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HomeMy WebLinkAboutReso 1990-258 - Approving the lease between the city of redding and tatsia ragan 41V 410 I •t r 11 • I RESOLUTION NO. 9/2-,41''S') A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE LEASE BETWEEN THE CITY OF REDDING AND TATSIA RAGAN, DOING BUSINESS AS PACIFIC GIFTS , FOR A GIFT SHOP CONCESSION IN THE REDDING MUNICIPAL AIRPORT TERMINAL BUILDING, AND AUTHORIZING THE MAYOR TO SIGN. IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows : 1 . That the City Council of the City of Redding hereby approves the Lease between the City of Redding and Tatsia Ragan, dba Pacific Gifts, for a Gift Shop Concession in the Redding Municipal Airport Terminal Building, effective June 5 , 1990 , a true copy of which is attached hereto and incorporated herein. 2 . That the Mayor of the City of Redding is hereby I � authorized and directed to sign said Lease on behalf of the City of Redding, and the City Clerk is hereby authorized and directed ' I to attest the signature of the Mayor and to impress the official ' I seal of the City of Redding. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 5th day of June , 1990 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS : Arness, Dahl , Fulton, Moss & Buffum NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS : None I NANCYJBUFFUM, Mayor City, /of Redding ATTEST: K7-APPROVED: 74et-ao(?.77.ee-GeP- 4 ETHEL A. NICHOLS , City Clerk RANDALL A. HAYS, ty Attorney li q� III \ 411 S LEASE THIS LEASE is made and entered into this 144- day of May, 1990 , by and between the CITY OF REDDING, a Municipal Corporation and General Law City, hereinafter referred to as "Lessor, " and TATSIA RAGAN, DOING BUSINESS AS PACIFIC GIFTS, hereinafter referred to as "Lessee" : WITNESSETH: IT IS MUTUALLY AGREED by and between the parties hereto as follows : 1 . Description of Premises. The parties acknowledge that Lessor owns, maintains, and operates the Redding Municipal Airport, and that Lessee desires to use a portion of said Airport for the purpose of constructing and maintaining thereon a Gift Shop Concession in the Passenger Terminal Building. Therefore, Lessor hereby leases to Lessee, and Lessee hires from Lessor: (a) in accordance with the "City of Redding Municipal Airport Specifications for Furnishing Gift Shop Concession at the Municipal Airport Passenger Terminal" and the "Addendum to Notice Inviting Bids" attached hereto as Exhibit "A" and incorporated herein by reference (Bid Schedule 2290) ; and (b) upon the terms and conditions and for the compensation set forth below, that part of the Redding Municipal Airport Passenger Terminal Building shown as "Site A" on Exhibit #1 attached hereto and incorporated herein by reference (hereinafter called "Premises") . 4 Ilk' I ' . 2. Term. The term of_this__Lease shall be -forte-- period of two - (2) years less four days, commencing June 5 , 1990 , to and including May 31 , 1992. 3 . Lessee' s Option to Renew Lease. Lessee shall have one (1) two-year option to extend the term of this Lease. Such option shall extend the initial two-year term of this Lease through May 31 , 1994 . If Lessee exercises such option, all of the terms of this Lease shall remain in full force and effect, with the exception of this clause covering Lessee' s option to renew for a further term. The option shall be exercised by written notice addressed by Lessee to Lessor no less than ninety (90) days prior to the expiration of the initial two-year term of this Lease. 4 . Payments to Lessor; Performance Bond. A. The minimum annual rent to be paid by Lessee to Lessor under this Lease, including any renewal term, shall be the GREATER of the following: (1) $3 , 145.00 ( 170 square feet times $18. 50) , to be paid by monthly payments of $262 . 08 (June 1990 will be prorated) ; or (2) A percentage of Lessee' s annual gross receipts, as defined on pages BS 2 and 3 of Exhibit "A" attached hereto, calculated as follows: Annual Gross Receipts Percentage to be Paid to City/Lessor $ 0 to $ 25,000 10% 25,001 to 50 , 000 9% 50, 001 to 75,000 8% 75,001 to 100,000 7% 100,001 to 125,000 6% 125 ,001 to 150 ,000 5% . 150, 001 and above 4% . -2- Ill I it In no event shall Lessee payless than $262 . 08 per month (except for June 1990) during the initial term of this Lease or the renewal thereof. ! !" Lessee' s payments for the monthly rental and/or payments to be made to Lessor based on gross receipts will be paid to Lessor within seven (7) days following the end of each month. Such payments shall be accompanied by statements from Lessee showing detailed receipts, with the statements to be in such form as prescribed by Lessor. At the end of each year (May 31) during the term of this Lease or the renewal thereof, Lessor and Lessee shall review Lessee' s annual gross receipts for the previous year to ascertain if Lessee has, indeed, paid the correct amount of annual rent to Lessor. If a further sum is due Lessor, Lessee will pay the balance owing within seven (7) days following said year-end review. IL B. All payments called for in this Lease, of which Exhibit "A" is a part hereof, including the above rent and other charges, shall be payable within seven (7) days of the billing date by Lessor. Lessor is entitled to collect from it Lessee, and Lessee agrees to pay to Lessor, upon invoice, those rentals, fees , and charges set forth herein. Any rentals, fees, and charges more than seven (7) days past due shall be subject to a service charge of one and one-half ' . percent (1i%) per month, based on an annual rate of eighteen percent (18%) . Without prejudice to any other remedy which otherwise might be used for non-payment of rent, fees, and charges, or other breach of this Lease, if Lessor is required or elects to pay any sum or sums or incurs any obligations or expense by reason of a failure, neglect, or refusal of Lesseeto -perform any one or more of -the terms, - - -` conditions, and covenants of this Lease, or as the result of any act or omission of Lessee contrary to said terms, conditions, or covenants, the sum or sums so paid by Lessor, -3- Ili including all interest, costs, damages, or penalties, may be added, after seven (7) days' written notice by Lessor to i Lessee, to any installment or rent thereafter due hereunder, and each and every day thereafter the same shall be and become additional rent recoverable by Lessorin the same ' ! manner and with like remedies as though it were originally a 11 part of the rent as set forth hereinabove. C. Performance Bond. During the term of this Lease or the renewal thereof, Lessee will post with the City Clerk of Lessor a Performance Bond in the amount of $5 , 000 .00 in favor of the City of Redding. Failure on the part of Lessee li to make timely payment of invoices due Lessor, or for the items listed under PERFORMANCE BOND on page BS 6 of Exhibit "A" attached hereto, will result in a claim being made ; I i ' against said Bond. Cancellation of the Performance Bond for 11 . whatever reason shall forthwith terminate this Lease. i ' 5 . Taxes. (a) Lessee shall pay promptly any taxes assessed against her personal property and any possessory interest tax levied by _ _ reason of her occupancy of the subject Premises, and the improvements constructed thereon. (b) Lessee covenants and agrees to pay any and all taxes which may be levied and assessed against the leased Premises , in I � addition to the rental payments herein provided. Lessor 11 represents that the subject property is currently exempt , I from taxation, though it is unclear as to whether such exemption will continue in the future. Lessor shall not resist Lessee' s challenge of nor appeal of property tax assessments or valuations. Any property taxes payable for the current year shall be prorated as of the date on which the Lease term commences. i ! -4- it 111 Lessee' s efforts to apply for and obtain a mortgage or other financing secured by the leased Premises. Lessor shall be given written notice thereof of any such mortgage, including the mortgagee' s address and loan number. In the event of default hereunder, Lessor shall have no right to terminate the Lease or retake possession of the Premises or expel Lessee unless 60 days' advance written notice of such default is given by Lessor to Lessee. Notwithstanding the foregoing, Lessor shall have no right to terminate the Lease and retake possession if there is instituted by the mortgagee a suit to foreclose the mortgage on the leasehold interest, and such suit is diligently prosecuted to conclusion. The mortgagee is hereby given the power and authority, at its option, to cure all such events of default which may be cured by action of the Lessee, and in the name, place, and stead of the Lessee. In the event a mortgage on the leasehold is foreclosed, the purchaser at the foreclosure sale may assign, sell, or otherwise dispose of the leasehold interest, subject to approval by Lessor of any such assignment or assignee; such approval shall not be unreasonably withheld. 12 . Mechanics' Liens. Lessee shall keep the demised Premises free from any liens iI arising out of any work performed, materials furnished, or obligations incurred by Lessee. ,. 13. Waste; Quiet Conduct. jl Lessee shall not commit or suffer to be committed any waste upon said Premises, or any nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant of or use of Lessor' s adjoining property. 