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HomeMy WebLinkAboutFlight Level Aviation, LLC. - Agreement-05.27.2022DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B26CA TEMPORARY USE PERMIT THIS TEMPORARY USE PERMIT (Permit) is issued this 27th day of May, 2022, by the CITY OF FRESNO, CALIFORNIA, a municipal corporation (City), acting by and through the Director of Aviation of City (Director) to Flight Level Aviation, LLC., a California Limited Liability Company, (Permittee). WITNESSETH WHEREAS, City is the owner and operator of the Fresno Chandler Executive Airport (FCH) located in the City of Fresno, County of Fresno, State of California; and WHEREAS, Permittee desires to operate a self-service general aviation fueling station and tank as services to the general aviation community on the airfield at FCH; and WHEREAS, City desires to grant Permittee the right to operate said business from areas within locations as described and depicted on Exhibit "A", attached hereto and incorporated herein, upon the terms and conditions herein; and WHEREAS, pursuant to Resolution No. 91-279, "Resolution of the Council of the City of Fresno, California, Authorizing Director of Aviation to Execute Temporary Permit Agreements for the City" (passed by the City Council of City on July 16, 1991), the Director of Aviation may authorize and execute a Temporary Use Permit for use of Airport property for a term of up to six (6) months. NOW THEREFORE, pursuant to Resolution No. 91-279, and in accordance with the Fresno Municipal Code, and subject to all of the terms, conditions and limitations contained within said Chapter of said Article, all of which are incorporated herein by reference, and in consideration of the above recitals, which recitals are contractual in nature, the mutual promises herein contained, and for such other good and valuable consideration hereby acknowledged, this Permit is issued as follows: ARTICLE 1 - DEFINITIONS The following words and phrases shall have the following meanings when used elsewhere in this Permit. A. "Permit" means this Temporary Use Permit between City and Permittee, as the same may be amended or supplemented from time to time pursuant to the terms hereof. B. "Fresno Chandler Executive Airport" "FCH" means the Airport located at 510 West Kearney, Blvd. Fresno, CA 93706. C. "Assigned Area" means the public area or areas designated and depicted on Exhibit "A" attached hereto, as the place or places within the Airport where the fuel dispensing system and above ground tank is located. 2 DocuSign Envelope ID: F720CEAF-E960-4EEB-A15A-9EE4110B2BCA TEMPORARY USE PERMIT BETWEEN CITY OF FRESNO (A Municipal Corporation) AND FLIGHT LEVEL AVIATION, LLC., A CALIFORNIA LIMITED LIABILITY COMPANY DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE411OB26CA D. "Director" shall mean the City of Fresno's Director of Aviation, or the designee of the Director of Aviation. E. "Fuel Flowage Fees" means gallonage fee for aviation fuel sold and dispensed on airport property by Permittee. The rate is listed in the Master Fee Schedule. F. "Terminal Building" means the Administration/Terminal Building at the Airport as it exists on the date hereof, and any additions made thereto during the term of this Permit. G. "The Term of this Permit" (and any and all readily identifiable variations thereof), when used herein, means the full Term of this Permit, as specified within Article 2 of this Permit, including any extension(s) of said term, UNLESS this Permit shall be terminated earlier as herein elsewhere provided, in which event, said phrase and said variations thereof, shall mean the lesser period during which this Permit shall be in full force and effect. ARTICLE 2 - TERM Section 2.1 Term The Term of this Permit shall become effective upon the date set forth above and shall continue for six (6) months, until 11:59 p. P.S.T., November 26, 2022, subject to prior termination as provided herein. ARTICLE 3 - RIGHTS OF PERMITTEE Section 3.1 Grant of Use Rights City hereby grants to Permittee the exclusive right to operate a self-service general aviation fueling station and tank at FCH including a revocable (as provided herein) right to use the Assigned Area solely for the purposes of this Permit. Permittee agrees to provide a self-service location that operates 24 hours a day, 7 days a week. Permittee also agrees to have an access number listed to assist users listed at the location that will respond 24 hours a day, 7 days a week. The Permittee is responsible for but not limited to: equipment maintenance, service to the public, secured transactions for fuel services. All costs incurred by Permittee in pursuit hereof, including costs arising from maintenance and ownership of all equipment shall rest solely with Permittee. Section 3.2 Installation of Improvements and Equipment A. Permittee shall maintain the currently installed 12,000 gallon above ground fueling tank, dispenser and install new merchant credit card processing equipment at the location. City shall approve the area where the equipment is to be installed, in advance. At any time during the life hereof, City may by written DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA notice reasonably require Permittee to install additional equipment and/or provide additional services at Airport if public demand so indicates. B. On -Site Payment Processing System. Permittee shall have the right to install a payment processing system to the location, for the purpose of charging customers for dispensing fuel from the self -serve location. If after the termination of this permit the Permittee is not awarded the permanent leasehold of the self- service fuel facility, the Permittee shall be reimbursed for the cost of the payment processing system minus any depreciation. If reimbursement does occur, Permittee must provide City with a copy of all invoices and paperwork that are a direct result and cost of the payment processing system. Upon receipt of the invoice and documents, City shall have 90 days to submit for reimbursement payment back to Permittee. At that time, Permittee must sign over bill of sale and all other information as to the ownership of the payment processing system. Upon final payment, the system shall become solely owned by the City. If Permittee is granted the permanent leasehold, then the installation of the payment processing system shall be at Permittee's own cost with no right to reimbursement. C. Permittee shall not install or affix any signs or advertisements in or to any portion of the Airport without the prior written consent of City. Section 3.3 Permittee's Alterations and Improvements Permittee shall not install or erect any alterations or improvements in the Assigned Area, unless and until plans and specifications for such alterations or improvements shall have been submitted to and approved in writing by City. Any such alterations or improvements shall be without cost to City. All alterations, improvements, equipment and interior design and decor constructed or installed by Permittee, its agents, or contractors, including the plans and specifications, shall conform to all applicable statutes, ordinances, building codes, and rules and regulations. Full and complete plans and specifications for all work, facilities, improvements, and finishes, and the time required to complete same, shall be submitted to and receive the written approval of City before any work or construction is commenced. First-class standards of design and construction shall be complied with in connection with all such work, facilities, and improvements; and all construction shall conform with the general architectural requirements of City. Two copies of the as -built plans for all improvements or subsequent changes therein or alterations thereof to the Assigned Area shall be given to City for review prior to commencement of construction; after final approval by City, City will return one approved copy for Permittee's records and shall retain one approved copy as an official record thereof. These plans, and any subsequent modifications or alterations, shall also 0 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA be furnished to City on computer discs as electronic files in a format compatible with the CADD system used by City. Section 3.4 Citv's Alterations and Improvements_ to Airport Permittee acknowledges that from time to time City may undertake construction, repair, or other activities related to the operation, maintenance and repair of the airfield, which may temporarily affect Permittee's operations hereunder. Permittee agrees to accommodate City in such matters, even though Permittee's own activities may be inconvenienced, and Permittee agrees that no liability shall attach to City, its members, employees, or agents by reason of such inconvenience or impairment. It is agreed that in the event such activities of City substantially impair the operations of Permittee under this Permit, the Fuel Flowage Fees shall be reduced or waived during such period of substantial impairment in reasonable proportion to the degree of impairment, with what constitutes "substantial impairment" being determined at the sole discretion of City after consultation with Permittee. Section 3.5 Title Removal and Demolition of Improvements Any permanent improvements, additions, and alterations made to the Assigned Area by Permittee shall upon installation become the property of City free and clear of liens or encumbrances; provided, however, that any trade fixtures, associated equipment, signs, and other personal property of Permittee not permanently affixed to Assigned Area shall remain the property of Permittee. Should Permittee fail within twenty (20) business days following the termination of this Permit to remove its trade fixtures, signs, and other personal property of Permittee not permanently affixed to Assigned Area, then at the option of City, title to same shall vest in City at no cost to City. Permittee shall not remove or demolish, in whole or in part, any improvements upon Assigned Area without the prior written consent of the Director. Permittee understands and agrees that consent may be conditioned upon the obligation of Permittee to replace the same by an improvement specified in such consent at Permittee's sole expense. Section 3.6 Reimbursement of Fuel Costs Should the Permittee not enter into an agreement the end of this Term, all fuel still stored within the tank at that time shall become the property of City. The Permittee shall be entitled to reimbursement for the cost of the fuel remaining in the tank. Permittee shall be responsible for providing an invoice to show what was paid for that fuel. ARTICLE 4 - MAINTENANCE Section 4.1 City's Obligations City agrees that it will at all times maintain, operate, and keep in good repair FCH, and all appurtenances, facilities, and services now or hereafter connected thereto. DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE411062BCA Section 4.2 Permittee's Obligations A. Permittee shall be obligated, without cost to City, to maintain self-service general aviation fueling station and tank in good appearance, repair, and safe condition and in compliance with all requirements of the law and City. B. Permittee shall also maintain all of the Assigned Area and self-service general aviation fueling station and tank in a neat and clean condition, free from all litter, trash, scrap paper and similar debris, and perform all such painting and repair work as is necessary to maintain said area in an attractive condition. C. Permittee shall observe and comply with any and all requirements of all federal, state or local statutes, ordinances, regulations and standards applicable to Permittee or its use of FCH, including, but not limited to, rules and regulations promulgated from time to time by City and other authorities having jurisdiction over operations in and about FCH. D. Upon execution of this Permit, Permittee shall establish a preventive and routine maintenance program, the provisions of which shall be subject to the approval of and periodic review by the Director or designee. Permittee shall from time to time, upon request, provide the Director or designee a written schedule of Permittee's cleaning and maintenance program. E. If City determines that maintenance of the self-service general aviation fueling station and tank is not satisfactory, City shall so notify Permittee in writing. If appropriate maintenance is not performed by Permittee within fifteen (15) days after receipt of written notice, City or its agent shall have the right to perform the maintenance and Permittee agrees to reimburse City promptly for the cost thereof, plus fifteen percent (15%) for administrative overhead. F. Prior to making any repairs to the Assigned Area other than to its own equipment, Permittee shall discuss with the Director or designee to determine whether City elects to make the repairs with its own personnel and charge Permittee its standard rates for such service including any overhead charges. All work performed by Permittee must be inspected and approved by the Director. G. All repairs done by Permittee or by others on its behalf shall be of professional quality in both materials and workmanship. All repairs shall be made in conformity with the rules and regulations prescribed from time to time by federal, state, county or local authority having jurisdiction over the work in the Assigned Area. H. Permittee's Obligations regarding Repair and Maintenance of the Premises: Permittee shall be solely responsible for and expressly agrees at all times during the Term of this Lease, at Permittee's own cost and expense, keep and maintain rol DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA the Premises and all buildings, structures, paved surfaces, hangar doors, security fences, any security gates installed by Permittee , and any and all other improvements constructed, installed, and/or located in and/or on said Premises in good order and repair, free of weeds and rubbish, and in a clean, sanitary, sightly and neat condition (City shall have no obligation to provide any services whatsoever in this regard); and at Permittee's sole expense maintain, repair, and/or provide the premises and any and all facilities and other improvements in full compliance with any and all building, fire, safety, and environmental codes, ordinances, statutes, standards, rules, regulations and/or requirements of any and all federal, state, county and/or municipal governmental entities which may, at any time and from time to time during the Term hereof, be required by law to facilitate the commencement and/or continuation of the use(s) thereof for such purposes as are authorized hereunder. Permittee shall provide maintenance service for any landscaped areas located on the Premises during the Term of this Lease. Such services shall be performed by Permittee at no cost to City and shall include and be limited to the following: 1. Removal trash/rubbish from around the location; and 2. Monthly maintenance of the self-service general aviation fueling station and tank. J. City's Right to Enter: City's representatives shall have the right to enter upon all or any part of the Premises at any and all reasonable hours on any day of the week for the purpose of inspecting same or for the purpose of making any required repairs thereto and performing any required maintenance thereon. City agrees to provide Permittee with a minimum of ten (10) days' notice in advance of any formal inspection of the Premises and prior to the making of any required repairs thereto, except in cases of emergency wherein no advance notice will be required. K. Repairs by City at Permittee's Expense: In the event, City deems any repairs required to be made by Permittee necessary and serves Permittee with written notice thereof, if, for any reason whatsoever, Permittee fails to commence such repairs and complete same with reasonable dispatch, City may then make such repairs or cause such repairs to be made and shall not be responsible to Permittee for any loss or damage that may occur to Permittee's stock or business by reason thereof. If City makes such repairs or causes such repairs to be made, Permittee agrees that the cost thereof shall be payable, as additional rent, along with the next monthly rental installment due hereunder after the completion of such repairs and the submission by City to Permittee of a statement of such cost, or if no further rental installments are then payable, within thirty (30) days following submission by City of any such statement. Section 4.03 Utilities, Outside Storage, Disposable Waste, Control of Hazards and Nuisances, and Permittee's Responsibility Regarding Hazardous Substance. 7 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110I326CA A. Utilities: 1. During the Term hereof, Permittee shall make its own arrangements for and pay all charges for water, sewer, gas, electricity, telephone, trash collection, and other utility service(s) (Utilities) supplied to and used on the Premises. All such charges shall be paid before delinquency, and City and the Premises shall be protected and held harmless by Permittee therefrom. Should Permittee make arrangements for any Utilities through the City's Utilities Billing and Collection Section (e.g. water, sewage, and/or solid waste [trash] disposal), Permittee agrees to pay to City, monthly, upon receipt of the billing(s) therefor at the then current rates as established from time to time by ordinances of City for such services, such sum(s) as shall be due for any and all such services provided to the Premises during the Term hereof. 2. Upon Permittee's obtaining of any and all required permits and the payment of any required charges or fees, Permittee shall be granted the right to connect to any and all storm drains, sanitary sewers and/or water and utility outlets as shall be available and/or provided to service the Premises. 3. The construction/installation of any and all connections to any and all utility systems, including, without limitation, water service lines and associated fixtures, piping, plumbing and hardware, sewer connector lines, and storm drain inlets, feeder lines, etc., shall be the obligation of Permittee at Permittee's own cost and expense. 4. City shall not be liable to Permittee for any interruption in or curtailment of any utility service, nor shall any such interruption or curtailment constitute a constructive eviction or grounds for rental abatement in whole or in part hereunder. B. Outside Storage: Except for operational vehicles directly related to the business in regular use within, upon, to and from the Premises, no materials, supplies, products, equipment or other personal property shall be stored outside of buildings or structure. C. Disposable Waste: 1. Solid Waste: Permittee, at Permittee's own cost and expense, shall provide a complete and proper arrangement, in compliance with all ordinances of City, for the adequate, sightly, sanitary handling and disposal, away from FCH, of all solid waste caused as a result of any and all activities conducted on the Premises. Permittee shall provide and use suitable covered receptacles for discarded machinery or parts and any other solid commercial and/or industrial wastes DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA and/or other refuse. The area in which said waste receptacles are stored shall be kept clean and free of all trash and debris. The temporary piling of boxes, cartons, barrels or other similar items, in an unsightly manner, on or about the Premises, pending removal and disposal thereof, is prohibited. 2. Liquid Waste: Permittee shall at all times comply with any and all applicable laws, ordinances, rules, regulations or orders of any and all governmental agencies having jurisdiction over storage, transport, treatment or disposal of liquid waste; and Permittee agrees that it shall neither conduct nor suffer or permit the conducting of any activity(ies) in/on the Premises which shall be in violation thereof, and Permittee shall ensure that no untreated liquid waste, from any type of operation/activity conducted/engaged in on the Premises, is allowed to enter any storm drainage system, sanitary sewer system, and/or aquifer. D. Control of Hazards and Nuisances: Permittee shall, at all times, keep the Premises and each and every part thereof in a neat, clean and orderly condition, and shall prevent the accumulation of, and shall maintain said Premises free from, any refuse or waste materials which might be or constitute a potential health, environmental, or fire hazard or public or private nuisance. Permittee shall neither conduct nor suffer or permit the conducting of any activity on the Premises which either directly or indirectly produces objectionable or unlawful amounts or levels of air pollution (gases, particulate matter, odors, fumes, smoke, dust, etc.); water pollution; light, glare, or heat; electronic and/or radio emissions interfering with any navigational or communications facilities/operations associated with the operation of the airport and/or its use by aircraft; trash or refuse accumulation; or any other activity/operation which is hazardous or dangerous by reason or risk of explosion, fire or harmful emission. Section 4.4 Permittee's Responsibility Regarding Hazardous Substances 1. Definition: The term "Hazardous Substances", as used in this Lease, shall include, without limitation, flammables, explosives, radioactive materials, asbestos, polychlorinated biphenyls (PCBs), chemicals known to cause cancer or reproductive toxicity, pollutants, contaminants, hazardous wastes, toxic substances or related materials, petroleum and petroleum products, and substances declared to be hazardous or toxic under any law or regulation now or hereafter enacted or promulgated by any governmental authority. 2. Restrictions: Permittee shall not cause or permit to occur: a. Any violation of any federal, state, or local law, ordinance, or regulation now or hereafter enacted, related to environmental conditions in, on, under or about the Premises, or arising from Permittee's use(s) or occupancy(ies) thereof, including, but not limited to, soil and ground water conditions; or 6 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE411013213CA b. The use, generation, release, manufacture, refining, production, processing, storage, or disposal of any Hazardous Substance in, on, under or about the Premises, or the transportation to or from the Premises of any Hazardous Substance, except where Airport's advance written consent to any such use, generation, release, manufacture, refining, production, processing, or storage shall have been requested in writing and received by Permittee. Any and all such consents of Airport shall be deemed given subject to and conditioned upon Permittee's fully and faithfully complying with any and all federal, state, or local statutes, laws, ordinances, rules and/or regulations, now or hereafter enacted, applicable to the use, generation, manufacture, refining, production, processing, transport, transfer, storage, and/or sale of that/those Hazardous Substances to which any such consent of Airport may, in any way whatsoever, be deemed to apply. c. City's consent/approval shall not be required for the use, storage and disposal of materials/supplies containing hazardous substances where such materials/supplies shall be lawfully available to BOTH the general public and Permittee through commercial retail outlets so long as: Such materials/supplies are NOT for "RESALE", are obtained periodically but frequently enough to preclude the storage of unreasonable quantities of such on the Premises, and are for use by Permittee or Permittee's employees, agents, representatives, contractors, or sub -contractors in the performance of Permittee's normal day-to-day and/or periodic housekeeping and routine, recurring maintenance activities on the Premises (e.g., commercial cleaning products [soaps/detergents/ solvents], furniture and floor waxes, landscape fertilizers, weed/pest killers, products normally used in the Permittee's industry, etc.); and ii. So long as the use, storage and disposal of any and all of such materials/supplies shall be in full compliance with any and all federal, state and local statutes, laws, ordinances, codes, rules and regulations applicable thereto now or hereafter enacted (including, without limitation, any and all Occupational Safety and Health statutes, laws, codes, rules and regulations of the Federal Government and the State of California). 