HomeMy WebLinkAbout2/2/2005 - STAFF REPORTS (18) DATE: February 2, 2005
TO: City Council
FROM: Director of Aviation
RECOMMENDATION:
It is recommended that the City Council approve a lease agreement between the City
of Palm Springs and Sierra Aviation Group,the company that provides porter services
for the airlines, for exclusive use space in the airport ticketing wing.
SUMMARY:
The requested action would allow Sierra Aviation to lease space at the Palm Springs
International Airport beginning February 3, 2005 for (3) years and terminated on
January 31, 2008 with two (1) one-year options.
BACKGROUND:
Sierra Aviation Group provides airline porter services at several southern California
airports in addition to Palm Springs International Airport. Sierra Aviation previously
leased exclusive use space in the airline ticketing wing under Agreement No. A4793.
A4793 had a provision which allowed the City to cancel the lease with Sierra Aviation
if a need arose to have this space available to an airline operator. On January 5,
2005, the City Council approved leasing this same exclusive use space to Harmony
Airways, a Canadian airline who is a new entrant in the Palm Springs market.
Previous to this approval, the City cancelled the existing month-to-month lease with
Sierra Aviation for this exclusive use space.
Airport staff has located sufficient lease space to accommodate Sierra Aviation in the
airline ticketing wing which will not impact any future airline operator's need to lease
exclusive use space.
The lease space consists of 340 sq.ft. Exclusive Use Conditioned Space @ $25.79
per sq.ft. per annum and 181.5 sq. ft. Storage Space at$20.06 per sq.ft. per annum.
The annual rent for these two areas will be$12,409.49 or$1,034.12 per month. The
attached Agreement is for a three (3)year term effective February 2, 2008, with two
(1) year renewal options.
The lease agreement is attached and has been approved as to form by the City
Attorney.
RICHARD S. WALSH
Director of Aviation
APPROVED:
City Manag,
b
Attachments: 1. Lease Agreement
2. Minute Order
NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT
For Exclusive Use Space
at
Palm Springs International Airport
GENERAL PROVISIONS
The City of Palm Springs, a municipal corporation ("City") hereby grants to the lessee
hereinafter named ('Tenant'), a license to operate out of a exclusive use space (as
hereinafter defined) at the location specified below at the Palm Springs International
Airport ("Airport') upon all of the terms and conditions contained in this Agreement. This
Agreement is subject to the following general provisions:
Operator: Sierra Aviation Group
Address: 2500 East Airport Drive, Suite 1312, Ontario, CA 91761
Phone: 909.937.2900 Fax: 909.937.8829
Email: sierraaviation(@,juno.com
Representative: James Mog, General Manager
Operator Use: Office Space - Airline Porter Services
Security Deposit: $1,000.00
Monthly Rental: Base Rental - 340 Sq.Ft. Exclusive Use Space at $25.79/SF/Annum
and 181.5 Sq.Ft. Storage Space at $20.06/SF/Annum = $12,409.49
per annum or $1,034.12 per month.
Commencement Date: February 3, 2005
Term: Month to Month - Not to exceed five years.
City Business License #:
Hours of Operation: Seven days a week from 0500 - 0100.
Office Space Location: Suite A-100 —As shown on Exhibit "A" and wheelchair
storage area as shown on Exhibit"A-2"
TERMS & CONDITIONS
1. The term"Office Space Location"shall mean office space for use by Operator licensed
as operator providing airline porter services to airlines serving the Palm Springs
International Airport pursuant to this Agreement.
2. Additional space adjacent to"Office Space Location"may not be used by Operator for
any purpose without advance written approval from the Director of Aviation.
3. The Operator will not change hours or days of operation specified herein without prior
written approval from the Director of Aviation except during periods of extreme weather
conditions.
4. The Operator shall be responsible for all services provided by its personnel and shall
be responsible for properly securing "Office Space Location" and all items stored in
Operators space.
