HomeMy WebLinkAboutContracts & Agreements_08-22AIRAIRPORT HANGAR RENTAL AGREEMENT
This airport hangar rental agreement ("Agreement") is made and entered into this 1st day of April,
2022 ("Effective Date"), by and between the City of Redlands, a municipal corporation ("City"), and
William E. Smith ("Tenant") City and Tenant are sometimes individually referred to herein as a
"Party" and, together, as the "Parties "
1 PREMISES. City hereby rents to Tenant, and Tenant hereby rents from City, that certain
hangar designated as Hangar No 28 the "Premises"), located at the Redlands Municipal Airport
("Airport"), and more particularly described in Exhibit "A" attached hereto and incorporated by this
reference This Agreement for rental of the Premises is for the principal purpose of a non-commercial,
primarily aircraft storage, maintenance, repair and any incidental aviation related uses associated
therewith The Tenant's aircraft is identified as a (1949 Cessna 195, registration N195SC) and any
identical aviation related uses associated therewith
2. TERM The term of this Agreement shall be month -to -month commencing on the Effective
Date, and in no event shall exceed two (2) years
3. CONSIDERATION
3 1 Monthly Rental Payments Tenant shall pay to City on or before the 15th day of each
month during the term of this Agreement as monthly rent, without deduction, setoff or demand, the
sum of Seven Hundred and Seventy-nine Dollars and no/100's ($779.00). A late fee shall be levied in
the amount of ten percent (10%) of the amount due for any amount not received by the date such rent
is due The City will increase rent annually, the 1st of January each calendai year, based on percentage
increase in the Consumei Price Index, all urban consumers, Riverside -San Bernardino -Ontario
3 2 Manner of Payment of Rent. Monthly rent for any partial month shall be prorated at
the rate of 1/30th of the monthly rent per day The monthly rent and any applicable late charges payable
by Tenant hereunder shall be paid by Tenant without notice, demand or offset at the office of the
Airport Manager at the Airport, or at such othei place as may from time to time be designated by City
3 3 Taxes and Assessments.
3 3 1 Obligation to Pay. Tenant is responsible for and shall pay all real and personal
property taxes (including any tax levied on a possessory interest, as defined in California
Revenue and Taxation Code Section 107 of successor statute, if applicable), general and special
assessments, and other charges of every description, levied on or assessed against the Premises,
personal property located on the land or improvements, the leasehold estate, or any
subleasehold estate, falling due during the term of this Agreement It shall be conclusively
presumed that any aircraft stored at the Premises pursuant to this Agreement shall be
considered "habitually situated" therein as that term is defined in Revenue and Taxation Code
section 5362 Tenant shall make all such payments directly to the assessing authority, before
delinquency and before any fine, interest or penalty shall become due of be imposed by
operation of law for their nonpayment
2022 Lease William Smith.docx28 1
3.3.2 Proration for Partial Year. Any imposition of taxes referred to in Section 3 3 1
above relating to a fiscal period of a taxing authority, a part of which period is included within
the term of this Agreement and a part of which is included in a period of time before the
Effective Date or after the termination of this Agreement, shall be paid by Tenant as above but
shall be prorated with City
3.3.3 Tenant's Right to Contest. Tenant may contest the legal validity or amount of
any taxes, assessments or charges for which Tenant is responsible under this Agreement, and
may institute such proceedings as Tenant considers necessary If Tenant contests any such tax,
assessment or charge, Tenant may withhold or defer payment, or pay under protest, but shall
protect City and the Premises from any lien by adequate surety bond or other appropriate
security
3.3.4 Proof of Compliance. Upon the request of City, Tenant shall furnish to City
receipts or other appropriate evidence establishing payment of any applicable tax, assessment
or charge Tenant may comply with this requirement by retaining a tax service to notify City
payment of any applicable tax, assessment or charge
4. USE OF PREMISES.
4.1 Use of Hangar. The Premises shall be used and occupied by Tenant principally for the
storage of at least one airworthy aircraft, registered with FAA and or an aircraft under construction or
repair with documented progress toward airworthiness every 90 days submitted to REI airport
manager Other related aviation business, training/instruction, maintenance and or manufacturing uses
are permitted upon REI approval No other commercial activity of any kind whatsoever shall be
conducted by Tenant in or around the Premises Tenants of hangars without airworthy aircraft are
subject to lease cancellation and eviction.
