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City of El Paso De Robles, Paso Robles Municipal; Airport that such tax payment shall not reduce any rents, fees, or other charges due Lessor hereunder and any such tax shall be the liability of and be paid by Lessee.
10.4. Maintenance and Repair. Lessee shall, at its sole risk, cost, and expense, diligently keep and properly maintain and repair the Leased Premises, the Improvements thereto (or located thereon) including painting, maintenance of landscape areas, pavements, utilities, and its personal property, in first-class order, repair, and condition and in a safe, clean, orderly, and sanitary condition to the complete satisfaction of Lessor, and in compliance with all applicable Legal Requirements, throughout the term of this Agreement.
10.4.1. Lessee shall be responsible for the maintenance, repair, and replacement, at Lessee’s sole risk, cost, and expense, of the Improvements and all the main support systems exclusively serving the Improvements, including plumbing (but excluding the portions of the same that are underground), electrical, HVAC, foundation, framing, exterior walls of the Leased Premises, and structural support systems. Lessee will be responsible for the maintenance and repair of the roof for non-shared Improvements at Leased Premises.
Notwithstanding the foregoing, except to the extent any maintenance, repair, or replacement is made necessary by the negligence of Lessee, Lessor shall be responsible for the replacement of the roof related to its Leased Premises improvements.
10.4.2. Liens. Lessee further agrees that if and when any repairs, alterations, additions, or betterments shall be made by Lessee as required by this Section, Lessee shall promptly pay for all labor done or materials furnished and shall keep the Leased Premises free and clear of any lien or encumbrance of any kind whatsoever related to the repair.
10.4.3. Waiver of Civil Code. Lessee expressly waives the benefit of any statute now or hereinafter in effect, including the provisions of sections 1941 and 1942 of the Civil Code of California, which would otherwise afford Lessee the right to make repairs at Lessor’s expense or to terminate this Agreement because of Lessor’s failure to keep Leased Premises in good order, condition, and repair.
10.4.4. In the event Lessee fails to comply with the entirety of Section 10.4. of this Agreement, Lessor may notify Lessee and if Lessee fails to correct the condition within fourteen (14) calendar days of Lessor’s written notice, Lessor may enter the Leased Premises and perform any necessary maintenance, repair, restoration, replacement, or cleaning and Lessee shall pay one hundred twenty-five percent (125%) of the costs and expenses thereof to Lessor within fourteen (14) calendar days upon receipt of an invoice from Lessor. The making of such maintenance, repair, restoration, replacement, or cleaning by Lessor shall in no event be construed as a waiver of the duty of Lessee to perform any necessary maintenance, repair, restoration, replacement, or cleaning as provided in this Section.
10.5. Utilities. Lessee shall pay all fees and charges due and owning for all utilities (including connections) serving the Leased Premises. Such services shall include, but not be limited to: water, gas, electricity, sewer, telephone, cable, trash collection, etc.
10.6. Costs, Expenses, and Other Charges. Lessee shall pay all other costs, expenses, and other charges of every kind and nature whatsoever relating to the Leased Premises and/or Lessee’s Activities during the term of this Agreement.
10.7. Licenses, Certificates, And Permits. Lessee, at its sole risk, cost, and expense, shall obtain any and all required licenses, certificates, permits, or other authorizations from any and all Agencies having jurisdiction necessary for the uses and Activities authorized in this Agreement. Lessee shall not engage in or permit others to engage in activities on the Leased Premises in violation of any license, certificate, permit, or other authorization. If the attention of Lessee is called to any such violation, Lessee will immediately notify Lessor and cease and desist from and immediately cause to be Attachment 1
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City of El Paso De Robles, Paso Robles Municipal; Airport corrected such violation. Lessee shall pay all penalties, fines, costs, or expenses associated with any such violation or correction.
10.8. Based Aircraft Report. Beginning October 1, 2025, Lessee shall maintain and furnish on or before anniversary date of this Agreement (or upon request of Lessor) a report identifying all Based Aircraft on the Leased Premises. The report shall identify the aircraft owner, contact information, registration number, year, make, and model of the Aircraft.
10.9. Business Status. Lessee shall notify Lessor immediately of any changes to Lessee’s business or corporate structure or status or if Lessee’s authorization to conduct business at the Airport, in the State, or in the United States will be (or has been) suspended or revoked.
10.10. Signage and Lighting. All signage must be approved in writing by Lessor and shall conform to Section 3.4.1 of this Agreement.
10.11. Special Events. Lessee shall not conduct or hold special events without obtaining (a) appropriate permits and approval from the Agencies having jurisdiction and (b) the prior written consent of Lessor.
11. REQUIRED FAA CLAUSES
11.1. Non-Exclusive Use.
11.1.1. This Agreement and all of the provisions hereof shall be subject to whatever right the United States Government has now or may have in the future or may acquire affecting the control, operation, regulation, and taking over of the Airport or the exclusive or nonexclusive use of the Airport by the United States Government during the time of war or national emergency. If any such agreement is executed, the terms and conditions of this Agreement shall be subordinate to the provisions of any agreement between Lessor and the United States relative to the Airport.
11.1.2. It is clearly understood by Lessee that no right or privilege has been granted which would operate to prevent any person, firm, or corporation operating Aircraft at the Airport from performing any services on its own Aircraft with its own Employees (including but not limited to, fueling, maintenance, and repair) that it may choose to perform.
11.1.3. Nothing in this Agreement shall be construed, in any way, as Lessor granting Lessee an Exclusive Right to engage in any Aeronautical Activity at the Airport.
11.2. Non-Discrimination.
11.2.1. Lessee, for itself, its heirs, successors, and assigns, as a part of the consideration hereof, does hereby covenant and agree that in the event Improvements are constructed, maintained, or otherwise operated on the Leased Premises described in this Agreement for a purpose for which a Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such Improvements in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the DOT, and as said Legal Requirements may be promulgated or amended from time to time.
11.2.2. Notwithstanding any other provision of this Agreement, during the performance of this Agreement, Lessee, for itself, its heirs, successors, and assigns, as part of the consideration of this Agreement does hereby agree, as a covenant running with the land, that: (a) no person on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability shall be excluded from participating in any activity conducted with or benefiting from Federal assistance. ; (b) in the construction of any Improvements on, Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
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City of El Paso De Robles, Paso Robles Municipal; Airport over, or under the Leased Premises, and the furnishing of services therein or thereon, no person on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability shall be excluded from participating in any activity conducted with or benefiting from Federal assistance.; (c) in the breach of any of the above nondiscrimination covenants, Lessor shall have the right to terminate this Agreement and to reenter and repossess the Leased Premises and hold the same as if this Agreement had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 have been followed and completed, including expiration of appeal rights; (d) Lessee, for itself, its heirs, successors, and assigns, as a part of the consideration hereof, does hereby agree as a covenant running with the land that in the event Improvements are constructed, maintained, or otherwise operated on the Leased Premises for a purpose for which a DOT program or activity is extended or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such improvements and services in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the DOT, and as said Regulations may by amended.
11.2.3. Lessee will comply with pertinent statues, Executive Orders, and such rules as are promulgated or amended from time to time to assure that no person shall, on the grounds of race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability be excluded from participating in any activity conducted with or benefiting from federal assistance. This provision obligates Lessee or its transferee for the period during which federal assistance is provided, or is in the form of personal property or real property or interest therein or structures or Improvements thereon.
In these cases, this provision obligates Lessee or any transferee for the longer of the following periods: (a) the period during which the Leased Premisesis used by the sponsor or any transferee for a purpose for which federal assistance is extended, or for another purpose involving the provision of similar services or benefits, or (b) the period during which Lessor or any transferee retains ownership or possession of the Leased Premises.
11.2.4. In the case of contractors, this provision binds the contractors from the bid solicitation period through the completion of the contract.
11.2.5. Lessee agrees it will practice non-discrimination in its activities and will provide Disadvantaged Business Enterprise (DBE) participation as required by the sponsor, in order to meet Lessor’s goals, or required by the FAA.
11.2.6. Lessee shall not discriminate in any manner against any employee or employee applicant for employment because of political or religious opinion or affiliation, race, color, national origin (including limited English proficiency), creed, sex (including sexual orientation and gender identity), age, or disability and further, Lessee shall include a similar clause in all subcontracts. Lessee agrees Lessor has the right to take such action against Lessee as the government may direct to enforce this provision of this Agreement.
11.2.7. Lessee shall insert Section 11.2.1. through Section 11.2.6. in any Sublease through which said Lessee grants a right or privilege to any person, firm, or corporation to render accommodations to the public on the Leased Premises.
12. DEFAULTS AND REMEDIES
12.1. Defaults. In addition to the defaults and breaches identified in this Agreement, the occurrence of any one (1) or more of the following events shall constitute a material default or breach of this Agreement by Lessee:
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
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City of El Paso De Robles, Paso Robles Municipal; Airport
12.1.1. The filing by Lessee of a voluntary petition in bankruptcy.
12.1.2. The making by Lessee of any general arrangement or assignment for the benefit of creditors; Lessee’s becoming a “debtor” as defined in 11 USC §101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within sixty (60) calendar days); the appointment of a bankruptcy trustee or receiver to take possession of all or substantially all of Lessee’s assets located at or on the Leased Premises or of Lessee’s interest in this Agreement where possession is not restored to Lessee within thirty (30) calendar days; or the attachment, execution, or other judicial seizure of all or substantially all of Lessee’s assets located at or on the Leased Premises or of Lessee’s interest in this Agreement, where such seizure is not discharged within thirty (30) calendar days.
12.1.3. The filing of any lien against the Leased Premises resulting from any act, error, omission, or negligence of Lessee which is not discharged or contested in good faith as determined by Lessor by proper legal proceedings within fourteen (14) calendar days of receipt of actual notice by Lessee, unless Lessee posts a bond within this time period equal to the amount of the lien.
12.1.4. The abandonment by Lessee of the Leased Premises (as defined by California Civil Code section 1951.3), the Lessee's absence from the Leased Premises for fourteen (14) consecutive calendar days, or Lessee’s failure to an on-going business on the Leased Premises or at the Airport for a period of fourteen (14) calendar days or more, notwithstanding circumstances beyond Lessee’s control.
12.1.5. The transfer of Lessee's interest herein by other operation of law.
12.1.6. Lessee becomes in arrears in the payment of rent, fees, or other charges required to be made by Lessee hereunder, as provided in this Agreement, where such failure shall continue for a period of ten (10) business days after written notice thereof from Lessor to Lessee. In the event Lessor serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable Unlawful Detainer statutes, such Notice to Pay Rent or Quit shall also constitute the notice required by this subparagraph.
12.1.7. The falsification by Lessee of any of its records so as to deprive Lessor of any of its rights, privileges, rents, fees, or other charges under this Agreement or any other agreement between the Parties.
12.1.8. The failure by Lessee to observe or perform any of the terms and conditions of this Agreement where such failure continues for a period of thirty (30) calendar days after written notice thereof from Lessor to Lessee; provided, however, that if the nature of Lessee’s default is such that more than thirty (30) calendar days are reasonably required for its cure, then Lessee shall not be deemed to be in default if Lessee commenced such cure within said thirty (30) calendar day period and thereafter diligently prosecutes such cure to completion.
12.1.9. A sale of stock in Lessee's business entity which divests the present members of controlling interest (i.e., should current members cease to have decision-making powers for the business entity) absent written consent from Lessor, which shall not be unreasonably withheld.
12.1.10. The sale, assignment, or transfer or the attempted sale, assignment, or transfer of this Agreement by Lessee. Negotiations by Lessee for the sale, assignment, or transfer of this Agreement shall not be construed as an "attempted transfer”.
12.1.11. Any default or breach of this Agreement by Lessee shall constitute a default or breach by Lessee of all other agreements between the Parties.
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
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City of El Paso De Robles, Paso Robles Municipal; Airport
12.1.12. The failure by Lessee to complete any required Improvements within the time frames provided in this Agreement. Such default shall not be subject to any right to cure by Lessee.
12.2. Remedies. In the event of any material default or breach by Lessee, Lessor may at any time thereafter, following any notice required by statute, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default or breach:
12.2.1. Terminate Lessee’s right to possession of the Leased Premises by any lawful means, in which case this Agreement shall terminate and Lessee shall immediately and peacefully surrender possession of the Leased Premises and Improvements to Lessor in the same condition as when received, with the exception of ordinary and reasonable wear and tear.
12.2.2. In the event of termination, Lessor shall be entitled to recover from Lessee all damages incurred by Lessor by reason of Lessee’s material default or breach including but not limited to: (a) the cost of recovering possession of the Leased Premises and Improvements; (b) expenses of re-letting including necessary renovation and alteration of the Leased Premises and Improvements; (c) reasonable attorneys’ and court fees, costs, and expenses; (d) the worth at the time of the award of the unpaid rent, fees, or other charges that had been earned at the time of termination of this Agreement; (e) the fees, costs, and expenses associated with the removal, storage, and/or disposal of personal property from the Leased Premises at Lessee’s sole risk, cost, and expense and without any liability to Lessor for resulting damage; and (f) the amount of unpaid rent, fees, and other charges for the balance of the term.
12.2.3. Maintain Lessee’s right to possession, in which case this Agreement shall continue in effect whether or not Lessee shall have abandoned the Leased Premises. In such event, Lessor shall be entitled to enforce all of Lessor’s rights and remedies under this Agreement, including the right to recover rent, fees, and other charges as they become due hereunder.
12.2.4. Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the State. Lessor shall have all remedies provided by law and equity.
12.3. Non-Performance or Delay Default. No failure to perform or delay in performance which is caused by any war, national emergency, act of nature, or natural disaster shall be deemed an event of default or breach.
12.4. Continuing Obligations. No termination shall relieve Lessee of the obligation to deliver and perform any outstanding requirements and agreements prior to the effective date of the termination and/or continue to be liable under this Agreement.
12.5. No Relief from Forfeiture After Default. Lessee waives all rights of redemption or relief from forfeiture under California Code of Civil Procedure sections 1174 and 1179, and any other present or future law, in the event Lessee is evicted or Lessee otherwise lawfully takes possession of the Leased Premises by reason of any default or breach of this Agreement by Lessee.
13. TERMINATION BY LESSEE
13.1. If Current, in Good Standing, and if the Leased Premises and Improvements are in good condition and subject to providing written notice to Lessor, Lessee may terminate this Agreement after the occurrence of one (1) or more of the following events:
13.1.1. permanent abandonment or closure of the Airport;
13.1.2. the lawful assumption by the United States Government, or any authorized Agency of the operation, control, use, or occupancy of the Airport, or any substantial part or parts Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 19
City of El Paso De Robles, Paso Robles Municipal; Airport thereof, in such manner as to substantially restrict Lessee from conducting the uses or Activities authorized in this Agreement for a period of at least ninety (90) calendar days;
13.1.3. the default or breach by Lessor of any of the terms and conditions of this Agreement required to be performed by Lessor and the failure of Lessor to remedy such default or breach for a period of thirty (30) calendar days, or a reasonable period of time to cure so long as the cure is commenced within thirty (30) calendar days, after receipt from Lessee of written notice; and
13.1.4. in the event of substantial Condemnation or eminent domain which prevents or substantially impairs the conduct of Lessee’s Activities or equates to fifty percent (50%) or more of the total Leased Premises. If terminating this Agreement, Lessee shall notify Lessor of termination within thirty (30) calendar days of receiving notice of Condemnation or eminent domain. If Lessee does not notify Lessor of termination, the Condemnation or eminent domain shall be considered a partial acquisition.
14. CONDEMNATION OR EMINENT DOMAIN
14.1. General. In the event of the acquisition by Condemnation or the exercise of the power of eminent domain (by any governmental or other permitted Agency to take property for public use) of interest in all or a portion of the Leased Premises, Lessee shall not institute any action or proceeding or assert any claim against Lessor for Compensation or consideration of any nature whatsoever and any provision contained herein contrary to the provisions of this Section shall have no force or effect.
14.1.1. All Compensation or consideration awarded or paid upon a total or partial acquisition of the Leased Premises (which for these purposes shall not include Compensation or consideration from Lessor) shall belong to and be the Property of Lessor without any participation by Lessee.
14.1.2. Nothing contained herein shall be construed or preclude Lessee from recovering directly from the condemning Agency the value of any claim, that may exist, for loss of business, or depreciation, damage, or costs or expenses of removal, or for the value of Lessee’s personal Property; provided, however, that no such claim shall diminish or otherwise adversely affect Lessor’s award.
14.2. Total. In the event of the acquisition by Condemnation or eminent domain of all interest in the Leased Premises, Lessee’s obligation to pay rents, fees, or other charges and the leasehold estate created shall cease and terminate as of the date title of the Leased Premises is transferred to the governmental or other permitted Agency taking the Leased Premises for public use.
14.3. Substantial and Partial. In the event of the acquisition by Condemnation or eminent domain of a portion of interest in the Leased Premises, Lessee’s obligation to pay rents, fees, or other charges shall cease and terminate as it pertains to the specific portion of the Leased Premises taken as of the date title of the Leased Premises is transferred to the governmental or other permitted Agency taking the Leased Premises for public use. In the event of partial Condemnation or eminent domain, rent shall be adjusted accordingly.
15. FORCE MAJEURE
15.1. General. If either Party shall be delayed, hindered in, or prevented from, the performance of the terms and conditions of this Agreement by reason of strikes, lockouts, labor disputes, acts of nature, inability to obtain labor, inability to obtain materials or reasonable substitutes, governmental restrictions, governmental regulation, governmental controls, judicial orders, enemy or hostile governmental actions, civil commotion, fire or other casualty, and other causes beyond the reasonable control of the Party (“Permitted Delay”), such Party shall be excused for the period of time equivalent to the delay caused by such Permitted Delay.
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 20
City of El Paso De Robles, Paso Robles Municipal; Airport
15.1.1. Notwithstanding the foregoing, any extension of time sought by Lessee for a Permitted Delay shall be conditioned upon it providing written notice of such Permitted Delay to Lessor within fourteen (14) calendar days of the event causing the Permitted Delay.
15.1.2. In the event any work performed by Lessee or Lessee’s contractors results in a strike, lockout, and/or labor dispute, the strike, lockout, and/or labor dispute shall not excuse the performance by Lessee of the terms and conditions of this Agreement.
15.1.3. In no event shall Lessee be relieved of its obligations to pay Lessor the rents, fees, or other charges due and owing, as set forth in this Agreement.
16. WAIVER
16.1. Waiver by Lessor of one (1) or more term or condition of this Agreement or any default or breach of a term or condition of this Agreement shall not be construed as a waiver of any other term or condition of this agreement or subsequent default or breach. The subsequent acceptance by a Party of the performance of any term or condition of this Agreement by another Party shall not be deemed to be a waiver of any term or condition of this Agreement.
16.2. The exercise of any remedy, right, option, or privilege hereunder by Lessor shall not preclude Lessor from exercising the same or any and all other remedies, rights, options, and privileges hereunder and Lessor's failure to exercise any remedy, right, option, or privilege at law or equity, or otherwise which Lessor may have, shall not be construed as a waiver.
16.3. Failure on the part of Lessor to enforce any of the terms and conditions of this Agreement shall not be construed as or deemed to be a waiver or a relinquishment of the right to enforce such terms and conditions.
16.4. The acceptance by Lessor of any payment of rents, fees, or other charges shall not be construed as or deemed to be a waiver by Lessor of any default or breach by Lessee of any condition, obligation, privileges, or agreement contained herein and shall not be construed as or deemed to be a waiver of Lessor’s right to terminate this Agreement.
