HomeMy WebLinkAbout1987-026 Airport Operator LeaseFIXED BASE OPERATOR'S LEASE AGREEMENT
FOR THE ASHLAND MUNICIPAL AIRPORT
LEASE AGREEMENT made this-~/.d3t day of;J-~;~.~~.~.,
THIS
1987, by and between the CITY OF ASHLAND, a municipal corporation, the
Lessor herein, also hereinafter called "City", and
Ashland Air, Inc. , hereinafter called "Lessee";
WITNESSETH:
1. City does hereby lease unto Lessee as a Fixed Base Operator
(FBO), a part of the Ashland Municipal Airport, consisting of the air-
craft fueling system and storage tanks, and the City terminal building,
and eight (8) tie-down spaces, along with ingress and egress thereto,
as more particularly shown on the map attached hereto as Exhibit A, known
as the Airport Layout Plan. The balance of the airport is used for
general aviation aeronautical activities, and is available on an equal
basis to qualified persons, firms and corporations who qualify as "Fixed
Base Operators", or "Specialty Operators" at said airport and under
separate leases.
2. Said premises are let for the purposes and upon the terms,
conditions and provisions hereinafter set forth for a term of five (5)
years, commencing at 12:01 A.M. on the 1st day of September ,
1987, and then terminating at 12:00 P.M. on the 1st day of September ,
1992. It is agreed that the parties hereto will, prior to the expiration
of this Lease, discuss an extension of this Lease or renewal thereof for
an additional five (5) years if the parties can agree upon the terms and
conditions for the additional five-year period. If the parties are not
able to agree upon an extension no later than one hundred twenty (120)
days before the expiration of the original term period, then the Lease
shall terminate as stated above and at the end of the original five years.
3. The subject premises are leased to the Lessee solely for
the uses and purposes of conducting the business of a Fixed Base Operator
as described in the "Fixed Base Operator Standards" for general aviation
at said airport, a copy of which is attached hereto and marked Exhibit "B",
and the Lessee hereby agrees to do all things required of an FBO in said
Standards during the term of this Lease or any extension thereof. Said
Standards were established, defined and adopted by the City on March 3,
-1- Lease Agreement
llll ][ "lIlT"
1987. These Standards shall apply equally to all Fixed Based Operators
at said airport. The City agrees that all such services in Fixed Base
Operator Standards shall be confined to FBO's meeting these Standards.
Among other things, said Standards stipulate the nature and amount of
aeronautical activities and services required of all Fixed Base Operators
at said airport.
4. The Lessee agrees to operate the leased premises for the
use and benefit of the public and to make available to the public on
fair and reasonable terms all leased airport facilities and services at
reasonable prices so as to result in a reasonable profit to the Fixed
Based Operator. If the parties disagree as to reasonable charges to be
made for any facility, product or service, the matter shall be submitted
to arbitration, with one arbitrator to be selected by each party, and a
third by the first two arbitrators, and the decision to be final. Each
party shall pay the cost of his or her arbitrator, and the remaining
costs to be shared equally.
5. It is expressly understood and agreed that nothing herein
contained shall be construed to grant or authorize the granting of
exclusive rights within the meaning of Section 308(a) of the Federal
Aviation Act of 1958 as amended. The Lessee shall be responsible for
the actions of all of its employees, and shall render the City, its
officers, agents and employees harmless from any actions or negligence
of Lessee's officers, agents or employees for doing anything, or failure
to do anything, that in any way whatsoever relates to this Lease Agreement
or the operation of the Ashland Airport.
6. Lessee shall obtain and maintain continuously in effect at
all times during the term of this Agreement, at Lessee's sole expense,
the following insurance: comprehensive general liability insurance
protecting City and its officers, agents and employees against any and
all liabilities that may allegedly in any way relate to the operation or
maintenance of the airport by Lessee, or the premises adjacent thereto,
including, but not limited to, the leased premises, the adjacent roads,
driveways and/or other public places, including runways and taxiways,
-2- Lease Agreement
Illl '~ "IRt'
said insurance to be in the minimum amount of FIVE HUNDRED THOUSAND
DOLLARS ($500,000.00), combined single limit coverage. Such limit shall
automatically increase in the event of any change in the provisions of
ORS 30.270, or in the event said limits are found to be not totally
applicable to a city. All policies shall include the City, its officers,
commissions, elected officials, employees and agents as additional insureds.
