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HomeMy WebLinkAbout2/2/2005 - STAFF REPORTS (4) RESOLUTION NO. RESOLUTION PROCLAIMING TERMINATION OFLOCALEMERGENCY WHEREAS, a local emergency existed in the City of Palm Springs in accordance with the resolution thereof by the Director of Emergency Services on the 29th day of December, 2004, and its ratification by the City Council on the 5th day of January, 2005, as a result of conditions of extreme peril to the safety of person and property caused by excessive rainfall and prolonged flash flooding; and WHEREAS, the situation resulting from said conditions of extreme peril is now deemed to be within the control of the normal protective services, personnel, equipment and facilities of and within the City of Palm Springs; NOW, THEREFORE, the City council of the City of Palm Springs, State of California, does hereby proclaim the termination of said local emergency. Adopted this 2nd day of February, 2005 AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CA BY: � b DATE: February 2, 2005 TO: City Council FROM: Director of Aviation AMENDMENT NO. 2 TO PALM SPRINGS AIR MUSEUM, INC., A3613 RECOMMENDATION: It is recommended that the City Council approve Amendment No. 2 to Palm Springs Air Museum A3613 modifying the lease to add parcels 134 and 135 providing approximately 9 additional acres to the current 10.44 acre leasehold for the purpose of constructing additional customer vehicle parking and a new educational facility in support of its non- profit operation in a form acceptable to the City Attorney and subject to final approval of the Federal Aviation Administration (FAA). BACKGROUND: The Palm Springs Air Museum is a stellar, nationally known non-profit aviation museum which has seen a continual increase in visitor activity since its inception. The Air Museum has outgrown its current facilities and available parking space and has, on occasion, had to turn away visitors on busy program days. The expansion of the Palm Springs Air Museum is being proposed as a two-stage project: 1. The first stage is to increase parking area for visitors. This is projected to increase overall attendance by 20%. Approximately 80% of visitors to the Air Museum are from out of the desert area and an estimated 50% of these visitors stay in local hotels/condos. These visitors also help the local economy by patronizing restaurants and retail businesses. This equates to substantial income for the City of Palm Springs from sales and TOT tax. 2. The second stage involves the construction of an educational facility/aircraft hangar in an effort to continue the Air Museum's educational focus on our patriotic history and to continue its mission to honor our Veterans. Historically, aviation museums promote and encourage the development of civil aeronautics. This is especially true for the Palm Springs Air Museum since it is not merely a static-display museum, but actually has a full complement of fully operational aircraft. Additionally, special events promoted by the Air Museum help generate additional general aviation traffic which, in turn, means additional revenue to the fixed base operators on the Airport. Recent surveys conducted by the Air Museum indicated that the demographics of visitors is changing. Currently, the average age of visitors to the Air Museum ranges between 55 and 70 years of age. Additional space, provided for under this amendment, will allow the Air Museum to add contemporary aircraft, which will move the Amendment No. 2 Air Museum February 2, 2005 Page 2 exhibits/displays into the Korea and Viet Nam era. This alone will attract a younger audience and add to annual revenue streams. Below is a summary of the Air Museums Use Tax Rental paid to the City/Airport: Palm Springs Air Museum City of Palm S rin s Use Tax/Rental Fiscal Year Total 1996 $0.00 1997 $23,693.14 1998 $20,020.51 1999 $24,952.83 2000 $27,489.74 2001 $28,604.87 2002 $29,941.54 2003 $27,746.58 2004 $28,641.96 Total $211,091.17 It is important to note that this revenue source is consistent with appropriate land use development which supports the Airport's ability to be self-sustaining. With record passenger levels occurring in 2004 and anticipated in 2005, the Palm Springs International Airport is working diligentlyto promote tourism for the City of Palm Springs and other Desert Resort communities. Through these partnerships, and through the development of tourist related attractions,the desert resort communities will continue to reap direct and indirect economic benefits to the local economy. The FAA's policy concerning the use of airport revenue permits airport operators to charge reduced rental rates and fees, including nominal rates, to non-profit aviation museums, to the extent that the reduction is reasonably justified by the tangible and intangible benefits to the airport or civil aviation. Response from the FAA in a letter (attached) dated October 19, 1994 verifies the Airport's efforts to ensure lease compliance with FAA standards during the implementation process. Resolution 93-01 Findings of Benefits were previously shown to be consistent