17. HAZARDOUS MATERIALS
17.1. Hazardous Materials Defined. The term “Hazardous Materials” shall mean any toxic or hazardous substance, material, or waste; pollutant or contaminant; or infectious or radioactive material, including but not limited to, those substances, materials, or wastes regulated now or in the future under any of the following Legal Requirements and any and all of those substances included within the definitions of “hazardous substances”, “hazardous waste”, “hazardous chemical substance or mixture”, “imminently hazardous chemical substance or mixture”, “toxic substances”, “hazardous air pollutant”, “toxic pollutant”, or “solid waste” in the (a) CERCLA or Superfund as amended by SARA, 42 U.S.C. Sec. 9601 et seq., (b) RCRA, 42 U.S.C. Sec. 6901 et seq., (c) CWA., 33 U.S.C.
Sec. 1251 et seq., (d) CAA, 42 U.S.C. 78401 et seq., (e) TSCA, 15 U.S.C. Sec. 2601 et seq., (f) The Refuse Act of 1899, 33 U.S.C. Sec. 407, (g) OSHA, 29 U.S.C. 651 et seq. (h) Hazardous Materials Transportation Act, 49 U.S.C. Sec. 1801 et seq., (i) USDOT Table (40 CFR Part 302 and amendments) or the EPA Table (40 CFR Part 302 and amendments), (j) California Superfund, Cal.
Health & Safety Code Sec. 25300 et seq., (k) Cal. Hazardous Waste Control Act, Cal. Health & Safety Code Section 25100 et seq., (l) Porter-Cologne Act, Cal. Water Code Sec. 13000 et seq., (m) Hazardous Waste Disposal Land Use Law, Cal. Health & Safety Code Sec. 25220 et seq., (n) Proposition 65, Cal. Health and Safety Code Sec. 25249.5 et seq., (o) Hazardous Substances Underground Storage Tank Law, Cal. Health & Safety Code Sec. 25280 et seq., (p) California Hazardous Substance Act, Cal. Health & Safety Code Sec. 28740 et seq., (q) Air Resources Law, Cal. Health & Safety Code Sec. 39000 et seq., (r) Hazardous Materials Release Response Plans and Inventory, Cal. Health & Safety Code Secs. 25500-25541, (s) TCPA, Cal. Health and Safety Code Secs. 25208 et seq., and (t) regulations promulgated pursuant to said Legal Requirements or any Attachment 1
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Loyd’s Aviation Fixed Base Operator Lease Agreement 21
City of El Paso De Robles, Paso Robles Municipal; Airport replacement thereof, or as similar terms are defined in the federal, state, and local Legal Requirements. Hazardous Materials shall also mean any and all other substances, materials, and wastes which are, or in the future become, regulated under applicable federal, state, or local Legal Requirements for the protection of health or the environment, or which are classified as hazardous or toxic substances, materials or wastes, pollutants or contaminants, as defined, listed or regulated by any federal, state, or local Legal Requirement or by common law decision, including without limitation: (a) trichloroethylene, tetracholoethylene, perchloroethylene, and other chlorinated solvents; (b) any petroleum products or fractions thereof; (c) asbestos, (d) polychlorinated biphenyls; (e) flammable explosives; (f) urea formaldehyde; and (g) radioactive materials and waste.
17.2. Compliance with Legal Requirements. Lessee shall use and store Hazardous Materials in compliance applicable rules, laws and regulations.
17.3. Termination of Agreement. Lessor shall have the right to terminate the Agreement in Lessor’s sole and absolute discretion in the event that: (a) any anticipated use of the Leased Premises involves the generation or storage, use, treatment, disposal, or release of Hazardous Materials in a manner, or for a purpose, prohibited or regulated by any Agency, authority, or Hazardous Materials Legal Requirements; (b) Lessee has been required by any lender or Agency to take remedial action in connection with Hazardous Materials contaminating the Leased Premises, if the contamination resulted from use of the Leased Premises; or (c) Lessee is subject to an enforcement order issued by any Agency in connection with the release, use, disposal, or storage of a Hazardous Materials on the Leased Premises, if the contamination resulted from use of the Leased Premises. However, Lessee shall not bear any environmental responsibility for the use, misuse, contamination or improper disposal of Hazardous Materials on the Leased Premises prior to the commencement of this Agreement. Neither shall Lessee bear any financial responsibility for any remediation or environmental or disposal of Hazardous Materials on the Leased Premises resulting from operations outside of its control or prior to the commencement of this Agreement.
17.4. Assignment and Subleasing. It shall not be unreasonable for Lessor to withhold its consent to an assignment or subleasing to such proposed assignee or sublessee if the proposed assignee or sublessee is subject to an enforcement order issued by any Agency in connection with the release, use, disposal, or storage of Hazardous Materials.
17.5. Hazardous Materials Indemnity. Lessee shall indemnify, defend (by counsel reasonably acceptable to Lessor), protect, and hold Lessor harmless from and against any and all claims, liabilities, penalties, forfeitures, losses, and/or expenses, including without limitation, diminution in value of the Leased Premises or Improvements, damages for the loss or restriction on use of the rentable or usable space or of any amenity of the Leased Premises, damages arising from any adverse impact or marketing of the Leased Premises and sums paid in settlement of claims, response costs, cleanup costs, site assessment costs, attorneys’ fees, consultant and expert fees, judgments, administrative rulings or orders, fines, costs of death of or injury to any person, or damage to any property whatsoever (including, without limitation, groundwater, sewer systems, and atmosphere), arising from, caused, or resulting, during the Agreement term, in whole or in part, directly or indirectly, by the presence or discharge in, on, under, or about the Leased Premises by Lessee, Lessee’s agents, employees, licensees, or invitees or at Lessee’s direction, of Hazardous Materials, or by Lessee’s failure to comply with any Hazardous Materials Legal Requirements, whether knowingly or by strict liability. For purposes of the indemnity provided herein, any acts or omissions of Lessee or its employees, agents, customers, sublessees, assignees, contractors, or subcontractors of Lessee shall be strictly attributable to Lessee. Lessee’s indemnification obligations shall include, without limitation, and whether foreseeable or unforeseeable, all costs of any required or necessary Hazardous Materials management plan, investigation, repairs, cleanup, or detoxification or decontamination of the Leased Premises, and the presence and implementation of any closure, remedial action or other required plans, and shall survive the expiration of or early termination of Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 22
City of El Paso De Robles, Paso Robles Municipal; Airport the Agreement term. This indemnification shall not apply to liability arising from the presence of Hazardous Materials at the Leased Premises prior to the Commencement Date and not associated with the Lessee.
17.6. Right to Perform Tests. At any time prior to the termination of the Agreement, Lessor shall have the right to enter upon the Leased Premises in order to conduct tests of water and soil.
18. RESERVATION OF AVIGATIONAL EASEMENT
18.1. Avigation Easement. Lessor hereby reserves to itself and its successors and assignees, for the use and benefits of the public, a right of avigation over the Leased Premises for the passage of aircraft landing at, taking off, or operating from the Airport. This public right of flight shall include the right to cause in the airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from or operating on the Airport. This easement shall include any rights of flight necessary for Spaceport operations.
18.2. For the purpose of this Agreement, all rights reserved pursuant to this Section 18 are referred to collectively herein as the “Avigation Easement.” This Avigation Easement shall not operate to deprive Lessee, its agents, contractors, directors, employees, officers, and representatives, of any rights which Lessee, its agents, contractors, directors, employees, officers, and representatives, may from time to time have against any operator of aircraft or third parties responsible for any act or omission respecting the operation of aircraft.
18.3. Lessee’s Assumption of Risk. As between Lessee and Lessor, Lessee agrees to voluntarily assume all risk of loss, damage, or injury to the person and property of Lessee (including the right of Lessee to occupy the Leased Premises), its agents, contractors, directors, employees, officers, and representatives, in or about the Airport or the Leased Premises which may be caused by or arise or occur in any manner:
18.3.1. from the flight of any aircraft of any and all kinds now or hereafter flown in, through, across, or about any portion of the air space over the Airport or the Leased Premises or
18.3.2. from noise, vibration, currents, and other effects of air, illumination, and fuel consumption, or fear thereof, arising or occurring from or during such flight, or from or during the use by aircraft of the Airport, including but not limited to, landing, storage, repair, maintenance, operation, run-up, and take-off of such aircraft, and the approach and departure of aircraft to or from the Airport.
This provision does not waive Lessee’s right against third parties arising from such third parties’ action or inaction.
18.4. Waiver and Release. Lessee hereby waives and releases Lessor, its agents, contractors, directors, employees, officers, and representatives, from any and all claims or causes of action which it may now or hereafter have against Lessor, its agents, contractors, directors, employees, officers, and representatives, for any such loss, damage, or injury as it pertains to this reservation of Avigation Easement.
19. AMERICANS WITH DISABILITIES ACT
19.1. Lessee shall be solely and fully responsible for complying with the Americans with Disabilities Act of 1990 (ADA), as amended from time to time, with respect to the Improvements, the use of the Leased Premises, and its Activities at the Airport. Lessee shall develop a workplan to correct or avoid any violations or non-compliance with the ADA. Lessee shall deliver to Lessor, upon Lessor’s request, a copy of each such workplan. Lessor’s approval of or acceptance of any aspect of Lessee’s Activities under this Agreement shall not be deemed or construed in any way as a representation that such item, activity, or practice complies with the ADA. Pursuant to Section 22. of this Agreement, Lessee agrees to indemnify, defend, and hold Lessor harmless from any and all Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 23
City of El Paso De Robles, Paso Robles Municipal; Airport costs incurred by Lessor with respect to Lessee’s failure to comply with the ADA as it applies to Lessee’s uses of the Leased Premises and Activities at the Airport.
20. INSURANCE
20.1. Procurement. Lessee shall procure, maintain, and pay, at Lessee’s sole cost and expense, all premiums throughout the term of this Agreement for the applicable insurance coverages and limits required by this Agreement, the PMCDs, and Legal Requirements.
20.1.1. Lessee's responsibility for the Leased Premises and associated uses and Activities begins immediately upon the commencement date of this Agreement and delivery of the Leased Premises to Lessee.
20.1.2. The procuring of such insurance coverages and limits shall not be construed to limit Lessee’s liability hereunder nor to fulfill the indemnification terms and conditions of this Agreement. Notwithstanding the policy or policies of insurance, Lessee shall be obligated for the full and total amount of any damage, injury, or loss caused by or connected with this Agreement or with use or occupancy of the Leased Premises, except to the extent caused by the active negligence or willful misconduct of Lessor or Lessor’s representatives, officers, officials, employees, agents, and volunteers.
20.1.3. The insurance company(ies) underwriting the required policies shall be authorized to write such insurance in the State (with a Best rating of A or above) or be approved in writing by the Lessor.
20.1.4. When coverages or limits are not commercially available, appropriate replacement coverages or limits must be approved in writing by the City at least thirty (30) calendar days before commencing Activities at the Airport.
20.2. Coverages. Insurance coverages shall be kept in full force and effect at all times during the term of this Agreement in limits and in a form acceptable to Lessor as set forth in Exhibit B, attached hereto and incorporated herein by reference, as may be amended from time to time. The policies shall include the required endorsements, certificates of insurance, and coverage verifications as described in Exhibit B.
20.2.1. Lessor retains the right at any time to review the coverage, form, and limits of the insurance required hereby. If, in the opinion of Lessor’s Risk Manager (or comparable official), the insurance terms and conditions in this Agreement do not provide adequate protection for Lessor and for members of the public using the Leased Premises, Lessor may require Lessee to obtain insurance sufficient in coverage, form, and limits to provide adequate protection as determined by Lessor’s Risk Manager. Lessor's requirements shall be reasonable and shall be designed to assure protection from and against the kind and extent of risk that exists at the time a change in insurance is required.
20.2.2. Lessor shall notify Lessee in writing of changes in the insurance requirements. If Lessee does not deposit copies of acceptable insurance policies with Lessor incorporating such changes within sixty (60) calendar days of receipt of such notice, or in the event Lessee fails to maintain in effect any required insurance coverage, Lessee shall be in default under this Agreement without further notice to Lessee. Such failure shall constitute a material breach and shall be grounds for immediate termination of this Agreement at the option of Lessor.
20.3. Certificates of Insurance. Lessee shall deposit with Lessor, on or before the effective date of this Agreement, certificates of insurance necessary to satisfy Lessor that the insurance provisions of this Agreement have been complied with, and to keep such insurance in effect and the certificates therefore on deposit with Lessor during the entire term of this Agreement. Should Lessee not provide evidence of such required coverage at least three (3) calendar days prior to the expiration Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 24
City of El Paso De Robles, Paso Robles Municipal; Airport of any existing insurance coverage, Lessor may purchase such insurance, on behalf of and at the expense of Lessee to provide six (6) months of coverage.
20.4. Recourse. Companies issuing the insurance policies shall have no recourse against Lessor for payment of premiums or assessments for any deductibles that are the responsibility of Lessee.
20.5. Waiver. Lessee and Lessor each waives any and all rights of recovery against the other, or against the representatives, officers, officials, employees, agents, and volunteers of the other, for the loss of or damage to such waiving party or the Property of others under its control, where such loss or damage is insured against under any Property insurance policy in force at the time of such loss or damage. Lessee and Lessor shall give notice to respective insurance carriers that the foregoing mutual waiver of subrogation is contained in the Agreement.
21. DAMAGE, DESTRUCTION, AND TERMINATION
21.1. Nontermination and Nonabatement. Except as provided herein, no destruction or damage to the Leased Premises by fire, windstorm, earthquake, or other casualty, whether insured or uninsured, shall entitle Lessee to terminate this Agreement. Lessor and Lessee waive the provisions of any statutes which relate to termination of an Agreement when leased property is destroyed and agree that such event shall be governed by the terms of this Agreement.
21.2. Damage or Destruction by Lessee. If any part of the Leased Premises, the Airport, or associated Improvements is damaged or destroyed by Lessee, its representatives, officers, agents, employees, guests, patrons, suppliers, vendors, invitees, contractors, subcontractors, or Sublessees, Lessee shall diligently, properly, and promptly repair, restore, or replace to the condition and character of the Leased Premises, the Airport, or associated Improvements immediately prior to damage.
21.2.1. If Lessee fails to comply with Section 21.2 of this Agreement Lessor may, at its own discretion, repair, restore, or replace the Leased Premises, the Airport, or associated Improvements. Lessee shall pay Lessor, upon demand, one hundred twenty-five (125%) of the amount that Lessor expended to repair, restore, or replace the damaged or destroyed part of the Leased Premises, the Airport, or associated Improvements.
21.3. Lessor Responsibility. If at any time during the term of this Agreement, any part of the Leased Premises is damaged or destroyed, Lessor shall be under no obligation to repair, restore, or replace the damaged or destroyed portion of the Leased Premises unless Lessor is responsible for such damage or destruction.
21.4. Destruction Due to Risk Covered by Insurance. If, during the term of this Agreement, the Leased Premises are totally or partially destroyed from a risk covered by the insurance described in Section 20 (Insurance) of this Agreement, rendering the Leased Premises totally or partially inaccessible or unusable, Lessee shall restore the Leased Premises to substantially the same condition as it was in immediately before destruction, but only to the extent of insurance proceeds actually received. Such destruction shall not terminate this Agreement. If the laws existing at that time do not permit the restoration, either Party can terminate this Agreement immediately by giving notice to the other Party.
21.4.1. Minor Loss. If, during the term of this Agreement, the Leased Premises are damaged from a risk covered by the insurance described in Section 20 (Insurance) of this Agreement, and the total amount of loss does not exceed one hundred thousand dollars ($100,000) or fifty percent (50%) of the replacement cost, Lessee shall make the loss adjustment with the insurance company insuring the loss. The proceeds shall be paid directly to Lessee for the sole purpose of making the restoration of the Leased Premises in accordance with this Agreement.
21.4.2. Major Loss-Insurance Trustee. If, during the term of this Agreement, the Leased Premises are damage from a risk covered by the insurance described in Section 20 Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 25
City of El Paso De Robles, Paso Robles Municipal; Airport (Insurance) of this Agreement, and the total amount of loss exceeds the amount set forth in Section 21.4.1 of this Agreement, Lessee shall make the loss adjustment with the insurance company insuring the loss and on receipt of the proceeds shall immediately pay them to an institutional lender or title company as may be jointly selected by the Parties ("Insurance Trustee"), and funds shall be disbursed by the Insurance Trustee pursuant to the procedures set forth in Section 21.5 of this Agreement.
21.5. Destruction Due to Risk Not Covered by Insurance. If, during the term of this Agreement, the Leased Premises are totally or partially destroyed from a risk not covered by the insurance described in Section 20 (Insurance) of this Agreement, rendering the Leased Premises totally or partially inaccessible or unusable, Lessee shall restore the Leased Premises to substantially the same condition as it was in immediately before destruction, whether or not the insurance proceeds are sufficient to cover the actual cost of restoration. Such destruction shall not terminate this Agreement. If the laws existing at that time do not permit the restoration, either party can terminate this Agreement immediately by giving notice to the other party.
21.5.1. If the cost of restoration exceeds ten percent (10%) of the then replacement value of the Leased Premises totally or partially destroyed, Lessee can elect to terminate this Agreement by giving notice to Lessor within sixty (60) calendar days after determining the restoration cost and replacement value. If Lessee elects to terminate this Agreement, Lessor, within thirty (30) calendar days after receiving Lessee's notice to terminate, can elect to pay to Lessee, at the time Lessor notifies Lessee of its election, the difference between ten percent (10%) of the replacement value of the Leased Premises and the actual cost of restoration, in which case Lessee shall restore the Leased Premises. On Lessor’s making its election to contribute, each Party shall deposit immediately the amount of its contribution with an Insurance Trustee. If the Destruction does not exceed ten percent (10%) of the then replacement value of the Leased Premises but does exceed one hundred thousand dollars ($100,000), Lessee shall immediately deposit the cost of restoration with the Insurance Trustee. This Agreement shall terminate if Lessee elects to terminate this Agreement and Lessor does not elect to contribute toward the cost of restoration as provided in this section.
21.5.2. If the Leased Premises are destroyed from a risk not covered by the insurance described in Section 20 (Insurance) of this Agreement, and Lessee has the obligation to restore the Leased Premises as provided in Section 21.4.2 of this Agreement, both Parties shall deposit with the Insurance Trustee their respective contributions toward the cost of restoration. All sums deposited with the Insurance Trustee shall be held for the following purposes and the Insurance Trustee shall have the following powers and duties:
The sums shall be paid in installments by the Insurance Trustee to the contractor retained by Lessee as construction progresses, for payment of the cost of Restoration.
A ten percent (10%) retention fund shall be established that will be paid to the contractor on completion of restoration, payment of all costs, expiration of all applicable lien periods, and proof that the Leased Premises are free of all mechanics' liens and lienable claims.
Payments shall be made on presentation of certificates or vouchers from the architect or engineer retained by Lessee showing the amount due. If the Insurance Trustee, in its reasonable discretion, determines that the certificates or vouchers are being improperly approved by the architect or engineer retained by Lessee, the Insurance Trustee shall have the right to appoint an architect or an engineer to supervise construction and to make payments on certificates or vouchers approved by the architect or engineer retained by the Insurance Trustee. The reasonable expenses and charges of the architect or engineer retained by the Insurance Trustee shall be paid Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 26
City of El Paso De Robles, Paso Robles Municipal; Airport by the insurance trustee out of the trust fund. The Parties shall promptly execute all documents and perform all acts reasonably required by the Insurance Trustee to perform its obligations under this section.
If the sums held by the Insurance Trustee are not sufficient to pay the actual cost of restoration Lessee shall deposit the amount of the deficiency with the Insurance Trustee within fifteen (15) calendar days after request by the Insurance Trustee indicating the amount of the deficiency. Any undisbursed funds after compliance with the provisions of this section shall be delivered to Lessor to the extent of Lessor's contribution to the fund, and the balance, if any, shall be paid to Lessee. All actual costs and charges of the Insurance Trustee shall be paid by Lessee. If the Insurance Trustee resigns or for any reason is unwilling to act or continue to act, a new trustee shall be jointly selected by the Parties and shall be substituted in the place of the designated Insurance Trustee. The new trustee must be an institutional lender or title company.