Said insurance shall be considered primary to any other insurance or self-
insurance of the City. A certificate evidencing such insurance coverage
shall be filed with the City prior to the effective date of this Agree~i
ment, and such certificate shall provide that such insurance coverage
may not be cancelled or reduced or changed in any way adverse to the City
without at least thirty (30) days prior written notice to the City. Said
policy shall be continuous until cancelled as stated above. If such
insurance coverage is cancelled or changed, Lessee shall, not later than
fifteen (15) days prior to the termination or change in the insurance
coverage, file with the City a certificate showing that the required
insurance has been reinstated or provided through another insurance com-
pany or companies. In the event Lessee shall at any time fail to furnish
the City with the certificate of insurance required, City may secure the
required insurance or self-insure at the sole cost and expense of Lessee,
and Lessee agrees to reimburse City promptly for the cost thereof, plus
ten percent (10%) of the cost thereof for the cost of administration.
7. Each party agrees to notify the other in writing as soon
as practicable of any notice of any claim, demand or action arising out
of the operation of the airport by the Fixed Base Operator, and to
cooperate in the investigation and defense thereof.
8. Lessee shall keep, indemnify and defend and hold harmless
City, its officers, agents and employees, from and against any and all
claims, demands, suits, judgments, costs, and expenses, including attor-
ney's fees asserted by any person or persons, including agents or
employees of the City or Lessee, by reason of death or injury to persons
or loss or damage to property that allegedly results from Lessee's
operations, or anything done or permitted by Lessee under this Agreement,
except for the extent attributed to acts or omissions of City of its
officers, agents or employees.
-3- Lease Agreement
IIII 1[ "'III'T'~
9. Lessee further agrees to keep the leased area and premises
in a neat and orderly m~nner, free of offensive or dangerous materials
or conditions.
10. Lessee agrees to pay to the City on or before the tenth
day of each calendar month during the term of this Lease, the following
sums and amounts:
a. The rental of $
the term of this Lease; and
b. A flowage free of
$750.00
per month during
$0.05
(5¢) per gallon on all
fuel products (aviation fuel and Mogas) delivered to the Lessee at the
Ashland Airport. Said fee is payable on fuel used by the Lessee or sold
to the public; and
c. A monthly freight handlers fee administered by the
Lessee of 80 % of the gross collected;
d. A monthly Mogas license fee administered by the Lessee
of 80 % of the gross collected.
e. A monthly facilities charge administered by the Lessee
of 80 % of the gross income from any City-owned tiedown space adminis-
tered by the Lessee, excluding those spaces designated for use by the
Lessee for aircraft owned or leased to the Lessee; and
f. If revenue from shop activities, including general
aircraft maintenance, engine overhaul, aircraft painting, radio and air-
craft parts sales, exceed a gross of TWO HUNDRED FIFTY THOUSAND DOLLARS
($250,000.00) in any one calendar year, beginning in 1988, Lessee shall
pay to the City, on January 21st of the following year, a sum equal to
one percent (1%) of the gross in excess of $250,000 00.
The monthly rental rate in "a" above shall be adjusted yearly
as follows:
The monthly rental shall increase, but not decrease, in accord
with the increase in the Consumer Price Index. The year 1967 shall
equal 100 and the index used shall be Consumer Price Index for all urban
consumers for the Portland, Oregon area. The base period shall be for
the period ending July 1987, and if information for that month is not
available, it shall then be the next preceding month for which informa-
tion is available. The increase in the rent shall be determined and
made effective on an annual basis, with the first period being one (1)
year from the date this Lease commences, and on a yearly basis there-
after. Further, in no event is the rent to decrease.even if the Consumer
Price Index decreases.
