(A) The Pleasanton Municipal Airport shall hereinafter be referred to as the Airport Authority. A ground lease or hangar tenant share hereinafter be referred to as "Airport Tenant".
(B) The following minimum standards and requirements for commercial aeronautical activities have been established in the public interest for the safe and efficient operation of the City of Pleasanton Municipal Airport; to enhance its orderly growth; to preclude the granting of an exclusive right to conduct an aeronautical activity in violation of § 308(a) of the Federal Aviation Act of 1958; to conform to Title VI of the Civil Rights Act of 1964 and Part 21 of the Department of Transportation Regulations, and to assure to all lessees the availability of airport property on fair and reasonable terms and without unjust discrimination. If and when there is a conflict between these standards and the City of Pleasanton Municipal Airport Rules and Regulations, the latter shall prevail.
(1) A COMMERCIAL FIXED BASE OPERATOR is defined as any person, firm, or corporation performing any of the functions or furnishing any of the services as hereinafter set out for fixed base operators at the Pleasanton Municipal Airport. No person, firm, or corporation shall engage in any commercial activity as a FIXED BASE OPERATOR as herein defined unless the same is done in full compliance with the standards, rules and regulations herein set forth.
(2) An AIRPORT TENANT is defined as any person, firm, or corporation leasing property at the Pleasanton Municipal Airport for aeronautical purposes, who is not a fixed base operator. An AIRPORT TENANT may hangar his aircraft on his leased property subject to the provisions of § 71.04 hereof.
(3) All fixed base operators and airport tenants shall protect the public generally, the customers or clients of such fixed base operators, and the Authority from any and all lawful damages, claims, or liability and shall carry comprehensive general liability insurance in a company authorized to do business in the State of Texas with limits as prescribed in the respective categories, with the Authority named as an additional insured, which policies must be approved by the Authority and a certificate of insurance thereof furnished to the Authority. It is further understood that as circumstances in the future dictate, the Authority may require an increase in bodily injury and property damage insurance.
(4) A fixed base operator shall satisfy the lessor that it is technically and financially able to perform the services of a fixed base operator. This shall include the responsibility for demonstrating continued financial solvency and business ability by the submitting of an annual balance sheet, credit references and any other proof that the lessor may require from time to time. In cases of doubt by the lessor to such ability of a fixed base operator, the lessor may conduct a hearing to determine appropriate action. In each instance, the lessor shall be the final judge as to the qualifications and financial ability of the lessee. The Authority will not accept an original request to lease land area unless the proposed lessee puts forth in writing a proposal which sets forth the scope of operation he proposes, including the following:
(a) The service he will offer.
(b) The amount of land he desires to lease.
(c) The building space he will construct or lease.
(d) The number of aircraft he will provide.
(e) The number of persons he will employ.
(f) The hours of proposed operation.
(g) The amount and types of insurance coverage he will maintain.
(h) Evidence of his financial capability to perform and provide the above services and facilities.
(5) Any person, firm or corporation capable of meeting the minimum standards set forth herein for any of the stated fixed base operator categories is eligible to become a fixed base operator at the airport, subject to the execution of a written lease containing such terms and conditions as may be determined by the Authority. A fixed base operator or airport tenant shall not engage in any business or activity on the airport other than that authorized under his particular category or categories. Any fixed base operator desiring to extend his operation into more than one category or to discontinue operations in a category, shall first apply in writing to the Airport Authority for permission to do so, setting forth in detail the reasons and conditions for the request. The Airport Authority shall then grant or deny the request on such terms and conditions as the Authority deems to be prudent and proper under the circumstances. Each fixed base operator shall provide his own buildings, personnel and equipment, and other requirements as herein stated upon land leased from the Authority.
(6) All fixed base operators at said airport shall provide ample lounges and restrooms for their customers and shall make telephone service conveniently and readily available for public use.
(7) All construction required of such operators shall be in accordance with design and construction standards required or established by the Authority for the facility or activity involved. Title to any and all buildings and appurtenances, which may be built on Authority property, shall revert to the Authority, when and if the subject lessee vacates the lease for any reason.
(8) The rates or charges for any and all activities and services of such operators shall be determined by the operators, subject to the approval of the Authority, and subject, further, to the requirement that all such rates or charges shall be reasonable and be equally and fairly applied to all users of the services.
(9) All operators at the airport shall be full time or part time, financially sound and progressive business enterprises, with adequately manned and equipped facilities, including ample office facilities, and who observe normal or specifically required business hours.
(10) All fixed base operators shall, at their own expense, pay all taxes and assessments against any buildings or other structures placed on the premises by them, as well as all taxes and assessments against the personal property used by them in their operations.
(11) All operators shall abide by and comply with all state, county and city laws and ordinances, the rules and regulations of the Authority, and the rules and regulations of the state and the Federal Aviation Administration (FAA).
(12) In the event, the Authority constructs the physical plant facilities (hangars, etc.) for use by any operator under the provisions of any lease or other contract, such lease or contract with such operators shall be on such terms and conditions as to guarantee a full return of the investment within a reasonable time period as established by the city.
