HomeMy WebLinkAboutOrdinance 2110-B N.C.S. 04/02/20011
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OF ORDHIMANCE
MAY 2 m nni
Introduced by
Janice Cader-Thompson
ORDINANCE NO. 2110-B N.C.S.
Seconded by
Mike Healy
AN ORDINANCE OF THE COUNCIL OF THE CITY OF PETALUMA
AUTHORIZING A LEASE OF REAL PROPERTY LOCATED
AT THE PETALUMA MUNICIPAL AIRPORT
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS
25 FOLLOWS:
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28 Section 1. Certain real property located in the City of Petaluma, County of Sonoma,
29 State of California is hereby authorized to be leased under the terms and conditions set forth in
30 the Non-commercial Lease Agreement by and between the City of Petaluma and Bud Toly,
31 which lease agreement is attached hereto as Exhibit "A" and incorporated herein by reference.
32 The City Manager is hereby authorized to sign said lease agreement which is to construct and
33 maintain an airport hangar.
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35 Section 2. If any section, subsection, sentence, clause or phrase or word of this ordinance
36 is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of
37 competent jurisdiction, such decision shall not affect the validity of the remaining portions of
38 this ordinance. The City Council of the City of Petaluma hereby declares that it would have
Ord. 2110-B N.C.S.
I passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that
2 any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid.
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4 Section 3. The City Clerk is hereby directed to post this ordinance for the period and in
5 the manner required by the City Charter.
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7 INTRODUCED and ordered posted/published this 12`h day of March, 2001.
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ADOPTED this 2nd day of April, 2001 by the following vote:
AYES: Healy, Moynihan, Vice Mayor Cader-Thompson, Mayor Thompson
NOES: Torliatt
ABSENT: Maguire, O'Brien
Mayor
ATTEST:
A2,�Jjffs ain4�
City Clerk lrdefimcAyWrk
ord
12/18/00 (fmk)
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Ord. 2110-B N.C.S.
NON --COMMERCIAL LEASE AGREEMENT
PETALUMA MUNICIPAL.AIRPORT
THIS LEASE AGREEMENTis made and entered into as of the 1 day of A
200 (, by and between the CITY OF PETALUMA, a political subdivision of the State of California,
hereinafter referred to as "Lessor" or "City" and Bud Toly; hereinafter referred to as "Lessee."
WITNESSETR
WHEREAS, the Lessor herein_is a political subdivision duly organized and operating under the laws of
the State of California, and, owns all that certain real property located at the Petaluma Municipal
Airport, Petaluma, California, a city airport, hereinafter referred to as "Airport"; and
WHEREAS, Lessor deems it advantageous to itself and the operation of the Airport to lease unto
Lessee a certain parcel of land_ described herein, together with certain privileges, right, uses and
interest therein, as hereinafter set forth; and
WHEREAS, Lessee proposes to lease a ground area consisting of those portions of the Petaluma
Municipal Airport described in Exhibit "A" and shown on the plat marked Exhibit "B," attached hereto
and incorporated herein by reference (the "Premises"). Said properties shall be used as a general
aviation 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, rights, uses and interest. therein
and herein.
NOW ; THEREFORE, IT IS AGREED AS FOLLOWS:
1. TERM.
Lessor, for and in consideration of all the covenants, conditions, and agreements to be set forth
hereinafter to be kept and performed by Lessee and by Lessor, does hereby lease unto Lessee,
on all the conditions; covenants, terms and agreements hereinafter set forth, those certain
premises described in Exhibits A and B attached hereto and incorporated herein, for a term of
thirty (30) years, commencing on July 1, 2001, and ending on June 30, 2031. Lessor hereby
grants to Lessee a first right of refusal to extend this lease by not more than twenty (20) years,
subject:to obtaining a mutually agreeable lease with Lessor.
2. RENTAL
Lessee shall pay to Lessor a rental in accordance with the 'following provisions:
(a) The annual base ground rental for the total premises, as described in Exhibits A,and B
shall be at $0:25 per square foot. Said rental shall be payable in advance, on, execution
of this lease,. for the first year of :this lease. Thereafter, the rental rate for the. remaining
period of the 'lease term shall be determinedat the commencement 'of each successive
lease year period at the rental rate; applicable. -for the immediately -preceding lease year
adjusted for an increase in -'the Bureau of LaborStatistics. Cost of Living Index - San
Francisco - Oakland, all items; for said preceding year. In no event shall the rental rate
for any lease year be less than the applicable rental rate for the immediately- preceding
lease year.