-4- Lease Agreement
IIII If "'I~'T'~
In the event'the relevant Consumer Price Index for the Portland,
Oregon area is no longer published, the U.S. Department of Labor's
comprehensive official index most nearly answering the foregoing descrip-
tion shall be used.
If either of the above indices are no longer published, then
an index generally recognized as authoritative shall be substituted.
If the parties are unable to agree within sixty (60) days after demand
by either party, a substitute index shall be selected by the chief
officer of the Portland regional office of the Bureau of Labor Statistics
or its successor.
11. In order for the Lessee to establish business operations
in an orderly manner, the total payment to the City by the Lessee may
be reduced at the City's option by ten percent (10%) during the first
twelve (12) months of this Lease. Lessee agrees to pay all sums due
without notice by check payable to the City of Ashland, delivered or
mailed to the Director of Public Works, City Hall, 20 East Main Street,
Ashland, Oregon, 97520.
A delinquency charge of 1%% per month shall be added to pay-
ments required by this Lease Agreement which are more than ten (10) days
delinquent. Further, if more than two (2) payments are more than ten
days delinquent during the term of this Lease, then the City may decline
to discuss any extensions thereof.
12. The City shall be responsible for the maintenance of the
roof, structural items, plumbing, electrical and exterior painting of
the buildings, being leased, and all other repairs and maintenance of any
kind or nature shall be the responsibilitY of the Lessee.
13. The Lessee shall comply with all State and Federal rules,
including but not limited to, the effluent standards or prohibitions
established under Section 307(a) of the Clean Water Act for Toxic
Pollutants. The Lessee shall install all facilities necessary for the
operation and shall properly operate and maintain all facilities and
systems and related appurtenances of treatment that are required to keep
compliance with the Clean Water Act for Toxic Pollutants.
14. The Lessee, if it is a corporation, shall prior to the
commencement of this Lease, designate essential employees of the Lessee,
and who are acceptable to the City, and any change in said employees
-5- Lease Agreement
IIII "il "'ili'I']
shall either result in.the termination of the Lease, or shall be
accomplished the same as any transfer of the Lease by the Lessee.
The Lessee shall have the right to assign the whole or any part of
the Lessee's rights and duties under this Lease, subject to the written
approval of the City, which such approval cannot be unreasonably
withheld. The City, in considering approval, may take into considera~
tion the experience, qualifications and financial ability of the proposed
assignee to do the things required of the Lessee, and to operate the
subject airport for the benefit of the public.
15. It is expressly agreed by the parties that all rights,
privileges and liabilities imposed by this Lease are subject and sub-
ordinate to any conditions, restrictions, limitations, rules, regulations
or future requirements for modification of this Lease, by any agreement
or contract pertaining to said airport between the United States Govern-
ment or any other department or agency of either the United States
Government or the State of Oregon.
16. The Lessee agrees to the terms and conditions of the
City's adopted Minority Business Plan currently in· effect with the FAA
and to be amended from time to time as required by the FAA.
17. It is expressly understood and agreed by the parties
that this Lease may be terminated upon proper notice ninety (90) days
in advance of such termination date, and upon the conditions stated
hereinafter.
18. TERMINATION:
a. Termination by Lessee. This Agreement shall be sub-
ject to termination by Lessee in the event of any one or more of the
following events:
(1) The abandonment of the airport as an airport or
airfield by the Lessor.
(2) The default by the City in the performance of any
of the terms, covenants or conditions of this Agreement, and for the
failure to continue for a period of thirty (30) days after receipt of
notice from Lessee concerning said default, provided that if the remedy
takes longer than thirty (30) days, then the term of notice shall be
so extended.
-6- Lease Agreement
Illl
(3) Damage to or destruction of all or material portions
of the premises, and which are necessary for the operation of Lessee's
business, and the election by the Lessee not to replace such improvements
within six (6) months after destruction.
(4) The lawful assumption by the United States or any
authorized agent thereof of the operation, control or use of the airport,
or any substantial part or parts thereof, in such a manner as to restrict
substantially Lessee from conducting its business operations for a
period in excess of ninety (90) days.
b. Termination by the City. This Agreement shall be subject
to termination by City in the event any one or more of the following
events:
(1) Failure to pay rent or failure to pay any money due
to the City as set forth herein.
