HomeMy WebLinkAbout _ 4.2(a)--Authorize Temporary Waiver to Car Rental Operator Payments GI �" Y C� F
� � �- ' � ° � � i � CITY OF REDDING
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REPORT TO THE CITY COUNCIL
MEETING DATE: October 21, 2025 FROM: Steve Bade, Interim City
ITEM NO. 4.2(a) Manager
***APPROVED BY***
sbade@cityofredding.org
t��re a �, 7�t l df 14/242�
sbade@cityofredding.org
SUBJECT: 4.2(a)--Authorize Temporary Waiver to Car Rental Operator Payments for the
month of October 2025
Recommendation
Authorize the City Manager, or designee, to issue a temporary waiver for the October 2025
minimum monthly guarantee payment required of car rental operators located at the Redding
Regional Airport due to the ongoing impacts of construction at the Redding Regional Airport.
Fiscal Impact
Due to the construction occurring at the Redding Regional Airport (RDD), on-site car rental
operators have requested temporary relief from their minimum monthly guarantee (MMG)
reguirement for the month of October 2025.
Pursuant to the rental car agreements with the noted rental car operators, payments are the
greater of the MMG or 10 percent of gross receipts. In a month where gross receipts are less than
the MMG, the airport would receive $14,796.89 collectively across all three agreements.
Rental Car Concession MMGs '
AVIS $7,170.00
Bud et $6,426.89
Hertz $1,200.00
During October 2025, the Airports Division anticipates that some local car rental sales have and
will occur during the runway rehabilitation project and parking lot project but it is unclear
whether those sales will exceed the MMG. At most, by waiving the MMG, the Airport would
farego no more than $14,796.89 in concession payments (based on the MMG). Pursuant to the
rental car agreements, the car rental operators will pay 10 percent gross receipts for transactions
during the waiver period which wi11 offset the potential lost revenue to the airport that would
have been received from the MMG.
Report to Redding City Council October 14,2025
Re: 4.2(a)--Authorize Temporary Waiver to Car Rental Operator Payments Page 2
Alternative Action
City Council may choose to decline this action and provide alternative direction to staff.
Background/Analysis
Ongoing construction at the Redding Regional Airport includes both the Runway 16/34
Rehabilitation Project and the Passenger Terminal Parking Lot Improvements Project, which
each carry significant impacts on the business operations of the rental car operators who have
reduced customers due to the airport closure and must also reposition their inventory due to the
parking lot improvements. By temporarily waiving the MMG and retaining the concession on
gross receipts, the rental car operators may realize a reduced burden while sti11 paying a
concession that correlates to the 1eve1 of activity. Each of the contracts impacted provides for the
City to make forbearances or indulgences without constituting a waiver of the covenant or
condition in question.
In addition to AVIS, Budget and Hertz - Enterprise and TURO also operate at the Redding
Regional Airport. However, as remote/off-site operators their contracts do not include MMG
and thus their own costs are greatly reduced, therefore, they are not being offered the same relief
as the on-site operators.
EnviNonmental Review
This is not a project defined under the California Environmental Quality Act, and no further
action is required.
Council Priority/City Manager Goals
� Government of the 21st Century — `Be relevant and proactive to the opportunities and
challenges of today's residents and workforce. Anticipate the future to make better
decisions today."
Attachments
SJ Denham DBA I�ertz Car Rental - C9106
Budget Rental Car Agreement - C-9108
AVIS Rental Car Agreement - C-9107
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� � � �o o � 777 CYPRESS AVENUE, REDDIN6, CA 96001
� ,�/ '_ .; P.O. Box 496071, REDDING, CA 96049-6077
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PAMELA MIZE,CITY C�ERK
SHARLENE TIPTON,ASSISTANT CITY CLERK
530.225.4447
530.225.4463 FAX
November 22, 2021
SJ Denham Inc. DBA Hertz Rentals
Attn: Randy J. Denharn
P.O. Box 990326
Redding, CA 96099-t7326
SUBJECT: Agreement for Rental Car Concession and Permit for Commercial
Activities, C-9�06
Dear Randy J. Denham,
Enclosed please find the fully executed ori�inal of the above referenced Agreement for
Rental Car Concessions and Permit for Commercial Activities by and between the City of
.
