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cA`'F°aN�P CITY COUNCIL STAFF REPORT
DATE: JUNE 7, 2006 CONSENT CALENDAR
SUBJECT: AMENDMENT No. 1 TO NON-EXCLUSIVE OPERATING & LEASE
AGREEMENT NO. 5033 WITH SIERRA AVIATION GROUP, INC.
FROM: David H. Ready, City Manager
BY: Department of Aviation
SUMMARY
Airport staff is requesting approval to amend the current Sierra Aviation Group
agreement, retroactive to February 1, 2006, to delete the wheelchair storage area that
was returned to the original configuration as a stairway to improve passenger flow within
the airport terminal.
RECOMMENDATION:
1. Approve Minute Order No. , approving Amendment No. 1 to Non-
Exclusive Operating and Lease Agreement No. 5033 with Sierra Aviation
Group, Inc., effective February 1, 2006 and valid until January 31, 2008, to
delete the wheelchair storage space from the agreement.
2. Authorize the City Manager to execute all necessary documents.
STAFF ANALYSIS:
In order to improve passenger traffic flow within the ticketing terminal, the wheelchair
storage space was reconfigured back into a stairway on February 1, 2006. This area
was originally being used by Sierra to store wheelchairs. Sierra now does not need this
area.
At its regularly scheduled meeting on June 7, 2006, the Airport Commission
recommended City Council approve this amendment to the current lease agreement
with Sierra Aviation, Inc.
Item No. n . 1 .
City Council Staff Report
(June 7, 2006 -- Page 2
(Sierra Aviation A#1)
FISCAL IMPACT: Finance Director Review:
The requested amendment will delete 181.5 sq. ft, of storage space at $20.06 sf/annum.
This will incur an annual decrease of$3,640.89 in Airport revenues effective February 1,
2006.
David H. Ready, City pel Richard S. Walsh, A.A.E.
Director of Aviation
Attachments:
Minute Order
Amendment No. 1 to Non-Exclusive Operating and Lease Agreement
MINUTE ORDER NO.
APPROVE MINUTE ORDER NO.
APPROVING AMENDMENT NO. 1 TO NOW
EXCLUSIVE OPERATING AND LEASE
AGREEMENT NO. 5033 WITH SIERRA
AVIATION GROUP, INC. EFFECTIVE
FEBRUARY 1, 2006 AND VALID UNTIL
JANUARY 31, 2008, TO DELETE THE
WHEELCHAIR STORAGE SPACE FROM
THE AGREEMENT
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that
this Minute Order Approving Amendment 1 to Agreement No. 5033 with Sierra
Aviation Group, Inc. to delete the wheelchair storage space was adopted by the
City Council of the City of Palm Springs, California, in a meeting thereof held on
the 7th day of June, 2006
James Thompson, City Clerk
AMENDMENT NO. 1
TO
NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT
THIS AMENDMENT NO. 1 TO NON-EXCLUSIVE OPERATING AND LEASE
AGREEMENT ("Amendment No. 1") is made and entered into this _day of
, 2006, by and between the City of Palm Springs, a California charter city
("City"), and Sierra Aviation Group, a California corporation ("Tenant").
RECITALS
A. City and Tenant previously entered into a Non-Exclusive Operating and
Lease Agreement, dated February 3, 2005, the ("Agreement") for exclusive use space
at the Palm Springs International Airport.
B. City and Tenant now desire to amend the Agreement to eliminate the
wheelchair storage area (Exhibit "A-2" to the Agreement) as office space covered by the
Agreement and provide for an appropriate reduction in the monthly rental payments to
correspond to the reduction in total office space.
NOW, THEREFORE, in consideration of the mutual promises, covenants, and
conditions contained herein, and upon the terms and conditions hereinafter set forth, the
parties agree as follows:
AGREEMENT
Section 1: The "Monthly Rental" set forth in the Agreement is amended by deleting
the amounts associated with the wheelchair storage area and the provision is amended
to read:
Monthly Rental: Base Rental — 340 Sq. Ft. Exclusive Use Space at $25.79 per square
foot per annum = $8,768.60 per annum or $730.72 per month.
Section 2: The Office Space Location set forth in the Agreement is amended by
deleting reference to the wheelchair storage area and the provision is amended to read:
Office Space Location: Suite A-100 —As shown on Exhibit "A."
Section 3:
Except as expressly amended in this Amendment No. 1, all other provisions of
the Agreement shall remain in full force and effect.
215995.1 1
IN WITNESS WHEREOF, this Amendment No. 1 shall be effective as of
February 1, 2006.
"CITY"
CITY OF PALM SPRINGS
By:
David Ready, City Manager
ATTEST:
Jay Thompson, City Clerk
APPROVED AS TO FORM:
Douglas C. Holland, City Attorney
"TENANT"
Sierra Aviation Group
By:
Title:
By:
Title:
215996.1 2
EXHIBIT "A"
EXCLUSIVE USE SPACE
340 SQ. FT.
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EXHIBIT "A-2"
EXCLUSIVE USE SPACE
181.5 SQ. FT.
Shaded area represents
area for wheelchair storage.
181.5 S.F.
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