21.6. Procedure for Restoring Leased Premises. When Lessee is obligated to restore the Leased Premises, within ninety (90) days Lessee at its cost shall prepare final plans, specifications, and working drawings complying with applicable Legal Requirements that will be necessary for restoration of the Leased Premises and shall deliver the same to Lessor for approval. The plans, specifications, and working drawings must be approved by Lessor, such approval not to be unreasonably withheld, conditioned, or delayed. Lessor shall have thirty (30) days after receipt of the plans, specifications, and working drawings to either approve or disapprove the plans, specifications, and working drawings and return them to Lessee. If Lessor disapproves the plans, specifications, and working drawings, Lessor shall notify Lessee of its objections and Lessor's proposed solution to each objection. Lessee acknowledges that the plans, specifications, and working drawings shall be subject to approval of the appropriate Agencies and that they will be prepared in such a manner as to obtain that approval. The restoration shall be accomplished as follows:
21.6.1. Lessee shall make commercially reasonable efforts to complete the restoration within one hundred eighty (180) calendar days after final plans, specifications, and working drawings have been approved by the appropriate Agencies and all required permits have been obtained (subject to a reasonable extension for delays resulting from causes beyond Lessee's reasonable control).
21.6.2. Lessee shall retain a licensed contractor that is bondable. The contractor shall be required to carry public liability and property damage insurance, standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements, during the period of construction in accordance with Section 20 (Insurance) of this Agreement. Such insurance shall contain waiver of subrogation clauses in favor of Lessor and Lessee in accordance with the provisions of Exhibit B.
21.6.3. Lessee shall notify Lessor of the date of commencement of the restoration at least ten (10) business days before commencement of the restoration to enable Lessor to post and record notices of non-responsibility. The contractor retained by Lessee shall not commence construction until a completion bond and a labor and materials bond have been delivered to Lessor to insure completion of the construction.
21.6.4. Lessee shall accomplish the restoration in a manner that will cause the least inconvenience, annoyance, and disruption on the Leased Premises and at the Airport.
21.6.5. On completion of the restoration Lessee shall immediately record a notice of completion in the county in which the Leased Premises are located.
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 27
City of El Paso De Robles, Paso Robles Municipal; Airport
21.6.6. If funds are required to be deposited with an Insurance Trustee as required by this Section 21 of this Agreement, the restoration shall not be commenced until sums sufficient to cover the cost of restoration are placed with the Insurance Trustee as provided in this section.
22. HOLD HARMLESS AND INDEMNIFICATION
22.1. Lessor’s Non-liability. Lessor shall not be liable for any loss, damage or injury of any kind to any person or property arising from any use of the Leased Premises, or any part thereof, or caused by any defect in any building, structure or other improvement thereon or in any equipment or other facility therein, or caused by or arising from any act or omission of Lessee or any of its agents, employees, licensees or invitees, or by or from any accident on the Leased Premises or any fire or other casualty thereon, or occasioned by the failure of Lessee to maintain the Leased Premises and all improvements thereto in a safe condition, or arising from any other cause except where caused by the sole negligence or willful misconduct of Lessor, its agents or employees.
22.2. Indemnification. To the fullest extent permitted by law, Lessee shall, at Lessee’s sole expense and with counsel reasonably acceptable to Lessor, defend, indemnify, and hold harmless Lessor and Lessor’s officers, officials, employees and agents from and against all claims, (including demands, losses, actions, causes of action, damages, liabilities, expenses, charges, assessments, fines or penalties of any kind, and costs including consultant and expert fees, costs of investigation, court costs and attorney’s fees) from any cause, arising out of or relating (directly or indirectly) to this Agreement, the tenancy created under this Agreement, or the Leased Premises, including without limitation:
22.2.1. The use or occupancy, or manner of use or occupancy, of the Leased Premises or buildings by Lessee;
22.2.2. Any act, error or omission, or negligence of Lessee or of any subtenant, invitee, guest, contractor or licensee or Lessee or any sublessee in, on, or about the Leased Premises;
22.2.3. Lessee’s conducting or managing of its business;
22.2.4. Any alterations, activities, work, or things done, omitted, permitted, allowed, or suffered by Lessee in, at, or about the Leased Premises or buildings, including the violation of or failure to comply with any insurance requirements or any applicable laws, statues, ordinances, standards, rules, regulations, orders, decrees, or judgments in existence on the Commencement Date or enacted, promulgated, or issued after the date of this Agreement, and;
22.2.5. Any breach or default in performance of any obligation on Lessee’s part to be performed under this Agreement, whether before or during the term of this Agreement or after its expiration or earliest termination.
22.3. This indemnification extends to and includes, without limitation, claims for:
22.3.1. Injury to any persons (including death at any time resulting from that injury);
22.3.2. Loss of, injury or damage to, or destruction of property (including loss of use at any time resulting from that loss, injury, damage, or destruction); and
22.3.3. All economic losses and consequential or resulting damage of any kind.
22.4. Tenant’s indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until all claims against Authority involving any of the indemnified matters are fully, finally, and absolutely barred by the applicable statutes of limitations.
22.5. Non-Waiver of Protections. Nothing herein shall constitute a waiver of any protection available to Lessor, individually and collectively, and its representatives, officers, officials, employees, agent, Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 28
City of El Paso De Robles, Paso Robles Municipal; Airport and volunteers under the State’s sovereign, governmental, or other immunity acts or similar statutory provisions.
23. NON-LIABILITY OF OFFICIALS AND EMPLOYEES OF LESSOR
23.1. No official or employee of Lessor shall be personally liable for any default or liability under this Agreement.
24. SUBLEASING
24.1. Lessee shall not sublease any portion of the Leased Premises without the prior written consent of Lessor.
24.1.1. Lessee shall submit the written agreement between Lessee and the sublessee to Lessor for review and evaluation. Lessor may require that an application be completed and all relevant and applicable information relating to the requested sublease be provided to Lessor for review and evaluation.
24.1.2. A sublease made contrary to the requirements of this Section 24 shall be null and void.
Unless otherwise stated in the written consent, a sublease is subordinate (subject) to all of the terms and conditions of this Agreement.
24.1.3. Sublessee may not occupy the Leased Premises before Lessor consents to the sublease in writing.
24.1.4. Lessee shall have the right to Sublease a portion of the Leased Premises, with City’s written consent which shall not be unreasonably withheld; provided however, that the term of any Sublease shall not extend beyond the term of this Agreement; any and all Subleases shall be expressly made subject to all of the terms, covenants, and conditions of this Agreement, and any sublessee shall be required to comply with the Airport Rules and Regulations, or any subsequent rules and regulations duly adopted by the City.
24.1.5. Lessor may grant Lessee consent to sublease in advance through the use of a mutually agreeable sublease template (e.g., for hangar leasing).
25. SALE, ASSIGNMENT, OR TRANSFER
25.1. Lessor Consent. Lessee retains its right, and Lessor affirms said right, to sell, assign, transfer or hypothecate its interest in the Leased Premises in whole or in part. However, Lessee shall not sell, assign, transfer, or hypothecate its interest in the Leased Premises or this Agreement, in whole or in part, without the prior written consent of Lessor, nor may Lessor may unreasonably withhold its consent.
25.1.1. Consent by Lessor to one sale, assignment, transfer, or hypothecation shall not be deemed to be consent to any subsequent sale, assignment, transfer, or hypothecation.
25.1.2. Any such sale, assignment, transfer, or hypothecation without Lessor’s prior written consent shall be null and void and, at Lessor’s option, shall constitute a default or breach of this Agreement.
25.1.3. Dissolution of Lessee or the transfer of thirty-three percent (33%) or more of its outstanding stock, equity, or certificates of membership or interest to any single entity or party shall be deemed a sale, assignment, or transfer under this Agreement.
Consent required by this Section 25.1 shall not be unreasonably withheld.
25.2. Reserved.
25.3. Assignee Restrictions. The assignee shall not sell, assign, transfer, or hypothecate its interest in the Leased Premises or this Agreement without the prior written consent of Lessor and any sale, Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 29
City of El Paso De Robles, Paso Robles Municipal; Airport assignment, transfer, or hypothecation by Lessee shall contain a provision to this effect. Any assignee of Lessee shall be bound by the terms and conditions of this Agreement.
26. ENCUMBRANCES
26.1. Lessee shall have no authority, express or implied, to create (or consent to the creation of) any lien, charge, or encumbrance upon the Leased Premises or mortgage, pledge, assign as collateral, voluntarily or otherwise, its interest in the Leased Premises or this Agreement and Lessee shall not permit the Leased Premises to be or become subject to any lien (including mechanic’s liens), charge, or encumbrance whatsoever without the prior written consent of Lessor.
27. RELOCATION
27.1. Lessee understands Lessor has the right to replace the Leased Premises, in whole or in part, with equivalent premises similarly situated at the Airport. If the change is solely for the benefit of Lessor, Lessor agrees to pay all reasonable relocation costs and expenses associated with relocating Lessee, including the satisfaction of any Lessor-approved encumbrances, and provide or construct likekind facilities for the benefit of Lessee’s operation(s). If, a mutually agreeable location cannot be located, Lessee may terminate this Agreement without penalty, and Lessor shall compensate Lessee for the Improvements made at fair market value.
28. BOOKS AND RECORDS
28.1. Lessee’s Obligations. Lessee shall maintain complete books and records containing the accounting and other financial records of Lessee’s Activities including rents, fees, and other charges paid by Lessee for the current year and previous five (5) years.
28.1.1. All books and records shall be kept by Lessee in accordance with generally accepted accounting principles and shall reflect all amounts due and owing to Lessor.
28.1.2. In the event Lessor undergoes an audit of its finances, Lessor shall give notice to Lessee of the audit and a designated representative. Lessee shall provide the designated representative access to and shall furnish information, records, reports, or other documentation regarding financial transactions related to the Lessor’s receipts designated in this Agreement, conduct of Activities on the Leased Premises and at the Airport or any other information, records, reports, or other documentation that relates to the Activities governed by this Agreement being conducted by Lessee on the Leased Premises and at the Airport. Lessee shall also provide escorted access for the auditor to inspect all Improvements and facilities, used by Lessee on the Leased Premises and at the Airport. Lessee maintains its rights as a privately held business and has no obligation to share financial data to auditor, City, or any other agency beyond that which is required to satisfy this Agreement.
28.2. Lessor’s Rights. Lessor may, at all reasonable times, audit records to enable verification and/or confirmation of the amount of rents, fees, and other charges due and owing to Lessor under the Agreement.
28.2.1. Any discrepancies found in an audit shall be remedied within ten (10) business days of the findings, or by a mutually agreeable deadline.
28.2.2. If either party disagrees with Lessor’s audit findings, the disagreeing Party may, at their own expense, conduct an independent audit of the discrepancy(ies) in question by an independent CPA mutually agreeable to both Parties. The prevailing Party shall be reimbursed by the other Party for the cost of the independent audit, if applicable.
28.2.3. Reserved.
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 30
City of El Paso De Robles, Paso Robles Municipal; Airport
28.2.4. The final audit of the independent CPA made under this Section shall be conclusive upon the Parties and Lessee shall pay to Lessor, within fourteen (14) calendar days, unless otherwise agreed upon, after a copy of the independent CPA's final report has been delivered to Lessee, one hundred ten percent (110%) of the amount, if any, identified as due and owing to Lessor. The failure of Lessee to make payment within fourteen (14) calendar days shall constitute a default under this Agreement and shall give cause to Lessor for immediate termination of this Agreement.
29. SURRENDER LEASED PREMISES
29.1. Upon expiration of the term of this Agreement or earlier termination of this Agreement, Lessee shall vacate and surrender possession of the Leased Premises to Lessor. Improvements shall revert as noted in Section 7.14. If Lessee fails to vacate and surrender premises, Lessor may immediately commence eviction proceedings at its sole discretion.
29.2. Lessee shall return the Leased Premises to Lessor in as good condition as when Lessee took possession, ordinary and reasonable wear and tear excepted. Any deterioration or damage caused by abuse, carelessness, negligence, or misconduct shall not be considered ordinary and reasonable wear and tear. In the event that Lessee fails to return the Leased Premises to Lessor in good condition, Lessor may perform any work necessary to return the Leased Premises to good condition including maintenance, repair, restoration, replacement, and cleaning and Lessee shall be obliged to pay the balance to Lessor.
29.3. Provided Lessee is not in default or breach of this Agreement, Lessee shall also remove all personal property from the Leased Premises upon expiration of the term of this Agreement or earlier termination of this Agreement. If Lessee fails to do so, Lessor may remove or caused to be removed, at Lessee’s sole risk, cost, and expense and without any liability to Lessor, all personal property.
Lessor may dispose of any personal property removed from the Leased Premises in accordance with the PMCDs, other directives of Lessor, and Legal Requirements and Lessee shall be obliged to pay the balance to Lessor.
29.4. Reserved.
29.5. Surrender of Agreement or Leased Premises. The voluntary or other surrender of this Agreement or the Leased Premises by Lessee, or a mutual cancellation thereof, shall not work a merger, and shall, at the option of Lessor, terminate all or any existing subleases or subtenancies, or may, at the option of Lessor, operate as an assignment of any and all such subleases or subtenancies.
30. REPRESENTATIONS AND WARRANTIES OF LESSEE
30.1. Lessee represents and warrants to Lessor that:
30.1.1. Lessee is duly organized and validly existing under the laws of its jurisdiction, incorporation, or establishment;
30.1.2. Lessee has the power and the authority to enter into and perform the terms and conditions of this Agreement and to pay the rents, fees, or other charges required under this Agreement;
30.1.3. this Agreement has been duly authorized, executed, and delivered by Lessee and assuming the due authorization, execution, and delivery hereof by the Parties hereto, constitutes a legal, valid, and binding obligation of it enforceable against it in accordance with the terms and conditions of this Agreement, subject to applicable bankruptcy, insolvency, and similar laws affecting creditor’s rights generally, and subject, as to enforceability, to general principles of equity regardless of whether enforcement is sought in a proceeding in equity or at law;
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 31
City of El Paso De Robles, Paso Robles Municipal; Airport
30.1.4. Lessee’s execution and delivery of this Agreement and its performance of the terms and conditions of this Agreement do not and will not constitute or result in a default, breach, or violation of, or the creation of any lien or encumbrance on the Leased Premises under, its charter or bylaws (or equivalent organizational documents), or any other agreement, instrument, law, ordinance, regulation, judgment, injunction, or order applicable to Lessee or the Leased Premises;
30.1.5. all consents, authorizations, and approvals requisite for Lessee’s execution, delivery, and performance of this Agreement have been obtained and remain in full force and effect and all conditions, obligations, privileges, and agreements thereof have been duly complied with, and no other action by, and no notice to or filing with, any governmental authority or Agency is required for such execution, delivery, or performance; and
30.1.6. there is no proceeding pending or threatened against Lessee at law or in equity, or before any governmental instrumentality or in any arbitration, which would materially impair Lessee’s ability to perform the terms and conditions of this Agreement and there is no such proceeding pending against Lessee which purports or is likely to affect the legality, validity, or enforceability of this Agreement.
31. MISCELLANEOUS PROVISIONS
31.1. Independent Entities. Nothing in this Agreement is intended to nor shall it be construed, in any way, as creating or establishing a relationship of partners between the Parties or as constituting Lessee as a representative, officer, official, employee, agent, or volunteer of Lessor for any purpose or in any manner whatsoever.
31.2. Binding Effect. This Agreement shall be binding on and inure to the benefit of the heirs, successors, and assigns of the Parties. Whenever a reference is made to either Party, such reference shall be deemed to include, wherever applicable, a reference to the heirs, successors, and assigns of such Party, as if in every case so expressed.
31.3. Conflict of Interest. Lessee shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. Lessee warrants and covenants that no official or employee of Lessor nor any business entity in which any official or employee of Lessor is interested: (a) has been employed or retained to solicit or aid in the procuring of this Agreement or (b) will be employed in the performance of this Agreement without the divulgence of such fact to Lessor. In the event that Lessor determines that the employment of any such official, employee, or business entity is not compatible with such official's or employee's duties as an official or employee of Lessor, Lessee upon request of Lessor shall immediately terminate such relationship or employment. Violation of this provision constitutes a serious breach of this Agreement and Lessor may terminate this Agreement as a result of such violation.
31.4. Memorandum of Agreement. Following execution of this Agreement, either Party, at its sole expense, shall be entitled to record a Memorandum of Agreement in the official records of San Luis Obispo County. Upon termination or expiration of this Agreement, Lessee shall execute and record a quitclaim deed as to Lessee’s leasehold interest.
31.5. Estoppel Certificate. The Parties shall, from time to time, upon at least thirty (30) calendar days prior written notice from a Party, execute, acknowledge, and deliver to the other Party a statement in writing: (a) certifying this Agreement is unmodified and in full force and effect or, if modified, stating the nature of the modification and certifying that the Agreement, as modified, is in full force and effect, and the date to which the rents, fees, and other charges, if any, have been paid and (b) acknowledging that there are not to Party’s knowledge, any defaults or breaches, or stating if any defaults or breaches are claimed, any statement may be relied upon by any prospective purchaser or encumbrance of the Leased Premises.
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 32
City of El Paso De Robles, Paso Robles Municipal; Airport
31.6. Subordination. This Agreement is subject and subordinate to the provisions of any existing or future agreements between Lessor and the United States, the State, or any other entity pertaining to the planning, development, operation (including maintenance and repair), and management of the Airport.
31.7. Dispute Resolution. Unless otherwise mutually agreed to, any controversies between Lessee and Lessor regarding the construction or application of this Agreement, and claims arising out of this Agreement or its defaults or breaches shall be submitted to mediation within thirty (30) calendar days of the written request of one (1) Party after the service of that request on the other Party.
31.7.1. The Parties may agree on one (1) mediator. If they cannot agree on one (1) mediator, the Party demanding mediation shall request the Superior Court of San Luis Obispo County to appoint a mediator. The mediation meeting shall not exceed one (1) day (eight (8) hours). The Parties may agree to extend the time allowed for mediation under this Agreement.
31.7.2. The costs of mediation shall be borne by the Parties equally.
31.7.3. Mediation under this Section is a condition precedent to filing an action in any court. In the event of litigation arising out of any dispute related to this Agreement, the prevailing party shall be entitled to recover their reasonable attorney's fees, expert witness costs, and cost of suit.
31.8. Governing Law and Venue. This Agreement shall be deemed to have been made in, and shall be construed in, accordance with the statutes and laws of the State of California without regard to conflicts of law principles.
31.8.1. The San Luis Obispo Superior Court (Court) shall have exclusive jurisdiction and venue with respect to all disputes, actions, and proceedings arising from or under this Agreement, regardless of the nature or basis of the dispute.
31.8.2. Lessee consents to the jurisdiction and venue of the Court and waives personal service of any and all process upon Lessee in all such actions or proceedings, and consents that all such service or process shall be made by certified mail, return receipt requested, directed to Lessee at the address herein stated, and service so made shall be completed two (2) calendar days after the same shall have been posted.
31.8.3. If any legal action is brought about by either Party to enforce this Agreement or any part thereof, the prevailing Party shall be entitled to recover attorney and court fees, costs, and expenses.