5. No changes or alterations shall be made to"Office Space Location", including physical
appearance or operational qualities of"Office Space Location"without prior written approval
from the Director of Aviation.
6. The Operator shall keep "Office Space Location" in excellent physical / operating
condition during the Agreement term. The Operator shall inspect"Office Space Location"
on a daily basis with respect to its cleanliness, operation, physical appearance, and
function. If repairs or maintenance are necessary, Operator shall immediately advise the
Airport Operations Center. The Operator shall be responsible for the cost of all
maintenance and/or repairs to damage to"Office Space Location"as a result of negligence
on the part of the Operator, its employees or agents.
7. The operations of the Operator, its employees, invitees and those doing business with
it shall be conducted in an orderly and proper manner so as not to annoy, disturb or be
offensive to others at the Airport. The City shall have the right to object to the Operator
regarding the demeanor, conduct and appearance of the Operator's employees, invitees
and those doing business with it, whereupon the Operator will take steps necessary to
remove the cause of the objection.
8. Per Title 49, Code of Federal Regulations (CFR), Part 1542 every Sterile Area Worker
(SAW)or workers requiring Security Identification Display Area (SIDA)badges must have
successfully completed a fingerprint-based Criminal History Records Check (CHRC).
9. In the use of the parkways, roads, streets, corridors, hallways, stairs and other
common areas of the Airport as a means of ingress and egress to, from and about the
Airport,and also in the use of portions of the Airport to which the general public is admitted,
the Operator shall conform and shall require its employees, invitees and others doing
V
business with it to conform to the Rules and Regulations of the Airport which are now in
effect or which may hereafter be adopted for the safe and efficient operation of the Airport.
10. The Operator, its employees, invitees and others doing business with it shall have no
right hereunder to park vehicles at the Airport Terminal. Parking is via permit only in the
Employee Parking Lot. Parking forthe loading/unloading of equipment or supplies must be
coordinated through the Airport Ground Transportation Center.
11. The Operator agrees to operate its business as a commercial Operator at the Airport
for the use and benefit of the public; to make available all facilities and services to the
public, without unjust discrimination; and to refrain from imposing or levying excessive,
discriminatory, or otherwise unreasonable charges or fees.
12. The Operator shall maintain during the term of the Agreement comprehensive general
liability insurance in a form and content satisfactory to the City written on a per occurrence
basis in an amount not less than $100,000 per person, $300,000 per occurrence,$50,000
property damage or a combined single limit of$300,000. Said policy shall name the City
and its officers, agents and employees as additional insured's. The Operator shall deliver
certificates of insurance evidencing the coverage required herein.
13. The Operator shall maintain fire and extended coverage insurance written on a per
occurrence basis on its improvements appurtenances, alterations, trade fixtures,
equipment, personal property and inventory within "Office Space Location" from loss or
damage to the extent of their full replacement value. Operator shall have the right to self-
insure the items so long as Operator maintains a networth satisfactory to the City. The City
may require net worth documentation up to and including an audited financial statement.
14. The Operator shall maintain a policy of worker's compensation insurance in an amount
as willfully comply with the laws of the State of California and which shall indemnify, insure
and provide legal defense for both the Operator and the City against any loss, claim or
damage arising from any injuries or occupational diseases occurring to any worker
employed by or any persons retained by the Operator in the course of conducting
Operator's business in or about "Office Space Location" and airport premises.
