' 4 ` S. UTILITIES Lessee shall pay for all water, sanitary sewage, gas service, electric power, telephone service, and all other services supplied to the said ! premises by Lessor, or any public utility, and shall pay all costs for the installation and connection and such services from the , site or boundary line thereof. Lessor agrees to make available utilities, 3 i t t +If the image of this document appears less -sharp than this ratite, it is due to the quality of the original. j Page 30 M- W P I electric, gasp water, 'sewer, telephone to the site or boundary line of the leaned premises within a reasonable time following execution oUthis Agreement. 6. USE OF PREMISES The leased premises shall be used as followat (a) For the storage of private aircraft in a hangar.to be constructed by Lessee and operations customarily i iclllw thereto; . (b) Common Facilities Usses and/or of facilities* at Airport designed for common', area, aprons, flood ,Jhh -1i ..taxiways; navigational at&,`16wer' ca IA u and - other common us*.-;. clH a ptledJfor. convenience and a Wo off of aircraft. The rights balani; Inclusive of .'the rights to di -CIA unload 7, -OPERATION OF AVIATION" Conditions of Federsl'Giant (a) This lease shall t - Agreement, by and betw"n'the United Stetes'ct'Aeidcs Federal` Lessor Aviation * Agency, and Lessor; and �';,s a to-;'&nd agreements. S. SURETY BOND Prior to thi commencement of construction of the hangar, Lessee, at Its sole cost and expense, shall furnish tpa Lessor a surety bond of 4 1 If the imga of this dwamnt: appear, less stmV than this notice, it is -due to the quality of the original-' W. Page 31 It an admitted surety company licensed to transact business In the State of California, satisfactory to Lessee$ or In the alternative a form of &A security which meets the approval of the City Attorney. 9. 14AINTENANCE AND REPAIRS A-1 Lessee shall, at his sole cost and expencep keep and maintain said pramiffes and appurtenances, and every part thereof, In. good and sanitary order, condition and repair, and hereby, waive* all right to make repairs at. the expense of Lessor as provided -in Section 1942# at seq. , of the Civil Code -of the State of California. Any . failure to maintain or make said, repairs upon "i; noted by. Lessor shall constitute a default by Lessee. 10. ALTERATIONS AND ADDITIONS Subsequint to completlai of. the impmemen:6, -and., fadlitles as hiMa.i. aattenumm"'ie a* -MtWW QMW- agm!k to, - Less" shM act make any' or emt say addlUmd sWadmis or I* !M to Co., & tis premises Vdibout VrWV writta, Mount or .0 alterations or additions'approved by iwao 4%4 be eonstftiAd. it'lihe mole expense of Lessee., 11. SIGNS Lessee shall be privileged to' 'mat suchgr adiartfiong media as' 0 the comply with applicable City 'of Pitalarial iiralhihciz 'and to phot same upon the improvement, to be erected puraWwt- "to; The tait, -Z color, mind design of all slins'shall be subject to the prl* apprqval,of Lessor. 12. UNLAWFUL USE No building, structure, or Improvement of any kind shall be meted, Ti -4 if the imge of this doemat aPPesXB leas sharp than this notice, it is due to. the, quality of the c4ginza! Page 32 placed upon, operated, or maintained on the leased premises, nor shall any business or operation be conducted or carried on therein or thereon In violation of any ordinance, law, statute, order, or rule of any governmental agency having jurisdiction thereover, nor shall any use be made of the leased premises which his not been specifically allowed. 13. WASTE, QUIET CONDUCT Lessee shall not commit, or suffer to be committed, any -waste upon said promises, or any nuisance or other act or thing which may. disturb the quiet enjoyment of the use of the surrounding airport property. 14. RULES AND REGULATIONS Lessee agrees to observe and obeyt:'. an , id" regulattons promulgated and enforced by Lessor or any other appropiuf.s. iUth0i4tj;--i*:-' having jurisdiction over the Airport during the tam: of -this i 15. INSURANCE Lessee agrees to procure and maintain at -its 6vm's.-,6"t;- and eXpelm". and at all times during the term of this lease,, cow preh Insurance naming Lessort its officersi, boards; and agents as additional. insureds In: the f, IJd6Qg amoun damage, $250,000.00, Bodily Nuiy.., $1,009,000.00'epar:, $1,0000000.00 per occurrence. Evidence of such Insurance shall be provided by:1As*0 by, the Lessor a copy of the, policy or policies, t",togdhii "with -`i`' duly 0-effelXj, executed certificate of the Insurer th that 00 bourance required by this lease is In force and effect* .Said pollcj or policies or certificates shall' contain a provision *. that written notice of change shall be delivered to the Lessor ton (10) days In advance of the effective date thereof* Lessee shall also 6 If the image of this document appears less stmV than this notice, it in da to the quality of the original., L 7. —7,;,�;­om -.7— _- -f Page -33- secure and maintain fire and extended coverage insurance on the buildings and structures to be erected by Lessee as a part of the i aviation operation created by this Lease Agreement. Said insurance j coverage shall be to the full insurable value of the structures and buildings and contents as erected and placed upon the leased premiies, subject to the customary deductible for the construction of. hangar facilities, and shall name Lessur as an . additional Insured. Lessee further agrees that in the event of any' fire or partial or complete destruction of the structures erected by. Lessee,..'any proceeds'' ... . of insurance received by Lessee shall be held • In trust. and utilised solely in the replacement, reconstruction, or repair: of; the `dieisgid'or " destroyed improvements. :+ 16. TAXES i'j¢la•'• ''t�t'i.J '!,;=y;„t�.', aid'y���";`�:'%;::i"'�;1t;:;;�;tt�'•t,'ii` r Istad„ Lessee agrees to pay promptly all. taxes. and:;sisgrsmaats.