HomeMy WebLinkAboutReso 93-312 - Approve RMA Rent-A-Car concession agreement & Permit between the COR & SJ Denham, Inc DBA Hertz Rentals RESOLUTION NO. 73-312—
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3-3/2_A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE REDDING MUNICIPAL AIRPORT RENT-A-CAR
CONCESSION AGREEMENT AND PERMIT BETWEEN THE CITY OF
REDDING AND S . J. DENHAM, INC. , DBA HERTZ RENTALS, AND
AUTHORIZING THE MAYOR TO SIGN.
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IT IS HEREBY RESOLVED that the City Council of the City of
Redding hereby approves the Redding Municipal Airport Rent-A-Car
Concession Agreement and Permit between the City of Redding and
S . J. Denham, Inc . , dba Hertz Rentals, a true copy of which is
attached hereto and incorporated herein by reference.
BE IT FURTHER RESOLVED that the Mayor of the City of Redding
is hereby authorized and directed to sign said Redding Municipal
Airport Rent-A-Car Concession Agreement and Permit on behalf of
the City of Redding; and the City Clerk is hereby authorized and
directed to attest the signature of the Mayor and to impress the
official seal of the City of Redding thereto.
I HEREBY CERTIFY that the foregoing Resolution was intro-
duced and read at a regular meeting of the City Council of the
City of Redding on the 17th day of August 1993, and was
duly adopted at said meeting by the following vote:
AYES : COUNCIL MEMBERS : Anderson, Dahl Kehoe and ess. `
NOES : COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Moss;
ABSTAIN: COUNCIL MEMBERS: None
CARL ARNESS, Mayor
. City of Redding
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ATTEST: FORM PPROV D: ,
CONNIE STROHMAYER 'A-Ay Clerk RANDALL HAY9, City Attorney ^
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C =TY OF REDO =NG
�, REDOING MUN=CIPAL A= RPORT
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RIE:NT-A-CAR CONCESS ION
AGF2EEMENT AND PERMIT
S _
7 - DENHAM I NC _ dba
HERTZ RENTALS
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RE DD=NG MUN=C I P AL A= RP O RT
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RE NT—A—CAR C O NC ESS I ON
AGREEMENT JqLWID P E RM I T
ARTICLE DESCRIPTION PAGE
RECITALS . . . . . . . . . . . . . . . . . . 1
I DEFINITIONS . . . . . . . . . . . . . . . . . 2
II RIGHTS GRANTED. . . . . . . . . . . . . . . . 7
III TERM. . . . . . . . . . . . . . . . . . . . . 8
IV PAYMENTS . . . . . . . . . . . . . . . . . . . 9
V PERFORMANCE BOND; LETTER OF CREDIT;
CERTIFICATE OF DEPOSIT . . . . . . . . . . . 13
VI AUDIT, REPORTS , BOOKS AND RECORDS . . . . . . 14
VII IMPROVEMENTS . . . . . . . . . . . . . . . . . 16
VIII MAINTENANCE . . . . . . . . . . . . . . . . . 17
IX LIENS . . . . . . . . . . . . . . . . . . . . 18
X SERVICE . . . . . . . . . . . . . . . . . . . 19
XI GENERAL COVENANTS . . . . . . . . . . . . 21
EXHIBITS
EXHIBIT "A" - Terminal Building Rental Space
EXHIBIT "B" - Ready/Return Car Parking Spaces
EXHIBIT "C" - Certified Activity Report (CAR)
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C =TY O F RE DD =NG
RE DD I NG MUNICIPAL A= RP O RT
!i RENT—A—CAR C ONC E S S I ON
i AGREEMENT AND P ERM=T
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THIS AGREEMENT AND PERMIT, made this 1st day of October, 1993
by and between the CITY OF REDDING, a Municipal Corporation and
General Law City, hereinafter referred to as "CITY, " who owns and
j maintains Redding Municipal Airport in the City of Redding, and
whose address is P. O. Box 496071 , Redding, California 96049-6071,
and S . J. DENHAM, INC. , dba HERTZ RENTALS, hereinafter referred to
as the "OPERATOR, " whose address is P . 0. Box 990326 , Redding,
California 96099-0326 .
W I T N E S S E T H:
WHEREAS , the CITY owns and operates the Redding Municipal
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Airport, located near Redding, California, hereinafter referred to
as the "Airport" ; and
WHEREAS , it is necessary in the promotion and accommodation of
air commerce and air transportation that an adequate, economical ,
courteous , safe, clean, neat, and efficiently operated Rent-A-Car
Concession be maintained for the benefit of air travelers and other
members of the public; and
WHEREAS , the OPERATOR desires to conduct a Rent-A-Car Business
in and from the Airport '^erminal ; and
WHEREAS , the OPERATOR desires to lease space in the Terminal
from which to conduct said Business ; and
WHEREAS , the CITY is obligated to charge user fees for the
Parking Lot, as shown in :xhlbit "B , " in order to provide contrib-
:i utina cost recovery for t':e Reddina :�Iunicipai Airport; and
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WHEREAS, the OPERATOR desires to use Ready/Return Car Parking
Spaces as defined and required herein; and
WHEREAS, the OPERATOR was a successful bidder for the right to
operate one of the three Rent-A-Car concessions in and from Redding
Municipal Airport Terminal ; and
WHEREAS, this is a stand-alone Agreement and Permit that will
terminate with no holdover, option or other extension; and
WHEREAS, prior to the termination of this Agreement and Permit
the CITY plans to have issued a competitive bid for Rent-A-Car
Concession Agreements at the Redding Municipal Airport Terminal;
NOW THEREFORE, in consideration of the Premises and of the
charges , fees , covenants , and agreements contained herein, the
parties hereby agree to ail conditions as follows :
ART
D E F=N=T 2 ON S
For the purposes of this Agreement and Permit the terms listed
below will mean:
A. "Agreement" : This Rent-A-Car Concession Agreement and
Permit together .pith all future amendments or supplements
which may be executed by the parties to this Agreement
and Permit .
B. "Airport" : The real property and facilities of Redding
Municipal Airport, Redding, California as they exist on
the date of the execution of this Agreement.
C . "Airport Director" : The CITY' s designated Director
(Manager) at Fedding Municipal Airport acting directly
through his dui ; authorized representative.
D . "Automobile" : Those two or `our wheel drive vehicles
(which includes recreational vehicles ) , owned or leased
by the OPERATOR, by cvnich any person or property may be
propelled, moved or drawn upon a highway, notwithstanding
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term "automobile. "
If any Automobile is larger than twenty ( 20 ) feet in
length, ( i .e. recreational vehicle) it shall not be
parked in the Ready/Return Car Parking Spaces; such
li. Automobile shall be parked elsewhere.
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E. "Fiscal Year" : Means any fiscal year adopted by the
CITY. The CITY' s current fiscal year begins on July 1st
and ends on June 30th.
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F. "Gross Receipts" : Gross Receipts , as used in this
Agreement, shall include:
( i ) All monies paid or payable to the OPERATOR for
Net Time and Mileage whether for cash or credit
under a Transaction entered into on the Airport,
regardless of when or whether paid for or not and
regardless of location assignment of the Automo-
biles and without regard to the manner in which,
or place at which, the Automobiles are furnished
to OPERATOR' s customers , and without regard to
whether the Automobiles are returned to the
Airport or to some other location.