with FAA policy concerning the use of airport revenue. These FAA approved provisions confirmed reasonable and consistent benefits that were to be, and have been, derived from this aeronautical use in regard to airport land. Amendment No. 2 (attached) hereby amends A3613 to allow inclusion of Parcels 134 and 135 as they appear on the Palm Springs International Airport East Landside Drawing (Sheet 10 of 12 attached) prepared by Coffman Associates and dated July 2, 2003. Parcel dimensions are as follows: PARCEL #134 = 4 Acre parcel (174,240 sq. ft.) �� Amendment No. 2 Air Museum February 2, 2005 Page 3 PARCEL#135 = 5 Acre parcel (217,800 sq. ft.) The Palm Springs Airport Commission is in support of the Air Museum's expansion, and recommends approval of Amendment No. 2 to lease agreement A3613. < Richard Walsh, Director of Aviation APPROVED'"< City Manager Attachments: 1. Minute Order 2. Amendment No. 2 3. FAA Letter 4. Airport East Landside Drawing CADocuments and Settings\DavidR\Local Settings\Temporary Internet Files\01-K268\Airport Museum—Amendment No 2_020504.wpd U.S.Departrnent Western Pacific Region P.O. Box 92007 of Transportation Worldway Postal Center Los Angeles.CA 90009 Federal Aviation Administration p OCT 1 9 1934 0 C i 24 1994 Mr. Allen F. Smoot, A.A.E. DEPARTMENT OF Director of Aviation AVIATION City of Palm Springs P. O. Box 2743 Palm Springs, California 92263-2743 Dear Mr. Smoot: This is in response to your letter dated Septerher 30, 1994, submitting a proposal to rent airport land for an Air Museum. We have reviewed the terms and conditions of Resolution No. 18475 and have no ob'ectio�ns to the city entering into a lease aareenent for the operation— oot an at masetmm, subject to those terms and conditions. tional y, a proposed revenue structure and benefits to be derived appear reasonable and consistent with FAA Policy on Aeronautical Use of airport land. The lease must contain the provisions contained in the enclosed lease and Use Agreement Guide. Please submit a copy of the lease for our review prior to its execution. Sincerely,(' -obc. Enclosure a � M / If ° is -- = OLI 11 _ -- "--- _ FxIsmNG BuaolNas/FAcwrEs —_-_______s, ___�_—__—____ — Is :r uxuunwra xunn n.nav .a amnn uwrzvisu zv�w ------- -�- - I TIMATE BULGINGS/FACILITIES \— � 4F LEGEND r uvax nru:m r.a�v. � ry .rvnox reru:ea nrue ' .:° .r�na.x.uua nzauz �:� .w.�ax wuro nava Ts/ ^a � � ff \ In � \ y(_ U— i 1` �i� _r\J L �I 3 ��x� ,�III PALM SPRINGS INTERN s LL_ / =`_ �, y .;a =o EAST LANDSIDE DRAWING PALM 9PFLNG3.c OPMA 12 17soelale>r Palm Springs International Airport 1/26/2005 PALM SPRINGS AIR MUSEUM Fees paid to Airport by Fiscal Year FY 1999 $21,436 FY 2000 $30,205 FY 2001 $27,006 FY 2002 $29,227 FY 2003 $26,547 FY 2004 $31,542 YTD 2005 $12,280 TOTAL $178,243 3. RENTAL. 3.1 Rental/Compensation, Tenant shall pay to Landlord,or perform on behalf of Landlord, the rental and other consideration set forth on Exhibit "D". All rentals to be paid by Tenant to Landlord shall be in lawful money of the United States of America and shall be paid without deduction or offset, prior notice or demand at the address designated in Section 13.10 hereof. 3.2 Percentage Rental. (a) In addition to the Monthly Rental hereinabove agreed to be paid by Tenant,Tenant shall and will pay to Landlord at the time and in the manner herein specified as additional rental (sometimes referred to herein as "percentage rental") a sum equal to the following: (i) The product of three percent(3%)times the gross sales made in, upon or from the Demised Premises with respect to any gift shop sales. Oil The product of ten percent(10%)times the gross sales made in, upon or from the Demised Premises with respect to any food and beverage sales. (b) Within fifteen 05)days after the end of each calendar month of the term hereof, commencing with the fifteenth (15th) day of the month following the Commencement Date, and ending with the fifteenth (15th) day of the month next succeeding the last month of the Lease term, Tenant shall furnish to Landlord a statement in writing, certified by Tenant to be correct, showing the total gross sales made in, upon, or from the Demised Premises during,the preceding calendar month relating to such gift shop and food and beverage shales (or fractional month at the beginning of the term if the Commencement Date is other than the first day of a month), and shall accompany each such statement with a payment to Landlord equal to said percentage of such total monthly gross sales made in, upon, or from the Demised Premises during each calendar month. (c) The term "gross sales" as used herein means the total gross receipts, including the actual charges for all services performed by Tenant and fees charged by Tenant and by anyone including any subtenant, licensee or concessionaire in, at, from, or arising out of the use of the Demised Premises, whethei wholesale or retail, whether for cash or credit,or otherwise, and including the value of all consideration other than money received for any of `the foregoing, without reserve or deduction for inability or failure to collect, including, but not