15. All of the policies of insurance required to be procured by Operator pursuant to the
Terms and Conditions herein shall be primary insurance and shall name the City, its
officers, employees and agents as additional insureds. The insurers shall waive all rights
of contribution they may have against the City, its officers, employees and agents and their
respective insurers.All of said policies of insurance shall provide that said insurance may
not be amended or canceled without providing 30 days priorwritten notice by certified mail
to the City. Prior to the effective date of this Agreement and at least 30 days prior to the
expiration of any insurance policy, Operator shall provide Citywith certificates of insurance
or appropriate insurance binders evidencing the above insurance coverage's written by
insurance companies acceptable to City, licensed to do business in the state where the
-3-
"Office Space Location" is located and rated AM or better by Best's Insurance Guide. In
the event the City determines that(i)the Operator's activities at the"Office Space Location"
create an increased or decreased risk of loss to the City, (ii) greater insurance coverage
is required due to the passage of time, or (iii) changes in the industry require different
coverage's be obtained, Operator agrees that the minimum limits of any insurance policy
required to be obtained by Operator may be changed accordingly upon receipt of written
notice from the City; provided that Operator shall have the right to appeal a determination
of increased coverage by the City to the City Council of City within ten (10)days of receipt
of notice from the City.
16. The Operator, as a material part of the consideration to be rendered to City under this
Agreement, hereby waives all claims against city for damages to equipment or other
personal property, trade fixtures, or improvements in, upon or about "Office Space
Location" and for injuries to persons in or about "Office Space Location" from any cause
arising at any time. The Operator agrees to indemnify the City, its officers, agents and
employees against, and will hold each of them harmless from, any and all actions, suits,
claims, damages to persons or property, losses, costs, penalties, obligations, errors,
omissions or liabilities that may be asserted or claimed by any person,firm or entity arising
out of in connection with the negligent performance of the work, operations, or activities of
Operator, its agents,employees, subcontractors,or invitees, provided for herein,or arising
from the use of "Office Space Location" by Operator or its employees and customers, or
arising from the failure of Operator to keep "Office Space Location" in good condition and
repair, as herein provided, or arising from the negligent acts or omissions of Operator
hereunder, whether or not there is concurrent passive or active negligence on the part of
the City, its officers, agents or employees but excluding such claims or liabilities arising
from the sole negligence or willful misconduct of the City, its officers, agents or employees,
who are directly responsible to the City, and in connection therewith:
(a) Operator will defend any action or actions filed in connection with any of said
claims or liabilities and will pay all costs and expenses, including legal costs and
attorney fees incurred in connection therewith;
(b) Operator will promptly pay any judgment rendered against the City, its officers,
agents or employees for any such claims or liabilities arising out of or in
connection with the negligent performance of or failure to perform such work,
operations or activities of Operator hereunder; and Operator agrees to save and
hold the City, its officers, agents, and employees harmless therefrom;
(c) In the event the City, its officers, agents or employees are made a party to any
action or proceeding filed or prosecuted against Operator for such damages or
other claims arising out of or in connection with the negligent performance of or
failure to perform thework,operation oractivities of Operator hereunder, Operator
agrees to pay to the City, its officers, agents or employees, any and all costs and
expenses incurred by the City, its officers, agents or employees in such action or
proceeding, including, but not limited to legal costs and attorney fees.
17. The parties hereto agree that the State of California is the proper jurisdiction for
litigation of any matters relating to this Agreement, and service mailed to the address of
Operator set forth herein shall be adequate service for such litigation. The parties further
agree that Riverside County, California is the proper place for venue as to any such
litigation and Operator agrees to submit to the personal jurisdiction of such court in the
event of such litigation.
18. The Operator for itself, its successors in interest and assigns, as a part of the
consideration hereof,does herebycovenant and agrees that itshall not discriminate on the
basis of race,color, national origin,or sex in the performance of this,contract.The Operator
shall carry out applicable requirements of 49 CFR part 26 in the award and administration
of DOT-FAA-AIP assisted contracts. Failure by the Operator to carry out these
requirements is a material breach of this contract, which may result in the termination of
this contract or such other remedy, as the City deems appropriate.
19. Any notice given under the provisions of the Agreements shall be in writing and shall
be delivered personally or sent by certified or registered mail, postage prepaid addressed
to Operator at the address set forth on page 1 of this Agreement and the City as follows:
Director of Aviation
Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite OFC.