( ii ) All Net ^ime and Mileage revenue from any Automo-
bile exchanged from OPERATOR' s Redding area
operations for an Automobile originally rented at
the Air^ort .
The following are exclusions from this definition:
( i ) The difference between the regular rental/sales
price and the actual rental/sales price in the
case of discount transactions . (Only the net
rental/sales price will be included in "Gross Re-
ceiots . '
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The amount of any rental/sales taxes, so-called
"luxury taxes , " consumer excise taxes, and other
similar taxes imposed by any Federal, State,
municipal , or governmental authority directly
upon the rent of vehicles, now or hereafter, when
such taxes are added separately to the rental
price thereof and collected from customers at the
time of Transaction. All taxes must be properly
recorded and accounted for. No franchise or
capital stock tax and no income or similar tax
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based upon income or profits as such will be
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deducted from Gross Receipts .
( iii ) Receipts from the sale of waste or scrap materi-
als resulting from the OPERATOR' s Business at the
Terminal .
( iv) Receipts from the sale or trade-in value of any
furniture, fixtures , equipment or vehicles used
upon the Premises and owned by OPERATOR.
(v) The value of any merchandise, supplies , equipment
or vehicles exchanged or transferred from or to
other locations of Business of the OPERATOR where
the exchange or transfer is not made for the
purpose of avoiding a sale by OPERATOR which
otherwise would be made at or from the Premises .
(vi ) Receipts in the form of refunds from or the value
of , merchandise, supplies or equipment returned
to shippers , suppliers , or manufacturers .
( vii ) Receipts with respect to any Transaction where
the subject of the Transaction or some part
thereof is thereafter returned by the purchaser
to and accepted by OPERATOR, to the extent of any
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refund actually granted or adjustment actually
made either in the form of cash or credit.
(viii ) Charges for damages to OPERATOR' s Automobiles
j collected from the customer, incurred while the
Automobile -. as in the customer' s custody, or
illegal use of OPERATOR' s Automobiles .
( ix) Collision protection revenues and "Rent It Here -
Leave It There" service charges .
( x) Fees from sales of automobile liability insur-
ance, loss damage waiver insurance, and personal
,I accident insurance to the extent that such fees
do not exceed the cost incurred by OPERATOR to
provide insurance .
( xi ) Replacement fuel charges .
( xii ) That portion of Net Time and Mileage for a one-
way rental that is owed by the OPERATOR to the
out-of-town rent-a-car owner of the rental vehi-
cle of the Transaction.
i The OPERATOR will not be credited with nor allowed to have any
reduction in the amount of the Gross Receipts as hereinabove
defined which results from any arrangements for illegal rebates or
illegal kickbacks or illegal hidden credits given or allowed to
customers .
G. "In-Terminal Operator" : A Business which has an Agreement
.-;ith the Citv of Redding to operate in the Redding
:•'unicipal Airport Terminal .
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H. "Net Time and '.4ileage" : This definition is further
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( i ) Time : is the sum of the weeks , days and hours
that an Autcmobile is rented, each period of
which is multiplied by the rate for the period.
( ii ) Mileage: is the difference between out and in
odometer readings multiplied by the mileage rate.
Therefore, Net Time and Mileage is defined as the
sum of Time and Mileage less any discounts . The
"rate" and "sum" stated herein are expressed in
dollars and cents .
I . "Office" : The Terminal floor space ( including the
corresponding counter space ) leased under this Agreement
by the CITY to the OPERATOR for the uses authorized in
this Agreement; at the beginning of this Agreement said
space consists of 196 .2 square feet of floor space as
shown on Exhibit "A, " Sheet 1 of 1, attached hereto and
made a part of this Agreement.
J. "Premises" : All areas covered by this Agreement including
the Office, and Ready/Return Car Parking Spaces .
K. "Ready/Return Car Parking Spaces" : Automobile parking
spaces in the Parking Lot to which an OPERATOR's customers
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return or pick up the rented Automobiles to or from the
OPERATOR, as shown on Exhibit "B, " Sheet 1 of 1, attached
hereto and made a part of this Agreement.
L. "Rent-A-Car Business" ( hereinafter called "Business" ) : �
The rental of Automobiles for a rental period not to
exceed sixty ( 60 ) days , the checking in of Automobiles ,
long distance telephone and communication service, and
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hotel and motel reservations for customers . Each rental
'Transaction shall be made by a separate agreement, and any
extensions of use by a renter of the period of time
exceeding sixty ( 60 ) days shall be considered a separate
Transaction .
14. "Terminal" : The CITY' s airline passenger terminal ,
including its environs , at the Reading Municipal Airport. �
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N. "Transaction" : A separate and distinct act of BusinesE
between the OPERATOR and a customer.
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R I G HT S G RAN TE D
1 . The CITY grants to the OPERATOR the right to conduct anc
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operate a Business from the space in the Terminal only. The CIM
agrees that, during the Term of this Agreement, not more than three
'i ( 3 ) Rent-A-Car Operators , including the OPERATOR, will be autho-
rized by the CITY to operate a Business from the Terminal .
However, nothing in this Agreement shall be construed as prohibit-
ing the CITY from authorizing Non-Terminal and Off-Airport Opera-
tors to operate a Business on the Airport .
2 . The CITY grants to the OPERATOR the right to ingress ,
egress , and occupancy of the Premises by the OPERATOR, its offi-
cers , contractors , suppliers , service personnel , guests, patrons
and invitees , subject to the security rules of the Airport, it
connection with its Business .
3 . For the purpose of pre-positioning Rent-A-Cars for
customers near the Terminal and for the purpose of providing a
designated area to which customers return Rent-A-Cars, the CITY
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requires the OPERATOR and the OPERATOR agrees to rent the thirty-
four ( 34 ) Ready/Return Car Parking Spaces shown on Exhibit "B, "
Sheet 1 of 1 . Therefore, the CITY grants to the OPERATOR the
exclusive use of said Parking Spaces . On or before September 30 ,
1994 , and every year thereafter during the Term of this Agreement,
the airport Director may reallocate the Ready/Return Car Parkinc
Spaces based on each Businesses ' respective percentage of Gross
Receipts . The Business wi:h highest Gross Receipts may receive the
most Parking Spaces . ( Lxampie : If Business "A" has 40% of total
Gross Receicts for all _Eusinesses during a particuiar year, ther
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Business "A" may have 40% of the total Parking Spaces for the
following year. )
The OPERATOR may make arrangements to use additional Ready/
Return Car Parking Spaces from another In-Terminal Operator( s )
providing ( 1 ) said In-Terminal Operator( s ) have an agreement
between them to do such, ( 2 ) no fee is charged by one In-Terminal
Operator to another, and ( 3 ) prior written approval is obtained
from the Airport Director.
Non-Terminal and Off-Airport Operators will not be permitted
to rent or use the Ready/Return Car Parking Spaces . The OPERATOR i
must retain the allocated Ready/Return Car Parking Spaces through-
out the Term of this Agreement .
In the event Ready/Return Car Parking Spaces become available
during the Term of this Agreement, the Airport Director may, at the f
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OPERATOR' s request, allocate additional parking spaces to the
OPERATOR. The parking of non-rental or OPERATOR' s employees '
automobiles in the Ready/Return Car Parking Spaces is prohibited.
4 . The OPERATOR shall not engage in any activity on the
Premises other than that specifically permitted herein.