limited to sales, related to said gift shop and,any food and beverage.sales related hereto. Each installment or credit sale shall be treated as a sale for the full price in the month during which such sale is made, irrespective of whether or when Tenant receives payment therefor. Gross Sales shall not include sales taxes, so-called luxury taxes, consumers excise taxes, gross receipts taxes and other similar taxes now or hereafter Imposed upon,the sale of merchandise or services, but only if collected separately from the selling price of merchandise or services and collected from customers. (d) The Tenant shall keep at the Demised Premises (and shall require any permitted subtenant to keep at the Demised Premises) full, complete and proper books, records and accounts of its daily gross sales, both for cash and on credit, at any time operated in the Demised Premises. The Landlord and its agents and employees shall have the right at any and all times, during regular business hours, to examine and inspect all of the books and records of the Tenant, including any sales tax reports pertaining to the business of the Tenant conducted in, upon, or from the Demised Premises, for the purpose of investigating and, verifying the accuracy of any statement of gross sales and to cause an audit of the business of Tenant to be made by a certified public accountant of Landlord's selection. If the statement of gross sales previously made to Landlord shall be found to be inaccurate, then and in that event, there shall be an adjustment and one party shall pay to the other on demand such sums as may be necessary to settle in full the accurate amount of said percentage rental that should have been paid to Landlord for the period or periods covered by such inaccurate statement or statements. If said audit shall disclose an inaccuracy of greater than three percent (3%) error with.respect to the amount of gross sales reported by Tenant for the period of said report, then Palm Springs Air Museum Agreement Page 4 V4, Rental obligations of the Tenant shall include, but not be limited to the - llfollowing 1 Admissions Fee: Tenant shall pay to Landlord 250 per each paid admission to the Demised Premises; remittance shall be as per Section 3.2(b). Tenant shall charge admission to the Museum located on the Demised Premises. 2. Volunteer Work: Museum and Civil Air Patrol volunteers shall provide 250 manhours per year of volunteer work for the Airport. Said work to be approved ahead of time. Work completed shall be accounted for on a quarterly basis and reported to the Landlord on mutually agreeable reporting forms. 3. Airport Beacon: The Tenant shall be responsible for providing suitable mounting for the Airport's beacon on the museum roof, and shall provide appropriate conduit runs and electrical capacity in the electric panel to operate the beacon. Landlord shall have the right to relocate the beacon to the museum roof at Landlord's sole cost and expense. If and when the Landlord relocates the beacon to the museum roof, the Tenant shall thereafter pay all electrical charges to operate the beacon. 4. Brochure Advertising: All advertising material distributed shall include Airport acknowledgement, advertising and Landlord's logo. Said acknowledgment, and advertising and logo shall be approved by the Director of Aviation prior to usage. This shall also"I nclude mailing of airport information, provided by the Airport, along with regular Museum mailings, so long as postage is not adversely affected. 5. Filming Fees: Should commercial filming occur on the museum site, the Tenant shall guarantee that all filming fees due the Landlord, as listed:in the City's Comprehensive Fee Schedule, shall be paid. Tenant shall use its best efforts to market the Demised Premises and the Airport as a filming destination. 6. Frontage Maintenance: Tenant shall be required to maintain the landscaped frontage road area along the entire width of the Demised Premises including water and electricity. - Said maintenance shall meet the same quality standard as the loop road area of the main Airport Terminal. AMENDMENT NO. 2 AGREEMENT NO. A3613 —AIR MUSEUM LEASE RECITALS A. The Palm Springs Air Museum desires to expand available parking for visitors to the Museum and to construct an educational facility and hanger and requires additional property to accommodate these additional facilities. B. The City of Palm Springs is willing to include additional real property to the existing leasehold property to facilitate the expansion of the Palm Springs Air Museum operation. AGREEMENT THIS SECOND AMENDMENT ("Amendment") to Lease Agreement No. A3613, as amended, ("Agreement") is made and entered into on this _ day of January, 2005, by and between the City of Palm Springs ("Landlord") and the Palm Springs Air Museum, Inc. ("Tenant"), as follows: 1. Section 1.1 of the Agreement, incorrectly numbered therein as Section "1 S.1" and correctly labeled as "Demised Premises," is amended to read: 1.1 Demised Premises. The "Demised Premises" shall refer to that certain real property located in the County of Riverside, State of California, as more particularly described in Exhibit "B" and Exhibit `B-1" hereof and as depicted on the Plot Plan attached as Exhibit"C"hereof. 