3. Environmental Clean-up: a. Throughout the Term of this Lease, Permittee shall, at Permittee's cost and expense, comply with any and all federal, state and local statutes, laws, ordinances, codes, rules and regulations regulating the use, 10 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA generation, storage, transportation, or disposal of Hazardous Substances (Laws). b. Permittee shall, at Permittee's cost and expense, make all submissions to, provide all information required by, and comply with any and all requirements of any and all governmental authorities (the Authorities) under the Laws. c. Should any Authority or any court of competent jurisdiction demand that a cleanup plan be prepared and that a cleanup be undertaken because of any deposit, spill, discharge, or other release of Hazardous Substances that occurs during the term of this Lease, at, on, or from the Premises, or which arises at any time as a result of Permittee's use(s) or occupancy(ies) of the Premises, then Permittee shall, at Permittee's cost and expense, prepare and submit the required plans and all related bonds and other financial assurances and carry out all such cleanup plans in a timely manner. d. Permittee shall promptly provide all information regarding the use, generation, storage, transportation, or disposal of Hazardous Substances that is requested by City. If Permittee fails to fulfill any duty imposed under this Article within a reasonable period of time following service of proper notice, City may do so; and, in such case, Permittee shall cooperate with City in order to prepare any and all documents City deems necessary or appropriate to determine the applicability of the Laws to the Premises and Permittee's occupancy(ies) and/or use(s) thereof, and for compliance therewith, and Permittee shall execute any and all such documents promptly upon City's request. No such action by City and no attempt made by City to mitigate damages under any law shall constitute a waiver of any of Permittee's obligations under this Article. 4. Permittee's Obligations/Liabilities Surviving Expiration of Lease. Permittee's obligations and liabilities under this sub -section, shall survive the expiration of the Term of this Lease. 5. Airport Held Harmless: Permittee agrees to protect and hold harmless City, the Premises and any and all improvements located therein or thereon and any and all facilities appurtenant thereto and any and all other property(ies) located therein or thereon and any and all of City's interest(s) in and/or to said Premises, improvements, appurtenant facilities, and/or other property(ies), from any and all such taxes and assessments, including any and all interest, penalties and other expenses which may be imposed thereby or result therefrom, and from any lien therefor or sale or other proceedings to enforce payment thereof. 6. Permittee's Right to Appeal: Nothing within this Section of this Article shall be deemed to limit any of Permittee's rights to appeal any such levies and/or 11 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA assessments in accordance with the rules, regulations, laws, statutes, or ordinances governing the appeal process of the taxing authority(ies) making such levies and/or assessments. 7. Upon discovery, Permittee shall immediately give written notice to City of any hazardous or potentially hazardous conditions that arise. Any hazardous or potentially hazardous condition in the self-service general aviation fueling station and tank shall be corrected immediately upon receipt of written notice from the Director. At the direction of Director or designee, Permittee shall cease to operate defective self-service general aviation fueling station and tank until such hazardous or potentially hazardous condition is removed. ARTICLE 5 - FEES, BOOKKEEPING, AND AUDIT In consideration of the rights granted by City to Permittee pursuant to this Permit, Permittee shall pay to City Percentage Fuel Flowage Fees as stated in the Master Fee Schedule for the City of Fresno (MFS). Section 5.1 Fees A. Each month of the Term of this Permit, Permittee shall pay Fuel Flowage Fees for all fuel pumped from the Assigned Area. Permittee shall also submit to City, in a form and with detail satisfactory to City, a statement of gallons pumped during the preceding month from its operations at the Assigned Area upon which the monthly fee is computed. B. Fuel Flowage Fees. Amount of Fees: Subject to adjustment as provided herein, the Fuel Flowage Fee(s) to be paid by Permittee shall be as stated in the MFS, which shall be updated from time to time. Section 5.2 Late Payment Charge Should any installment of Concession Fees or other sums accruing to City under the provisions of this Permit, not be paid as and when due, there shall be due a late payment charge equal to the lesser of the maximum rate allowable by law or one and one-half percent (1.5%) per month on the total amount overdue for each month thereafter until such delinquent installment or other payment amount(s) shall be received by City. It is expressly stipulated that the amount of the above said late payment charge may, at any time and from time to time during the life of this Permit, be changed by action of the Fresno City Council (Council) when, in said Council's opinion, economic conditions and/or other relevant facts and/or circumstances may reasonable warrant such action. Nothing herein contained shall be deemed, in any way whatsoever, to relieve Permittee from payment of fees, and/or other sums at the time and in the manner herein provided. 12 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA Section 5.3 Maintenance of Booms and Records Permittee shall prepare and keep for a period of not less than three (3) years following the end of each month, during the Term hereof, full, complete and proper books, records and accounts of transactions occurring in connection with Permittee's operation at Airport and shall make these documents available for inspections and audits by City or its designated representatives during such times provided that any such inspection and audit shall be made by City during Permittee's regular business hours. Permittee shall keep and maintain complete and adequate books and records of all its gross sales and shall file and maintain all invoices and records in such a manner that provides easy and accurate accountability by City of all gross sales generated by Permittee pursuant to this Permit and in accordance with generally accepted accounting principles. Section 5.4 Written Reports Permittee shall submit to City, on or before the fifteenth (15th) day of each month during the Term of this Permit (and the fifteenth (15th) day of the month following the expiration or termination of this Permit), a written statement signed by Permittee and certified to be true and correct, showing in reasonable detail the amount Permittee's Fuel Flowage Fees during the preceding month. Section 5.5 Final Report Permittee shall submit to City by the ninetieth (90th) day following the expiration or termination of this Permit, a final audited report of Permittee's Gross Receipts for the Term of this Permit (including a breakdown of monthly gross sales), certified by Permittee's chief financial officer to be a true and accurate reporting of all Fuel Flowage Fees. Section 5.6 Cash and Record Handlinq Requirements Internal Controls. Permittee shall maintain an internal control structure designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized uses, that transactions are executed in accordance with management's authority, and that the financial records are reliable. The internal control structure shall be supported by the selection, training and development of qualified personnel by an appropriate segregation of duties, and by the dissemination of written policies and procedures. Section 5.7 Property and Regulatory Taxes, Assessments and Fees Permittee shall pay promptly when due all taxes, assessments, license and permit fees, and any penalties thereon, imposed upon Permittee or City by any governmental agency having the direct or indirect power to tax, assess or impose such and arising out of, resulting from or relating to Permittee's operations at FCH including, without limitation, the payment of all taxes and assessments on the improvements, alterations, 13 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA machines, equipment, and other personal property of Permittee installed by Permittee at Airport, whether assessed to Permittee or assessed to City with the real property. At all times hereunder Permittee shall keep the Assigned Area from all liens, encumbrances, and security interest.' Permittee acknowledges and agrees that any interest in real property which exists as a result of possession, exclusive use, or a right to possession or exclusive use of any real property (land and/or improvements located therein or thereon) which is owned by the City is a taxable possessory interest, unless the possessor of interest in such property is exempt from taxation. With regard to any possessory interest to be acquired by Permittee, Permittee, by its signature(s) hereunto affixed, warrants, stipulates, confirms, acknowledges and agrees that, prior to its executing this Permit, Permittee either took a copy hereof to the office of the Fresno County Tax Assessor or by some other appropriate means, independent of City or any employee, agent or representative of City determined, to Permittee's full and complete satisfaction, how much Permittee shall be taxed, if at all. Section 5.8 Place of Payment All fees shall be paid to City at the address shown below or at such place or places at which City may be in writing direct the payment thereof from time to time during the Term hereof. City of Fresno, Airports Division Accounting Department 4995 E. Clinton Way Fresno, CA 93727 ARTICLE 6 - STANDARDS OF SERVICE Section 6.1 Purpose Permittee shall use the Assigned Area only for the purpose of operating self-service general aviation fueling station and tank as described in Exhibit "A" attached to this Permit and incorporated herein. Section 6.2 Standards of Operation In its use of the Assigned Area, Permittee shall maintain the highest degree and standards of service to meet the needs of the traveling public and will ensure courteous, 1 Any interest in real property which exists as a result of possession, exclusive use, or a right to possession or exclusive use of any real property (land and/or improvements located therein or thereon) which is owned by the City of Fresno (City) is a taxable possessory interest unless the possessor of interest in such property is exempt from taxation. With regard to any possessory interest to be acquired by Concessionaire under this Permit, Concessionaire, by its signatures hereunto affixed, warrants, stipulates, confirms, acknowledges and agrees that, prior to executing this Permit, Concessionaire either took a copy of this Permit to the office of the Fresno County Tax Assessors or by some other appropriate means independent of City or any employee, agent, or representative of City determined, to Concessionaire's full and complete satisfaction, how much Concessionaire will be taxed, if at all. 14 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA polite and inoffensive conduct and demeanor on the part of all employees. Permittee shall at all times during the Term of this Permit strictly comply with the following conditions and requirements; A. Conduct and Appearance of Employees. Permittee shall control the conduct, demeanor and appearance of each of its employees at FCH, and, upon objection from City concerning the conduct, demeanor or appearance of any employee, Permittee shall forthwith take all steps necessary to correct or to remove the cause of the objection. B. Clothing of Employees, Permittee shall require all employees to wear clean and neat clothing. C. Interference With Utilities or EmergencyEme[genpy Procedures. Permittee shall not do or permit to be done anything which may interfere with the effectiveness or accessibility of utility, heating, ventilating or air conditioning systems or portions thereof, nor do or permit to be done anything which may interfere with free access and passage or hinder police, fire fighting or other emergency personnel in the discharge of their duties at Airport or the public areas or the streets and sidewalks adjacent thereto. D. Interference With Exits. Permittee shall not do or permit to be done anything which may interfere with the effectiveness or accessibility to the leased premises or elsewhere at Airport, including lines, pipes, wires, conduits and equipment connected with or appurtenant thereto. E. Equipment Maintenance. Permittee shall maintain any and all Permittee's equipment, including but not limited to self-service general aviation fueling station and tank, in a neat, clean, orderly and operable condition at all times during the Term of this Permit. Section 6.3 Compatible Use Permittee hereby acknowledges that the principal use of FCH consists of the operation of a public airport and that all other operations and businesses which are now or hereafter permitted by City, including Permittee's use of the Assigned Area for the activities authorized hereunder, must be at all times compatible with such principal use, as City shall determine, in its sole discretion. ARTICLE 7 - INDEMNIFICATION, EXEMPTION OF CITY, AND INSURANCE Section 7.1 Indemnification To the furthest extent allowed by law, Permittee shall indemnify, hold harmless and defend City, and its officers, officials, employees, agents, and volunteers (hereinafter referred to collectively as "City") from any and all loss, liability, fines, 15 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage, including damage by fire or other casualty) incurred by City, Permittee or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of Permittee's: (i) occupancy, maintenance and/or use of the Premises; (ii) use of all or any part of the Airport, including use of any public airport facilities and improvements, upon which the Premises is located; or (iii) performance of, or failure to perform, this Permit. Permitee's obligations under the preceding sentence shall apply to any negligence of CITY, but shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or by the willful misconduct, of City. If Permittee should contract any work on the Premises or subcontract any of its obligations under this Permit, Permittee shall require each consultant, contractor and subcontractor to enter into a side agreement, at the discretion of the City's Risk Manager or designee, to indemnify, hold harmless and defend City, and its officers, officials, employees, agents, and volunteers in accordance with the terms of the preceding paragraph. Permittee's occupancy, maintenance and use of the Premises shall be at Permittee's sole risk and expense. Permittee accepts all risk relating to Permittee's: (i) occupancy, maintenance and/or use of the Premises; (ii) use of all or any part of that Premises, including use of any public facilities and improvements, upon which the Premises is located; and (iii) the performance of, or failure to perform, this Permit. City shall not be liable to Permittee or Permittee's insurer(s) for, and Permittee and its insurer(s) hereby waives and releases City from, any and all loss, liability, fines, penalties, forfeitures, costs or damages resulting from or attributable to an occurrence on or about the Premises including any public facilities and improvements, upon which the Premises is located, in any way related to the Permittee's operations and activities. Permittee shall immediately notify City of any occurrence on the Premises including any public facilities and improvements, upon which the Premises are located, resulting in injury or death to any person or damage to property of any person. This section shall survive termination or expiration of this Permit. Section 7.2 Exemption Of City City shall not be liable for, and is hereby released from, any and all liability to Permittee, Permittee's insurance carrier(s), or to any person claiming under or through Permittee, for any loss or damage to Permittee's business or any loss of income therefrom or for damage to the goods, wares, merchandise, or other property located in, upon, or about Airport under authority hereof, whether belonging to Permittee, or any employee, agent, contractor, subcontractor of Permittee, or any other person whomsoever; nor shall City be liable for any injury to the person of Permittee or Permittee's employees, agents, contractors, subcontractors, customers, or invitees, whether or not such loss, damage, 16 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA or injury is caused by or results from fire, steam, electricity, gas, water, or rain, or from the leakage, breakage, obstruction, or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning, or lighting fixtures, or from any other cause, whether or not such loss, damage or injury results from conditions arising in or on any part or all of the Premises utilized by Permittee, or in or on any of the improvements and facilities appurtenant thereto, or from other sources or places, and regardless of whether or not the cause of such damage or injury or the means of repairing the same is inaccessible to Permittee. Further, Permittee shall be solely responsible for the safety and security of each and every area within the Premises utilized by Permittee and the safety and security of all equipment, supplies, and commodities used or sold by Permittee (City shall have no liability or responsibility whatsoever in this regard and Permittee shall make no claim against City with respect to such matters). Permittee also covenants and agrees that City shall not be liable for any damages arising from any act or neglect on the part of any third parties. Section 7.3 Insurance (a) Throughout the life of this Permit, Permittee shall pay for and maintain in full force and effect all insurance as required herein with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated no less than "A-VII" in the Best's Insurance Rating Guide, or (ii) as may be authorized in writing by City's Risk Manager or designee at any time and in his/her sole discretion. The City of Fresno and each of its officers, officials, employees, agents, and volunteers (hereinafter referred to collectively as "City") requires policies of insurance as stated herein shall maintain limits of liability of not less than those amounts stated therein. However, the insurance limits available to City, shall be the greater of the minimum limits specified therein or the full limit of any insurance proceeds to the named insured. (b) If at any time during the life of the Permit or any extension, Permittee or any of its subcontractors fail to maintain any required insurance in full force and effect, all services and work under this Permit shall be discontinued immediately, and all payments due or that become due to Permittee shall be withheld until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to City. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Permit. No action taken by City pursuant to this section shall in any way relieve Permittee of its responsibilities under this Permit. The phrase "fail to maintain any required insurance" shall include, without limitation, notification received by City that an insurer has commenced proceedings, or has had proceedings commenced against it, indicating that the insurer is insolvent. (c) The fact that insurance is obtained by Permittee shall not be deemed to release or diminish the liability of Permittee, including, without limitation, liability under the indemnity provisions of this Permit. The duty to indemnify City shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Permittee. Approval or purchase of any insurance contracts or policies shall in no 17 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110626CA way relieve from liability nor limit the liability of Permittee, vendors, suppliers, invitees, contractors, subcontractors, or anyone employed directly or indirectly by any of them. Coverage shall be at least as broad as: 1. The most current version of Insurance Services Office (ISO) Commercial General Liability Coverage Form CG 00 01, providing liability coverage arising out of your business operations. The Commercial General Liability policy shall be written on an occurrence form and shall provide coverage for "bodily injury," "property damage" and "personal and advertising injury" with coverage for premises and operations (including the use of owned and non -owned equipment), products and completed operations, and contractual liability (including, without limitation, indemnity obligations under the Permit) with limits of liability not less than those set forth under "Minimum Limits of Insurance." 2. The most current version of ISO *Commercial Auto Coverage Form CA 00 01, providing liability coverage arising out of the ownership, maintenance or use of automobiles in the course of your business operations. The Automobile Policy shall be written on an occurrence form and shall provide coverage for all owned, hired, and non - owned automobiles or other licensed vehicles (Code 1- Any Auto). If personal automobile coverage is used, the City, its officers, officials, employees, agents, and volunteers are to be listed as additional insureds. 3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. 