(2) The default by Lessee in the performance of any of
the other terms, covenants or conditions of this Agreement, and the
failure of Lessee to remedy or undertake to remedy to the City's
satisfaction such default for a period of thirty (30) days after receipt
of notice from City to remedy the same.
(3) The filing of a voluntary petition in bankruptcy,
including a reorganization plan, or filing in Chapter 11 of the Bank-
ruptcy Act, and general or other assignment for the benefit of creditors,
or as adjudicated as a bankrupt, or for receiver appointed for the
property or affairs of Lessee.
(4) Abandonment of the premises by Lessee.
(5) The failure to conduct the business as set forth in
Exhibit "B" hereto, or failure to perform any duty required in Exhibit
"B" hereto.
c. EXERCISE. Any notice required herein shall be given thirty
(30) days in advance of the termination date.
d. REMOVAL OF PROPERTY.
(1) Subject to paragraph (2) and (3) below, upon termina-
tion of this Agreement, Lessee, at his sole expense, shall remove from
the premises all buildings, signs, trade fixtures, furnishings, personal
property, equipment and materials owned by Lessee, and which Lessee was
-7- Lease Agreement
permitted to install or maintain under the rights granted herein. If
Lessee shall fail to do so within sixty (60) days, then the City may,
at its option, effect such removal and/or restoration at Lessee's
expense, and Lessee agrees to pay City such expenses promptly upon
receipt of proper invoice therefor. Any improvements not removed by
Lessee pursuant to this paragraph shall become the property of the City
without any right of Lessee to compensation or reimbursement, except as
set forth in sub-paragraph (2) below.
(2) At any time not less than six (6) months prior to
termination date, City shall have the option to purchase on such termina-
tion date, all improvements on the premises at an agreed price, or if
no agreement can be reached, the purchase price to be the fair market
value to be determined by agreement of two (2) MAI appraisers, one
chosen by each party. If the two appraisers so chosen cannot agree upon
a fair market value, they shall choose a third MAI appraiser. The
determination of fair market value by a majority of the three appraisers
shall be final and binding upon the parties, provided, however, City may
elect not to purchase said improvements. All fees of arbitration shall
be paid by the party appointing such arbitrator. All other fees and
expenses of the arbitration shall be shared equally by the parties.
19. The Lessee assures that it will undertake an affirmative
action program as required by 14 CFR Part 152, sub-part E, to insure that
no person shall, on the grounds of race, creed, color, age, national
origin or sex, be excluded from participating in any employment activi-
ties covered in 14 CFR, Part 152, sub-part E. The Lessee assures that
no person shall be excluded on these grounds from participating in or
receiving the services or benefits of any program or activity covered
by the sub-part. The Lessee assures that it will require that its
covered sub-organizations provide assurances to the City that they
similarly will undertake affirmative action programs and that they will
require assurances from their sub-organizations as required by 14 CFR,
Part 152, sub-part E to the same effect.
-8- Lease Agreement
II11 1["'1111' T':
20. Lessee covenants and agrees to pay all real and personal
property taxes assessed against the lease property, and the Ashland
Airport during the term of this Lease, such payments to be made no later
than November 15 of the year in which the taxes become due and payable,
and will submit a copy of the receipt for the taxes to the City's
Director of Finance.
21. The Lessee shall also have a non-exclusive right to use,
in common with others, all public airport facilities and improvements
of a public nature which are now, or may hereafter be, connected with,
appurtenant to, landing, taxiing, parking areas, and other, use facilities.
22. It is further understood and agreed that the Lessor may
choose to do construction work or maintenance work on portions of the
airport, and accordingly, the Lessor may, when reasonably necessary,
close the airport so that the Lessee will be required to temporarily
suspend activities, and will not have ingress and egress to its leased
facilities.
IN WITNESS WHEREOF, the City of Ashland, State of Oregon, and
Ashland Air, Inc. have each caused this instrument
to be executed_ l~and attested b~ their appropriate officers as representa-
tives on the ~J day of .>.~,,~>~'..~/~,~_/ , 1987.