ART=CLE
TERM
The Term of this Agreement shall be for a period of seven ( 7 )
years commencing at 12 : 00 A.M. on the 1st day of October, 1993 and
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ending on the 30th day of September 2000 unless sooner terminated
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as herein provided.
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This Agreement is entered into with the understanding that j
the City of Redding will initiate an open competitive process for
the provision of rental car service at Redding Municipal Airport.
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It is the CITY' s intent'-on that such process will begin at least
nine ( 9 ) 7months prior to expi-r-ation of _:pis Agreement.
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ART=CLE =V
PAY ME N T S
i 1 . For use of the Premises , facilities , services , rights and
privileges granted by this Agreement, the OPERATOR hereby agrees to
pay t CITY an OPERATOR' s fee computed as the GREATER of the
Percentage Fee or the Minimum Guarantee, as follows :
A. Percentage Fee:
A monthly fee equal to the sum of ( i) , ( ii) , and (iii)
below as follows :
( i) Eight percent ( 80) of the amount of
Gross Receipts up to and including
$20,000 .00 per month;
PLUS
( ii) Nine percent ( 90) of the amount of
Gross Receipts over $20 ,000 . 00 up to
and including $40 , 000 . 00 per month;
PLUS
( iii ) Ten percent ( 100) of the amount of
Gross Receipts over $40,000,00 per
month.
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3 . Minimum Guarantee:
The monthly Minimum Guarantee of Three Thousand
Dollars ( $3 ,000 . 00 ) as bid.
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C . Readv/Return Car Parkina Spaces :
In addition to the greater of "A" or "B" above, the
monthly fee for each of the Ready/Return Car Parking
Spaces specified in Article II ( 3 ) the sum of :
( i ) A flat fee of Ten Dollars ( $10 . 00) per month
for each space designated for the OPERATOR.
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2 . Payments shall be made and received as follows :
A. On or before the 20th day of each month the OPERATOR
shall pay the CITY and the CITY shall receive one-
twelfth ( 1/12 ) of the annual Minimum Guarantee PLUS
Ready/Return Car Parking Space fees .
B. No later than the 20th day of each month OPERATOR
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shall pay the CITY and the CITY shall receive that
portion of the percentage fee for the previous month
which exceeds one-twelfth ( 1/12 ) of the annual monthly
fees and charges and Ready/Return Car Parking Space
rent being currently assessed. If during any contract
year, the aggregate of the monthly percentage fees and
the minimum monthly guarantee payments paid by
OPERATOR during the year equals twelve ( 12 ) times the
monthly Minimum Guarantee of Three Thousand Dollars
( $3 ,000 . 00) bid, the OPERATOR shall thereafter, for
the remainder of that year, be required to pay only
the monthly percentage fee. For the purpose of this
paragraph "contract year" means the twelve ( 12 ) month
period which immediately follows the anniversary date
of the Term of this Agreement.
C . Each pavment specified in 2 (B) above shall be submit-
tea with a Certifiers Activity Report which shall state
the OPERATOR Gross Receipts durincT the calendar month
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for which pavment is made and which must be presented
using the CITY' s form. The CITY' s form is as shown in
Exhibit "C" attached hereto and incorporated herein by
reference .
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D. Payments due under this Agreement must be made in cash
or by check, bank draft, or money order made payable
to the City of Redding and received at: P . O. Box
496071 , Reddina, California 96049-6071 .
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'I E. Any rent, charge, fee, or other consideration which is
li due and unpaid at the expiration, termination, or
cancellation of this Agreement will be a charge
against the OPERATOR and his property, real or
personal .
F. The OPERATOR shall make written records of all
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Transactions pertaining to the Business conducted on
the Airport and shall make copies available if
requested by the CITY.
G. OPERATOR realizes that the late payment of rent, any
other fees , or late submittal of the required Certi-
fied Activity Report causes CITY to incur costs not
contemplated by this Agreement, and it would be very
difficult to determine the exact amount of those
costs . Therefore, if any rents , fees , or required
Certified Activity Reports due CITY are received by
j CITY after the due date, an administrative fee of
j $50 . 00 shall be added to the payment due, and the
total amount shall become immediately due and payable
to the CITY.
H. Any payment cue and not received accrues interest from
the due date until paid in full at the annualized rate
of twelve percent ( 12% ) . Interest on disputed amounts
may not be c ,arged to OPERATOR if the dispute is
resolved in OPERATOR' s favor.
I . If OPERATOR fails to furnish CITY with the Certified
Activity Report required in paragraph 2 (C) above, by
i the 20th day of each month, CITY may determine
OPERATOR' s oavment due by assuming that the difference
between the percentage of Gross Receipts and the
monthly 'Lees and charges and Ready/Return Car Parking
Space rent wing currently assessed for the preceding
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month was One Hundred and Ten percent ( 110% ) of the
OPERATOR's previous month' s Gross Receipts . After
delivery of a late Certified Activity Report by OPER-
ATOR, CITY will recalculate the underpayment, but any
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overpayment will not be repaid to OPERATOR. OPERATOR
remains responsible for submitting a Certified
Activity Report for each month regardless of any
estimate made by CITY.
A BAT EME W r
3 . Abatement Event. OPERATOR is entitled to abate the annual
fees and charges being currently assessed and payable under this
Agreement upon the occurrence of , and for the duration of, any of
the following:
A. Any event ( not the fault of OPERATOR) which so damages
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the Premises that the normal conduct of OPERATOR' s
business is prevented for a period exceeding thirty
( 30 ) consecutive days ;
B . Any event which results in the partial or complete
closure of the Airport to commercial air transport of
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passengers for a period exceeding thirty ( 30 ) consecu-
tive days .
4 . Abatement Amount. If any abatement event as described in
events A and B, of paragraph 3 of this Article occurs , the annual
fees and charges being currently assessed and payable by OPERATOR,
with respect to the period during which the abatement event remains
unremedied, must be reduced in an equitable manner in light of the
impact of the abatement event on OPERATOR' s profitability, but in
no event by less than the same percentage of OPERATOR' s reasonably
anticipated Gross Receipts for that period ( based upon past
experience under this or similar concession agreements at the j
airport ) cahich OPERATOR osp as a =suit of the abatement event.
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ART 2 CLE V
P E RFORMAN CE BOND L E TTM R O F CRE D I T
1 . Prior to beginning actual operation, and during the Term
I' of this Agreement, OPERATOR will post with the City Clerk of CITY
a performance bond or letter of credit in the amount of Ten
Thousand Dollars ( $10 , 000 . 00 ) in favor of the City of Redding to
assure payment under the terms set forth herein. For the purpose
of this Article, this is construed to mean a negotiable instrument
issued by a National or State insurance company or bank doing
business within the State of California in a form acceptable to the
CITY. Cancellation of the performance bond or letter of credit for
whatever reason shall forthwith terminate this Agreement.
2 . Certificate of Deposit.
A. In addition to a performance bond and letter of
credit, the CITY may accept a certificate of deposit
(CD) made out to the City of Redding. Such CD shall
provide for the CITY' s absolute right to attach to
said CD at any time during the Agreement Term in the
amount up to and including ten thousand dollars
( $10 , 000 . 00 ) , and shall effectuate the CITY's ability
to do same.
B . Any CD contemplated by the OPERATOR with resect to
this Agreement must be received and deemed acceptable
by the City Attorney of CITY.
! 3 . Said bond or letter of credit will be subject to attach-
ment by the CITY upon the expiration of thirty ( 30 ) days after any
monthly fee required by this Agreement becomes due and payable.