Tenant shall not use the Premises for sleeping or temporary living quarters. Tenant shall keep the
Premises clean and free of debris at all times and shall not do anything on the Premises that will cause
damage to the Premises or unreasonable annoyance to owners or occupants of adjacent properties.
Upon termination of this Agreement, Tenant shall immediately surrender possession of the Premises
and shall remove the Aircraft and all other property therefrom, leaving the Premises in the same
condition as when received, ordinary wear and tear and improvements made by Tenant excepted
Tenant shall be liable for any and all damage to the Premises caused by Tenant's use, including, without
limitation, bent or broken interior walls, damage to unsealed floors due to fuel oil spillage, or doors
damaged due to Tenant's improper or negligent operation.
4.2 Compliance with Laws. In utilizing the Premises during the term of this Agreement,
Tenant shall comply with all applicable statutes, ordinances, rules and regulations established by any
federal, state, county or local government agency
4.3 Waste Disposal. Tenant shall dispose of all sewage and industrial waste in
accordance with all applicable regulations and laws of those governmental agencies having jurisdiction
or authority thereover Tenant shall ensure that all solid waste materials are placed in appropriate
covered containers designed for use with the type of waste involved, which shall remain covered, and
locked, and that such containers remain located on the Premises and not moved from their location for
2022 Lease William Smith.docx28 2
any reason. Tenant shall cooperate with City to provide for the proper separation of waste to maximize
recycling.
4.4 Hazardous Materials.
A. For the purpose of this Section 4 4, the term "Hazardous Materials" includes,
without limitation, any flammable explosives, radioactive materials, hazardous materials,
hazardous wastes, hazardous or toxic substances, or related materials defined in the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended (42 U S C §9601 et seq ), the Hazardous Materials Transportation Act, as amended
(49 U S C § 180 I et seq ), the Resource Conservation and Recovery Act of 1976, as amended
(42 U S C §9601 et seq ), Section 25117 of the California Health & Safety Code, Section
25316 of the California Health & Safety Code, and in the regulations adopted and publications
promulgated pursuant to them, or any other federal, state or local environmental laws,
ordinances, rules or regulations concerning the environment, industrial hygiene or public health
or safety now in effect or enacted after the Effective Date
B Any Hazardous Materials brought upon, kept or used in or about the Premises
or the Airport by Tenant, its agents, employees, contractors or invitees, shall be necessary or
useful to Tenant's business and shall be used, kept and stored in a manner that complies with
all laws, statutes, ordinances, rules, regulations, orders, requirements, and policies of any and
all governmental agencies and authorities applicable to any such Hazardous Materials
("Hazardous Materials Laws")
C If Tenant breaches the obligations stated in subparagraph (b) of this Section
4 4, or if the presence of Hazardous Materials on the Premises results in contamination of the
Premises or the Airport, or if Hazardous Materials are otherwise discharged or released from
the Premises, then Tenant shall indemnify, defend and hold City harmless from and against
any and all claims, judgments, damages, penalties, fines, costs, liabilities and losses (including,
without limitation, diminution in value of the Airport, damages for the loss or restriction on
use of rentable or usable space or of any amenity of the Airport, damages arising from any
adverse impact on marketing of space in the Airport, and sums paid in settlement of claims,
attorneys' fees, consultant fees and expert fees) which arise during or after the term of this
Agreement as a result of such breach, contamination, discharge or release This indemnification
of City by Tenant includes, without limitation, costs incurred in connection with any
investigation of site conditions or any cleanup, remedial, removal or restoration work required
by any federal, state or local governmental agency or political subdivision because of
Hazardous Materials present in, on or under the Premises. Without limiting the foregoing, if
the presence of any Hazardous Materials on the Premises results in any contamination of the
Airport, or otherwise results in the release or discharge on, under or from the Premises of
Hazardous Materials, Tenant shall promptly take all actions at its sole expense as are necessary
to return the Airport to the condition existing prior to the introduction of any such Hazardous
Materials to the Airport or to otherwise remove and/or abate the release or discharged
Hazardous Materials, provided that City's approval of such actions shall first be obtained,
which approval shall not be unreasonably withheld so long as such actions would not
potentially have any material adverse long-term or short-term effect on the Airport, will not
unreasonably interfere with the use and enjoyment of other portions of the Atrport, and will be
performed in accordance with all Hazardous Materials Laws Upon the termination of this
2022 Lease William Smith.docx28 3
Agreement, Tenant shall surrender the Premises to City free of any and all Hazardous Materials
and in compliance with all Hazardous Materials Laws This indemnification shall survive the
termination or expiration of this Agreement.