(b) Beginning with the second lease year, the base ground rent shall be payable, ,in advance,
in semi-annual installments .for each (6) six-month, period of the lease. Lessor. shall send
a billing for such semi-annual payment thirty (30) -days prior to the due date; however,
failure by Lessor to send, or failure by Lessee to receive; such billing, shall not excuse
Lessee.'s obligation to pay rent. hereunder nor constitute a waiver by Lessor of its right
to -rent under this Lease. In the event such payment is not made within five'(5) days of
the due date; there shall be a penalty of six percent (6%) of the amount due and owing,
which penalty shall become part of that semi-annual rental payment.
Furthermore; and in addition thereto, any amount of rental payment:.and penalties
Unpaid after. thirty (30) days shall have a one and one-half percent W/2% o) per month
_ interest charge on the unpaid amounts, which. interest shall likewise become part of the
rental payment:
(c) In consideration of costs -associated with off --site improvements, including extension of
utilities, Lessor shall grants to Lessee a credit against the semi-annual ;rental, as
provided hereaffter. 'Such credit shall be pro -rated equally among the semi-annual lease
payments; not to exceed forty percent (4.0% o) of any one semi=annual payment, until full
credit,as defined hereafter, is received. "Full credit" shall mean actual out-of-pocket,
documented expenses for the off --site improvements, not to exceed $20„000. Lessee
shall provide Lessor with documentation of any expenses claimed under this provision
when claiming all or any part of such credit.
OFF -SITE IMPROVEMENTS .
Lessor shall set the necessary boundary monuments and, grade stakeson the leased premises at
Lessee's expense. Lessee shall provide a paved. taxiway, or ramp to the leased premises of
adequate width to permit access to- said premises by taxiing aircraft, as may be required by
Lessor. Lessee shall not be responsible for maintenance. of any off -site improvements.
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4. ON -SITE IMPROVEMENT REQUIREMENTS; DEADLINE FOR COMMENCEMENT OF
CONSTRUCTION
The Lessee shall be required to construct on the Premises a building in conformity with all
applicable laws, ordinances, rules and regulations. The building -shall be approved by the Site
Plan and Architectural Review Committee of the City of Petaluma, or, at the option of the
Community Development Director, by administrative SPARC approval. If Lessee has not
secured all necessary administrative approvals and commenced actual construction on or before
the date which is twelve months after the commencement of this Lease, then this Lease shall
become null and void, and Lessee shall promptly vacate the leased premises.
5. 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 to such services.
6. USE OF PREMISES
The leased premises shall be used as follows:
(a) For the storage.of general aviation aircraft in a hangar to be constructed by Lessee.
(b) Common Facilities
Lessee and/or Sublessee shall have the right of access to and use of facilities at Airport
designed for common use, such as landing area; aprons, taxiways, flood lights, landing
light, beacons, navigational aids, tower communication, public address systems, and
other common use facilities supplied by Lessor for convenience and accommodation in
operation, landings, and take off of aircraft. The rights herein extended to Lessee shall
be inclusive of the rights to land, take off, taxi, tow, load, or unload aircraft.
(c) Lessee and/or Sublessee shall not conduct scheduled air carrier operations on the
premises or at the airport.
(d) Air charter services, if desired, will be subject to the restrictions as may be required by
the City of Petaluma or other regulatory agencies which may apply.
7. OPERATION OF AVIATION BUSINESS BY LESSEE
Conditions of Federal Grant:
(a) This lease shall be subordinate and subject to the Grant Agreement, by and between the
United States of America, Federal Aviation Agency, and Lessor, and subsequent grants
and agreement.
8. SURETY BOND
Prior to the commencement of construction of the hangar, Lessee, at its sole cost and expense,
shall furnish the Lessor a surety bond of an admitted surety company licensed to transact
business in the State of California and satisfactory to Lessee, in a sum not less than Five
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Hundred Thousand Dollars ($500,000) or substitute security guarantee as may be approved by
the City.
9. MAINTENANCEAND REPAIRS
Lessee shall, at his sole cost and expense; keepand maintain said premises and 'appurtenances,
and every part thereof, in good and sanitary. order, condition and ;repair, -.and hereby waives all
right°to make repairs at the expense of Lessor as provided in. Section 1942, et 'seq., of the Civil.
Code of the State of California. Any failure to maintain or make said repairs upon being
notified by Lessor shall constitute a default by Lessee.
10. ALTERATIONS. AND ADDITIONS
Subsequent to completion of the improvements and facilities as herein .agreed to, Lessee shall
not make any :alterations to the exterior ,thereof or erect any additional structures or'
improvements on the leased premises without prior written consent of Lessor: Any such
exterior' alterations or additions approved by Lessor shall be constructed at the sole expense of
Lessee.