>e tQ items of property including both real'and ptsso�aal�to'qst�.,wltidti:tiiel:'f,;,°.:.;;:; purview of this 'Lease, which: miy be liptedjvsii'sssessid"„Y Wd;:'t;..:,.. properties leased or owned+byvfiesael�%"'?,G .. ti ...+ ti?,::':;SF� $ j+l,.. t��,•.,✓''t'F' n. +f�.'.a;�:': . d al,: ilurin 'r' ; when the slid taxes -and assesjn becoaie; du�,'r�► ya �%+•,.; 4 `;,• . + °:i li'i '':f'"'h`•�l?'� '.� ✓.�.`'.• � '•'i:F •.;'z •.raj. ..• ' the, aceupancy of the ndis'aari •� +. ;fie .: �;. C7, �i'••sry';.NY!'.:.; .:.,+i:,,,,;i :'v. County, City or other legally-iiithori:el; aodeitimsasntbax3tyrt; `�;; • c,. i' {�i •, _..• : .( ;',. � ;tit • 17. INSPECTION AND NOTICE Insofar as it may be necessary 'fox" the - protecti0i> of ';ttss Lcssor'i rights, the Lessor or its agents shalll-at any:a:td ;all `zeasoaabT-timai, and upon reasonable notice to Lessee;. have Ae, s7Qlit; " go.0 on and :- , inspect the land and premises and: - hereby'.. leased `lad itny structure or. ' d .. improvement erected or constructed, or in'the'eou=se,of being erected.;.. or constructed, repaired, added to, rebuilt. or sectored'thereon-. '.•`''' ` `' 18. ASSIGNMENT OR SUBLETTING ds-agreed•--that-Lessee-is -authorised to sublet the leased premisen'to a Sublessee, subject to the terms and conditions of this lease. Any If the image of this doc=nt appears less sharp then this notice, it is + due to the quality of the arigiib].. such sublease shall be subject to the written approval of Lessor, which approval shall not be unreasonably withheld. 19. IMOROVEMENTS it is agreed that all improvements constructed 'by Losses sh*U be ;S deemed personal property during the term 'of this lease: 'and that during the term of this lease and any e:tenstoti ths"to.lespe shalt .at ?? i all times have legal title to said latprovements;,°but Lessor shall have 'a `'•' lien thereon to secure the faithful performanci of beim s"obligations. YY under the approval of Lessor. i.Lessor►s IIeni'shaIt be'iabordlriate to `a. ;•S �.af•:�.' security instrument, approved by Lessor;: atjd;'heId tiyVatiy'•seoognlxed.•' •r' 'r' lending institution. but shall iiot'.bi'•;iuliordlaate to';any`•;;other encumbrance of any kind.: Said security 3natr'_=i qt shall not provide . •i°u' for'r'emovid of said improvements,.' ;);x.; `; �' �:r :.::ire r';: :.,':•, •i�.r'`:t:. f'r��:rK:$"Cf�ii�:, { 4,.4r<<<+(��•` r`."'..•fir• .. .'•Sli•s i}i4; .,v;, iii ,; ; :,. ,, s,+.•a£',. �i`.'.`y'- t:: :: 'V', '. 20.. INSOLVENCY ETC, •'';".1`°;3Y t ¢;'fi..'i �' '•'% " ':d,: i7,. ., r L ' .. In �Ffs'• .. ...:' .•;n: 'ti+:'•i� ,t !, ,2c:7•:o;:'hYa?t': �J''•`,' .;•1. .Y}s..; g, .•'t! ;', +;• trr Ii'tha ;Lases, be •sdJiidicated as ban�Csap or betai �71.,liifo itsnt, �"oo�,lt�+ k it } , :po:sesdo>s"of •any'.intereSn +s'!s 'ritis111iie taide>i'�'b' +` - ,,:: }p;, p>�1"' �•�.• .. • virtui'af anp�attachmint'';i7_t ut3oR�°:�. �,�S!�Niv!i's;,t}!�l~zds '::�'- ; _ •�j4'';.(: Ir�. ... ....: . ,: �e-r.•:.l>1i.:i-'.�." ! •Y• {. �;'�: 5: s.c� .. j., ;• �, at its election,;. unless iuc#i binkrdptdy-ptVta� be and+in"4;:' 1,favor . of Ats electiori�:,"iia% ince, bankrupap„rncxedinR•;b': , �`' ;;r is • terminated in favor of .`Lexses' lad' snc]*•insotva s R. bit;!cur�d soryl;sucti; :;"i!s: possession regained within niri�ty: , :(90 diyi hereifter-' immediately :'t` ' �` ' - •'{:. si• ..• �s';'iK)h j�il;fy" i+t�(•i.y?.:': J.'•�9G.': v. ;: i• + terminate this Lease by service•:of notice ".W.1pucb.•Aff ct`upony'•:Yw+r!ei In , y< any mannery ta, rovidedb P =.,if,{.`�',',::.?rt, .: ,1��` �; �•.'': � .tai, �„1',1 • VMJ 21. LENDER SECURITY `;::;. ; }: .•?jY �rc�'ti+s�,:;,lt "Yff••' ��i.��jY�it:i:%. ••" 5••. •.Yi,1%i •..: •I ,.,• • •; �• ,'1 I�f, � a• ! Notwithstanding anything to.ths contrast' ogt lied In Mitease,' it''fs .. a "� t•f; s •Y i(.,: r� ..:' ..,. � f ,:.. , understood and agreed, .thin.;Lessee'.array;a;:wilhout,"tli a-,* seatrof . �{ Lessor, assign,'•transfer# mortgage or -encumber. Lessee's '_iaterest under this Lease and •leasehold .state' , cleated, to.. i lender on the security of the leasehold estate for the iota purpo" of providing ? �; ---security-fort repayment of a ban or loans tatde and used to finance if the image of this doc!m,ent appears less sharp than•this notice, it is due to the quality of the original. i i��Srs,r:;_f•i:. ... i_�._. ...._.. .-..._......-„>_._•.:v.:.:tL'.i6''K:!.',iserS.<fd'.U'!1"w:'1e,Y%iiiilde;fay6ri•.. _ 1Y.'.••�;�it__`). If the image of this doc=nt appears less sharp than this notice, it is due to the .quality of the original. Page 36 :R! the construction of substantial improvements by Lessee upon the leased premises and Lessee may execute any and all instruments in connection : •.4' therewith necessary and proper to complete any such loan and 'perfect the therefor as may be required by such lender. Any such security lender shall have the right at any time during the term hereof and 'i while this lease is in full force and effect; •• {' (a) To do any act or thing required of Lessee hereunder and all such •, ���� ! acts or things done hereunder shall be as effective to prevent a �• `�i H'Y ! forfeiture of Lessees rights hereunder as if done by Lessees estate and acquire (b) To realise on thi security of the leaseholdttd t 3': ; �:?, ,. I and succeed to the 'Interest of the . Lessee' hereunder 'by Y, ' foreclosure or by a deed of assignment i'. given in Seas , of foreclosure and !hereafter at such lenders ;oPtion'to conveyor assign the interest or. title to this,lessehold.estata.to,any other. •. ;,{<�ei. x person subject to the terms, oonditiooi ;and. covenants{ ot.'this 4 leases and %.