31.9. Holding Over. If Lessee, upon expiration of the term of this Agreement remains in possession of the Leased Premises, such holding over shall be regarded as a month-to-month tenancy (not as a renewal or extension of this Agreement) which may be terminated at any time by Lessor or Lessee by providing not less than thirty (30) calendar days written notice. The rents, fees, and other charges that shall be paid during the holding over period shall be equal to one hundred fifty percent (150%) of the monthly rents, fees, and other charges that were being charged by Lessor at the time the term of this Agreement expired. The holdover period shall be subject to all of the terms and conditions of this Agreement. This provision shall not be construed as Lessor’s permission for Lessee to hold over. Acceptance of rents, fees, and other charges shall not constitute a renewal or extension of this Agreement.
31.10. Compliance with Legal Requirements. The Parties hereto shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state and local governments (“Legal Requirements”) in the performance of their rights, duties, and obligations under this Agreement.
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 33
City of El Paso De Robles, Paso Robles Municipal; Airport
31.11. Interpretations. In construing or interpreting this Agreement, the word "or" shall not be construed as exclusive and the word "including" shall not be limiting. The Parties agree that this Agreement shall be fairly interpreted in accordance with its terms without any strict construction in favor of or against any other Party.
31.12. Captions. The captions of the various sections, paragraphs, and subparagraphs of this Agreement are inserted only as a matter of convenience or reference only, and are not intended to define, limit, or describe the scope of this Agreement or any provision contained herein.
31.13. Severability. If any provision in this Agreement is held to be illegal, invalid, or unenforceable in full or in part, for any reason, by any court of competent jurisdiction, then such provision shall be modified to the minimum extent necessary to make the provision legal, valid, and enforceable. The illegality, invalidity, or unenforceability of any such provision shall in no way affect any other provisions in this Agreement, provided that the illegality, invalidity, or unenforceability of any such provision does not materially prejudice either Party with regard to the respective rights and obligations of each Party contained in the valid terms and conditions of this Agreement.
31.14. Brokers. Each Party represents that is has not had dealings with any real estate broker, finder, or other person, with respect to this Agreement in any manner. Each Party shall hold harmless the other Party from all damages resulting from any claims that may be asserted against the other Party by any broker, finder, or other person with whom the Indemnifying Party has or purportedly has dealt.
31.15. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
31.16. Amendments. The Parties acknowledge no oral agreements regarding this Agreement have been entered into by and between the Parties and that no alteration or variation of the terms and conditions of this Agreement shall be valid unless made in writing, agreed to, and signed by the Parties.
31.17. Time of Essence. It is mutually agreed by the Parties that time is of the essence in the performance of the terms and conditions to be kept and performed under this Agreement.
31.18. Entire Agreement. This Agreement, including any exhibits attached hereto, contains and embodies the entire understanding and agreement between the Parties and supersedes and replaces any and all prior understandings and agreements, written or oral, expressed or implied, relating to this Agreement.
31.19. Notices. Whenever any notice or communication is required by this Agreement to be made, given or transmitted to the Parties, such notice shall be hand delivered or sent by certified mail (postage prepaid), courier, or overnight carrier, and addressed to:
Lessor: With Copies to:
City of El Paso De Robles Best Best & Krieger LLP
City Manager
1000 Spring Street
Paso Robles, California 93446
City Attorney, City of El Paso De Robles
3390 University Ave, 5th Floor
Riverside, CA 92501
Lessee:
Loyd’s Aviation PRB, LLC dba Loyd’s
Aviation
1601 Skyway Drive, Suite 100
Bakersfield, CA 93308
Attachment 1
FIXED BASE OPERATOR LEASE AGREEMENT
Loyd’s Aviation Fixed Base Operator Lease Agreement 34
City of El Paso De Robles, Paso Robles Municipal; Airport
31.19.1. The date of service of notice shall be the date such notice is actually delivered to the intended Party or the date delivery is refused by the intended Party.
31.19.2. The Parties may, from time to time, designate to each other in writing a different address or different entity or entities to which all such notices, communications, or payments shall be given or made.
31.20. Signing Authority. If this Agreement is not signed by all Lessees named herein, the person actually signing warrants that he/she has the authority to sign for the others.
31.21. Appendices & Exhibits. The following Appendices and Exhibits are attached hereto and made a part of this Agreement:
Appendix A – Fuel Farm and Refueling Operations
Appendix B – Definitions
Appendix C – Acronyms
Exhibit A – Leased Premises
Exhibit B – Insurance Requirements
Exhibit C – Proposals
Attachment 1
Attachment
1
APPENDIX A – FUEL FARM AND REFUELING OPERATIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 36
City of El Paso De Robles, Paso Robles Municipal; Airport
APPENDIX A - FUEL FARM AND REFUELING OPERATIONS
The following applies to Lessee’s aircraft fueling activities at the Airport including storage and dispensing of aviation gasoline and jet fuel.
The City assumes no liability or responsibility for any violation of any aircraft, refueling vehicle, or refueling requirement or procedure; any error, omission, or negligence; or any violation of any Legal Requirement relating to fuel handling. Lessee shall be solely, fully, and completely responsible for any such violation, error, omission, or negligence incident to or in connection with the fuel storage facility, refueling vehicles, fuel handling, and training during the term of the Agreement. Lessee bears no responsibility for any such incident, including its ramifications that may extend into the term of the Agreement, occurring prior to the Commencement Date. Lessee shall fully reimburse the City for any fines, legal or court costs, incurred by the City for any such violation, error, omission, or negligence.
General
Legal Requirements – Fuel handling, refueling vehicles, and fuel storage facility operations and maintenance shall conform to the Legal Requirements including without limitation, those prescribed by the State and City and appropriate provisions of 14 CFR; NFPA recommendations; A4A 103; Applicable ACs including AC 150/5230-4 (Series) “Aircraft Fuel Storage, Handling, Training, and Dispensing on Airports”, AC 00-34 (Series) "Aircraft Ground Handling and Servicing", and AC 150/5210-5 (Series) "Painting, Marking and Lighting of Vehicles Used on an Airport" as may be amended; the City’s SWPPP; Legal Requirements established by the Environmental Protection Agency, and any other Agency having jurisdiction.
Fuel Quality Control – Fuel shall comply with the quality specifications outlined in American Society for Testing and Materials (ASTM) D1655 (Jet Fuel), ASTM D910 (Avgas), ASTM D7547 (UL94), ASTM D4814 (Mogas without ethanol). Ensuring the quality of the fuel is the sole responsibility of Lessee engaged in Fuel Handling.
Diesel Exhaust Fluid (DEF) Contamination – Personnel are to be trained in the proper storage and handling of DEF to prevent the contamination of fuel system icing inhibitor (FSII) or jet fuel. If used in refueling vehicles or other ground service equipment, DEF must be stored in a separate cabinet or facility from FSII storage and handling areas should be clearly labeled. All DEF transfers between containers must be handled by trained personnel and logged appropriately.
Standard Operating Procedure (SOP) – SOP shall be developed and maintained for fuel handling to include compliance with standards set forth in AC 00-34 (Series) “Aircraft Ground Handling and Servicing." The SOP shall include a training plan, fuel quality assurance procedures, record keeping, and emergency response procedures related to fuel spills and fires. The SOP shall also address regular safety and security inspections, bonding and fire protection, public protection, marking and labeling of (and controlling access to) refueling vehicles and fuel storage facility. The SOP shall be made available to the City for review upon request no later than 30 calendar days before any fuel handling is scheduled to commence and it shall be made available for review upon request any time changes are planned.
Fuel Handling – Lessee shall comply with any SOPs developed in accordance with the provision above for the handling of fuel. Notwithstanding the foregoing, to the extent no SOP exists, Lessee shall comply with the foregoing fuel handling rules:
Aircraft shall not be fueled or de-fueled in an area where aircraft engines are operating, aircraft or engines are being warmed by application of heat, or while the aircraft is in a congested area.
Attachment 1
APPENDIX A – FUEL FARM AND REFUELING OPERATIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 37
City of El Paso De Robles, Paso Robles Municipal; Airport All fuel handling shall be treated with due caution and circumspection regarding the rights, safety, and security of others so as not to endanger, or be likely to endanger, persons or property. If any malfunction or irregularity is detected on or within the aircraft, fuel handling shall cease immediately, and the malfunction or irregularity shall be brought to the attention of the aircraft owner or aircraft operator immediately.
Persons engaged in fuel handling shall exercise care and extreme caution to prevent overflow or spills of fuel or oils. A spill is defined as a quantity in excess of five (5) gallons outside of an approved storage, containment, or dispensing unit. Should a fuel or oil spill occur, Lessee shall responsible shall immediately contact the Airport Manager, dial 911, and immediately commence spill containment, remediation, and cleanup in accordance with industry standards and Legal Requirements.
Fuel handling shall be conducted in accordance with the procedures stipulated in the aircraft operator’s manual. Fuel handling shall not occur if an electrical storm is in progress in the immediate vicinity of the Airport and may resume 15 minutes following any reported or observed lightning flash within 5 miles of the Airport.
Unless engaging in rapid refueling, fuel handling shall not occur while passengers are on board the aircraft unless a passenger-loading ramp is in place at the aircraft’s cabin door, the door is in the open position, and a qualified attendant is present at the door. No person shall operate any mobile phone, radio transmitter, or receiver or switch the transmitter or receiver on or off during fuel handling unless said radio transmitter or receiver is designed specifically for such environment.
No person shall operate aircraft electrical systems or switch aircraft electrical appliances on or off during fuel handling. Smoking, vaping, matches, lighters, and open flames (e.g., candles, fixtures, or fires) are prohibited within 50 feet of any aircraft, refueling vehicle, fuel storage facility.
Fire extinguishers shall be immediately available during fuel handling to comply with practices recommended by the NFPA and all fire codes, regulations, or directives issued by the Fire Department and the City. All extinguishers shall be inspected and certified, as required by law, and all personnel involved with fueling or defueling operations shall be qualified and trained to use all fire extinguishers.
Prior to engaging in fuel handling, Lessee shall provide the City with a written SPCC Plan that meets all applicable Legal Requirements. An updated copy of the SPCC Plan shall be filed with the City at least 30 calendar days prior to any planned change in operations. A trained person shall be present and responsive while fuel is being transferred into or out of the fuel storage facility or any refueling vehicle. The person shall remain within the immediate vicinity, in close proximity to, and in direct view of all operating controls and refueling vehicles. The person shall not leave the discharge end of any hose(s) unattended at any time while the transfer of fuel is in progress. The person shall not block open, bypass, disengage, or deactivate the “deadman” or any related controls while fuel handling.
Refueling vehicles shall be positioned so the vehicle can be safely driven away in the event of spill or fire.
Fuel handling shall be conducted outdoors and at least 25 feet from any hangar or building and 50 feet from any combustion and ventilation air-intake to any boiler, heater, or incinerator room or as approved by the Fire Department and the City.
Refueling vehicles shall be refueled only at refueling stations approved by the Fire Department and the City. In the absence of suitable ground support equipment, a turbine-powered APU mounted at the rear of the aircraft or on the wing on the side opposite from the fueling point may be operated during fuel handling.
Attachment 1
APPENDIX A – FUEL FARM AND REFUELING OPERATIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 38
City of El Paso De Robles, Paso Robles Municipal; Airport A turbine-powered APU may be operated during fuel handling provided its design, installation, location, and combustion air source do not constitute a fuel vapor ignition source.
The refueling vehicle shall be bonded to the aircraft or fuel storage facility to equalize the voltage potential.
All hoses, nozzles, spouts, funnels, and appurtenances used in fuel handling shall be factory mutual (FM) or Underwriters Laboratories (UL) approved and shall be equipped with a bonding device to prevent ignition of volatile liquids.
Hold-down or hold open devices on refueling vehicle nozzles are prohibited. For single point fueling, “deadman” controls or mechanisms shall be utilized and shall remain in safe operating condition and good working order. No person shall deactivate or bypass a “deadman” control or mechanism at any time. During fuel handling, no person shall use any material or equipment which is likely to cause a spark or ignition within 50 feet.
Refueling vehicles (including fuel tankers) shall only use the entrance, exit, and route designated by the City during the transportation and delivery of fuel. Refueling Vehicles (including fuel tankers) shall be subject to inspection at any time to determine compliance with this Agreement.
Appropriate and proper absorbent material(s) and fuel spill containment capable of damming/diking a fuel spill shall be immediately available or as required in the Lessee’s approved SPCC Plan.
Refueling Vehicles – refueling vehicles shall be equipped and maintained to comply with all applicable Legal Requirements including, without limitation, those prescribed by:
NFPA Codes;
14 CFR Part 139.321 “Handling/Storing of Hazardous Substances and Materials”; and Applicable ACs including AC 00-34 (Series) "Aircraft Ground Handling and Servicing" and AC 150/5210-5 (Series) "Painting, Marking and Lighting of vehicles Used on an Airport".
Refueling vehicles shall be equipped with metering devices that meet all applicable Legal Requirements and shall be bottom loaded.
Each refueling vehicle shall have two listed fire extinguishers, each having a rating of at least 40-B:C and a minimum capacity of 9.0kg (20 lbs.) of dry chemical agent, with one extinguisher mounted on each side of the refueling vehicle.
Only the fuel storage facility and refueling vehicles approved by the City and the Fire Department shall be used for fuel handling. Refueling vehicles, pumps, meters, hoses, nozzles, funnels, fire extinguishers, and bonding devices used during fuel handling shall be maintained in a safe operating condition. All hoses, funnels, and appurtenances used in fuel handling shall be equipped with a bonding device to prevent ignition of volatile liquids.
When refueling vehicles are found in a state of disrepair, malfunction, or their use constitutes an undue fire or safety hazard, or the operation of Refueling Vehicles would violate these provisions, Lessee shall immediately discontinue the use of such Refueling Vehicles until repairs, replacements, or changes are made to render the Refueling Vehicle safe for continued use.
Hoses or piping connections shall be secured and capable of holding under the pump’s rated pound per square inch PSI discharge.
Hoses or nozzles shall be FM or UL approved with self-closing valve and no hold-down or hold-open devices. All pumps shall be FM or UL approved.
Attachment 1
APPENDIX A – FUEL FARM AND REFUELING OPERATIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 39
City of El Paso De Robles, Paso Robles Municipal; Airport All storage tanks shall be rated in accordance with Universal Fire Code (UFC) Article 24, Division II and Article 79, Division XII.
Refueling vehicles shall not be operated in reverse unless another person is present to safely monitor and direct the movement of the refueling vehicle. Refueling vehicles and fuel storage facilities shall be placarded, marked, or color coded in accordance with NFPA Publication 407 and applicable FAA ACs. Lessee shall retain copies of all applicable permits, registrations, and certificates for each refueling vehicle.
Storage of Refueling Vehicles
Refueling vehicles shall be stored outdoors at a distance of at least 50 feet from a building or at the distance approved by the Fire Department unless the building is designed, constructed, and used exclusively, and approved by the Fire Department specifically for this purpose. Refueling vehicles shall be parked in a manner that provides a minimum of 10 feet of separation between refueling vehicles and any other vehicle or aircraft and a minimum of 20 feet from a storm water inlet.
Maintenance of Refueling Vehicles
Maintenance of refueling vehicles shall be performed outdoors or in a building which is approved by the Fire Department specifically for this purpose. Entities engaged in fuel handling shall document and maintain and keep on file refueling vehicle maintenance records. These records shall be made available to the City upon request.
Fuel Storage Facility – The fuel storage facility shall be operated and maintained in accordance with practices recommended by NFPA 407 and in full compliance with Legal Requirements and shall be approved by all Agencies having jurisdiction.
Attachment 1
APPENDIX B – DEFINITIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 40
City of El Paso De Robles, Paso Robles Municipal; Airport
APPENDIX B - DEFINITIONS
Agency – Any federal, state, or local
governmental entity, unit, organization, or
authority.
Aeronautical Activity – Any activity or service
that involves, makes possible, facilitates, is
related to, assists in, or is required for the
operation of aircraft. Any activity which
contributes to, or is required for, the safety of such
operations. Any activities which have a direct
relationship to the operation of aircraft or the
operation of the Airport.
Airport – All land, Improvements, and
appurtenances within the legal boundaries as it
now exists on the Paso Robles Municipal Airport
Layout Plan (or exhibit of the most recent FAA
grant) and as it may hereinafter be modified from
time-to-time.
Airport Layout Plan, (or ALP) – The FAA
approved, and City adopted drawing, as may be
amended from time to time, which reflects an
agreement between the FAA and City depicting
the physical layout of the Airport and identifying
the location and configuration of current and
proposed Runways, Taxiways, buildings,
roadways, utilities, navaids, etc.
Airport Manager – That person (or designated
representative thereof), appointed by the City,
responsible for the administration and day-to-day
operation and management of the Airport, all
Airport owned Property, Vehicles, equipment,
material, financial assets, and Employees at the
Airport, and all employees assigned to the
Airport.
Airport Sponsor Assurances – Those contractual
obligations that are described by law in 49 U.S.C.
47107 and are undertaken by a public airport
sponsor as a condition of receipt of federal airport
development grants or federal surplus Property.
Airport Terminal – The existing terminal building
located at the Airport currently housing the Airport
administrative offices, restaurant, etc.
Airport Terminal Expansion – improvements to be
constructed on the Leased Premises consistent
Lessee’s proposal submitted to the City on June 29,
2023 and supplemental information submitted on
January 17, 2024.
Based Aircraft – An aircraft identified in a written
aircraft storage Agreement with the City, FBO, or
SASO.
Certificates of Insurance – A certificate provided by
and executed by an Operator’s, Lessee’s, or
Sublessee’s insurance company providing evidence
of the insurance coverages and policy limits of the
Operator, Lessee, or Sublessee.
Certificate of Occupancy – a document issued by
the City that states that the Leasehold
Improvements are ready for occupancy.
City of El Paso De Robles (or City) – the owner/
operator of Paso Robles Municipal Airport and
designated Sponsor of the Airport.
Attachment 1
APPENDIX B – DEFINITIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 41
City of El Paso De Robles, Paso Robles Municipal; Airport Code of Federal Regulation (or CFR) – The
codification of the general and permanent rules
published in the Federal Register by the executive
departments and agencies of the federal
government, divided into 50 titles that represent
broad areas subject to federal regulation, updated
once each calendar year and issued quarterly, as
may be amended from time to time.
Commercial – For the purpose of securing
earnings, income, Compensation (including
exchange or barter of goods and services), and/or
profit.
Commercial General Liability – For damages due
to bodily injury, personal injury, Property
damage, contractual liability, products and
completed operations and, if applicable, use of
unlicensed Vehicles that in any way arise from
the use of the Leased Premises and operations or
Activities of the entity. Unlicensed Vehicles
operated on the Movement Area will require
coverage in an amount not less than that identified
for combined single limit per occurrence for
bodily injury, personal injury, and Property
damage.
Compensation – Any form of reimbursement for
goods or services such as monetary, exchange,
barter, favors, gratuity, etc.
Current – All rents, fees, and other charges
required to be paid under any and all Agreements
are paid in full.
Employee – Any individual employed by an
entity whereby said entity collects and pays all
associated taxes on behalf of Employee. The
determination of status between an Employee and
an independent contractor shall be made
according to current IRS codes.
Environmental Protection Agency (or EPA) –
The Agency within the United States Government
having responsibility for enforcing the
environmental regulations or laws enacted by
Congress.
Exclusive Right – A power, privilege, or other
right excluding or preventing another from
enjoying or exercising a like power, privilege, or
right. An Exclusive Right may be conferred either
by express agreement, by imposition of
unreasonable standards or requirements, or by
any other means. Such a right conferred on one or
more parties but excluding others from enjoying
or exercising a similar right or rights, would be an
Exclusive Right. An Exclusive Right to conduct
an Aeronautical Activity, which is forbidden by
federal regulation, is distinguished from an
Exclusive Right to occupy real estate, which is
permitted by federal regulation under certain
conditions.
Federal Aviation Administration (or FAA) – The
Agency within the Department of Transportation
o the United States Government that has the
responsibility of regulating Aeronautical
Activities.