Palm Springs, CA 92262
20. The Operator shall promptly repair or replace any property of the Airport damaged by
the Operator's operations hereunder. The Operator shall not install any fixtures or make
any alterations or improvements in or additions or repairs to"Office Space Location"or any
property of the Airport except with prior written approval of the Director of Aviation.
21. The City shall have the right at any time and as often as it may consider it necessary
to inspect the Operator's operations and / or services being rendered, any activities or
operations of the Operator hereunder. Upon request of the City,the Operatorshall operate
or demonstrate any displays owned by or in the possession of the Operator at the Airport
or to be placed or brought on the Airport premises, and shall demonstrate any process or
other activity being carried on by the Operator hereunder at the Airport. Upon notification
of the City of any deficiency in any operation, the Operator shall immediately make good
the deficiency or withdraw the machine or piece of equipment from service, and provide a
satisfactory substitute.
22. No signs, posters or similar devices shall be erected, displayed or maintained by the
Operator in view of the general public without advance written approval of the Director of
Aviation. Any unapproved signage may by removed by the Airport at the expense of the
-s-
\O�N
Operator.
23. The Operator's representative herein before specified for such substitute as the
Operator may hereafter designate in writing, shall have full authority to act for the Operator
in connection with this Agreement, and to do any act or thing to be done hereunder, and
to execute on behalf of the Operator any amendments or supplements to this Agreement
or any extension thereof, and to give and receive notices hereunder.
24. For the rights and privileges set forth herein,the Operator shall pay in advance,without
deduction or offset, the City the monthly amount shown on page 1 of this Agreement. Said
amount shall be remitted to the City on the first day of each month for each month the
Operatorshall be operating"Office Space Location"at the Airport. For anyperiod lessthan
a full month, the Operator's fee shall be prorated.
25. The Operator acknowledges that any payment to be paid by Operator not paid within
five (5) days of its due date shall be subject to a five (5%) late charge.
26. The Operator shall provide a security deposit. Said deposit shall be paid at the time of
the Agreement issuance. Upon termination of the Agreement and provided that all amounts
due the Airport are paid, and "Office Space Location" has been returned to the Airport in
the same condition as received by the Operator, subject to normal wear-and-tear and
exposure to weather conditions,the deposit shall be returned to Operator. In the event fees
are not paid or if"Office Space Location" is damaged, City shall have the right, but not the
obligation to draw upon the deposit to cover said costs. Upon the termination of the
Agreement any balance of the deposit not drawn against shall be paid to the Operator.
27. Operator shall comply with all of the requirements of all municipal, state and federal
authorities not in force or which may hereafter be in force pertaining to the use of"Office
Space Location" and the operations of Operator at the Airport.
28. Operator agrees to pay prior to delinquency all lawful taxes and assessments which
during the term hereof or any extension may become a lien or which may be levied by the
state, county, city, or any other tax-levying body, upon"Office Space Location"or upon any
taxable interest of Operator acquired under this Agreement, or any taxable possessory
interest which Operator may have in or to "Office Space Location" or by reason of its
occupancy thereof or operations thereon, as well as all taxable property, real or personal,
owned by Operator in or about"Office Space Location".Operator specifically acknowledges
thatthe interest granted underthis Agreement may be subject to possessory interest taxes.
Upon making such payments, and upon request by the City, Operator shall provide the City
a copy of the paid receipts and vouchers showing such payment. With respect to
assessments for improvements which are or may be payable in installments,Operator shall
either pay the lump sum tax due or pay the installment portions as they become due. Even
though the term of this Agreement has expired, when final determinations is made of
Operator's share of such taxes and assessments, Operator shall immediately pay to city
\10�
the amount of any additional sum owed.
29. Operator shall provide a complete and proper arrangement for the adequate sanitary
handling of all trash and other refuse caused as a result of the operation of"Office Space
Location" and shall provide for its timely removal to the central collection point to be
provided by the City.Operator shall provide and use suitable covered fireproof receptacles,
for all trash and other refuse on or in connection with "Office Space Location". Piling of
boxes, cartons, barrels, or other similar items in view of a public area shall not be
permitted.