Reddin and SJ Denham Inc. DBA Hertz Renta�s f r
g o the purpose of:providing a rental car
concession at the Redding Municipal Airpart.
If you have any questions regarding this agreement, or if w� can be of assistance, please
contact the Office of the City Clerk at (530) 225-4044.
Sincerely, ��
� �
�
,�—���
Amber DalPQggetto
Executive Assistant
Enclosure
� cc: Stephanie McCollum
Jim Wadleigh
Ellen Grannis
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CITY OF REDDING
RENTAL CAR CONCESSION AGREEMENT
AND
PERMIT FOR COMMERCIAL ACTIVITIES
THIS AGREEMENT is made by and between the City of Redding, a municipal
corporation (City), and SJ Denham Inc. DBA Hertz Rentals (Operator) for the purpose of
providing a rental car concession at the Redding Municipal Airport.
RECITALS
A. The City owr�s and c�perates the Redding Municipal Airport (Airport).
B. It is necessary in the pramotion and accommodation of air commerce and air
trans�artation that qualifi�d, economical, courteous, safe, clean and efficiently
operated rental car faciliti�s be available for the benefit of air travelers and the public.
C. Operatc�r was awarded the right to operate one of three available rental car
concessians at the Redding Municipal Airport.
D. Operator has been apprc�ved to occupy a portion of the Airport terminal building,
utilize the rental car-ready parking lot for the storage of vehicles, and use the vehicle
service center car staging and wash'r�ck facilities to operate a rental car concession.
E. All of the Airport is not required for aerc�nautical activities. The City desires to use
portions of the Airport to provide fa�ilities and services for other than aeronautical
activities for the benefit of the gez�eral public.
AGREEMENT
SECTION 1. PREMISES
A. Those portions of the Airport to be used exclusively by Operator pursuant to this
Agreement are Site C, in the Airport Te�rminal Building, Site C, in the rental car-
ready parking lot, and Site C, in the vehicle service center and wash rack facility.
B. The City retains the right at any time to change the location of the Premises to be
used pursuant to this Agreement at the discretion of the Airports Manager. City
shall provide thirty (30) calendar days' prior written notice to Operator of any
change in the Premises. �
SECTION 2. TERM
� A. The term of this Agreement shall be for a period of five (5) years commencing at (�
� 12:01 a.m. on December 1, 2021, and expiring at 12:00 a.m. on November 30, \�
2026. ��
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B. The City shall have two (2) one-year options, through November 30, 2028, to
unilaterally extend the term of this Agreement. If City exercises such option, all of
the terms and conditions of this Agreement shall remain in full force and effect,
with the exception of this clause covering City's option to extend the term of the
Agreement. City may exercise its option to extend the term by written notice to the
Operator no less than one hundred eighty (180) calendar days' prior to the
expiration of the initial term, and first option term, if any.
C. This Agreement is entered into with the understanding that the City will initiate an
open competitive process for the provision of rental car service beyond the
expiration of this Agreement.
SECTION 3. USE
Operator is �.uthorized to use the Premises for the sole purpose of operating and
maintainin� a rental car conc�ssion at the Redding Municipal Airport.
A. Site C, in the Airport Terminal shall be used for the purpose of conducting on- .
ailpart rental car concession transactions and related operations for the convenience
of passengezs,patrons and tenants utilizing the Airport.
B. Site C, in the Ready Car Space Locations shall be used for the purpose of pre-
positioning renta� cars for custarners and providing a designated area to which
customers return rental cars. Op�rator shall not utilize the ready-cax parking spaces
for the storage of�ehicles l�r��r than fiwenty (20) feet in length (i.e. recreational
vehicles) nor shall Operator's empl�yees utilize these parking spaces for the
purpose of parking their personal�ehicles.
C. Site C, in the Car Wash area shall be used fc�r the purpose of staging vehicles for
washing and detailing. Uperator �hall nt�t be perrnitted to self-fuel vehicles or
conduct major maintenance or repair ser�ices on rental vehicles on the Airport.