}' '{3,►h`, (c) To cure, within 'sixty (60) days after .notice of• default. by' Lessee- q, under the terms of this Lease. •, i':' A copy of any aad'security.devices or:'.other'instrttmieats;`sLali,lje'"; ..,i •.:^,+: filed with Lessor prior lhi `effectivi ',diti;;ther�o#; sad ;4tis` N,1r :" .to: Leasee shall give Lessor prior written'notiee ot,changes,ttiereto: '•`` 22. SURRENDER OF POSSESSION, At the expiration 'of the leasehold term;Lessee • agrees to yield. and :. deliver to Lessor the possession of ,the • eased 'promises' and all ' . buildings, fixtures, physical improvements and appurtenance erected '• by Lessee pursuant to paragraph 4 hereof. I 23. DEFAULT it In the event of default by Lessee in the performance of any of the 9 • n.. i If the image of this doc=nt appears less sharp than this notice, it is due to the .quality of the original. Page 36 terms, covenants, or conditions hereof, including the failure to pay rent, Lessor shall make written demand by registered mail upon Lessee to remedy said default and, if, thereafter, Lessee remains in default for sixty (60) days, Lessor, by and through its Airport Manager, shall have the right to take immediate possession of said premises. During said sixty (60) day period Lessee may appeal to the Petaluma City Council and request consideration of any circumstances claimed to cause such default, provided that any such circumstances shall not be deemed to be a waiver of such default, in the event the City Council extends the aforesaid sixty (60) day period. No waiver of Lessor or default by Lessee of any of- the .."terms covenants, or conditions hereof to be performed,•'kept;',or'observed.by., Lessee shall be construed to bisor-actas waiver .bp,,;;Lessor of any % subsequent default of any of the terms, 'covenant6;' and %condition , herein contained to be performed, kept, and observed by Lessee:; ' '•"' RESERVATION AS TO NAVIGATIONAL AID • ; 5 <y v..•'.:: ,: %i' Lessor reserves the right during 'the term' of tbli ,'lease renewal and/or extension theieof, , to': instaU': ssr• iriavigitional; including lighting, in, on, over, premises. In the•esercise of,any,of;the-.rightq.�li reofr taii;or,sgreei;;!:�+,: ; to give Leasee not lags than 'nine't (90) iT4pi 4"'lftei#; tiee:'ii#"i ;!' may" 1 r:j �•;:,'.. "iii Intention to instal such 'air.'isavigational:`;iiieli* 1`;It'''this"' I:el'Rlee!1�{f �'; :; a;•• enjoyment of the premises under this Lease ii itiliatatialIy',`itite'rfeed' with by any such installation, the Leeseeii rent shall' •be':reduced - in proportion to such interference. INDEMNITY Lessee hereby covenants and agrees to; and' aliall An- Omni- 70 Nave •.. • t harmless and defend, the Lessor, its agents, off sirs wn 1/ `',.eiaployees';, ' against all claims, demands, costs, and liabilitieif' w*Wch''way be',!nade'.' against Lessor by reason of or arising from' anything done; performed, or omitted to be done or performed on the leased premises -by the 10 1 If the image of this document appears less sharp than this notice, it is due to the quality of the original.. r. 4 S .4 Page 37 24. 1 " I • : i i f 25. terms, covenants, or conditions hereof, including the failure to pay rent, Lessor shall make written demand by registered mail upon Lessee to remedy said default and, if, thereafter, Lessee remains in default for sixty (60) days, Lessor, by and through its Airport Manager, shall have the right to take immediate possession of said premises. During said sixty (60) day period Lessee may appeal to the Petaluma City Council and request consideration of any circumstances claimed to cause such default, provided that any such circumstances shall not be deemed to be a waiver of such default, in the event the City Council extends the aforesaid sixty (60) day period. No waiver of Lessor or default by Lessee of any of- the .."terms covenants, or conditions hereof to be performed,•'kept;',or'observed.by., Lessee shall be construed to bisor-actas waiver .bp,,;;Lessor of any % subsequent default of any of the terms, 'covenant6;' and %condition , herein contained to be performed, kept, and observed by Lessee:; ' '•"' RESERVATION AS TO NAVIGATIONAL AID • ; 5 <y v..•'.:: ,: %i' Lessor reserves the right during 'the term' of tbli ,'lease renewal and/or extension theieof, , to': instaU': ssr• iriavigitional; including lighting, in, on, over, premises. In the•esercise of,any,of;the-.rightq.�li reofr taii;or,sgreei;;!:�+,: ; to give Leasee not lags than 'nine't (90) iT4pi 4"'lftei#; tiee:'ii#"i ;!' may" 1 r:j �•;:,'.. "iii Intention to instal such 'air.'isavigational:`;iiieli* 1`;It'''this"' I:el'Rlee!1�{f �'; :; a;•• enjoyment of the premises under this Lease ii itiliatatialIy',`itite'rfeed' with by any such installation, the Leeseeii rent shall' •be':reduced - in proportion to such interference. INDEMNITY Lessee hereby covenants and agrees to; and' aliall An- Omni- 70 Nave •.. • t harmless and defend, the Lessor, its agents, off sirs wn 1/ `',.eiaployees';, ' against all claims, demands, costs, and liabilitieif' w*Wch''way be',!nade'.' against Lessor by reason of or arising from' anything done; performed, or omitted to be done or performed on the leased premises -by the 10 1 If the image of this document appears less sharp than this notice, it is due to the quality of the original.. r. 4 S .4 Page 37 If the itrac�e of this docws�ent appears . 'less sharp than this notice, it is due to the quality of the original. Rag$--38— r' i ( to any loss, damage or expense arising out of the negligence or willful If the itrac�e of this docws�ent appears . 