HomeMy WebLinkAbout11/5/2003 - STAFF REPORTS (3) 7-4
DATE: November 5, 2003
TO: City Council
FROM: Executive Director - Airports
RECOMMENDATION:
It is recommended that the City Council approve a lease agreement between the City
of Palm Springs and Sierra Aviation Group,the companywho provides porterservices
for the airlines, for exclusive use space in the airport ticketing wing.
SUMMARY:
The requested action would allow Sierra Aviation to lease exclusive use space at the
Palm Springs International Airport beginning November 15, 2003 on a month-to-
month basis for up to a five (5) year period not to exceed November 15, 2007, unless
otherwise terminated as per the lease provisions.
BACKGROUND:
Sierra Aviation Group provides airline porter services throughout several southern
California airports, and recently won the bid to provide this service at Palm Springs
International Airport. They expect to increase their staffing levels at the airport, and
have requested office space for their operations. The area they are leasing is 562.5
square feet at a rate of$20.06 per square foot for annual amount of $11,283.75.
The agreement is based on a month-to-month term beginning November 15, 2003
and will not-to-exceed five years which will end the term November 15, 2007. This
space is currently available, however, it is one of two remaining exclusive use areas
for airline ticketing offices. If we have a need to lease this exclusive space to an
airline, Sierra Aviation Group understands that we will need to terminate the lease as
per the provisions in the agreement.
The lease agreement is attached and has been approved as to form by the City
Attorney. The Airport Commission also recommended City Council approval at its
love�(ber, 2Q03 meeting.
ALLEN F. SMOOT, A. A. E. FURY GRIFFITH
Executive Director - Airports -� Assistan ector of Aviation
APPRO� �j
City Ma nag
Attachments: 1. Lease Agreemen
2. Minute Order REVIEWED BY DEPT, OF FINANCE
3A
NON-EXCLUSIVE OPERATING AND LEASE AGREEMENT
For Office Space (Space No. 4)
At
Palm Springs International Airport
GENERAL PROVISIONS
The City of Palm Springs, a municipal corporation ("City') hereby grants to the operator
hereinafter named "Operator", a lease for office space ("Space No. 4") (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 E. Airport Drive, Suite 1312
Phone: 909.937,2900 Fax: 909.937.8829
email: sierraaviation@juno.com
Operator's Representative: James Mog, General Manager
Office Use: Airline Porter Services
Security Deposit: $1,000.00
Annual Rental Payment: $11,283.75 Annual (562.5 sq. ft. x $20.06) or
$940.31 per month due on the first of each month
Commencement Date: November 15, 2003
Term: Month-to-Month: not-to-exceed five (5) years; term ending November 15, 2007
City Business License #:
Hours of Operations: Seven (7) days a week; 0500 - 0100(Q
Retail Cart Identification & Location: "Space No. 4"
Location: As shown on Exhibit "A"
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TERMS & CONDITIONS
1. The term "Space No. 4" 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. Pursuant to this agreement, Operator hereby agrees to allow access to corridor within "Space
No. 4" to authorized employees of the Transportation Security Administration for normal conduct
of business related to airport security as shown on Exhibit "A".
3. Additional space adjacent to Space No. 4 may not be used by Operator for any purpose
without advance written approval from the Executive Director—Airports.
4. The Operator will not change hours or days of operation specified herein without prior written
approval from the Executive Director — Airports except during periods of extreme weather
conditions.
5. The Operator shall be responsible for all services provided by its personnel and shall be
responsible for properly securing "Space No. 4" and all items stored in Operators space.
8. No changes or alterations shall be made to "Space No. 4", including physical appearance or
operational qualities of "Space No. 4" without prior written approval from the Executive Director—
Airports.
9. The Operator shall keep "Space No. 4" in excellent physical / operating condition during the
Agreement term. The Operator shall inspect "Space No. 4" 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 "Space No. 4" as a
result of negligence on the part of the Operator, its employees or agents.
10. 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.
11. 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).
12. 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
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conform and shall require its employees, invitees and others doing 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.
13. 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 for the loading/unloading of equipment or supplies must be coordinated
through the Airport Ground Transportation Center.
14. 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.
15. 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.
16. 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 "Space No. 4" 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 net worth satisfactory to the City. The City may require net worth documentation up
to and including an audited financial statement.
17. The Operator shall maintain a policy of worker's compensation insurance in an amount as will
fully 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 "Space No.
4" and airport premises.
18. 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 insured's. 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 prior written 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 City with 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 Retail Cart is located and rated A:VII or better by Best's Insurance Guide.
In the event the City determines that (i) the Operator's activities at the Retail Cart create an
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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.
19. 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 "Space No. 4" and for injuries to
persons in or about "Space No. 4" 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 "Space No. 4" by Operator or its employees and customers,
or arising from the failure of Operator to keep "Space No. 4" 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 the work,
operation or activities 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.
20. 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.
21. The Operator for itself, its successors in interest and assigns, as a part of the consideration
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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. 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.
