HomeMy WebLinkAbout5/17/2000 - STAFF REPORTS (15) DATE: May 17, 2000
TO: City Council
FROM: Assistant City Manager-Special Projects
AIRPORT RENTAL AGREEMENT-WASTEWATER TREATMENT PLANT
RECOMMENDATION:
It is recommended that City Council approve a rental agreement between the Airport
and Wastewater Treatment Plant for 24.8 acres of Airport property.
BACKGROUND:
At the recent budget workshop, staff presented information concerning the use of 18
acres of Airport land for wastewater treatment purposes. A closer look, at a more
recent drawing, has revealed that actually the acreage involved is 24.8 acres. This
acreage was part of the original 1949 grant of property from the federal government
to the City for airport purposes. An Instrument of Release dated October 28, 1994,
and Section 514 of the Federal Aviation Administration Authorization Act of 1994,
released the City from all grant deed restrictions and any requirement for past fair
market value rental for the Airport's property underlying the Wastewater Treatment
Plant.
The Instrument of Release does not require payment of rent for the land use, but it
does not prohibit the City from charging rental for benefit of the Airport.
The attached rental agreement is between the Airport and Wastewater Treatment
Plant and is modeled afterthe agreement between the Police Department and Airport
for land for the Police Department equestrian facility. This document is necessary for
any FAA audit to show how airport land is being used and what the compensation is.
This agreement calls for$321,534 rental based on a land value of$3.71/sq.ft.
Attached is a Resolution for City Council consideration which approves the imposition
of rental on the Wastewater Treatment Plant and authorizes Executive Department
representatives to execute the agreement.
A 16
ALLEN F. SMOOT, AAE JERI RIDDLE
Assistant City Manager-Special Projects Director of Aviation
APPROVED �!`2
ity Manager JAR
ATTACHMENTS:
1. Resolution
2. Agreement
REVIEWED BY DEFT.OF FINANCE
RENTAL AGREEMENT
THIS RENTAL AGREEMENT (this "Agreement") is made and entered into this day of
, 2000 ("Agreement Date"),by and between Palm Springs International Airport("Landlord")
and the Pahn Springs Wastewater Treatment Facility("Tenant").
RECITALS
WHEREAS Landlord and Tenant wish to formalize an Agreement for the use of Landlord's property by
Tenant for a portion of the Palm Springs Wastewater Treatment Facility; and
WHEREAS by Instrument of Release dated October 28, 1994,and per Section 514 of the Federal Aviation
AdministrationAuthorizationAct of 1994,the Airport's property underlying the Wastewater Treatment Plant
was released from all grant deed restrictions and any requirement for past fair market value rental was
waived; and
WHEREAS,the above referenced Instrument of Release does not require fair market value for the continued
use; however, the City may impose such rental for the benefit of the Airport,
NOW THEREFORE the parties hereto agree as follows:
1. DEMISED PREMISES: The "Demised Premises" shall refer to that certain real property
(approximately 24.87 acres) located in the County of Riverside, State of California, as more
particularly depicted on the Plot Plan attached as Exhibit"A".
2. USE OF DEMISED PREMISES:The Demised Premises and the facilities constructed thereon shall
be utilized for governmental wastewater treatment facilities that benefit the Tenant and Landlord.
3. TERM: The term of this Agreement shall commence as of July 1, 2000 and be on a year-to-year
basis with automatic renewal continuing to occur so long as Tenant makes annual rental payments.
4. RENTAL: Tenant shall pay to Landlord prior to,Tune 30,base annual rental of$321,534. (For base
rental calculation, see Exhibit"B".)
Every fifth year anniversary of the date this Agreement was executed,the rental rate shall be adjusted
in proportion to changes in the Consumer Price Index(All Urban Consumers {all items},for the Los
Angeles-Anaheim Riverside Metropolitan Area, 1982-84= 100). Every tenth anniversary, a letter
appraisal shall be acquired and said appraisal shall be basis for additional adjustment to the rental
rate.
5. TERMINATION:Either party may terminate this rental agreement by providing 180 days notice in
writing to the other party.
6. NON-DISCRIMINATION&FAA REQUIRED CLAUSES:
(a) Tenant for himself, his heirs, personal representatives, successors in interest, and assigns,
as apart of the consideration hereof,does hereby covenant and agree"as a covenant running
with the land"that in the event facilities are constructed,maintained or otherwise operated
on the said property described in the lease for a purpose for which a DOT program or
activity is extended or for another purpose involving the provision of similar services or
benefits,the Tenant shall maintain and operate such facilities and services in compliance
with all other requirements imposed pursuant to Title 49,Code of Federal Regulations DOT,
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, and as said Regulations may be amended.
