HomeMy WebLinkAbout4/21/2004 - STAFF REPORTS (6) DATE: April 21, 2004
TO: City Council
FROM: Director of Aviation
AIRPORT USE AGREEMENT WITH LSG SKY CHEFS, INC.
RECOMMENDATION:
That the Airport Commission recommend City Council approval of an Airport Use Agreement
between LSG Sky Chefs, Inc. (LSG) and the City of Palm Springs, subject to City Attorney
review as to form.
SUMMARY:
The requested action would allow LSG to continue operations at Palm Springs International
Airport.
BACKGROUND:
LSG Sky Chefs, Inc. has provided catering services to the airlines serving Palm Springs
International Airport since their merger with Caterair International in September of 1995. The
proposed Airport Use Agreement is a revision and update of use agreements previously in
place. LSG provides catering services only and does not conduct any type of retail sales
operation.
The term of this agreement is for one year and is renewable at the end of each year.A portage
fee of 10.5% of gross sales, as established by the City's Comprehensive Fee Schedule, is
required. Last fiscal year, LSG paid $133,444.88 in portage fees.
The Airport Commission has reviewed this Airport Use Agreement and recommends City
Council approval.The agreement is attached and has recently been reviewed as to form by the
City Attorney's office and determined to be acceptable.
51,
., ;�-.-=,�-----
L;_Richard Sf alsh;'
,
f Directop�o�AV�Oon
APPROVED:
City Manager/
Attachment:
1. Airport Use Agreement
2. Minute Order
REVIEWED BY DEPT.OF FINANCE
AIRPORT USE AGREEMENT
AND
PERMIT APPLICATION
This application ("Application")forAirport Permit,which shall be and become an Airport Use
Agreement("Agreement")upon approval and acceptance bythe Palm Springs Airport Commission,
is submitted by:
COMPANY: LSG Sky Chefs, Inc.
ADDRESS: 6191 North State Highway 161, Irving, TX 75038
this day of 2004.
Pursuant to the provisions of Chapter 11.33 and 11.34 of the Palm Springs Municipal Code
adopted by the City Council of the City of Palm Springs, the provisions thereof being incorporated
herein by reference, applicant hereby petitions for a permit to operate and engage in commercial
activity on the Palm Springs International Airport ("Airport") premises as provider of catering
services to airlines serving the Airport ("Inflight Caterer"). The number of vehicles to be utilized on
the Airport is_.
1. Attachment# 1: Applicant must complete and return the vehicle identification form
along with this Agreement before the Airport's acceptance of this Application to conduct the
services under this Agreement. Vehicle information, year, make, model, color, license number,
companies'vehicle number,along with contact person,address,and business phone number must
be completed and legible. Each permit decal is assigned to a certain vehicle and will be
permanently affixed to that vehicle and is non-transferable.
2. Records and Payment of Fees: Applicant shall keep and maintain such records,
reports and accounts as are deemed reasonable and necessary by the City to insure proper
payment of Airport Access Fees provided for in Resolution#17796'Comprehensive Fee Schedule'.
Applicant further agrees to make such records available for inspection and audit by the City, its
designated agents or employees within 48 hours of the City's request therefor. Applicant shall pay
to the City the fees described in the Comprehensive Fee Schedule monthly within the first fifteen
(15) days of the month immediately following the month in which the fees were accrued.
3. Insurance:
(a) Liability Insurance: During the entire term of this Agreement,Applicant agrees
to procure and maintain public liability insurance at his sole expense to protect against loss from
liability imposed by law for damages or account of bodily injury, including death therefrom,suffered
or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly from
any actor activities of Applicant, or any person acting for Applicant or under its control or direction,
and also to protect against loss from liability imposed by law for damages to any property of any
person caused directly or indirectly by or from acts or activities of Applicant or any person acting
for Applicant, or under its control or direction. Such public liability and property damage insurance
shall also provide for and protect Applicant and the City against incurring any legal cost in
defending claims for alleged loss. Such public liability and property damage insurance shall be
maintained in full force and effect throughout the term of this Agreement and any extension thereof
in the following minimum limits:
Bodily Injury $1,000,000 each person
3,000,000 each occurrence
Property Damage $3,000,000 each occurrence
3,000,000 aggregate
A combined single limit policywith aggregate limits in an amount not less than Three Million
Dollars ($3,000,000) will be considered equivalent to the required minimum limits. All of such
insurance shall be primary insurance and shall name the City as an additional insured.
The insurance coverage required hereby shall include, but is not limited to, coverage for
owned and non-owned vehicles, and that portion of the required coverage shall not be less than
Three Million Dollars ($3,000,000.00) combined single limit coverage.
If the operation under this Agreement results in an increased or decreased risk in the
opinion of the City Manager,then Applicant agrees that the minimum limits hereinabove designated
shall be changed accordingly upon request by the City manager provided, however, that the
Applicant may appeal to the City Council within ten (10) days after any increase is requested and
such requirement for increased coverage shall be subject to determination by the City Council.
Applicant agrees that provisions of this paragraph as to maintenance of insurance shall not
be construed as limiting in any way the extent to which the Applicant may be held responsible for
the payment of damages to persons or property resulting from Applicant's activities,or the activities
of any person or persons for which Applicant is otherwise responsible.
