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HomeMy WebLinkAbout5/7/2014 - STAFF REPORTS - 2.P ;O�pALM Sp4 iy c V N cg11FOR0 CITY COUNCIL STAFF REPORT DATE: May 7, 2014 CONSENT AGENDA SUBJECT: AMENDMENT NO. 5 TO SIGNATURE FLIGHT SUPPORT LEASE AGREEMENT A4821 WITH SIGNATURE FLIGHT SUPPORT FROM: David H. Ready, City Manager BY: AIRPORT SUMMARY This action would allow for Palm Springs International Airport tenant, Signature Flight Support to lease a vacant aircraft hangar and modify leasehold parcel boundaries. RECOMMENDATION: 1. Approve Amendment No. 5 of Agreement No. A4821 with Signature Flight Support for the long term lease of the aircraft hangar and apron located on Parcel 5 (Exhibit A attached), and release undeveloped, underutilized leasehold parcels back to the airport, commencing on May 15, 2014. 2. Authorize the City Manager to execute all necessary documents as required. STAFF ANALYSIS Signature Flight Support is a Fixed Base Operator (FBO), conducting business on the Palm Springs International Airport under a long term lease which extends through 2044. This leasehold consists of fourteen different parcels dispersed over a third of a mile in the West quadrant of airport property abutted by El Cielo and East Alejo roads. The nucleus of the Signature Flight Support property is a general aviation terminal complex and apron located adjacent to the new FAA Air Traffic Control tower. There exists a number of airport controlled parcels mixed within the large Signature leasehold area. One of the most prominent parcels is a large 30,000 square foot aircraft hangar recently vacated by a corporate tenant Heckman Enterprises. This Parcel includes hangar facilities, apron, and adjacent vehicle parking which are in excellent condition and well suited for use by Signature Flight Support's operations. ITEM NO. �� ;OQ?P`M Sp9 �y V N 4 .t R ko R� 4bR4i[O i c4<�FoaN�P City Council Staff Report Date: May 7, 2014 CONSENT Subject: AGREEMENT FOR ASSIGNMENT OF GRANT FROM THE CITY TO THE PALM SPRINGS HISTORICAL SOCIETY FOR FUNDING OPERATING EXPENSES AT VILLAGE GREEN AND MCCALLUM ADOBE From: Douglas Holland, City Attorney SUMMARY This Agreement for Assignment of Grant transfers the principal and unexpended earned interest of a grant from the McCallum Desert Foundation from the City to the Palm Springs Historical Society to fund the Society's operating expenses for Village Green and the McCallum Adobe. RECOMMENDATION: 1. Approve the Agreement for Assignment of Grant from the City to the Palm Springs Historical Society. 2. Authorize the City Manager to execute the Agreement on behalf of the City. STAFF ANALYSIS: In 1986 the City received a grant from the McCallum Desert Foundation in the amount of $250,000.00 "as a permanent endowment for the benefit of the Palm Springs Historical Society" subject to various conditions as described in Resolution No. 15894 of the City Council of City. The principle, any unexpended earned interest on the principle, and the terms and conditions of the Grant are described in the Agreement for Assignment of Grant attached to this Staff Report and the Exhibit to the Agreement. Subsequent to the receipt of the Grant, the PSHS organized itself as a California non- profit corporation with tax-exempt status under federal law. PSHS has requested that the Grant be transferred to PSHS. City staff has determined that the amount of the Grant and unexpended earned interest is $251,517.00. The Agreement specifically provides that Society will comply with the following conditions, consistent with the provisions of the original grant as accepted by the City Council in 1986: ITEM NO. a� City Council Staff Report May 7, 2014 -- Page 2 Amendment No. 5 Signature Flight Support Lease 4821 In addition to interest in the vacant corporate hangar, Signature Flight Support and staff have identified other leasehold parcels that either do not have taxiway access or have not been developed since the inception of their lease. Under this amendment, these identified parcels will be surrendered by Signature and returned to the airport's control for future development plans. The following exhibit illustrates all of the parcels involved in this lease amendment. L. IAMB! m • v EJA..Ana 4 T 00 IOWEII D I ♦' ` �.j ADDING PARCEL S-LAND AND BUILDING .,r..I � IIII SIGNATURE FLIGHT SUPPORT-LEASE BOUNDARIES X JI NOTES TAXIWAYDIMENSON5 BASED ON ADG-II.SF MEASURMENTSARE APPROXIMATE. 1.PARCELS BASED ON SCALED INFORMATION,NOT SURVEYED. 2.DRAWINGS ADJUSTED TO THE BEST SCALE POSSIBLE. 3.PARCELS 1,2 AND 4 BOUNDARIES DETERMINED FROM TERMINAL CAD D INGS 4.REMAINING PARCEL BOUNDARIES DETERMINED FROM"AIRPORT PACCELS"AERIAL MAP AND"EXHIBIT r FROM LEASEHOLD DOCUMENTS.NEITHER OF THESE DOCUMENTS APE TO SCALE. Y Under the amendment, Signature Flight Support would rent the vacant corporate hangar (Parcel 5), including the aircraft apron and vehicle parking lot, for the remainder of their long term lease. The facility would be used for storage of transient and based aircraft and Signature would have full responsibility for the maintenance and operation under a triple net basis. The airport would not have any financial obligation and the tenant accepts the facility in the current condition. The lease amendment will include the return of three parcels, outlined above in green, and the two easement areas highlighted in purple. All of these parcels will accommodate future development of airport facilities including the terminal car rental facilities and potential expansion of non-aeronautical businesses. 