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Home My WebLink About1G OCRCITY COUNCIL STAFF REPORT DATE: November 12, 2020 CONSENT AGENDA SUBJECT: SECOND AMENDMENT TO THE AIRPORT USE AND LEASE AGREEMENT FOR COMMERCIAL AIRLINE TENANTS AT PALM SPRINGS INTERNATIONAL AIRPORT FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY This action considers a second extension of the current Airport Use and Lease Agreement (AULA) for Palm Springs International Airport (PSP) due to suspended negotiations caused by the impact of COVID-19 pandemic to the travel industry. RECOMMENDATION: 1. Approve an eighteen-months' extension of the current Airport Use and Lease Agreement (AULA) commencing January 1,'2021, through June 30, 2022. 2. Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: The current Airport Use and Lease Agreement, used by both signatory and non- signatory airlines at Palm Springs International Airport, has been in place since July 1, 2014. It was originally scheduled to expire on June 30, 2019 and was extended to December 31, 2020 by staff recommendation formulated from an analysis by professional consultation firm of Ricondo & Associates Inc., to coincide with the anticipated completion of the Ticket Wing Modernization project. The Airport and airlines were systematically progressing through the negotiations of a new Airport Use and Lease Agreement when the COVID-19 pandemic arrived in the United States and impacted the aviation industry in the first quarter of 2020. As a result, the Airport and airlines agreed to suspend the negotiations due to the uncertainties associated with the COVID-19 pandemic on the aviation industry. Negotiations have not yet resumed and are not expected to resume before the current AULA term expires on December 31, 2020. 2City Council Staff Report November 12, 2020 -Page 2 2nd Amendment to Airport Use And Lease Agreement Both the Airport and Airlines fully support an additional eighteen-months' extension starting January 1, 2021 with the intention of resuming discussions and negotiations to develop a new AULA by June 30, 2022. At its meeting on October 21, 2020, the Board of Airport Commissioners approved recommending an eighteen-months' extension commencing on January 1, 2021 through June 30, 2022. Executing this term extension allows the airlines and airport to gain a better understanding of the longer-term impacts to the travel industry due to the COVID-19 pandemic and for the Ticketing Wing Renovation Project to be completed. Both issues are anticipated to factor heavily in developing a new AULA. FISCAL IMPACT: With this lease extension, the terms between the airlines and the airport remain identical and will continue to adequately provide revenues necessary to fund operating expenditures, local capital improvements, and the required federal grant local matching share as identified in the airport enterprise fund budget. <: ---~=..;2_~~==::::::::,:....:;;;7a:=:=...c.-:::------.-.., ....... _ David H. Ready, Esq., Ph City Manager Attachments: Ulises E.Agui Interim Executive Director, Airport 1. Amendment #2 Airport Use and Lease Agreement 3ATTACHMENT 1 4SECOND AMENDMENT TO AIRPORT USE AND LEASE AGREEMENT THIS SECOND AMENDMENT TO THE PALM SPRINGS INTERNATIONAL AIRPORT USE AND LEASE AGREEMENT ("Amendment"), is made and entered into as of the 1st day of January 2020, by and between the CITY OF PALM SPRINGS, a charter city and municipal corporation organized and existing under the laws of the State of California ("City") and ____________ _. a corporation organized and existing under the laws of the State of ______ ("Airline"). RECITALS 1. Whereas City and Airline are parties to that certain Airport Use and Lease Agreement, dated July 1, 2014 (the "Agreement"), pursuant to which City granted to Airline various rights related to the use of the Palm Springs International Airport for the operation of Airline's air transportation business. 2. Whereas the First Amendment extended the Agreement term from July 1, 2019 through December 31, 2020. 3. Whereas, the Airline and the City mutually desire to extend the term and amend certain other provisions of the Agreement. NOW, THEREFORE, in consideration of the mutual covenants and promises in this Amendment, the parties hereto covenant, agree and bind themselves as follows: 1. Section 2.01 Term of Agreement The term of the Agreement, shall be extended from and including January 1, 2021 until June 30th 2022. 