(b) Worker's Compensation Insurance: The Applicant shall procure and maintain,
at its sole expense, Worker's Compensation Insurance in such amounts as will fully comply with
the laws of the State of California and which shall indemnify, insure and provide legal defense for
both the Applicant and the City against any loss, claim or damage arising from any injuries or
occupational diseases happening to any worker employed bythe Applicant in the course of carrying
out the within Agreement.
(c) The failure of Applicant to procure or to maintain any insurance coverage
required herein shall constitute cause for denial or revocation of the permit applied for, but no duty
is imposed upon or assumed by the City to monitor or assure the procurement or maintenance of
$ �O3
such insurance. The failure of the City to monitor such procurement or maintenance, shall not give
rise to any cause of action against the City, its officer, agents or employees by any third party.
(d) Evidence of Insurance: A certificate of insurance, or an appropriate insurance
binder, evidencing the above insurance coverage with a company acceptable to the City's Risk
Management Officer, shall be submitted by Applicant with the Application.
(e) Notice to City, Insurance Coverage Change: The terms of the insurance policy
or policies issued to provide the above insurance coverage shall provide that said insurance may
not be amended or canceled by the carrier, for non-payment of premiums or otherwise, without
sixty (60) days' prior written notice of amendment or cancellation to the City. In the event said
insurance is canceled, Applicant shall, prior to the cancellation date, submit to the Director of
Aviation new evidence of insurance in the amount heretofore established.
4. Indemnification. Applicant hereby indemnifies 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 Applicant, its agents, employees,
subcontractors, or invitees, provided for herein, or arising from the acts or omissions of Applicant
or its agents, officers, or employees, 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) Applicant 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) Applicant will promptly pay anyjudgment 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 Applicant
hereunder; and Applicant 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 Applicant for such damages or other claims arising
out of or in connection with the negligent performance of or failure to perform the work, operation
or activities of Applicant hereunder, Applicant 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.
$ so
5. Assignment. Sale or Transfer of Agreement or Permit: Applicant herein expressly
understands and agrees that any permit granted under this Agreement may not be assigned, sold
or otherwise transferred to any other individual, firm or corporation. Applicant further agrees to
comply with all applicable Federal, State and local laws. Each permit decal will be assigned to an
individual vehicle and permanently affixed and is non-transferable among vehicles.
6. Certification of Ownership: Applicant certifies that Applicant is conducting business
as a corporation and the principal officers thereof are:
and that the mailing address to which notices or other communications shall be sent is:
7. Term. This Agreement shall expire one year from the date of approval. An
application for renewal for an additional term may be filed thirty (30) days prior to expiration.
Appropriate fees shall accompany this and any renewal application. Portage fees shall be based
upon 10.5% of gross sales.
8. Compliance with Laws. Applicant 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 operations of Applicant at the Airport.
9. Applicable Law. 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 Applicant set forth herein shall be adequate service for such litigation. The parties further agree
that R iverside C ounty, C alifornia i s t he p roper p lace f or v enue a s t o a ny s uch litigation a nd
Applicant agrees to submit to the personal jurisdiction of such court in the event of such litigation.
10. Federal Laws. Applicant for itself, its successors in interest and assigns, as a part
of the consideration hereof, does hereby covenant and agrees that it shall not discriminate on the
basis of race, color, national origin,or sex in the performance of this contract. Applicant shall carry
out applicable requirements of 49 CFR part 26 in the award and administration of DOT-FAA-AIP
assisted contracts. Failure by Applicant to carry out these requirements is a material breach of this
Agreement, which may result in the termination of this contract or such other remedy, as the City
deems appropriate.
11. Entire Agreement.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
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03/09/2004 TUE 10:15 FAX f 003/003
j
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IN WITNESS WHEREOF, the parties have executed and entered into this Agreement as of the
date first written above.
CITY OF PALM SPRINGS
ATTEST: a municipal corporation
By: By:
City Clerk City Manager
APPROV AS O FQRM.
By:�nY t1 rt
City Attorney
CONTRACTOR: 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).
By: By:
Signature(notarized) Signature(notarized)
Name: Name:
Title: Title: 1
State of State of t
County of Iss County of Ls
On—before me, On before me,
personally appeared personally appeared
personally known to me (or proved to me on the basis of personally known to me (or proved to me on the basis of
satisfactory evidence)to be the person(s)whose name(s)is/are satisfactory evidence)to be the person(s)whose name(s)is/are
subscribed to the within instrument and acknowledged to me subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their authorized that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s),or the entity upon behalf of which the instrument the person(s),or the entity upon behalf of which the
person(s)acted,executed the Instrument. person(s)acted,executed the Instrument.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
� � b
herein. Applicant acknowledges that City or its agents or representatives have made no
representations or warranties of any kind or nature not specifically set forth herein.
LSG Sky Chefs, Inc.
Signature
Approved and Authorized - Director of Aviation
By:
Date of Approval: , 2004.
Notary page follows.
10. 1
MINUTE ORDER NO.
APPROVING AN AIRPORT USE AGREEMENT
WITH LSG SKY CHEFS, INC., IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY, FOR THE
PROVISION OF AIRLINE CATERING SERVICES AT
PALM SPRINGS INTERNATIONAL AIRPORT.
I HEREBY CERTIFY that this Minute Order, approving an Airport Use Agreement
with LSG Sky Chefs, Inc., in a form acceptable to the City Attorney, for the
provision of airline catering services at Palm Springs International Airport, was
adopted by the City Council of the City of Palm Springs, California, in a meeting
thereof held on April 21 , 2004.
PATRICIA SANDERS
City Clerk