(13) All operators shall provide and pay for all lights, gas, electrical current, water, sewer charges and garbage collection charges used or incurred anywhere in or about the leased premises, and shall pay the charges made therefore by the suppliers thereof promptly when due.
(14) All contracts and leases between such operators and the Authority shall be subordinate to the provisions of any existing or future agreement(s) between the Authority and the United States, relative to the operation or maintenance of the Airport.
(15) No fixed base operators shall sublease or sublet any premises leased by such operator from the Airport Authority, or assign any such lease, without the prior written approval of the Authority, and any such subletting or assignment shall be subject to all of the minimum standards herein set forth.
(16) In the event the lessee sublets any portion of his lease, the sublessee must agree to assume the full obligations of the lease as set out herein and must agree to fully cooperate with the Authority in seeing that these standards are complied with. The sublessee shall immediately comply with any reasonable request or direction of the Authority as it relates to the enforcement of these standards.
(17) In the event that the lessee or sublessee fails to comply fully with these standards or fails to comply with the reasonable request or direction of the Authority as it relates to these standards, said lessee or sublessee shall be in default. If said default continues for more than 30 days after notice of said default, the Authority may terminate the lease. Said lessee is responsible for the performance of the sublessee.
(18) Fixed base operators shall have the right to use common areas and facilities of the airport, including runways, taxiways, aprons, roadways, floodlights, landing lights, signals and other conveniences for the takeoff, flying and landing of aircraft of lessee.
(19) Beginning with the effective date of adoption of these minimum standards, leases to fixed base operators and airport tenants shall be limited to a maximum of 25 years, including options. In addition, leases shall, at the discretion of the Authority, be subject to review, in relation to the consumer price index. In this regard, when at the end of each of said five-year period, the cost of living index is determined by the Authority to be higher than the previous five-year period, the rental terms thereof shall be increased to such percentage of increase or of said cost of living index. If at the end of such five-year period the said cost of living index has decreased, the Authority shall take no action to review or reevaluate the lease.
(20) Lessees will, at all times during the continuance of the term of the lease and any renewal or extension thereof, conduct, operate and maintain for the benefit of the flying public, the fixed base operation provided for and described therein, and provide all parts and services as defined and set forth, and will make all such services available to the public and that it will devote its best efforts for the accomplishment of such purposes and that it will at all times charge fair, reasonable and not unjustly discriminatory prices to patrons and customers for all merchandise or materials and services furnished or rendered. Notwithstanding anything contained in a lease that may be or appear to the contrary, it is expressly understood and agreed that the rights granted hereunder are nonexclusive and the lessor reserves the right to grant similar privileges to another operator or operators upon formal application by that operator, and upon demonstration of compliance with divisions (B)(4) and (B)(5) herein.
(21) All contracts and leases between such operators and the Authority shall be subordinate to the right of the Authority during time of war or, national emergency to lease the landing area or any part thereof to the United States Government for military or naval use, and if any such lease is executed, the provisions of any contracts or leases between such operators and the Authority, insofar as they are inconsistent with the provisions of the lease to the government, shall be suspended.
(22) Upon adoption of these standards all leases entered into and any amendments to existing leases shall be in accordance with the standards. Present lease holders shall be granted 12 months to comply with all standards set forth. Requests for exceptions to these standards shall be made in writing to the Authority.
(23) The lessee shall remove from the airport or otherwise dispose of in a manner approved by the Authority all garbage, debris, and other waste material (whether solid or liquid) arising out of its occupancy of the premises or out of its operations. Said lessee shall keep and maintain his leased premises in a neat and orderly manner; lessee shall keep the grass cut and the building painted. Any garbage, debris, or waste which may be temporarily stored in the open shall be kept in suitable garbage or waste receptacles, the same to be made of metal and equipped with tight fitting covers and to be of a design to safely and properly contain whatever may be placed therein. The lessee shall use extreme care when effecting removal of all such waste.
(24) The Authority reserves the right to enter upon any premises leased to fixed base operators at reasonable times for the purpose of making such inspections as it may deem expedient to the proper enforcement of these minimum standards and for the proper enforcement of any covenant or condition of any fixed base operator's contract or lease agreement.
(25) The Authority recognizes the rights of any person, firm or corporation operating aircraft on the airport to perform services on its own aircraft with its own regular employees (including, but not limited to maintenance, repair and fueling) that it may choose to perform. Aircraft fueling accomplished under this provision shall be in strict accordance with Categories D and E herein and any safety regulations and/or ordinances as referenced in division (B)(11).
(26) All operations conducted at the airport will be conducted in the safest manner possible and for the maximum benefit of the flying public and the citizens of the surrounding area.
(27) Where these standards call for a minimum square footage of space, and the applicant is permitted to conduct more than one activity, then such applicant shall have the minimum square footage for that activity which requires the greatest minimum square footage.
(28) Standard lease provisions. All leases, subleases, contracts or franchises for airport property, or for airport operations or use, shall contain the following standard provisions:
(a) The right to conduct aeronautical activities for furnishing services to the public is granted the lessee subject to lessee agreeing:
1. To furnish the airport's services on a fair and equal basis to all users thereof; and
2. To charge fair and reasonable prices for each unit or service; provided that the lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers.