30. In transporting merchandise, products,trash,and refuse associated with the operation
of "Office Space Location" to and from "Office Space Location", Operator shall use only
carts, vehicles, or conveyances that are sealed and leak proof.
31. Operator shall not assign this Agreement or sublet "Office Space Location" or any
interest therein, without the prior written consent of the City. Any assignment or subletting
without the consent of the City shall be void and constitute an incurable default hereunder.
32. This Agreement is a month-to-month lease, which may be terminated without cause
by either party at any time before the end of the term by giving written notice to the other
party not less than thirty(30)days prior to the requested termination date. In the event that
upon a termination of Operator's right to possession or upon the termination or expiration
of this Agreement Operator fails to remove from the "Office Space Location" any of its
property located thereon,which Operator is entitled or required to remove pursuant to the
terms of this lease,the City shall not be responsible forthe care orsafekeeping thereof and
may remove any of the same from "Office Space Location" and place the same in storage
in a public warehouse at the cost, expense and risk of Operator with authority to the
warehouseman to sell the same in the event that Operator shall fail to pay the cost of
transportation and storage, all in accordance with the rules and regulations applicable to
the operation of a public warehouseman's business.
33. The occurrence of any one or more of the following events shall constitute a default
and breach of the Agreement by Operator: (a)the failure to pay any rental orother payment
required hereunder to or on behalf of the City more than three (3)days after written notice
from City to Operator that Operator has failed to pay rent when due; (b) the failure to
perform any of Operator's obligations hereunder (exclusive of a default in the payment of
money)where such default shall continue for a period of thirty(30)days afterwritten notice
thereof from City to Operator which notice shall be deemed to be the statutory notice so
long as such notice complies with statutory requirements; (c)failure of Operator to operate
in "Office Space Location" for three (3) or more consecutive days or for a total of five (5)
days during any thirty (30) day period (September through June); (d) the making by
Operator of a general assignment for the benefit of creditors; (e) filing by Operator of a
voluntary petition in bankruptcy or the adjudication of Operator as bankrupt; (f) the
appointment of a receiver to take possession of all or substantially all the assets of
Operator located at the Airport or of Operator's interest in"Office Space Location"; (g)the
filing by any creditor of Operator of an involuntary petition in bankruptcy which is not
dismissed within sixty (60) days. In the event of any such default or breach by Operator,
City shall have the right at any time thereafter to elect to terminate the Agreement and
Operator's right to possession hereunder.
34. Operator hereby acknowledges and agrees that the Agreement herein granted is not
an exclusive lease and the City shall have the right to deal with and perfect arrangements
with any otherindividual or individuals,company or corporation to engage in a like Operator
activity at the Airport. In the event that nay contract granted by the city to any other like
Operator shall contain any provisions more favorable to such Operator than the terms
herein granted,then,at the option of Operator which option shall be exercised by providing
written notice to City within thirty (30) days of the date Operator receives notice of such
more favorable provision,this Agreement shall be amended to include such more favorable
terms and any off-setting burdens that may be imposed on any such other like Operator.
The intent of this provision is to ensure that Operator is competing on as equal of terms as
possible with any additional Operator and, as a result, no other Operator shall enjoy any
rights, profits or conditions more favorable to such Operator than those enjoyed by
Operator.
35. The Operator, its agents and employees shall conduct and maintain a friendly,
cooperative though competitive relationship with its competitors operating on the Airport.
Operator shall not engage in open, notorious and public disputes, disagreements or
conflicts tending to deteriorate the quality of service of its competitors or be incompatible
to the best interest of the public at the Airport. The City shall have the right to resolve all
such disputes, disagreements, or conflicts and its determination shall be final.
