The URL can be used to link to this page

Home My WebLink About7/15/2015 - STAFF REPORTS - 2.S. QpLM$A Y N r POR CITY COUNCIL STAFF REPORT DATE: July 15, 2015 CONSENT CALENDAR SUBJECT: AMENDMENT NO 2. TO AGREEMENT NO. 5966 WITH EVA'S AT PALM SPRINGS INTERNATIONAL AIRPORT, EXTENDING THE TERM UP TO FOUR YEARS FROM: David H. Ready, City Manager BY: Department of Aviation SUMMARY An action approving Amendment No. 2 to the current agreement with Eva Karlstrom, owner of Eva's at Palm Springs International Airport, for operation of a retail kiosk, extending the term of the original agreement up to an additional four years. RECOMMENDATION: 1. Approve Amendment No. 2 to Agreement No. 5966 with Eva's at Palm Springs Airport, extending the term three years effective September 1, 2015, to August 31, 2018, with an option for a fourth year. 2. Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: Eva's at Palm Springs International Airport is a retail concessionaire operating out of a portable kiosk on the Bono Concourse. It is one of two airport gift concessions, and is a certified Disadvantaged Business Enterprise (DBE) operating at the airport at this time. The current agreement for Eva's was a result of a public bid process in 2010 and is set to expire on August 31, 2015. The proposed three-year extension would be effective September 1, 2015, through August 31, 2018, and include a fourth year option at the discretion of the City. ITEM NO. City Council Staff Report July 15, 2015- Page 2 Amendment No. 2 to Agreement No. 5966. Eva's at Palm Springs Airport The Airport Commission has recommended extending this agreement, which will coincide with the expiration of the two other major food and gift concessions. At that time, a study of the concessions programs is planned prior to the rebidding process to identify opportunities for concept changes and expansions, similar to the one conducted in 2008 with the addition of Starbucks, LaBrea Bakery, Zia, and CNBC. FISCAL IMPACT: The current annual rent amount is $18,194. This agreement renewal also includes an annual Consumer Price Index (CPI) rent adjustment. Thomas Nolan David H. Ready, D. Executive Director, Airport City Manager Attachment: Amendment No. 2 Photos 02 City Council Staff Report July 15, 2015- Page 3 Amendment No. 2 to Agreement No. 5966. Eva's at Palm Springs Airport 71 f F 03 ReportCity Council Staff -..- Amendment No. 2 to Agreement No. 5966, Eva's at Palm Springs Airport IJ y � r b • y J AGREEMENT NO. 5966 AMENDMENT NO. 2 EVA KARLSTROM DBA EVA'S AT PALM SPRINGS AIRPORT NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT FOR TWO RETAIL MERCHANDISING UNITS AT PALM SPRINGS INTERNATIONAL AIRPORT This SECOND AMENDMENT to Agreement No. 5966 for a two-retail merchandising units concession (Herein "Agreement") made and entered into on the Fifteenth day of July 2015, by and between the CITY OF PALM SPRINGS (herein "City"), and EVA KARLSTROM a sole proprietor doing business as Eva's At Palm Springs Airport (herein "Concessionaire") is hereby effective July 15, 2015 as follows: RECITALS WHEREAS, the City and Concessionaire entered into that certain Non-Exclusive Operating and Lease Agreement No. 5966 for Two Retail Merchandising Units ("Agreement"), as may be duly amended from time to time. WHEREAS, the parties wish to amend the Agreement pursuant to the terms of Amendment No. 2 as follows: 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 Contractor agree to amend the Agreement as follows: Section 1. Lease Summary 1.2 Lease Term. The current term of this agreement is hereby extended three years and shall terminate on August 31, 2018, unless extended as provided herein. 1.3 Extension Options. One (1) one-year option at the sole discretion of the City. City will notify Concessionaire at least sixty (60) days in advance of the current term ending date if the option will be exercised. 