4.5 Billboards and Signs. Tenant shall not construct, install, maintain, nor allow upon the
Premises any billboards, signs, banners or like displays which may be placed in or upon any building
or structure in such manner as to be visible from the outside thereof, except with the prior written
consent of City
4.6 Waste. Nuisance. Tenant shall not use the Premises in any manner that will constitute
waste, nuisance or unreasonable annoyance to owners or occupants of adjacent properties. Tenant shall
not use the Premises for sleeping, washing clothes, cooking or the preparation of food, manufacture or
mixing of anything that might emit any odor or objectionable noises or lights onto adjacent properties.
Tenant shall not do anything on the Premises that will cause damage to the Premises.
4.7 Access. Locks. Keys. Combinations. Tenant shall comply with all reasonable
regulations and directives of City regarding access to the Premises City may enter the Premises
without permission of, or supervision by, Tenant for inspection or emergency purposes (i.e lire,
burglary, flooding, criminal activity, or other catastrophe) determined reasonably necessary by City or
required by law, including but not limited to five-year fire sprinkler inspections, maintenance work
that requires entrance by City, or any other reason to lawfully enter the Premises. City shall
subsequently notify Tenant of any entry for emergency purposes and the reason for the entry if the
Tenant was unable to supervise such entry City reserves the right to limit Tenant's access to the Airport
or the Premises, or both, due to any terrorist threat, civil unrest, any unsafe condition, or for the safety
and protection of persons and property City shall not be responsible for Tenant's inability to access
the Airport or the Premises due to events or acts beyond the control of City Tenant shall utilize City
furnished set of locks for securing the Premises if available If unavailable, Tenant shall furnish City's
Airport Manager with a duplicate set of keys or lock combination for the locks securing the Premises.
City shall secure keys and lock combinations from access or exposure by unauthorized individuals and
will notify Tenant immediately in the event of any compromise of keys and lock combinations If
utilizing City provided locks, the Tenant shall notify the City immediately in the event of any
compromise of keys and lock combinations The City shall only be liable to Tenant for damage
resulting from gross negligence in accessing Premises.
4.8 Requests from Department. Tenant shall cooperate with any reasonable request from
the City's Facilities & Community Services Department Director, or their designee, regarding use or
operations at the Airport.
5. MAINTENANCE, ALTERATIONS.
5.1 As -Is Condition. Tenant hereby acknowledges that neither City nor anyone acting
for or on behalf of City, has made any representation, warranty or promise to Tenant concerning the
physical aspects or condition of the Premises or improvements, the feasibility, desirability or
convertibility of the Premises into any particular use, the conditions of the soil, ground water, or surface
waters or the presence or absence of any toxic waste or hazardous substances or material, and that by
entering into this Agreement has not relied on any representation, statement or warranty of City, or
anyone acting for or on behalf of City, and that all matters concerning the Premises shall be
independently verified by Tenant, and that Tenant shall rent the Premises on Tenant's own examination
thereof, AND THAT TENANT IS LEASING THE PREMISES IN "AS IS" PHYSICAL CONDITION
2022 Lease William Smith.docx28 4
AND "AS IS" STATE OF REPAIR. Tenant hereby waives and City hereby disclaims all warranties of
any or kind of description, including, without limitation, those of fitness for particular purpose,
tenantability, habitability and use Tenant hereby expressly waives any and all claims for damages or
for rescission or cancellation of the Agreement because of any representations made by City or by any
agent of City Tenant acknowledges that it has had sufficient time to conduct all inspections, reviews
and studies of the Premises that Tenant may deem necessary Tenant hereby expressly assumes the risk
that adverse physical conditions and the full extent thereof, may not be revealed by Tenant's
inspections, reviews and studies of the Premises.