CITY OF ASHLAND (Lessor)
ATTEST:
City kecordcr
Mayor
BY
(Lessee)
-9- Lease Agreement
I111 ~f "I~T'!
IIII If "I~I'T'!
Exhibit B
FIXED BASE OPERATOR STANDARDS
FOR THE
ASHLAND MUNICIPAL AIRPORT
In order to conduct a fixed base operation at the Ashland Municipal
Airport ("Airport"), the City of Ashland ("City") requires each Fixed
Base Operator ("FBO") to meet the qualifications and minimum require-
ments for conducting a nonexclusive fixed base operation on the Airport
as set forth below.
I. ~ualifications
A. Prior to entering into a fixed base operator agreement, the
proposed FBO shall demonstrate the following to the satisfaction of the
City:
1. Experience in fixed base operations, or other aeronautical
experience prior to the date proposed to commence a nonexclusive fixed
base operation on the Airport.
2. Demonstrate good moral character, including but not
limited to no convictions for:
a. Criminal offenses incident to a public or private contract
or subcontract;
b. Violations of the Organized Crime Control Act of 1970;
c. Violation of Federal Anti-Trust statutes;
d. Embezzlement, fraud or similar crimes which are indicative
of a lack of business integrity, or the suspension or debarment from
award of public contracts or terminations of a public contract.
3. Financial ability to carry out all of the terms and conditions
of a nonexclusive fixed base operator agreement.
4. Ability to furnish good, prompt, efficient and courteous
service on a nonprejudicial basis, adequate to meet all reasonable
demands of the public.
5. The applicant for Airport lease will submit a financial state-
ment including all names of owners, or Officers if applicant is a
Corporation. Any subsequent change in Officers will be submitted to
the City during the duration of the lease.
II. Minimum Requirements and Performance Standards
A. The FBO or a subtenant operating under a sublease duly authorized
by the City, shall provide the following minimum goods and services at
the Ashland Airport. The City reserves the right to enter into a
-1-
~onexclusive agreement with an individual other than an FBO to provide
One or more of said minimum goods and services on the Airport. The PB0
shall provide to the General Aviation market the following minimum
goods, services and facilities:
1. A sufficient number of FBO owned/leased aircraft shall be
permanently based at the Ashland Airport:
a. For flight training requirements of private, commercial,
and instrument pilot ratings, and
b. To reasonably satisfy the needs of the community for rental
aircraft. Other types of aircraft are at the option of the lessee.
2. Line services, on a non-contract, on-demand basis during
normal business hours, seven (7) days a week, consisting of:
a. Aircraft parking facilities, including transient, term
and/or monthly aircraft tie-down as indicated on lease map, Exhibit A;
b. Fuel sales and fuel handling services to General Aviation
aircraft, during daylight hours.
c. The FBO shall provide 80, 100 and turbine fuel unless
otherwise authorized by the City.
d. Collection of certain airport fees levied by the City.
e. An aircraft maintenance and repair shop in an enclosed
hangar building(s) capable of holding a minimum of one light twin
engine aircraft, within 12 months from executing lease, if building
construction is required.
f. Maintenance, inspection and repair of airframes, aircraft
engines and aircraft accessories by at least one airplane and power
plant mechanic (A&P/IA) certified by the FAA to provide such
maintenance, inspection and repair services. The mechanic(s) shall be
based in Ashland unless otherwise authorized by the City.
g. An adequate store of aircraft maintenance and service
replacement parts and accessories.
h. The existing terminal building with a total area not less
than 1,000 square feet of ground floor space, providing office area and
public facilities, including a pilots' lounge, public restrooms, public
telephones and access to ground transportation.
i. A manned Unicom radio transceiver°
-2-
j. An adequate supply of merchandise and materials related to
the operation and safety of General Aviation such as, but not limited
to:
1. flight materials;
2. maps and charts;
3. log books;
4. flight computers; and
5. manuals.
Such minimum goods, services and facilities must be provided directly
by the FBO or by a subtenant operating under a sublease approved by
City prior to the initiation of the sublease.