The OPERATOR will furnish the CITY with a copy of the payment bond
or letter of credit . The payment bond or letter of credit will be
imaintained and renewed as necessary to remain in force throughout
i the Term of this Agreement .
4 . The amount of the performance bond or letter of credit may
be reviewed and increased or decreased at the discretion of the
CITY at intervals of not lass than two ( 2 ) years during the Term of
this Agreement, provided that the increased or decreased amount of
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any performance bond or letter of credit required under this
Article will not exceed a reasonable estimate of the average
revenue payable to the CITY under this Agreement during any 120-day
period, as selected by the CITY.
5 . A claim will be made by CITY against said performance bond
or letter of credit in the event of one of the following:
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A. Failure on the part of OPERATOR to make timely payment li
of any amounts due CITY under the terms and conditions
of this Agreement ( refer to paragraph V. 2 . above) ;
B. Any damage to or loss of Municipal Airport property
caused by OPERATOR;
C. Removal and storage expense incurred by CITY if
OPERATOR does not promptly remove its property from
the Premises within fifteen ( 15 ) calendar days after
this Agreement is terminated; or
D. Costs incurred by CITY at the time the Agreement is
terminated if OPERATOR fails to leave Premises in
satisfactory condition.
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ART=CLE V 2
A LID =T � REPORTS � B OOK S AND RECORD S
1 . In order to provide a satisfactory basis for being able to
determine payments due the CITY hereunder, the OPERATOR must
establish and maintain books and records with respect to the
operation and services authorized by this Agreement, in accordance
with generally accepted accounting principles . The OPERATOR' s
books and records must, in the determination of the CITY, enable
the OPERATOR to accurately report and the CITY to easily check the
payments due the CITY hereunder.
2 . All books , ledgers , journals , accounts and records related i
to the Business performed under this Agreement shall be open for
examination and audit by the CITY, during ordinary business hours .
Ali such books , records and supporting data will be kept by the
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OPERATOR on the Airport, if feasible . However, if it is not
feasible for the OPERATOR to maintain its books on the Airport, the
CITY will have the option of -=-�it'ner paving the necessary books
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transported to a location in Redding din for said examination or
g audit
OR have the audit performed at a location outside the City of
Redding. If the CITY elects to have the audit performed at a
location outside the City of Redding, the OPERATOR will pay the
CITY for the audit costs incurred. The audit costs will include
round-trip travel from the auditor ' s duty station to the location
j at which the books and records are maintained as well as per diem
at the then current out-of-City rate for each day of travel and on-
site audit work. Subsequent to the audit, the CITY will bill the
OPERATOR for the costs incurred and the billing will be supported
by a copy of the travel authorization form then currently in use by
the CITY.
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3 . Should any examination, inspection or audit of OPERATOR's
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books and re : --cis by the CITY disclose an underpayment by OPERATOR,
the OPERATOR shall promptly pay the difference including all costs
incurred in the conduct of the examination or audit plus interest
as specified in Article IV, Payments . If the difference is
collected by the CITY through litigation, the OPERATOR shall be
liable to the CITY for its full costs and attorney' s fees incurred
to collect such underpayment. Further, the OPERATOR shall be
liable for such full costs and attorney' s fees in the event of any
legal action to levy and collect on the payment bond under Article
V or any and all actions to collect monies due the CITY.
4 . Should any examination, inspection or audit of OPERATOR's
books and records by the CITY disclose an overpayment by OPERATOR,
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then the CITY and OPERATOR shall negotiate with respect to estab-
lishing reimbursement -for such overpayment on a cash and/or credit
basis .
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5 . All books , figures , records , reports , and statements
submitted to the CITY by OPERATOR Become public information which
is available for public review.
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6 . OPERATOR shall furnish the CITY with such other financial
or statistical reports as the CITY may require from time to time
regarding the concession or components thereof . This subsection
shall not be construed as requiring the OPERATOR to submit data to
the CITY which is in the nature of confidential business informa-
tion or trade secrets .
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7 . Within ninety ( 90) days after the end of each calendar
year during the Term of this Agreement, the OPERATOR must furnish
the CITY' s Airport Director with a true and accurate financial
statement reflecting the OPERATOR' s Gross Receipts derived from
Business transacted under this Agreement during the preceding
calendar year. The statement must be a compilation by a Certified
Public Accountant with a separate verification by the OPERATOR that
the information supplied to the Certified Public Accountant was
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accurate . j
8 . The OPERATOR agrees to use serially numbered documents for
each Transaction and shall keep record of all such documents , both
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used and unused.
9 . In addition to the reports and records specifically
required by this Article VI , the OPERATOR shall supply to the CITY
any other reasonable financial or statistical reports related to
this Agreement that the CITY may require during the Term of this
Agreement.
2%1Q-1 T2CZ.E V2 =
I M P ROVE ME N T S
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1 . The OPERATOR accents the Premises in their present condi-
tion. Anv alterations , construction, or improvements desired by
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the OPERATOR on the Premises must be performed at no cost to the
CITY and shall be subject to the prior written approval of the
Airport Director. ';Then reouired c_- the CITY to do so, the OPERATOR
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will submit plans and specifications prior to any alterations,
construction or improvements .
2 . The display by the OPERATOR of any signs , advertising or
similar matter on the Premises without the prior written approval
of the Airport Director is prohibited. Any advertisement not
directly related to the OPERATOR' s Business is prohibited.
3 . The OPERATOR is required to provide a Business "logo" type
sign at its corresponding counter location. OPERATOR is required
to signage for its Ready/Return Car Parking Spaces; these
signs must be approved by the Airport Director.
4 . Unless otherwise agreed by the parties , any partitions,
wiring and piping, or other improvements installed on the Premises
by the OPERATOR must be removed by the OPERATOR, at the termination
or expiration of this Agreement, and thereby leaving the Premises
in good condition. The CITY may grant additional time for the
removal of improvements if hardship is established by the OPERATOR.
If, in the CITY' s opinion, removal will damage the Premises or the
Terminal , the CITY may either prohibit removal or require the
OPERATOR to repair all damage connected with removal .
_ . "itle to any improvements not removed from the Premises as
provided herein passes to the CITY.
6 . Upon request by z!-ie CITY, the OPERATOR shall deliver to
the CI"_'Y three ( 3 ) copies of as-built drawings showing the location
and di:;,ensions of improvements placed or constructed on the
Premises by the OPERATOR.
ART=CLE V= = 2
MA I N T E NAM C E
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'_ . The OPERATOR shall maintain the Premises in good repair
and appearance and in a safe condition at all times . The OPERATOR
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shall do, or cause to be done without delay, all those things
which, in the opinion of the Airport Director, are necessary or
desirable in the interest of safety or to maintain the Premises in
good repair and appearance.
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2 . The CITY reserves the right to enter onto the Premises to
make any repairs or alterations necessary to the proper functioning
of the Terminal without liability to the OPERATOR for any damage to
the Premises . As a result of any entry pursuant to this provision,
the CITY will only be liable for its own negligence and for !
returning the Premises to their former condition using standard
materials .
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3 . The CITY will maintain the structure of the Terminal, the
roofs and exterior walls . The CITY will also clean and maintain
the public areas in the Terminal .