11. SIGNS
Lessee shall be. privileged to erect such signs as comply with applicable. City, of Petaluma
ordinances and to place the same upon the improvement to be erected �pur5uant hereto. The
text, color, and design of all signs shall be subject to the prior approval of Lessor.
12. UNLAWFUL USE
No; building, structure; -or improvement ofany, kind shall'be erected, placed upon, operated, or
maintained on the lease di 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 has not been specifically allowed.
13. WASTE, QUIET CONDUCT
Lessee shall not commit, or suffer to be committed, any waste upon said premises, or any
nuisance or other act or thing which may disturb the quiet enjoyment' of the use of the
surrounding airport property.
14. RULES, REGULATIONS, POLICIES AND STANDARDS
Lessee agrees to observe and obey all ,rules 'and regulations promulgated and enforced by
Lessor or any other appropriate authority having, jurisdiction over the Airport during the term of
:this lease.
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15. INSURANCE
Lessee agrees to procure and maintain at its own cost and expense, and at all times during the
term of this lease; comprehensive liability insurance naming Lessor, its officers, boards,
commissions, employees and agents as additional insureds in the following amounts: property
damage; $500,000.00; bodily injury, $1,000,000.00 per person; and $1,000,000.00 per
occurrence.
Evidence of such insurance shall be provided by Lessee by filing with the Lessor a copy of the
policy or policies, together.with -a duly executed certificate of the insurer to the effect that the
insurance required by this lease is in force and effect. Said policy or policies or certificates
shall contain a provision that written notice of cancellation or any material change shall be
delivered to the Lessor- .ten (10) 'days in advance of the effective date thereof. Lessee shall also
secure and maintain, fire and extended coverage insurance on the buildings and structures to be
erected by Lessee as a, part of the aviation operation created by this Lease Agreement.. Said
insurance coverage shall be to the full insurable value of the structures and buildings and
contents as erected and placed upon the leased premises, subject to the customary deductible
for the construction of hangar facilities, and shall name Lessor 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
utilized solely in the replacement, reconstruction, or repair of the damaged or destroyed
improvements.
16. TAXES
Lessee agrees to pay promptly all taxes and assessments related to items of property including
both real and personal property within the purview of this Lease, which may be levied or
assessed upon said properties leased or owned by Lessee, as Lessee's interest may appear when
the said taxes and assessments become due and payable during the occupancy of the leased
premises under any levy or assessment by County, City or other legally authorized
governmental authority.
17. INSPECTION AND NOTICE
Insofar as it may be necessary for the protection of the Lessor's rights, the Lessor or its agents
shall at any and all reasonable times,'and upon reasonable: notice to Lessee, have the right to go
upon and inspect the land and premises hereby leased and any structure or improvement erected
or constructed; or in the course of being erected or constructed, repaired, added to, rebuilt, or
restored thereon.
18. ASSIGNMENT OR SUBLETTING
It is agreed that Lessee is, authorized to sublet the leased premises to a Sublessee, subject to the
terms and conditions ofthis ,lease. Any such sublease shall be subject to the written approval of
Lessor, which approval shall not be unreasonably withheld.
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19. EMPROVEMENTS
It is agreed that all improvements constructed by Lessee shall be, deemed personal property
during the term of this lease, and that during the "term of this lease and any extension thereto
Lessee shall at all times have legal title to ,said,;improvements, but Lessor` shall have a lien
thereon to secure faithful performance of Lessee's obligations under the approval" of Lessor.
Lessor's lien shall be. -subordinate to a security instrument, approved,'by Lessor, and held by any
recognized. lending institution but shall not be subordinate to any other encumbrance of any
kind: Said security instrument shall not provide for removal of said improvements. _
20. INSOLVENCY, 'ETC..
If the Lessee be adjudicated as bankrupt or become insolvent, or if possession of 'any, interest in
the leased premises shall be taken by virtue of any attachment, execution., or. receivership, the
Lesson may, 'at its election, unless such bankruptcy, proceedings be;terminated in favor of its
election, unless such bankruptcy, proceedings be terminated in favor of Lessee and such
insolvency be cured,, or such possession regained within ninety '(90) days thereaffter,
immediately terminate this lease by service of notice to such effect upon Lessee 'in any manner
provided by law.