4. Pollution Liability for environmental liability coverage for operators and/or Contractors Pollution Liability for any contractors for any pollution events. Coverage should include coverage for Underground Storage Tanks. Throughout the life of this Agreement, Lessee shall pay for and maintain in full force and effect all policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than "A-VII" in Best's Insurance Rating Guide, or (ii) authorized by City's Risk Manager or his/her designee. The following policies of insurance are required: (i) AVIATION/AIRPORT OR GENERAL LIABILITY insurance which shall be at least as broad as Insurance Services Office (ISO) form CG 00 01 and shall include coverage for "bodily injury", "property damage" and "personal and advertising injury", including premises and operation, hangarkeepers legal liability, products and completed operations, and contractual liability (including, without limitation, indemnity obligations under this Lease), with limits of liability of not less than $2,000,000 per occurrence for bodily injury and property damage, $2,000,000 per occurrence for personal and advertising injury, $4,000,000 aggregate for products and completed operations and $4,000,000 general aggregate. Lessee may substitute Airport Liability insurance for this insurance is DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA provided the coverage is as broad as required and the limits of liability are not less than required. (ii) AIRCRAFT HULL AND LIABILITY insurance shall include coverage for bodily injury to passengers and non -passengers, property damage and cargo legal liability with combined single limits of liability of not less than $1,000,000 per occurrence and aggregate for bodily injury, property damage and cargo legal liability for fixed wing aircraft and $1,000,000 per occurrence and aggregate for bodily injury, property damage and cargo legal liability for rotorcraft. (iii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at least as broad as the most current version of Insurance Service Office (ISO) Business Auto Coverage Form CA 00 01, and include coverage for all owned, hired, and non -owned automobiles or other licensed vehicles (Code 1 - Any Auto) with limits of liability of not less than $1,000,000 per accident for bodily injury and property damage. (iv) WORKERS' COMPENSATION insurance as required under the California Labor Code. (iv) EMPLOYERS' LIABILITY insurance with limits of liability of not less than $1,000,000 each accident, $1,000,000 disease policy limit and $1,000,000 disease each employee. (v) PROPERTY INSURANCE against all risk of loss to any tenant improvement or betterments, at full replacement cost with no coinsurance penalty provision. (vi) POLLUTION LEGAL LIABILITY with coverage for bodily injury, property damage or pollution clean-up costs that could result from of pollution condition, both sudden and gradual. Coverage is required to include underground storage tanks, including a discharge of pollutants brought to the work site, a release of pre-existing pollutants at the site, or other pollution conditions with limits of liability of not less than the following: (i) $1,000,000 per occurrence or claim; and, (ii) $2,000,000 general aggregate per annual policy period. In the event this Agreement involves the transportation of hazardous material, either the Commercial Automobile policy or other appropriate insurance policy shall be endorsed to include Transportation Pollution Liability insurance covering materials to be transported by LESSEE pursuant to the Agreement. 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA UMBRELLA OR EXCESS INSURANCE In the event LESSEE purchases an Umbrella or Excess insurance policy(ies) to meet the "Minimum Limits of Insurance," this insurance policy(ies) shall "follow form" and afford no less coverage than the primary insurance policy(ies). In addition, such Umbrella or Excess insurance policy(ies) shall also apply on a primary and non- contributory basis for the benefit of the CITY, its officers, officials, employees, agents and volunteers. A. Lessee shall be responsible for payment of any deductibles contained in any insurance policies required hereunder and Lessee shall also be responsible for payment of any self -insured retentions. Any deductibles or self -insured retentions must be declared to, and approved by, the City's Risk Manager or his/her designee. At the option of the City's Risk Manager or his/her designee, either (i) the insurer shall reduce or eliminate such deductibles or self -insured retentions as respects City, its officers, officials, employees, agents and volunteers; or (ii) Lessee shall provide a financial guarantee, satisfactory to City's Risk Manager or his/her designee, guaranteeing payment of losses and related investigations, claim administration and defense expenses. At no time shall City be responsible for the payment of any deductibles or self -insured retentions. B. All policies of insurance required hereunder shall be endorsed to provide that the coverage shall not be cancelled, non -renewed, reduced in coverage or in limits except after 30 calendar day written notice has been given to City. Upon issuance by the insurer, broker, or agent of a notice of cancellation, non -renewal, or reduction in coverage or in limits, Lessee shall furnish City with a new certificate and applicable endorsements for such policy(ies). In the event any policy is due to expire during this Agreement, Lessee shall provide a new certificate, and applicable endorsements, evidencing renewal of such policy not less than 15 calendar days prior to the expiration date of the expiring policy. C. The Airport Liability (or General Liability, if applicable), Aircraft Liability, Pollution and Automobile Liability insurance policies shall be written on an occurrence form and shall name City, its officers, officials, agents, employees and volunteers as an additional insured. Such policy(ies) of insurance shall be endorsed so Lessee's insurance shall be primary and no contribution shall be required of City. The coverage shall contain no special limitations on the scope of protection afforded to City, its officers, officials, employees, agents and volunteers. Any Workers' Compensation insurance policy shall contain a waiver of subrogation as to City, its officers, officials, agents, employees and volunteers. D. Lessee shall furnish City with all certificate(s) and applicable endorsements effecting coverage required hereunder. All certificates and applicable endorsements are to be received and approved by the City's Risk Manager or his/her designee prior to City's execution of the Agreement. Such evidence of insurance shall be provided City at the following address: 20 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA City of Fresno Airports Department 4995 E. Clinton Way Fresno, CA 93727 E. Upon request of City, Lessee shall immediately furnish City with a complete copy of any insurance policy required under this Contract, including all endorsements, with said copy certified by the underwriter to be a true and correct copy of the original policy. This requirement shall survive expiration or termination of this Agreement. F. Any failure to maintain the required insurance shall be sufficient cause for City to terminate this Lease. No action taken by City hereunder shall in any way relieve Lessee of its responsibilities under this Lease. G. The fact that insurance is obtained by Lessee shall not be deemed to release or diminish the liability of Lessee, including, without limitation, liability under the indemnity provisions of this Agreement. The duty to indemnify City and its officers, officials, employees, agents and volunteers shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by Lessee. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Lessee. H. Lessee and its insurers hereby waive all rights of recovery against City and its officers, officials, employees, agents and volunteers, on account of injury, loss by or damage to the Lessee or its officers, officials, employees, agents, volunteers, invitees, consultants, subconsultants, contractors and subcontractors, or its property or the property of others under its care, custody and control. Lessee shall give notice to its insurers that this waiver of subrogation is contained in this Agreement. This requirement shall survive termination or expiration of this Agreement. SUBCONTRACTORS - If LESSEE subcontracts any or all of the services to be performed under this Agreement, LESSEE shall require, at the discretion of the CITY Risk Manager or designee, subcontractor(s) to enter into a separate Side Agreement with the City to provide required indemnification and insurance protection. Any required Side Agreement(s) and associated insurance documents for the subcontractor must be reviewed and preapproved by CITY Risk Manager or designee. If no Side Agreement is required, LESSEE will be solely responsible for ensuring that its subcontractors maintain insurance coverage at levels no less than those required by applicable law and is customary in the relevant industry. 21 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA Any failure to maintain the required insurance, or to provide City with the required Certificates of Insurance, shall constitute a material default and breach of this Permit by Permittee. The limits of insurance obtained by Permittee pursuant to any of the provisions of this Section of this Article shall not, in any way whatsoever, be deemed to limit the liability of Permittee hereunder. If Permittee fails to obtain, pay for and maintain insurance as required under this Section, then City may, at its option, respond to any and all claims, demands for damages or suits arising out of Permittee's uses of Airport premises and/or Permittee's operations/activities under authority of this Permit, without waiving any of City's rights hereunder. Permittee shall provide such additional insurance as may from time to time be reasonably prescribed by City. ARTICLE 8 - ASSIGNMENT Section 8.1 City's Consent Permittee shall not voluntarily or by operation of law, assign or transfer all or any part of Permittee's rights under this Permit, without prior written consent of City, which consent shall not be unreasonably withheld or delayed. Any attempted assignment or transfer without such consent shall be wholly void. Without limiting the foregoing, for the purposes of this Section, if Permittee is a corporation, any transfer or other event which results in the reduction of the interest of the present stockholders of record to less than a majority of the voting stock of Permittee, or if Permittee is a partnership, any transfer of partnership interest (s) or other event which results in the reduction of the interest (s) of the present partners to less than a majority of interest in the partnership, shall be deemed an assignment for which City's consent is required. Section 8.2 No Release of Permittee No approved assignment or transfer by Permittee of its rights under this Permit shall release Permittee or relieve Permittee of its obligations to pay the Fuel Flowage Fees or any other consideration which Permittee is obligated to pay pursuant to this Permit or to perform any of its other obligations hereunder except as agreed by the City in writing. The acceptance by City of any payment from or performance by any other person shall not be deemed to be a waiver by City of any provision of this Permit, or consent to any assignment. Section 8.3 Liability of Assignees Each approved assignee or transferee of Permittee's rights under this Permit shall assume and be deemed to have assumed Permittee's obligations hereunder and shall be and remain liable jointly and severally with Permittee throughout the Term of this 22 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA Permit for (a) the payment of the Fuel Flowage Fees and all other consideration with Permittees is obligated to pay hereunder and (b) the full and timely performance of all of the obligations required to be performed by Permittee hereunder. Section 8.4 Sub -Uses of Assigned Area Permittee shall not allow sub -uses of any portion of and/or all of the Assigned Area, such is expressly prohibited. ARTICLE 9 - LICENCES AND PERMITS Permittee shall, at Permittee's cost and expense, obtain and maintain all licenses, permits, certificates or other authorizations of any governmental authority having jurisdiction including, but not limited to, the FAA, which may be necessary for the lawful conduct of the activities authorized hereunder. ARTICLE 10 - SUBORDINATE TO RIGHTS OF AND PERMITS WITH UNITED STATES This Permit shall be subordinate to the provisions and requirements of the existing or future Permit between City and the United States relative to the development, operation or maintenance of FCH. This Permit and all the provisions hereof shall be subject to whatever right the United States Government now has, or in the future may have or acquire, affecting the control, operation or regulation of FCH, or the exclusive or non- exclusive use of FCH, by the United States during the time of war or national emergency. ARTICLE 11 - FEDERAL AVIATION AGENCY RESTRICTIONS It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of any exclusive right within the meaning of Section 308 (a) of the Federal Aviation Act of 1958. Permittee shall use reasonable precautions to prevent unauthorized persons from gaining access through the Assigned Area to restricted flight and aircraft operational areas. Permittee shall comply with Part 107 of the Federal Aviation Regulations and successor provisions set out at 49 C.F.R. Ch. XII, Subchapter A, Section 1542.1 et seq., as they exist as of the commencement date of the term hereof or may exist at any time during the life hereof, as they relate to Permittee's operations at FCH. ARTICLE 12 - DEFAULTS AND REMEDIES Section 12.1 Defaults By Permittee Any of the following shall constitute an event of Default under this Permit: A. The filing of any petition, proceeding or action by, for or against Permittee under any insolvency, bankruptcy or reorganization act or law, where such filing continues undismissed for a period of thirty (30) days; 23 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA B. An assignment by Permittee for the benefit of creditor, or the appointment of a receiver, guardian, conservator, trustee, assignee or any similar person to take charge of all or any part of Permittee's property, when such assignment or appointment is not vacated within thirty (30) days; C. Failure to pay any monthly Fuel Flowage Fee payments pursuant to this Permit, when due and payable, when such failure to pay continues for a ten (10) day after written notice thereof; D. Failure to remedy any Default in the performance of any other obligations required to be performed by Permittee pursuant to this Permit, within a period of thirty (30) days after written notice of such default (or, in the event the default is of such a nature as to reasonably require more than thirty (30) days to cure, if Permittee shall fail to commence said cure within said time and thereafter diligently prosecute the same to completion). Section 12.2 Cites Remedies A. Termination of Permit. Upon the occurrence of any event of Default, City, at its option and election, and without further demand or notice, shall have the right to declare this Permit ended and terminated by providing written notice thereof to Permittee at any time after the expiration of any notice and cure periods provided hereunder. No delay in providing such notice of termination shall be deemed a waiver of City's right to terminate this Permit. B. Possession of Permittee's Property_. In the event of Default, all furniture, equipment, carts, machines and other personal property of Permittee shall remain at the Assigned Area, and City shall have the right, but not the obligation, to take exclusive possession of same and to use same, without cost to City, until all defaults are cured or to require Permittee to remove same. C. Performance of Covenants by City. In the event, Permittee Defaults hereunder City may, but shall not be obligated to, immediately or at any time thereafter, without further notice or demand and without waiver or releasing Permittee from any obligation of a Permittee, make such payment or perform such other act for the account of Permittee, to the extent City may deem desirable. In connection therewith, City may pay expenses and employ counsel in instituting, prosecuting or defending any action or proceeding under this Permit. All sums so paid by City and all expenses incurred in connection therewith shall be deemed additional consideration hereunder and shall be paid by Permittee to City upon demand. In the event, such additional amounts remain unpaid, City shall have the same rights and remedies as for the nonpayment of any Fuel Flowage Fee payment or other consideration required to be paid by Permittee pursuant to this Permit. D. Cumulative Remedies. The various rights, option, elections, powers, and remedies reserved to City herein shall be cumulative, and, except as otherwise 24 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA provided by statute, City may pursue any or all such rights and remedies, whether at the same time or otherwise, and no single right shall be deemed to be exclusive of any of the others or of any right or priority allowed by law or in equity. No delay or omission of City to exercise any right or remedy shall be construed as a waiver of any such right or remedy or waiver of any default by Permittee. In addition to the foregoing, City may exercise any other remedy now or hereafter available under the laws of the State of California. E. Subsequent Obligations. City shall be under no obligation to observe or perform any covenant of this Permit on its part to be observed or performed for the benefit of Permittee, which accrues after the date of any Default by Permittee. Section 12.3 Default of City City shall not be deemed to be in Default in the performance of any obligation required to be performed by it hereunder unless and until it has failed to perform such obligation within thirty (30) days after written notice by Permittee to City specifying wherein City has failed to perform such obligation; provided, however, in the event that the nature of City's obligation is such that more than thirty (30) days are required for its performance, City shall not be deemed to be in Default if it shall commence such performance within such thirty (30) day period and thereafter shall diligently prosecute the same to completion. Section 12.4 Permittee's Remedies A. Termination of Permit. Upon the occurrence of any event of Default, Permittee, at its option and election, and without further demand or notice, shall have the right to declare this Permit ended and terminated by providing written notice thereof to City at any time after the expiration of any notice and cure periods provided hereunder. No delay in providing such notice of termination shall be deemed a waiver of Permittee's right to terminate this Permit. B. Cumulative Remedies. The various rights, option, elections, powers, and remedies reserved to Permittee herein shall be cumulative, and, except as otherwise provided by statute, City may pursue any or all such rights and remedies, whether at the same time or otherwise, and no single right shall be deemed to be exclusive of any of the others or of any right or priority allowed by law or in equity. No delay or omission of Permittee to exercise any right or remedy shall be construed as a waiver of any such right or remedy or waiver of any Default by Permittee. In addition to the foregoing, Permittee may exercise any other remedy now or hereafter available under the laws of the State of California. C. Subseguent Obligations. Permittee shall be under no obligation to observe or perform any covenant of this Permit on its part to be observed or performed for the benefit of City, which accrues after the date of any Default by City. 25 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE411062BCA ARTICLE 13 - REMOVAL OF PERMITTEE'S PROPERTY AT END OF TERM Subject to the provisions of Section 3.6, upon the expiration or other termination of this Permit, Permittee shall remove all credit card processing equipment and other personal property from the Assigned Area and shall promptly repair any damages to the Assigned Area caused by such removal. The self-service fuel tank shall remain the property of City at all times. Permittee's obligation to perform this covenant shall survive the expiration or other termination of this Permit. ARTICLE 14 - TRANSFER OF CITY'S INTEREST In the event of any transfer of City's interest in FCH, the transferor shall be automatically relieved of any and all obligations and liabilities accruing from and after the date of such transfer. ARTICLE 15 - MISCELLANEOUS Section 15.1 FAA Grant Permit Assurances Those certain sixteen (16) numbered provisions set forth within Section "B", "Assurances" of Exhibit "B", "Assurances Required by the Federal Aviation Administration", attached hereto and made a part hereof, are specific provisions required by the FAA to be appropriately included within all Permits (including, without limitations, leases, licenses, permits, and contracts) between City and any and all persons and/or entities who use or perform work or conduct activities on City -owned airport premises for aeronautical or non -aeronautical purposes. Permittee, by its signature (s) hereunto affixed, acknowledges that is has reviewed the aforesaid Exhibit, in its entirety, and fully understands the meaning, purpose, and intent thereof. Permittee expressly agrees that, throughout the Term hereof, it shall fully and faithfully comply with, abide by and/or adhere to, as applicable and appropriate, each and every one of the numbered provisions contained within Section "B", "Assurance", of said Exhibit (as said numbered provisions are reflected therein or as same may be amended, from time to time, during the Term hereof, by City, as and when the FAA's requirements thereon imposed may so dictate), which, pursuant to the guidelines established within paragraphs 2 through-4 of Section "A" of said Exhibit, shall either be applicable to Permittee on the start date of the Term hereof or which, as a result of changing facts and/or circumstances, shall subsequently become applicable to Permittee, hereunder, during the Term hereof. Section 15.2 Required Accessibility Disclosure A Certified Access Specialist (CASp) can inspect the Assigned Area and determine whether the Assigned Area comply with all of the applicable construction -related accessibility standards under state law. Although state law does not require a CASp inspection of the Assigned Area, the commercial property owner or City may not prohibit the Permittee from obtaining a CASp inspection of the Assigned Area for the occupancy or potential occupancy of the Permittee, if requested by the Permittee. The parties shall 26 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making any repairs necessary to correct violations of construction -related accessibility standards within the Assigned Area. Section 15.3Incorporation of Prior Permit Amendments This Permit contains the entire Permit between the parties hereto with respect to the subject matter hereof, and no prior Permit or understanding shall be effective for any purpose. No provision of this Permit may be amended or added to, except by a Permit in writing signed by the parties hereto or their respective successors in interest. Section 15.4No Representations by City Permittee acknowledges that neither City nor any employee of City has made any representations or promises with respect to the Assigned Area or the other areas of FCH, except as herein expressly set forth. Permittee acknowledges that it has not executed this Permit in reliance upon any representations or promises of City or any employee of City with respect thereto, and that Permittee has made its own independent examination thereof. Section 15.5Examination of Permit Submission of this Permit for examination or signature by Permittee does not constitute a reservation of or option for a concession Permit, and this Permit is not effective as a Permit or otherwise until execution and delivery by both City and Permittee. Section 15.6Relationship Between Parties Nothing contained in this Permit shall be construed to create the relationship of principal and agent, partnership, joint venture or any other relationship between the parties hereto, other than the relationship of City and independent contractor. Section 15.7 Waivers The waiver by either party of any provision of this Permit shall not be deemed to be a waiver of any other provision hereof or of any subsequent breach of any other provision hereof or of any subsequent breach of the same of any other provision. City's consent to any act by Permittee requiring City's consent shall not be deemed to render unnecessary the obtaining of City's consent to any subsequent act by Permittee, whether or not similar to the act so consented. The subsequent acceptance by City of any Concession Fee payment or other consideration required to be paid by Permittee under this Permit shall not be deemed to be a waiver of any preceding breach by Permittee of any provision of this Permit, other than the failure of Permittee to pay the particular fee so accepted, regardless of City's knowledge of such preceding breach at the time of acceptance of such payment. 