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Board of Supervisors August 26, 1986 Stockton Metropolitan Airport Lease Agreement Page 2 with Pete Smith Based upon the recommendations received from the consulting engineer hired by the County of San Joaquin to evaluate the various compliance requirements for the California Underground Storage Tank Permit process and the subsequent tank testing and monitoring requirements, the consulting engineer and the Airport staff have concluded that it would not be in the best interest of the County and/or the Airport to continue leasing underground fuel storage tank facilities and to permanently remove any tanks not being used. The current Airport Lease Agreement with Mr. Pete Smith, Resolution 80-1091 (Adopted 6-24-80 ) expired on December 31, 1980 , and is now being exercised under the provision of Part II, Article 25 ( Standard Conditions to Agreements at Stockton Metropolitan Airport ) which provides for the continuation of the lease on a month-to-month basis. In two recent letters, Mr. Smith was given the option of either purchasing the existing facility equipment, or installing new faci- lities at his own expense. In either case, Mr. Smith would be responsible for implementing the testing, monitoring and record- keeping requirements in compliance with all applicable federal , state and local laws and regulations. On August 21, 1986, Mr. Smith notified the Department of Aviation, in writing, of his desire to purchase the existing equipment. Mr. Smith has since agreed to pay for the initial tank testing and assume all responsibility and requirements to meet Health and Safety Code Standards pertaining to the California Underground Storage Tank Regulations, except that the proposed sale will be null and void should the initial precision tank test fail to comply with all federal , state and local laws and regulations. In that case, the Department of Aviation will remove this tank as required by the California Underground Storage Tank Regulations. In addition, Mr. Smith has requested that his current Airport Lease Agreement be terminated and a new Airport Ground Lease Agreement be prepared to incorporate all terms and conditions satisfactory to the Department of Aviation and the County of San Joaquin. As a result of a 1976 Federal Court divestiture order, Phillips Petroleum Company was forced to dispose of all its California opera- tions. Consequently, the Department of Aviation purchased two 12, 000 gallon fuel tanks and associated equipment for a salvage value of $1, 995. 95, effective November 21, 1978 (per Board Order 78-2188 ) . In an effort to limit the financial liability inherent in the opera- tion of underground fuel storage tanks, the Department of Aviation has offered for sale one 12, 000 gallon fuel tank with existing plumbing and pumping equipment to Mr. Pete Smith for a total cost of $222. 63, which is equal to the cost of registration, plus the