'less sharp than this notice, it is due to the quality of the original. Rag$--38— Lessee or arising out of Lessee's performance of its obligations pursuant to this agreement. However, this indemnity does not extend to any loss, damage or expense arising out of the negligence or willful misconduct of the Lessor, its agents, employees or officers. 26. EMINENT DOMAIN It Is expressly agreed by Lessor and Lessee that in the event eminent domain proceedings are undertaken by any governmental agency affecting the whole of the Airport, or any part thereof, which would adversely affect Lessees interest hereby. Lessee shalt be, entitled to jcompensation by virtue thereof, consistent with: curiront eminent domain laws and appraisal procedures. 27. NATIONAL EMERGENCY In the event that a nationalemergency<or' �declaratiori,by...Federal, ' State or County Government" causes • a drastio cuf tdLixint• of %dviltan aviation activities, Lessee "shall be entitled``to•:'submit',..s::aeguest4'=for reduction in the lease rent :r'ate..• Lessee 1:t'6 •entitled to' -present:.; s zs facts and. data to, show 'that;such: i;cnYtaifnddiit'iiai:,taken,epIiieb.-arid"::. that the curtailment -has seriously 'sffeted r;lpssee�4;:ntiHidt{oa'',of .'..t he .:.`•. . If sucb facts and lncltci�W tixat`"=:retiCtici►;:in leased promises. i . ;.. •.::..,. -p­.;",....-':I lease rent is warratited, then -'Lessor,-an I.euee-;itiill 'agree -'-;to, _ t negotiate a reduction in the rental 'rate'"durinj the period of curtailment. 28. NOTICES Any and all notices to be given under, this '.l,paie0 Y or 'otherwise;+;' may ;•• '• be served by enclosing the same in a sealed envelope addressed' to the party deposited ' art intended to reeeive•the same, at its"siidress,'and*de sited 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 Lessor, If the itrac�e of this docws�ent appears . 'less sharp than this notice, it is due to the quality of the original. Rag$--38— and the proper party to receive any such notices on its behalf lot City Clerk, i . }: Petaluma City 01 12 English Street Petaluma, California 94952 and the address of the Lesaea lot yi Peter * G. Pfandler X. 750 Sonoma Mountain Road Petaluma, California 94952 4s ` 29, INVALID PROVISIONS, SEVERABILITY 4 It Is expressly understood' and -'agreiad the even oh: hereto- that in t ap cov,onazftj'*j'?c�AdltI -o .'co contained herein Is invalldate'C'l'y` 4. 4p, A'a ig invalidity of any such"CiWanitit, M the In;v r -MV. V1 invalidate: any bt ex W NW, Agr"e'eiment, - provided's however,,1.Y*.T"T--'1_Ttr. Z•T covenant, conditions or provision Phi xro` w - . 1.1-W, .%-:w-;. too -In-1116WIffi ga 4t the Legs6r:.or the Lessee— .9V 0 A Vlt .an ,contained in •the,valld covenan 0.00Ud1 1 Ail: ...... . ... I-00 t 30. BINDING -ON SUCCESSORS The covenants and conditlofis'heialn contained! 1* "to ind"blitid. i, the heirs, successors, executor, adminlatiaWiss• iid-,asH'gns� ok .'all parties 'hereto. 31. TIME Time is of the essence in this' lease. 12 If the image of this docurrent appears less &=V than this notice, it is due to the quality of the orig4nai.. . Page 39 IN WITNESS WHEREOFt the parties hereto have set their hand the day and year first above written. CITY OF PETALU14A ATTESTS S, APP= LT0?1�11 ... ... .... 4 TOR EY LESSOR' Risk Manager pfdndle .—I-1 r. leas Al '541 A q 4 , 0 y 13 if the irmge of this •4=ment appears less sharp than this notice, it is - due to the qt4lity, of, -.the crig#al- —Rag-c-4,0— PFENOLER LEASE DESCRIPTION PARCEL "A" All that portion of land tying within Parcel "S" as shown upon the map entitled Exhibit "A" Airport Property Map, on file with the City of Petaluma, Further described as follows* Beginning at a 1/2" iron pipe tagged RCE 11226 located at the most north -1 westerly corner of Parcel "A" as shown upon said map. Theme* N 35. 20155" E 437.88 feet to a point on the westerly boundary of Parcel 19" as shown upon said map. Thence S 54' 33100" E 1.200.04 feet to an open 3/4" iron pipe set flush with the pavement marking the west and of a southerly 170.00 foot offset to the anter line of the runway. Thence from said point S 35. 27100" M 164.00 feet to a point theme@ N 54' 33100" N 29.67 Peel, to ail open 3/4" iron pipe marking .the northeast corner of the lease parcel herein to be described. Said point to be known as the true point of beginning. Thema from said point of beginning N 54. 33100" N 155.00 feet to an open 3/4" iron pipe. lhince S 35' 27100" M 90.00 feet to an open 3/4" iron pipe. 'thence S S4' 33100" E 155.00 feet to an open 3/4" iron pipe. Thence N 35' 27100" E 90.00.feet to the true point of beginning. Said parcel contains 0.32 acres more oP,vess. 1 EXHIBIT A If the image of this document appears less sharp than this notice, it is due to the quality of the original. '•f4� Page 41 r,. PFEMXER LEASE DESCRIPTION PARCEL "B" All that portion of land lying within Parcel "B" as shown upon the map entitled Exhibit "A" Airport Property Map, on file with the City of Petaluma. Further described as foilows: seginning at an open 3/4" Iran pipe Marking the most southwesterly corner of Pfendler lease. Thence from said corner S 35' 27000" M 10.00 feet to a point. ` Thence S 54' 33100" E 155.00 feet to a point. fiance N 35' 27900" E 10.00 feet to an open 3/4M iron pipe marking the most southeasterly corner of Pfendlor lease. Thence N 54. 