For the purpose of these standards and services Commercial Aviation is
defined as all operations and aeronautical activities performed by air
carriers, air charters, air taxis, non-scheduled operators and
military. General Aviation includes all other aeronautical operations.
3. Fuel Storage and Handling.
a. The FBO shall have personnel~ trained in FAA fuel handling
procedures, on duty during daylight hours, seven (7) days a week, who
will provide Fuel Sales and fuel handling services to the General
Aviation market without unreasonable delay. Fuel handling procedures
shall be in accordance with FAA Advisory Circular 150/5230-4 "Aircraft
Fuel Storage, Handling and Dispensing on Airports".
b. Ail fuel storage and dispensing facilities constructed,
installed and/or maintained on the Airport must be approved by the
City.
c. Any fuel delivered into any aircraft by the FBO shall be
dispensed through a filter, conforming to FAA requirements, at the
Ashland Airport.
d. Fueling of aircraft by an FBO at a location other than
the FBO's leased premises shall be permitted only in the event the
FBO is requested to do so by the customer being served.
4. The FBO shall obtain and keep in full force and effect at all
times all approvals, licenses, permits and certificates necessary to
conduct a fixed base operation on the Airport.
5. The FBO shall comply with all laws, ordinances, rules, regula-
tions, directives and circulars issued by any Federal, state or local
government agency having jurisdiction over the Airport, including but
not limited to the requirements of Title VI of the Civil Rights Acts of
1964, any Exclusive Right prohibitions, all Affirmative Action require-
ments of Title 14 Code of Federal Regulations Part 152 and lease
provisions required by the FAA.
6. The FBO shall comply with all the rules and regulations
established and maintained by the City.
-3-
I111 'i[ "lilT'!
:II.
" 7. The FBO shall obtain FAA approval, by way of FAA Form 7460-1 or
any other appropriate approvals, prior to commencing any construction
or installation on the leasehold°
8. The FBO shall provide reasonable security for the leased
premises.
9. The FBO shall provide necessary and appropriate training of all
employees including, but not limited to, training in fuel safety and
fire and accident procedures.
10. The FBO shall submit to lessor monthly reports of operations,
such reports to include but not be limited to data relative to fuel
sales, landings and takeoffs, hangar occupancy, number of tie-downs
occupied, special events, and narrative information as to overall usage
of the subject airport.
11. It is mutually understood and agreed that City shall have
access to the FBO's accounts and records at any time during the
normal business hours upon three days' notice for the purposes of
audit. It is further understood and agreed that the City shall have
the right to one unannounced audit per year at the City's expense.
It is mutually understood and agreed that incidental to this
right of inspection, that the FBO shall keep acceptable accounting
records according to standard approved accounting procedures for income
tax purposes during the term of this lease and for at least three (3)
years after the expiration of the lease or the extension thereof.
Other Services.
In the conduct of its fixed base operation, FBO may conduct the
following types of business on its leased premises subject to the
approval of the City Administrator or his/her authorized designee, or
at such other locations as may be approved by the City Administrator or
his/her authorized designee.
Services described in this Section III may be provided on the airport
by other than the FBO. Such a provider shall be designated as a
"Specialty Operator".
A. Sale of aviation related goods and services;
B. food and beverage sales and service;
C. general merchandise sales;
D. commercial ground transportation service, including rental
vehicles;
E. commercial cargo handling;
F. air charter or air taxi operations;
G. aircraft rentals;
-4-
aircraft sales, both new and used;
I.
J.
K.
L.
flight training activities;
interior and exterior aircraft cleaning;
aircraft painting; and,
maintenance, inspection and repair of airframes, engines, and
avionics by personnel certified, as required, by the FAA and FCC to
provide such maintenance, inspection and repair service.
M. similar aeronautical activities as the City may, from time to time,
approve.