22, 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:
Executive Director—Airports
Palm Springs International Airport
3400 E. Tahquitz Canyon Way, Suite OFC.
Palm Springs, CA 92262
23. 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 "Space No. 4" or any property of the
Airport except with prior written approval of the Executive Director—Airports.
24. 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 Operator shall 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.
25, 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 Executive Director—Airports.
Any unapproved signage may by removed by the Airport at the expense of the Operator.
26. 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.
27. 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 Operator
shall be operating "Space No. 4" at the Airport. For any period less than a full month, the
Operator's fee shall be prorated.
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28, 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.
29. 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 "Space No. 4" 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 "Space No. 4" 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.
30. 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 "Space No. 4"
and the operations of Operator at the Airport.
31. 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 "Space No. 4" or upon any taxable interest of Operator
acquired under this Agreement, or any taxable possessory interest which Operator may have in or
to "Space No. 4" 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 "Space No. 4". Operator
specifically acknowledges that the interest granted under this 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 the amount of any
additional sum owed.
32. 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 "Space No. 4" 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 "Space No. 4". Piling of boxes, cartons, barrels, or other similar items in
view of a public area shall not be permitted.
33. In transporting merchandise, products, trash, and refuse associated with the operation of
"Space No. 4" to and from "Space No. 4", Operator shall use only carts, vehicles, or conveyances
that are sealed and leak proof.
34. Operator shall not assign this Agreement or sublet "Space No. 4" 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.
3A 1
35. 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 Space No. 4 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 for the care or safekeeping thereof and may remove any of the same
from Space No. 4 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.
36. 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 or other 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 after written 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 "Space No. 4" 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 "Space No. 4"; (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.
37. 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
other individual 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.
38. 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
� A?
Airport. The City shall have the right to resolve all such disputes, disagreements, or conflicts and
its determination shall be final.
39. 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.
10/23/2003 THU 15:23 FAX 003/003
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
APPROVED A FO
By: _
City Attorney
CONTRACTOR: Check one:_Individual_Partnership_Corporation
Corporations require two notarized slgnatures: One from each of the following: A. Chairman of Board.President,or any Vice
President:ANO B.Secretary,Assistant Secretary,Treasurer,Assistant Treasurer,or Chief Financial Officer).
By: By:
Signature(notarized) Signature (notarized)
Name: Name:
Title: Title:
State of 7 State of ?
County of ?as County of ?SS
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 parson(s)whose name(5) satisfactory evidence)to be the person(s)whose nome(s)
Is/are subscribed to the within instrument and acknowledged Ware subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their to me that he/she/they executed the same in his/her/their
authorized capacity(ies),and that by his/her/their signature(s) authorized capaclty(les),and that by hls/hor/their signature($)
on the instrument the person(s),or the entity upon behalf of on the instrument the person($),or the entity upon behalf of
which the persons)acted,executed the instrument. which the 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:
13If/D
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
APPROVED AS TO FORM:
By:
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:
State of ? State of ?
County of ?ss County of ?ss
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 names) satisfactory evidence)to be the person(s)whose name(s)
is/are subscribed to the within instrument and acknowledged is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their to me that he/she/they executed the same in his/her/their
authorized capacity(ies), and that by his/her/their signature(s) authorized capacity(ies), and that by his/her/their signature(s)
on the instrument the person(s),or the entity upon behalf of on the instrument the person(s), or the entity upon behalf of
which the person(s)acted,executed the instrument. which the persons)acted,executed the instrument.
WITNESS my hand and official seal. WITNESS my hand and official seal.
Notary Signature: Notary Signature:
Notary Seal: Notary Seal:
,��ll
EXHIBIT "A"
10 EXCLUSIVE USE SPACE
\ SPACE #4 - 562.5 SQ.FT.
J �
B
--.-.--•
1 SPACE SQ.FT.
1 Exclusive 3106.0
EDS 774.0
Outbound 1350.0
1
2 Exclusive 2137.5
EDS 900.0
Outbound 1350.0
-------,----------- .-
3 Exclusive 562.5
\ EDS 450.0
Outbound 450.0
2 4 Exclusive 562.5
EDS 450.0
Outbound 450.0
5 Exclusive 562.5
--------------------------- -- - -- - EDS 450.0
1 g Outbound 450.0
I
---------------------------- ---- 6 Exclusive 1575.0
EDS 450.0
1 Outbound 900.0
7 Exclusive 1197.0
EDS 667.0
=----------------------- ------ Outbound 300.0
1 8 Exclusive 1131.0
I 6 EDS 535.0
Outbound 750.0
_ 9 Exclusive 890.0
C� EDS 484.0
Outbound 660.0
10 Exclusive 1173.0
I EDS 0.0
1_ Outbound 0.0
MINUTE ORDER NO.
APPROVING A LEASE AGREEMENT
BETWEEN THE CITY OF PALM SPRINGS
AND SIERRA AVIATION GROUP FOR
EXCLUSIVE USE 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
the 51" of November 2003.
PATRICIA A. SANDERS
City Clerk