27 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA Section 15.8 Successors and Assigns The provisions contained in this Permit shall bind and inure to the benefit of City and Permittee and, except as otherwise provided in this Permit, their respective successors and assigns. Section 15.9 Rules and Regulations Permittee shall comply with all uniform rules and regulations established by City for use of the Assigned Area or the other areas of FCH as the same may be amended from time to time by City. City shall not be responsible to Permittee for the nonperformance by any tenant, permittee, invitee or other permittee of City of any of said rules and regulations. Section 15.10 Notices All notices required to be served by City and Permittee; one upon the other, under the terms of this Permit shall be in writing. A. Permittee's Address for Notices. All notices or demands of any kind of which City shall have cause to serve upon Permittee under the terms of this Permit shall be served upon Permittee by mailing a copy thereof by certified or registered mail, return receipt requested, to Permittee at the address shown below or to such other address as Permittee may, from time to time, specify to City in writing. Flight Level Aviation Attn.: Justin Zaklan 524 W. Kearney Blvd. Fresno, CA 93706 B. City's Address for Notices. All notices or demands of any kind which Permittee shall have cause to serve upon City under the terms of this Permit shall be served upon City by mailing a copy thereof by certified or registered mail, return receipt requested, to City at the address shown below or to such other address as City may, from time to time, specify to Permittee in writing. City of Fresno — Airports Department Attn: "Properties Manager" 4995 E. Clinton Way Fresno, CA 93727 C. Time and Date of Service. In the event of any service of notice or demand by mail, as aforesaid, such notice or demand shall be deemed to have been sufficiently served as of 12:00:01 A.M., on the fourth (4th) calendar day following the date of deposit in the United States mail of such certified or registered mail properly addressed and postage prepaid. N: DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA Section 15.11 Headings The Section headings contained in this Permit are for convenience only and shall have no effect in the construction or interpretation of any provision hereof. Section 15.12 Governing Law This Permit shall be construed, interpreted and applied pursuant to the laws of the State of California, and exclusive venue in any and all actions arising under this Permit shall be laid in the Judicial District of Fresno County, California. Section 15.13 Time of Essence Time is of the essence of this Permit. Section 15.14 Attorney's Fees and Costs In the event, of any action or proceeding to construe or enforce any provision of this Permit, the prevailing party in such action or proceeding shall be entitled to recover its costs, and reasonable attorneys' fees. Section 15.15 Holding Over In the event, Permittee shall remain in possession of the Assigned Area or any part thereof following the end of the Term of this Permit, and thus hold -over the Term hereof with or without the express written consent of City, such holding -over occupancy shall be a tenancy from month -to -month only, terminable by either party hereto upon service of a minimum of thirty (30) days advance written notice upon the other party. During any holding -over month -to -month tenancy period, Permittee shall pay to City all fees required by this Permit at the rates in effect as of the date immediately preceding the date on which such month -to -month tenancy commences. Unless herein elsewhere provided, any holding -over by Permittee shall be subject to all the terms and conditions of this Permit. Section 15.16 Redelivery Upon the expiration of the Term of this Permit, or upon earlier termination as provided in this Permit, Permittee shall have no further interest in the Assigned Area or the rights granted herein, and Permittee shall deliver up the Assigned Area to City in as good order and condition as when received, except for reasonable wear and tear. Section 15.17 Disadvantaged Business Enterprise Plan (DBE1 City's DBE Plan: City has developed and maintains a "Disadvantaged Business Enterprise Concession Plan" for Airport in accordance with U.S. Department of Transportation regulations 49 CFR Part 23, Subpart F, and Part 26, which plan establishes policies and procedures designed to promote City's interest in establishing 29 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110I3213CA Airport concession opportunities for Disadvantaged Business Enterprises and sets lawful, realistic, and reasonable goals therefore. Non -Discrimination by Permittee (1) This Permit is subject to the requirements of the U.S. Department of Transportation's regulations 49 CFR Part 23, Subpart F, and Part 26. Permittee agrees that it will not discriminate against any business owner because of the owner's race, color, national origin, or gender in connection with the award or performance of any Permit covered by 49 CFR Part 23, Subpart F, and Part 26. (2) Permittee agrees to include the above statements in any Permit between Permittee and its subcontractors which is in any way related to, subsequent to, or derived from this Permit; and to cause the other parties to such Permit to similarly include the statements in further Permits. Definitions: The definitions set forth in 49 United States Code Section 2204(d) and in 49 Code of Federal Regulations, Subtitle A, Part 23 and Part 26, as such Code and Regulations existed on the commencement date hereof or as they may be amended from time to time during the Term hereof, are incorporated herein by reference. Section 15.18 Signs and Displays Permittee may place such signs and displays within the Assigned Area as are deemed appropriate to the business, providing that all such signs and displays shall be in good taste and be compatible with the decor of the Terminal Building, and further provided that all such sign or display installations shall be approved in advance by Director. In the event, of any complaint about any sign or display, Director shall have the authority to decide whether such sign or display is acceptable, and to require that such sign or display be removed, and Permittee agrees that Director's decision shall be binding, subject to any available appeal pursuant to the provisions of Chapter 1, Article 4, of the Fresno Municipal Code, or any other available recourse. Permittee agrees to abide by Director's decision pending any such appeal. Section 15.19 Interpretation of Provisions Nothing herein contained shall be construed or interpreted, in any manner whatsoever, as limiting, relinquishing or waiving any of the rights of ownership enjoyed by City in and to FCH property, or in any manner waiving or limiting City's control over the operation, maintenance, etc., of FCH property or in derogation of such governmental rights as City possesses, except as is specifically set forth herein. 30 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA Section 15.20 Invalid Provisions In the event, any term, covenant, condition or provision of this Permit, or the application thereof to any person, entity, or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, covenants, conditions or provisions of this Permit, or the application thereof to any person, entity, or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated, provided that such invalidity, voiding or unenforceability of such covenant, condition or provision does not materially prejudice either party in its respective rights and obligations contained in the then remaining valid covenants, conditions or provisions of this Permit. Section 15.21 Precedence of Documents In the event, of any conflict between the body of this Permit and any exhibit or attachment hereto, the terms and conditions of the body of this Permit shall control and take precedence over the terms and conditions expressed within the exhibit or attachment. Furthermore, any terms or conditions contained within any exhibit or attachment hereto which purport to modify the allocation of risk between the parties, provided for within the body of this Permit, shall be null and void. Section 15.22 Provision of Keys to City Permittee shall ensure that City is in possession of a functional key for each cart management unit installed at FCH at all times. Such key shall be used by the City and in the City's discretion to unlock a malfunctioning unit and manually release a cart in the event it does not release a cart automatically after payment of the rental fee, and Permittee's on -Airport employee is not available to immediately respond. Section 15.23 Counterparts This Permit may be executed in any number of counterparts and any party may execute any counterpart, each of which when executed and delivered will be deemed to be an original and all of which counterparts taken together will be deemed to be but one and the same instrument. The execution of this Permit by any party hereto will not become effective until counterparts hereof have been executed by all parties hereto. [Signatures on following page] 31 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA ARTICLE IX — SIGNATURES IN WITNESS WHEREOF, City has caused this Lease to be executed and issued by its Director of Aviation, and Lessee, by the signature(s) of its duly authorized officer(s) hereunto below affixed, has accepted this Lease and acknowledged and/or agreed to all of the terms, covenants, conditions, warranties, Permits, and provisions herein contained, as of the day and year first above written. CITY OF FRESNO A M "gjl1WndQQrporation By: (�tbiMpSbbt, 7/11/2022 Henry Thompson, A.A.E., IAP, Director of Aviation APPROVED AS TO FORM: RINA GONZALES, Inte' �Aorney By. Vm, 711112022 �06 Brandon M. Collet Date Supervising Deputy City Attorney ATTEST: TODD STERMER, CMC By. Deputy Address for Notice: City of Fresno Airports Department 4995 E. Clinton Way Fresno, CA 93727 Attachments — Exhibit A — Premises Map and Location Exhibit B — FAA Grant Assurances Exhibit C — Monthly Fuel Flowage Report Exhibit D — FCH Minimum Standards Exhibit E — Conflict of Interest FLIGHT LEVEL AVIATION, LLC. A C. rajgj pited Liability Company By: �llti, -�&LAQA, 7/11/2022 Name: s an Title: President and CEO (If corporation or LLC., must be CEO/President of BoardNice President of Board) By: Name: Title: (If corporation or LLC., must be CFO/Treasurer/Secretary Address for Notice: Flight Level Aviation Attn.: Justin Zaklan 524 W. Kearney Blvd. Fresno, CA 93706 32 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110626CA EXHIBIT "A" Y Z Q w U- m q � {• � 7! 54i . ri g w N- 0i O a Q \w F— U w X W w w J 0 Q 2 O Z U) W ly LL F- Z LL U. F- C LL U. 4 LL DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE411013213CA EXHIBIT "B" DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA ���p4 '4VI,4T �z FAA 7 z Airports a a 'NrsTR�� ASSURANCES AIRPORT SPONSORS A. General. These assurances shall be complied with in the performance of grant agreements for airport development, airport planning, and noise compatibility program grants for airport sponsors. 2. These assurances are required to be submitted as part of the project application by sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as amended. As used herein, the term "public agency sponsor" means a public agency with control of a public -use airport; the term "private sponsor" means a private owner of a public -use airport; and the term "sponsor" includes both public agency sponsors and private sponsors. 3. Upon acceptance of this grant offer by the sponsor, these assurances are incorporated in and become part of this Grant Agreement. B. Duration and Applicability. Airport development or Noise Compatibility Program Projects Undertaken by a Public Agency Sponsor. The terms, conditions and assurances of this Grant Agreement shall remain in full force and effect throughout the useful life of the facilities developed or equipment acquired for an airport development or noise compatibility program project, or throughout the useful life of the project items installed within a facility under a noise compatibility program project, but in any event not to exceed twenty (20) years from the date of acceptance of a grant offer of Federal funds for the project. However, there shall be no limit on the duration of the assurances regarding Exclusive Rights and Airport Revenue so long as the airport is used as an airport. There shall be no limit on the duration of the terms, conditions, and assurances with respect to real property acquired with federal funds. Furthermore, the duration of the Civil Rights assurance shall be specified in the assurances. 2. Airport Development or Noise Compatibility Projects Undertaken by a Private Sponsor. The preceding paragraph (1) also applies to a private sponsor except that the useful life of project items installed within a facility or the useful life of the facilities developed or equipment acquired under an airport development or noise compatibility program project shall be no less than ten (10) years from the date of acceptance of Federal aid for the project. 3. Airport Planning Undertaken by a Sponsor. Unless otherwise specified in this Grant Agreement, only Assurances 1, 2, 3, 5, 6, 13, 18, 23, 25, 30, 32, 33, 34, and 37 in Section C apply to planning projects. The terms, conditions, and Airport Sponsor Assurances 5/2022 Page 1 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110626CA assurances of this Grant Agreement shall remain in full force and effect during the life of the project; there shall be no limit on the duration of the assurances regarding Exclusive Rights and Airport Revenue so long as the airport is used as an airport. C. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this grant that: 1. General Federal Requirements It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance, and use of Federal funds for this Grant including but not limited to the following: FEDERAL LEGISLATION a. 49 U.S.C. subtitle VII, as amended. b. Davis -Bacon Act, as amended — 40 U.S.C. §§ 3141-3144, 3146, and 3147, et seq.' c. Federal Fair Labor Standards Act — 29 U.S.C. § 201, et seq. d. Hatch Act — 5 U.S.C. § 1501, et seq.Z e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. § 4601, et seq.' z f. National Historic Preservation Act of 1966 — Section 106 — 54 U.S.C. § 306108.' g. Archeological and Historic Preservation Act of 1974 — 54 U.S.C. § 312501, et seq.' h. Native Americans Grave Repatriation Act — 25 U.S.C. § 3001, et seq. i. Clean Air Act, P.L. 90-148, as amended — 42 U.S.C. § 7401, et seq. j. Coastal Zone Management Act, P.L. 92-583, as amended —16 U.S.C. § 1451, et seq. k. Flood Disaster Protection Act of 1973 — Section 102(a) - 42 U.S.C. § 4012a.' I. 49 U.S.C. § 303, (formerly known as Section 4(f)). m. Rehabilitation Act of 1973 — 29 U.S.C. § 794. n. Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252) (prohibits discrimination on the basis of race, color, national origin). o. Americans with Disabilities Act of 1990, as amended, (42 U.S.C. § 12101 et seq.) (prohibits discrimination on the basis of disability). p. Age Discrimination Act of 1975 — 42 U.S.C. § 6101, et seq. q. American Indian Religious Freedom Act, P.L. 95-341, as amended. r. Architectural Barriers Act of 1968, as amended — 42 U.S.C. § 4151, et seq.' s. Powerplant and Industrial Fuel Use Act of 1978 — Section 403 — 42 U.S.C. § 8373.' t. Contract Work Hours and Safety Standards Act — 40 U.S.C. § 3701, et seq.' u. Copeland Anti -kickback Act —18 U.S.C. § 874.' Airport Sponsor Assurances 5/2022 Page 2 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA v. National Environmental Policy Act of 1969 — 42 U.S.C. § 4321, et seq.' w. Wild and Scenic Rivers Act, P.L. 90-542, as amended —16 U.S.C. § 1271, et seq. x. Single Audit Act of 1984— 31 U.S.C. § 7501, et seq.Z y. Drug -Free Workplace Act of 1988 — 41 U.S.C. §§ 8101 through 8105. z. The Federal Funding Accountability and Transparency Act of 2006, as amended (P.L. 109-282, as amended by section 6202 of P.L. 110-252). aa. Civil Rights Restoration Act of 1987, P.L. 100-259. bb. Build America, Buy America Act, P.L. 117-58, Title IX. EXECUTIVE ORDERS a. Executive Order 11246 — Equal Employment Opportunity' b. Executive Order 11990 — Protection of Wetlands c. Executive Order 11998 — Flood Plain Management d. Executive Order 12372 — Intergovernmental Review of Federal Programs e. Executive Order 12699 — Seismic Safety of Federal and Federally Assisted New Building Construction' f. Executive Order 12898 — Environmental Justice g. Executive Order 13166 — Improving Access to Services for Persons with Limited English Proficiency h. Executive Order 13985 — Executive Order on Advancing Racial Equity and Support for Underserved Communities Through the Federal Government i. Executive Order 13988 — Preventing and Combating Discrimination on the Basis of Gender Identity or Sexual Orientation j. Executive Order 14005 — Ensuring the Future is Made in all of America by All of America's Workers k. Executive Order 14008 —Tackling the Climate Crisis at Home and Abroad FEDERAL REGULATIONS a. 2 CFR Part 180 — OMB Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement). b. 2 CFR Part 200— Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. 4,5 c. 2 CFR Part 1200 — Nonprocurement Suspension and Debarment. d. 14 CFR Part 13 — Investigative and Enforcement Procedures. e. 14 CFR Part 16 — Rules of Practice for Federally -Assisted Airport Enforcement Proceedings. f. 14 CFR Part 150—Airport Noise Compatibility Planning. Airport Sponsor Assurances 5/2022 Page 3 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110626CA 28 CFR Part 3S — Nondiscrimination on the Basis of Disability in State and Local Government Services. h. 28 CFR § 50.3 —U.S. Department of Justice Guidelines for the Enforcement of Title VI of the Civil Rights Act of 1964. i. 29 CFR Part 1— Procedures for Predetermination of Wage Rates.' 29 CFR Part 3 — Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States.' k. 29 CFR Part S —Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction (Also Labor Standards Provisions Applicable to Nonconstruction Contracts Subject to the Contract Work Hours and Safety Standards Act).' I. 41 CFR Part 60— Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and Federally -assisted contracting requirements).' m. 49 CFR Part 20— New Restrictions on Lobbying. n. 49 CFR Part 21— Nondiscrimination in Federally -Assisted Programs of the Department of Transportation - Effectuation of Title VI of the Civil Rights Act of 1964. o. 49 CFR Part 23 — Participation by Disadvantage Business Enterprise in Airport Concessions. p. 49 CFR Part 24 — Uniform Relocation Assistance and Real Property Acquisition for Federal and Federally -Assisted Programs.'. 2 q. 49 CFR Part 26 — Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs. r. 49 CFR Part 27 — Nondiscrimination on the Basis of Disability in Programs or Activities Receiving Federal Financial Assistance.' s. 49 CFR Part 28 — Enforcement of Nondiscrimination on the Basis of Handicap in Programs or Activities Conducted by the Department of Transportation. t. 49 CFR Part 30 — Denial of Public Works Contracts to Suppliers of Goods and Services of Countries That Deny Procurement Market Access to U.S. Contractors. u. 49 CFR Part 32 — Governmentwide Requirements for Drug -Free Workplace (Financial Assistance). v. 49 CFR Part 37 —Transportation Services for Individuals with Disabilities (ADA). w. 49 CFR Part 38 — Americans with Disabilities Act (ADA) Accessibility Specifications for Transportation Vehicles. x. 49 CFR Part 41— Seismic Safety. FOOTNOTES TO ASSURANCE (C)(1) These laws do not apply to airport planning sponsors. These laws do not apply to private sponsors. 2 CFR Part 200 contains requirements for State and Local Governments receiving Federal assistance. Any requirement levied upon State and Local Governments by this regulation shall Airport Sponsor Assurances 5/2022 Page 4 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA apply where applicable to private sponsors receiving Federal assistance under Title 49, United States Code. Cost principles established in 2 CFR part 200 subpart E must be used as guidelines for determining the eligibility of specific types of expenses. Audit requirements established in 2 CFR part 200 subpart F are the guidelines for audits. SPECIFIC ASSURANCES Specific assurances required to be included in grant agreements by any of the above laws, regulations or circulars are incorporated by reference in this Grant Agreement. 2. Responsibility and Authority of the Sponsor. a. Public Agency Sponsor: It has legal authority to apply for this Grant, and to finance and carry out the proposed project; that a resolution, motion or similar action has been duly adopted or passed as an official act of the applicant's governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. b. Private Sponsor: It has legal authority to apply for this Grant and to finance and carry out the proposed project and comply with all terms, conditions, and assurances of this Grant Agreement. It shall designate an official representative and shall in writing direct and authorize that person to file this application, including all understandings and assurances contained therein; to act in connection with this application; and to provide such additional information as may be required. 3. Sponsor Fund Availability. It has sufficient funds available for that portion of the project costs which are not to be paid by the United States. It has sufficient funds available to assure operation and maintenance of items funded under this Grant Agreement which it will own or control. 