2. Exhibit`13-1," attached to this Amendment, is made a part of the Agreement. 3. Exhibit "C" is amended as shown on the document labeled "Exhibit "C" to this Amendment. 4. Except as specifically amended in this Amendment, all of the terns and conditions of the Agreement shall remain in full force and effect. 5. This Amendment No. 2 shall become operative and in full force and effect upon City receipt of the Federal Aviation Administration approval of this Amendment No. 2. U40O IN WITNESS WHEREOF, the parties have executed and entered into this Amendment as of the date provided above. ATTEST: CITY OF PALM SPRINGS A California Charter City City Clerk City Manager Approved as to Form: City Attorney PALM SPRINGS AIR MUSEUM, INC. A California Non-Profit Corporation Signature Print Name and Title Signature Print Name mid Title MINUTE ORDER NO: APPROVING AMENDMENT NO. 2 TO AGREEMENT NO. A3613 WITH THE PALM SPRINGS AIR MUSEUM FOR PARCEL NO.'S 134 AND 135 ADDING 9 ACRES TO THE LEASEHOLD IN A FORM ACCEPTABLE TO THE CITY ATTORNEY AND SUBJECT TO FINAL APPROVAL BY THE FEDERAL AVIATION ADMINISTRATION. I HEREBY CERTIFY that this Minute Order, approving Amendment No. 2 to Agreement No. A3613 with the Palm Springs Air Museum for Parcel No.'s 134 and 135 adding 9 acres to the leasehold in a form acceptable to the City Attorney and subject to final approval by the Federal Aviation Administration, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 2nd day of February, 2005. JAMES THOMPSON City Clerk � h DATE: February 2, 2005 TO: City Council FROM: Director of Public Works/City Engineer 2004/2005 ANNUAL SLURRY SEAL RECOMMENDATION: It is recommended that the City Council approve and adopt the specifications, and authorize advertisement for construction bids for the 2004/2005 Annual Slurry Seal, City Project 05-02. SUMMARY: Section 7.03.040 of the Procurement and Contracting Code requires that Council approve and adopt plans, specifications and working details, and authorize the bid request for all public projects in excess of $100,000. Approval of this project will allow staff to proceed with this public project, with an estimated cost of$747,000. BACKGROUND: The Public Works Department oversees the maintenance of the City's street system. Each year, the Department assembles a capital project to continue its Slurry Seal Program on various City streets. This year's slurry seal program, is scheduled to include Alejo Road and Avenida Caballeros located within Section 14 (which were unable to be slurried in last year's project due to funding constraints), as well as all of the streets within Sections 1, 6, 7, 27, 34 (north Palm Springs) and 35 (north Palm Springs). Additionally, we are scheduling a slurry seal of Ramon Road from Sunrise Way to El Cielo Road, and between Belardo Road and Indian Canyon Drive; and Sunrise Way between Vista Chino and San Rafael Road, and between East Palm Canyon Drive and Ramon Road. Provided slurry seal prices do not exceed the engineer's estimate, we are scheduling slurry seal of over 6,700,000 square feet of City streets this year. A final component has been added to this project, consisting of installing new traffic striping and markings on several major City streets that have fading striping, which was previously bid two years ago but was unable to be completed due to funding constraints. The slurry seal specifications have been prepared by Department staff, are ready for Council approval and the subsequent advertisement for construction bids. Section 7.03.040 of the Procurement and Contracting Code requires that for public projects in excess of $100,000 Council approve and adopt the plans, specifications and working details, and authorize staff to advertise for construction bids. The Engineer's Estimate for this project is $747,000. Funding for this project will be available through local Measure A revenue, -in an account budgeted as part of the 2004/2005 capital improvement project, account 134-4498-50100 (Slurry Seal Program). 2004/2005 Annual Slurry Seal February 2, 2005 Page 2 This action is being brought before Council to be in compliance with the Procurement and Contracting Code. Following Council's approval of the plans and specifications, and authorization to advertise for construction bids, staff will schedule bid advertisements with a bid opening date of Marc 1, 2005. SUBMITTED: " DAN ID J. BARAKIAN Director of Public Works, City Engineer APPROVED&e �. .� -_�� � DAVID H. READY'��/ City Manager ATTACHMENTS: 1. Minute Order a►y MINUTE ORDER NO. APPROVING AND ADOPTING THE SPECIFICATIONS, AND AUTHORIZING ADVERTISEMENT FOR CONSTRUCTION BIDS FOR THE 2004/2005 ANNUAL SLURRY SEAL, CITY PROJECT 05-02 I HEREBY CERTIFY that this Minute Order, approving and adopting the specifications, and authorizing advertisement for construction bids for the 2004/2005 Annual Slurry Seal, City Project 05-02, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 2od day of February, 2005. JAMES THOMPSON City Clerk � b