14 . Storage. Nothing shall be stored or kept outside of the Gift Shop Concession area, except as provided in paragraph XI , LEASE OF -7- ii a ADDITIONAL CONCESSION SPACE, on page BS 13 of Exhibit "A" attached hereto. The storage of any toxics by Lessee shall be done in accordance with any applicable laws or regulations. Lessee shall be responsible for any charges associated with the storage of toxics occurring during the term of this Lease, or the renewal thereof. I � 15 . Security Responsibilities and Fees . i Lessee agrees to completely secure her concession area during non-operating hours. Any fines imposed upon Lessor by the Federal Aviation Administration Security Field Office for i ; violation of security caused by the actions of Lessee or her agents or personnel shall be paid by Lessee. Failure to comply ilk with the provisions of this section shall subject this Lease to immediate termination at the option of Lessor. 16 . Rules and Regulations. Lessee agrees to observe and obey all rules and regulations 11 promulgated and enforced by Lessor and any other appropriate authority having jurisdiction over the Redding Municipal Airport during the term of this Lease, or the renewal thereof, including 6 the Federal Aviation Agency and other federal agencies, the United States, the State of California, the County of Shasta, and h the City of Redding. Lessor covenants that the rules and regulations so promulgated will apply to and be enforced uniformly by Lessor as to all lessees of said Airport as their interests and activities are related thereto. 17 . Compliance with Law. Lessee covenants and agrees to comply with all statutes, laws, ordinances, regulations, orders, judgments, decrees, directions, and requirements of Lessor, and of all federal, state, county, and city authorities now in force or which may hereafter be in force applicable to said leased Premises. The -8- ui I. judgment of any Court of competent jurisdiction or the admission of Lessee in any action or proceeding against Lessee, whether Lessor be a party thereto or not, that Lessee has violated any such ordinance or statute in the use of the Premises shall be conclusive of the fact as between Lessor and Lessee and shall subject this Lease to immediate termination at the option of Lessor. 18 . Maintenance of Building (s) . Lessee covenants and agrees that she will, at her own cost and expense, keep and maintain the Premises covered by this Lease and all improvements placed or erected thereon in a reasonably good and attractive state of repair. ,r 19 . Inspection. During the term of this Lease or the renewal thereof, Lessee shall permit Lessor or its agent or agents to enter upon the Premises for the purpose of inspection of same; Lessor' s right of I inspection shall be exercised during the normal business hours of Lessee. Lessor agrees not to unreasonably disturb Lessee ' s peaceable possession and use of the Premises in so doing. 20 . Hold Harmless; Insurance. a. This Lease is granted upon the express condition that Lessor shall be free from any and all liability and claims for damages for personal injury, death, or property damage in any way connected with Lessee' s use of the Premises I ; hereunder leased, whether or not the same be groundless, i including claims of Lessee, her agents, employees, customers, or other persons upon the leased Premises for any 1 , reason. Lessee shall indemnify and save harmless Lessor, its officers, agents, and employees, from any and all I liability, loss, cost, or obligation on account of or i ; arising out of any acts or omissions, injury, death, or loss tH -9- 101 • caused by the negligence or other legal fault of Lessee or her agents, employees, customers, or other persons upon the leased Premises for any reason. b. It is specifically understood and agreed as a condition of this Lease that Lessee shall, at her own expense, obtain and keep in full force and effect comprehensive general liability insurance in the amount of $300,000 .00 combined single limits, which insurance shall be in a form and content sufficient and adequate to save Lessor, its officers, agents, and employees, harmless from any and all claims arising out of the use and occupancy of said Premises. Such insurance shall be carried with an insurance company acceptable to Lessor, and a Certificate evidencing such insurance shall be approved by the Risk Manager of Lessor and filed with him prior to the commencement of the � I term hereof, which shall name Lessor, its officers, agents, and employees, as additional insureds and guarantee at least ten (10) days' advance notice to Lessor, in writing, before any cancellation or reduction of such insurance coverage. Insurance requirements will be reevaluated every year. c. Lessee shall also secure and maintain fire insurance on the Gift Shop Concession to be erected by Lessee on the Premises, and contents, to the full insurable value of the Gift Shop Concession structure and contents as erected and placed upon the leased Premises. Lessee further agrees that in the event of any fire or partial or complete destruction of the structure erected by Lessee, any proceeds of insurance received by Lessee shall be utilized in the replacement, reconstruction, or repair of the damaged or destroyed improvements. d. It is further understood and agreed as a condition of this � ! Lease that Lessee will provide workers ' compensation ! i insurance on her employees, meeting the minimum requirements of the California Labor Code, and furnish the Risk Manager -10- 1i, 11 I: of Lessor with a Certificate evidencing such insurance, to be approved by him, prior to the commencement of the term hereof. Said Certificate shall contain a provision obligating the insurance carrier to notify City in writing at least ten (10) days prior to any cancellation or reduction of such insurance. To obtain an exemption from this requirement should Lessee have no employees, Lessee shall provide the Risk Manager of Lessor with a letter stating that she is not employing any person or persons in any manner so as to become subject to the workers ' compensation laws of California; provided, however, that should Lessee later become subject to the workers ' compensation provisions of Ih the Labor Code, she will forthwith comply with the insurance I ; requirements set forth above. 21 . Assignment or Subletting. Lessee shall not assign this Lease or any interest therein and shall not sublet said Premises or any part thereof, or any right or privilege appurtenant thereto, or suffer any other person (the agents and servants of Lessee excepted) to occupy or II use said Premises or any portion thereof, without the written consent of Lessor first had and obtained; and a consent to one assignment, subletting, occupation, or use by another person or Ijentity shall not be deemed to be a consent to any subsequent assignment, subletting, occupation, or use by another person or entity. Any such assignment or subletting without such consent shall be void and shall, at the option of Lessor, terminate this ! I Lease. This Lease shall not, nor shall any interest therein, be 1 . i i assignable as to the interest of Lessee by operation of law ii without the written consent of Lessor, which shall not be unreasonably withheld. -11- I • 22 . Bankruptcy and Insolvency. If Lessee shall be adjudged bankrupt, either by voluntary or 1 involuntary proceedings, or if Lessee shall be the subject of any proceeding to stay the enforcement of obligations against her in the form of reorganization or otherwise under and pursuant to any existing or future laws of the Congress of the United States, or li if Lessee shall discontinue business or fail in business, or abandon or vacate said Premises, or make an assignment for the II' benefit of creditors, or if said Premises should come into possession and control of any trustee in bankruptcy, or if any ; receiver should be appointed in any action or proceeding with power to take charge, possession, control, or care of said Premises, Lessor shall have the option to forthwith terminate this Lease, or the renewal thereof, and reenter the leased i ' Premises and take possession thereof. In no event shall this Lease be deemed an asset of Lessee after adjudication in bank- ruptcy. 23. United States of America Restrictions . (a) It is understood and agreed that this Lease is subject to the covenants, restrictions and reservations contained in the following instruments to which the United States of '. i America is a party, to wit: (1) Quitclaim Deed dated June 6 , 1947, to the City of Redding. (2) Instrument of Transfer dated October 7 , 1947 , to the City of Redding. (3) Grant Agreement executed by the City of Redding on December 1 , 1948 , covering Federal Aid Airport Project No. 9-04-062-901 . (4) Grant Agreement executed by the City of Redding on May 18 , 1949 , covering Federal Aid Airport Project No. 9-04-062-092 . I -12- I i 411 (5) Grant Agreement executed by the City of Redding on July 10 , 1950 , covering Federal Air Airport Project No. 9-04-062-903 . (b) To the extent that the United States of America may release said property or any part thereof from any of said , I. covenants, restrictions, and reservations, Lessee shall likewise be released by Lessor. 