4. Good Title. a. It, a public agency or the Federal government, holds good title, satisfactory to the Secretary, to the landing area of the airport or site thereof, or will give assurance satisfactory to the Secretary that good title will be acquired. b. For noise compatibility program projects to be carried out on the property of the sponsor, it holds good title satisfactory to the Secretary to that portion of the property upon which Federal funds will be expended or will give assurance to the Secretary that good title will be obtained. S. Preserving Rights and Powers. a. It will not take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in this Grant Agreement without the written approval of the Secretary, and will act promptly to acquire, extinguish or modify any outstanding rights or claims of right of others which would interfere Airport Sponsor Assurances 5/2022 Page 5 of 19 DocuSign Envelope ID: F720CEAF-E960-4EEB-Al5A-9EE4110B2BCA with such performance by the sponsor. This shall be done in a manner acceptable to the Secretary. Subject to the FAA Act of 2018, Public Law 115-254, Section 163, it will not sell, lease, encumber, or otherwise transfer or dispose of any part of its title or other interests in the property shown on Exhibit A to this application or, for a noise compatibility program project, that portion of the property upon which Federal funds have been expended, for the duration of the terms, conditions, and assurances in this Grant Agreement without approval by the Secretary. If the transferee is found by the Secretary to be eligible under Title 49, United States Code, to assume the obligations of this Grant Agreement and to have the power, authority, and financial resources to carry out all such obligations, the sponsor shall insert in the contract or document transferring or disposing of the sponsor's interest, and make binding upon the transferee all of the terms, conditions, and assurances contained in this Grant Agreement. c. For all noise compatibility program projects which are to be carried out by another unit of local government or are on property owned by a unit of local government other than the sponsor, it will enter into an agreement with that government. Except as otherwise specified by the Secretary, that agreement shall obligate that government to the same terms, conditions, and assurances that would be applicable to it if it applied directly to the FAA for a grant to undertake the noise compatibility program project. That agreement and changes thereto must be satisfactory to the Secretary. It will take steps to enforce this agreement against the local government if there is substantial non-compliance with the terms of the agreement. d. For noise compatibility program projects to be carried out on privately owned property, it will enter into an agreement with the owner of that property which includes provisions specified by the Secretary. It will take steps to enforce this agreement against the property owner whenever there is substantial non-compliance with the terms of the agreement. e. If the sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that the airport will continue to function as a public -use airport in accordance with these assurances for the duration of these assurances. f. If an arrangement is made for management and operation of the airport by any agency or person other than the sponsor or an employee of the sponsor, the sponsor will reserve sufficient rights and authority to ensure that the airport will be operated and maintained in accordance with Title 49, United States Code, the regulations and the terms, conditions and assurances in this Grant Agreement and shall ensure that such arrangement also requires compliance therewith. g. Sponsors of commercial service airports will not permit or enter into any arrangement that results in permission for the owner or tenant of a property used as a residence, or zoned for residential use, to taxi an aircraft between that property and any location on airport. Sponsors of general aviation airports entering into any arrangement that results in permission for the owner of residential real property adjacent to or near the airport must comply with the requirements of Sec. 136 of Public Law 112-95 and the sponsor assurances. 6. Consistency with Local Plans. The project is reasonably consistent with plans (existing at the time of submission of this application) of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding the airport. Airport Sponsor Assurances 5/2022 Page 6 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE411062BCA 7. Consideration of Local Interest. It has given fair consideration to the interest of communities in or near where the project may be located. 8. Consultation with Users. In making a decision to undertake any airport development project under Title 49, United States Code, it has undertaken reasonable consultations with affected parties using the airport at which project is proposed. 9. Public Hearings. In projects involving the location of an airport, an airport runway, or a major runway extension, it has afforded the opportunity for public hearings for the purpose of considering the economic, social, and environmental effects of the airport or runway location and its consistency with goals and objectives of such planning as has been carried out by the community and it shall, when requested by the Secretary, submit a copy of the transcript of such hearings to the Secretary. Further, for such projects, it has on its management board either voting representation from the communities where the project is located or has advised the communities that they have the right to petition the Secretary concerning a proposed project. 10. Metropolitan Planning Organization. In projects involving the location of an airport, an airport runway, or a major runway extension at a medium or large hub airport, the sponsor has made available to and has provided upon request to the metropolitan planning organization in the area in which the airport is located, if any, a copy of the proposed amendment to the airport layout plan to depict the project and a copy of any airport master plan in which the project is described or depicted. 11. Pavement Preventive Maintenance -Management. With respect to a project approved after January 1, 1995, for the replacement or reconstruction of pavement at the airport, it assures or certifies that it has implemented an effective airport pavement maintenance -management program and it assures that it will use such program for the useful life of any pavement constructed, reconstructed or repaired with Federal financial assistance at the airport. It will provide such reports on pavement condition and pavement management programs as the Secretary determines may be useful. 12. Terminal Development Prerequisites. For projects which include terminal development at a public use airport, as defined in Title 49, it has, on the date of submittal of the project grant application, all the safety equipment required for certification of such airport under 49 U.S.C. § 44706, and all the security equipment required by rule or regulation, and has provided for access to the passenger enplaning and deplaning area of such airport to passengers enplaning and deplaning from aircraft other than air carrier aircraft. 13. Accounting System, Audit, and Record Keeping Requirements. It shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of this Grant, the total cost of the project in connection with which this Grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The Airport Sponsor Assurances 5/2022 Page 7 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984. b. It shall make available to the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to this Grant. The Secretary may require that an appropriate audit be conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a grant or relating to the project in connection with which this Grant was given or used, it shall file a certified copy of such audit with the Comptroller General of the United States not later than six (6) months following the close of the fiscal year for which the audit was made. 14. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on any projects funded under this Grant Agreement which involve labor, provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor under 40 U.S.C. §§ 3141-3144, 3146, and 3147, Public Building, Property, and Works), which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work. 15. Veteran's Preference. It shall include in all contracts for work on any project funded under this Grant Agreement which involve labor, such provisions as are necessary to insure that, in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to Vietnam era veterans, Persian Gulf veterans, Afghanistan -Iraq war veterans, disabled veterans, and small business concerns owned and controlled by disabled veterans as defined in 49 U.S.C. § 47112. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates. 16. Conformity to Plans and Specifications. It will execute the project subject to plans, specifications, and schedules approved by the Secretary. Such plans, specifications, and schedules shall be submitted to the Secretary prior to commencement of site preparation, construction, or other performance under this Grant Agreement, and, upon approval of the Secretary, shall be incorporated into this Grant Agreement. Any modification to the approved plans, specifications, and schedules shall also be subject to approval of the Secretary, and incorporated into this Grant Agreement. 17. Construction Inspection and Approval. It will provide and maintain competent technical supervision at the construction site throughout the project to assure that the work conforms to the plans, specifications, and schedules approved by the Secretary for the project. It shall subject the construction work on any project contained in an approved project application to inspection and approval by the Secretary and such work shall be in accordance with regulations and procedures prescribed by the Secretary. Such regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of such project as the Secretary shall deem necessary. Airport Sponsor Assurances 5/2022 Page 8 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA 18. Planning Projects. In carrying out planning projects: a. It will execute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved. b. It will furnish the Secretary with such periodic reports as required pertaining to the planning project and planning work activities. c. It will include in all published material prepared in connection with the planning project a notice that the material was prepared under a grant provided by the United States. d. It will make such material available for examination by the public, and agrees that no material prepared with funds under this project shall be subject to copyright in the United States or any other country. e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise use any of the material prepared in connection with this grant. f. It will grant the Secretary the right to disapprove the sponsor's employment of specific consultants and their subcontractors to do all or any part of this project as well as the right to disapprove the proposed scope and cost of professional services. g. It will grant the Secretary the right to disapprove the use of the sponsor's employees to do all or any part of the project. It understands and agrees that the Secretary's approval of this project grant or the Secretary's approval of any planning material developed as part of this grant does not constitute or imply any assurance or commitment on the part of the Secretary to approve any pending or future application for a Federal airport grant. 19. Operation and Maintenance. a. The airport and all facilities which are necessary to serve the aeronautical users of the airport, other than facilities owned or controlled by the United States, shall be operated at all times in a safe and serviceable condition and in accordance with the minimum standards as may be required or prescribed by applicable Federal, state, and local agencies for maintenance and operation. It will not cause or permit any activity or action thereon which would interfere with its use for airport purposes. It will suitably operate and maintain the airport and all facilities thereon or connected therewith, with due regard to climatic and flood conditions. Any proposal to temporarily close the airport for non -aeronautical purposes must first be approved by the Secretary. In furtherance of this assurance, the sponsor will have in effect arrangements for: 1. Operating the airport's aeronautical facilities whenever required; 2. Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions; and 3. Promptly notifying pilots of any condition affecting aeronautical use of the airport. Nothing contained herein shall be construed to require that the airport be operated for aeronautical use during temporary periods when snow, flood, or other climatic conditions interfere with such operation and maintenance. Further, nothing herein shall be construed as requiring the maintenance, repair, restoration, or replacement of any structure or Airport Sponsor Assurances 5/2022 Page 9 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA facility which is substantially damaged or destroyed due to an act of God or other condition or circumstance beyond the control of the sponsor. b. It will suitably operate and maintain noise compatibility program items that it owns or controls upon which Federal funds have been expended. 20. Hazard Removal and Mitigation. It will take appropriate action to assure that such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards. 21. Compatible Land Use. It will take appropriate action, to the extent reasonable, including the adoption of zoning laws, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft. In addition, if the project is for noise compatibility program implementation, it will not cause or permit any change in land use, within its jurisdiction, that will reduce its compatibility, with respect to the airport, of the noise compatibility program measures upon which Federal funds have been expended. 22. Economic Nondiscrimination. It will make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities, including commercial aeronautical activities offering services to the public at the airport. b. In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport is granted to any person, firm, or corporation to conduct or to engage in any aeronautical activity for furnishing services to the public at the airport, the sponsor will insert and enforce provisions requiring the contractor to: 1. Furnish said services on a reasonable, and not unjustly discriminatory, basis to all users thereof, and 2. Charge reasonable, and not unjustly discriminatory, prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. c. Each fixed -based operator at the airport shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable to all other fixed -based operators making the same or similar uses of such airport and utilizing the same or similar facilities. d. Each air carrier using such airport shall have the right to service itself or to use any fixed -based operator that is authorized or permitted by the airport to serve any air carrier at such airport. e. Each air carrier using such airport (whether as a tenant, non -tenant, or subtenant of another air carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly and substantially related to providing air transportation as are applicable to all such air carriers which make similar use of such airport and utilize similar facilities, subject to reasonable Airport Sponsor Assurances 5/2022 Page 10 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA classifications such as tenants or non -tenants and signatory carriers and non -signatory carriers. Classification or status as tenant or signatory shall not be unreasonably withheld by any airport provided an air carrier assumes obligations substantially similar to those already imposed on air carriers in such classification or status. f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees (including, but not limited to maintenance, repair, and fueling) that it may choose to perform. g. In the event the sponsor itself exercises any of the rights and privileges referred to in this assurance, the services involved will be provided on the same conditions as would apply to the furnishing of such services by commercial aeronautical service providers authorized by the sponsor under these provisions. h. The sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport. i. The sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport if such action is necessary for the safe operation of the airport or necessary to serve the civil aviation needs of the public. 23. Exclusive Rights. It will permit no exclusive right for the use of the airport by any person providing, or intending to provide, aeronautical services to the public. For purposes of this paragraph, the providing of the services at an airport by a single fixed -based operator shall not be construed as an exclusive right if both of the following apply: a. It would be unreasonably costly, burdensome, or impractical for more than one fixed -based operator to provide such services, and b. If allowing more than one fixed -based operator to provide such services would require the reduction of space leased pursuant to an existing agreement between such single fixed -based operator and such airport. It further agrees that it will not, either directly or indirectly, grant or permit any person, firm, or corporation, the exclusive right at the airport to conduct any aeronautical activities, including, but not limited to charter flights, pilot training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial advertising and surveying, air carrier operations, aircraft sales and services, sale of aviation petroleum products whether or not conducted in conjunction with other aeronautical activity, repair and maintenance of aircraft, sale of aircraft parts, and any other activities which because of their direct relationship to the operation of aircraft can be regarded as an aeronautical activity, and that it will terminate any exclusive right to conduct an aeronautical activity now existing at such an airport before the grant of any assistance under Title 49, United States Code. 24. Fee and Rental Structure. It will maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances existing at the particular airport, taking into account such factors as the volume of traffic and economy of collection. No part of the Federal share of an airport development, airport planning or noise compatibility project for Airport Sponsor Assurances 5/2022 Page 11 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA which a Grant is made under Title 49, United States Code, the Airport and Airway Improvement Act of 1982, the Federal Airport Act or the Airport and Airway Development Act of 1970 shall be included in the rate basis in establishing fees, rates, and charges for users of that airport. 25. Airport Revenues. All revenues generated by the airport and any local taxes on aviation fuel established after December 30, 1987, will be expended by it for the capital or operating costs of the airport; the local airport system; or other local facilities which are owned or operated by the owner or operator of the airport and which are directly and substantially related to the actual air transportation of passengers or property; or for noise mitigation purposes on or off the airport. The following exceptions apply to this paragraph: 1. If covenants or assurances in debt obligations issued before September 3, 1982, by the owner or operator of the airport, or provisions enacted before September 3, 1982, in governing statutes controlling the owner or operator's financing, provide for the use of the revenues from any of the airport owner or operator's facilities, including the airport, to support not only the airport but also the airport owner or operator's general debt obligations or other facilities, then this limitation on the use of all revenues generated by the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply. 2. If the Secretary approves the sale of a privately owned airport to a public sponsor and provides funding for any portion of the public sponsor's acquisition of land, this limitation on the use of all revenues generated by the sale shall not apply to certain proceeds from the sale. This is conditioned on repayment to the Secretary by the private owner of an amount equal to the remaining unamortized portion (amortized over a 20-year period) of any airport improvement grant made to the private owner for any purpose other than land acquisition on or after October 1, 1996, plus an amount equal to the federal share of the current fair market value of any land acquired with an airport improvement grant made to that airport on or after October 1, 1996. 3. Certain revenue derived from or generated by mineral extraction, production, lease, or other means at a general aviation airport (as defined at 49 U.S.C. § 47102), if the FAA determines the airport sponsor meets the requirements set forth in Section 813 of Public Law 112-95. b. As part of the annual audit required under the Single Audit Act of 1984, the sponsor will direct that the audit will review, and the resulting audit report will provide an opinion concerning, the use of airport revenue and taxes in paragraph (a), and indicating whether funds paid or transferred to the owner or operator are paid or transferred in a manner consistent with Title 49, United States Code and any other applicable provision of law, including any regulation promulgated by the Secretary or Administrator. c. Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance with the provisions of 49 U.S.C. § 47107. 26. Reports and Inspections. It will: a. submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request and make such reports available to the public; make available to the Airport Sponsor Assurances 5/2022 Page 12 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA public at reasonable times and places a report of the airport budget in a format prescribed by the Secretary; b. for airport development projects, make the airport and all airport records and documents affecting the airport, including deeds, leases, operation and use agreements, regulations and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; c. for noise compatibility program projects, make records and documents relating to the project and continued compliance with the terms, conditions, and assurances of this Grant Agreement including deeds, leases, agreements, regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; and d. in a format and time prescribed by the Secretary, provide to the Secretary and make available to the public following each of its fiscal years, an annual report listing in detail: 1. all amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and 2. all services and property provided by the airport to other units of government and the amount of compensation received for provision of each such service and property. 