(b) The lessee for himself, his personal representatives, successors in interest, and assigns, as a 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, color, 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 of any improvements on, over, or under such land and the furnishings of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination; and
3. That the lessee shall use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said regulations may be amended.
(c) The lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to ensure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. The lessee assures that it will require that it's covered sub-organizations provide assurances to the lessee that they similarly will undertake affirmative action programs and that they will require assurances from their sub-organizations, as required by 14 CFR Part 152, Subpart E, to the same effect.
(d) That in the event of breach of any of the preceding nondiscrimination covenants, lessor shall have the right to terminate the license, lease, permit, etc., 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.
(e) During the time of war or national emergency, lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and, if such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the lease to the government, shall be suspended.
(f) No right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the airport from performing any services on its own aircraft with its own regular employees (including but not limited to maintenance, repair, and fueling) that it, may choose to perform.
(g) It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right forbidden by § 308(a) of the Federal Aviation Act of 1958 or for aeronautical activities such as but not limited to:
1. Charter operations;
2. Pilot training;
3. Aircraft rental;
4. Aerial photography;
5. Crop dusting;
6. Sale of aviation petroleum products;
7. Air carrier operations;
8. Aircraft sales, and service incidental thereto; and
9. Any other activity which, because of its direct relationship to the operation of aircraft, can be regarded as an aeronautical activity.
(h) Lessor reserves the right, in a reasonable and nondiscriminatory manner, to further develop or improve the landing area of the airport as it sees fit, regardless of the desires or views of lessee and without interference or hindrance. However, lessor shall notify lessee in writing, 60 days prior to planned development.
(i) Lessor shall have the right, but not the obligation, 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 activities of lessee in this regard.
(j) All hangars, buildings, properties or land on the airport, shall be maintained in a clean, attractive, weed free, well painted, junk free condition. If an operator or lessee has an area where it normally keeps damaged aircraft, aircraft parts, construction fixtures, and jigs, barrels, containers, or other unattractive items, lessee shall enclose such an area with a screen that will hide such area from public view.
(k) Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstructions together with the right to prevent the erection of any building or other structure on or adjacent to the airport which would limit the usefulness of the airport or constitute a hazard to aircraft.
(l) This agreement shall be subordinate to the provisions of any existing or future agreement between lessor and the United States, relative to the operation or maintenance of the airport.
(m) Incorporated into this agreement, by reference and as though set forth herein verbatim, are the minimum standards for fixed base operators and airport tenants adopted by the lessor. Such minimum standards shall be lawful, reasonable and nondiscriminatory. Further, all parties hereto agree to comply with any and all laws and regulations, including those of the FAA, and will not permit the premises covered by this agreement to be used for any unlawful or improper purpose.
(n) Each lessee shall at all times have in effect liability insurance for all of lessee's operations in the amounts set out in the standard for the particular activity in question and referenced in the minimum standards. Such insurance policies shall further name the lessor as additional insureds. Certificates of such insurance shall be furnished by lessee to the lessor and a certificate presently then in effect shall be on file at all times.
(o) The standards and regulations enacted by the governmental agency responsible for the operation of the airport, now or in the future, may provide for use charges to be paid by those using, occupying, or conducting operations at the airport. Such charges may be based upon square footage, receipts or other reasonable basis, to be established by such standards and regulations. Lessee agrees to pay such charges as same are due and owing under any such standards or regulations now or hereafter in effect. Any such use charges shall be lawful, reasonable and nondiscriminatory.
(p) Lessor may, on account of the breach of any provision hereof, including the standards and regulations incorporated herein by reference, terminate this agreement and eject the party in violation in accordance with the provisions of this lease. (Details concerning insolvency, notice, and other matters concerning lessee's default may be in a particular lease).
(q) Lessee agrees to save and hold harmless the lessor and its agents, servants, and employees of and from any and all liabilities, expenses, causes of action, damages and attorneys' fees resulting or to result from any of lessee's businesses, operations, occupancy, or use of the airfield, or resulting from any act or omission of lessee's agents, servants or employees. And this indemnity agreement shall apply and protect such lessor and its agents, servants, and employees, even though it be contended, or even established, that said lessor or its agents, servants, or employees were negligent, or that their conduct or omission in any way caused or contributed to any such liability, expense, damage, cause of action, or attorneys' fees.
(r) The purpose of the lease and the operations to be conducted by lessee or sublessee, and the identity of the premises to be occupied, are set forth in this lease. No other operations, business, or occupancy may be had or done without the additional written consent of the lessor.
(s) This agreement may not be assigned, in whole or in part, nor may the premises described herein be subleased, in whole or in part, without the prior written consent of the lessor. Such consent shall not be unreasonably withheld.
(t) In the event lessee becomes insolvent, or the subject of kind or chapter of bankruptcy proceeding, or if a receiver, assigns or her liquidating officer is appointed for the business of lessee, then lessor may cancel this lease at lessor's option upon giving written notice to lessee.
(Ord. 20-1245, passed 5-21-2020)