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HomeMy WebLinkAbout7/5/2001 - STAFF REPORTS (8) ID DATE: July 5, 2001 TO: City Council FROM: Interim Director of Aviation Skywest Airport Lease Agreement, Amendment#1 RECOMMENDATION: It is recommended that the City Council approve Amendment#1 to Agreement#3319 with Skywest Airlines to add Exclusive Use Space and outbound baggage space. SUMMARY: The recent announcement of service termination by United Airlines means that Skywest/United Express will need additional ticket counters, office space and outbound baggage to operate its United Express schedule. BACKGROUND: In May of 2001, United Airliners announced the cancellation of the Airline Use and Lease Agreement. However, Skywest/United Express will continue operations of the express flights and require space to perform su operations.ff Richard Strickland Alle'K F. Smoot Deputy Director of Aviation Interim Director of Aviation APPROVED: � City Manager Attachment: 1. Amendment#1 2. Minute Order AMENDMENT NO. 1 TO STANDARD FORM 93-100A AIRPORT USE AND LEASE AGREEMENT NO. 3319 This AMENDMENT NO, 1 TO STANDARD FORM 93-100A AIRPORT USE AND LEASE AGREEMENT NO. 3319 ("Amendment") is made and entered into as of the day of July, 2001, between the CITY OF PALM SPRINGS, a Califonua municipal corporation ("City"), and SKYWEST AVIATION, INC., a corporation organized and existing under the laws of Utah("Airline") with reference to the following facts and purposes. RECITALS A. City and Airlines are parties to that certain Agreement No. 3319, dated July 1, 1994 and approved by City Council Resolution 18205, as amended by letter agreement dated August 15, 1999 (collectively"Agreement") for Airline's provision of commercial air transportation services for, and City's lease of certain premises within,the Terminal Building Complex in the Palm Springs International Airport, as more fully set forth in the Agreement. B. Under the Agreement,Airline currently leases Existing Exclusive Use Space No. 5 including, which includes outbound baggage space, as such terns are defined in the Agreement, as shown on Exhibit C to the Agreement, which Existing Exclusive Use Space is re-numbered as Existing Exclusive Use Space No. 4 on Exhibit C attached to this Amendment. C. The parties are desirous of allowing Airline to lease additional Existing Exclusive Use Space and outbound baggage space, which additional space is collectively designated as Existing Exclusive Use Space No. 2 on Exhibit C attached to this Amendment. D. Specifically, the parties wish to have Airline lease Existing Exclusive Use Space No. 4 consisting of 562.5 square feet plus 450 square feet of outbound baggage space, and Existing Exclusive Use Space No. 2 consisting of 1770.5 square feet plus 1,350 square feet of outbound baggage space. E. The parties wish to amend the Agreement based upon the terms of this Amendment. NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Airline agree as follows: 1. Letter Agreement. The letter agreement between the parties, dated August 15, 1999 and approved by the City Manager of the City on August 19, 1999, is hereby void and of no further validity or effect. IRV 911998 v1 -1- his I Section 4.01, at the introductory language and subsection(A)thereunder of the Agreement, shall be amended to read as follows, with all other provisions of Section 4.01 remaining unchanged and in full force and effect: Section 4.01 Period From Effective Date to End of Tenn Commencing on July 15, 2001 and continuing until the end of the term of this Agreement, City grants Airline the right to use certain premises located in the Terminal Building Complex at the Airport, consisting of the following: (A) Existing Exclusive Use Space. Such portions of the Terminal Building Complex known as the Existing Exclusive Use Space, consisting of ticket counter space, office and operations space, outbound baggage space and baggage service desks, depicted as Exclusive Use Spaces Nos. 2 and 4 on Exhibit C attached hereto. The square footage of the floor area for such Existing Exclusive Use Spaces Nos. 2 and 4, including the outbound baggage space assigned to such Existing Exclusive Use Spaces, as shown and delineated on Exhibit C, shall apply to this Agreement. 3. Exhibit C. Exhibit C attached to the Agreement is hereby deleted and replaced in its entirety with"Exhibit C" attached to this Amendment and incorporated herein by this reference, with all other exhibits to the Agreement remaining unchanged and in full force and effect. 4. Due Execution. The person(s) executing this Amendment on behalf of the parties hereto warrant that(i) such party is duly organized and existing, (ii)they are duly authorized to execute and deliver this Amendment on behalf of said party, (iii)by so executing this Amendment, such parry is formally bound to the provisions of this Amendment, and(iv)the entering into this Amendment does not violate any provision of any other agreement to which said party is bound. 5. Full Force and Effect. The parties farther agree that, except as specifically provided in this Amendment,the terms of the Agreement shall remain unchanged and in frill force and effect. (Signatures on following page) IRV 411998 VI _2_ IN WITNESS WHEREOF,the parties hereto have executed and delivered this Consent as of the date written above. "City" ATTEST: CITY OF PALM SPRINGS, a California municipal corporation City Clerk City Manager APPROVED AS TO FORM: City Attorney "Airline" SKYWEST AVIATION, INC., a corporation organized and existing under the laws of Utah By Its By Its (Corporations require two signatures;one for each of the following. A. Clayman of Board,President or Vice President;AND B Secretary,Assistant Secretary Treasurer,Assistant Treasurer or Chief Financial Officer.) IRV 911998 v1 s� y EXHIBIT "C" EXCLUSIVE USE SPACE �o SPACE SQ.FT. e 1 Exclusive 2453.0 Outbound 0 2 Exclusive 1770.0 Outbound 1350.0 3 Exclusive 562.5 Outbound 450.0 4 Exclusive 562.5 Outbound 450.0 5 Exclusive 609.0 Outbound 450.0 6 Exclusive 1639.0 Outbound 450.0 7 Exclusive 821.0 Outbound 450.0 8 Exclusive 286.0 Outbound 136.0 9 Exclusive 1371.0 Outbound 395.0 10 Exclusive 1130.0 Outbound 504.0 LA LL ----------------- 3 4 5 6 7 8 *Note: This section is counter space and front office only. ��w J MINUTE ORDER NO. 6876 APPROVING AMENDMENT #1 TO AGREEMENT NO. 3319 WITH SKYWEST AIRLINES TO ADD EXCLUSIVE USE SPACE AND OUTBOUND BAGGAGE SPACE. ------------------ I HEREBY CERTIFY that this Minute Order, approving Amendment #1 to Agreement No. 3319 with Skywest Airlines to add exclusive use space and outbound baggage space, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 5th day of July, 2001. PATRICIA A. SANDERS City Clerk