36. This Agreement covers in full each and every agreement of every kind or nature
whatsoever between the parties hereto concerning this Agreement, supersedes any and
all previous negotiations,agreements and understandings, if any, between the parties,oral
or written, and merges all preliminary negotiations and agreements of whatsoever kind or
nature herein. Operator acknowledges that City or its agents or representatives have made
no representations or warranties of any kind or nature not specifically set forth herein.
g_ 0\
\42V
1/20/2005 12- 313 FAX 849 220 1180 ALESHIRE & WYNDER, LLP ZM/003
IN WITNESS WHEREOF, the parties have executed and ie,)tored into this Agreement
as of the date first written above,
CITY OF PAILIM SPRINGS
AT I-ESF: -,I finuria;fp'll cc.rporatiotf
By:.. . _.......... By: --- — ----- ----------
City Clerk City Manager
APPROVED AS 10 F3)li7!'e l
1—t j
City Allomey
CONTRACTOR: Check oric:_J11diV!dLU'll_Pailnership,, Corporation
uory'Oihho"'a#µd«y Iwo..o1'16j.inl ljjlnnlijrxl;i. One:110i,Oot,h lif thin rallowinn. A. �h;lirniari of[bird. President,or any Vlct!
Pros!a on E:AND 8. So C I et.aj y,A+-1 I law Am loway, Ntt)!;I I'C',Al;''Orlh I (I Ow,it I Ol, Mf Chk!f$"ir'.0hi I Mficcr)
................ .......... .......... BY: .........
sign
ature(notorizud) signature(notari2erj)
Name: Nrimo,
Title. Title:.......... . ......
................
if:ou'llyof Cel"'lly W SS
all bV I Ul L,rio, Cal till It,ll ill .......
porsunilly Oplan"oul ---———————————— privaoriolly appoi roil --------
bomorway itnown to hill(or pf(i,tod t.inn...l kill,llo;;is of personally know?,to a)(,. (al,J"uVhd In reel an tkil,tlabp;ul
l;aLlsiviotory oviiiiiii,l)ill no lho romonti,)wal)SO 11,foclary OVcc nuo)to be this peso*,)whceiz infae(s)
is/are jobscribed to ill,,withill iriam non i deli oa,,owaxiood i,.j...0 In it,wilmh inniglmont and acknowledged
In nt v, laol holzitlaincy executed the sania all In i", I hoh,i l(it h"y"Xot; all till,n, l-in h kdh,-11 ho i r
IlLlihorizod captif-ay(iiii),and ihoi by signature(9) Mjn;;)'unit MAI hy
all i lit)i i trithill ill ilw borw fa), oe vit! al ity tflirl beho if of on the in"tfunlon:the, bOfSufl(-').of U.......lily Op"'i 1...,all"I
Which a... parsol(n) "Jud,liv)(�Wlvf 01(1 la"Uuniont. whicia IN, person(:)acted,oxocutod the ristlUahofil
WIFN;5'5 My hand and official deal VVI rlrlESS Iny hand.],Ill 011icits;hl)'A
Notary SignatureNotary SignitUre:
........... --- — ------
Notary seal: NQI,,ajy Sailil:
EXHIBIT "A"
EXCLUSIVE USE SPACE
340 SQ. FT.
LU
c
JI
EXHIBIT "A-2"
EXCLUSIVE USE SPACE
181.5 SQ. FT.
Shaded area represents
area for wheelchair storage.
181.5 S.F.
--------------
I C
II CI C
nb a �—nI
i I J
c � i
MINUTE ORDER NO.
APPROVING A LEASE AGREEMENT
BETWEEN THE CITY OF PALM SPRINGS
AND SIERRA AVIATION GROUP FOR
LEASE SPACE AT THE PALM SPRINGS
INTERNATIONAL AIRPORT
I HEREBY CERTIFY that this Minute Order approving a lease agreement
between the City of Palm Springs and Sierra Aviation Group was adopted by the
City Council of the City of Palm Springs, California in a meeting thereof held on
February 2, 2005.
JAMES THOMPSON
City Clerk