4 . The CITY will maintain the electrical , plumbing, and
heating systems on the Premises and in the Terminal in good
condition and repair. The CITY may refuse to maintain any systems
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installed on the Premises by the OPERATOR and may charge the
OPERATOR for any repair resulting from the OPERATOR' s negligence.
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5 . The OPERATOR hereby expressly waives any and all claims
and holds the CITY harmless for damages arising or resulting from
failures or interruption of utility services furnished by the CITY
herein including but not 'limited to stoppages in electrical energy,
the quantity or temperature of water, space heating, or for the
failure or interruption of any public or passenger conveniences .
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ART I CLE I X
L T E N S
The OPERATOR shall :peep the Premises free of all liens , pay
ail costs for labor and materials arising out of any construction
or _mprovements by the OPERATOR on the Premises , and hold the CITY �
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harmless from liability for any liens , including costs and attorney
fees . By this provision, the CITY does not recognize that it is in
any way liable for any liens on the Premises .
ART=CLE X
SERV 2 C E
OPERATOR shall operate the e Business in accordance with the
highest standards and practices of the automobile rental trade.
Further, OPERATOR understands and acknowledges that the CITY' s
obligation to facilitate air travel of the public at the Airport
includes efficiently operated Rent-A-Car Concessions for the use of
air travelers and other members of the public . Consequently, and
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as an additional consideration to the CITY for awarding this
Agreement to the OPERATOR, OPERATOR covenants as follows :
A. To conduct its operations in a quiet, orderly and courte-
ous manner, so as not to annoy, disturb, or offend
customers , patrons , or tenants of the Airport.
B . All Automobile safety related items must be maintained in
an operable condition at all times .
C. OPERATOR shall provide hours of operations in a manner
that will serve the needs of the traveling public who use
regularly scheduled passenger flights .
D. OPERATOR shall have the capability to provide both local
rentals and nationwide one-A7ay rentals .
E . OPERATOR shall 'e part of a nationwide computerized
reservations system allowing rental car reservations to be
made from anywhere in the nation through airline and
I, travel agent computer systems .
F . OPERATOR shall have a nationwide "800" phone number
reservation service .
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G. OPERATOR shall provide nationwide rental car replacement
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to the customer for rental cars that develop mechanical II
problems .
H. All Automobiles used by the OPERATOR for the Business must
have a Business logo or name placed in a consistent
location on the windshield or rear window of each Automo-
bile. Minimum logo size shall be two ( 2 ) square inches in
area.
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I . Except in case of emergencies , the OPERATOR shall obtain
the approval of the Airport Director prior to any extended
periods of concession space closure, such extended period
being defined as anything in excess of five ( 5) calendar
days .
J. OPERATOR and its employees , when in the presence of its
customers and when in or around the Terminal and when in
or around the Ready/Return Car Parking Spaces , shall
adhere to a standard of dress appropriate for same. As
examples : OPERATOR and its employees shall not wear
cutoffs or undershirt-type shirts or go without shoes .
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K. OPERATOR and its employees will adhere to the "No Smoking"
policy within the lower level of the passenger terminal
and will adhere to any subsequent smoking policy or law
approved or enacted by CITY or other agency having
jurisdiction over the passenger terminal .
L. OPERATOR shall insure a copy of its current and updated
schedule of hours of operation is maintained on file with
the Airport Director.
M. OPERATOR and its employees shall abide by all reasonable
rules , regulations , policies , and instructions of the
Airport Director or his designee.
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ARTS CLE X I
G E N E RAL COVENANT S
1 . TERMINATION BY CITY.
A. The CITY may cancel this Agreement and recover
Y g possession
of the Premises by giving the OPERATOR thirty ( 30 ) days '
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events listed below, unless the breach is cured within
said thirty ( 30) days :
( i ) Failure by OPERATOR to account for and pay to
CITY, as provided herein any and all amounts due
and owing to CITY from OPERATOR.
j ( ii ) Failure by OPERATOR to submit a timely and accu-
rate Certified Activity Report with the payment to
the CITY as required by Article IV, paragraph 2 .
( iii ) The occurrence of any act or omission on the part
of OPERATOR which deprives it of the rights,
powers , licenses , permits , and authorizations
necessary for the lawful and proper conduct and
operation of the services and activities author-
ized herein.
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( iv) The filing by or against OPERATOR of any petition
in bankruptcy, either voluntary or involuntary, or
the making by OPERATOR of any assignment for the
benefit of .reditors , either of which actions
shall terming-e this Agreement and bar the passing
thereunder of any benefits to creditors , assignees
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or transferees of OPERATOR, provided, however,
that OPERATOR will have sixty ( 60) days to dismiss
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any petition filed against it .
( v) The abandonment , discontinuance, or assignment by
OPERATOR, without written consent of the CITY, of
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any or all of the operations and services permit-
ted or required herein, except as provided herein.
(vi ) The appointment of a trustee or receiver for the
OPERATOR' s assets in a proceeding brought by or
against the OPERATOR.
(vii ) The filing of any lien against the Premises as a
result of any act or omission of OPERATOR and such
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lien is not removed, enjoined or a bond for satis-
faction of such lien is not posted within sixty
( 60 ) days .
(viii ) The levy of any attachment or execution, or the
appointment of any receiver or the execution of
any other process of any court of competent juris-
diction which is not vacated, dismissed or set I
aside within a period of ninety ( 90 ) days and
which does , or as a direct consequence of such
process will , interfere with OPERATOR' s use of the
Premises or with its operations under this Agree-
ment.
( ix) The failure of the OPERATOR to operate the busi-
ness authorized in this Agreement for a period of
more than fourteen ( 14 ) consecutive calendar days .
( x) Cessation or deterioration of any service for any
period which, in the determination of the CITY,
materially and adversely affects the operation or
service required to be performed by OPERATOR under
this Agreement .
( xi ) The failure of the OPERATOR to perform any provi-
sion or covenant in this Agreement .
( xii ) The fail :re of the OPERATOR to keep in force
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any lencth of time, the insurance required by
article 71 , caracraph 5 of this Agreement.
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No waiver by the CITY at any time of any default on
the part of OPERATOR in the performance of any of the
terms , covenants or conditions hereof to be performed,
kept or observed by OPERATOR shall be, or be construed to
be, a waiver at any time thereafter by the CITY of any
other or subsequent default in performance of any of said
terms , covenants or conditions , and no notice by the CITY
shall be required to restore or revive time as of the
essence hereof after waiver by the CITY of default in one
or more instances . The granting of a waiver by the CITY
of any provision or covenant in this Agreement cannot be
enforced or relied upon unless the waiver is in a writing
signed on behalf of the CITY.
B. Upon termination by the CITY, all rights , powers, privi-
leges and authority granted to OPERATOR under this
Agreement shall cease immediately and OPERATOR hereby
agrees to vacate the Premises used or occupied by it in
connection with its operation hereunder.
C . The exercise by the CITY of the remedies and rights
provided in this agreement shall not be exclusive but
shall be cumulative and shall in noways affect any other
right or remedy available to CITY.
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2 . VACATION OF PREMISES BY OPERATOR.
OPERATOR covenants and agrees to yield and deliver possession
of the Premises to the CITY on the date of the termination,
cancellation or expiration of this Agreement promptly, peaceably,
quietly and in as good order and condition as the same now or may
be hereafter improved by OPERATOR or the CITY, reasonable use and
wear and tear excepted.