02 City Council Staff Report May 7, 2014 Agreement for Assignment of Grant 1. PSHS will apply the "prudent investor standard" in the management and investment of the grant funds with safety of the principal as the foremost objective considered when investing the funds. (The City accepted the grant subject to compliance with specific investment requirements under the Government Code which are applicable solely to government agencies. This revised provision recognizes the funds should be prudently and conservatively invested in a manner intended to preserve the Grant.) 2 All interest earned on the grant funds will be used solely for purposes of funding PSHS operating expenses for the Village Green and McCallum Adobe. 3. The principal amount of $250,000.00 can only be used for historical preservation of the McCallum Adobe, currently located at the Village Green. If the McCallum Adobe is damaged beyond repair, the funds shall be used for the preservation of other historic structures and sites in the City of Palm Springs. FISCAL ANALYSIS The grant funds will be transferred to the Palm Springs Historical Society upon its acceptance of the assignment of the City's obligations and the City no longer have any obligations regarding the administration of the grant funds. It is anticipated that approval of the Agreement for Assignment of the Grant will not have a financial effect on the City. Douglas ,Holland, City Attorney David Ready, Ci der Attachment: Agreement for assignment of Grant 02 City Council Staff Report May 7, 2014 -- Page 3 Amendment No. 5 Signature Flight Support Lease A4821 FISCAL IMPACT: With the vacant hangar incorporated into the long-term Signature lease, the rental generated to the airport from Parcel 5 will be $12,684 per month compared to the prior tenant's $4,497.50 per month. The rental rates will then escalate predicated on consumer price indexing. In addition to rent, there are other concession revenues generated by the FBO customers as a percentage of gross sales on services ranging from aircraft parking to fuel sales, and various other services. The return of vacant undeveloped parcels reduces Signature's current leasehold rent obligations by $4,311 per month. However, this same property is projected to generate higher rents in future due to the land rates being adjusted to current market values. The car rentals expansion, which is on the near horizon, will also generate higher revenues from what is already the airport's single largest revenue source. Thomas Nolan, Executive Director, Airport David H. Ready Hager Attachments: Lease Amendment No. 5 03 AGREEMENT FOR ASSIGNMENT OF GRANT This AGREEMENT FOR THE ASSIGNMENT OF A GRANT ("Agreement") is entered into as of May 8, 2014 by and between the City of Palm Springs, a California charter city and municipal corporation ("City"), and the Palm Springs Historical Society, a California non-profit corporation ("PSHS"), and administered by the City Manager of the City or the City Manager's designee ("Administrator"). RECITALS A. In 1986 the City received a grant from the McCallum Desert Foundation in the amount of$250,000.00 "as a permanent endowment for the benefit of the Palm Springs Historical Society" subject to various conditions as described in Resolution No. 15894 of the City Council of City. A copy of Resolution No. 15894 is attached to this Agreement. The principle, any unexpended earned interest on the principle, and the terms and conditions of Resolution No. 15894 are described in this Agreement as the "Grant." B. Subsequent to the receipt of the Grant, the PSHS organized itself as a California non- profit corporation with tax-exempt status under federal law. PSHS has requested that the Grant be transferred to PSHS. C. The City has determined that the amount of the Grant and unexpended earned interest is $251,517.00 and is willing to transfer this amount to PSHS subject to all conditions and terms of the Grant and the provisions of this Agreement. D. The Parties recognize the Grant to the City was accepted by the City subject to the City complying with specific investment requirements of the Government Code applicable only to government agencies. The Parties further recognize the grant funds should be prudently and conservatively invested in a manner intended to preserve the Grant. NOW, based on the Recitals, which are a substantive part of this Agreement, and the provisions of this Agreement, the City and PSHS agree as follows: 1. ASSIGNMENT OF GRANT. The City assigns all of its rights, title, and interest in the Grant to PSHS and PSHS accepts the assignment of the Grant subject to each and every condition and term of the Grant and this Agreement. The express conditions of the Grant are: 1.1 PSHS shall maintain the grant funds as a permanent endowment and apply the "prudent investor standard" in the management and investment of the grant funds. Safety of the principal will be the foremost objective considered when investing the grant funds. 