21. LENDER SECURITY
Notwithstanding anything to the contrary contained in this lease, it is understood` and agreed
that Lessee may,' without the consent of Lessor, assign, transfer, mortgage or encumber
Lessee's interest under this lease and leasehold estate created, to a lender on the security of the
leasehold iestate for the sole purpose of providing security for the repayment of a loan or loans
made and. used °to finance the construction of substantial improvements by;Lessee upon the
leased' premises and Lessee may execute any and all instruments in connection therewith
necessary and proper to complete 'any such loan and, perfect, the security therefor 7as may be
required by such lender. Any such lender shall have the right at any time during the term
hereof and, 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 forfeiture of Lessee's. rights hereunder as "if
done byLessee;
(b) To realize on the security of the leasehold estate and to acquire' and succeed to the
interest of the Lessee hereunder by foreclosure or by a deed, of assignment given in lieu
of foreclosure and thereafter at such lender's option_'to convey or assign the interest or
title. to this leasehold estate, to any other. person subject to the terms, conditions and
covenants of this lease; and
(c) To cure, within. sixty (60) days after notice of default' by Lessee under the terms of this
lease.
A copy of any security devices. or'.other instruments shall be filed with Lessor ,prior to.the
effective date -thereof and the Lessee shall give Lessor prior written notice of changes thereto.
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22. 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.
23. DEFAULT
In the event of default by Lessee in the performance of any of the 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-day (60) 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-day (60) 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 be or act as waiver by
Lessor of any subsequent default of any of the terms, covenants, and conditions 'herein
contained to be performed, kept, and observed by Lessee.
24. RESERVATION AS TO NAVIGATIONAL AID
Lessor reserves the right during the term of this lease, or any renewal and/or extension thereof,
to install air navigational aids, including lighting, in, on, over, under, and across the leased
premises. In the exercise *of any of the rights hereof, Lessor agrees to give Lessee not less than
ninety (90) days' written notice of its intention to install such air navigational aids. If the
Lessee's enjoyment of the premises under this lease is substantially interfered with by any such
installation, the Lessee's rent shall be reduced in proportion to such interference.
25. INDEMNITY
Lessee hereby covenants and agrees to, and shall, indemnify, save harmless and defend, the
Lessor, its agents, officers and/or employees against all claims, demands, costs, and liabilities
which may be made against Lessor by reason of or arising from anything done, performed, or
omitted to be done or performed on. the leased premises by the 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 Lessee's interest hereby Lessee shall be entitled to compensation
by virtue'thereof, consistent withcurrenteminent domain laws and appraisal procedures.
27. NATIONAL EMERGENCY
"In the event that a national emergency or a declaration by federal; ist.ate or county government
causes a drastic curtailment of civilian aviation activities, Lessee shall be `entitled to submit a
request, for reduction in the leaserentalrate. Lessee shall be entitled to present facts and data to
show that such a. curtailment has taken place and that•the .curtailment has seriously affected
Lessee's utilization of the leased premises.. If such facts and data indicate that 'a reduction in
easerent is warranted, then,Lessor'and Lessee shall agree to negotiate a reduction in the rental
rate during the, period of curtailment.
28. NOTICES
Any and all notices to be given under- this lease, or otherwise, may be served by enclosing the
same in a sealed envelope .addressed to the party intended to receive the same, 'at its address,
and deposited :in the United States Post Office as registered mail with postage 'prepaid. When
so given,- :such notice shall be effective from the date of the mailing of .the ,same. For the
purpose thereof, -unless otherwise provided in writing by the parties hereto;; the; address' of the
Lessor, and the proper party to receive any such notices on its behalf 'is;
and the address of the Lessee .is:
City Clerk
City -of Petaluma
11 English Street
Petaluma, California 94953
Bud Toly
1340 Commerce Street .
Petaluma, California '94954
29. INVALID PROVISIONS, SEVERABILITY
It is expressly understood and agreed by and between the parties hereto ;that in the event any
covenant, condition, or provision contained herein -;is invalidated by a_ court° of ,competent
jurisdiction, the invalidity of "any such covenant, condition or provision shall not invalidate any
other covenant, condition, or provision :of this agreement, .provided, however; that the invalidity
of any such covenant, condition, of provision shall not materially prejudice °either the: Lessor or
the Lessee in their respective rights and obligations` contained in thel valid covenants,
conditions, and provisions of this agreement.
30. BINDING OF SUCCESSORS
The covenants and conditions herein contained shall apply to and bind the heirs, successors,
executors, administrators, and assigns of all the parties hereto.
31. TIlVIE
Time is of the essence in this lease.
IN WITNESS WHEREOF, the parties hereto have set their hand the day and year first above written.
CITY OF PETALUMA
B,
City Manager
ATTEST:
Title
�a o a
City Clerk Addre
APPROVED AS TO FORM:""'"" W -4 S
City State Zip
(Z94t City Attorney
APPROVED:
a
Directo is 1 and Services
APPROVED:
Risk Manager
APPROVED:
Finance Officer
agrmt
9/22/00 (fmk)
. 70-T 76
Telephone