2. Section 22.01 Nondiscrimination and FAA Required Clauses The second paragraph of Section 22.01 of the Agreement is hereby deleted in its entirety and replaced with the following: "Airline, for itself, personal representatives, successors in interest, and assigns, as part of the consideration hereof, does hereby covenant and agree as a covenant running with the Premises that: (1) no person, because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin (i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a "prohibited basis") shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; (2) Airline shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis; (3) as a condition precedent to City's lawful capacity to enter this Agreement, and in executing this Agreement, Airline certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Airline activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, 55575.38160\33428344.1 5including apprenticeship; and further, that Airline is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting; (4) in the construction of any improvements on, over, or under such Premises and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; and (5) Airline shall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, as said Regulations may be amended." 3. Applicability. This Amendment is attached to and made a part of the Agreement. In the event of any contradiction or inconsistency between the terms and provisions of this Amendment and the terms and provisions of the Agreement to which it is attached, the terms and provisions of this Amendment shall control and be interpreted in such a manner as to override any provision of the Agreement which would prevent the spirit and letter of the terms and provisions of this Amendment from being given full force and effect. All defined terms not specifically defined in this Amendment shall be given the same meaning as the defined terms in the Agreement. All other terms and conditions contained in the Agreement shall remain unchanged. 4. Joint Authorship. This Amendment has been entered into as an act of free will, without duress, and no presumption of authorship shall attach to same, and any ambiguity in the terms and conditions of this Amendment shall not be attributed to one party over the other. 2 55575.38160\33428344.1 6IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above. APPROVED AS TO FORM: By: _________ _ Jeffrey S. Ballinger City Attorney "CITY" City of Palm Springs By: ___________ _ David H. Ready, Esq. Ph.D. City Manager ATTEST: By:-----------Anthony Mejia City Clerk AIRLINE: Check one: _Corporation _Partnership Corporations require two notarized signatures: One from each of the following: A. Chairman of Board, President, or any Vice President: AND B. Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer. By: ____________ _ By: _____________ _ Signature (notarized) Signature (notarized) Name: ____________ _ Name: _____________ _ Title: ____________ _ Title: _____________ _ 3 55575.38160\33428344. l 7CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CML CODE§ 1189 A namy pubic or o2ta affica' camp18Ci119 d1ia c:ertiicsr8 Wli5ae ad)' 1he idsnlily of the nhdml MIO a9J8d the document 1D which 1hia cartilicatB a a1IDl:had. ond not tlle tMhfufn8aa. ~ a validity of d13l docunm1l. State of Cafifomia County of __________ _ On _________ b&fontme. __________________ _ Osle Here lnsett Name snd Td:le of the Oflicsr peraonally appeared------------------------who proved to me on the b3aia of amiafacmry evidence to be the paraon(a) whose nama(a) is/are subacnbad to the within inslrument and acknowledged to me that hefahallh9y executed the same In hialherJlheir authorized capacityfrea). and th3t by hialhar/their aigna.1ura(a) on the imdrumant the peraon(B). or the entity upon behalf of which the pana,(s) acted. axecutad 1he instrumant.. Plaoe Notary Sesl Above I certify under PENAL 1Y OF PERJURY under 1he laws of the state of Cafifomia that the fcngoing paragraph ia true and corract.. WITNESS my hand and official aeal. Sgnshn ___________ _ Signstut9 of Nolsry PubflC --------------OP110NAL.--------------Though thia secflon la optionsl. completing thia information can deter affemlion of the document or ~ reattachment of this fotm to sn unintended document. Description of Attached Document Tdle or Type of Document ___________ Document Dale: ______ _ Number af Pagea: ___ Signar(B) Other Than Named Above: __________ _ Capacity(iea) Claimed by Signer(a) Signar"a Name: _________ _ Signer"aNarne: __________ _ D Corporate Officer -TiUB(s): ____ _ D CorporafB Officer -Ti11e(a): ____ _ • Partner -• Umitad • Oenaral • Partna' -• Limited • 0eneml • lncfmcbl1 • Attorney in Fact 0 Individual O Attorney in Fact •Trustee O0LDJdsnorCcnaervator 0 Truatae O 0usrdisn or Ccnaervator •Other: ____________ _ •Other: ___________ _ Signer la Repreaenting: _______ _ Signer la Repreaeming: -------02014 Na6anal Notary Aaaocistion • www.NatianalNomry.org • 1-«IO-US NOTARY (1-800-876-8827} Ham 15907 4 55575.38160\33428344. l