1.2 All interest earned on the grant funds will be used solely for purposes of funding PSHS operating expenses for the Village Green and McCallum Adobe. 1.3 The principal amount of$250,000.00 can only be used for historical preservation of the McCallum Adobe, currently located at the Village Green. If the McCallum Adobe is damaged beyond repair, the funds shall be used for the preservation of other historic structures and sites in the City of Palm Springs. � �r' - 03 AMENDMENT NO. 5 TO LEASE 4821 SIGNATURE FLIGHT SUPPORT CORPORATION OPERATING AND LEASE AGREEMENT FOR FIXED BASE OPERATOR (FBO) SERVICES AT PALM SPRINGS INTERNATIONAL AIRPORT THIS AMENDMENT NO. 5 TO LEASE #4821 is made and entered into this fifteenth day of May 2014 (the "Effective Date"), by and between the CITY OF PALM SPRINGS, a charter city and California municipal corporation ("City"), and Signature Flight Support Corporation a Delaware corporation ("Tenant"). City and Tenant may hereinafter be referred to individually as a "Party" and collectively as "Parties". RECITALS WHEREAS, on January 21, 2004, City and Tenant entered into that certain Lease with Tenant for Fixed Base Operator (FBO) Services ("Agreement"), for Tenant's lease and operation of its FBO at Palm Springs International Airport ("Airport") as more specifically described in the Agreement; WHEREAS, on October 24, 2004, and before Tenant, through its authorized subcontractor, commenced construction of improvements at the Airport on Parcels 3 and 6 pursuant to the Agreement, the Parties entered into Amendment No. 1 to the Agreement ("Amendment No. V) in order to restrict construction on Parcels 3 and 6 to ensure appropriate and adequate access to the structures being constructed thereon exists at the Access Way, as such term is defined therein; WHEREAS, on January 12, 2005, Amendment No. 1 was superseded in its entirety by Amendment No. 2 to the Agreement which added designated building setbacks on Parcels 3 and 6; WHEREAS, on March 15, 2006, Amendment No. 3 to the Amendment removed certain language requiring a payment upon completion of the demolition to the Hangar located on Parcel 13; WHEREAS, on September 1, 2010, Amendment No. 4 to the Agreement added definitions for flight school aircraft tie-downs, Aircraft Rescue and Firefighting (ARFF) emergency route, and revised the description of Parcels 1, 2, 4 and 6; WHEREAS, the parties wish to amend the Agreement pursuant to the terms of this Amendment No. 5 as follows; 1 04 2. STATUS OF PSHS. PSHS is and shall at all times be deemed to be an independent entity and shall be wholly responsible for the manner in which it performs the obligations and conditions required of it by the terms of this Agreement. Nothing in this Agreement shall be construed as creating the relationship of employer and employee or principal and agent between City and PSHS or any of PSHS's agents or employees. PSHS knowingly, voluntarily, and expressly assumes exclusively the responsibility for the acts of its employees or agents as they relate directly or indirectly to the obligations of PSHS under this Agreement and its officers, agents, employees, and contractors shall not, in any respect whatsoever, be considered in any manner to be City employees. City shall neither have nor exercise any control or direction over the methods by which PSHS shall perform its obligations under this Agreement. City shall not be responsible or liable for the acts or failure to act, whether intentional or negligent, of any employee, agent, or volunteer of PSHS. 3. INDEMNIFICATION. PSHS agrees to and shall indemnify, defend, hold harmless City and its officers, agents, and employees from and against all liability, claims, losses and demands, damages to property or injuries to or death of any person or persons, including property of officers, employees, or agents of City, including defense costs (together, "Claims"), or claims of any nature regarding the use of the Grant, whether resulting from court action or otherwise, resulting from, related in any manner to, or arising out of the intentional, malicious, negligent acts, inactions, errors or omissions of PSHS, its officers, employees, agents, and/or its contractors in the performance of this Agreement. 4. GENERAL TERMS AND CONDITIONS. 4.1 Compliance with Laws. PSHS will perform its obligations under this Agreement in accordance with all applicable federal and state laws, statutes and regulations and local ordinances and resolutions. 4.2 Severability. If a court of competent jurisdiction declares any provision of this Agreement or its application to any person or circumstances to be invalid or if any provision of this Agreement contravenes any federal, state, or county statute, ordinance, or regulation, the remaining provisions of this Agreement or its application shall remain valid, and the remaining provisions of this Agreement shall remain in full force and effect, and to that extent the provisions of this Agreement are severable. 