27. Use by Government Aircraft. It will make available all of the facilities of the airport developed with Federal financial assistance and all those usable for landing and takeoff of aircraft to the United States for use by Government aircraft in common with other aircraft at all times without charge, except, if the use by Government aircraft is substantial, charge may be made for a reasonable share, proportional to such use, for the cost of operating and maintaining the facilities used. Unless otherwise determined by the Secretary, or otherwise agreed to by the sponsor and the using agency, substantial use of an airport by Government aircraft will be considered to exist when operations of such aircraft are in excess of those which, in the opinion of the Secretary, would unduly interfere with use of the landing areas by other authorized aircraft, or during any calendar month that: Five (5) or more Government aircraft are regularly based at the airport or on land adjacent thereto; or b. The total number of movements (counting each landing as a movement) of Government aircraft is 300 or more, or the gross accumulative weight of Government aircraft using the airport (the total movement of Government aircraft multiplied by gross weights of such aircraft) is in excess of five million pounds. 28. Land for Federal Facilities. It will furnish without cost to the Federal Government for use in connection with any air traffic control or air navigation activities, or weather -reporting and communication activities related to air traffic control, any areas of land or water, or estate therein as the Secretary considers necessary or desirable for construction, operation, and maintenance at Federal expense of space or facilities for such purposes. Such areas or any portion thereof will be made available as provided herein within four months after receipt of a written request from the Secretary. Airport Sponsor Assurances 5/2022 Page 13 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA 29. Airport Layout Plan. a. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, it will keep up to date at all times an airport layout plan of the airport showing: 1. boundaries of the airport and all proposed additions thereto, together with the boundaries of all offsite areas owned or controlled by the sponsor for airport purposes and proposed additions thereto; 2. the location and nature of all existing and proposed airport facilities and structures (such as runways, taxiways, aprons, terminal buildings, hangars and roads), including all proposed extensions and reductions of existing airport facilities; 3. the location of all existing and proposed non -aviation areas and of all existing improvements thereon; and 4. all proposed and existing access points used to taxi aircraft across the airport's property boundary. Such airport layout plans and each amendment, revision, or modification thereof, shall be subject to the approval of the Secretary which approval shall be evidenced by the signature of a duly authorized representative of the Secretary on the face of the airport layout plan. The sponsor will not make or permit any changes or alterations in the airport or any of its facilities which are not in conformity with the airport layout plan as approved by the Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility or efficiency of the airport. b. Subject to the FAA Reauthorization Act of 2018, Public Law 115-254, Section 163, if a change or alteration in the airport or the facilities is made which the Secretary determines adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the Secretary, the owner or operator will, if requested, by the Secretary: 1. eliminate such adverse effect in a manner approved by the Secretary; or 2. bear all costs of relocating such property (or replacement thereof) to a site acceptable to the Secretary and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities except in the case of a relocation or replacement of an existing airport facility due to a change in the Secretary's design standards beyond the control of the airport sponsor. 30. Civil Rights. It will promptly take any measures necessary to ensure that no person in the United States shall, on the grounds of race, color, and national origin (including limited English proficiency) in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4); creed and sex (including sexual orientation and gender identity) per 49 U.S.C. § 47123 and related requirements; age per the Age Discrimination Act of 1975 and related requirements; or disability per the Americans with Disabilities Act of 1990 and related requirements, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination in any program and activity conducted with, or benefiting from, funds received from this Grant. Airport Sponsor Assurances 5/2022 Page 14 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110132BCA a. Using the definitions of activity, facility, and program as found and defined in 49 CFR §§ 21.23(b) and 21.23(e), the sponsor will facilitate all programs, operate all facilities, or conduct all programs in compliance with all non-discrimination requirements imposed by or pursuant to these assurances. b. Applicability Programs and Activities. If the sponsor has received a grant (or other federal assistance) for any of the sponsor's program or activities, these requirements extend to all of the sponsor's programs and activities. 2. Facilities. Where it receives a grant or other federal financial assistance to construct, expand, renovate, remodel, alter, or acquire a facility, or part of a facility, the assurance extends to the entire facility and facilities operated in connection therewith. 3. Real Property. Where the sponsor receives a grantor other Federal financial assistance in the form of, or for the acquisition of real property or an interest in real property, the assurance will extend to rights to space on, over, or under such property. c. Duration. The sponsor agrees that it is obligated to this assurance for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the assurance obligates the sponsor, or any transferee for the longer of the following periods: 1. So long as the airport is used as an airport, or for another purpose involving the provision of similar services or benefits; or 2. So long as the sponsor retains ownership or possession of the property. d. Required Solicitation Language. It will include the following notification in all solicitations for bids, Requests For Proposals for work, or material under this Grant Agreement and in all proposals for agreements, including airport concessions, regardless of funding source: "The ([Selection Criteria: Sponsor Name]), in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C. §§ 2000d to 2000d-4) and the Regulations, hereby notifies all bidders or offerors that it will affirmatively ensure that for any contract entered into pursuant to this advertisement, [select businesses, or disadvantaged business enterprises or airport concession disadvantaged business enterprises] will be afforded full and fair opportunity to submit bids in response to this invitation and no businesses will be discriminated against on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability in consideration for an award." e. Required Contract Provisions. 1. It will insert the non-discrimination contract clauses requiring compliance with the acts and regulations relative to non-discrimination in Federally -assisted programs of the Department of Transportation (DOT), and incorporating the acts and regulations into the contracts by reference in every contract or agreement subject to the non-discrimination in Federally -assisted programs of the DOT acts and regulations. Airport Sponsor Assurances 5/2022 Page 15 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA 2. It will include a list of the pertinent non-discrimination authorities in every contract that is subject to the non-discrimination acts and regulations. 3. It will insert non-discrimination contract clauses as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a sponsor. 4. It will insert non-discrimination contract clauses prohibiting discrimination on the basis of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability as a covenant running with the land, in any future deeds, leases, license, permits, or similar instruments entered into by the sponsor with other parties: a. For the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and b. For the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program. f. It will provide for such methods of administration for the program as are found by the Secretary to give reasonable guarantee that it, other recipients, sub -recipients, sub -grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the acts, the regulations, and this assurance. g. It agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the acts, the regulations, and this assurance. 31. Disposal of Land. For land purchased under a grant for airport noise compatibility purposes, including land serving as a noise buffer, it will dispose of the land, when the land is no longer needed for such purposes, at fair market value, at the earliest practicable time. That portion of the proceeds of such disposition which is proportionate to the United States' share of acquisition of such land will be, at the discretion of the Secretary, (1) reinvested in another project at the airport, or (2) transferred to another eligible airport as prescribed by the Secretary. The Secretary shall give preference to the following, in descending order: 1. Reinvestment in an approved noise compatibility project; 2. Reinvestment in an approved project that is eligible for grant funding under 49 U.S.C. § 47117(e); 3. Reinvestment in an approved airport development project that is eligible for grant funding under 49 U.S.C. §§ 47114, 47115, or 47117; 4. Transfer to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport; or 5. Payment to the Secretary for deposit in the Airport and Airway Trust Fund. If land acquired under a grant for noise compatibility purposes is leased at fair market value and consistent with noise buffering purposes, the lease will not be considered a disposal of the land. Revenues derived from such a lease may be used for an approved airport development Airport Sponsor Assurances 5/2022 Page 16 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA project that would otherwise be eligible for grant funding or any permitted use of airport revenue. b. For land purchased under a grant for airport development purposes (other than noise compatibility), it will, when the land is no longer needed for airport purposes, dispose of such land at fair market value or make available to the Secretary an amount equal to the United States' proportionate share of the fair market value of the land. That portion of the proceeds of such disposition which is proportionate to the United States' share of the cost of acquisition of such land will, upon application to the Secretary, be reinvested or transferred to another eligible airport as prescribed by the Secretary. The Secretary shall give preference to the following, in descending order: 1. Reinvestment in an approved noise compatibility project; 2. Reinvestment in an approved project that is eligible for grant funding under 49 U.S.C. § 47117(e); 3. Reinvestment in an approved airport development project that is eligible for grant funding under 49 U.S.C. §§ 47114, 47115, or 47117; 4. Transfer to an eligible sponsor of another public airport to be reinvested in an approved noise compatibility project at that airport; or 5. Payment to the Secretary for deposit in the Airport and Airway Trust Fund. c. Land shall be considered to be needed for airport purposes under this assurance if (1) it may be needed for aeronautical purposes (including runway protection zones) or serve as noise buffer land, and (2) the revenue from interim uses of such land contributes to the financial self- sufficiency of the airport. Further, land purchased with a grant received by an airport operator or owner before December 31, 1987, will be considered to be needed for airport purposes if the Secretary or Federal agency making such grant before December 31, 1987, was notified by the operator or owner of the uses of such land, did not object to such use, and the land continues to be used for that purpose, such use having commenced no later than December 15, 1989. d. Disposition of such land under (a), (b), or (c) will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with operation of the airport. 32. Engineering and Design Services. If any phase of such project has received Federal funds under Chapter 471 subchapter 1 of Title 49 U.S.C., it will award each contract, or sub -contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services in the same manner as a contract for architectural and engineering services is negotiated under Chapter 11 of Title 40 U S.C., or an equivalent qualifications -based requirement prescribed for or by the sponsor of the airport. 33. Foreign Market Restrictions. It will not allow funds provided under this Grant to be used to fund any project which uses any product or service of a foreign country during the period in which such foreign country is listed by Airport Sponsor Assurances 5/2022 Page 17 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction. 34. Policies, Standards, and Specifications. It will carry out any project funded under an Airport Improvement Program Grant in accordance with policies, standards, and specifications approved by the Secretary including, but not limited to, current FAA Advisory Circulars (https://www.faa.gov/`airports/aip/media/aip-pfc-checklist.pd ) for AIP projects as of [Selection Criteria: Project Application Date]. 35. Relocation and Real Property Acquisition. a. It will be guided in acquiring real property, to the greatest extent practicable under State law, by the land acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse property owners for necessary expenses as specified in Subpart B. b. It will provide a relocation assistance program offering the services described in Subpart C of 49 CFR Part 24 and fair and reasonable relocation payments and assistance to displaced persons as required in Subpart D and E of 49 CFR Part 24. c. It will make available within a reasonable period of time prior to displacement, comparable replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24. 36. Access By Intercity Buses. The airport owner or operator will permit, to the maximum extent practicable, intercity buses or other modes of transportation to have access to the airport; however, it has no obligation to fund special facilities for intercity buses or for other modes of transportation. 37. Disadvantaged Business Enterprises. The sponsor shall not discriminate on the basis of race, color, national origin, or sex, in the award and performance of any DOT -assisted contract covered by 49 CFR Part 26, or in the award and performance of any concession activity contract covered by 49 CFR Part 23. In addition, the sponsor shall not discriminate on the basis of race, color, national origin or sex in the administration of its Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Business Enterprise (ACDBE) programs or the requirements of 49 CFR Parts 23 and 26. The sponsor shall take all necessary and reasonable steps under 49 CFR Parts 23 and 26 to ensure nondiscrimination in the award and administration of DOT -assisted contracts, and/or concession contracts. The sponsor's DBE and ACDBE programs, as required by 49 CFR Parts 26 and 23, and as approved by DOT, are incorporated by reference in this agreement. Implementation of these programs is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the sponsor of its failure to carry out its approved program, the Department may impose sanctions as provided for under Parts 26 and 23 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. § 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. §§ 3801-3809, 3812). 38. Hangar Construction. If the airport owner or operator and a person who owns an aircraft agree that a hangar is to be constructed at the airport for the aircraft at the aircraft owner's expense, the airport owner or operator will grant to the aircraft owner for the hangar a long term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose. Airport Sponsor Assurances 5/2022 Page 18 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA 39. Competitive Access. a. If the airport owner or operator of a medium or large hub airport (as defined in 49 U.S.C. § 47102) has been unable to accommodate one or more requests by an air carrier for access to gates or other facilities at that airport in order to allow the air carrier to provide service to the airport or to expand service at the airport, the airport owner or operator shall transmit a report to the Secretary that: 1. Describes the requests; 2. Provides an explanation as to why the requests could not be accommodated; and 3. Provides a time frame within which, if any, the airport will be able to accommodate the requests. b. Such report shall be due on either February 1 or August 1 of each year if the airport has been unable to accommodate the request(s) in the six month period prior to the applicable due date. Airport Sponsor Assurances 5/2022 Page 19 of 19 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE41106213CA EXHIBIT "C" DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110I3213CA CITY OF FRESNO, CALIFORNIA - DEPARTMENT OF AIRPORTS MINIMUM STANDARDS FOR FRESNO CHANDLER EXECUTIVE AIRPORT SECTION 1. PURPOSES OF MINIMUM STANDARDS AND APPLICABILITY The City of Fresno, California recognizes the prohibition imposed by Section 308 of the Federal Aviation Act against granting an exclusive right to conduct any aeronautical activity at a Public Airport, and recognizes the City has agreed to the same prohibition in its acceptance of airport improvement grants from the Federal Aviation Administration. Moreover, the City wishes that there be healthy competition at the Fresno Chandler Executive Airport, conducted on a level playing field, and wishes that a broad array of high -quality products and services be available at the Airport. The City is publishing these Minimum Standards so that any Entity interested in engaging in any Revenue Generating Aviation Activity at the Airport may know the principles that apply and the requirements that must be met and maintained. Note, however, that it is not the intention of the City to create any private right of action to enforce these Minimum Standards. These Minimum Standards do not apply to Entities previously authorized to offer or conduct specific Revenue Generating Aviation Activities at, on or from the Airport. The standards each such previously authorized Entity has been meeting shall comprise that Entity's minimum standards and must be maintained by that Entity. However, should any previously authorized Entity be granted authority to engage in additional Revenue Generating Aviation Activities, then, as a condition of such additional authorization, these Minimum Standards shall apply to each and every Business authorized, including the Revenue Generating Aviation Activities previously authorized. Further, these Minimum Standards shall apply to each and every authorized Business, upon any renewal or extension of a previously authorized Entity's Agreement or Lease. SECTION 2. DEFINITIONS The following terms shall have the meanings indicated: Agreement or Lease — a written, enforceable contract, regardless of its duration or term, between the City and an Entity, which authorizes that Entity to engage in some Revenue Generating Aviation Activity at the Airport and/or which may cover that entity's use or occupy of space at the Airport. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE411013213CA Aircraft — are aeronautical vehicles or devices including, but not limited to, powered fixed wing airplanes, rotorcraft, dirigibles and blimps, and non -powered gliders, rotorcraft and balloons. Aircraft Operation — is any arrival or departure of an Aircraft at the Airport or any Aircraft movement on the AOA. . Aircraft Operations Area or AOA — all the runways, taxiways, helipads, Ramps, hold areas and any other area used or intended to be used for the take off or landing or surface maneuvering of Aircraft, or any areas within the perimeter fence and adjacent to surface maneuvering areas. Airline — an Entity operating Aircraft pursuant to Part 121 or Part 135 of the FARs. Airport — the Fresno Chandler Executive Airport unless the context indicates Fresno Yosemite International Airport (FYI) as well. Airport Layout Plan or ALP — a plan view of an airport, drawn to scale and showing all that airport's aeronautical and other Improvements and projected future Improvements — as amended from time -to -time, and as approved by the FAA. Airport Master Plan or Master Plan — a comprehensive document that considers an airport's history, regional demographic changes, and other relevant factors and trends; then projects traffic and use for the future, then examines the probable noise, environmental and other impacts of same; and, finally, programs an orderly and balanced plan of Airport development to accommodate anticipated demand while minimizing adverse impacts. The major airport land use allocations are illustrated in a complementary ALP. Airworthy — an Aircraft that is compliant with the FARs and safe to fly. Business - a Revenue Generating Aviation Activity City - The City of Fresno, California, a municipal corporation. Core FBO Services - see FBO below Department of Airports or Department - The City's Department of Airports. Derelict Aircraft — an Aircraft: that has not been Airworthy for six months or more and: (1) is not in the process of being made Airworthy; or (2) is not in the process of rehabilitation for public display; or (3) has not been specially prepared, treated and preserved for future rehabilitation. An Aircraft will be presumed a Derelict Aircraft if it has not been Airworthy for six months or more and is obviously deteriorating (tires flat and/or drying out or cracking; or rubber drying out and losing resiliency; or paint DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA oxidizing, crazing and/or flaking off; or Plexiglas discoloring, cracking or crazing; or metal corroding or rusting; or fabric fraying; etc.). Director of Aviation or Director - the individual filling the position of the City's Director of Aviation, or an individual authorized to represent him/her. Entity - an individual or a firm, corporation, partnership, joint venture or other legal person. Equipment — all tools, tooling and machinery, together with the supplies and apparatus necessary to properly conduct the Revenue -Generating Aviation Activity authorized. FAA — the Federal Aviation Administration. FAR or FARs — the then current Federal Air Regulations. FCH - Fresno Chandler Executive Airport FCH Environs Specific Plan or FCH Specific Plan - a comprehensive airport planning document that considers the development policies and standards of the City of Fresno General Plan and the Edison Community Plan, including related environmental impact analyses as required by the California Environmental Quality Act or CEQA. Fixed Base Operator or FBO — is an Entity authorized and required to offer, at a minimum, to the operators of based and transient/itinerant personal or business Aircraft up to 12,500# gross weight: (1) retail sales and delivery into -plane of Aircraft fuels, lubricants and additives; (2) overnight tie -down and hangarage; (3) minor Aircraft maintenance, servicing and repair; (4) tire "airing" and battery "boosts"; (5) pilot and passenger waiting lounge with restrooms and public phones and direct -access to the most current aviation weather information; (6) air -to -ground radio