Federal Aviation Regulation (or FAR) –
Regulations prescribed by the FAA governing all
aviation activities in the United States, which are
written, approved, and published by the FAA.
Compliance with FARs is mandatory. In 1996, all
references to the FARs were changed to Title 14
of the Code of Federal Regulations (14 CFR).
General Aviation – All aviation with exception of
Air Carriers and the military.
General Aviation Leasing/Rents and Fees Policy
– Sets forth the parameters for leasing the Airport’
land and Improvements (for general aviation
purposes) and outlines the process for
establishing and adjusting General Aviation rents
and fees at the Airport, as may be amended from
time to time.
General Aviation Minimum Standards (or
Minimum Standards) – Those qualifications,
standards, and criteria set forth as the minimum
requirements to be met as a condition for the right
to engage in Activities at the Airport, as may be
amended from time to time.
Attachment 1
APPENDIX B – DEFINITIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 42
City of El Paso De Robles, Paso Robles Municipal; Airport Good Standing – Full compliance with all
applicable Legal Requirements and not in default
of any Agreement with the Lessor.
Hangar – Any fully or partially enclosed storage
facility for an aircraft.
Hangar Keeper’s Legal Liability – To include
Property damage for all non-owned aircraft under
the care, custody, and control of the Operator.
Hazardous Materials – A substance, item, or
agent (biological, chemical, physical) which has
the potential to cause harm to humans, animals,
or the environment, either by itself or through
interaction with other factors.
Improvements – All buildings, structures,
additions, and facilities including pavement,
fencing, and landscaping constructed, installed,
or placed on, under, or above any land on the
Airport.
City of El Paso De Robles Fire Department (or
Fire Department) – The Fire Department provides
fire services as well as several community
services for the City of El Paso De Robles.
Legal Requirements – All applicable federal,
state, county, and local laws, codes, ordinances,
policies, and regulations. Lessee – An entity
(other than a Licensee) that has entered into an
Agreement to occupy, use, and/or develop land
and/or Improvements.
Rent and Fee Schedule – A listing of all rents, fees
and other charges applicable to the Airport
established by the City as may be amended from
time-to-time.
Movement Area – The designated Runways,
Taxiways, and other areas of the Airport which
are utilized for taxiing, hover taxiing, takeoff, and
landing of aircraft (exclusive of aircraft parking,
loading, unloading, fueling, and servicing areas).
Non-Commercial – Not for the purpose of
securing earnings, income, Compensation
(including exchange or barter of goods and
services), and/or profit.
Owner – The registered legal Owner of an aircraft
according to FAA records or a Vehicle according
to the applicable state Department of Motor
Vehicle records.
Premises – Tiedown or T-Hangar Location
Primary Management and Compliance Documents
(or PMCDs) – PMCDs are the following
documents: (1) the City’s Municipal Airport Rules
and Regulations adopted by the City Council on
June 6, 2017 as they may be amended from timeto-time; (2) the City’s Municipal Airport Minimum Standard Requirements for Airport
Aeronautical Services adopted by the City Council
on September 20, 2022 as they may be amended
from time-to-time; and (3) Title 13 of the City’s
Municipal Code pertaining to Municipal Airport
Operations as it may be amended from time-totime.
Property – Any tangible or intangible possession
that is owned by an entity or a person.
Public Area – Those areas normally used by the
general public. Such areas include concessionaire
shops, restrooms, Airport Administration lobby,
hallways, passage ways, viewing areas,
roadways, walkways, sidewalks, and Vehicle
parking lots. Public areas do not include the areas
owned and/or leased by Commercial businesses
unless such businesses so designate certain areas
as public use areas. Public Areas do not include
the AOA, Restricted Areas, and employee
parking lots.
Ramp – Those Paved areas of the Airport within
the AOA designated by the City for parking,
loading, unloading, fueling, or servicing of
aircraft.
Attachment 1
APPENDIX B – DEFINITIONS
Loyd’s Aviation Fixed Base Operator Lease Agreement 43
City of El Paso De Robles, Paso Robles Municipal; Airport Restricted Area – Areas of the Airport, other than
Public Areas, wherein entry or use thereof is
restricted to authorized personnel (pursuant to
applicable Legal Requirements) including, but
not limited to the fuel farm, Airport maintenance
facilities/shop, mechanical rooms, electrical
vaults, computer server room, and any other areas
marked/posted as restricted with signage. or
placards.
Rules and Regulations – The rules and regulations
set forth by the City for the safe, secure, orderly,
and efficient use of the Airport, as may be
amended from time to time.
Runway – An area of the Airport developed and
improved for the purpose of accommodating the
landing and takeoff of aircraft.
Self-Fueling – The Non-Commercial Fueling of
an aircraft by the aircraft Owner or the Owner’s
Employee(s) using the aircraft Owner’s Vehicles,
Equipment, and resources.
Self-Service – The servicing of an aircraft (i.e.,
maintaining, repairing, fueling, etc.) by the
aircraft Owner or the aircraft Owner’s Employees
using the aircraft Owner’s Vehicles, Equipment,
and resources.
Spill Prevention, Control, and Countermeasures
Plan (or SPCC Plan) – A contingency plan
defined by the EPA that covers procedures for
spill prevention, control, and countermeasures,
points of contact, the chain of command, and
individual responsibilities.
Storm Water Pollution Prevention Plan (or
SWPPP) – A plan that identifies the controls that
have been put in place to minimize the impact of
storm water discharges on the environment.
Sublease – An agreement entered into by an entity
with an Operator or Lessee that transfers rights or
interests in the Operator’s or Lessee’s Leased
Premises and for which, the City has given proper
consent.
Sublessee – An entity that has entered into a
Sublease with an Operator or Lessee who is
authorized (by the City) to engage in Commercial
Aeronautical Activities at the Airport.
Taxiway – A defined path, usually Paved, over
which aircraft can taxi from one part of an airport
to another (excluding the Runway).
Term – A fixed period for which the License
Agreement lasts until terminated either by the
Licensee or the Licensor as provided for in the
License.
Tiedown – An area Paved or unpaved suitable for
parking and mooring of aircraft wherein suitable
anchoring points and related equipment are
located.
Transient Aircraft – Any aircraft utilizing the
Airport for occasional or temporary purposes
which is not stationed at the Airport.
Transportation Security Administration (or TSA)
– The Agency within the Department of
Homeland Security of the United States
Government responsible to safeguard United
States transportation systems and ensure secure
travel.
Unlawful Detainer – The act of retaining
possession of property without legal right
Vehicle – Any device that is capable of moving
itself, or being moved, from place to place upon
wheels; but does not include any device designed
to be moved by human muscular power or
designed to move primarily through the air
Vehicle Operator – Any person who is in actual
physical control of a Vehicle.
Attachment 1
APPENDIX C – ACRONYMS
Loyd’s Aviation Fixed Base Operator Lease Agreement 44
City of El Paso De Robles, Paso Robles Municipal; Airport
APPENDIX C - ACRONYMS
AC Advisory Circular
ALP Airport Layout Plan
CFR Code of Federal Regulations
DHS Department of Homeland Security
DOT Department of Transportation
EPA Environmental Protection Agency
FAA Federal Aviation Administration
FAR Federal Aviation Regulation
FBO Fixed Base Operator
NOTAM Notice to Airmen
SASO Specialized Aviation Service Provider
SPCC Plan Spill Prevention, Control, and Countermeasures Plan SWPPP Storm Water Pollution Prevention Plan
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 45
City of El Paso De Robles, Paso Robles Municipal; Airport EXHIBIT A – LEASED PREMISES
FBO and Development Areas
• FBO office on first floor Airport Terminal Concourse. 546 SF (Improved office) o A portion of APN 025-453-010
• FBO dedicated ramp space: ~25,000 SF (Improved ramp)
o A portion of APN 025-453-007
• Aircraft Storage Hangar: ~10,000 SF + attached storage/office areas. (Improved hangar) o A portion of APN 025-453-008
• Airport Terminal Expansion: ~3000 SF (unimproved lease area) o Lease area to be approximately 3000 SF to be contained on portions of Lot 21 and 22 in the City of Paso Robles, County of San Luis Obispo, State of California according to the map recorded 10-18-2022 in book 025 page 453 in the office of the County Record office of said county. APN 025-453-010 and 025-453-021
*Final lease area size TBD based on final design plans as approved by the City at a later date. At that time an amendment to the lease agreement will be generated to reflect the lease area.
• Hangar Development Area: 139,827 SF (unimproved lease area) o ~3.21-acre parcel at 3035 Taxiway D. Contained on Lot 24 in the City of Paso Robles, County of San Luis Obispo, State of California according to the map recorded 10-18- 2022 in book 025 page 453 in the office of the County Record office of said county. APN 025-453-022
Additional Lease Areas
• Executive Air Center offices: ~1,000 SF (Improved office) o A portion of APN 025-453-008
Aviation Fuel Storage – (nonexclusive use right)
• 12,000 Gallon – Aboveground, Double-Walled Avgas Tank • 20,000 Gallon – Aboveground, Double-Walled Jet A Tank • QT-Pod Self-Service System
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 46
City of El Paso De Robles, Paso Robles Municipal; Airport
FBO AND DEVELOPMENT AREAS
FBO Office on first floor Airport Terminal Concourse
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 47
City of El Paso De Robles, Paso Robles Municipal; Airport FBO Dedicated Ramp Space ~25,000 SF
A portion of APN 025-453-007 and 025-453-008, approximately 205’ X 122’ or 25,000 SF.
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 48
City of El Paso De Robles, Paso Robles Municipal; Airport Aircraft storage hangar and attached storage area/offices A portion of APN 025-453-008
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 49
City of El Paso De Robles, Paso Robles Municipal; Airport Airport Terminal Expansion ~3000 SF
Approximate Area, final lease area size TBD based on final design plans as approved by the City at a later date. At that time an amendment to the lease agreement will be generated to reflect the true lease area.
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 50
City of El Paso De Robles, Paso Robles Municipal; Airport Hangar Development Area (APN 025-453-022)
139,827 SF
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 51
City of El Paso De Robles, Paso Robles Municipal; Airport
ADDITIONAL LEASE AREAS
Executive Air Center Offices 5,6,7 and Conference Room 2 Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 52
City of El Paso De Robles, Paso Robles Municipal; Airport Aviation Fuel Storage (Non-Exclusive Right)
12,000 gal. AvGas Storage
20,000 Jet-A Storage
QT-Pod self-service system
Attachment 1
EXHIBIT A – LEASED PREMISES
Loyd’s Aviation Fixed Base Operator Lease Agreement 53
City of El Paso De Robles, Paso Robles Municipal; Airport Parking Areas
Staff Parking (Nonexclusive):
A total of fifteen (15) unassigned parking spaces in the parking lot of the Executive Air Center at 4990 Wing Way, not including the parking spaces depicted below within the yellow “X” Rental Vehicle Parking (Nonexclusive):
A total of up to five (5) parking spaces in the long-term parking lot south of the Airport terminal (4900 Wing Way) including the three parking spaces depicted below in the red box. The remaining two (2) parking spaces are unassigned within the long-term parking lot.
Attachment 1
EXHIBIT B – INSURANCE REQUIREMENTS
Loyd’s Aviation Fixed Base Operator Lease Agreement 54
City of El Paso De Robles, Paso Robles Municipal; Airport EXHIBIT B – INSURANCE REQUIREMENTS
Lessee shall provide evidence satisfactory to the City it has secured all insurance required under this Exhibit. In addition, Lessee shall not allow any contractor to commence work until it has secured all insurance required under this Exhibit.
Commercial General Liability.
Lessee shall take out and maintain, during the performance of all work under this Agreement, in amounts not less than specified herein, Commercial General Liability Insurance, in a form and with insurance companies acceptable to the City.
Coverage for Commercial General Liability insurance shall be at least as broad as the following:
• Insurance Services Office Commercial General Liability coverage (Occurrence Form CG 00 01) or exact equivalent.
Commercial General Liability Insurance must include coverage for the following:
• Bodily Injury and Property Damage
• Personal Injury/Advertising Injury
• Premises/Operations Liability
• Products/Completed Operations Liability
• Aggregate Limits that Apply per Project
• Explosion, Collapse and Underground (UCX) exclusion deleted • Contractual Liability with respect to this Agreement
• Property Damage
• Independent Consultants Coverage
The policy shall contain no endorsements or provisions limiting coverage for (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; (3) products/completed operations liability; or (4) contain any other exclusion contrary to the Agreement.
The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status using ISO endorsement forms CG 20 10 10 01 and 20 37 10 01, or endorsements providing the exact same coverage.
The general liability program may utilize either deductibles or provide coverage excess of a self-insured retention, subject to written approval by the City, and provided that such deductibles shall not apply to the City as an additional insured.
Automobile Liability.
At all times during the performance of the work under this Agreement, Lessee shall maintain Automobile Liability Insurance for bodily injury and property damage including coverage for owned, non-owned and hired vehicles, in a form and with insurance companies acceptable to the City.
Coverage for automobile liability insurance shall be at least as broad as Insurance Services Office Form Number CA 00 01 covering automobile liability (Coverage Symbol 1, any auto).
Attachment 1
EXHIBIT B – INSURANCE REQUIREMENTS
Loyd’s Aviation Fixed Base Operator Lease Agreement 55
City of El Paso De Robles, Paso Robles Municipal; Airport The policy shall give City, its elected and appointed officials, officers, employees, agents and City designated volunteers additional insured status.
Subject to written approval by the City, the automobile liability program may utilize deductibles, provided that such deductibles shall not apply to the City as an additional insured, but not a self-insured retention.
Workers’ Compensation/Employer’s Liability.
Lessee certifies that he/she is aware of the provisions of Section 3700 of the California Labor Code which requires every employer to be insured against liability for workers’ compensation or to undertake selfinsurance in accordance with the provisions of that code, and he/she will comply with such provisions before commencing work under this Agreement.
To the extent Lessee has employees at any time during the term of this Agreement, at all times during the performance of the work under this Agreement, Lessee shall maintain full compensation insurance for all persons employed directly by him/her to carry out the work contemplated under this Agreement, all in accordance with the “Workers’ Compensation and Insurance Act,” Division IV of the Labor Code of the State of California and any acts amendatory thereof, and Employer’s Liability Coverage in amounts indicated herein. Lessee shall require all contractors to obtain and maintain, for the period required by this Agreement, workers’ compensation coverage of the same type and limits as specified in this Section.
Professional Liability (Errors and Omissions). At all times during the performance of the work under this Agreement, Lessee shall maintain professional liability or Errors and Omissions insurance appropriate to its profession, in a form and with insurance companies acceptable to the City and in an amount indicated herein. This insurance shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of Lessee. “Covered Professional Services” as designated in the policy must specifically include work performed under this Agreement. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend.
Minimum Policy Limits Required.
The following insurance limits are required for the Agreement:
Combined Single Limit
Commercial General Liability $5,000,000 per occurrence/$10,000,000 aggregate for bodily injury, personal injury, and property damage
Automobile Liability $1,000,000 combined single limit
Employer’s Liability $1,000,000 per occurrence
Professional Liability $2,000,000 per claim and aggregate (errors and omissions) Defense costs shall be payable in addition to the limits.
Requirements of specific coverage or limits contained in this Section are not intended as a limitation on coverage, limits, or other requirement, or a waiver of any coverage normally provided by any insurance.
Any available coverage shall be provided to the parties required to be named as Additional Insured pursuant to this Agreement.
Attachment 1
EXHIBIT B – INSURANCE REQUIREMENTS
Loyd’s Aviation Fixed Base Operator Lease Agreement 56
City of El Paso De Robles, Paso Robles Municipal; Airport Evidence Required. Prior to execution of the Agreement, Lessee shall file with the City evidence of insurance from an insurer or insurers certifying to the coverage of all insurance required herein. Such evidence shall include original copies of the ISO CG 00 01 (or insurer’s equivalent) signed by the insurer’s representative and Certificate of Insurance (Acord Form 25-S or equivalent), together with required endorsements. All evidence of insurance shall be signed by a properly authorized officer, agent, or qualified representative of the insurer and shall certify the names of the insured, any additional insureds, where appropriate, the type and amount of the insurance, the location and operations to which the insurance applies, and the expiration date of such insurance.
Policy Provisions Required.
Lessee shall provide the City at least thirty (30) days prior written notice of cancellation of any policy required by this Agreement, except that Lessee shall provide at least ten (10) days prior written notice of cancellation of any such policy due to non-payment of premium. If any of the required coverage is cancelled or expires during the term of this Agreement, Lessee shall deliver renewal certificate(s) including the General Liability Additional Insured Endorsement to the City at least ten (10) days prior to the effective date of cancellation or expiration.
The Commercial General Liability Policy and Automobile Liability Policy shall each contain a provision stating that Lessee’s policy is primary insurance and that any insurance, self-insurance or other coverage maintained by the City or any named insureds shall not be called upon to contribute to any loss.
The retroactive date (if any) of each policy is to be no later than the effective date of this Agreement. Lessee shall maintain such coverage continuously for a period of at least three years after the completion of the work under this Agreement. Lessee shall purchase a one (1) year extended reporting period A) if the retroactive date is advanced past the effective date of this Agreement; B) if the policy is cancelled or not renewed; or C) if the policy is replaced by another claims-made policy with a retroactive date subsequent to the effective date of this Agreement.
All required insurance coverages, except for the professional liability coverage, shall contain or be endorsed to waiver of subrogation in favor of the City, its officials, officers, employees, agents, and volunteers or shall specifically allow Lessee or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Lessee hereby waives its own right of recovery against City, and shall require similar written express waivers and insurance clauses from each of its contractors.
The limits set forth herein shall apply separately to each insured against whom claims are made or suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Consultant from liability in excess of such coverage, nor shall it limit Lessee’s indemnification obligations to the City and shall not preclude the City from taking such other actions available to the City under other provisions of the Agreement or law.
Qualifying Insurers.
All policies required shall be issued by acceptable insurance companies, as determined by the City, which satisfy the following minimum requirements:
Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and admitted to transact in the business of insurance in the State of California, or otherwise allowed Attachment 1
EXHIBIT B – INSURANCE REQUIREMENTS
Loyd’s Aviation Fixed Base Operator Lease Agreement 57
City of El Paso De Robles, Paso Robles Municipal; Airport to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.
Additional Insurance Provisions.
The foregoing requirements as to the types and limits of insurance coverage to be maintained by Lessee, and any approval of said insurance by the City, is not intended to and shall not in any manner limit or qualify the liabilities and obligations otherwise assumed by Lessee pursuant to this Agreement, including but not limited to, the provisions concerning indemnification.
If at any time during the life of the Agreement, any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Lessee or City will withhold amounts sufficient to pay premium from Lessee payments. In the alternative, City may cancel this Agreement.
The City may require the Lessee to provide complete copies of all insurance policies in effect for the duration of the Agreement.
Neither the City nor any of its officials, officers, employees, agents or volunteers shall be personally responsible for any liability arising under or by virtue of this Agreement.
Contractor Insurance Requirements. Lessee shall not allow any contractors to commence work at the Airport until they have provided evidence satisfactory to the City that they have secured all insurance required under this Section. Policies of commercial general liability insurance provided by such contractor shall be endorsed to name the City as an additional insured using ISO form CG 20 38 04 13 or an endorsement providing the exact same coverage. If requested by Lessee, City may approve in writing different scopes or minimum limits of insurance for particular contractors.
Attachment 1
EXHIBIT C – PROPOSALS
Loyd’s Aviation Fixed Base Operator Lease Agreement 58
City of El Paso De Robles, Paso Robles Municipal; Airport EXHIBIT C – PROPOSALS
[***LOYD’S PROPOSAL AND SUPPLEMENTAL INFORMATION TO BE INSERTED ON FOLLOWING PAGES***]
Attachment 1
Proposal
Fixed Base Operation
Paso Robles Municipal Airport
Attachment 1
Attachment 1
2 Table of Contents
1 EXECUTIVE SUMMARY ................................................................................................... 3
1.1 SUMMARY OF COMPENSATION ............................................................................................. 3
1.2 CAPITAL INVESTMENT .......................................................................................................... 4 2 QUALIFICATIONS AND EXPERIENCE ......................................................................... 5
2.1 BACKGROUND AND HISTORY ............................................................................................... 5
2.2 MANAGEMENT PROFILES ..................................................................................................... 7 3 REFERENCES .................................................................................................................... 13 4 MANAGEMENT PLAN .................................................................................................... 14
4.1 PLAN OVERVIEW ................................................................................................................ 14
4.2 ROLES AND RESPONSIBILITIES ........................................................................................... 14
4.3 ORGANIZATIONAL CHART .................................................................................................. 15
4.4 STAFFING AND HOURS OF OPERATION ................................................................................ 16
4.5 TRAINING AND QUALITY ASSURANCE PROGRAMS ............................................................. 16
4.6 INITIATION OF OPERATION.................................................................................................. 20 5 OPERATIONAL PLAN ..................................................................................................... 22
5.1 PRODUCTS AND SERVICES .................................................................................................. 22
5.2 EQUIPMENT COSTS ............................................................................................................. 24
5.3 POLICIES AND PROCEDURES ............................................................................................... 24 6 MARKETING PLAN ......................................................................................................... 27
6.1 MARKET GROWTH STRATEGY ............................................................................................ 27
6.2 ADVERTISING STRATEGY ................................................................................................... 27
6.3 PRICING STRATEGY ............................................................................................................ 27 7 FINANCIAL PLAN ............................................................................................................ 29
7.1 STATEMENT OF FINANCIAL CAPACITY ................................................................................ 30
7.2 THREE YEAR HISTORICAL INCOME .................................................................................... 31
7.3 RENTS, FEES, AND OTHER CHARGES .................................................................................. 32
7.4 PROOF OF INSURANCE ........................................................................................................ 32 8 DEVELOPMENT CONCEPT PLAN ............................................................................... 33
8.1 COST ESTIMATES ................................................................................................................ 33
8.2 CONSTRUCTION SCHEDULE ................................................................................................ 33
8.3 AMORTIZATION AND LENGTH OF LEASE ............................................................................. 33
8.4 EXECUTIVE FBO ................................................................................................................ 33
8.5 HANGAR DEVELOPMENT .................................................................................................... 35 9 EXHIBITS ........................................................................................................................... 36 Attachment 1
3 1 Executive Summary
Loyd’s Aviation is pleased to offer its proposal to the City of El Paso De Robles (City) for the Fixed Base Operation at the Paso Robles Municipal Airport (KPRB). Enclosed, you will find our plan to improve, develop, and service the General Aviation needs at KPRB.
Loyd’s Aviation brings more than 65 years of aviation experience into this proposal, including Fuel Operations and Handling, Hangar Storage and Construction, Aircraft Maintenance, Corporate Aircraft Management and Aircraft Charter. In support of those operations, Loyd’s Aviation maintains an Air Carrier Certificate under 14CFR Part 135 (#LOYA165G) and a FAA Certified Repair Station Certificate under 14CFR Part 145 (#7LOR165C).
In preparation for this proposal, Loyd’s Aviation has made itself familiar with the operation of KPRB, the Request for Proposal (RFP), and Airport publications. Further, Loyd’s Aviation understands the objectives of the City as they relate to KPRB and as stated in the RFP.
This proposal is a natural expression of interest for Loyd’s Aviation. For several decades we have been a user of KPRB, have cared for its tenants through our wide range of services, and value several happy customers currently based there. Because Kern County is so agriculturally centered, many of our customers are both economically and socially connected to Paso Robles.
For more than 65 years we’ve offered aviation services centered around personal relationships backed with expertise and high standards. The FBO is often the first impression for new visitors to a city and we hold that responsibility in high regard. Paso Robles makes a perfect cultural fit with our values, our clientele, and our team.
1.1 Summary of Compensation
Based upon the information contained within the RFP, and subject to the negotiated terms of a master lease between the City and Loyd’s Aviation, the following fees are proposed.
Lease Rates
Executive Air Center Offices (FBO Dedicated)
Executive Air Center Storage Hangar (FBO Dedicated)
Restaurant Area of the Airport Terminal
Dedicated FBO Office Space (Terminal)
Flowage Fees
Jet Fuel $.12 per gallon*
Avgas $.10 per gallon*
Fuel Facilities Development (all fuels) $.03 per gallon* * or as otherwise stated in the most recently adopted Comprehensive Fee Schedule.
Parking/Overweight Fees
Per the current Adopted Comprehensive Fee Schedule as applicable with a negotiated split between City and FBO.
Attachment 1
4 1.2 Capital Investment
Loyd’s Aviation is proposing two capital improvement projects as a part of this proposal. The first is an addition to the existing terminal for the purposes of supporting the FBO operations and passengers. The second is a hangar development project located on the vacant land identified in the RFP and located directly west of the fuel farm. The details of each project can be found in the Development Plan below.
Financing for each project will be secured from traditional banking sources. See the financial letter of reference contained in the Financial Plan. Amortization of capital is expected to be long-term, in the 20+ year range.
Deployed Equipment
The anticipated equipment needs will include the following:
Fuel Trucks
A total of 3 trucks are anticipated to be needed in support of the FBO operations. Those include two Jet-Fuel trucks and one Avgas truck. Trucks will meet all applicable fire and quality assurance standards and will be inspected daily in accordance with Loyd’s Aviation’s IS-BAH approved standards.
Ground Service Equipment
The anticipated need for ground service equipment (GSE) includes a 28-volt Ground Power Unit (GPU), a lavatory service cart, and a tug appropriate for the size and operational needs of the FBO and based aircraft.
Aircraft
Loyd’s Aviation’s fleet of aircraft available for charter will be available for use to local clients and occasionally stored at KPRB. Additionally, aircraft management and charter services will be offered to locally based aircraft owners. Loyd’s Aviation has served KPRB for many years, bringing passengers from other locations as well as picking up local customers.
This proposal is a natural expression of interest for Loyd’s Aviation. For several decades we have been a user of KPRB, have cared for its tenants through our wide range of services, and value several happy customers currently based there. Because Kern County is so agriculturally centered, many of our customers are both economically and socially connected to Paso Robles.
For more than 65 years we’ve offered aviation services centered around personal relationships backed with expertise and high standards. The FBO is often the first impression for new visitors to a city and we hold that responsibility in high regard. Paso Robles makes a perfect cultural fit with our values, our clientele, and our team.
Attachment 1
5 2 Qualifications and Experience
2.1 Background and History
Loyd’s Aviation was established in 1958 by Byron Loyd in Bakersfield, CA. Initially a flying service company, Byron began selling aircraft parts, followed by the construction of shadeports and hangars at Meadows Field (KBFL). In 1986, Byron’s son Steve Loyd joined the company as President and continued its growth by adding an Aircraft Maintenance business and Fuel services. Aircraft Management and Aircraft Charter have remained as services of the company.
In 2005, Ryan Crowl joined the company as a flight instructor and in 2016 took over as its President, a role he continues to hold.
Today, Loyd’s Aviation operates Bakersfield Jet Center, a Full-Service FBO at Meadows Field, as well as a Flight Department, Parts Sales department, hangar rentals and a maintenance business, Loyd’s Aircraft Maintenance.
Loyd’s Aviation has been in continuous business at Meadows Field (KBFL) Bakersfield, CA since 1958. Currently, it leases approximately 25 acres of property from the County of Kern at KBFL on a new 30-year lease signed in 2022. Loyd’s Aviation operates business units in the following aviation areas:
Fuel and Line Services
• Loyd’s Aviation, DBA Bakersfield Jet Center, is the largest FBO at Meadows Field. • Certified Stage III under the International Standard for Business Aircraft Handling (IS-BAH). Bakersfield Jet Center was just the 8th company in the U.S., and 21st in the World, to achieve Stage III status. It remains the only IS-BAH Certified FBO of any kind in Kern County.
• Contracted fuel supplier for the US Government Defense Logistics Agency (DLA). • Contracted fuel supplier for the Corporate Aircraft Association (CAA). • Avfuel Branded fuel dealer since 2001.
• All Line Service Technicians (LSTs) NATA Safety 1st Trained and Certified. • In Excess of 100,000 sq. ft. of hangar storage.
Aircraft Maintenance Services
• Loyd’s Aircraft Maintenance is a wholly owned subsidiary of Loyd’s Aviation and has been in operation since 1986.
• FAA 14 CFR Part 145 Repair Station Certificate.
• Cessna and Piper Aircraft Authorized Repair Station.
• Authorized dealer of Garmin Avionics.
• A wide variety of aircraft served from single-engine piston to corporate jets.
Attachment 1
6 • Turbine Aircraft Specialties in Beechcraft King Air and Cessna Citation products. • Retail Aircraft Parts Sales.
Flight Department Services
• Aircraft Management Services – Including provisions of pilots, maintenance, hangar, fuel, accounting, scheduling, and concierge services.
• FAA 14 CFR Part 135 Air Carrier (Charter) Certificate. • Currently manages piston, turboprop and jet aircraft.
Attachment 1
7 2.2 Management Profiles
The following pages show the profiles, training, experience, and certifications of the management team at Loyd’s Aviation. Personnel described hold the titles of:
• President
• CFO/General Manager
• Vice President
• Safety Coordinator
• Line Department Manager
Attachment 1
8 Ryan Crowl – President
Pilot Ratings
Airline Transport Pilot Flight Instructor Ratings – CFI, CFII, MEI Small UAS Aircraft Type Ratings – BE-30, CE525, CE560XL, CE-680 Flight Experience
Total ............................... 7000+ PIC .............. 6500+ Turbojet ...................... 1400+ Work Experience
Loyd’s Aviation Sept. 2005 – Present
Positions Held:
• President (Current), 2016-Present
• VP of Flight Operations, 2009-2016
• Charter and Flight School Director, 2007-2009
• Chief Flight Instructor, 2005-2007
Current Duties:
• Management Responsibility for Loyd’s Aviation’s overall operation and direction • Management of 40+ employees
• Financial and Strategic Planning
• Creation of new sales and business opportunities
Embry-Riddle Aeronautical University March 2001 – August 2005 Positions Held:
• Assistant Training Manager
• Flight Supervisor
• Flight Standards Pilot
• Flight Instructor
Education
Missouri State University 2018 – 2022
Master of Business Administration
Embry-Riddle Aeronautical University 1996 – 2000
Bachelor of Science
• Major: Aeronautical Science
• Minor: Business Administration
Other Experience
• Vice Chair, National Air Transportation Association (NATA) Airport Business Committee • Board Member, Embry-Riddle Aeronautical University – Aerospace Advisory Board • Rotary Club of Bakersfield
• Vistage CEO Group - Member
Attachment 1
9 Chris Clements – CFO/General Manager
Work Experience
Loyd’s Aviation Sept. 2008 – Present
Positions Held:
• General Manager, 2011 – Present
• Accounting Manager, 2008-2011
Oversight of Accounting functions
Oversight of Managed Aircraft companies
• Accounting Clerk, 2008 – 2008
Accounts Receivable/Accounts Payable
Bank Reconciliation
Payroll
Current Responsibilities:
• Manage daily operations.
• Oversee facilities maintenance.
• Manage rental space.
• Oversee Accounting department.
• Oversee Human Resources department.
Education
California State University - Bakersfield 2007
Bachelor of Science
• Major: Business Administration
Other Experience
• National Business Aviation Association (NBAA) Certified Aviation Manager – 2022 • Boy Scouts of America – Eagle Scout – 1992
Attachment 1
10 William Long – Vice President of Aircraft Maintenance Work Experience
Loyd’s Aviation 1991- Present
Positions Held:
• Vice President of Maintenance (Current), 2007-Present • Parts Department Manager, 1991-2007
Current Duties:
• Operational responsibility for Loyd’s Aircraft Maintenance, Inc. • Management of all A&P Mechanics
• Oversight of Parts Department
• Aircraft Sales
Previous Responsibilities
• Management of the Line Service Department
• Supervision of the Rentals Department (Aircraft and RV storage) • IT Management and Website design
• Sourcing and Procurement of Aircraft Parts
• Aircraft Maintenance Quoting/Estimating
Other Experience
• Private Pilot License
• Extensive Parts and Inventory Management Experience
Attachment 1
11 Daniel Samms – Safety Coordinator
Work Experience
Loyd’s Aviation 2014- Present
Positions and Responsibilities:
• Managed the Line Service Department for 5 years (2014 - 2019) • Concurrently managed Customer Service Representatives for 4 years (2015 - 2019). • Managed the Safety Department from 2016 to current, moving into the role full time in February of 2019.
• Lead Loyd's Aviation through all 3 two-year phases of the IS-BAH (International Standard of Business Aircraft Handling) Certification, becoming just the 8th U.S. FBO, and 21st in the world, to be approved for the 3rd Stage.
• Helped develop our robust Safety Management System and Safety Culture. • Wrote the Employee Policy and Procedure Manual used in the Loyd's Aviation Line Department.
• Nearly a decade of experience in Fuel QC and compliance. • Trained dozens of employees to our exacting standards. • Review SMS entries in conjunction with the Safety Committee to help form future policy and mitigate risks.
• Perform monthly audits and approve of necessary solutions to ensure compliance with OSHA, FAA, TSA, NTSB, CERS, SJVAPCD, and other governmental regulatory bodies.
Education
Summit Bible College 2018
Master of Theology in Counseling – Graduated Cum Laude
Summit Bible College 2018
Bachelor of Theology
• Major: Christian Counseling
Other Experience
• Cal-OSHA 30 Hour Card
• CPR Certified
• IS-BAH Auditor (lapsed)
• NATA Safety 1st Qualified
Attachment 1
12 John Wright – Line Service Manager
Work Experience
Loyd’s Aviation 2014- Present
Positions and Responsibilities:
• Recruiting, interviewing and hiring Line Department employees. • Implemented mentoring program to promote positive feedback and engagement. • Open and close location and monitor shift changes to uphold successful operations strategies and maximize business success.
• Inventory Management, Including the ordering of fuel deliveries (Jet-A & 100LL). • Quality Assurance (QA) Management of Aviation Fuels – Quality checks, daily samples, filter changes, etc.
• Maintenance of Training and Employee Records.
• Employee Coaching and Training.
• Hazardous Waste Management and Removal.
• Personal Protective Equipment (PPE) Inventory management and enforcement. • Uniform Management
Education and Training
• NATA Safety 1st Training - 12/2022 – Certificate
• Fuel Safety Supervisor Training – 10/2022 Certificate • Professional Development: Peer to Supervisor – Certificate • Negating Negativity in a Work Place – Certificate
• Workplace Harassment Prevention for Managers – Certificate • Safety Management Systems Training – Certificate
• Solid Foundation for Supervisors Training – Certificate Attachment 1
13 3 References
The references listed below are available for the City’s verification use.
Business References
Curt Castagna – President/CEO
Aeroplex Group Partners
[email protected]
(562) 981-2659
Joe Gregory – President
Grapevine MSP
[email protected]
(661) 345-5526
Ben Laverty IV – COO
California Safety Training
[email protected]
(661) 377-8300
Financial References
Tri-Counties Bank
Janet Hepp – SVP, Loans
[email protected]
(661) 371-2036
Avfuel
Mark Haynes – VP Sales
[email protected]
(734) 663-6466, ext. 424
Customer References
Craig Stoller – Co-Owner
Sextant Wines
[email protected]
(805) 542-0133
Matt Daglish – VP of Flight Operations
Wonderful Aviation
[email protected]
(661) 391-6400
Brian Maxted – CEO
Holloway Group
[email protected]
(805) 369-2000
Attachment 1
14 4 Management Plan
4.1 Plan Overview
Loyd’s Aviation intends to take a “hands-on” approach to managing the FBO location through the use of an onsite, full-time manager, as well as oversight and support offered by executive staff. All key members of the management team located in Bakersfield will contribute to the oversight of the Paso Robles FBO and all members of the team will make regular visits to the location. The team’s current proximity (either a 2-hour drive or a 30-minute flight) makes that an easily obtainable goal. Team members in Paso Robles will also visit Bakersfield for initial and recurrent training.
The mission, vision, and values of Loyd’s Aviation will extend to the Paso Robles Airport.
Those are:
Mission
The mission of Loyd’s Aviation is to maintain the highest level of safety and customer service in the aviation industry.
Vision
The vision of Loyd’s Aviation is to be a leader in defining a premier aviation company that will foster a rewarding, nurturing, and challenging work environment.
Values
Safety, Customer Service, Integrity
4.2 Roles and Responsibilities
Below are brief descriptions of the roles and responsibilities of the applicable positions to this RFP. Additional information on these positions and personnel can be found in the Qualifications and Experience section.
President – Provides oversight of all Loyd’s Aviation departments and revenue streams, drives growth, nurtures the culture, and acts as chief cheerleader for employee success.
General Manager – Oversees accounting for all Loyd’s Aviation businesses, oversees FBO operations, plans capital expenditures, and provides mentorship for the Line Service Manager.
Line Service Manager (LSM) – Supervises LSTs, ensures Quality Assurance (QA) testing is accurate and complete, supervises the maintenance of equipment, and ensures excellent customer service.
On-Site Manager – Will supervise the LSTs and CSRs under the direction of the Line Service Manager, set staff schedules, ensure QA testing is accurate and complete, ensure compliance Attachment 1
15 with policies and procedures, work with LSM to maintain equipment, and ensure excellent customer service.
Safety Coordinator – Will facilitate the implementation and maintenance of our existing Safety Management System (SMS). This includes onsite inspections and follow-up of SMS safety concerns. Will also create a custom Emergency Response Plan unique to the operation.
4.3 Organizational Chart
Attachment 1
16 4.4 Staffing and Hours of Operation
Loyd’s Aviation will hire and train local staff to support the functions required by the RFP.
Unless otherwise noted, it is the intention of Loyd’s Aviation to fulfill this contract with its own employees. It is anticipated that a staff of four full-time positions and 2-3 part-time positions will be required to meet the requirements of the RFP. That will include one On-Site Supervisor, one Customer Service Representative (CSR) and 4-5 Line Service Technicians (LSTs). Loyd’s Aviation intends to hire locally to fill all of the positions if possible.
Those staff members will be supported by Loyd’s Aviation’s management staff and Safety Coordinator. Resumes for key management positions can be found in the Qualifications and Experience section.
Daily schedules will usually consist of two overlapping shifts, allowing for breaks to be covered.
Coverage will include 7-day staffing. Seasonal and holiday adjustments may be made to accommodate demand. Major holidays may be reduced to a minimum staff, depending on demand, but will always have coverage via callout service. The anticipated schedule is below.
Monday - Friday 0600-1800
Saturday and Sunday 0700-1800
All Line Service Technicians (LSTs) are required to participate in the On Call program once they have reached the level of LST2 on the Loyd’s Aviation LST Career Ladder. This program is designed so that, on a weekly rotation, an LST is responsible for any after-hours fueling needs and emergencies.
The On-Call LST must be able to respond to the call within 1 hour during their assigned On-Call week and may not engage in any activity that could prevent the employee from completing the necessary services. This includes, but is not limited to, consuming/using any and all substances or medications that can affect one or more mental and/or physical functions (e.g., coordination, reflexes, vision, mental capacity, judgment, etc.), in accordance with Loyd’s Aviation Employee Policy Handbook.