4.3 California Law. This Agreement shall be construed and interpreted both as to validity and to performance in accordance with the laws of the State of California. Legal actions concerning any default, dispute, interpretation, declaration of rights, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in the county, and PSHS covenants and agrees to submit to the personal jurisdiction of the court in the event of any action. 4.4 Waiver. No delay or omission in the exercise of any right or remedy of a non-defaulting party on any default shall impair any right or remedy or be construed as a waiver. One party's consent or approval of any act by the other party requiring the other party's consent or approval shall not be deemed to waive or render unnecessary the party's consent to or approval of any subsequent act of the party. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. 4.5 Rights and Remedies Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of the rights or remedies shall not preclude the exercise by 2111 a 04 AGREEMENT NOW THEREFORE, in consideration of the City's covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, City and Tenant mutually agree as follows: Additional Premises: Parcel 5 and associated Improvements - Approximately 30,000 sq. ft. of Hangar, 2,000 sq. ft. of office/shop as well as associated car parking, and aircraft ramp area as depicted in Exhibit A. Term: Commencing on the Effective Date through the existing Term of the Agreement - expiring on May 31 2044. Additional Rent: For, vehicle parking area, aircraft ramp area, and other non-building space on Parcel 5 Tenant shall pay $0.44 per square foot by 106,659 square feet ($46,929.96 annually) plus $3.29/SF for the 32,000 square feet Hangar/Office space ($105,280.00 per annum). Tenant also agrees to pay an additional $40,000.00 per annum, to be paid in equal monthly installments of $3,333.33 each, for the variance of existing corporate hangar space from the specifications as required by the Airport's current FBO minimum standards. At such time as Tenant meets or exceeds the additional corporate hangar space specified in the FBO Minimum standards, in place as of the Effective Date, such additional $40,000.00 annual fee shall be immediately discontinued. The foregoing equates to total additional rent of $192,209.96 per annum (plus applicable taxes), paid in twelve equal monthly installments. Deleted Premises: Parcels 01 and 02, which do not have access to aircraft taxi lanes, and Parcel 10, together totaling 50,595 square feet. Parcel 12, as well as parts of Parcels 1, 2, 4, 7, 11 and 13 located within the taxi lane object free areas, or a total of approximately 107,858 square feet. The foregoing area, totaling 158,453 square feet, is hereby deleted from the description of Demised Premises under the Agreement. The annual rental credit in favor of Tenant for such combined space is $51,734.99. Premises: The modified Demised Premises, including the Additional Premises as described above shall be comprised of approximately 1,187,167 square feet of land as well as all improvements on such land, as more particularly depicted 2 05 it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party. 4.6 Covenant against Discrimination. In the performance of this Agreement, PSHS shall not engage in, nor permit any employee or agent to engage in discrimination in employment of persons or provision of Services or assistance, nor exclude any person from participation in, nor deny any person the benefits of, nor or subject any person to discrimination under any program or activity funded in whole or in part with Grant funds on the grounds of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, gender or sexual orientation, except as permitted by applicable provisions of Federal and State law. 4.7 Legal Action. In addition to any other rights or remedies, either party may take legal action, at law or at equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. 4.8 Attorneys' Fees. If either party commences an action against the other party arising out of or in connection with this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs of suit from the non-prevailing party. 5. REPRESENTATIONS AND WARRANTIES OF PSHS. PSHS makes the following representations and warranties to City. These representations and warranties are ongoing and PSHS shall advise Administrator in writing if there is any change pertaining to any matters set forth or referenced in the following Subparagraphs 5.1 through 5.3, inclusive. 5.1 No Conflict. To the best of PSHS's knowledge, PSHS's negotiation, consideration and action on this Agreement and PSHS's execution, delivery and performance of its obligations under this Agreement will not constitute a default or a breach under any contract, agreement or order to which PSHS is a party or by which it is bound. 5.2 No Bankruptcy. PSHS is not the subject of any current or threatened bankruptcy. 