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! The OPERATOR shall 'e allowed a maximum of Forty-eight ( 48)
hours Following the effect_, ve date of the cancellation of the
Agreement -.within which tc femove all of the OPERATOR' s personal
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property, equipment, furniture and fixtures from the Premises The
OPERATOR and the CITY agree, as part of the consideration for this
Agreement, that all property remaining on the Premises after the
expiration of said forty-eight ( 48 ) hours will become the sole
property of the CITY, with full title vested in the CITY, and the
CITY may remove, modify, sell , or destroy the property as it sees
fit .
3 . CITY' S RIGHT OF RE-ENTRY.
The CITY shall , as an additional remedy, upon the giving of j
written notice of termination as provided herein, have the right to
re-enter the Premises and every part thereof on the effective date
of termination without further notice of any kind, and may regain
and resume possession either with or without the institution of
summary or legal proceedings or otherwise. Such re-entry or
regaining or resumption of possession, however, shall not in any
manner affect, alter, or diminish any of the obligations of
OPERATOR under this Agreement .
4 . ASSIGNMENT OR SUBLETTING.
OPERATOR shall not assign this Agreement or any interest
herein, and shall not sublet the Premises or any part thereof , or
any right or privilege appurtenant thereto, or suffer any other
person, agents and employees of OPERATOR excepted, to occupy or use
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the Premises or any portion thereof without the written consent of
CITY first had and obtained. A consent by CITY to one assignment,
subletting, occupancy, or use by another party shall not be deemed I
to be a consent to any subsequent assignment, subletting, occupan-
cy, or use by another person or entity. Any such assignment,
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subletting, occupancy, or use by another person or entity without
such consent by CITY shall be void and shall , at the option of
CITY, terminate this Agreement . This agreement shall not, nor shall
anv interest herein, be assianabie as to the interest of OPERATOR,
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by operation of law, without the written consent of CITY. CITY
;j agrees that it will not arbitrarily or capriciously withhold its
consent required hereunder.
5 . HOLD HARMLESS ; INSURANCE.
A. OPERATOR shall assume all responsibility and liability in
connection with its operations under this Agreement, and
OPERATOR assumes and agrees to pay and hold CITY, its
officials , officers , agents , employees , volunteers and
members of the Airports Commission harmless from any
responsibility or liability in connection with OPERATOR' s
use and occupancy of these Premises during the Term of
this Agreement or any extension thereof , including damages
for injuries to persons or property of persons using said
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B. It is specifically understood and agreed as a condition of
this Agreement that OPERATOR shall , at its own expense,
obtain and keep in full force and effect Commercial
Liability Insurance, covering all Premises operations , and
products and completed operations , including contractual
liability as respect to this agreement. Limits of
coverage shall ue no less than One Million Dollars
( $1 , 000 , 000 . 00 ) per occurrence/Two Million Dollars
( $2 , 000 , 000 . 00 ) aggregate ( if applicable) combined single
limits for bodi1v injury, personal injury, and property
damage . Said insurance shall be in form and content
sufficient and adequate to save CITY, its officials ,
officers , agents , empioyees , volunteers and members of the
Airports Commission harmless from any and all claims
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arising out of the OPERATOR' s operations under this
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Aureement .
C . OPERATOR shall also secure and maintain Automobile
Liability, at least as -road as Insurance Services Office
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form number CA0001 ( Ed. 1/87 ) , covering all owned, non-
owned, and hired commercial vehicles used on
the Airport
premises in support of the OPERATOR' s Business opera- j
tions , in an amount not less than One Million Dollars
( $1, 000 , 000 . 00 ) combined single limits .
D. OPERATOR shall also secure and maintain property insurance
against all risks of loss to any OPERATOR improvements ,
betterments, contents , including OPERATOR' s furniture,
equipment, and inventory, at full replacement value.
OPERATOR further agrees that in the event of any loss or
partial or complete destruction of those OPERATOR improve-
ments , betterments , and contents , any proceeds of insur-
ance received by OPERATOR shall be utilized in the
replacement, reconstruction or repair of the damaged or
destroyed improvements , betterments , and contents .
E . OPERATOR shall also maintain statutory Workers ' Compensa-
tion Insurance and Employers ' Liability Insurance,
with limits of not less than One Million Dollars
( $1 , 000 , 000 . 00 ) per occurrence, on all persons employed by
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Both the Workers ' Compensation and Employers ' Liability
policies shall contain the insurers ' waiver of subrogation
in favor of CITY, its officials , officers , agents , employ-
ees , volunteers , and members of the Airports Commission.
F . The Commercial Liability and Automobile Liability insur-
ance policies are to be endorsed as follows :
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( i ) CITY, its officiais , officers , agents , employees ,
volunteers and members of the Airports Commission
are to be covered as additional insureds . Such
endorsements shall include liability arising out
of the premises owned, occupied, or used by OPER-
ATOR, and :;roducts and completed operations of the
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this Agreement. The endorsements are to be signed by a
person authorized by that insurer to bind coverage on its
behalf .
H. All endorsements are to be received and approved by the j
City of Redding_ before the inception of the Agreement.
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6 . RADIO INTERFERENCE. j
At CITY' s request, OPERATOR shall discontinue the use of any
machine or device which interferes with any government operated
transmitter, receiver, or navigation aid until the cause of the
interference is eliminated.
7 . CONFLICTS BETWEEN CONCESSIONS .
In the event of a conflict between the OPERATOR and any other
tenant, concessionaire, lessee, or operator on the Airport as to
services to be provided 'y respective tenants , concessionaires ,
lessees or operators , the CITY will decide which services may be j
provided by each tenant, concessionaire, lessee, or operator and
OPERATOR agrees to be bound by such decision, subject to any rights
the OPERATOR may have to seen judicial relief .
8 . COMPLIANCE WITH LAW.
OPERATOR shall , at its sole cost and expense, comply with all
requirements of Federal , State, and local authorities now in force
or which may hereafter be in force pertaining to said Premises and
to the operations thereon, and shall faithfully observe in the use
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of said Premises all Federal , State and local statutes now in force
or which may hereafter ;e in force. The judgment of any Court of II
competent jurisdiction or the admission of OPERATOR in any action
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or proceeding against OPERATOR, whether CITY be a party thereto or
not, that OPERATOR has :'_elated any such ordinance or statute in
the use of the Premises , .=hall be conclusive of the fact as between
CITY and OPERATOR. This :.areement shall be interpreted pursuant to
the laws of the State cf --al_for:ia .
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this Agreement. The endorsements are to be signed by a
person authorized by that insurer to bind coverage on its
behalf .
H. All endorsements are to be received and approved by the
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City of Redding before the inception of the Agreement.
6 . RADIO INTERFERENCE.
At CITY' s request, OPERATOR shall discontinue the use of any
machine or device which interferes with any government operated
transmitter, receiver, or navigation aid until the cause of the
interference is eliminated.
7 . CONFLICTS BETWEEN CONCESSIONS .
In the event of a conflict between the OPERATOR and any other
tenant, concessionaire, :essee, or operator on the Airport as to
services to be provided 'y respective tenants , concessionaires, I
lessees or operators , the CITY will decide which services may be
provided by each tenant, concessionaire, lessee, or operator and
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OPERATOR agrees to be bound by such decision, subject to any rights
the OPERATOR may have to seek judicial relief .
8 . COMPLIANCE WITH LAW.
