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HomeMy WebLinkAbout8294RESOLUTION NO. 8294 A RESOLUTION APPROVING A RENTAL CAR LEASE AND OPERATING AGREEMENT BETWEEN PUEBLO, A MUNICIPAL CORPORATION, AND THE HERTZ CORPORATION AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME, Be it resolved by the City Council of Pueblo, Colorado, that: SECTION 1 A certain Lease and Operating Agreement, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the City Attorney, by and between the City of Pueblo, a Municipal Corporation, and The Hertz Corporation, relating to rental car operations at the Pueblo Memorial Airport. SECTION 2 The President of City Council is hereby authorized to execute said Lease and Operating Agreement on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. SECTION 3 All net proceeds derived from said Lease and Operating Agreement will be used for the operation, maintenance, and improvement of the Airport. Introduced December 22, 1997 ATTEST: `_� 1 APPROVED AS TO FORM: By Al Gurule Councilperson APPROVED: President of Oty C uncil City Atto Pueblo Memorial Airport Rental Car Lease and Operating Agreement A Lease Agreement entered into this c2r? day of between the City of Pueblo, a Municipal Corporation, herein called "Lessor" and The Hertz Corporation herein called "Lessee ", WITNESSETH THAT IN CONSIDERATION of the payment of rent hereinafter provided and the keeping and performance of each of the covenants and agreements of said Lessee hereinafter set forth, said Lessor has and does hereby lease unto the said Lessee the following described premises situated in the Terminal building at the Pueblo Memorial Airport, herein called "Airport ", to -wit: 80 square feet of space in the east addition of the Airport Terminal Building To have and hold the same unto the said Lessee for a term of one (1) year commencing January 1, 1998 and terminating December 31, 1998 at and for an annual rental of $800.00 payable in monthly installments of $66.67 in advance on or before the twentieth (20th) day of each calendar month during said term, at the office of the Lessor's Finance Department, City Hall, Pueblo, Colorado. Said rent is based at the rate of 10.00 per square foot per year for floor space. In addition, for the privilege of renting cars upon the Airport, Lessee shall pay a fee of 10 of the monthly gross receipts of Lessee's operation at the Airport. Gross monthly revenue shall exclude payments for automobile insurance, inter -city charges, gasoline sales, and government sales tax. Prior to the twentieth (20th) day of each month, the Lessee shall submit a monthly report of business done the prior month on a form approved by the Director of Aviation. Lessee's records of business done at the Airport are subject to audit at any time during business hours by the Lessor's auditors. Said records shall be available at the Pueblo office of the Lessee. I. RESERVED CAR PARKING SPACES A. Ten 10 reserved car parking spaces, in an area to be determined by the Director of Aviation, will be available at a fee of $10.00 per space per month, payable at the same time rental installments are to be paid hereunder. In addition, all parking spaces occupied by any rental car in excess of the number of reserved car parking spaces will be billed at $10.00 per space per month by a separate invoice from the City of Pueblo. 1 II. RIGHTS AND PRIVILEGES OF LESSEE A. Lessee shall use the leased premises for the rental of cars and for no other purpose. Lessee shall not assign nor sublet the leased premises or any part thereof without the prior written approval of Lessor. B. Except as may be specifically authorized herein to the contrary, Lessee shall not, without the prior written approval of the Director of Aviation, make improvements, modifications, revisions, installation of signs or other alterations to the leased premises. Costs of approved improvements, modifications, revisions, signs and alterations shall be borne solely by Lessee and all such improvements, modifications, revisions or alterations, with the exception of signs, shall, upon expiration of the original term or any renewal term or prior termination of this Lease for any reason, become and remain the property of the Lessor. C. Lessee, its employees and invitees shall have the right of ingress and egress between the main entrance of the Airport as the same now exists or may hereafter be relocated and the leased premises over, upon and through such streets and no other as from time to time shall be designated by the Director of Aviation. Driveways from existing streets into the leased premises shall be located as designated by the Director of Aviation. III. RIGHTS AND PRIVILEGES OF LESSOR A. All rights not herein granted to the Lessee are reserved to the Lessor and nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. B. Lessor shall have full and unrestricted right to enter upon those portions of the Airport occupied and leased herein by the Lessee, and Lessor, its agents, or representatives shall be permitted to inspect the same at any reasonable hour. C. Lessor reserves the right to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport, but shall not be obligated to the Lessee for any failure to so maintain or keep in repair. D. There is hereby reserved to the Lessor, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the premises hereby leased, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using such airspace or landing at, taking -off from, or operation on Pueblo Memorial Airport. 2 RENTAL CAR LEASE AND OPERATING AGREEMENT E. It is further understood and agreed that this Agreement is subject to the written prior approval of the Federal Aviation Administration and that the provisions hereof cannot be modified without prior written approval by said Federal Aviation Administration. IV. OBLIGATIONS OF LESSEE A. Lessee shall, at its sole expense, maintain and keep the leased premises and any improvements presently existing or hereafter constructed thereon in good condition, appearance, and state of repair, normal wear excepted. 