5.3 No Pending Legal Proceedings. PSHS is not the subject of a current or threatened litigation that would or may materially affect PSHS's performance under this Agreement. 6. AUDIT OF PERFORMANCE. Administrator shall have access to any books, documents, papers, and records of PSHS which Administrator determines to be pertinent to this Agreement for the purpose of reviewing PSHS performance under this Agreement. 7. NOTICES. Unless otherwise specified, all formal notices, invoices, claims, correspondence, or reports shall be addressed as follows: City: City of Palm Springs 3200 E. Tahquitz Canyon Way P.O. Box 2743 Palm Springs, CA 92263 ATTN: City Manager PSHS: Palm Springs Historical Society P.O. Box 1498 Palm Springs, CA 92263 ATTN: President on Exhibit A attached hereto and incorporated herein by this reference. Movement Easement Area: The land and improvements located within the areas identified as the Movement Easement Area(on Exhibit A) do not form a part of the Demised Premises or Additional Premises and Tenant shall have no obligations to pay rent for or maintain the Movement Easement Areas as of the Effective Date. Tenant, and the employees, contractors, customers and subtenants of Tenant and other users of the Airport infrastructure shall at all times be permitted to travel on or across Movement Easement Area and City or any other parties may not park or block such areas at any time. Tenant shall at no time be obligated to facilitate any maintenance, improvements or other investment as may be required for the Movement Easement Areas. Landlord shall delineate the boundaries of the Movement Easement Areas within 90 days of the Effective Date. Base Rent: The Tenant will provide total annual Base Rent (which includes the Additional Rent for Parcel 5 as described above) totaling $497,221.08. Payments will be made in 12 equal monthly installments of $41,435.09 each. The adjusted Base Rent payments shall commence upon the Effective Date. Escalation: Base Rent shall increase based in accordance with the terms and conditions of the existing Agreement. Permitted Use(s): Tenant shall have the right to utilize Parcel 5 in accordance with the terms and conditions of the Agreement. Capital Improvements & Due Diligence: The Premises on Parcel 5 shall be delivered in an "As-Is" condition. Tenant shall have the option to perform any and all due diligence on the property and building on or before 90 days from the Effective Date. Tenant may, at Tenant's sole discretion, seek to terminate the Agreement with respect to the Additional Premises only within such 90 day period. Termination shall reduce the Base Rent by the same amount allocated to Parcel 5 as set forth above identified as Additional Rent, and Tenant shall have no further obligations to Landlord with respect to Parcel 5. As of the 91st calendar day following the Effective Date. Tenant shall no longer have the option to terminate Premises from the leasehold under the Agreement. The 3 06 All notices shall be deemed effective when in writing and personally delivered or deposited in the United States mail, express, priority, or first class, postage prepaid and addressed as above. Any notices addressed in any other fashion shall be deemed not given. Administrator and PSHS may mutually agree in writing to change the addresses to which notices are sent. 8. TERMINATION. 8.1 Termination of Agreement. The provisions of this Agreement shall terminate upon the expenditure of all principle and accrued interest of the Grant. 8.2 Termination by Both Parties. Notwithstanding the provisions of Section 8.1 above, this Agreement can terminate upon agreement of both City and PSHS. 8.3 Termination for Cause Due to Default of PSHS. City reserves the express right to terminate this Agreement for cause due to the default by PSHS in its performance obligations under this Agreement. City may in any notice of default advise PSHS it also intends to terminate the Agreement for cause. The notice of default from City shall advise PSHS if City intends to elect to terminate the Agreement and in this event PSHS shall immediately cease performance and provision of Services as of the date the notice of default is received or deemed received, whichever is earlier. 9. DEFAULT. Failure by PSHS to perform and/or comply with any provision, covenant, or condition of this Agreement shall be a default of this Agreement. In the event of default Administrator, in the Administrator's sole discretion, may avail on behalf of City any remedies available at law, in equity, or otherwise specified in this Agreement (including immediate termination for cause as set forth in Subsection 8.3 above) and may elect any of the following: 9.1 Afford PSHS a time period of fifteen (15) days from the date notice is mailed to cure the default, or to commence to cure the breach and diligently pursue to completion the cure of the breach within thirty(30) days of date notice is mailed; and/or 9.2 Request that PSHS immediately remit to City any remaining Grant funds, including principal and accrued interest. IN