24 . FAA Requirements. To comply with Federal Aviation Administration requirements, Lessee, for herself, her heirs, executors, administrators, legal representatives, successors, and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land: (1) That in the event facilities are constructed, maintained, or otherwise operated on the Premises described in this Lease for a purpose for which a Department of Transport program or activity is extended, or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such facilities 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 may be amended. j (2) That (a) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; (b) that in the construction of any improvements on, over, or under such ! land 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 (c) that Lessee shall use the Premises in compliance with all other ' f 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. -13- • (3) That in the event of breach of any of the above nondis- crimination covenants, Lessor shall have the right to terminate this Lease and to reenter and repossess said land and the facilities thereon, and hold the same as if said Lease had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed, including expiration of appeal rights. (4) That Lessee shall furnish her accommodations and/or services on a fair, equal, and not unjustly discriminatory basis to all users thereof, and shall charge fair, reasonable, and not unjustly discriminatory prices for each unit or service; provided that Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar type of price reductions to volume purchasers. (5) That non-compliance with paragraph 24 (4) above shall constitute a material breach thereof, and in the event of non-compliance Lessor shall have the right to terminate this Lease and the estate hereby created without liability therefor, or at the election of Lessor or the United States either or both said Governments shall have the right to judicially enforce provisions. (6) That Lessee agrees that she shall insert the above five provisions 24 (1) through 24 (5) in any lease agreement, contract, etc. , by which said Lessee grants a right or privilege to any person, firm, or corporation to render accommodations and/or services to the public on the Premises herein leased. (7) That Lessee assures that she will undertake an affirmative action program as required by 14 CFR Part 152 , Subpart E, to insure that no person shall, on the grounds of race, creed, color, national origin, or sex, be excluded from partici- pating in any employment activities covered in 14 CFR Part 152, Subpart E. Lessee assures that no person shall be excluded on these grounds from participating in. or receiving the services or benefits of any program or activity covered by this subpart. Lessee assures that she will require that her covered suborganizations provide assurances to Lessee that they similarly will undertake affirmative action programs, and that they will require assurances from their suborganizations, as required by 14 CFR 152 , Subpart E, to the same effort. (8) That Lessor reserves the right to further develop or improve the landing area of Redding Municipal Airport as it sees fit, regardless of the desires or views of Lessee and without interference or hindrance. -14- 41, (9) That Lessor reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the landing area of Redding Municipal Airport and all publicly-owned facilities of said Airport, together with the right to direct and control all activities of Lessee in this regard. (10) That this Lease shall be subordinate to the provisions and requirements of any existing or future agreement between II Lessor and the United States relative to the development, operation, or maintenance of the Redding Municipal Airport. (11) That thereis hereby reserved to 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 herein leased. This public right- of-flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through said airspace, or landing at, taking off from, or operation of the Redding Municipal Airport. (12) That Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event future construction, modification, or alteration of any present or future building or structure in which the leased Premises is situated. (13) That Lessee, by accepting this Lease, expressly agrees for herself, her heirs, executors, administrators, legal. representatives, successors , and assigns , that she will not erect nor permit the erection of any structure or object, nor permit the growth of any tree, on the land leased hereunder above the mean sea level elevation of 550 feet. jl In the event the aforesaid covenants are breached, Lessor reserves the right to enter upon the land leased hereunder and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of Lessee. (14) That Lessee, by accepting this Lease, agrees for herself, her heirs, executors, administrators, legal representatives , successors, and assigns, that she will not make use of the leased Premises in any manner which might interfere with the landing and taking off of aircraft from the Redding Municipal Airport, or otherwise constitute a hazard. In the event the aforesaid covenant is breached, Lessor reserves the right to enter upon the Premises hereby leased and cause the abatement of such interference at the expense of Lessee. -15- 25 . Discrimination. Notwithstanding any other provisions of this Lease, Lessee shall make her services available to the public without unjust discrimination; provided, however, that Lessee shall have the 1 privilege of refusing service to any person or persons for just iH cause, but not to discriminate by virtue of race, creed, sex, or color. Lessee shall furnish said services on a fair, equal, and not unjustly discriminatory basis to all persons and users thereof, and will charge fair, reasonable, and not unjustly discriminatory prices for such services . 26 . Revocation of Lease , Permit, or License. Lessor shall have the right to terminate any lease, permit, license, or agreement (including that of Lessee herein) covering a commercial or noncommercial operation and to revoke a lease on any land or facility at the Airport (including that of Lessee herein) for any cause or reason provided by these standards, by this Lease and attachments, license, or agreement itself, or by law, or upon the happening of one or more of the following: a. Filing a petition of voluntary or involuntary bankruptcy with respect to the operator or license. b. The making by the operator or licensee of any general assignment for the benefit of creditors. c . The abandonment or discontinuance of any operation at the Airport by the commercial operator, or the failure to conduct any service, operation, or activity which the lessee or licensee has agreed to provide under the terms of his i ' contract. If this condition exists for a period of ten (10) H days without prior written consent of Lessor, it will constitute an abandonment of the land or facilities and the lease and/or license shall become null and void. ! I d. The failure of an operator or licensee to pay promptly when due all rents, charges, fees, or other payments in accordance with applicable leases or licenses. ' e. The failure of the operator or licensee to remedy any default, breach or violation of the Airport Rules and -16- III 1 1 I.I Regulations by him/her or his/her employees within thirty (30) days after written notice from the Lessor. If. Violation of any of these standards and rules and II regulations or failure to maintain current licenses required for the permitted operation. I g. Intentionally supplying Lessor with false or misleading + 1 information or misrepresenting any material fact on the application or documents, or in statements to or before the 11 Lessor, or intentional failure to make full disclosure on a 111 financial statement, or other required documents. 11 I 27 . Default. I If Lessee shall be in arrears in the payment of rent for thirty (30) days or more, or if the transfer or assignment, voluntarily or involuntarily, of this Lease or any interest therein is attempted, except as herein provided, or if Lessee violates or neglects or fails to keep, observe, and perform any of the covenants, promises, or conditions herein contained which H are on her part to be kept, observed, and performed, Lessor may, at its election, give Lessee written notice of such default. If 11' such default shall continue for sixty (60) days, and Lessee has failed to commence good faith efforts to cure such default within 11 said period, Lessor shall have the right at any time thereafter 11' and while such neglect or default continues to enter into or upon ' ! said Premises, or any part thereof, and repossess the same, including all structures and improvements thereon, and expel I Lessee and those claiming under Lessee, and remove their effects, : forcibly if necessary, without prejudice to any remedies which might otherwise be invoked by Lessor. I , 28 . Damage or Destruction of Premises. H ;H a. In the event the Terminal Building in which Lessee occupies space hereunder shall be partially damaged by fire or other II, casualty, but not rendered untenantable, the same shall be ; I repaired with due diligence by Lessor at its own cost and expense. ' -17- , i . I ' • , r . • I;L, b. If the damage shall be so extensive as to render the Premises untenantable but capable of- being repaired within 45 days, the same shall be repaired with due diligence by Lessor at its own cost and expense, and the rent payable hereunder with respect to Lessee' s space shall