5.2 Maintenance of Premises. Throughout the term of this Agreement, Tenant shall, at
Tenant's sole cost and expense, maintain the Premises, clean, broom swept, fluid spills immediately
contained, pick up and properly disposed, waste receptacles clean inside and out with liners, oils,
paints, gasoline, lubricant containers, batteries properly stored off the floors, on shelves or in cabinets
with approved containment and clean up products readily available, however, City shall maintain the
structural components of the hangar, including doors and door mechanisms. Tenant hereby waives the
provisions of California Civil Code Sections 1941 and 1942 with respect to City's obligations for
tenantability of the Premises and Tenant's right to make repairs.
5.3 Alterations. Tenant shall not make any alterations to the Premises without City's prior
written consent. Any alterations made shall remain on and be surrendered at the expiration or sooner
termination of the Agreement, provided, however, that City may, at City's sole election, demand the
removal from the Premises of all fixtures and improvements or of certain fixtures or improvements or
both as specified in the notice provided for below A demand to take effect at the normal expiration of
the term shall be effected by notice given at least thirty (30) days before the expiration date A demand
to take effect on any other termination of the Agreement shall be effected by notice given in or
concurrently with notice of such termination or within sixty (60) days after such termination. Tenant
shall comply with the notice before the expiration date for normal termination, and within thirty (30)
days after the notice for other terminations
5.4 Utilities. Except for electrical services which shall be provided by City, Tenant shall
be responsible for the payment of all costs for utility services to the Premises City shall not be liable
for the failure to provide electrical services if it is prohibited from doing so by events or actions beyond
its control
6. PROHIBITION AGAINST ASSIGNMENT AND SUBLETING. Tenant shall not assign
or transfer, whether voluntarily, involuntarily or by operation of law, its interest in this Agreement or
any part hereof. No such assignment or transfer shall be valid or binding. An attempted assignment or
transfer shall be grounds for City's termination of this Agreement. As used in this Section 6, the term
"assignment" shall include a "more than 25% change in ownership of Tenant." A "more than 25%
change in ownership of Tenant" shall mean, if Tenant is a corporation, the transfer of more than 25%
of the voting stock of Tenant, or if Tenant is a general partnership, the transfer of the right to share in
more than 25% of the profits of such partnership, or, if Tenant is a limited partnership a transfer of
more than 25% of the voting rights of the general partner thereof to individuals or entities which were
not theretofore general partners of Tenant. In addition, the parking of aircraft not owned or under
exclusively lease by Tenant in the Premises shall constitute a sublease for purpose of this Article
2022 Lease William Smith.docx28 5
7. INDEMNITY.
7.1 Indemnity. Tenant shall indemnify, hold harmless and defend City, its elected
officials, officers and employees, from and against any and all actions, claims, damages, disabilities or
expenses including, without limitation, attorneys' fees (including fees for use of in-house counsel by a
Party), witness costs and court costs that may be asserted by any person or entity, including Tenant,
arising out of or in connection with any of the following circumstances
7 1 1 Use of Premises Use of the Premises or Airport in any manner by Tenant, its
agents, employees, invitees, subtenants, licenses and contractors, and the agents, employees,
patrons, contractors and invitees of Tenants and subtenants, including any use of the Premises
or the Airport not allowed under this Agreement.