WITNESS, City and PSHS have executed this Agreement in the County of Riverside, State of California. City of Palm Springs Dated: By: David Ready, City Manager Palm Springs Historical Society Dated: By: Name, Title: environmental condition as of the Effective Date shall be benchmarked via a Phase 1 and/or Phase 2 environmental analysis and any pre-existing conditions shall not be the liability of Tenant. Tenant shall be responsible only for environmental conditions arising from and after the Effective Date. Should the Tenant discover any condition that requires mitigation and/or expense, the City shall have the right to terminate the Agreement as to Parcel 5 within 30 calendar days after the notice from the Tenant. Operating Costs/Taxes: As of the Effective Date, Tenant shall be responsible for the Operating Costs, Utilities, Maintenance Costs and Property Taxes (if any) for the Demised Premises and Additional Premises for the duration of the Term. 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 Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are dully 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 the Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which said Party is bound. (SIGNATURE PAGE FOLLOWS) 4 07 RESOLUTION NO. 15894 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACCEPTING A $250,000 GRAIBT FROM THE ' MCCALLUM DESERT FOUNDATION TO BE HELD AS A PERMANENT ENDOWMENT FOR THE PALM SPRINGS HISTORICAL SOCIETY. WHEREAS it is the intent of the Palm Springs City Council to preserve the McCallum Adobe, currently located at the Village Green, as an historical structure; and WIIEREAS, to help accomplish this goal the McCallum Desert Foundation has agreed to make a $250,000 grant to the City of Palm Springs as a permanent endowment: NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, that a $250,000 grant from the McCallum Desert Foundation is hereby accepted as a permanent endowment for the benefit of the Palm Springs Historical Society, subject to the following: Section 1. That the $250,000 grant is 'to be placed in a trust fund and invested by the City Treasurer in an investment vehicle authorized by Section 53600 of the Government Code. Safety of the principal ' will be the major factor considered when investing, as it is with City funds which are also covered by Section 53600. Section 2. That interest earned on the $250,000 endowment will be used only for purposes of funding the Palm Springs Historical Society's operating expenses for the Village Green and McCallum Adobe; and annually, each June, upon written request of the City Librarian to the City Treasurer, an amount necessary to cover such operating expenses, but not exceeding interest earnings, will be transferred to the Library Fiord from the trust fund. Section 3. That the principal can only be spent for historical preservation of the McCallum Adobe, currently located at the Village Green. If the McCallum Adobe is damaged beyond repair, the funds shall be used for preservation of other historic structures and sites in the City of Palm Springs through the Palm Springs Historical Society or its successor in interest. ADOPTED this nth DAY OF June Z'386. ' AYES: Councilmembers Apfelbauni, Birer, Foster and Smith NOES: None ABSENT: Mayor Bogert ATTEST: CITY OF PIA PM SPRINGS, CALIFORNIA By City Clerk Ci y Manager REVIEWED & APPROVED IN WITNESS WHEREOF, the Parties have executed and entered into this Agreement as of the date first written above. ATTEST: CITY OF PALM SPRING a municipal corporation By: By: City Clerk City Manager 7170 APPROVED AS TO FORM: By: City Attorney TENANT: Check one: Individual _ Partnership_Corporation 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. SIGNATURE FLIGHT SUPPORT CORPORATION SIGNATURE FLIGHT SUPPORT CORPORATION By: By: Signature (notarized) Signature (notarized) Name: Name: Title: Title: State of State of County of County of On before me, On before me, personally appeared personally appeared who proved to me on the basis of satisfactory who proved to me on basis of satisfactory evidence to be the person(s)whose name(s) evidence to be the person(s)whose name(s) is/are subscribed to the within instrument is/are subscribed to the within instrument and acknowledged to me that he/she/they and acknowledged to me that he/she/they executed the same in his/her/their authorized executed the same in his/her/their authorized capacity(ies), and that by his/her/their capacity(ies), and that by his/her/their signature(s)on the instrument the person(s), signatures(s) on the instrument the person(s) or the entity upon behalf of which the or the entity upon behalf of which the person(s) acted, executed the instrument. person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY I certify under PENALTY OF PERJURY under the laws of the State of California that under the laws of the State of California that the foregoing paragraph is true and correct. the foregoing paragraph is true and correct. WITNESS my hand and official seal. WITNESS my hand and official seal. Notary Signature: Notary Signature: Notary Seal: Notary Seal: 5 08