be j ; proportionately paid up to the time of such damage, and shall thenceforth cease until such time as the Premises I ' shall be fully restored. ii c. In the event the Terminal Building is completely destroyed by fire or other casualty, or so damaged that it will remain untenantable for more than 45 days, Lessee shall pay said I 'I proportionate rent up to the time of such damage, and shall have the following options: to cancel this Lease forthwith in writing; or ii. if said building shall be repaired or reconstructed by Lessor at its own cost and expense, Lessee may '. i temporarily suspend her operations, or a part thereof. If Lessee temporarily suspends her entire operation, . i rent shall thenceforth cease until the Premises shall i ; be fully restored. If Lessee continues to operate a I portion of her services , Lessee shall pay a I ' proportionate rent until such time as the Premises ' I shall be fully restored. d. In the event that the Redding Municipal Airport or the Premises herein occupied by Lessee are rendered untenantable or unusable because of the condition thereof other than due to fire or casualty as set forth above, and except by reason � I of fog, snow, flood, earthquake , or other uncontrollable conditions, there shall be a reasonable and proportionate ' I abatement of the charges provided for herein during the period that the same are so untenantable or unusable. if I1 -18- t S 29 . Eminent Domain. 1 In the event the entire Premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, this Lease shall terminate and expire as of the date of such taking, and Lessee shall thereupon be released from any liability thereafter accruing hereunder. j In the event a portion of the Premises is taken under the power of eminent domain by any public or quasi-public authority, such that the improvements thereon cannot, in Lessee' s opinion, i be used for its intended purposes, Lessee shall have the right to terminate this Lease as of the date Lessee is required to vacate a portion of the Premises, upon the giving of notice in writing of such election within thirty (30) days after said Premises have been so appropriated or taken. In the event of such termination, I1 both Lessor and Lessee shall thereupon be released from any 1 liability thereafter accruing hereunder. Lessor agrees, immedi- ii II ately after learning of any appropriation or taking, to give Lessee notice thereof in writing. If the Premises are taken, or Lessee elects to terminate upon a partial taking, Lessor agrees to offer to lease to Lessee similar space on similar terms for a term equal to the remaining term hereunder, including any renewal thereof, if any such space 1 is available for lease at the Redding Municipal Airport. If this Lease is terminated in either manner hereinabove Is provided, Lessor shall be entitled to the entire award or compen- sation for the Premises in such proceedings, but the rent and 1 other charges for the last month of Lessee' s occupancy shall be ii prorated and Lessor agrees to refund to Lessee any unused portion of said rent or other charges paid in advance. Lessee' s right to receive compensation or damages for her Gift Shop Concession and other improvements, as well as her fixtures, personal property, 1 and for the moving or relocation expenses, shall not be affected in any manner hereby, and Lessee reserves the right to bring an it 1 -19- i 4 action for such compensation or damages, including loss of business, leasehold interest, and other reasonable damages. 30 . Professional Fees. In case suit or action is instituted to enforce any of the II provisions of this Lease , the prevailing party therein shall be entitled to all reasonable and necessary bookkeeper and accountant fees incurred by that party in connection with such suit or action, plus such sums as may be adjudged reasonable for 1 that party' s attorney fees at trial and on appeal. 31 . 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 fully and properly given when made in writing, enclosed in a sealed envelope and deposited in the I � United States Post Office, certified mail, postage prepaid, addressed as follows: To Lessor: City of Redding c/o City Manager 760 Parkview Avenue Redding, California 96001-3396 To Lessee: Tatsia Ragan dba Pacific Gifts 280 Hemsted Drive, Suite C Redding, California 96002 . 32 . Cooperation. I The parties hereto agree to fully cooperate in carrying out I the terms of this Lease, including the execution of all documents I reasonably necessary to effectuate the intention of the parties. l 33 . Entire Agreement. Ij This Lease, together with attachments, sets forth the entire agreement between the parties hereto. Modifications or additions ii. -20- 11 411 I 1 to this Lease shall be considered valid only when mutually agreed upon by the parties in writing. 34 . Waiver. f � No delay or failure by any party to exercise any right, 1 power, or remedy with regard to any breach or default by such Iparty under this Lease, or to insist upon strict performance of any of the provisions hereof, shall impair any right, power, or remedy of such party, and shall not be construed to be a waiver � I of any breach or default of the same or any other provision of this Lease. 1 35 . City Administration. ! I Whenever Lessee is required to secure approval or consent from Lessor, Lessor shall mean the Director of Airports of Lessor. However, at the option of the Director of Airports or the Lessee, and according to proper procedure , any such questions may be referred to the City Council of Lessor, whose decision thereon shall be final . 36 . Successors and Assigns. All covenants , stipulations, and agreements in this Lease shall extend to and bind the heirs, executors, administrators, legal representatives , successors, and assigns of the respective I i parties hereto. II 37 . Invalid Provision. ' i In the event any covenant, condition, or provision herein contained is held invalid by any Court of competent jurisdiction, the invalidity of 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 Lessor or Lessee in their respective it ' , -21- I.I.. i 4 rights and obligations contained in the valid covenants, conditions, and provisions of this Lease. I 38 . CEQA. It has been determined that this matter is categorically exempt from the provisions of the California Environmental Quality Act. IN WITNESS WHEREOF, the parties hereto have executed this j Lease on the day and year set forth below. Ij CITY OF REDDING By: NANCY BUFFUM, Mayor 441k 9a1J TATSIA RAGAN, doing business as PACIFIC GIF ATTEST: ETHEL A. NICHOLS, City Clerk FORM APPROVED: RANDALL A. HAYS, City Attorney it -22- li . Il 1III II 1 ' U 67,S=rs,S ,iV, g ii City of Ri • ding , :,,,tar.„", , ,i ``'�'.'- 03/28/90 ADDENDUM to 1? fr NOTICE INVITING BIDS IFOR FURNISHING tl 111: : ' GIFT SHOP CONCESSION IN* AT THE I MUNICIPAL AIRPORT PASSENGER TERMINAL Mcobti:�' %'', CITY OF REDDING (Schedule Number 2290) I The City of Redding is hereby notifying you that the above notice inviting bids shall be amended as follows: II BID PROPOSAL, PAGE BP 1 I ! DELETE: i The term of the contract shall be for two (2) years with one (1) one-year option. INSERT: il 11 11 The term of the contract shall be for two (2) years with one (1) two-year option. SPECIFICATIONS, PACE BS 12 L, DELETE: I I X STATE DIRECTED RELOCATION INSERT: X CITY DIRECTED RELOCATION 1 SPECIFICATIONS, PAGE BS 18 i I DELETE: ilI . Conflicts Between Concessions. If a conflict exists between the Concessionaire and any other tenant, lessee, or concessionaire on the airport as to the services to be 1 provided by respective concessionaires or lessees, the 1 Management will decide which services may be provided and by whom. Concessionaire agrees to be bound by the decision. I. 411 �l. ADDENDUM (Schedule Number 2290) i � PAGE 2 INSERT: I . Conflicts Between Concessions. If a conflict exists between the Concessionaire and any other tenant, lessee, or concessionaire on the airport as to the services to be provided by respective concessionaires or lessees, Management, after meeting with the parties involved and examining the issue , will decide which services may be provided and by whom, should the conflict still exist. Concessionaire agrees to be bound by the decision. it If you have any questions , please call me.p , THE CITY OF REDDING jf Purchasing Department °"14411f1141416- Carolyn J. Roberts Purchasing Officer 916-225-4137 i, 1 i 11 1 I it II 11 . . r • i CITY OF REDDING MUNICIPAL AIRPORT SPECIFICATIONS FOR FURNISHING GIFT SHOP CONCESSION AT THE MUNICIPAL AIRPORT PASSENGER TERMINAL 1$0:C FOR THE CITY OF REDDING, CALIFORNIA 10P (Proposal Number 2290) PAGE BS 1 I INTRODUCTION The City of Redding' s goal is to acquire a gift shop concession to cater to terminal passengers at the City of Redding Municipal Airport. The Gift Shop Concession shall be placed at one of the two locations as shown in Exhibit 1 . The City is soliciting bids from qualified individuals and organizations to lease an appropriate site within the municipal airport terminal to develop a gift shop concession. All interested parties meeting the qualifications outlined herein are invited to submit a proposal for this investment opportunity. More than one proposal may be submitted, but each proposal submitted must be complete and independent. Proposal/proposals shall be submitted on the bid proposal forms as provided herein by the City of Redding. fII SCOPE 1 The service contemplated by these specifications consists of furnishing commodities to be sold, involved labor, materials, ! equipment, furnishing, licenses and permits to conduct and operate the Gift Shop Concession in the Municipal Airport Passenger 1 Terminal for a specified period of time. Bidder shall also submit a detailed plan of operation and a preliminary plan and conceptual drawing or rendering detailing the most desirable concession location within the terminal area. The I foregoing shall be attached and made a part of the proposal. I III DEFINITIONS I 1 . "City" as used hereinafter means the City of Redding, I ', California. 