33100" M along Pfendlor lease most southerly boundary 155.00 feet to the point of beginning. Said parcel contains 0.03 acres more or less. 1 if the ITrage of this document appears less sharp than this notice, it is due to the quality of the original. Pane 42— 00FECTIVE DATE 60 ORDINANCE NOV 24 1988 Introduced by Jack Cavanagh ORDINANCE NO. 1738 N.C.S. Seconded by Brian Sobel AN ORDINANCE AUTHORIZING A LEASE OF REAL PROPERTY LOCATED WITHIN THE PETALUMA MUNICIPAL AIRPORT COMPLEX BE IT ORDAINED BY THE Council of the City of Petaluma as followst Section 1. Certain real property located within' the Petaluma Municipal Airport complex in the City of Petaluma, County of Sonoma, State of California is hereby authorized to be leased under the terms and conditions net forth in the Lease by and between the City of Petaluma and Peter G, Pfendler which Lease ,is attached hereto as Exhibit "A" and incorporated herein by reference and the City Manager is hereby authorixed to sign maid Lease which is for the use 'of said property for a private aircraft storage hangar. Section 2. The City Clerk be, and she In hereby directed to publish this ordinance for the period and in the manner an required by the City Charter. Ord. 1738 NCS If the innge of this do=cent appears less sharp than this notice, it is due to the quality of the original. a on Page 43 ord. man gon.lease/ law13 INTRODUCED and ORDERED published/posted this 3rd day of October , 1988. ADOPTED this 24th day of _Qetoh , 1988, by the following votes AYES: Cavanagh, Tencer, Woolsey, ealshaw, Vice Mayor Davis NOESs 0 ABSENT$ Sobel, Mayor Hilligoss ATTEST: CIT 4%4�bk ord.mangon.lease LAW13 Ord. 1738 NCS if the immge of this document appears less sharp than this notice, it is due to the quality of the original. I Page 44 r K8 0-M LEASE OESCRIP1i M PARCEL. "A" All that portion of land lying within Parcel "a" as shown upon the sap entitled Exhibit "A" Airport Property Nap► on file with the City of Petaluma. Further described as foll ass Beginning at a 1/2" iron pipe tagged RCE 11226 located at the most north- westerly corner of Parcel "A" as shown upon said map. Thence N 35. 20155" E 437.88 feet to a point on the westerly boundary of Parcel 98e as shown upon said map. Thence S 54' 33100" E 1.200.04 feet to an open 3/40 iron pipe set flush with the pavement marking the west and of a southerly 170.00 foot offset to the anter line of the runway. Thence from Bald point S 35. 271000 M 164.00 feet to a patnt thence N W. 331000 N 29.87 feet to an open 3/40 iron pipe marking the northeast corner of the leases parcel harem to be described. Said point to be known as the true point of beginning. 'Thence tram said point of beginning N 54' 331000 w 155.00 feet to an open 3/40 Iran pipit., Thance•S 1.35. 27v0o" w 90.00 feet to an open 3/40 iron pipe. Thanes S $4. 339000 E 155.00 feet to an open 3/4" iron pipe. -Thence N 35' 27100" E 90.00 feet to the true point of beginning. Said parcel contains 0.32 acres more or len. 1 EXHIBIT A. If the iaage of this document appears less sharp than this notice, it is due to the quality of the original. Page 45 PFEWLER LEASE OESORnvnM PMM "ew All that portion of land lying within Parcel "9" as shown upon the map entitled Exhibit "A" Airport Property Nap, on file with the City of Petaluma. Further described as followst Beginning at an open 3/4" iron pipe marking the most southwesterly corner of Pfendler lease. Thence from said corner S 35. 27►00" M 10.00 feet to a point. Thence S 54' 33000" E 155.00 feet to a point. lbence N 35. 27►00" E 10.00 feet to an open 3/4" iron pipe marking the most southsastsriy corner of Pfendler lease. Thence N 54'.33100" M along Pfendier tease most southerly boundary 155.00 feet to the point of beginning. Said parcel captains 0.03 acres more or 1eso. I WVLI1lqrr If the mage of this document appears less sharp than this notice, it is due to the quality of the original. Page 46 EXHIBIT F .ASSIGNMENT AND ASSUMPTION OF LEASE This Assignment and Assumption of Lease is entered into by and between.KIMBERLY PFENDLER, as successor to Peter G. Pfendler ("Assignor") and GOLDEN STATE LUMBER, INC. ("Assignee") regarding a lease of real property at the Petaluma Municipal Airport, which property is owned by the CITY OF PETALUMA ("City"). Whereas, on October 24, 1988, Peter G. Pfendler and the City entered into that certain "Lease Agreement at the Petaluma Municipal Airport", which lease was thereafter amended by that certain "First Addendum to Lease Agreement at the Petaluma Municipal Airport" dated August 7, 2007 (both of which documents are collectively referred to as , the "Lease"); r Whereas, Assignor has constructed a hangar and made certain other improvements to the leased property; Whereas, Paragraph 18 of the Lease provides, "Assignment and Subletting. It is agreed that Lessee is authorized to sublet the leased premises to a Sublessee, subject to the terms and conditions of this lease. Any such sublease shall be subject to the written approval of Lessor, which approval shall not be unreasonably withheld ' Whereas, Paragraph 22 of the Lease provides: "Surrender of Possession." At the expiration of the leasehold term, Lessee agrees to yield and deliver to Lessor the possession of the leased premises and all buildings, fixtures, physical improvements and appurtenances erected by Lessee pursuant to paragraph 4 hereof." Whereas, Assignor and Assignee have entered into an agreement whereby Assignor sold to Assignee Assignor's interests in such hangar and improvements and Assignor's interests in the Lease for the property on which the hangar is located; and Whereas, and now the parties desire to complete a formal assignment of the Lease. NOW THEREFORE, IT IS AGREED AS FOLLOWS: 1. Assignment of Rights re Lease. Assignor does hereby assign to Assignee all of her right, title and interest of any type or nature in and to the Lease as of the Effective Date of this instrument. Assignor