(b) The Tenant for himself,his personal representatives,successors in interest,and assigns,as
a part of the consideration hereof, does hereby covenant and agree"as a covenant running
with the land"that: (1)no person on the grounds of race, color, or national origin shall be
excluded from participation in, denied the benefits of or be otherwise subject to
discrimination in the use of said facilities,(2)that in the construction of any improvements
on,over,or under such land 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 subject to discrimination, (3)that the Tenant 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, and as said Regulations may be
amended.
(c) That in the event of breach of any of the above nondiscrimination covenants,Landlord shall
have the right to terminate the lease,and to reenter and repossess said land and the facilities
thereon and hold the same as if said lease had never been made or issued. This provision
does not become effective until the procedures of 49 CFT Part 21 are followed and
completed including expiration of appeal rights.
(d) Tenant shall furnish its accommodations and/or services on a fair, equal and not unjustly
discriminatory basis to all users thereof and it shall charge fair,reasonable and not unjustly
discriminatory prices for each unit or services,provided that the Tenant may be allowed to
make reasonable and nondiscriminatory discounts, rebates or other similar type of price
reductions to volume purchasers.
(e) Non-compliance with Provision 4 above shall constitute a material breach thereof and in the
event of such non-compliance bythe Landlord shall have the rightto terminatethis lease and
the estate hereby created without liability therefore or at the election of the Landlord or the
United States; either or both said Governments shall have the right to judicially enforce
provisions.
(f) Tenant agrees that it shall insert the above five provisions in any sublease of contract by
which said tenant grants a right or privilege to any person, form or corporation to render
accommodations and/or services to the public on the premises herein leased.
I A W
(g) The Tenant assures that it will undertake an affirmative action program as required by 14
CFR Part 152, Subpart E, to insure that no person shall on the round of race, creed, color,
national origin,or sex be excluded from participating in any employment activities covered
in 14 CFR Part 152, Subpart E. The Tenant assures that no person shall be excluded on
these grounds from participating in or receiving the services or benefits of any program or
activity covered by this Subpart. The tenant assures that it will require that its covered sub-
organizations provide assurance to the Tenant that they similarly will undertake affirmative
action programs and that they will require assurances from their sub-organizations, as
required by 14 CFR Part 152, Subpart E to the same effort.
(h) The Landlord reserves the right to farther develop or improve the landing area of the Airport
as it sees fit, regardless of the desires or view of the Tenant and without interference or
hindrance.
G) The Landlord reserves the right, but shall not be obligated to the Tenant to maintain and
keep in repair the landing area of the airport and all publically-owned facilities of the airport,
together with the right to direct and control all activities of the Tenant in this regard.
(j) The Lease shall be subordinate to the provisions and requirement of any existing or future
agreement between the Landlord and the United States, relative to the development,
operation or maintenance of the airport.
(k) There is hereby reserved to the Landlord,its successors and assigns,for the use and benefit
of the public,a right of flight for the passage of aircraft in the airspace above the surface of
the premises herein(leased,licensed,permitted). This public right of flight shall include the
right to cause in said airspace any noise inherent in the operation of any aircraft used for
navigation of flight through the said airspace or landing at,taking off from or operation on
the Palm Springs International Airport.
(1) Tenant agrees to comply with the notification and review requirements coveredin Part 77
of the Federal Aviation Regulation in the event future constriction of a building is planned
for the leased premises, or in the event of any planned modification or alteration of any
present of future building or structure situated on the leased premises.
(in) The Tenant, by accepting this, expressly agrees for itself,its successors and assigns that it
will not erect nor permit the erection of any structure or object,nor permitthe growth of any
tree on the land leased hereunder above the mean sea level elevation of 530 feet. Landlord
reserves the right to enter upon the land leased, hereunder and to remove the offending
structure or object and cut the offending tree, all of which shall be at the expense of the
Tenant.
(n) The Tenant,by accepting this Lease,agrees for itself,its successors and assigns that it will
no make use of the lease premises in any manner which might interfere with the landing and
taking off of aircraft from Palm Springs International Airport or otherwise constitute a
hazard. hi the event the aforesaid covenant is breached,the owner reserves the right to enter
upon the premises here leased,and cause the abatement of such interference at the expense
of the Tenant.