4.5 Training and Quality Assurance Programs
Training
Loyd’s Aviation provides both general and specific training for Line Service personnel through use of the online National Air Transportation Association (NATA) Safety 1st program, in addition to the in-house training program which includes equipment specific training. Supervisor training also includes Fuel-Supplier Sponsored Quality Assurance training. Training includes the following areas and requirements:
• The NATA Safety 1st program will be completed biennially by all Line Service Technicians employed by Loyd’s Aviation, including Human Factors training. • LSTs are expected to complete a new ‘Equipment Specific Training’ document each year of employment.
Attachment 1
17 • First Aid training, including the use of Automated External Defibrillators (AED’s) will be provided to select employees of the department biennially. • All employees of Loyd’s Aviation shall complete a training course in the recognition of classes of fires, extinguisher types, and how to successfully extinguish aviation and nonaviation related fires at the beginning of employment, and at least annually thereafter. • All employees of Loyd’s Aviation shall complete a review of the Emergency Response Plan (ERP) and emergency evacuation procedures at the beginning of employment, and at least annually thereafter. This shall include practical activity training as well as the location of emergency equipment.
• Employees are not permitted to operate fuel trucks or perform job-specific tasks such as fueling on their own until they have received adequate training and been approved by management.
Quality Assurance
Loyd’s Aviation’s Quality Assurance Program is integrated into its EPPM (Employee Policy and Procedures Manual) and NATA Safety 1st Training. It is tracked and inspected via Jet Fuel QC, a program that records and tracks all Quality Assurance (QA) tests. All managers have access to Jet Fuel QC, which gives both an instant look and historical records of the status of all QA testing. All of Loyd’s Aviation’s Line Department policies, procedures, and records are independently audited through the International Business Aviation Council’s (IBAC) International Standard for Business Aircraft Handling (IS-BAH) program.
Quality Assurance (QA) Checks are a vital component of the operation of the Line Department.
These QA checks provide assurance as to the quality of dispensed fuel, in addition to ensuring fueling equipment remains in a satisfactory, operable condition.
QA checks are monitored by the General Manager, Safety Coordinator, and Line Dept Manager and are updated annually through Safety Management System (SMS) data and to comply with industry, and IS-BAH, best practices.
Safety Coordinator and Line Department Manager will ensure compliance to policy during regular and unscheduled site visits.
QA Checks are performed under the guidance of NATA Safety 1st principles. The QA checks are broken down into two categories (Fuel Farm and Trucks), then subdivided into daily, weekly, monthly, quarterly, or annual periods.
Fundamentals of Inspection
Loyd’s Aviation utilizes Jet Fuel QC for all of its checking and testing records and forms. As such, all data, including inspection dates and results are inputted electronically via a tablet and monitored via a dashboard by supervisors. Paper forms are not typically printed however can be retrieved from Jet Fuel QC. Samples of forms produced out of Jet Fuel QC are listed below. All forms are ATA compliant.
Inspection Supervision
Attachment 1
18 Supervision of inspection status is the responsibility of all LSTs. However, special emphasis of this effort is given to the Line Service Manager and On-Site Manager. Additionally, periodic inspections are completed by the Safety Coordinator and the General Manager. Supervisors of all levels have access to the Jet Fuel QC dashboard which gives instant access to the status of inspections and QA testing.
Correction of Discrepancies
Guidance for correcting discrepancies is contained within the EPPM. All employees are highly encouraged to report safety or quality issues immediately to their supervisor. Additionally, Loyd’s Aviation’s Safety Management System (SMS) is an active method for discovering, tracking and remedying any real, imminent or potential safety threats.
Examples of QA checks from Jet Fuel QC are below:
Attachment 1
19 Attachment 1
20 4.6 Initiation of Operation
The initiation and implementation of Loyd’s Aviation’s plan will involve four phases.
Descriptions of the phases are below along with an estimated timeframe for each.
Phase 1 – Ramp Up
The first phase will begin immediately upon notification of a successful proposal. During this approximately 90-day period, Loyd’s Aviation will focus on:
• Recruiting, hiring and training personnel: As the most time-consuming part of this phase, this work will begin immediately. Loyd’s Aviation will recruit locally and carefully select candidates to help with the FBO launch. Prior to the second phase, new team members will be trained on-site in Bakersfield to ensure a smooth transition on opening day. The Line Service Manager will take the lead role in supervising the recruiting and training.
• Procure necessary equipment: Two Jet A and one Avgas refueler trucks will be required for the FBO, so Loyd’s Aviation will secure these trucks through direct purchases and/or lease agreements. Additionally, a GPU and a lavatory service cart will be purchased to be ready upon commencement of the lease. The General Manager will take the lead role in procuring equipment, assisted by the President.
• Customize policies and procedures specifically for PRB. The Line Service Manager and Safety Coordinator will work together to complete this step. The existing Employee Policy and Procedures Manual (EPPM) will be adapted to meet the site-specific needs at KPRB. This step will also include a specific Spill Prevention Control and Countermeasures Plan (SPCC), and Safety Management System (SMS) based on Loyd’s Aviation’s existing plans.
Phase 2 – Launch Operations
The second Phase will begin on the commencement date of the lease and is expected to extend six to twelve months. During this phase, Loyd’s Aviation will utilize the existing portions of the terminal, specifically the first floor FBO office, as a base from which to greet customers and operate its fueling services.
During this period, the priority is to build relationships with airport tenants and businesses alike.
With the goal of fostering a safe and efficient airport environment that encourages growth, this step is quite possibly the most important of all and will not be rushed. We realize that the aviation business is based on relationships, so that will be the focus. Loyd’s Aviation has no intention of displacing any existing FBO tenant. On the contrary, its goal is to foster a relationship of growth for all.
The last remaining portion of this phase will include a refinement of policies and procedures, building a cohesive team of staff, and learning the airport environment, seasonality of operations, and the ebb and flow of traffic.
Phase 3 – FBO Construction
This phase will be focused on the construction of the FBO building as an add-on to the existing terminal. Details of the plans for this can be found in the Development Plan. It is anticipated Attachment 1
21 that this phase will extend for twelve to eighteen months. The first step will be to finalize the FBO design, followed by securing permits, and finally begin the construction. During construction, FBO operations will continue out of the existing FBO office, which will be remodeled during the final phase of construction. This phase may overlap a bit with Phase 2.
Phase 4 – Hangar Development
The final phase of operation is the development of the land site west of the fuel farm. Loyd’s Aviation’s detailed plan for hangar development can be found in the Development Plan. This construction is anticipated to begin after Phase 3 is complete and will be constructed in phases as demand presents itself. The first hangars are expected to take twelve to eighteen months to complete, depending on steel availability.
Attachment 1
22 5 Operational Plan
5.1 Products and Services
In addition to the specific products and services listed below, Loyd’s Aviation can support KPRB with additional personnel and equipment during peak business periods or heavy fire-fighting activity. Onsite support is only a 30-minute flight, or a two-hour drive away.
Fuel Services
Loyd’s Aviation will offer both Jet A and Avgas via truck and maintain the self-serve Avgas location. The quality of fuels delivered is a top priority, which is why Loyd’s Aviation is an ISBAH (International Standard for Business Aircraft Handling) Stage III certified FBO. This certification covers all aspects of an FBO’s operations from towing to quality assurance (QA) and requires a minimum of 4 years and three successful audits, each presenting a higher standard than the first, to receive the Stage III certification. Loyd’s Aviation was proud to be just the 23rd FBO in the world and 8th in the United States to receive such certification.
As part of the commitment to quality fuel, Loyd’s Aviation utilizes Jet Fuel QC to track and record its QA checks and tests. One of many advantages to the system is that it allows for management oversite of the checks even from a remote location. Samples of QA forms from Jet Fuel QC are located in the previous section.
Refueling trucks necessary to support KPRB will consist of two Jet A trucks and a single Avgas truck. Jet A trucks will be equipped with both over-wing and single-point fueling hoses and include an ice-inhibiting additive (“Prist/FSII”) system. These trucks will support the variety of aircraft that may utilize KPRB.
Fuel payment processing will accept all major credit cards, major contract fuel programs, and offer loyalty rewards for enrolled customers.
A note about alternative fuels: Loyd’s Aviation is in tune with the industry’s attempt to reduce emissions from aircraft. Those attempts fall into two categories:
1. Sustainable Aviation Fuel (SAF) is a renewable jet fuel that can be blended with traditional jet fuel in an effort to reduce carbon emissions. That product is currently available in small batches at a significantly increased price compared to traditional jet fuel. Some tax incentives are available to offset the cost, but it is currently running $0.25 to $0.75 per gallon more than traditional jet fuel. Through its suppliers, Loyd’s Aviation has the capability of offering SAF to those customers who would prefer it.
2. Unleaded Avgas has been a goal of general aviation for a number of years. It’s a challenging issue that has not fully been solved yet. At this time, there is only one unleaded option for avgas in the form of UL94. While UL94 is available in limited quantities, it is not approved for all aircraft, it requires aircraft owners to purchase an STC (Supplemental Type Certificate) in order to use the fuel, and it is significantly more expensive than 100LL. There Attachment 1
23 are other options that are on the horizon, but we still do not have a commercially viable unleaded option. As soon as an option emerges, Loyd’s Aviation will seek to offer it to consumers.
Maintenance Services
Loyd’s Aviation does not intend to open its own maintenance shop on the airport, although that ability is available should the need arise. It does, however, intend to support the local maintenance and avionics businesses however possible so they may be successful. That support may come in the way of parts procurement and sales, technical publications support, business management assistance, tooling, or other experience support. If needed, Loyd’s Aviation can also offer the assistance of temporary on-site technicians and specialty equipment to aid local shops. Subject to conversations with their leadership, Loyd’s Aviation wishes to continue the contracted maintenance relationship with Air Jav Aviation to meet the requirements of the RFP.
Ground Handling
Active handling of the transient ramp space will be conducted by local staff. This includes parking, marshalling, chocking and coning off parked aircraft. In some cases, it may also include moving aircraft to overflow parking to free space for others. All of these procedures are outlined in Loyd’s Aviation’s EPPM.
Equipment utilized in ground handling will include a GPU for engine starting, heating and cooling of aircraft, and a lavatory service cart. Each of these is towable by a tug or other small vehicle. Aircraft towing will also be available for FBO hangar tenants and for the positioning of aircraft on the transient ramp, as needed.
Luggage Service
Luggage carts will be on site along with staff to assist arriving and departing passengers.
Ground Transportation Services
Loyd’s Aviation has an existing relationship with Priceless Rental Cars and can offer on-site rental cars for crews and passengers alike. Cars will be kept at the airport, readily available for customers.
Hotel Accommodations
Loyd’s Aviation will seek to negotiate discounted rates at local hotels to accommodate crew and passengers.
Aircraft Sales
Loyd’s Aviation has decades of experience in the sales and acquisition of aircraft and will offer those services to the local aviation community. Sales and acquisitions can increase activity on an airport via pre-buy inspections and maintenance, and new tenants. Loyd’s Aviation maintains an FAA Dealer’s Aircraft Registration Certificate (#D001297), see Exhibit E.
Attachment 1
24 Aircraft Charter
Chartered aircraft will be available under Loyd’s Aviation’s Air Carrier Certificate (#LOYA165G). Loyd’s Aviation currently offers turboprop and jet aircraft for charter.
Positioning discounts for local customers will be offered.
Crew and Passenger Amenities
A variety of refreshments will be available to FBO customers, crews, and passengers, including coffee, water, and snacks. A private crew lounge is available upstairs along with a conference room and additional restroom.
5.2 Equipment Costs
The total estimated capital cost for the main pieces of equipment is $875,000.00. That equipment includes three fuel trucks, a tug, GPU, and lavatory service cart. This estimate does not include any costs for capital improvements.
5.3 Policies and Procedures
Line Service Policies and Procedures are contained within Loyd’s Aviation’s Employee Policies and Procedures Manual (EPPM). Additionally, a Spill Prevention Control and Countermeasures plan (SPCC), Safety Management System (SMS), and an Emergency Response Plan (ERP) contain information used to supplement the EPPM.
Each of these documents are currently implemented at Loyd’s Aviation, discussed at department meetings and/or monthly safety meetings, and are audited by third parties. The information contained within them is beyond the scope of this proposal, but significant topics covered in each document are listed below.
Employee Policies and Procedures Manual (EPPM)
The EPPM is a living reference document that serves as a training source for new LSTs and as a reference point for all Line personnel. It includes information and direction on a large variety of tasks and topics. Each procedure is broken down into step-by-step processes. Some of the contents are:
• Standards of Performance
• Career Ladder
• Training and Competency
• Quality Assurance Checks
• Aircraft Fueling
• HAZMAT Storage
• Ground Service Equipment Maintenance Control System
Spill Prevention Control and Countermeasures (SPCC) Plan The SPCC is a plan to prevent and contain discharges of oil-based products into the environment.
Reviewed every five years, the plan includes:
Attachment 1
25 • Identification and Location of storage sources
• Direction of flow in the event of a rupture or leak
• Assessment of primary and secondary containment
• Personnel Training
• Contingency Planning
Safety Management System (SMS)
The SMS is the core of Loyd’s Aviation’s safety culture. It contains policy elements, safety philosophy, and action items. The system is actively managed by the Safety Coordinator that has been trained in SMS for managers. Examples of its content include:
• Safety Policy Statement – See Exhibit G
• Flight Risk Assessment Tools
• Risk Management Tools
• Root Cause Analysis
• SMS Portal through FltSafety.com – Allows users to input safety concerns that are actively tracked to a resolution.
• Monthly Safety Meetings
Emergency Response Plan (ERP)
The ERP serves as a step-by-step guide to navigating an emergency. It includes useful information not normally utilized in day-to-day operations. Included in the ERP are:
• Emergency Phone Numbers
• Initial Contact and Response action items
• A guide to activating and operating the Emergency Operations Center • On-Site Response steps
• Guidelines to notifying next of kin
• Interactions with news media
• Accident and Incident Investigation
• General Emergency Preparations
• Responses to specific emergencies such as bomb threats, hijacking, and earthquakes. • Checklists for various emergency situations
Licenses, Permits, Operating Certificates
Loyd’s Aviation maintains various permits, licenses and certificates for its business lines. Those applicable for this proposal are listed below and attached as exhibits. • Air Carrier Certificate - #LOYA165G (Exhibit C)
• Repair Station Certificate - #7LOR165C (Exhibit D)
• Dealer’s Aircraft Registration Certificate - #D001297 (Exhibit E) • California Department of Tax and Fee Administration Seller’s Permit – (Exhibit F) Insurance
Loyd’s Aviation is currently insured by QBE Insurance Group, LTD. A certificate of insurance showing current General Liability limits is attached as Exhibit H. Loyd’s Aviation will maintain Attachment 1
26 insurance coverage adequate for its operations and in compliance with City’s Minimum Standards for Airport Services, as amended.
Security Plan
Loyd’s Aviation’s current security plans and practices are heavily driven by TSA and 14CFR Part 139 airport requirements, most of which do not apply to KPRB. A revised plan will be made to accommodate the uncontrolled airport environment. Providing reasonable, yet unintrusive, security will be the goal for that policy.
Attachment 1
27 6 Marketing Plan
6.1 Market Growth Strategy
It is the opinion of Loyd’s Aviation that Paso Robles Municipal airport is positioned well for conservative growth in the coming years. As the City continues to grow and evolve, the airport will as well. The proximity to the central coast, the few options for nearby airline service, the availability of development land, and the lack of congested airspace all combine to paint a picture of growth possibilities.
Airport growth is directly tied to local business growth, especially those businesses that create above-average job wages. Therefore, Loyd’s Aviation would encourage the City to continue its business-friendly practices. Businesses that are interested in establishing or retaining their corporate headquarters near airports are considered to be the most coveted.
Given the current environment, Loyd’s Aviation sees the most growth potential in the small corporate aircraft for KPRB. Specifically, turboprops and light jets represent a healthy portion of the market, and can drive growth in fuel sales, maintenance, and passenger counts. Example aircraft include Beechcraft King Airs, Pilatus PC-12s, Cessna Citation’s CJ series. There is currently a lack of hangar space for that sized aircraft at KPRB while other CA airports are out of space. Conservatively increasing hangar space, without flooding the market, will help to increase the activity and sales on the field without driving hangar prices below profitability. A small waiting list for hangar tenants is a healthy situation, so the addition of two or three corporate-sized hangars every two or three years would be the recommendation based on current demand.
6.2 Advertising Strategy
It has been our experience that targeted, individual marketing based on relationship building works the best. It’s not the flashiest or most exciting method but proves steady and long-lasting.
Therefore, the marketing approach for based tenants will happen through targeted contacts using industry specific data such as JetNet, and others.
Transient traffic marketing will consist of aviation specific ad campaigns on platforms such as fltplan.com, foreflight, Garmin Pilot, etc. Loyd’s Aviation will also represent KPRB at regionally appropriate industry trade shows, such as NBAA’s events and offer fuel reward programs to attract aircraft looking for fuel stops.
6.3 Pricing Strategy
Loyd’s Aviation’s pricing strategy has always been, and will continue to be, one of moderation.
It is not the intention to be the cheapest option and compete solely based on price, nor is it the intention to gouge customers to gain every margin dollar possible. A fair price to allow for fair wages and fair profits, topped off with exceptional service will be the strategy.
Attachment 1
28 Fuel prices will be posted regularly on common industry websites, and adjustments made weekly when appropriate. Discounts for volume purchases, contract fuel accounts, and FBO-hangared tenants will be offered, as well as loyalty programs through the selected fuel supplier.
Aviation Development/Growth and Advocacy
Loyd’s Aviation has always been involved in the larger aviation community, including seats on boards and committees for trade associations. Current memberships include the National Air Transportation Association (NATA), National Business Aviation Association (NBAA), and the Aircraft Owners and Pilots Association (AOPA).
Loyd’s Aviation’s President, Ryan Crowl currently serves as Vice Chair of the Airport Business Committee for NATA. Issues taken up by the committee include SAF, Unleaded Avgas, and NFPA 409 Fire Code for Hangars. In June of 2023, Mr. Crowl was part of a delegation advocating for aviation business alongside NATA on Capitol Hill and met with the Speaker of the House’s staff to discuss the issue.
Additionally, Mr. Crowl is a member of the Aerospace Advisory Board for the Prescott, AZ campus of Embry-Riddle Aeronautical University. As a member of the board, he advises the faculty on current industry issues and concerns and speaks to students in the classroom to promote business and corporate aviation careers. Loyd’s Aviation is very interested in the promotion of general aviation to the next generation of leaders.
These efforts promote the entire general aviation community as a great career choice, a message that is never loud enough. Loyd’s Aviation will spend an estimated $20,000 per year to promote KPRB and will continue to advocate for the industry as a whole.
Attachment 1
29 7 Financial Plan
Portions of this section have been redacted to protect the proprietary and non-public information of Loyd's Aviation. A separate un-redacted version has been provided to the City for exclusive use of the RFP selection committee.
Attachment 1
30 7.1 Statement of Financial Capacity
See letters inserted on the following pages from banking and bonding companies.
Attachment 1
Member FDIC
Tri counties bank
5000 California Ave Ste 110
Bakersfield CA 93309
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31 7.2 Three Year Historical Income
See the following page for a combined financial statement showing total profit and loss for the combined years of 2020, 2021, and 2022. Numbers are shown in an EBITDA format.
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33 8 Development Concept Plan
Loyd’s Aviation’s development plan includes two major conceptual improvements to the Airport.
First is an addition to the existing Airport Terminal to provide an executive FBO space. The second improvement includes the development of a hangar complex located on the vacant lot west of the fuel farm identified in the RFP. Detailed explanations of the two improvements are described below. Final designs may change due to the availability of utilities, material cost fluctuations, financing rates, permitting requirements, or a number of other factors.