warrants that she is the holder of all rights of Peter G. Pfendler in said Lease and that said Lease is valid, in effect and in good standing. Other than such warranty, said assignment is "as is" and without warranty of any kind. 2. Assumption of Duties re Lease. Assignee does hereby assume all duties and obligation of Assignor under said Lease as of the Effective Date of this instrument, including but not limited to obligations arising under Paragraphs 18 and 22 of the Lease set forth above, and agrees to indemnify and hold harmless Assignor, and all successors thereof, from and against any and all costs, expenses, liabilities or obligations in any manner arising from or related to said Lease from and after the Effective Date of this instrument. All costs, Page 47 expenses, liabilities or obligations in any manner arising from or related to the Lease prior to the Effective Date shall be born by Assignor, who shall hold Assignee harmless therefrom. 3. Effective Date. The effective date of this instrument ("Effective Date") is February 27, 2009. 4. General Provisions. Each of the parties agrees to execute any other and further document as may be reasonably necessary to consummate or memorialize this transaction. Each of the parties signing on behalf of a principal warrants that -he or she has authority to execute this instrument on behalf of a principal. This instrument is the full and complete agreement of the parties regarding the assignment and assumption of the Lease. In the event that any legal action is necessary to enforce the terms of this agreement, the prevailing party therein shall be entitled to recovery her/its reasonable attorney fees incurred. Dated: Dated: ASSIGNOR: ASSIGNEE: Golden State Lumber, Inc. Am— L Kimberly Pfen t By Lee P. Nobmann, CEO CONSENT TO ASSIGNMENT OF LEASE The City of Petaluma ("City") does hereby approve the above assignment of the Lease pursuant to Paragraph 18 of the Lease. City's Consent to Assignment of Lease is conditioned upon (a) payment of rent in the amount of Two Thousand Nine Hundred and Ninety-three dollars ($2,993.00), which constitutes full payment to City due under the Lease to and including March 31, 2010, and (b) execution of this Assignment of Lease by the Parties and execution of the Consent to Assignment of Lease by City. At such time as City executes this Consent to Assignment of Lease, City confirms that the Lease is valid and in good standing as of the date of execution of City's Consent to Assignment of Lease. The undersigned warrants that he has authority to execute this Consent on behalf of the City. Dated: /0 , 2009 CITY OF PETALUMA �By John BTO City Manager Pa Page 48 ATTEST: APPROVED AS TO FORM: City Attomey APPROVED: r r! /,/0 l epartlrtent Duector APPROVED: APPROVED: Interim Finance Director 1296268.4 3 Page 49 /�/'�� /�-� OP ID: MF 1 ACOOR"" DATE (MM/DDIYY YY) EVIDENCE OF PROPERTY INSURANCE r 11/09/2009 THIS EVIDENCE OF PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW, THIS EVIDENCE OF PROPERTY INSURANCE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. AGENCY I PHONE,'TOT-T82-9200 COMPANY , Don Ramatici Insurance, Inc. Granite State Insurance Co. P.O. Box 551 Petaluma, CA 94953 Paul Ramaticl .,,,1707-782-9300 11 --,MAIL L R. SUB CODE: INSURED Golden State Lumber, Inc, 855 Lakeville Street, #200 Petaluma, CA 94952 LOAN NUMBER POLICY NUMBER 02LX32OG1988 EFFECTIVE DATE EXPIRATION DATE CONTINUED UNTIL 10104/09 101041' n TERMINATED IF CHECKED THIS REPLACES PRIOR EVIDENCE DATED: PROPERTY INFORMATION LOCATIONtOESCRIPTION Petaluma Municipal Airport Airplane Hangar Petaluma, CA 94954 THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS EVIDENCE OF PROPERTY INSURANCE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. t�VYCnMvc mrvnme�nvly COVERAGE I PERILS I FORMS AMOUNT OF INSURANCE DEDUCTIBLE Buliding- RI(;-SpeciaiForm, 90%Coinsurance 400,000 26,00 'ANCELLATION ;HOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO NAIL ---!-0 DAYS WRITTEN NOTICE TO THE ADDITIONAL INTEREST NAMED BELOW, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION )R LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES, Mv1j1 1 1 V 1`1M. -11 .-..,.-v , NAMEANDADDRESSTXMLO.OSRS TGAGEE PAYEE ADDITIONAL INSURED ' LOAN # City of Petaluma its officers AUTHORIZED REPRESENTATIVE employees agents & volunteers PO Box 61 Petaluma, CA 94953 opo. .J ACORD 27 (2005107) vna.vnv %.vnrwn l lvn - - --W- 11 -.1 - The ..y,,,•,.... ---._-- The ACORD name and logo are registered marks of ACORD Page -50 - POLICY NUMBER: 02LX32961956, COMMERCIAL PROPERTY CP 1218 06 95 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. LOSS PAYABLE PROVISIONS This endorsement modifies insurance provided under the following: BUILDING AND PERSONAL PROPERTY COVERAGE FORM BUILDER'S RISK COVERAGE FORM CONDOMINIUM ASSOCIATION COVERAGE FORM CONDOMINIUM COMMERCIAL UNIT -OWNERS COVERAGE FORM STANDARD PROPERTY POLICY SCHEDULE Provisions Applicable Loss Lenders Loss Contract Payable Payable of Sale X Prem. Bldg. Loss Payee No. No. Description of Properiy (_Name & Address) Hanger @ Petaluma Municipal City of Petaluma its officers Airport employees agents. & volunteers PO Box 61 Petaluma, CA 94953 A. When this endorsement is. attached to the STANDARD PROPERTY POLICY CP 00 99 the term Coverage Part in this endorsement is replace by the term Policy. The Following is added to the LOSS PAYMENT Loss Condition, as indicated in the Declarations or by an "X" in the Schedule: B. LOSS PAYABLE For Covered Property in which both you and a Loss Payee shown in the Schedule or in the Declarations have an insurable interest, we will: 1. Adjust losses with you; and 2. - Pay any claim for Loss or damage jointly to you and the Loss Payee, as interests may appear. C. LENDER'S LOSS PAYABLE 1. The Loss Payee shown in the Schedule or in the Declarations is a creditor, including a mortgage holder or trustee, whose. interest in Covered Property is established by such written instruments as: a. Warehouse receipts; b. A contract for deed; c. Bills of lading; Page 51 �r`v CERTIFICATE OF LIABILITY INSURANCE OP ID MF DATE(MM/DDNYYY) 00LDS-3 11/09/09 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION POLICY NUMBER ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Don Ramatici Insurance, Inc. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR P.O. Box 551 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Petaluma CA 94953 Phone : 707-782-9200 rax:707-782-9300 INSURERS AFFORDING COVERAGE NAIC # INSURED INSURER A: Granite stato inauranw Co. 13102 INSURER B: Rational union Piro Ins. of PA 1944 Golden State Lumber, Inc. Sierra Point Plyyw�ood & Lumber 855 Lakeville Street, #200 Petaluma CA 94952 INSURER C. INSURER D: INSURER E: 10/04/10 COVERAGES THE POLICIES OF INSURANCE LISTED) BELOW HAVE BEEN ISSUEDTO THE INSURER NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OFANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECTTO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH _REVISED POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR NS TYPEOFINSURANCE POLICY NUMBER DATE MM /DDlYYYY DATE MMIO LIMITS GENERAL LIABILITY EACHOCCURRENCE { $1,000,000 PREMISES [e0aumnca) $100,000 A X X COMMERCIAL GENERALUABILlrt CLAIMS MADE 'r:;71 � OCCUR 02LX32961956 10/04/09 10/04/10 MED EXP (Aryone Person) $5,000 PERSONAL & ADV INJURY $ 1, O00 '000 X $5000 PD tied per Occurrence GENERAIAGGREGATE S 2 OOO 000 GEN'LAGGREGATE LIMIT APPLIES PER: PRODUCTS-COMP/OPAGG s2,000,000 Ben. 11000-1000 X POLICY jE LOC A AUTOMOBILE X t.IASILITY ANY AUTO 02CA158474671 10/04/09 10/04/10 COMBINED SINGLE LIMIT (Ea accident) $1,000,000 BODILY INJURY (Parperaon) $ ALL OWNED AUTOS SCHEDULEDAUTOS BODILY INJURY (Perealdent) I $ X X HIRED AUTOS NON•OWNEDAUTOS PROPERTY DAMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY -EA ACCIDENT S OTHER THAN EA ACC S AUTO ONLY: AGG $ ANY AUTO EXCESS/UMBRELLA LIABILITY EACHOC,CURRENCE $10,000,000 AGGREGATE $10,000,000 B X7 OCCUR CLAIMSMADE BE19210658 10/04/09 10/04/10 41 $ HDEDUCTIBLE $ X RETENTION $10000 WORKERSCOMPFaJ3ATION AND EMPLOYERS' LIABILITY ANY PROPRIETORIPARTNER/EXECUTN�Lf j OFFICER/MEMBER EXCLUDED? (Mandatory In NH) TU TORYLATTS ER E.L EACH ACCIDENT $ EL DISEASE -EA EMPLOYE $ E.L. DISEASE - POLICY LIMIT $ If yyees desc be under SPECIAL PROVISIONS below OTHER A Building 02LX32961956 10/04/09 10/04/10 Limit 400,000 S ecial Form RC Deduct 25,000 DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS with Respect to Hangar @ Petaluma Municipal Airport *10 days notice will be sent for non-payment of premium 30*CG2011 rtRRTIRICATF NAI hFR CANCELLATION City of Petaluma, its officers, employees, agents & volunteers PO Box 61 Petaluma, CA 94953 26(2009/011 SHOULD ANY OF THEABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATIOf PETALU2 DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 10 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT; BUT FAILURE TO 00 SO SHALL IMPOSE NOODUGA71ON OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. D TATIVE Na,.�Aa'7�—~- ©1988-2009 ACORD The ACORD name and logo are registered marks of ACORD All rights Page 52 COMMERCIAL GENERAL LIABILITY CG 20 11 01 96 POLICY NUMBER: 02LX32961956 INSURED: Golden State Lumber, Inc. THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. ADDITIONAL'INSURED - MANAGERS OR LESSORS OF PREMISES This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE 1. Designation of Premises (Part Leased to you): Hangar.@ Petaluma Municipal Airport 2. Name of Person or Organization ,(Additional Insured): City of Petaluma, its officers, employees, agents & volunteers 320 N. McDowell Blvd. Petaluma, CA 94953 3. Additional premium: (If no entry appears above, the information required to'complete this endorsement will be shown in the Declarations as applicable to this endorsement.) WHO IS AN INSURED (Section Ill is amended to include as an insured the person or organization shown in the Schedule but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you and shown in the Schedule and subject to the following additional exclusions: This insurance does not apply to: 1. Any 'occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or on behalf of the person or organization shown in the Schedule. Page 53 OLD REPUBLIC iNS11RANCF. (:QMPANy CERTIFICATE OF INSURANCE Revision 1 This is to certify to City of Petaluma, (Certificate Holder): its officers, employees, agents and volunteers Post Office Box 61 Petaluma, CA 94953 The following policy(ies) Advantage Flight Service, Inc. Have been issued to: 855 Lakeville Street#200 Petaluma, CA 94952 August 6, THIS COVERAGE iS EFFECTIVE 12:01 A.M. August 8, 2009 INSURANCE COMPANY: OLD REPUBLIC INSURANCE COMPANY Property Damage $ $ Passenger Bodily Injury $ Single Limit Including Passengers, $ XXXX $ 25,000,000 With Passenger Liability Limited to: $ , $ PSOENIXAVI?ITIO\ tr��cn�cazz\r. August DESCRIPTION OF AIRCRAFT PHYSICAL DAMAGE COVERAGE: ALL RISKS GROUND & IN-FLIGHT INSURED DEDUCTIBLES F.A.A. NO. YEAR MAKEAND MODEL. VALUE NOT IN MOTION IN -MOTION IINGESTION N246GS 2001 Cessna Citation 525 $ $ $ 1$ Included as a Loss Payee for Aircraft Physical Damage Coverage. ❑ Breach of Warranty Coverage on Alrcraft'Physicai Damage as their interest may appear not to exceed 90% of the Insured Value. ® Included as an Additional Insured