1. If Lessee should fail to keep and maintain the leased premises or improvements thereon in such good order and repair as is reasonably required and Lessee has been given notice to make repairs and willfully fails to do so, Lessor may enter the leased premises, without such entering causing or constituting a termination of the Lease, or an interference with the possession of the premises by Lessee, and perform the necessary maintenance or repairs to the lease premises to the condition required by the Lessor, and the costs of such maintenance or repairs by the Lessor shall be paid by Lessee to the Lessor in addition to the reserved rents. B. Lessee agrees, except as may be otherwise provided in other contracts entered into between the Lessor and Lessee, not to engage in any business at the Airport other than that which is expressly authorized herein. C. The Lessee agrees to indemnify, defend, and save the Lessor, its agents, officers, representatives and employees, harmless from and against any and all penalties, liability or loss including costs and attorney fees resulting from claims or court action, whether civil, criminal or in equity, and arising directly or indirectly out of acts of the Lessee, his agents, employees, or servants or through any injury or casualty occurring on the leased premises. D. Lessee shall maintain with insurance underwriters satisfactory to the Lessor, a standard form policy or policies of comprehensive general public liability insurance with limits not less than $500,000 for any one accident or for any one injury or death and $100,000 property damage. Such policies shall name the Lessee and Lessor as the insureds. 1. Lessee shall furnish a certificate from the insurance carrier or carriers showing such insurance to be in full force and effect during the term of this Agreement or extensions thereof. All said policies shall provide for a minimum of ten (10) days notice to the Lessor in the event of cancellation, nonrenewal or material change in the terms thereof. 3 RENTAL CAR LEASE AND OPERATING AGREEMENT 2. Lessee shall not hold, or attempt to hold, Lessor liable for any injury, including loss of life, to any person, or for damage to any property while on the leased premises or on the Airport, irrespective of how such injury or damage may be caused or occasioned. V. OBLIGATIONS OF LESSOR A. Lessor shall furnish heat, air conditioning, lighting, and janitor service on said premises. B. The Lessor bi- annually will review its cost of providing utilities and services to the Terminal and amend the rental base rate per square foot when warranted. VI. GENERAL CONDITIONS A. The terms and conditions of this Lease and Lessee's rights hereunder are hereby made subject to the provisions of Title III Chapter 1 of the 1971 Code of Ordinances of the City of Pueblo and as same may be subsequently amended. In the event of conflict between said Code of Ordinances and any provisions herein, said Code shall control. B. The Lessee, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this Lease for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non - Discrimination in Federally- Assisted Programs of the Department of Transportation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as Regulations may be amended. 1. The Lessee, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that: a. No person on the grounds of race, color, sex or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of the leased premises. b. In the construction of any improvements on, over, or under the leased premises and the furnishing of services thereon, no person on the grounds of race, color, sex, or national origin shall be M RENTAL CAR LEASE AND OPERATING AGREEMENT excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination. C. The Lessee shall use the leased premises in compliance with all other applicable requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non - Discrimination in Federally- Assisted programs of the Department of Transportation -- Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 2. That in the event of breach of any of the above non - discrimination covenants, Lessor shall have the right to terminate this Lease and to re- enter and repossess said land and the facilities thereon, and hold the same as if said Lease had never been made or issued. C. The Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations before construction of any future structure of building upon the leased premises or before any modification or alteration of any present or future building or structure situated on the leased premises is commenced.] D. Lessee shall furnish its services and accommodations on a fair, equal, and not unjustly discriminating basis to all users thereof and it shall charge fair, reasonable, and not unjustly discriminating prices for each unit or service, provided that the Lessee may be permitted to make reasonable and non- discriminatory discounts, rebates or other similar price reduction to employees or volume purchasers. E. The Lessee by accepting this Lease expressly agrees for itself, its successors, and assigns that it will not make use of the leased premises in any manner which might interfere with landing and taking -off of aircraft from Pueblo Memorial Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the Lessor reserves the right to enter upon the premises hereby leased and cause the abatement of such interference at the expense of the Lessee. F. This Lease and all the provisions hereof are subject to all rights the United States Government now has, or in the future may have, or acquire, affecting the control, operation, regulation, re -entry upon and taking over of the said Airport including the leased premises. G. The Lessee shall observe faithfully all rules and regulations affecting use of the Airport, whether established by the Director of Aviation, by the City or other political subdivision having jurisdiction, by the State of Colorado or the United 5 RENTAL CAR LEASE AND OPERATING AGREEMENT States, or agencies thereof, including, but not limited to, rules affecting the operation of motor vehicles