OPERATOR shall , at its sole cost and expense, comply with all
requirements of Federal , State, and local authorities now in force
or which may hereafter be in force pertaining to said Premises and
to the operations thereon, and shall faithfully observe in the use
of said Premises all Federal , State and local statutes now in force
or which may hereafter be in force. The judgment of any Court of
competent jurisdiction or the admission of OPERATOR in any action
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or proceeding against OPERATOR, whether CITY be a party thereto or
not, that OPERATOR has violated any such ordinance or statute in
the use of the Premises , =hall be conclusive of the fact as between
CITY and OPERATOR. This =oreement shall be interpreted pursuant to
the laws of the State cf :ali-ornia .
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9 . WASTE; QUIET CONDUCT.
OPERATOR shall not commit or suffer to be committed any waste
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upon the Premises , nor any nuisances or other act or thing which
may disturb the quiet enjoyment of any other occupant or user of
adjoining premises owned by CITY.
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10 . : ':SPECTION.
OPERATOR shall permit CITY to inspect said Premises and any
improvements therein at all reasonable times during the Term of
this Agreement and any extension thereof .
11 . CITY ADMINISTRATION.
Whenever OPERATOR is required to secure the approval or
consent from CITY under this Agreement, CITY shall mean the
Director of Airports of the City of Redding. However, at the
option of the Director of Airports of CITY, or the OPERATOR, and
according to proper procedure, any such questions may be referred
to the City Council of the City of Redding whose decision thereon
! shall be final .
! 12 . ENTIRE AGREEMENT.
This Agreement sets forth the entire Agreement between the
parties hereto . Modifications or additions to this Agreement shall
be considered valid only when mutually agreed upon by the parties
in writing.
13 . INVALID PROVISIONS .
In the event any covenant, condition, or provision herein
contained is held invalid by any Court of competent jurisdiction,
the °_nvalidity of the same shall in no way affect any other
covenant, condition, or provision herein contained, provided that
the validity of any such covenant, condition, or provision does not
materially prejudice either CITY or OPERATOR in their respective
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rights and obligations contained in the valid covenants, condi-
tions , and provision of this Agreement.
14 . BID DOCUMENTS .
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It is expressly understood and agreed that the Invitation for
Bids , Instructions to Bidders , the basic bid specifications,
including any addenda thereto, the Bidder' s Affidavit and bid
deposit required under said instructions are hereby made a part of
this Agreement, and each of the parties hereto does hereby
expressly covenant and agree to carry out and fully perform each
and all of the provisions of said documents upon its part to be
performed. The CITY reserves the right, during the full Term of
the Agreement, to use the succession of Bidders in the event a
successful Bidder fails to perform any portion of the Agreement.
15 . UNITED STATES OF AMERICA RESTRICTIONS .
A. It is understood and agreed that this Agreement, insofar j
as it pertains to the use of the Redding Municipal Air-
port , is subject to the covenants , restrictions and
reservations contained in the following instruments to
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which the United States of America is a party:
( i ) Quitclaim Deed dated June 6 , 1947 , to the City of
Redding;
( ii ) Instrument of Transfer dated October 7 , 1947 , to
the City of Redding; and
( iii ) Grant Agreements of record executed by the City of
Redding in connection :17ith Federal Aid Airport
Projects .
B . To the extent t :at the United States of America may
release said Airport or any part thereof from any of said
covenants , restrictions , and reservations , OPERATOR shall
likewise be released by CITY. I'
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16 . FAA REQUIREMENTS .
A. To comply with Federal Aviation Administration require-
ments , OPERATOR, for itself, its heirs , executors ,
representatives , successors and assigns , as a part of the
consideration hereof , does hereby covenant and agree, as
material terms of this Agreement: .
( i ) That in the event facilities are constructed,
maintained, or otherwise operated on the property
described in this Agreement for the purpose for
which a Department of Transport program or activ-
ity is extended, or for another purpose involving
the provision of similar services or benefits,
OPERATOR shall maintain and operate such facili-
ties and services in compliance with all other
requirements imposed pursuant to Title 49 , Code
of Federal Regulations , DOT, Subtitle A, Office
of the Secretary, Part 21 , Nondiscrimination in
Federally Assisted Programs of the Department of
Transportation--Effectuation of Title VI of the
Civil Rights Act of 1964 , and as said Regulations
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may be amended.
( ii ) That ( 1 ) no person on the grounds of race, color,
or national origin shall be excluded from partic-
ipation in, denied the benefits of , or be other-
wise subjected to discrimination in the use of
said facilities ; ( 2 ) that in the construction of
any improvements on, over, or under such lands
and the furnishing of services thereon, no person
on the grounds of race, color, or national origin
shall be excluded from participation in, denied
the benefits of , or otherwise be subject to
discrimination; and ( 3 ) that OPERATOR shall use
the Premises in compliance with all other re-
quirements imposed by or pursuant to Title 49
Code of Federal Regulations , Department of Trans-
portation, Subtitle A, Office of the Secretary,
Part 21 , Nondiscrimination 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.
( iii ) That in the event of breach of any of the above
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nondiscrimination covenants , CITY shall have the
right to term nate this Aureement and to re-enter
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and repossess said Premises and the facilities
thereon, and hold the same as if said Agreement
had never been made or issued. ThisP rovision
does not become effective until the procedures of
49 CFR Part 21 are followed and completed, in-
cluding expiration of appeal rights .
( iv) That OPERATOR shall furnish its accommodations
and/or services on a fair, equal , and not unjust-
ly discriminatory basis to all users thereof, and
it shall charge fair, reasonable, and not unjust-
ly discriminatory prices for each unit or ser-
vice; provided that OPERATOR may be allowed to
make reasonable and nondiscriminatory discounts ,
rebates, or other similar type of price reduc-
tions to volume purchasers .
(v) That noncompliance with paragraph 15 ( iv) above
shall constitute a material breach thereof; and
in the event of noncompliance CITY shall have the
right to terminate this Agreement and the estate
hereby created without liability therefor, or, at
the election of CITY or the United States , either
or both Governments shall have the right to
judicially enforce provisions .
( vi ) That OPERATOR agrees that it shall insert the
above five provisions 15 ( i ) through 15 (v) in any
agreement, contract, etc. , by which said OPERATOR
grants a right or privilege to any person, firm,
or corporation to render accommodations and/or
services to the public on the Premises herein.
( vii ) That OPERATOR assures that it will undertake an
affirmative action program as required by 14 CFR
Part 152 , Subpart E, to ensure that no person
shall , on the grounds of race, creed, color,
national origin, or sex, be excluded from partic-
ipating in any employment activities covered
in 14 CFR Part 152 , Subpart E . OPERATOR assures
that no person shall be excluded on these grounds
from participating in or receiving the services i
or benefits of any program or activity covered by
this subpart. OPERATOR assures that it will
require t;at its covered suborganizations provide
assurances to OPERATOR that they similarly will
undertake af_i=ative action programs , and that
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they will require assurances from their sub-
organizations , as required by 14 CFR 152, Subpart
E, to the same effort.
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(viii ) That CITY reserves the right to further develop
or improve the landing area of Redding Municipal
Airport as it sees fit, regardless of the desires
or view of OPERATOR and without interference or
hindrance.
( ix) That CITY reserves the right, but shall not be
obligated to OPERATOR, to maintain and keep in
repair the landing area of Redding Municipal
Airport and ail publicly-owned facilities of said
Airport, together with the right to direct and
control all activities of OPERATOR in this re-
gard.