7.1.2 Breach by Tenant. Any breach by Tenant of the terms, covenants or conditions
herein contained
7.1.3 Other Activities. Any other activities of Tenant, its agents, employees and
subtenants whether or not there is concurrent negligence on the part of City, but excluding
liability due to the sole active negligence or sole willful misconduct of City This
indemnification obligation is not limited in any way by any limitation on the amount or type
of damages or compensation payable by or for Tenant or its agents under workers'
compensation acts, disability benefit acts or other employee benefit acts.
8. TERMINATION AND EXPIRATION.
8.1 Termination for Tenant's Default. If Tenant fails to pay rent or any other sums to be
paid by Tenant hereunder, Tenant shall have thirty (30) days after written notice is given Tenant to
cure the default. If any default by Tenant shall continue uncured following notice of default as required
by this Agreement, City shall have the right to immediately terminate this Agreement in addition to all
other rights and remedies provided by law or equity to which City may resort cumulatively or in the
alternative
8.2 Tenant's Duty to Surrender. At the expiration or earlier termination of the term of
The Agreement, Tenant shall surrender to City in as good condition and repair as of the Effective Date,
the possession of the Premises. If Tenant fails to surrender the Premises at the expiration or sooner
termination of this Agreement, Tenant shall defend and indemnify City from all liability and expense
resulting from the delay or failure to surrender, including, without limitation, claims made by any
succeeding tenant or Tenant or resulting from Tenant's failure to surrender
8.3 Holding Over. If Tenant shall continue to occupy or possess the Premises after the
termination of this Agreement without the consent of City, then unless City and Tenant have otherwise
agreed in writing, Tenant shall be a tenant on a month -to -month basis. All the terms, provision and
conditions of this Agreement shall apply to this month -to -month tenancy except those terms, provisions
and conditions pertaining to the term, and except that the monthly rent shall be immediately adjusted
upward upon the expiration or termination of this Agreement to equal three hundred percent (300%)
of the monthly rent for the Premises in effect under this Agreement during the month which includes
the day immediately prior to the date of the expiration or termination of this Agreement. This month -
to -month tenancy may be terminated by City or Tenant upon thirty (30) days' prior notice to the non -
terminating Party In the event Tenant fails to surrender the Premises upon such termination or
2022 Lease William Smith.docx28
expiration, Tenant shall defend, indemnify and hold City harmless against all loss, liability, cost of
expense resulting from or arising out of Tenant's failure to surrender the Premises, including, without
limitation, any amounts required to be paid to any lessee or prospective lessee who was to have
occupied the Premises after said termination or expiration and any related attorneys' fees and brokerage
commissions Notwithstanding the foregoing, no termination of this Agreement shall release Tenant
from any liability or obligation hereunder, whether of indemnity of otherwise, resulting from any acts,
omissions or events happening prior to the date of termination, or date of surrender if it be later
9 NOTICES Any notice required or permitted to be given under this Agreement shall be in
writing Delivery of such written notice shall be conclusively taken and sufficiently given after deposit
in the United States Mail, addressed as follows
City
City of Redlands
City Clerk's Office
35 Cajon Street, Suite 222 (Physical Address)
P 0 Box 3005 (Mailing Address)
909-798-7531
jdonaldson@cityofredlands org
Tenant
William E Smith
3792 Piedmont Dr
Highland, CA 92346
(909) 862-6013
Wsmithn195sc@sbsglobal net
Any Party may at any time change its address foi notice by giving written notice of such change to the
other Party in the manner provided in this paragraph
10 INSURANCE. Upon the Effective Date of this Agreement, Tenant shall provide City with
a Certificate of Insurance that evidences $1 Million Dollars Combined Single Limit coverage and
recognizes the City as an Additional Insured on the policy, specific to the aircraft stored within the
Premises In the event Tenant replaces such aircraft with a replacement aircraft during the term of this
Agreement, Tenant shall provide City with a revised Certificate of Insurance for such replacement
aircraft within ten (10) days of the same If any endorsements or policy forms are cited on the
Certificate of Insurance, a copy of those cited documents must be included as part of the submission
A new Certificate of Insurance shall be issued to the City upon either renewal or replacement of the
coverage by either the Tenant or their Broker acting as their Agent
The City maintains the right to modify these insurance requirements as approved by City Council
throughout the duration of this agreement, by providing Tenant notice within thirty (30) days of such
change, or upon renewal of the terms of the lease
11 SECURITY REQUIREMENTS Lessee shall take any and all measures to ensure security
on the Lease Premises in compliance with FAA regulations, Transportation Security Administration
regulations, and Airport Rules and Regulations, if any
12 MISCELLANEOUS PROVISIONS
12 1 Joint and Several Obligations If Tenant consists of more than one person. the
obligation of all such persons is joint and several
2022 Lease William Smith.docx28 7
12.2 Captions. The captions of this Agreement are for convenience and case of reference
only and do not define, limit, augment or describe the scope, content or intent of this Agreement.