upon, to and from the Airport. H. The Lessee, and all officers, agents and employees of Lessee, hereby agree to be bound by and subject to all the Police Ordinances of Pueblo, a Municipal Corporation, at all times while on the Airport, whether acting in the course of Lessee's business or otherwise, to all intents and purposes the same as though the leased premises were located within the City Limits of Lessor. I. The Lessee represents that it has inspected the Airport and all its premises and facilities and that it accepts the condition of same and fully assumes the risk incident to the use thereof. The Lessor shall not be liable to the Lessee for any damages or injuries to the property or personnel of the Lessee which result from hidden, latent or other dangerous conditions on the Airport or leased premises. VII. DEFAULT HOLDOVER AND NON - PERFORMANCE CONDITIONS A. That if, after the expiration of the term of this Lease, Lessee shall remain in possession of the leased premises and continue to pay rent without any express written agreement as to such holding over, then Lessee agrees that all terms and covenants of this Lease shall remain in effect, except that Lessee shall be a tenant from month to month at a monthly rental equal to 125% of the rent for the last month payable hereunder. B. That if the Lessee shall be declared insolvent and bankrupt, or if any assignment of the Lessee's property shall be made for the benefit of creditors or otherwise, or if Lessee's leasehold interest herein shall be levied upon under execution, or seized by virtue of any writ of any Court of Law, or a Trustee in Bankruptcy or a Receiver appointed for the property of the Lessee, whether under the operation of the State or Federal Statutes, then and in any such case, the Lessor may, at this option, immediately with or without notice, notice being expressly waived, terminate this Lease and immediately retake possession of said premises without the same working any forfeiture of any accrued obligations of the Lessee hereunder. C. That if the rent above reserved, or any part thereof shall be in default, or in case of a breach by the Lessee of any of the covenants or agreements herein, the said Lessor may declare this Lease terminated, and after the expiration of three days from the date of the service of a written notice to that effect, be entitled to the possession of said premises without any further notice or demand. If the Lessor shall become entitled to the possession of said premises either by the expiration of this Lease or by any violation of any term or provisions as herein provided for, and the said Lessee shall refuse to surrender and deliver up the possession of said premises, after the service of said notice as aforesaid, then and in that event, the said Lessor may, without further notice or demand, enter n RENTAL CAR LEASE AND OPERATING AGREEMENT into and upon said premises, or any part thereof, and take possession thereof and repossess them, and expel, remove, and put out of possession the Lessee, using such help, assistance, and force in so doing as may be needful and proper, without prejudice to any remedy allowed by law, available to such cases. D. That in case said premises are left vacant and any part of the rent herein reserved be due and unpaid, then the Lessor may, without in anywise being obligated to do so, and without terminating this Lease, retake possession of said premises and rent the same for such rent, and upon such conditions as the Lessor may think best, making such changes and repairs as may be required, giving credit for the amount of rent so received less all expenses of such changes and repairs, and said Lessee shall be liable for the balance of the rent herein reserved until the expiration of this Lease. E. In the event the Lease Agreement be terminated as herein provided, Lessor should have and is hereby given a lien upon Lessee's equipment, fixtures, furniture, and inventory located in or upon the leased premises for all rent, expenses, attorney fees, and costs then due or to become payable by Lessee hereunder, and such lien may be enforced by the taking and sale of such property in the same manner and as provided for the disposition of collateral under the Colorado Uniform Commercial Code. F. Lessee agrees to pay to Lessor all costs, including a reasonable attorney fee, incurred by Lessor in recovering any rent or other money due and unpaid under the terms of this Lease or to recover possession of the leased premises after termination hereof. VIII. SPECIAL CONDITIONS A. If not in default hereunder and Lessee desires to continue the operation covered by this Agreement beyond the date herein stated as the expiration date, he shall so notify the Lessor in writing addressed to the Director of Aviation, at least ninety (90) days before the expiration date of this Agreement. The Lessee shall thereupon have the right to renew this Lease for an additional term of one (1) year commencing January 1, 1999 and terminating December 31, 1999 upon the same terms and conditions, except that the rent for the full renewal shall be negotiated at the time of renewal not to exceed a ten (10) per cent increase of the current lease rental rate. B. In the event commercial air service is terminated /suspended, the Lessee may terminate this lease with a thirty (30) day written notice of termination. 7 RENTAL CAR LEASE AND OPERATING AGREEMENT IX. MISCELLANEOUS PROVISIONS A. That no assent, expressed or implied, to any breach of any one or more of the covenants and agreements hereof, shall be deemed or taken to be a waiver of any succeeding or other breach. B. That all covenants and agreements in this Lease contained shall be binding upon and inure to the benefit of the heirs, successors, assigns and legal representatives of said Lessor and said Lessee. Executed at Pueblo, Colorado, the day and year first above written. ATTEST: PUEBLO, A MUNICIPAL CORPORATION By City CI& Presid t of ty Council APPROVED AS TO FORM: LESSEE: By City Attorney ,' Simon EI 's, Vice President L Proper es &Concessions The Hertz Corporation n.