( x) That this Agreement shall be subordinate to the
provisions and requirements of any existing or
future agreement between CITY and the United
States relative to the development, operation, or
maintenance of the Redding Municipal Airport.
( xi ) That there is hereby reserved to CITY, its suc-
cessors 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 herein. This public right of flight
shall include the right to cause in said airspace
any noise inherent in the operation of any air-
craft used for navigation or flight through said
airspace, or landing at, taking off from, or
operation on the Redding Municipal Airport.
( xii ) That OPERATOR agrees to comply with the notifica-
tion and review requirements covered in Part 77
of the Federai Aviation Regulations in the event
future construction of a building is planned for
the herein Premises , or in the event of any
planned modification or alteration of any present
or future building or structure situated on the
herein Premises .
( xiii ) That OPERATOR, by accepting this Agreement,
expressly agrees for itself , its successors and
assigns , that .•rill not erect nor permit the
erection of anv structure or object nor permit
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the growth of any tree, on the land subject to
this Agreement above any mean sea level elevation
that would be in non-compliance with Part 77 of
the Federal Aviation Regulations . In the event
the aforesaid covenants are breached, CITY re-
serves the right to enter upon the land/Premises
hereunder and to remove the offending structure
or object and cut the offending tree, all of
which shall be at the expense of OPERATOR.
( xiv) That OPERATOR, by accepting this Agreement,
agrees for itself , its successors and assigns ,
that it will not make use of the Premises herein
in any manner which might interfere with the
landing and taking off of aircraft from the
Redding Municipal Airport, or otherwise consti-
tute a hazard. In the event the aforesaid cove-
nant is breached, CITY reserves the right to
enter upon the herein Premises and cause the
abatement of such interference at the expense of
OPERATOR.
( xv) That it is understood and agreed that nothing
herein contained shall be construed to grant or
authorize the granting of an exclusive right
within the meaning of Section 308a of the Federal
Aviation Act of 1958 ( 49 U. S .C. 1349a) .
( xix) That this Agreement and all provisions hereof
shall be subject to whatever right the United
States Government now has or in the future may
have or acquire, affecting the control, opera-
tion, regulation and taking over of said airport
or the exclusive or nonexclusive use of the
airport by the United States during the time of
war or National emergency.
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17 . NOTICE .
Any notices or demands that may be given by either party
hereunder, including notice of default and notice of termination,
shall be deemed to have been idly and properly given when made in
writing, enclosed in a sealed envelope and deposited in the United
States Post Office wit~ postace prepaid, certified mail, addressed
as follows :
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To CITY: City of Redding
c/o Director of Airports
P . 0. Box 496071
Redding, CA 96049-6071
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To OPERATOR: S . J. Denham, Inc .
dba Hertz Rentals
P . 0. Box 990326
Redding, CA 96099-0326
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18 . ATTORNEY' S FEES .
In the event suit or action is instituted to enforce any of
the provisions of this Agreement, the prevailing party therein
shall be entitled to attorney ' s fees and other sums as may be
adjudged reasonable and necessary at trial and on appeal .
19 . BINDING ON SUCCESSORS .
The provisions and conditions of this Agreement shall be
binding upon and inure to the benefit of the heirs , executors ,
administrators , personal representatives , successors , and assigns
of the parties hereto .
20 . TIME OF ESSENCE.
Time is of the essence of this Agreement and of each and every
provision hereto .
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21 . DISCRIMINATION.
A. Notwithstanding any other provisions of this Agreement,
OPERATOR shall make its services available to the public
,,without unjust discrimination; provided, however, that
OPERATOR shall have the privilege of refusing service to
any person or persons for just cause, but not to discrimi-
nate by virtue cf race, creed, sex, or color. OPERATOR
shall furnish -aid services on a fair, equal , and not
unjustly discriminatcry basis to all persons and users
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thereof , and will charge fair, reasonable, and not
unjustly discriminatory prices for such services .
B. This Agreement is subject to the requirements of the U. S .
Department of Transportation' s regulations , 49 CFR part
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23 , subpart F. The OPERATOR agrees that it will not
discriminate against any business owner because of the
owner ' s race, color, national origin, or sex in connection
with the award or performance of any concession agreement
covered by 49 CFR part 23 , subpart F.
C . The OPERATOR agrees to include the above statements in any
subsequent concession agreements that it enters and cause
those businesses to similarly include the statements in
further agreements .
22 . TAXES .
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OPERATOR agrees to pay promptly all taxes and assessments
which shall be assessed upon any real or personal property,
including possessory interest taxes , owned by OPERATOR or in which
OPERATOR has leasehold interest to the extent of OPERATOR' s
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interest therein, as such interest may appear at the time when said i
taxes or assessments become due or payable under any levy or
assessment by any legally authorized governmental agency.
23 . INTEGRATION AND MERGER.
This Agreement sets forth all the terms , conditions , and
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agreements of the parties and supersedes any previous understand-
ings or agreements regarting the Premises whether oral or written.
No modification or amendment of this Agreement is effective unless
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in writing and signed by '-oth the parties .
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24 . CEQA.
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It has been determl-ed that this matter is categorically
exempt from the provisions of the California Environmental Quality
Act .
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IN WITNESS WHEREOF, the parties hereto have executed this
Rent-A-Car Concession Agreement and Permit, consisting of this and
the preceding 36 pages , in the presence of their respective
officers duly authorized in that behalf on the day and year set
forth below.
CITY OF REDDING
DATED: 1993 By:
CARL ARNESS , Mayor
S . J. DENHAM, INC. , dba
.� HERTZ RENTALS
DATED: , 1993 By:
RANDY J. DENHAM, President
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ATTEST: FORM APPROVED:
CONNIE STROHMAYER, City Clerk RANDALL A. HAYS , City Attorney
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H = OPERATOR
EXHIBIT "A"
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WON- - CITY OF REDDING
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!ITERMINAL BUILDING RENTAL SPACE!!
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REDDING MUNICIPAL AIRPORT
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l :
H H HH 11H HI H �H �H H�
H
H H
H - H
H I H
H I H
H
H i I
H I
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77
77
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EXHIBIT "B"
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CITY OF REDDING
'!!READY/RETURN CAR PARKING SPACESII
REDDING MUNICIPAL AIRPORT
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RE D D=NG MU N 2 C=PAL A=RPORT
RENT—A—CAR CON CE S S=ON
AGREEMENT AND PERM 2 T
CERT 2 F I E D ACT=V=T Y REPORT ( CAR ) i
From the period of 199_ to 199
Operator Name:
TOTAL GROSS RECEIPTS is
FOR THIS PERIOD: $ Date Prepared:
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GRO S S CONCESSION CONCE S S I ON
RE CE=P T S FEE�s FE E D UE
$ 0 - 20, 000 .00 x 8% _ $
$ 20 ,000 . 01 - $ 40 ,000 . 00 x 9% _ $
$ 40 , 000 . 01 PLUS x 10% _ $
L.
1 TOTAL CONCESSION FEE $
2 OPERATOR'S MINIMUM GUARANTEE $
PAYMENT DUE (GREATER THAN 1 AND 2 ABOVE) $
Total Car Rental Transactions for the Reporting Month
I hereby certify that the move is a true statement from the records of:
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Business :
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Address :
Signature:
Title:
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EXHIBIT "C"
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CITY OF REDDING
ii CERTIFIED ACTIVITY REPORT
REDDING MUNICIPAL AIRPORT
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