2. "Bidder, means the person, firm, or corporation submitting a bid on these specifications or on any part thereof. � 1 11 i ,SPECIFICATIONS--GIO SROP CONCESSION PAGE BS 2 3. "Concessionaire' as used hereinafter means the person, persons or organization who are, or shall be granted the Gift Shop Concession privileges described herein. 1 4 . It is understood that the word "terminal' shall mean the passenger terminal at the Municipal Airport, City of Redding, Redding, California. 5. 'Management" as used hereinafter means the Director of Airports as approved by the City of Redding City Manager. 6 . "Premises" as • used hereinafter means specifically that in-terminal space rented by Concessionaire. I. 7. "Gross Receipts' as used herein includes: 1 . All sales made and all cash or credit revenue of I Concessionaire whether sales are for cash or on a charge basis, collected or uncollected, without any exclusions whatsoever except as may be expressly permitted in this agreement from any business conducted in whole or in part, or upon any orders placed at, or completed by delivery from, on, or through the use of the premises or the rights granted by the contract. II 2. Charges for all services performed or rendered in, on, or through the use of or on orders placed at the premises or in connection with any business conducted under authority of the contract. 3 . All other income from or incidental to any business conducted in whole or in part in, on, or through the use of the premises or in connection with the rights granted jj by the contract. Articles, work, or services furnished to any person in lieu of payment or in exchange for value received is deemed to be a cash sale. The following are exclusions from this definition: 1 . The difference between the marked sale price and the actual sale price in the case of discount sales. (Only the net sale price will be included in 'gross sales") . 2 . The amount of any sales taxes, so-called "luxury taxes" , consumer excise taxes, and other similar taxes imposed by j any federal, state, municipal, or governmental authority directly upon the sale of merchandise, now or hereafter, when these taxes are added separately to the selling price of the item and collected from customers at the time of sale. All taxes must be properly accounted for and recorded. iL SPECIFICATIONS--GIFAOP CONCESSION PAGE BS 3 No franchise, capital stock tax, income, or similar tax based upon income or profits may be deducted from gross sales. 3 . Receipts from the sale of waste or scrap materials resulting from Concessionaire' s business in the terminal . 4 . Receipts from the sale or trade-in value of any furniture, fixtures, or equipment used upon the premises and owned by Concessionaire that are not considered stock-in-trade. 5 . The value of any merchandise, supplies or equipment exchanged or transferred from or to other business locations of Concessionaire if the exchange or transfer is not made to avoid a sale by Concessionaire which otherwise would be made at or from the premises. 6 . Receipts in the form of refunds or the value of merchandise, supplies, or equipment returned to shippers, suppliers, or manufacturers or any discounts received by the Concessionaire from suppliers. 7 . Receipts with respect to any sale if the subject of the sale is returned by the purchaser and accepted by Concessionaire, to the extent of any refund actually granted or adjustment actually made either in the form of cash or credit. IV PROPOSAL ELIGIBILITY 1 . Bidders shall submit with the bid proposal Attachment A through Attachment N as more fully detailed on Bid Pages BP 4 through BP 6. ATTACHMENT A - Bidder would operate a concession as a: ATTACHMENT B - Prior experience. ATTACHMENT C - Management. III ATTACHMENT D - Financial resources. ATTACHMENT E - Bankruptcy proceedings. ATTACHMENT F - References. ATTACHMENT G - Financial Statement. ATTACHMENT A - Merchandise, hours of operation, and sample prices. ,SPECIFICATIONS--GI'SHOP CONCESSION 110 PAGE HS 4 ATTACHMENT I - Furniture and fixtures. ATTACHMENT J - Commercial services. ATTACHMENT A - Plans and drawings. ATTACHMENT L - Storage, stocking, and resupply. ATTACHMENT M - Additional conditions. ATTACHMENT N - Additional information. The proposal of any bidder who does not submit the above information will not be considered. 2. PUBLIC INFORMATION--All bid proposals, including any document or statement submitted with a bid proposal , become the property of the City when received by the City Clerk of the City of Redding. Upon the opening of sealed bids by the City, all such information submitted with the bid proposal becomes public information. 3. OTHER REQUIREMENTS--Bidders are responsible for carefully examining all documents relating to this bid proposal and judging for themselves all the circumstances and conditions affecting their bid. Failure on the part of any bidder to make an examination and to investigate thoroughly shall not be grounds for any claim that the bidder did not understand the conditions of the bid proposal. 4 . SITE REVIEW--All prospective bidders are expected to visit the Municipal Airport premises, to thoroughly familiarize themselves with the site conditions, and to ascertain pertinent local conditions. All visits are to be coordinated with the Airports Director, City of Redding Municipal Airport, Airport Road, Redding, 1California, Telephone: 916-224-4321 . The bidder may not rely on II any oral representation by any City employee or agent as to the condition of the premises at the commencement of or during the term of the contract. V PAYMENTS TO CITY OF REDDING 1 . Concessionaire payments for the monthly rental and/or payments made to the City based on gross re ipts will be made within seven (7) days following the end of ea month. Such payments shall be accompanied by statements showi . detailed receipts in such form as II prescribed by Management. H , After seven days penalties a interest shall accrue at the rate of 11, 1-1/2% on the unpaid balance er month. VI CONCESSIONAIRE AGREES 1 , , SPECIFICATIONS--GI HOP CONCESSION r PAGE ES S When submitting bid proposal, the following requirements shall be agreed to by the Concessionaire. 1 . Concessionaire shall - construct - and install all fixtures, 1 equipment, and other improvements necessary to operate the - concession, subject to the prior written approval of the City. 2. Concessionaire shall furnish at his own expense, all labor, materials, tools, necessary equipment and furnishings, prices and other signs, cash registers with tape readouts, and such other jJ items as reasonably deemed necessary by Management. • �3• Concessionaire shall perform requirements of the contract in a J `1, good and workmanlike manner, furnish good, prompt, adequate Iervice on a fair, equal, and nondiscriminatory basis to all airport users, and in strict accordance with regularly accepted -'- ---- industry standards, to comply with all Federal, State and local N laws, rulings, and regulations including those of the County Health Department, City Fire Department, and Building Departments. II - � � `; 4. At the beginning of the contract, and at its sole expense, the i - •- Concessionaire is required to furnish the premises, perform any 1' - - additional construction, or make any other improvement, including -- • installation of extraordinary utility equipment not normally Z, - supplied by the City, that is required to operate the concession. d 5. Premises Maintenance: The Concessionaire is responsible for 1 the day-to-day maintenance of the premises, including; janitorial - services; trash collection; sanitary cleaning of the floors, walls, } both sides of interior window, ceilings, and operating equipment; - and utilities that provide the secondary level of service to the j .j5 premises. ii , The Concessionaire will maintain the premises in good repair and appearance and in a safe condition at all times. The Concessionaire will do without delay anything that, in the opinion of Management is necessary to maintain the premises in good repair and appearance, desirable, or in the interest of safety. 6. Ownership: The ownership of improvements, furnishings, and fixtures that are constructed or installed on the premises by the Concessionaire is as follows: A. Upon the expiration, cancellation, or termination of this agreement, title to any structural or other concession improvements including interior walls, ceilings, carpeting, finished flooring, electrical wiring, air-conditioning ducts and equipment, concession furnishings that cannot in the Management' s opinion be removed without structural damage to the premises, and all interior decoration and finishing erected or SPECIFICATIONS--GIO SHOP CONCESSION410 . PAGE BS 6 • installed by Concessionaire upon the premises vests in the City. B. Title to all removable furnishing, supplies, fixtures, and equipment remains vested in the Concessionaire unless purchased by the succeeding concessionaire, or pursuant 1 to Section X, Cancellation, title vests in the City. 7. Not to remove at any time for any purpose from the Municipal Airport any equipment owned by the City, other than with the is express written permission of Management. 8. Products to be sold shall be new, unused, not damaged, and the quality shall be that which is generally accepted as industry standard. 9. PE1RkO E --BOND--To post, within fifteen (15) days after the award eof the Gift Shop Concession contract by City, a faithful perfofinance bond in the principal sum of Five Thousand Dollars ($5000 .00) to remain in force during the life of the contract or any' extension or amendment thereof, and thirty (30) days subsequent thereto, for the purpose of guaranteeing fulfillment of contract provisions and payment of the following items: /a. Any amounts due the City under terms of these specifications or the contract. I b. Any damage or loss of Municipal Airport property. c. Utility and other charges, if any. d. Removal and storage expense incurred by the City if the Concessionaire does not promptly remove his property from the premises within fifteen (15) days after his contract is terminated. ! I e. Cost incurred by the City at the time the contract is terminated if the Concessionaire fails to leave premises in satisfactory condition. 10. That he will use no advertising matter or signs unless II previously approved by Management in writing. l 11 . That no public address (sound) system will be used. ii 12 . Concessionaire shall completely secure concession area during non—operating hours. VII GENERAL CONDITIONS 1 . LICENSES/PERMITS/TAXES--Concessionaire shall obtain IFICATIQNS--GIFT SHOP CONC ION • `BS 7' ssary licenses at his own cost, and to pay all State, 1 and Federal taxes. INSURANCE--Concessionaire shall secure from his insurer and with City, not later than fifteen (15) days after the ssful bidder has received the contract for signature, ;factory insurance certificates for the following: Comprehensive General ;Liability Insurance - three hundred j thousand dollars ($307000) combined single limits. Prior to commencement of work, the Concessionaire shall furnish to the City of Redding, Risk Manager, a certificate of insurance showing the above required insurance coverages are in effect and naming the City of Redding, its agents, officers and employees as additional insureds. The certificate shall guarantee the City at least ten (10) days written notice of 1 ' cancellation or reduction in coverage. i ; The City requires evidence of workers compensation insurance. � i It shall meet the minimum requirements of the California Labor Code. The certificate shall be furnished to the City of Redding, Risk Manager and shall guarantee the City at least iten (10) days written notice of cancellation or reduction in 1 coverage. t ! MERCHANDISE—Concessionaire will at all times offer the widest ice.l selection of gift merchandise and maintain sufficient Atories to accommodate customer demand. The City agrees that ' selection of merchandise items within the concession rights ed by the contract is within the Concessionaire's discretion .ct to disapproval by the Management if, in its sole -urination, the selection of items offered is inadequate or being offered are not within the concession rights granted by ; .ontract or nature of the terminal. The City agrees to meet .onfer with the Concessionaire in case of disapproval by the ement, but the Concessionaire acknowledges that the decision , ' e City in any case of disapproval is conclusive. ' 1 HOURS OF OPERATION--For the purpose of the contract, the term duled passenger flights" using the passenger terminal includes: All regularly scheduled passenger flights. I H a. The Concessionaire will actively operate the concession authorized by the contract so as to best serve the needs of airline passengers. The Concessionaire will prepare a written schedule of the operating hours for the gift shop and submit the schedule to the Management for approval . The schedule must make every effort to provide for the 1, operation in a manner that will serve all scheduled � i: SPECIFICATIONS--GIHOP CONCESSION 0 PAGE 8S 8 passenger flights operating from the terminal. The Management's approval or disapproval will be based on serving the needs of the traveling public. The Concessionaire .._agrees to adhere to the schedule of operating hours approved by the airport manager. Any revision to the schedule of operating hours is subject to prior airport manager approval. b. Except in an emergency, the Concessionaire must obtain the approval of the Management before any special period of concession space closure for repair, maintenance, i' construction or any other reason. However, the minimum rent guarantee will not be reduced because of any special period of concession space closure. 3. I ; Concessionaire shall , on reasonable notice, make available to Management all applicable bank deposit slips and statements, • inventories, audit accounts, income and other tax statements, and cash register readings together with any other records ' i reasonably deemed necessary by Management for its purpose. Management may need all business records to determine money due in some instances. 5. PERSONNEL a. Concessionaire will maintain an adequate staff on the premises and use the utmost skill and diligence in the conduct of i Concessionaire 's business on the premises. b. The Concessionaire may only employ or permit the employment of personnel that provide a high standard of service to the public. While on duty in the terminal, all of the Concessionaire's personnel will be neat in appearance, courteous at all times, and appropriately attired with badges or other suitable identification. While on or about the premises personnel employed by the Concessionaire are not permitted to use vulgar language; act in a loud, boisterous, or otherwise improper way; nor be permitted to solicit business in an inappropriate manner, as determined by Management. c. Unless Gift Shop Concession is personally operated by the Concessionaire, he will employ a general manager or ! I designated alternate satisfactory to Management to be at the Municipal Airport at all times during operation of the concession. d. The Concessionaire will not engage on a full or part time basis, any person or persons who are employed by the City of Redding during the term of this contract or, in the case of employee separation from the City of Redding, for a period of ii I . i SPECIFICATIONS®-GI? HOP CONCESSION411 PAGE BS 9 two (2) years following said separation except those who have j been regularly retired or who have received written approval 1 ; for employment from the City of Redding Personnel Department and City Manager. H e. Concessionaire will occupy the position of an independent ii contractor with exclusive general control over his employees and will be responsible at all times for the appearance and 11 II conduct of his employees. � f. Concessionaire will not discriminate against any employee or II applicant for employment because of race, color, religion, sex, age, or national origin. he will take affirmative action to insure that applicants are employed, and that ! j employees are treated during employment, without regard to t , their race, color, religion sex or national origin. Such action shall include, but not be limited to, the following: Employment, upgrading, demotion, or H transfer; recruitment or recruitment advertising, layoff 1 or termination; rates of pay or other forms of compensation; and selection for training, including ' apprenticeship. He agrees to post in conspicuous places, available to employees and applicants for employment, notices setting forth the provisions of this Equal Opportunity clause. I ' ! g. Concessionaire shall, in all solicitations or I , advertisements for employees placed by or on behalf of the CI Concessionaire, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, age, or national origin. I h. In the event of noncompliance with the provisions of the Equal Opportunity clause in paragraph 7 of this contract or with any 1 , . of the said rules, regulations , or orders, this contract may Ii be cancelled, terminated or suspended in whole or in part. iI 6 . PROHIBITIONS--The following shall be prohibited: is a . Concessionaire shall not be permitted to sublet minor i , concessions or services . Concessionaire may not assign ii his entire contract without first obtaining the written permission of Management; I . b. the sale of food and beverage items prepared and sold for on premises consumption; II it c. the sale of ice cream products, canned, bottled or packaged soft drinks; 1 ! I d. the sale of telex or teletype services, or telephone services; 1 SPECIFICATIONS--GIF' EOP CONCESSION41, PAGE BS 10 it e. the sale of any item or service for which the City has granted exclusive concession rights to others as of January 1 , 1990; f. the operation of any mechanical or electronic game device, electronic video game device, and any similar entertainment device; and g. the use of the premises for any purpose which the City has not specifically authorized the Concessionaire to perform under it the contract. 7 . VENDING MACHINES 1 . During the current term of the airport restaurant owners vending machines contract, Concessionaire is prohibited II from any sale of merchandise from vending machines or other mechanical devices. 2 . At the conclusion of the airport restaurant owners vending machines contract, Concessionaire shall have the exclusive right to vending machines on the lower level only. The items to be sold through any such vending machines on the lower level will be negotiated. 8. The City specifically reserves the right to grant to others any right or privilege not specifically and exclusively granted to the Concessionaire. The rights and privileges granted to the Concessionaire in the contract are the only rights and privileges granted to the Conessionaire by the contract. The Concessionaire has no easements, rights, or privileges, express or implied, other than those specifically granted by the contract. it 9. EXECUTION OF CONTRACT--Within fifteen (15) calendar days after ! I a successful bidder has received the contract for signature, the bidder must sign and deliver it to the City together with the required certificates of insurance and the performance bond. Failure of a successful bidder to execute and return the contract together with the required insurance certificate and performance bond within fifteen calendar days after receiving the contract for signature, shall be just cause for the annulment of the award and for the forfeiture of the bid security to the City. Upon the I ;, annulment of the award, the City may award the contract to the next highest responsive and qualified bidder. If any bidder to whom the contract is awarded refuses or fails to execute and return the contract in the time specified, the bidder' s bid security shall be forfeited to the City. Order of succession of bidders may continue until the contract is awarded and executed, or until the number of acceptable bidders is exhausted. 1 , The successful bidder' s performance bond will be held by the City to assure that the bidder begins continuous operation of a Gift � I . rc SPECIFICATIONS--GI®SHOP CONCESSION PAGE BS 15 contract may not be enforced or relied upon unless the waiver is in writing signed on behalf of the City. C. City's Right of Reentry: As an additional remedy, -upon --the giving of written notice of cancellation or termination, the 1 City has the Right to reenter any part of the premises on the ' effective date of cancellation or termination without further notice of any kind, remove any person, and regain and resume possession either with or without the institution of summary or a legal proceeding or otherwise. However, any reentry may not in any manner affect, alter, or diminish any of the obligations of Concessionaire under the contract. D. Additional Rights of the City: Upon termination or cancellation of the contract, or upon reentry, the City may regain or resume possession of the premises, may occupy the premises, and has the right to permit any person, firm, or corporation to enter upon and use the premises. Any occupation by others may be of any part of the premises for a period of time the same as or different from the balance of the term remaining under the contract, and on terms and conditions the same as or different from those set forth in the contract. The City also has the right to repair or to Pi make any structural or other change in the premises that is necessary in the City' s sole judgment to maintain the suitability of the premises for the uses and purposes similar to those granted under the contract without affecting, alter, or diminishing the obligations of Concessionaire under the contract. E. Survival of Concessionaire 's Obligation: If the contract is terminated or cancelled by the City or if the City reenters, regains, or resumes possession of the premises, all of the Concessionaire ' s obligation under the contract survive and remain in full force and effect. Subject to the City' s obligation to mitigate damages, the amount of the fees and II charges becomes due and payable to the City to the same extent, at the same time, and in the same manner as if no termination, cancellation, reentry, regaining, or resumption of possession had taken place. The City may maintain separate 11, actions to recover any money then due, or at its option and at any time, may sue to recover the full deficiency. The amount payable for that portion of the term subsequent to termination, cancellation, reentry, regaining, or resumption 1' of possession will be calculated as follows: 1 . On account of Concessionaire' s minimum rent guarantee obligation, the cumulative total of fees due less the amount paid before the effective date of cancellation. H. ii PI' . SPECIFICATIONS--4101 SHOP CONCESSION411 PAGE BS 16 2 . Closure damages for any time of unapproved closure prior to the effective date of cancellation. F. Waiver of Redem tion and Dama es: Concessionaire waives any 11, rig t of re emption granted y or under any present or future law or statue in the event it is dispossessed for any cause, or in the event the City obtains or retains possession of the premises in any lawful manner. Concessionaire further agrees that in the event the manner or method employed by the City in reentering or regaining possession of the premises gives rise to a cause of action in Concessionaire in forceable entry and detainer under the laws of the State of California, the total amount of damages to which Concessionaire is entitled is the sum of One Dollar ($1) , and Concessionaire agrees that this provision may be filed in any action as its stipulation fixing the amount of damages to which Concessionaire is entitled. G. Surrender of Possession: Concessionaire 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, peaceable, quietly, and in as good order and ' condition as the premises now or hereafter may be improved by Concessionaire or the City, reasonable use and wear and tear excepted. The Concessionaire will be allowed a maximum of ten (10) calendar days after the effective date of the cancellation, expiration or termination of the contract within which to remove all of the Concessionaire' s personal property, 1 ' equipment, furniture, and fixtures from the premises. The Concessionaire and the City agree, as part of the consideration for the contract, that all property of whatever nature, design, purpose, or source of origin remaining on the premises after the expiration of the ten (10) calendar days becomes 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 the City sees fit. XIII TRANSITION AT TERMINATION/CANCELLATION/EXPIRATION OF CONTRACT A. The following are special definitions for this section only: ij 1 . Turnover is defined as midnight of the day on which the Concessionaire' s concession rights, and operational responsibilities under the contract end as a result of the termination, cancellation, or expiration of the contract. 2 . Transition is defined as the period of time before Turnover during which the gift shop concession described Iii 1111' IC I , 11 SPECIFICATIONS--GIO SHOP CONCESSION PAGE BS 17 I in the contract is being turned over to a succeeding concessionaire. 1' B. The City and the Concessionaire mutually acknowledge and agree that upon the termination, cancellation, or expiration of the contract, the City has the right to award any subsequent L;. concession contract to the most favorable bidder. i, C. Concessionaire understands and acknowledges that it is not practical or possible to predict exactly what the transition schedule and procedures should be to best serve the needs of the traveling public and the City upon the expiration of the it contract. Therefore, as part of the consideration for the contract, the Concessionaire agrees that the City has the right to determine what the transition schedule and procedures will be so that the needs of the traveling public and the City are best served. II, The Concessionaire will at no cost to the City remove from the premises all of the Concessionaire' s fixtures, furniture, and equipment or negotiate with the succeeding concessionaire to purchase any or all fixtures, furniture or equipment. D. At least six (6) calendar months prior to turnover, the City may provide the Concessionaire with written notice of the transition plan that the City has determined best serves the needs of the traveling public and the City. However, if the contract is cancelled, or terminated by the City for default by if the Concessionaire, said six month notice is not required. E. The Concessionaire agrees to diligently execute the transition plan determined by the City, to abide by the time schedule, and to cooperate completely with the City and the succeeding concessionaire in carrying out the transition plan. XIV GENERAL CONDITIONS A. Execution by City. The contract is of no effect until it has been signed by the City. B. Approval by City. Any approval required from the City by the contract will not be unreasonably withheld. C. Notices. Any notice required by the contract must be hand delivered or sent by registered or certified mail to the appropriate party at the address set forth on page one of the bid proposal or to any other address which the parties subsequently designate in writing. All notice periods begin on the date of receipt. SPECIFICATIONS--GI•BOP CONCESSION III . , ` PAGE BS 16 I D. Modification. The Concessionaire agrees to any modification that the City may make to the contract in order to meet the revised requirements of federal or state grants, to operate the airport, or to conform to the requirements of any revenue ii; bond covenant to which the City is a party. Provided, a ; � modification may not act to reduce the rights or privileges granted to the Concessionaire by the contract nor act to cause the Concessionaire financial loss. I No modification or amendment of the contract is effective I unless in writing and signed by both parties. E. Bid Documents. It is expressly understood and agreed that ri the Notice Inviting Bids , Bid Proposal, Bid Specifications, 1 Bid Security, and Performance Bond associated with the award of the contract to the Concessionaire are a part of the I;' contract, and each of the parties to the contract agrees to carry out and fully perform all of the rights and obligations , , in each document. F. Interrelationship of Provisions. The articles, general covenants, special covenants, supplements, attachments, and ' drawings attached as exhibits are essential parts of the contract and are intended to be cooperative, to provide for the use of the premises, and to describe the respective rights and obligations of the parties to the contract. 