communications; (7) removal of disabled Aircraft from the AOA (these activities 1-7 are, collectively, the "Core FBO Services"). FBOs may be authorized to engage in Revenue -Generating Aviation Activities in addition to, but in not in substitution of, the Core FBO Services. An FBO may enter a Subcontract with a third party to provide Core FBO Service no. 3, light Aircraft and powerplant servicing, maintenance and repair, and/or additional, non -Core FBO Services, provided such Subcontractor holds or enters a complementary Agreement with the City. Note: Only FBOs will be authorized to offer retail sales and/or delivery into -plane of Aircraft fuels. City also retains its right to offer retail sales and/or delivery into -plane of Aircraft fuels. FYI - Fresno Yosemite International Airport DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE411062BCA Improvements — all buildings, structures, and facilities including, but not limited to, pavement, fencing, signs and landscaping constructed, installed or placed on, under or above any leased area by, or with the concurrence of, a Lessee of Airport property. Leased Premises or Premises — real estate at the Airport covered by an Agreement or Lease. Lessee or Operator or Tenant — an Entity that has entered an Agreement or Lease with the Department. Lessor or Landlord — the Department Mobile Service Provider or MSP - an Entity that conducts one or more authorized Revenue Generating Aviation Activities on, at or from the Airport, but does not operate out of leased or Subleased Premises. Examples of MSPs include, but are not limited to, Aircraft mechanics, flight instructors, Aircraft detailers, and oil recyclers. On Demand Air Transportation - is unscheduled commercial air transportation for hire operated under FAR parts 119 and 135 Preventive Aircraft Maintenance - maintenance that is not considered a major aircraft alteration or repair and does not involve complex assembly operations listed in FAR Part 43. Public Airport - an airport used or intended to be used for public purposes (A) that is under the control of a public agency and (B) of which the area used or intended to be used for the landing, taking off, or surface maneuvering of Aircraft is publicly owned. Ramp — paved areas suitable for parking Aircraft. Repair Facility — a facility (sometimes called a shop) that is used for repairing Aircraft or Aircraft systems, components or accessories including, without limitation thereto, engines, powerplants, propellers, radios, navigational aids and instruments Revenue -Generating Aviation Activity — any commercial activity which relates to the fabrication, operation, maintenance, modification, repair, cleaning [exterior and/or interior], refurbishing, restoration, overhaul, painting, plating or refinishing of Aircraft; or of the airframes, powerplants, components, equipment, systems or accessories of Aircraft Revenue -Generating Aviation Activities include, but are not limited to, pilot training; demonstration flights; "dog -fighting"; Aircraft rental; sightseeing flights; glider towing; parachuting; "sky diving"; aerial ambulance; aerial firefighting; aerial photography or surveying; aerial advertising; aerial traffic or news reporting; powerline, pipeline or other aerial patrolling; aerial application; weather modification; air taxi or charter; Aircraft sales, including fractional ownership; commercial flying clubs; management of Aircraft owned by others; Aircraft scheduling: passenger handling; ground handling; passenger security screening; baggage, mail or freight DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE41106213CA loading/unloading and/or transportation on the Airport; Aircraft marshalling and push - back; receipt and/or storage on the Airport of mail, baggage or freight; flight dispatch; loading bridge operation; the sale and/or delivery or installation of Aircraft components, parts, systems or accessories, and the sale and/or delivery of products used by or in Aircraft, including fuel, lubricants, additives, oxygen and flight meals. Revenue Generating Aviation Activities do not include any of the above activities if conducted by a governmental unit or agency in support of its governmental functions; nor do Revenue -Generating Aviation Activities include Airline operations or any of the above activities conducted by an Airline with its own employees in support of its Airline operations; nor do Revenue Generating Aviation Activities include Aircraft Operations by transient or itinerant Aircraft, or non-commercial Aircraft operations by personal or business aircraft based at the Airport in a Leased hangar or tie -down space. Specialized Aviation Service Operator or SASO — an Entity that is authorized to engage in one or more Revenue Generating Aviation Activities, but is not an FBO. Sublease or Subcontract - a written agreement stating the terms and conditions under which a third party Entity (the Sublessee or Subcontractor) rents space (Subleased Premises) at the Airport from a Lessee, and/or conducts a Revenue Generating Aviation Activity from a Lessee's Premises. A Sublease or Subcontract can not authorize the Sublessee or Subcontractor to conduct any Business at the Airport: business privileges can be authorized only by the City, in a complementary Agreement between the Subcontractor or Sublessee and the City Through -the -Fence Business Operation - An aviation -related business activity located in the immediate vicinity of the Airport, but not on Airport property, which activity would be a Revenue Generating Aviation Activity if located at or on Airport property; and which requires some entrance upon Airport property by the business operator for the business activity to be accomplished. A Through -the -Fence Business Operation relies upon Airport users as a continuous and significant source of its business. An example would be an Aircraft inspection and repair business where the Aircraft or a major Aircraft component is ground transported off the Airport for the inspection and repair and returned to the Airport upon completion of the inspection and repair. SECTION 3. STATEMENT OF POLICY - PRINCIPLES APPLYING It is the policy of the City to operate and develop FCH as a reliever airport for the City's airline airport, FYI, with FCH primarily serving general aviation Aircraft. Both Airports will be operated and developed by the Department as a financially self-supporting, complementary system of airports serving the entire range of airport users safely, securely and efficiently, offering reliable, high quality aviation products and services to meet the air transportation needs and desires of the region's citizens, visitors, commerce and economy in an environmentally friendly manner and as a good neighbor. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA To meet these policy goals, the Department shall be guided by the following principles: 1. No Entity may regularly engage in any Revenue Generating Aviation Activity at, on or from the Airport without first entering a written Agreement with the City which will prescribe the Revenue Generating Aviation Activity or Activities authorized and/or required to be offered. 2. Entities so authorized will be required to make a financial investment in Improvements and/or Equipment sufficient to satisfy the reasonably anticipated demand for the Business(es) authorized. 3. The rents, fees and/or charges charged to their clients and customers by authorized Entities shall not be higher than are reasonable and customary in that trade or business in Central California. 4. The rents, fees and/or charges charged by the Department shall be fair and not unduly discriminatory, taking into consideration the Department's direct and indirect costs of providing, maintaining, servicing and keeping secure the Airport, including the rented or Subleased Premises, the market value of same, the revenue potential of the Revenue Generating Aviation Activities authorized and their relative importance to the region. Before commencing Business operations, authorized Entities shall post and maintain security equivalent to not less than three months' of the anticipated rents fees and/or charges payable to the Department. 5. The term of any Agreement, including any options to extend, shall be no longer than required to reasonably amortize the investment in Improvements to Airport Premises that the Lessee is required to make. 6. In addition to compliance with all applicable building, zoning and hazard codes and the FCH Specific Plan, all Improvements must be approved by the Department as to architectural suitability, location and height with respect to other Airport facilities. No Improvement will be permitted that in any way interferes with or derogates Airport operations, or other Airport facilities, or encroaches into or conflicts with any building restriction line or safety area depicted on the current ALP. 7. The then effective Airport Master Plan and FCH Specific Plan shall control the types, placement and sizing of all future facilities at the Airport. No extant facility that does not conform with the then current Airport Master Plan and FCH Specific Plan shall be used or leased on terms that might impede or delay the timely development of the Airport in conformity with the then current Airport Master Plan and FCH Specific Plan, nor shall any Improvements to such facility be allowed if that might impede or delay timely subsequent development of the Airport in conformity with the said Master Plan and FCH Specific Plan. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE41101326CA 8. The highest and best use shall be made of the limited Airport premises so as to maximize the capacity of the Airports system to meet the air transportation needs and desires of the Airports' region. Lower or lesser uses may be authorized on an interim basis to provide interim revenues to the Department, but any such lower or lesser use(s) shall be on bases that will not impede or delay the eventual highest and best use. Hangars shall be used for the storage of Aircraft that are Airworthy or in the process of being made Airworthy and Aircraft associated support materials, AND/OR in the case of authorized FBOs or SASOs for the conduct of their authorized Business(es). Without limiting the generality of the foregoing, no hangar may be used primarily for storing or inventorying personal property that is not closely associated with the servicing, maintenance and/or care of Airworthy Aircraft or Aircraft actively in process of being made Airworthy, or being prepared for public display, or being specially prepared, treated and preserved for future rehabilitation. 9. Through -the -Fence Business Operations shall be authorized only if the products or services to be offered are not already available on the Airport and there is no reasonable possibility of accommodating the Through -the -Fence applicant on the Airport. SECTION 4. GENERAL LEASE PROVISIONS/OBLIGATIONS; INCORPORATION BY REFERENCE All Agreements authorizing any Revenue Generating Aviation Activity at the Airport shall incorporate by reference the following provisions and the then effective Minimum Standards, but only to the extent each such provision or standard is not in conflict with any express provision of the Agreement. In the case of any conflict, the Agreement shall control. 1. Employee Conduct and Customer Service Emphasis A. Management Control and Supervision - Each authorized Operator is required to employ the necessary quantity of trained management and supervisors to provide for the safe, secure, and timely compliance with its Lease obligations. B. Personnel Training and Certification - All authorized Operator personnel shall be fully qualified and trained to provide a high quality standard of courteous, efficient, and safe service to the public and customers. Personnel shall meet all Federal, State, and local certification and licensing requirements applicable to their individual duties. 2. Facilities for the storage and disposal -of toxic materials and contaminants must comply with all applicable governmental rules, regulations, standards and requirements. Operator will obtain all necessary permits for storage and disposal DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110132BCA and will provide Lessor with copies of such permits and evidence of compliance with the terms and conditions thereof. Improper storage or disposal of toxic materials or contaminants shall be grounds for termination of the lease. Operator shall be liable for the costs of correcting any contamination or damage to the Leased Premises and/or adjacent areas caused by improper storage, disposal or use of any such materials, which liability shall survive the expiration or earlier termination of the Lease. 3. Nothing contained in the Lease shall be construed to grant or authorize the granting of an exclusive right to provide aeronautical services to the public as prohibited by Section 308 (a) of the Federal Aviation Act of 1958, as amended, and the City reserves the right to grant to others the privilege and right of conducting any one or all activities of an aeronautical nature, so long as they meet the Minimum Standards. 4. The City reserves the right, but shall not be obligated to the Operator, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the airport, together with the right to direct and control all use of said landing area and facilities, including Operator's use. 5. The City reserves the right to further develop or improve the AOA as it deems necessary, regardless of the desires or view of the Operator, and without interference or hindrance by or from the Operator. 6. During the time of war or national emergency, the City shall have the right to Lease the landing area or any part thereof to the United States Government for military use, and if such Lease is executed, the provisions of the Operator's Lease insofar as they are inconsistent with the provisions of the Government's Lease, shall be suspended. 7. The City reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction together with the right to prevent the Operator from erecting, or permitting to be erected any building or other structure on or adjacent to the Airport which, in the opinion of the City, would limit the usefulness of the Airport or constitute a hazard to Aircraft. 8. The Lease shall be subordinate to the provisions of any existing or future agreement between the City and the United States, relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the receipt or expenditure of Federal funds for the development of the Airport. 9. The Operator shall not assign or otherwise transfer any interest in Operator's Lease, nor shall Operator Sublease or assign any interest in its Leased Premises or any portion thereof without the express, written consent of the City. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE41106213CA 10. No Airport facilities, including hangars, Ramps and vehicular parking areas, shall be used for the storage of cars, trucks, recreational vehicles, boats, trailers, mobile homes, household furnishings or any other personal property not associated with the conduct of the Business or use authorized. Without limiting the generality of the foregoing, Operator shall not store at the Airport any Derelict Aircraft, nor shall Operator allow its Premises at the Airport to be used for the storage of Derelict Aircraft. 11. Operator shall submit on an annual basis all information deemed by the Department to be relevant to Operator's credit worthiness and financial stability. Operator is required to satisfy the Director that it is financially able to perform the services authorized in its Agreement. This shall include the responsibility to demonstrate continued financial solvency and business ability by submitting an annual financial statement, credit references, and any other proof the Director may require from time to time. Information provided shall be in a format determined by and acceptable to the Director. The Director shall be the final judge as to the qualifications and financial ability of Operator. Operator agrees that the Director may undertake such investigation and inspection as it deems necessary and appropriate. 12. The use of any Airport Premises shall conform to all applicable Airport /local/ state/ federal rules and regulations including but not limited to; building and fire codes; E.P.A. regulations and storm water discharge permit restrictions. 13. During Operator's activity at the Fresno Chandler Executive Airport, the Operator shall pay for and maintain in full force and effect all policies of insurance required hereunder with an insurance company(ies) either (i) admitted by the California Insurance Commissioner to do business in the State of California and rated not less than "A-VII" in Best's Insurance Rating Guide, or (ii) authorized by CITY'S Risk Manager or his/her designee. The following policies of insurance are required: (i) COMMERCIAL GENERAL LIABILITY insurance which shall be at least as broad as Insurance Services Office (ISO) form CG 00 01 and shall include coverage for "bodily injury", "property damage" and "personal and advertising injury", including premises and operation, products and completed operations, contractual liability and hangar keepers liability (if applicable) with limits of liability of not less than $1,000,000 per occurrence and $2,000,000 general aggregate for bodily injury and property damage, $1,000,000 per occurrence for personal and advertising injury and $2,000,000 aggregate for products and completed operations. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA (ii) COMMERCIAL AIRCRAFT LIABILITY insurance which shall include coverage for "bodily injury" (including passengers) and "property damage", including aircraft personal injury liability, newly acquired aircraft liability, non -owned aircraft liability, hangar keepers liability and contractual liability with limits of liability of not less than $10,000,000 per occurrence for bodily injury and property damage [required only if Operator's activity includes the operation of aircraft]. (iii) COMMERCIAL AUTOMOBILE LIABILITY insurance which shall be at least as broad as the most current version of Insurance Services Office (ISO) form CA 00 01 and shall include coverage for "any auto" with limits of liability of not less than $1,000,000 per accident for bodily and property damage. (iv) Fire and Extended Coverage Insurance against loss or damage to the building or structure, including improvements and betterments, by fire and lightning, with extended coverage insurance for vandalism and malicious mischief insurance and sprinkler system leakage insurance. Such extended coverage insurance will, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance. Such insurance will be in an amount equal to the full replacement cost (without deduction for depreciation) of the building or structure, including improvements and betterments, with no coinsurance penalty. (v) WORKERS' COMPENSATION insurance as required under the California Labor Code. (vi) EMPLOYERS' LIABILITY insurance with minimum limits of $1,000,000 each accident, $1,000,000 disease each employee and $1,000,000 disease policy limit [required only if Operator has employees]. All policies of insurance required hereunder shall be endorsed to provide that the coverage shall not be cancelled, non -renewed, reduced in coverage or in limits except after thirty (30) calendar day written notice by certified mail, return receipt requested, has been given to the City. Upon issuance by the insurer, broker or agent of a notice of cancellation, non -renewal or reduction in coverage or limits, Operator shall furnish City with a new certificate and applicable endorsements for such policy(ies). In the event any policy(ies) are due to expire during Operator's activity at Fresno Chandler Executive Airport, Operator shall provide a new DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA certificate and all applicable endorsements evidencing renewal of such policy(ies) not less than 15 calendar days prior to the expiration date of the expiring policy(ies). The General Liability, Automobile Liability and Aircraft Liability insurance policies shall name City of Fresno, its officers, officials, agents, employees and volunteers as an additional insureds. Operator's insurance shall be primary as respects to the City, its officers, officials, employees, agents and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, agents and volunteers shall be excess of the Operator's insurance and not contribute with it. Any Workers' Compensation insurance policy shall contain a waiver of subrogation as to CITY, its officers, officials, agents, employees and volunteers. Operator shall have furnished CITY with the certificate(s) and applicable endorsements for ALL required insurance before conducting any activity at the Fresno Chandler Executive Airport. Operator shall furnish City with copies of the actual policies upon the request of CITY'S Risk Manager or his/her designee and this requirement shall survive the use of City grounds and facilities. If at any time during Operator's activity at Fresno Chandler Executive Airport, Operator fails to maintain the required insurance in full force and effect, the Operator's activity at Fresno Chandler Executive Airport shall be discontinued immediately until notice is received by City that the required insurance has been restored to full force and effect and that the premiums therefore have been paid for a period satisfactory to CITY. The City reserves the right to change the required insurance coverage at any time by letter and the Operator shall comply within thirty (30) days from date of notice. 14. Operator shall indemnify, hold harmless and defend City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Operator or any other person, and from any and all claims, demands and actions in law or equity (including attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of the activity of the Operator, its principals, officers, agents, employees, persons under the supervision of Operator, vendors, suppliers, invitees, consultants, sub - consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them at the Fresno Chandler Executive Airport. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE411013213CA 15. Lessee, or Lessee's personal representative, its successors in interest and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (1) no person on the grounds of race, gender, religion or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction in the use of any improvements on, over or under such land and the furnishing of services thereon, no person on the grounds of race, gender, religion or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (3) that the Lessee, shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, U.S. Department of Transportation, Subtitle A, office of the Secretary, Part 21 nondiscrimination federally -assisted programs of the U.S. Department of Transportation - effectuation of Title VI of the Civil Rights Act of 1964, and as said regulations may be amended. In the event of breach of any of the above nondiscrimination covenants, the Department shall have the right to terminate the Lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said Lease had never been made or issued. Lessee agrees to furnish services on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that the Lessee may be allowed to make reasonable and nondiscriminatory discount, rebate or other similar types or price reductions to volume purchasers. 