The URL can be used to link to this page

Home My WebLink About8/1/2001 - STAFF REPORTS (3) DATE: August 1, 2001 TO: City Council FROM: Deputy Director of Aviation-Administration via Interim Director of Aviation SKYWEST MAINTENANCE FACILITY EXPANSION RECOMMENDATION: It is recornmended that the City Council approve Amendment No.2 to AgreementNo.23 88 with Skywest Airlines for approximately 1.01 acres for facility expansion.. SUMMARY: Skywest Airlines desires to expand its aeronautics and aircraft modification operations in Patin Springs,and thus will relocate parking facilities to the 1.01 acres of land adjacent to the north end of its current site. BACKGROUND: Skywest Airlines has completed the plan review for facility expansion on an additional one acre parcel. Staff has negotiated terms for the additional 1.01 acres in the amount of$1,304 per month. Staffwould like to point out that Skywest is rapidly expanding their current aircraft fleet and taking delivery of twenty-five(25)Canadair Regional Jets(CRJ)in the next year. Skywest operates Delta Connection and United Express,and PSP stands to benefit greatly if we can demonstrate our ability to work with them. As Skwest continues to increase fleet size,the maintenance of those aircraft will be vital to the operations of the Skywest aircraft fleet. Palm Springs has great potential to be a key maintenance site for Skywest aircraft and thus possibly increase air service. Staff believes this amendment begins to demonstrates PSP's ability to work with Skywest into the future. C �` n APPROVED: &OOT, RICHARD STRICKLAND ' ALLE FE. Deputy Director of Aviation-Administration Interim Director of Aviation C APPROVED:-•--� '� r"l✓d �•o�-�y City Manager Attachments: 1. Minute Order REVIEWED BY DEPT.OF FINANCE 2. Agreement �A AMENDMENT NO. 2 TO INDENTURE OF LEASE NO. 2388 This AMENDMENT NO. 2 TO INDENTURE OF LEASE NO. 2388 ("Amendment") is made and entered into this day of July,2001 by and between the CITY OF PALM SPRINGS, a California municipal corporation ("Lessor") and SKYWEST AIRLINES, INC., a corporation organized under the laws of the State of Utah("Lessee"). RECITALS WHEREAS, the City of Palm Springs, California, hereinafter called"Lessor," and called "Lessee" entered into Lease Agreement No. 2388 ("Agreement"), effective January 15, 1987; and WHEREAS,Lessor owns and operates an airport known as the Palm Springs International Airport, located in the City of Palm Springs, County of Riverside, State of California("Airport"); and WHEREAS,to farther its business of aeronautics,aircraft modification,Lessee is desirous of leasing certain real property consisting of approximately 1.01 acres (or approximately 44,072.80 square feet), which property is part of the Airport, as more specifically described and depicted as Parcel 5B on Exhibit"A-1", attached hereto and incorporated herein("Parcel 513"); and WHEREAS,Lessor is desirous of leasing Parcel 5B to Lessee and granting Lessee certain rights to access the Airport from Parcel 5B to allow Lessee to perform its business of aeronautics, aircraft modification thereon. NOW THEREFORE,in consideration of the covenants and agreements contained herein,the above recitals,and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the parties hereto agree as follows: Section 1. The Agreement,at the paragraph immediately preceding Article I,and beginning with the words "NOW, THEREFORE" shall be amended in its entirety to read as follows: "NOW, THEREFORE, for and in consideration of the rents, fees, covenants and agreements contained herein and other valuable consideration,Lessor does hereby demise, rent and let to Lessee,and Lessee does hire,take and lease from Lessor,(a)the parcel of land containing approximately five (5) acres, and more particularly described and depicted as Parcel 5 on Exhibit"A"attached hereto and made a part hereof for all purposes;and(b)the parcel of land containing approximately one and one hundredth (1.01) acres, and more particularly described and depicted as Parcel 5B on Exhibit"A-l"attached hereto and made a part hereof for all purposes,together with those rights and privileges stated elsewhere in this Agreement upon the following terms and conditions:" Section 2. Article II,at Section A,of the Agreement,at the heading entitled"Leased Premises" and the first sentence therein, shall be amended in its entirety to read as follows, with all other provisions of Article II and Section A therein remaining unchanged and in full force and effect: at4z A. Leased Premises—Parcel 5: The rental value of Parcel 5 shall be as set forth in this Section II.A,which,at the inception of this lease is$3,994 per month,and that sum is the base rent for purposes of rental adjustment as hereinafter provided. Section 3. A new Sections "C" entitled"Leased Premises—Parcel 513" shall be added within Article II of the Agreement and immediately after Section B of Article II,with all other provisions of Article II remaining unchanged and in full force and effect: C. Leased Premises—Parcel 513: As rental value for Parcel 5B between August, 2001 through and including June,2006,Lessee shall pay to Lessor the sum of One Thousand Three Hundred Four Dollars ($1,304) per month, and that sum shall be the base rent for purposes of rental adjustment as hereinafter provided. The rent provided herein shall be payable monthly in advance and at the same time as required for monthly rentals applicable to Parcel 5 pursuant to Section ILA above. Late payments of rent for Parcel 5B under this Section ILC shall be subj ect to the same late charge and interest pursuant to the provisions of Section ILA above. Beginning on July 1,2006 and each five(5)years thereafter throughout the term of this Agreement, the rent payments for Parcel 5B as provided herein shall be adjusted to reflect the change,if any,in cost of living as shown in the Consumer Price Index (CPI) in the same manner as set forth at Section ILA above. Section 4. A new Exhibit"A-I"which is attached to this Amendment labeled"Exhibit'A-1 shall be added to the Agreement immediately following Exhibit"A"therein,which Exhibit"A-1" contains the specific description of and map depicting Parcel 513,with all other Exhibits,including Exhibit "A", remaining unchanged and in full force and effect. Section 5. 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 party 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. Section 6. Full Force and Effect. The parties agree that, except as specifically provided in this Amendment, the terms of the Agreement shall remain unchanged and in full force and effect (Signatures on following page) IN WITNESS WHEREOF, the parties have executed and entered into this Amendment No. 2 as of the date first written above. "City" CITY OF PALM SPRINGS, a California municipal corporation ATTEST: By City Clerk City Manager APPROVED AS TO FORM: City Attorney "Lessee" SKYWEST AIRLINES, INC., a corporation organized under the laws of the State of Utah (NOTARIZED) By: 6( Ad2 Signature H. Michael Gibson, VP Maintenance Print Name and Title (NOTARIZED) By: Signature Eric Chrisitensen VP Planning Print Name and Title Mailing Address: 444 S . River Rd. St. George, Utah 84790 (Corporations require two signatures;one from each of the following:A.Chairman of Board,President,any Vice President;AND B. Secretary,assistant Secretary,treasurer,assistant Treasurer,or Cluef Financial Officer). End of Signatures MINUTE ORDER NO. 6893 APPROVING AMENDMENT NO. 2 TO AGREEMENT NO. 2388 BETWEEN THE CITY OF PALM SPRINGS AND SKYWEST AIRLINES FOR APPROXIMATELY 1.01 ACRES FOR FACILITY EXPANSION.. ------------------ I HEREBY CERTIFY that this Minute Order, approving Amendment No. 2 to Agreement No. 2388 between the City of Palm Springs and Skywest Airlines for approximately 1.01 acres for facility expansion was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 15t day of August, 2001. PATRICIA A. SANDERS City Clerk