1.4 Lease Rental Payments. Rental payment is due on the first of each month of the agreement period as follows: Year 1: $2,350.00 monthly rental payment x 8 months, or 12% of total gross sales generated each year of the agreement, whichever is greater. Monthly rental for the eight months shall be October 1st to May 31st of each year, any additional months may 1 04 be prorated if the retail units are in service. Year 2 through 3 and year 4 if extension is exercised: the monthly rent shall be automatically adjusted on October 15t of each term year in an amount equal to the increase in the Consumer Price Index for All Urban Consumers (CPI-U) in the Los Angeles-Riverside-Orange County, CA, for the month of June preceding the adjustment date as compared to the preceding base index. The CPI-U for June 2015 shall be the first base (100%). Section 3. Rental 3.9 Independent Statement of Gross Revenue. No later than ninety (90) days after each agreement year, Concessionaire shall furnish to the City the written statement of an independent licensed and bonded accounting firm stating that the Airport Fee paid by the Concessionaire to the City pursuant to this Agreement during each of Concessionaire's fiscal years is accurate. Such statement shall also state Gross Revenues as shown on the books and records of Concessionaire that were used to compute the Percentage Fee or the minimum monthly rent, whichever is greater, that will be made to the Director of Aviation during the period covered by the statement. Section 5. Alterations and Repairs 5.2 Maintenance and Repair. Concessionaire shall, subject to City's obligations hereinafter provided, at all times during the term hereof, and at Concessionaire's sole cost and expense, keep, maintain and repair the Demised Premises and other improvements (including the Retail Merchandising Units) within the Demised Premises in good and sanitary order, condition, and repair. Concessionaire shall also at its sole cost and expense be responsible for any alterations or improvements to the Demised Premises necessitated as a result of the requirement of any municipal, state or federal authority. Umd1]Concessionaire shall be deemed to have accepted the Premises and two Retail Merchandising Units as being in good and sanitary order, condition and repair. Concessionaire agrees on the last day of said term or sooner termination of this Lease to surrender the two Airport supplied Retail Merchandising Units, in the same condition as when received and in a good, clean and sanitary condition, reasonable use and wear thereof and damage by fire, act of God or by the elements accepted. Full Force and Effect. Except as expressly modified herein, all other provisions of the Agreement shall remain unmodified and in full force and effect. Corporate Authority. The persons 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 such part, (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 provisions of any other agreement to which said party is bound. 2 05 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below. "CITY" City of Palm Springs Date: By: David H. Ready City Manager APPROVED AS TO FORM: ATTEST By: By: Douglas C. Holland, James Thompson, City Attorney City Clerk APPROVED BY CITY COUNCIL: Date: Agreement No. Corporations require two notarized signatures. One signature must be from Chairman of Board, President, or any Vice President. The second signature must be from the Secretary,Assistant Secretary, Treasurer,Assistant Treasurer, or Chief Financial Officer. COMPANY NAME: Check one Individual Partnership_Corporation Address By By Signature(Notarized) Signature(Notarized) 3 06 CALIPPD1rNA.ALL44AERME ACKNOWL®fMBft CWIL CODE§1180 A eery p�lic a afar dice ccnyle6�p to msirata vwies any ton id.iuy d to idvi3d Wm sprd tie downwttowhich theaurotcaeiladechad end nottwmahkkaes.a curacy wwk*d*WdoamenL aids or cuff m ) Co of ) on before me, Dde Akre kumt Name and rdla of to of kxw personally appeared A X—M of SONNN who prayed to me m the bead of ashafsctory evidence b be the paraw{m) whose rm nals) Were auheabed to the within imb anent end edarasdedpad to me ihd hehhaAhuy executed the mare in hmRnxAtmF andf=md repeciy[ma and that by hoaftwtlei siprsture(s)on the iwhunant the permnn(a). w the entity upon b~of which the poison(a)acted,executed the irstrun ouL I certify uidw PENi1LTY OF PERJURY eider the Imes of the Sbde of CeHarria the tha fw rig pareWaph is true end conwL WrFWW my hand and official sea e Sigmhae of Abtery Pufxk Place Afolay Sant Above Of'TfOiYAL Though 8is section a optiww4 cwnphwhV tfw fftaww m con deist aAaw6om of dw doarrnerd or hau lderd rwdsuhmant of Cues bum to an unwdandsd document. Deses"on of Athdmd Doaenwd Title cr Type of Doaarow t Duaenerd Dde: Number of Papas: 89mr(s) o8er Than Harrod Above: Cepecity Chaired by%W wrM swises N■na: 9iwoes Name: ❑Cwpnste Officer—Ti n@* ❑CaPaae Olfra—TO8K ❑Partm— ❑Lkwhad ❑(imerd ❑Partner— ❑Lird d ❑General ❑hndvidud ❑Atturrmy m Fad ❑mad ❑At n"in Fad ❑Trustee 0 Camden ar OanmeraAw ❑Tnmtee ❑Guwddw w Conservator ❑OMmr ❑O@er ae8rer In RapnwenbW 3iymr Is Rapre®edrp: 62814 ffaimd Nohry Aeeoai�on•www!l�unallodyag•1�00.U8 MDTAfif{1-808-871M827) Ram t61187 Eva's At Palm Springs Airport, Amendment 2 4 07