1 G. Folding Over. If the Concessionaire holds over and remains i in possession of the premises after the expiration of the contract without a written renewal, the holding over will not !, operate as a renewal or extension of the term of the contract, but only creates a tenancy from month to month, regardless of i' any rent payment accepted by the City. The Concessionaire' s obligation to perform under the contract continues until the I ; month to month tenancy is terminated by the City. The City may terminate the tenancy at any time by giving the �; Concessionaire at least ten (10) days prior written notice. B. Validity of Parts. If any part of the contract is declared H to be invalid by a court of competent jurisdiction, the I' remaining parts of the contract continue in full force. li'• I . Conflicts Between Concessions. If a 'Et exists between the Concessionaire and an o er tenant, lessee, or concessionaire on the ,airport as to the services to be provided by respective concessionaires or lessees, the Management will decide which services may be provided and by I , whom. Concessionaire agrees to be bound by the decision. 1 C. i_6 ,( I i_ (1_ ___. ia.,cL (2,. A 6-6 it ` SPECIFICATIONS--GIsSHOP CONCESSION • PAGE BS 19 J. Advertising. The display by the Concessionaire of any sign, a vert s ng, or similar matter in the terminal without the prior approval of the Management is prohibited. R. Radio Interference. At the City's request, the Concessionaire w discontinue the use of any machine or device that interferes with any government operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. L. National Emer enc In case of any national emergency declare y the a eral government, the Concessionaire may not hold the City liable for any inability to perform any part of the contract as a result of the national emergency. M. Disasters. If in the determination of the City, fire, flood, earthquake or other casualty damages the terminal so extensively as to render it untenantable, either party may elect to terminate the contract upon written notice to the other party. If termination occurs, the rent payable under the contract must be prorated up to the time the terminal becomes untenantable. N. Condemnation. If the premises are condemned by any proper authority, the term of the contract ends on the date the Concessionaire is required to surrender possession of the premises. The rent payable under the contract must be prorated up to the time of condemnation. 0. Quiet Enjoyment. The City agrees that: it has full and unencumbered title to the premises; it has the right and the lawful authority to execute the contract; Concessionaire will have, hold, and enjoy peaceful and uninterrupted possession of the premises; and the City will, at its awn expense, use its best efforts to make possible and defend the peaceful and uninterrupted possession by Concessionaire of the premises for the full term of the contract. ?N CONTACT BETWEEN VENDOR AND CITY OF REDDING 1 . Contact for additional Information DOYLE RUFF, DIRECTOR OF AIRPORTS, 916-224-4321 . CAROLYN ROBERTS, PURCHASING OFFICER, 916-225-4137 If a bidder discovers any ambiguity, conflict, discrepancy, omission, or other errors in the Bid, he shall notify Carolyn Roberts, City Purchasing Officer, in writing by Thursday, March 22, 1990 . Inquiries concerning the Bid should be submitted in it SPECIFICATIONS--GYI SHOP CONCESSION 411 PAGE BS 20 ,t • writing to Carolyn Roberts, City Purchasing Officer, 760 Parkview Avenue, Redding, CA 96001-3396, and the envelope should be marked Gift Shop Concession" . Inquiries are to state the page and applicable paragraph number (s) to which the question (s) pertain. 2. Letters of Objection Any bidder believing that any part of the bid document is discriminatory against the bidder or precludes the bidder from being given reasonable consideration in the bid proposal process must submit a letter by Thursday, March 22, 1990 to Carolyn Roberts, City Purchasing Officer, clearly stating the specific objections and the areas of concern to the bidder and including a proposed method for resolution of such objections. Bidders are cautioned that any such objections not timely raised in the manner specified herein, shall not be considered. The City, upon timely receipt of any such letter of objection, shall consider the bidders objections and when in the opinion of the review panel, modifications of the bid documents shall serve the best interest of the City, revisions to this bid, in the form of an addendum, shall be issued to all bidders. 3. Return of BID In the event your firm or organization decides not to submit a bid proposal , it is requested that you return this bid within ten (10) days of issuance-. Please include a letter indicating that your firm does not wish to bid and the reasons which influenced your decision. 4. Pre-Bid Conference For purposes of answering questions and clarifying detail, a pre-bid conference will be conducted on Thursday, March 15, 1990, 1 at 1 : 30 P.M. , City Hall Conference Room, 760 Parkview Avenue, Redding, California. It is strongly recommended that all i' interested parties be in attendance. 5. Submission of Bid Proposal Proposals are due not later than Tuesday, April 3, 1990, at 3 : 00 P.M. including any submitted by mail. Proposals should be delivered to: City of Redding City Clerk 760 Parkview Avenue Redding, CA 96001-3396 Attn: Gift Shop Concession - B.S. 12290 1 I ,: ! j I „ , pis ii . SPECIFICATIONS--GIOSHOP CONCESSIONAft " ' ` PAGE BS 21 XVI EVALUATION CRITERIA Granting of a contract shall be based on bidders past experience in the concession field or retail field of sufficient relativity to gift shop experience, quality of service, years of service, diversity of merchandise , type, quality and quantity of equipment resource/resources, and percentage of projected profit for the City. All of the above will be reviewed by the review panel. The City of Redding reserves the right to reject any and all proposals. Non-acceptance of any proposal will not imply criticism of the proposal or convey any indication that the proposal or service was deficient. Non-acceptance can mean that another approach was deemed to be more advantageous to the City of Redding. All participating vendors will be notified of the decision that is reached. Oral Presentations Bidders may be requested to orally present highlights of their bid proposal to the City or its representatives. Gift Shop Concession Contract During the bidding process, the City of Redding makes the following assumptions: Assumptions: A. All concession percentages and minimum rent guarantee shall be included and specified in the bid. I;; B. That each and every statement contained in the bid is correct and complete. The contents of the bid is correct and complete . The contents of the bid of the selected vendor will be considered as contractual obligations. Failure to meet those obligations may result in disqualification of the bid proposal. C. Al]. material submitted in response to this bid becomes the property of the City of Redding and may be returned only at H the option of the City. Bids submitted may be reviewed and evaluated by any person (s) at the discretion of the City of Redding. XVII NOTE: If there are any deviations from the specifications set forth herein, the bidder shall note the deviations in his bid. Failure to note a deviation from the specifications may be grounds for ii ' i £SPECIFICATIONS--GI HOP CONCESSION • 1 , ' PAGE BS 22 I4 rejection by the City of that particular bid. Where deviations are noted, the City reserves the right to accept a bid containing such ii. deviations provided that, in the sole opinion of the City, the deviation or deviations so noted do not affect the overall capability of the item bid to perform the function for which it is to be acquired and such deviations result in a lesser total cost to �." the City for the subject item. i1 1 li I II ii I . II f I ' . .I - iii .. ... ., . .., , H . . ,,,,, .:, .. w —,,, , I W 6,1 \ O N \ \ ce \ \ E , .. , . i , ,, , 0 i,, ,.,_1 0- cr 1 cr W 2 • 0 ' J — Cc •i O IIIl;\\ \ \' \. u I \ ' N \ \\\ .I w i' W \ \ ` w0 \\\ \ .I J V • F- \\ \ i i; n u II'cn ~ I w c- i ' O I O i . cr H W I ' cr , in1N • , EXHIBITW