(o) It is understood and agreed that nothing herein contained shall be construed to grant or
14,A I
authorize the granting of an exclusive right within the meaning of Section 308a of the
Federal Aviation Act of 1958 (49 U.S.C. 1349a).
(p) The lease,and all the provisions hereof, shall be subject to whatever right the United States
Government now has or in the future may have or acquire,affecting the control, operation
regulation and taking over of said airport or the exclusive or non-exclusive use of the airport
by the United States during the time of war or national emergency.
7. MAINTENANCE AND REPAIRS:Tenant shall at all times during the term hereof,and at Tenant's
sole cost and expense,keep,maintain and repair the Demised Premises and other improvements upon
the demised Premises in good and sanitary order, condition and repair.
8. CONSTRUCTION/IMPROVEMENTS: Tenant may carry out capital improvements necessary to
develop the Wastewater Treatment Facility.
IN WITNESS WHEREOF,the parties have duly executed this Rental Agreement together with the
herein referred to Exhibits which are attached hereto,on the day and year first above written in Palm Springs,
California.
PALM SPRINGS INTERNATIONAL AIRPORT PALM SPRINGS WASTEWATER FACILITY
By: By:
Jeri L.Riddle Allen F. Smoot,AAE
Director of Aviation Assistant City Manager-Special Projects
"LANDLORD" "TENANT"
NO Ole'Q9"E 2640.7/' N0%/'52 E
C I E L 0 R OAD
�(D
a �u$tj
2636.75'
659./7' 659.20' 65 9-20'
dAys
rn
OZ
ram. I � Illy a •��, d//
a �o
SANTA
rl
58.46' CRUZ
I
71-
// yl T--=-'-� O -{
(t, A ICI I
LL
�1 gown -1;_ - I_ - 1 I r 1 (L N �� I L1
---__- --_-�� ---+ )n
In
' I I
2631.62' -_- - VELLA RD.
•-�658.08' � 657.73' 657,72' - -
- m\I� I � I � I
. v
EXHIBIT `B'
FAIR MARKET VALUE RENTAL CALCULATION
24.87 acres of Airport property occupied by Wastewater Treatment Facilities.
Parcel Size: 24.87 acres x 43,560 sq.ft. = 1,083,337 sq.ft.
Parcel Value: 1,083,337 sq.ft. x$3.71/sq.ft. _$4,019,180
Base Rental: $4,019,180 (value)x 8% capitalization=$321,534
Property Value Establishment
Comparable Parcels
Mathews @ E. Patin Canyon $5.20/sq.ft.
Vella @ Ramon $3.03/sq.ft.
East Horizon Road(Cathedral City) $2.84/sq.ft.
Avenida Los Ninos @ Aliso (Cathedral City) $4.71.sq.ft.
Farrell Airport Acquisition $3.32/sq.ft.
First City Properties $3.20/sq.ft.
Average Value $3.71/sq.fi.
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING THE IMPOSITION OF RENTAL
CHARGES UPON THE WASTEWATER TREATMENT PLANT
FOR THE USE OF AIRPORT PROPERTY AND
AUTHORIZING DEPARTMENT REPRESENTATIVES TO
EXECUTE THE RENTAL AGREEMENT.
WHEREAS 24.8 acres of Airport property is being utilized by the Wastewater Treatment Plant
for treatment facilities; and
WHEREAS by Instrument of Release dated October 28, 1994, and per Section 514 of the
Federal Aviation Administration Authorization Act of 1994, the Airport's property underlying
the Wastewater Treatment Plant was released from all grant deed restrictions and any
requirement for past fair market value rental was waived; and
WHEREAS the above referenced Instrument of Release does not require fair market value
for the continued use; however,the City may impose such rental forthe benefit of the Airport,
and
WHEREAS the City Council desires to impose rental charges on the Wastewater Treatment
Plant for use of Airport property for the benefit of the Airport,
NOW THEREFORE BE IT RESOLVED as follows:
1. That the imposition of land rental on the Wastewater Treatment Plant by the Palm
Springs International Airport at a base rental of $321,534 for 24.8 acres is hereby
approved.
2. That the Director of Aviation on behalf of the Airport, and the Assistant City Manager-
Special Projects on behalf of the Wastewater Treatment Plant, are hereby authorized
to execute said Airport Rental Agreement to memorialize this transaction.
ADOPTED this day of , 2000.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM