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HomeMy WebLinkAboutRESO 9452RESOLUTION NO. 9452 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALO ALTO APPROVING THE TERMINATION ASSIGNMENT AND ASSUMPTION AGREEMENT AND EXHIBITS, FEDERAL OBLIGATIONS ASSIGNMENT AND ASSUMPTION AGREEMENT AND EXHIBITS, FAA SUPPLEMENTAL LEASE AGREEMENT, AND STATE LANDS COMMISSION LEASE NO. PRC 9143.9, WHICH FACILITATE THE TRANSFER OF SPONSORSHIP, OPERATION AND MANAGEMENT OF THE PALO ALTO AIRPORT TO THE CITY A. In 1967, the City of Palo Alto (the "City") entered into a ground lease of land (the "1967 Lease"L on which the Palo Alto Airport ("PAO") is located, with the County of Santa Clara (the "County"). The City and the County intend to terminate the 1967 Lease before its fifty-year term expires in July 2017 by executing the Termination Assignment and Assumption Agreement and exhibits (the "Transfer Agreement"), attached at Exhibit A. Under the Transfer Agreement, the City will accept the County's assignment of all rights and obligations arising under several contracts, lease, licenses, permits and other documents, attached as exhibits to the Transfer Agreement, entered into by the County as tenant under the 1967 Lease. B. In 1971, the County entered into a lease ("Lease No. PRC 4598.9") with the State Lands Commission ("SLC") for the property claimed by the SLC, on which PAO is located. The City anticipates that the SLC and the County will cancel Lease No. PRC 4598.9 once the Transfer Agreement has been approved by the City and the County; the SLC and the City thereafter will enter into a new lease of those portions of the PAO premises claimed by the SLC, State Lands Commission Lease PRC No. 9143.9 ("Lease PRC No. 9143.9")L attached at Exhibit B, while they collaborate to conduct a land survey to ascertain which of the parties holds fee title to all or any part of the property on which PAO is located. C. Since 1971, as the PAO sponsor under the 1967 Lease and Lease No. PRC 4598.9, the County has executed several grant funding agreements with the Federal Aviation Administration ("FAA") for the funding of airport capital improvement projects. The grant funding agreements contain grant assurances, each of which has a term of twenty (20) years. The City will accept the County's assignment ofthe County's remaining right and obligations under these grant funding agreements. The City and the County will enter into the Federal Obligations Assignment and Assumption Agreement and exhibits, attached at Exhibit C, to facilitate the assignment of the County's rights and obligations to the City. D. The County and the FAA entered into a lease and lease extensions relating to the premises, on which the PAO air traffic control tower ("ATCT") is located. The City and the FAA will enter into the FAA Supplemental Lease Agreement, attached 140805 sdl 00710440 Page 1 at Exhibit D, to permit the FAA and County lease to be assigned to the City, until the City and the FAA can enter into a long-term lease for the ATCT facility at a later time.· E. The City acknowledges that the Transfer Agreement and the Lease PRC No. 9143.9 may be subject to current and future FAA requirements, including the requirement that, to the extent the provisions of either or both contracts are in conflict with the FAA grant assurances, the City's obligations set forth in the FAA grant assurances shall prevail. The City also acknowledges that the FAA is currently reviewing the Transfer Agreement, the Federal Obligation Assignment and Assumption Agreement, and the Lease PRC No. 9143.9, and the FAA may require the City to ensure appropriate amendments are made to those contracts to comply with federal law. NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE, as follows: SECTION 1. The Council of the City of Palo Alto hereby approves, subject to the FAA's final review and approval and subject to any amendments thereto requested by the FAA to comply with federal law, and authorizes the Mayor to execute the Transfer Agreement, and the Federal Obligations Assignment and Assumption Agreement. The Council hereby approves, and authorizes the City Manager to execute, the Lease PRC No. 9143.9 in final form between the City and the State Lands Commission and the FAA Supplemental Lease Agreement between the City and the FAA. The Council also authorizes the City Manager or his designee to accept and record the Quitclaim Deed to be executed by the County of Santa Clara in favor of the City and the four contracts, which are the subject of this resolution, as well as any other contracts, leases, and other similar documents that the City desires to be recorded, and take any and all other necessary actions to facilitate the transfer of the sponsorship, operation and management of the Palo Alto Airport to the City. II II II 140805sdl00710440 Page2 SECTION 2. The Council finds that the adoption of this resolution does not constitute a 'project' under Section 21065 of the California Public Resources Code and Sections 15378(b)(4) and(b)(S) of the California Environmental Quality Act '(CEQA) and the CEQA Guidelines, and therefore, no environmental assessment is required. INTRODUCED AND PASSED: August 11, 2014 AYES: BERMAN, BURT, HOLMAN, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD NOES: ABSENT: ABSTENTIONS: ATIEST: ~{kw/ ryCierk ·. APPROVED AS TO FORM: Mayor ~ ---···-·-... APPROVED: ~ Senio~' Exhibit A-Termination Assignment and Assumption Agreement and exhibits Exhibit B-State Lands Commission Lease No. PRC 9143.9 Exhibit C-Federal Obligations Assignment and Assumption Agreement and exhibits Exhibit D -FAA Supplemental Lease Agreement 140805sdl00710440 Page 3