12.3 Successors. Subject to the provisions of this Agreement on assignment and
subletting, each and all of the covenants and conditions of this Agreement shall be binding on and shall
inure to the benefit of the heirs, successors, executors, administrators, assigns and personal
representatives of the respective Parties.
12.4 Broker's Commissions. Expenses. Tenant and City mutually covenant that no
brokers have been or will be used with respect to this Agreement. In the event any broker or finder
perfects a claim for a commission or finder's fee based upon any such contract, dealings or
communications, the Party through whom the broker or finder makes a successful claim shall be
responsible for said commission or fee and all costs and any expenses (including reasonable attorneys'
fees) incurred by the other Party in defending against the same
12.5 Applicable Law and Forum. This Agreement shall be construed and interpreted
according to California law and any action to enforce the terms of this Agreement or for the breach
thereof shall be brought and tried in the County of San Bernardino
12.6 Covenants and Conditions. All provisions of this Agreement whether covenants or
conditions, on the part of Tenant shall be deemed to be both covenants and conditions and such
covenants shall survive termination.
12.7 Time of Essence. Time is and shall be of the essence of this Agreement and of each
and every provision contained in this Agreement.
12.8 No Discrimination. Tenant shall comply with all applicable federal, state and local
laws, rules and regulations relating to non-discrimination in employment and services because of race,
color, ancestry, national origin, religion, sex, marital status, age, medical condition and handicap
12.9 No Third Party Beneficiaries. Nothing contained in this Agreement shall be
construed to create and the parties do not intend to create any rights in third parties.
12.10 Construction of Lease. Severability. To the extent allowed by law, the terms,
covenants, conditions, provisions and Leases in this Agreement shall be construed and given effect in
a manner that avoids any violation of statute, regulation or law City and Tenant covenant and agree
that in the event any term, covenant, condition, provision or Lease in this Agreement is held to be
invalid or void by court of competent jurisdiction, the invalidity of any such term, covenant condition,
provision or Lease shall in no way affect any other term covenant, condition provision or Lease in this
Agreement.
12.11 Relationship. The Parties intend by this Agreement to establish the relationship of
City and Tenant only, and do not intend to create a partnership, joint venture, joint enterprise, or any
business relationship other than that of City and Tenant.
12.12 Force Majeure. Neither the City nor Tenant shall be deemed in violation of this
Agreement if it is prevented from performing any of the obligations hereunder by reason of embargoes,
shortages of material, acts of God, acts of the public enemy, acts of superior governmental authority,
weather conditions, floods, riots, rebellions, sabotage, or any other circumstances for which it is not
2022 Lease William Smith.doex28 8
responsible or which are not within its control, and the time foi performance automatically shall be
extended by the period the party is prevented from performing its obligations hereunder During time
of wai or national emergency, Lessor shall have the right to lease the landing area of any part thereof
to the United States Government for military use, and if such lease is executed, the provisions of this
Agreement insofar as they are inconsistent with the provisions of the lease to the United States
Government, shall be suspended
IN WITNESS WHEREOF, the parties to this Agreement have duly executed this Agreement on the
date set forth above
CITY OF REDLANDS
TENANT
Chris Boatman, Assistant City Manager William E Smith
ATTEST
e Donaldson, City Clerk
2022 Lease William Smith.docx28 9
2022 Lease William Smith.docx28
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