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HomeMy WebLinkAbout2006-06-07 STAFF REPORTS 2J O�Y p L/vl Sp4 i2 61 U V + x � °enoRnze°`A0 % 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. M f tj 1 EXHIBIT "A-2" EXCLUSIVE USE SPACE 181.5 SQ. FT. Shaded area represents area for wheelchair storage. 181.5 S.F. 0 c n