IV. Minimum Improvement Standards.
A. Submittal, Review and Approval of Plans.
1. No building or structure of any kind, including but not
limited to, buildings, aircraft storage hangars, aircraft maintenance
hangars, fencing, improved aircraft parking/tie down areas, landscaping
irrigation systems, light fixtures, signs, stationary fuel storage and
dispensing facilities, and utilities, shall be erected, have its
exterior altered, be added to, be placed or be permitted to remain on
the leased premises or any part thereof until and unless the plans
showing floor areas, external design and decoration, landscaping, paved
roadways, paved taxiways and paved parking areas, structural details
and the ground location of the intended structure, together with a plot
plan have been first delivered to, reviewed by and approved in writing
by the City. All buildings, structures and facilities constructed on
the leased premises shall be of new material. The City may require
changes, deletions or revisions to the plans submitted in order that
the proposed improvements meet the intent, objectives and guidelines of
the City, and conform to the building restriction lines set forth in
the Airport Layout Plan, the setback requirements for FAA technical and
operational equipment on the Airport, as well as applicable codes and
regulations of the City and other applicable local, state and federal
regulatory agencies.
2. The architectural character of all structures shall be such
that they are in harmony with and compatible to the architectural.
character as established by the City. The architectural character of
structures shall include, but not be limited to the overall design,
height, construction materials, exterior colors and textures.
3. Notwithstanding the approval of the plans and specifications by
the City, neither it, nor any person acting in behalf of the City,
shall be responsible in any way for any defects in any plans or
specifications or other material submitted to the City, nor for any
defects in any work done pursuant thereto. Each FBO submitting such
plans o~ sp~i£i~ations shall be solely responsible for the sufficiency
-5-
VI.
VII.
thereof and the adequacy of improvements constructed pursuant thereto.
The City shall not be held liable to any person, whether the tenant,
its contractor or subcontractor or not, on account of any action or
decision of the City or failure of the City to take any action or make
any decision.
B. Improvements.
1. Aircraft Storage Hangars. In the event the FBO elects to
construct aircraft storage hangars, then such storage hangars shall be
permanently constructed, erected or installed on pavement designed for
the heaviest aircraft anticipated to use the area, and shall be subject
to the approval of the City. Aircraft storage hangars shall be of
first class, high quality design and constructed with new materials and
shall meet the objectives and follow the guidelines set forth for
hangar structures on the Airport, including but not limited to building
type, construction materials and color standards. Any such
construction will be subject to negotiations between the FBO and the
City.
2. Fuel Storage and Dispensing Facilities. Any new fuel storage
and/or stationary fuel dispensing facilities constructed on the
Airport, both additional facilities and replacement facilities, shall
be constructed only in the designated fuel storage area on the Airport.
The FBO shall lease from the City fuel facilities and/or sufficient
area on which to construct any new or replacement fuel facilities
necessary to service its fixed base operation. Design of fuel storage
and dispensing facilities, including but not limited to the type, size,
height and placement of such facilities shall be subject to the
approval of the City.
3. Lighting. The FBO shall install lighting fixtures on the
leased premises necessary to its operation and to protect the safety of
guests, patrons, and employees. Lighting fixtures shall conform to the
guidelines for lighting fixtures. The City shall review and approve
lighting fixtures. The City shall review and approve the location,
intensity and illuminating effects of the light fixture(s) to ensure
that it presents no hazard to Airport operations.
4. Graphics and Signs. Ail graphics and signing on the leased
premises shall be consistent with the objectives and conform to the
regulations for graphics and signing.
Noise Impact. Due consideration for the noise impact on the community
surrounding the airport will be given by the FBO in the selection of
aircraft and related activities.
In the event the above standards conflict with the provisions of
the City or other applicable local, state or Federal regulatory agency,
the most restrictive standard shall be applied.
Facilities Development. The City has the right to further develop and
improve the airport, its property, improvements and future facilities,
-6-
II11 'I[
VIII.
including hangar construction as the City deems appropriate to the
public interest and shall have no responsibility to the FBO for any
loss of revenue which might be caused by such development or improve-
ment.
Other FBO Rendered Services:
A. The FBO will'serve as the City's representative disseminating
and monitoring the Rules and Regulations Pertaining to the Ashland
Municipal Airport as adopted by Council Resolution No. 78-10 or as
amended by the City Council (Exhibit C, attached).
-7-