16. Lessee, if applicable, must provide a plan meeting all local, state and federal regulations for the storage, containment and disposal of contaminants and toxic waste. 17. Lessee agrees to comply with airport rules and regulations as established and revised from time to time by the Director. 18. Lessee agrees to engage only in the Business or activity authorized by its Agreement. Failure to actively engage in one or more of the Businesses authorized for a period of 90 days or more, shall be grounds for termination by the City of the authority to engage in that or those Businesses, or termination of the Lease. Lessee shall notify the Director of every instance where Lessee has knowledge of, or suspects that, another Entity is using Lessee's Premises for a Revenue - Generating Aviation Activity not authorized by the Department. Failure to timely take reasonable means to determine if a particular activity constitutes an unauthorized Revenue -Generating Aviation Activity shall make Lessee liable to the City for the fees and charges pertinent to the unauthorized Revenue - Generating Aviation Activity as if it had been authorized. Further, Lessee shall DocuSign Envelope ID: F720CEAF-E9604EE8-A15A-9EE4110132BCA forthwith take steps to terminate the unauthorized Revenue -Generating Aviation Activities. 19. Operator shall abide by all provisions of the then current, approved Airport Security Plan. Without limiting the generality of the foregoing, Operator shall not provide airport gate codes or keys to any member of the general public AND Operator assumes responsibility for the conduct of its employees, officers, directors, agents, customers, clients and business invitees at the Airport. If violations of the Airport Security Plan by the Operator or any of the people for whom the Operator has assumed responsibility result in fines being levied against the City by any federal or state agency, Operator will reimburse the Department for the full cost of such fines within thirty (30) days of payment. Any conduct which the Director deems to constitute a violation of the Approved Airport Security Plan or a threat to pubic safety, health or security must be discontinued immediately and may not be re -commenced until specifically authorized in writing by the Director. 20. Operator and/or Operator's employees must possess all the licenses, certificates and ratings necessary to lawfully engage in the businesses and activities authorized and/or required. 21. Operator shall keep the Leased or Subleased Premises neat, clean and appropriately supplied and shall conduct the lawful, sanitary, and timely handling and disposal of all solid waste, regulated waste, and other materials including, but not limited to, sump fuel, used oil, solvents, and other regulated waste. The piling and storage of crates, boxes, barrels, containers, refuse, and surplus property is not permitted upon Airport Premises. . 22. Operator shall provide and properly locate about the Leased Premises the proper number, types, and sizes of fire extinguishers, and other safety equipment, in accordance with the Uniform Fire Code. All fire extinguisher certifications must be kept current. 23. Operator acknowledges that owners of Aircraft are entitled to use the AOA and may tie -down, adjust, repair, refuel, clean, and otherwise service their own aircraft, provided the service is performed by the Aircraft owner him/herself Any unreasonable restrictions imposed on owners or operators or Aircraft by the Operator will be construed as a violation of City policy. SECTION 5. MINIMUM FACILITIES, EQUIPMENT, HOURS OF OPERATION, STAFFING, ET. AL. Application of this Section 5 DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA All Entities authorized to conduct any Revenue Generating Aviation Activity at the Airport shall comply with ALL the requirements set forth in this Section 5 that are applicable to the Business(es) authorized UNLESS expressly waived or modified in writing by the Director. The mere omission of any particular minimum requirement in a Lease shall not constitute a waiver or modification of the minimum requirement. The Director may expressly waive or modify, in writing, any portion of these Section 5 minimum requirements for any Entity upon Director's determination that such waiver or modification is in the best interest of the public and will not result in undue discrimination against other Entities authorized to engage in the same or similar Business(es) at the Airport. When an Agreement authorizes multiple Revenue Generating Aviation Activities, the authorized Entity shall comply with the minimum requirements established for each separate Business authorized, but the space or capacity requirements need not be cumulated if the Operator can demonstrate, to the satisfaction of the Director, that the facilities will be adequate to allow all the authorized Businesses to be conducted simultaneously. In such cases, the minimum requirement that is most strict or imposes the highest standard shall apply, as a minimum. Revenue Generating Aviation Activities not currently being offered or provided at the Airport, and for which minimum requirements have not yet been established, will be addressed by the Director as and when applications to offer or engage in such Businesses are received. 2. FBOs Buildings Each FBO shall lease or construct a public use terminal building complex including: • A customer service counter/office of not less than 100 square feet, with operating two-way air -to -ground radio, current aviation charts [covering California and the immediately adjacent states] for sale, and facilities for obtaining rental cars or the use of a courtesy car ■ A well lighted, comfortably heated and air conditioned waiting lounge of not less than 400 square feet, furnished with comfortable seating for not less than ten people ■ A discreet flight planning area within or adjacent to the lounge, properly equipped with appropriate wall charts, NOTAMs board, local -access telephone to contact Flight Service, and a computer to access current aviation weather information. • Men's and Ladies' rooms accessible from the lounge. ■ A public use phone with posted list of numbers to call for after-hours FBO services, overnight accommodation, and ground transportation. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA ■ A free -span hangar of not less than 20,000 square feet • Paved parking as required by code, but not less than sufficient to park ten automobiles • Above -ground, double -walled fuel storage tank(s) with not less than 12,000 gallons capacity of aviation gasoline A tank of not less than 5,000 gallons storage for Jet A fuel, which may be truck - mounted or stationary. If stationary, it shall be above ground, double -walled and located with the aviation gasoline storage and plumbed for self fueling like aviation gasoline ■ Storage for not less than 144 quarts of the most popular grades of aviation oil • An air hose for inflating aircraft tires, and a constant supply of paper towels for pilots use wiping dipsticks and/or cleaning aircraft windshields. Equipment Each FBO shall provide: • A tug capable of towing an aircraft of 12,500 # gross weight • Tow bars to fit common GA aircraft • An air start cart or vehicle • An electric "boost" cart or vehicle with 1600 amps capacity at both 14 and 28 volts, with adapters to fit common GA aircraft [all the foregoing may be combined in one or more vehicles] • An air compressor capable of compressing air to not less that 125 psi for landing gear strut and/or tire inflation • Bottled nitrogen for inflating Aircraft landing gear struts and/or tires • Dollies and other equipment for use with the tug in removing disabled aircraft of 12,500 # gross weight from the AOA • Aviation grade oxygen re -fills Hours of Operation Each FBO shall be open for business and attended during all daylight hours except Sundays and not more than nine major holidays each year. Any closures or other deviations from this schedule must be requested in advance and approved in writing by the Director. During regular business hours, each FBO shall promptly provide Equipment and trained personnel to remove disabled Aircraft (under 12,501#) from the AOA — at the request of, and with an appropriate release of liability or indemnification from the owner or operator of the disabled aircraft or the Director. Outside regular business hours, each FBO shall be on -call to provide the same Equipment and trained personnel within four (4) hours. If multiple FBOs are obligated to provide aircraft removal services on the Airport, they may agree among DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA themselves as to which shall be on -call and when, provided that a copy of their written agreement is supplied to the Director and kept current thereafter Each FBO shall be on -call to provide after-hours fuel service within four (4) hours of a customer request. Each FBO shall have on duty during the required operating hours of each Core FBO service a quantity of personnel sufficient to meet the Minimum Standards for each authorized and/or required business. However, multiple responsibilities may be assigned to employees where feasible. Qualifications of Fuel Handling Personnel All FBO fuel handling personnel shall be trained in the safe and proper handling, dispensing, and storage of aviation fuels. The FBO shall develop and maintain Standard Operating Procedures (SOP) for refueling and ground handling operations and shall ensure compliance with standards set forth in the Uniform Fire Code and FAA Adviso Circular 00-34A. Aircraft Ground Handling and Servicing. The SOP shall address bonding and fire protection, public protection, control of access to the fuel storage area, and marking and labeling of fuel storage tanks and fuel dispensing equipment, and shall be submitted to the Director no later than thirty (30) days prior to the FBO commencing fueling activities. Additionally, the FBO shall comply with FAA Advisory Circular 150/5230-4. Aircraft Fuel Storage and Dispensing on Airports, Airport rules and regulations, and all other applicable laws related to aircraft fuel handling, dispensing and storage. Each FBO shall obtain all applicable fueling certifications and permits, and receive periodic refresher training as required. The Director and/or the FAA may periodically conduct inspections of the FBO activities and facilities to ensure compliance with laws, regulations, and Minimum Standards. Additional Requirements for FBOs Each FBO shall furnish good, prompt, courteous and efficient services, adequate to meet all reasonable demands, on a fair, reasonable and non-discriminatory basis. Each FBO shall operate its business in a first-class manner and shall, at all times, keep its premises at the Airport in a safe, clean and orderly condition consistent with the Business activities authorized, and satisfactory to the Director. Each FBO shall accept not less than three major credit cards and at least one oil company credit card. Each FBO shall select and appoint a full-time manager of its operations at the Airport. Such manager shall be properly qualified and experienced and shall be vested with full power and authority to act in the name of the FBO in respect to the DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE41106213CA method, manner and conduct of the authorized Business. Such manager or a duly authorized subordinate shall be present and available at the Airport during regular business hours. Each FBO shall provide the Director, and keep current, a typed list of the names, addresses, and contacts for all personnel responsible for the operation and management of the FBO. In addition, the Director shall be provided a point -of -contact with phone numbers for emergency situations. All FBO personnel who have regular contact with the public or customers of the FBO (except the FBO's pilots, office personnel, marketing personnel and offsite sales persons) shall wear attractive uniforms with appropriate insignia and nameplate so they may be readily identified. Each FBO shall control the conduct, demeanor and appearance of its employees and representatives. Upon receiving a reasonable and specific complaint from the Director concerning the conduct, demeanor or appearance of any employee, the FBO shall forthwith take all steps necessary to remove the cause of the complaint. 3. SASOs A. General Requirements for all SASOs Operating hours Eight daylight hours per day, on the same five continuous days each week, exclusive of a two week period when a SASO may, by prior notice, be closed for vacation. The operating hours shall be posted near the door to the Operator's Leased or Subleased Premises. Leased Space Each SASO shall operate out of a building located on the airport. The Leased or Subleased Premises shall be of an appropriate size to accommodate the services being offered, be accessible to the public, and be marked with appropriate external signage. Each SASO shall provide paved auto parking appropriate for the needs of the business. Responsible Personnel Each SASO shall provide the Director, and keep current, a typed list of names, addresses, and contacts of all personnel responsible for the operation and management of the SASO. B. Additional Requirements for Specific SASOs DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA 1. Flight Training SASOs SASOs providing aircraft dual and solo ground and flight instruction necessary to complete the written examination and flight check for any category of pilot certificate or rating shall, as a minimum: a. Provide at least one (1) or more FAA certified flight instructors as necessary to meet the flight training demand and schedule requirements. b. Provide at least four (4) properly licensed and maintained fixed wing aircraft and/or at least one (1) helicopter equipped to accomplish the services offered. If only helicopter instruction is offered, no fixed wing aircraft will be required. C. Provide air-conditioned classroom space of not less than 100 square feet. 2. Airframe and Power Plant Maintenance SASOs SASOs providing major or minor airframe and/or power plant servicing, maintenance, overhaul, repairs or modifications shall: a. Operate from a ventilated shop space large enough to accommodate one multi -engine Aircraft of 12,500# gross weight. b. Have on -duty at lest one (1) FAA -certified technician who posses an airframe and/or powerplant certificate, with inspection authorization, or possess and operates pursuant to repair station certificate pursuant to FAR Part 145. C. Provide equipment, supplies and parts required for GA aircraft and power plant inspection, maintenance and repair. 3. On -Demand SASOs SASO's providing On -Demand Air Transportation shall: a. Provide at least one (1) person who is appropriately licensed and rated to permit the flight activity offered by the SASO. b. Provide one properly maintained and equipped aircraft to accomplish the services offered. DocuSign Envelope ID: F720CEAF-E960-4EE8-Al5A-9EE4110B2BCA An On -Demand SASO shall have and display, a current FAR Part 135 Certificate. 4. Aircraft Rental SASOs SASOs renting aircraft to be flown by third -party, licensed pilots shall: a. Have at least one (1) person available to meet customers' needs. b. Have available for rental, a minimum of four (4) owned or leased fixed wing aircraft and/or one helicopter, all of them certified and Airworthy. These may be the same aircraft used for flight instruction if the Aircraft Rental SASO is also a Flight Training SASO. 5. Avionics Maintenance and Sales SASOs SASOs providing avionics services, which include the maintenance, repair, and installation of aircraft avionics, radios instruments, and accessories, and includes the sale of such equipment, shall: a. Operate in ventilated office or shop space on the Airport that is able to accommodate at least one fixed wing aircraft. b. Have at least one (1) trained and FAA certified technician. C. Hold the appropriate FAA certificates required for the types of services offered. 6. Aircraft Hangar Rental SASOs An Aircraft hangar rental SASO leases and rents hangars or hangar space or tie - down space to third -party aircraft owners or operators solely for those third - parties' storage of their owned or operated Aircraft. An Aircraft hangar rental SASO shall: a. Lease or construct hangars sufficient to store, in complete security, not less than twenty (20) single -engine GA Aircraft. Each hangar shall be lighted and have not less than 15 amps electrical service. SASO shall provide for its hangar tenants at least one lockable rest room for every 20 hangars or portion thereof, with an outside hose bibb. Further, SASO shall provide trash bins for use by SASO's tenants, which SASO shall empty as often as required but not less DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA than once each week, disposing of the trash at SASO's expense at a location off the Airport. b. Make known contact name and phone number for SASO, hangar availability, and rental rates by posted informational sign. Operator shall employ a system of master -keyed padlocks and shall supply each hangar tenant a discrete lock, which said tenant shall use exclusively to secure his/her rented hangar. Two copies of the master key shall be provided to the Director. C. Provide the Director, and keep current, a list of all Operator's renters, with their names addresses and phone numbers and the make, model and "N" number of their stored Aircraft, plus a list of Aircraft owners, if any, waiting for a hangar to become available for rental. d. SASO shall rent hangars for aircraft storage purposes only. Without limiting the generality of the foregoing, no hangar may be used primarily for storing or inventorying personal property that is not closely associated with the servicing, maintenance and/or care of an Airworthy Aircraft stored in the hangar. or Aircraft actively in process of being made Airworthy in the hangar, or an Aircraft being prepared for public display, or being specially prepared, treated and preserved for future rehabilitation in the hangar. Extensive Storage of personal property in any hangar, except as a incident of the hangar's primary use as aforesaid, shall constitute a breach of the SASO's Agreement with the City. e. Hangar tenants may perform only Preventive Aircraft Maintenance in accordance with 14 CFR Part 43 within their rented hangars. Any other aircraft maintenance must be performed by an authorized FBO, SASO, MSP, or by the tenant in accordance with 14 CFR Part 43.3(d). Experimental aircraft construction and maintenance is allowed in accordance with 14 CFR Parts 21 and 65. Any type of hazardous or combustible material storage shall be permitted within the hangar property only in amounts allowed under the Uniform Fire Code. The piling and storage of crates, boxes, barrels, and containers, refuse, and surplus property shall not be permitted outside the hangar. All activity in or about the hangars shall be in accordance with the requirements of the Uniform Fire Code. 7. Aircraft Sales SASOs SASOs providing new and/or aircraft sales and aircraft brokerage services shall: DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA a. Operate from an exclusively occupied office on the Airport and have at least one (1) qualified aircraft salesperson who holds a current pilot certificate with appropriate aircraft type ratings 8. Aircraft Restoration, Painting, and Refurbishing SASOs SASOs providing the restoration, painting and refurbishing of aircraft structures, propellers, accessories, interiors, exteriors, and components, shall: a. Operate from a ventilated shop space large enough to accommodate one multi -engine Aircraft of 12,500# gross weight. b. Have at least one (1) qualified person that has certificates appropriate for the work performed. C. Meet all requirements of the Uniform Fire Code. d. If painting is to be performed on the Airport, holds any and all the air quality and other permits required for same. 9. Specialized Flying Services SASOs SASOs providing specialized commercial flying services such as non-stop sightseeing tours, aerial photography or surveying, power line or pipeline patrol, firefighting or fire patrol, air ambulance, airborne mineral exploration, banner towing, and other air transportation operations specifically excluded from FAR Part 135 shall: a. Provide at least one (1) person who holds a current FAA appropriate pilot certificate and medical certificate with ratings appropriate for the operator's aircraft. b. Own or lease at least one (1) Airworthy Aircraft. 10. Commercial Skydiving Inasmuch as the Airport is located under FYI's Class C Airspace, no skydiving whatsoever is authorized at, on or from the Airport. DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA 11. Aerial Applications Aerial application operations are not authorized at, on or from the Airport. 12. Mobile Service Providers. If the Director shall determine that the significant needs of Chandler's based aircraft owners are not being adequately served by the authorized, on -airport SASOs, he may, in his discretion, authorize Mobile Service Providers who shall meet at least the following general requirements: Each MSP shall hold a City issued Commercial Aviation Operator Permit. Each MSP shall ensure compliance with Airport Security Access Plan. Each MSP shall provide sufficient qualified personnel necessary to meet the Minimum Standards for each aeronautical service provided. However, multiple responsibilities may be assigned to employees where feasible. Each MSP shall provide the Director, and keep current, a written statement of names, addresses, and contacts of all personnel responsible for the operation and management of the MSP. 7/11/05 version Last Updated 07/ 11r2005 22 J:\FCH\N-faster Documents\7-26-05, N- inimum Standards FCH (Final).doc DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA EXHIBIT "D" DocuSign Envelope ID: F720CEAF-E960-4EE8-A15A-9EE4110B2BCA Exhibit "D" DISCLOSURE OF CONFLICT OF INTEREST Temporary Use Permit (TUP) between City of Fresno ("Fresno') Fiinht I avP1 Aviation LLC. (" Flioht Level Aviation ") YES* NO 1 Are you currently in litigation with the City of Fresno or any of its ❑ ❑x agents? 2 Do you represent any firm, organization or person who is in ❑ x❑ litigation with the City of Fresno? 3 Do you currently represent or perform work for any clients who do ❑ 0 business with the City of Fresno? 4 Are you or any of your principals, managers or professionals, owners or investors in a business which does business with the ❑ 0 City of Fresno, or in a business which is in litigation with the City of Fresno? 5 Are you or any of your principals, managers or professionals, related by blood or marriage to any City of Fresno employee who ❑ ❑x has any significant role in the subject matter of this service? 6 Do you or any of your subcontractors have, or expect to have, any interest, direct or indirect, in any other contract in connection with ❑ Z this Project? * If the answer to any question is yes, please explain in full below. N/A Explanation: ❑ Additional page(s) attached. Signature 7/11/2022 Date Tustin zaklan (name) Flight Level Aviation LLc (company) 524 W. Kearney Blvd (address) Fresno CA 93706 (city state zip)