on Aircraft Liability Coverage but only with respect to operations of the Named Insured. ❑ Provided a Waiver of Subrogation on Aircraft Physical Damage Coverage, but only This coverage includes War and Confiscation Physical Damage Coverage This coverage includes War, Hijacking and Other Perils Exclusion Clause This coverage includes Exception to Terrorism Exclusion This coverage includes Conditional Exclusion of Terrorism This coverage includes Aircraft Hull War and Allied Perils This coverage includes War; Hijacking and Other Perils Exclusion Clause This coverage includes Exception to Terrorism Exclusion for Certified Acts of Terrorism This coverage includes Conditional Exclusion of Terrorism Pro Sion has been made to give the Certificate Holder thirty (30) days notice of cancellation- ten (10) days for nonpayment of premium or any poucy I above; however, the Company assumes no responsibility for the failure to provide such notice. This Certificate does not change In arty way the actual Agency Name: AirSure Limited Agency Phone: 303-526-5300 1990 VAUGHN ROAD, SUITE 350 KENNESAW, GA 301441 PH: (770) 590-49501 FX: (770) 590.0599 A MEMBER OF THE OLD REPUBLIC INSURANCE COMPANY Page 54 CERTIFICATE OF LIABILITY INSURANCE OATE(MMH)DrvYVY) OP ID C1 ADDAN-8 08/05/09 PRODucER OHIS (FICATE IS ISSUED AS TIOQ UPON THE POUCYNUMSER NLY AND CONFERS NO RIGHTS CERTIFICATE Don Ramatirni Insurance, Inc. HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR P.O. Box 551 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CLAIMS MADE•❑OCCUR AIRCRAFT Petaluma CA 94953 Phone: 707-782-9200 Pax:707-782-9300 INSURERS AFFORDING COVERAGE MAIC0 INSUREO INSURERA LJA Lq1 MED EXP (Any one porson) S INSURERS: A vantage Flight Service Inc. C O Golden State Ltumber Co. INSURER C: 85555555 Lakeville St. 200 B INSURER D: b Petaluma CA 94952 INSURER E: . fi• COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NqrMH-5fAty3jLj WY 11119 ANY REQUIREMENT, TERM OR CONDMON OFANY CONTRACTOR OTHER DOCUMENTWITH RESPEGM WHICH THIS CERTIFICATE MAY 66�R�` -• MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POUCIES.AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. LTR NSR TYPEOFINSURANCE POUCYNUMSER DATE M DDIYYYY DATE MMIDD/YYYY LIMITS X REPRESENTATIVES. GENERAL LIABILITY COMMERCIAL GENERAL LIABILITY CLAIMS MADE•❑OCCUR AIRCRAFT A•V'08083305 08/06/09 OB/06/10 EACH OCCURRENCE S PREMISES Eaocwronca S MED EXP (Any one porson) S PERSONAL A ADV INJURY S GENERALAGGREGATE S 25 000 000 GEN'LAGGREGATE UMtTAPPLIESPER. POLICY jF,T LOC PRODUCTS -COMPIOPAGG S AUTOMOBILELIABILI Y ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS . NON•OWNEDAUTOS COMBINED SINGLE LIMIT S (Ea accident) BODILY INJURY S (Per parson) BODILY INJURY (Perneddenl) $ PROPERTY DAMAGE S (Per acctdeni) GARAGELIABIUTY ANY AUTO AUTO ONLY -EA ACCIDENT S OTHER THAN EAACC $ AUTO ONLY: AGG $ EXCESS I UMBRELLA UASILITY OCCUR 0 CLAIMS MADE DEDUCTIBLE RETENTION S EACH OCCURRENCE $ AGGREGATE S S S S WORKERS COMPENSATION AND EMPLOYERS' UABWTY YIN ANY PROPRIETOR/FARTNERIEXECUTIVFD OFFICERIMEMBER EXCLUDED? (MondeleryInNH) I( as. dasoloa ender SPECIAL PROVISIONS below TORY LITA MITS ER EL. EACH ACCIDENT $ El- DISEASE -EA EMPLOYEE 5 E.L. DISEASE -POLICY LIMIT S OTHER DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT 1 SPECIAL PROVISIONS 2001 Citation CJ1 525; N246GS CERTIFICATE HOLDER IS AN ADDITIONAL. INSMAED n VitflnA-re Llr%1 n=O CANCELLATION ACORD 25 (2009101) Lg ?ass-<uus At:uKu truKvuKA I Iurv. aft ngncs Teservuu. The ACORD name and logo are registered marks of ACORD Page 55 SHOULD ANY OF THE ABOVE DS$C W BED POLICIES SE CANCELLED BEFORE THE EXPIRATIO DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN City of Petaluma, its Officers NOTICE TO THE CERTIFICATE HOLD I.RNAMED TOTHE LEFT, BUTFAILURETODO80SHALL Employees, Agents & volunteers IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR Jeanne Castro REPRESENTATIVES. PO $OX 61 AI 2 Pft TATIVE Petaluma CA 94953_ ACORD 25 (2009101) Lg ?ass-<uus At:uKu truKvuKA I Iurv. aft ngncs Teservuu. The ACORD name and logo are registered marks of ACORD Page 55 0 .0 OLD REPUBLIC INSURANCE COMPANY DECLARATIONS POLICY NUMBER AV 08083305 RENEWAL OF: AV 08083304 ITEM 1. NAMED INSURED: ADVANTAGE FLIGHT SERVICE, INC. AND GOLDEN STATE LUMBER, INC. 855 LAKEVILLE STREET # 200 PETALUMA CA 94952 ITEM 2. POLICY PERIOD:. FROM AUGUST 06, 2009 TO AUGUST 06, 2010 12:01 A.M. STANDARD TIME AT THE ADDRESS IN ITEM 1. - ITEM 3. The insurance afforded is only with respect to such of the following coverages as are indicated by specific premium charge or charges. The limit of the company, s• liability against each such coverage shall be as stated herein, subject to all of the terms of this policy having reference thereto. This policy is completed by Aircraft Hull and Liability Farm FAM-AV2. LIMITS OF LIABILITY ITEM 4. LIABILITY COVERAGES D. .SINGLE LIMIT BODILY INJURY, INCLUDING PASSENGERS, AND PROPERTY DAMAGE; E. EXPENSES FOR MEDICAL SERVICES OTHER LIAB COVERAGE - SEE ENDORSEMENTS TERRORISM (TRIA) • LTAR EACH PERSON EACH OCCURRENCE PREMIUM $ 25,000,000 $ 6,447 $ 10,000 $ 70,000 $ 0 **** **** $ 645 **** **** Included LIAB. TOTAL: $7,092 ITEM 5. Description of Aircraft and Physical Damage Coverage hereunder: F.A.A. REG. SEATS INSURED AIRCRAFT NO. YEAR MAKE AND MODEL TYPE CREW PASS. VALUE 1. N246GS 2001 CESSNA CITATION 525 LAND 2 5 $3,300,000 PHYSICAL DAMAGE COVERAGE PREMIUM 1. F: ALL RISK: GROUND & FLIGHT $ 13,695 OTHER HULL COVERAGE **** ENDORSEMENT: $ 990 TERRORISM (TRIA) included PHYSICAL DAMAGE TOTAL:• $14,685 PRODUCER COPY DEDUCTIBLES NTL ON FIRE AND THEFT NOT IN MOTION IN MOTION $ 0 $ 0 POLICY PREMIUM: $21,777 Page 56