8.1 Cost Estimates
Estimated costs for the two improvements are based on preliminary estimates, current materials costs, and projected permitting expenses. Each project will bonded and managed by a licensed general contractor. The hangar development figure below includes the cost of the ramp space/apron shown in the design layout below.
Executive FBO $3,043,400.00
Hangar Development (Total Build) $5,951,600.00
Total $8,995,000.00
Financing for the construction will come from traditional bank financing. See statement of financial capacity in Section 7.
8.2 Construction Schedule
The anticipated schedule for development is described in section 4.6.
8.3 Amortization and Length of Lease
The amortization period for the construction will be up to 24 years. Financial institutions will typically only finance for 80% of the length of a lease. Therefore, Loyd’s Aviation proposes an initial 5-year lease with a contingency that a new lease term will begin upon the commencement of construction for the Executive FBO. At that point, a new term of 30 years, with two 5-year options will begin. That arrangement should allow Loyd’s Aviation plenty of time to design and procure building permits with enough lease to adequately finance the project, and it gives the City an assurance that construction will begin.
8.4 Executive FBO
It is our belief that an addition to the existing terminal makes the most sense for a new FBO for several reasons. First, the large existing ramp space and the large presence of the Airport Terminal makes it the logical parking place for transient aircraft. From both the street side and the ramp side, the terminal is the focal point of the airport. Secondly, locating the FBO in close proximity to the restaurant benefits both businesses.
Attachment 1
34 The airport does not require a large FBO building given the anticipated traffic, but it does need an upscale location that is easy to access from both the ramp and street. The BFO building concept is designed to do just that, and measures approximately 5,200 square feet. The desire is for the addition to look related to the terminal, but with a bright, open, executive look. See Exhibit A for drawings and renderings of the Executive FBO.
First Floor: The lower level will feature an open design that extends upward through both levels on the ramp side. This will allow light from the glass wall to fill the space. The reception desk will be insight from both entrances to allow customer service representatives to greet guests entering from either location.
The restrooms downstairs will feature a classy design with a privacy wall in front of the entrance. Research shows that FBO restrooms are among the highest priorities for guests so they will be well appointed.
The entrance from the ramp side will include a dual-purpose vestibule. It will provide storage for luggage carts to they are easily accessible, as well as provide a way to quiet the noise into the building. Located next to the vestibule will be a landscaped area. This area will help to warm the appeal of the entrance as well as provide a relief place for those traveling with their pets.
A subtle feature of the first-floor design is a doorway between the restrooms and the reception area that will lead into the existing terminal. This will allow customers to access the restaurant without exiting the building, promoting the symbiotic relationship between the FBO and the restaurant.
Not shown on the first-floor design is the use of the dedicated FBO space in the existing terminal. That area will be used as office space for line service staff.
Second Floor: The top floor will also benefit from the open concept and the glass wall to enable a bright space. The conference room will feature several windows, including some facing the ramp area to allow for a view of aircraft activity. The space will be available to all FBO guests.
Additional features of the second floor include a pilot lounge with a view to the street side of the building. This is an important feature so pilots can see when their passengers are arriving. Also upstairs, is a counterspace with seating that can be used as a charging station, workstation, or viewing area. Rounding out the upstairs is a single user restroom, a storage closet, and another access door to the existing terminal.
Below, you will find elevation drawings, floor plans, and artist renderings of the proposed FBO addition. Please feel free to reach out with questions.
Attachment 1
35 8.5 Hangar Development
The hangar development will include up to 11 individual corporate hangars of approximately 3,600 square feet each, and an additional series of small “T” hangars (or box hangars) designed for small aircraft. Independent research of the area’s aviation community has shown Loyd’s Aviation the need for hangars to house corporate-sized aircraft. See Exhibit B for the Hangar Development Plan.
The approach for construction will be an “on-demand” approach. This hangar development is not intended to be built in one phase. Doing so would flood the airport’s hangar market and bring down pricing across the field. A steady approach of two or three hangars at a time will be the plan.
Corporate Hangars
Hangars will be of steel construction, each measuring approximately 3,600 square feet, and include door widths of approximately 60 feet and door heights of approximately 19 feet. These dimensions are adequate to accommodate turboprops, light jets, and some mid-sized jets.
Aircraft larger than a 60-foot wingspan will not be considered for this area due to the taxi lane width constraints approaching the parcel. Options available for hangar tenants will include insulation and a small interior office space.
As an optional add-on value, Loyd’s Aviation has partnered with a new aviation technology company called Hangar Safe. They provide an artificial intelligence system that helps to prevent “hangar rash” damage to aircraft. This system will be offered to hangar tenants.
Small Hangars
Loyd’s Aviation still sees the need for small hangars on the field, which is why the proposal includes a few small hangars that will accommodate single-engine and small twin-engine aircraft.
Attachment 1
36 9 Exhibits
Exhibit A – FBO Design and Renderings
Exhibit B – Hangar Development Plan
Exhibit C – Air Carrier Certificate
Exhibit D – Repair Station Certificate
Exhibit E – Dealer’s Aircraft Registration Certificate
Exhibit F – CDTFA Seller’s Permit
Exhibit G – Safety Policy Statement
Exhibit H – Certificate of Liability Insurance
Exhibit I – Signed RFP Addenda Acknowledgement Forms
Exhibit J – Airport Operating Permit
Attachment 1
A-1
Exhibit A
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A-2 Attachment 1
A-3 Attachment 1
Attachment 1 Page 862 of 878 City Council Agenda Agenda & Addendum September 17, 2024 Attachment 1 Page 863 of 878 City Council Agenda Agenda & Addendum September 17, 2024 Attachment 1 Page 864 of 878 City Council Agenda Agenda & Addendum September 17, 2024 Exhibit C
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Exhibit D
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Exhibit E
Attachment
1
DISPLAY CONSPICUOUSLY AT PLACE OF BUSINESS FOR WHICH ISSUED
CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION
SELLER'S PERMIT
April 1, 2001
ACCOUNT NUMBER
097863446 - 10000
Off ce of Contro :
Bakersf e d Branch Off ce
NOTICE TO PERMITTEE:
You are required to obey all
Federal and State laws that
regulate or control your
business This permit does
not allow you to do
otherwise
LOYD'S AVIATION INC
1601 SKYWAY DR
BAKERSFIELD CA 93308-1628
S HEREBY AU HOR ZED PURSUAN O SALES AND USE AX LAW O ENGAGE N HE BUS NESS OF SELL NG ANG BLE
PERSONAL PROPER Y A HE ABOVE LOCA ON H S PERM S VAL D ONLY A HE ABOVE ADDRESS
H S PERM S VAL D UN L REVOKED OR CANCELED AND S NO RANSFERABLE F YOU SELL YOUR BUS NESS OR DROP OU
OF A PAR NERSH P NO FY US OR YOU COULD BE RESPONS BLE FOR SALES AND USE AXES OWED BY HE NEW OPERA OR
OF HE BUS NESS
Not valid at any other address
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CD FA-442-R REV 18 (5-18)
A MESSAGE TO OUR NEW PERMIT HOLDER
As a seller, you have rights and responsibilities under the Sales and Use Tax Law. In order to assist you in your endeavor and to better understand the law, we offer the following sources of help:
• V s t ng our webs te at www cdtfa ca gov
• V s t ng an off ce
• Attend ng a Bas c Sa es and Use Tax Law c ass offered at one of our off ces • Send ng your quest ons n wr t ng to any one of our off ces • Ca ng our to free Customer Serv ce Center at 1 800 400 7115 (CRS:711) As a seller, you have the right to issue resale certificates for merchandise that you intend to resell. You also have the responsibility of not misusing resale certificates. While the sales tax is imposed upon the retailer, • You have the r ght to seek re mbursement of the tax from your customer • You are respons b e for f ng and pay ng your sa es and use tax returns t me y • You have the r ght to be treated n a fa r and equ tab e manner by the emp oyees of the Ca forn a Department of Tax and Fee Adm n strat on (CDTFA)
• You are respons b e for fo ow ng the regu at ons set forth by the CDTFA As a se er, you are expected to ma nta n the norma books and records of a prudent bus nessperson. You are requ red to ma nta n these books and records for no ess than four years, and make them ava ab e for nspect on by a CDTFA representat ve when requested. You are a so requ red to know and charge the correct sa es or use tax rate, nc ud ng any oca and d str ct taxes. The tax rate app cab e to your sa es or use may not necessar y correspond to the tax rate of your bus ness address d sp ayed on th s perm t. You are a so expected to not fy us f you are buy ng, se ng, add ng a ocat on, or d scont nu ng your bus ness, add ng or dropp ng a partner, off cer, or member, or when you are mov ng any or a of your bus ness ocat ons. If t becomes necessary to surrender th s perm t, you shou d on y do so by ma ng t to a CDTFA off ce, or g v ng t to a CDTFA representat ve.
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Please post this permit at the address for which it was issued and at a location visible to your customers.
Ca forn a Department of Tax and Fee Adm n strat on
Bus ness Tax and Fee D v s on
Exhibit F
Attachment 1
Exhibit G
Attachment
1
Attachment 1
CITY OF EL PASO DE ROBLES
“The Pass of the Oaks”
RFP ADDENDUM NO. 1
Fixed Base Operation
Paso Robles Municipal Airport
RFP ADDENDUM ISSUE DATE: May 12, 2023
RFP DUE DATE: June 29, 2023 at 5:00 PM
NOTE: IT IS NECESSARY TO INCLUDE A SIGNED RFP ADDENDUM WITH YOUR RFP PROPOSAL IN ORDER FOR THE PROPOSAL TO BE DEEMED RESPONSIVE. IN THE
EVENT OF MULTIPLE ADDENDA, ALL ARE REQUIRED TO BE SIGNED AND SUBMITTED.
I acknowledge receipt of this RFP Addendum, which consists of these 3 pages with additional information and clarification. I further acknowledge that the RFP Proposal submitted for this project incorporates the information contained in this RFP Addendum.
Company Name:
Signature:
Title:
Date:
1. Section 2.2 (Description of the Airport/FBO Property and Facilities/Aircraft Parking and Storage) does not include the Terminal Ramp. Why is that the case? What is the City’s expectation of the FBO when it comes to use and management of the Terminal Ramp?
A: The terminal ramp was inadvertently omitted from Section 2.2. It is depicted on page 24 of the document. For the terminal ramp, and other public ramps not under agreement with the FBO it is expected that the FBO help manage day to day parking and general directing of aircraft to parking as needed and in conjunction with Airport staff.
2. Section 2.2 (The Proposal should indicate whether and, if so how, the current subtenants would be accommodated, expanded, or transitioned.) Please provide a list of all current agreements the city has on all of the proposed properties with associated rates and terms, including the seasonal agreement for the Skycrane Helicopter.
Exhibit I-1
Loyd's Aviation President June 27, 2023
Attachment 1
CITY OF EL PASO DE ROBLES
“The Pass of the Oaks”
RFP ADDENDUM NO. 2
FINAL ADDENDUM
Fixed Base Operation
Paso Robles Municipal Airport
RFP ADDENDUM ISSUE DATE: May 25, 2023
RFP DUE DATE: June 29, 2023 at 5:00 PM
NOTE: IT IS NECESSARY TO INCLUDE A SIGNED RFP ADDENDUM WITH YOUR RFP PROPOSAL IN ORDER FOR THE PROPOSAL TO BE DEEMED RESPONSIVE. IN THE
EVENT OF MULTIPLE ADDENDA, ALL ARE REQUIRED TO BE SIGNED AND SUBMITTED.
I acknowledge receipt of this RFP Addendum, which consists of these 3 pages with additional information and clarification. I further acknowledge that the RFP Proposal submitted for this project incorporates the information contained in this RFP Addendum.
Company Name:
Signature:
Title:
Date:
1. Are all the areas shown in blue part of the FBO facili�es to be leased to other successful proposer? (photo 1 at end of document)
a. No, all the areas in the atached photo are not expressly part of the facility to be leased by the successful proposer. See the first 5 items of bold letering under sec�on 2.2 on page 2 for descrip�on of poten�al FBO facili�es to be leased.
2. Does the City currently have any month to month, quarterly, or annual agreements with any user, other than the current FBO, on any of the proposed FBO lease hold areas depicted in the RFP? If so, what rates are these users paying to u�lize space? a. No. Unless otherwise nego�ated, rates are based off the current fee schedule adopted by City Council.
Exhibit I-2
Loyd's Aviation President June 27, 2023
Attachment 1
Attachment 1
January 17, 2024
City of El Paso de Robles
Attention: Mark Scandalis – Airport Manager
4912 Wing Way
Paso Robles, CA 93446
RE: Supplemental Information
Mr. Scandalis,
In response to your letter dated December 27, 2023 requesting additional information related to the RFP for the Fixed Base Operation, please see the following information below. The requests and their associated answers are lettered in accordance with your letter. At the end of the letter you will also find additional information related to maintenance information requested.
A. A revised Development Plan addressing only those airport properties identified to be leased in the RFP documents and no other properties, including specifics on the proposed timing of hangar developments on the development area identified in section 2.2 of the RFP; Consistent with the original RFP, Loyd’s Aviation’s development plan, as defined in section 8 of its proposal, is limited to the areas already identified within the confines of the RFP. No changes are necessary.
Regarding the timing of hangar developments outlined in Loyd’s Aviation’s proposal and depicted in Exhibit B: Loyd’s Aviation’s proposal describes an “on-demand” approach to construction.
Consistent with that, and immediately upon being awarded a lease, Loyd’s Aviation will begin the final design process of the hangar development, including renderings used to market the pre-sale of hangars.
Tenant interviews have shown a strong demand toward the pre-purchase of hangars, and Loyd’s Aviation will support that by offering hangars for sale and beginning construction on pre-sold hangars as soon as possible. Hangars built to lease based on speculation will continue with an “on-demand” approach as described in the proposal.
B. A detailed explanation of how the FBO will operate should the City successfully establish a spaceport at the Airport
Should the spaceport be established at the airport, Loyd’s Aviation will fully support operations there through its FBO services offered. While the specifics of how the operations may work are unknown, healthy and diverse business operations are key to a financially sustaining airport and the FBO operations will be supportive of that wherever possible.
Kern County has a long history with the air and space industry and is not only home to Loyd’s Aviation, but also to one of the longest operating private spaceports in the country (Mojave Air and Spaceport). We are happy to assist the City and Airport staff with introductions to help facilitate the spaceport process.
Additionally, as a member of the Aerospace Advisory Board for Embry-Riddle Aeronautical University, Loyd’s Aviation President, Ryan Crowl, can assist in making connections between EmbryAttachment 1
Riddle and Cal Poly SLO for the purposes of promoting academic advancements in that portion of the industry.
C. A detailed customer service plan identifying the location of customer service operations, the proposed hours of operations, and additional information on the services provided; As stated in the proposal, Loyd’s Aviation’s on-site staff will consist of “one On-Site Supervisor, one Customer Service Representative (CSR) and 4-5 Line Service Technicians (LSTs).” All staff will be hired locally and be dedicated to the Paso Robles Airport as a stand-alone operation. Loyd’s Aviation’s Bakersfield staff will only act in a supporting and supervisory role to the Paso Robles operation.
Every staff member will receive customer service training, regardless of their primary role. While some staff will be designated with that title, we believe all staff have a responsibility to acknowledge, greet, and serve every customer. No one should interact with our facility without receiving a friendly greeting and an offer to serve.
The proposed hours of operation remain unchanged from the proposal at Monday – Friday 0600- 1800, Saturday and Sunday 0700-1800. Additionally, staff will be available after hours via a callout.
D. A detailed proposal on any proposed revenue share fee split and the proposed structure of parking fees, ramp fees, and other FBO fees at the Airport if different than the City Council adopted comprehensive fee schedule; and
It is Loyd’s Aviation’s understanding that the fees identified in the adopted Comprehensive Fee Schedule are designed to fund the City’s ongoing efforts to support and maintain the airport and are not a source of income for the FBO. Therefore, Loyd’s Aviation’s “negotiated split” mentioned in the proposal, has been envisioned as an 85/15 (City/Loyd’s Aviation) split. Loyd’s Aviation’s portion is just to cover staff and processing fees.
Loyd’s Aviation does intend to charge fees to transient customers for other services that it provides.
Those fees may include services such as handling, ground power units, lavatory services, catering etc. and would fall outside of the revenue split described above.
E. An updated Financial Plan to the extent necessary based on the foregoing updated documentation.
The only change to the financial plan would be to include the proposed 85/15 split mentioned above in sections 1.1 and 7.3 under the title of “Parking/Overnight Fees.” All other aspects of the financial plan remain unchanged.
Maintenance Operations:
Since the submission of the proposal, Loyd’s Aviation has had the opportunity to speak with local maintenance personnel. Those conversations have led us to the conclusion that it makes the most sense for everyone involved if Loyd’s Aviation were to start its own shop on the airport with local, existing personnel. The local staff we spoke with are very willing to work with us in the creation of a new shop where they can focus on the work of maintaining aircraft with the full weight of Loyd’s Aviation’s support staff, experience and infrastructure behind them.
The shop would operate out of the existing Executive Air Center hangar and offices and provide general maintenance services such as 100hr and Annual inspections. It is not the intention to provide avionics Attachment 1
services, as that service already exists at the airport in a quality shop. The hours of operation would be Monday through Friday 0800-1700.
Loyd’s Aviation would ensure that the equipment, personnel and manuals are adequate for both piston and turbine service, providing support and training where needed. Loyd’s Aviation’s current maintenance shop is a near 50/50 mix of piston and turbine work, making our experience and equipment an ideal fit for Paso Robles.
The proposed shop would operate under Loyd’s Aircraft Maintenance Inc. (LAM), a wholly owned subsidiary of Loyd’s Aviation, and all staff would be employees of LAM.
Should you need any additional information, please do not hesitate to contact me.
Sincerely,
Ryan Crowl
President
Attachment 1
Attachment 2
RESOLUTION 24-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES
APPROVING A FULL SERVICE FIXED BASED OPERATOR LEASE AGREEMENT WITH LOYDS AVIATION WHEREAS, a fixed based operator (FBO) is a commercial business granted the right by the Airport sponsor to operate on an airport and provide aeronautical services such as fueling, aircraft storage, tie-down and parking, aircraft rental, aircraft maintenance, flight instruction, and other related services; and
WHEREAS, after a lengthy public Request for Proposals process, Loyd’s Aviation was selected by the City for negotiation to become the new FBO operator; and WHEREAS, negotiations with Loyd’s Aviation have concluded and all are prepared to enter into a lease agreement for Fixed Based Operator Service at Paso Robles Municipal Airport; and WHEREAS, the main points of the lease agreement include:
a. 5 year initial term with the opportunity for a 30 year extension upon performance of terminal construction (and contingent on continued performance) and 5 years option to extend at conclusion;
b. Annual rent to be adjusted based on CPI for the previous 12 months and every 5 years to market rent based on the findings of a market rate adjustment study; c. At the end of the lease term (or any extension thereof) and at the City’s option, the ownership of all improvements shall revert (transfer) to the City; and WHEREAS, the City Council finds that this action is not a project under the California Environmental Quality Act pursuant to State CEQA Guidelines, §§ 15060, subd. (c)(2)-(3), 15378 because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EL PASO DE ROBLES DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. All of the above recitals are true and correct and incorporated herein by reference.
Section 2. The City Council hereby approves the lease agreement with Loyd’s Aviation for full service Fixed Based Operator services, subject to any minor, technical, or non-substantive changes as approved by the City Manager and City Attorney and subject to any minor insurance changes approved by the Risk Manager.
Section 3. This Resolution shall take effect on the date it is approved by the City Council.
APPROVED this 17
th day of September, 2024, by the following vote:
AYES:
NOES:
Attachment 2
ABSENT:
ABSTAIN:
John R. Hamon, Jr., Mayor
ATTEST:
Melissa Boyer, City Clerk