SECTION 4. PERMIT FOR COMMERCIAL ACTIV�TIES
� This Agreement shall also constitute a Permit fc�r Cc�rnrnercial Activities ("Permit"), and
' the terms hereof shall constitute the terms for a permit for commercial activities required
by Redding Municipal Code Section 3.08.030. The City Council of the City has determined
that these commercial activities are compatible with the use of the Airport, and that the
best interests of the public and the City of Redding will be served by approval of such
commercial activities._A breach or default in the terms of this Agreement shall also
. _ _ _ _
constitute a breach of the Permit.
SECTION 5. CONCESSION FEES AND CHARGES
A. Concession Fees. The monthly concession fee to be paid by Operator to City under
this Agreement shall be the GREATER of the Minimum Monthly Guarantee or
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the Percentage of Gross Receipts payable each month during the twelve month
periods as follows:
Percentage of
12-Month Period Minimum Monthlv Guarantee or Gross Receipts
� December 1, 2021, thru November 30, 2022 $ 1,000 10 %
Amount in Numbers
December l, 2022, thru November 30, 2023 $ 1,000 10 %
Amount in Numbers
December 1, 2023, thru Novemb�r 30, 2024 $ 1,100 10 %
Amount in Numbers
December 1, 2024,thru November 30, 2(}25 $ 1,200 10 %
Amount in Numbers
December 1, 2025,thru November 30, 2026 $ 1,200 10 %
Amount in Numbers
B. Operator shall pay t�a �ity the Minirnum Monthly Guarantee ar the percentage of
gross receipts,whichever is greatex fc�r the prior calendar month,without deduction,
set off, prior notice or demand an ar before the twentieth (20`�') day of each month
(no payment shall be due under fhis agre�me�t on December 20, 2021).
C. Each payment specified in Sectian 5 above shall be submitted with a Monthly
Certified Activity Report, atta�hed hereto as Exhibit A, which shall state the
Operator's gross receipts during the prior calendar month.
D. If City exercises its option to extend the term of this agreement for an exterided
term, Operator shall pay to City the most current Minimum Mc��t`tl�ly Guarantee or
percentage of gross receipts, whichever is great�r, �uz`su�nt to the terms and
conditions of the Agreement.
E. All payments required under this Agreement shall be paid to City, addressed to the
City Treasurer, at 777 Cypress Avenue, Redding, California, 96001, or any other
place or places that City may designate by written notice to Operator. Payments not
paid when due and/or not submitted with the appropriate Monthly Certified Activity
Report are subject to late fees and penalty charges as shown in the City's then
current Schedule of Fees and Charges.
SECTION 6. GROSS RECEIPTS DEFINED
A. "Gross receipts" of Operator means (1) 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 automobiles and without regard to the manner in which,
or place at which, the automobiles are furnished to Operator's customers, and
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without regard to whether the automobiles are returned to the Airport or to some
other location; (2)all net time and mileage revenue from any automobile exchanged
from Operator's Redding area operations for an automobile originally rented at the
Airport;and,(3)all fees of any nature charged or generated by Operator,Operator's
permitted vendors, licensees, or concessionaires, if any, whether for cash or on
credit(whether collected or not)pursuant to this Agreement. Any transaction on an
installment basis or otherwise involving the extension of credit, shall be treated as
a sale for the full price at the time of the transaction, irrespective of the time of
payment.
B. Gross receipts shall not include, or if included there shall be deducted (but only to
the extent they have been included), the following:
1. Sums and credits received in the settlement of claims for loss of or damage
to concession�or merchandise.
2. Gift certificates,'or similar vouchers, until such time as they have been
converted into a sale by redemption.
3. Sales and use taxe�, so-called luxury taxes, consumer's excise taxes, gross
receipt taxesr r�nt�l car transaction fees and other similar taxes now ar in
� the future ��posed on the sale of food, beverages, merchandise or services,
but only if such taxes are added to the selling price, separately stated,
collected separately frc�m the selling price of inerchandise or services, and
collected frtrrn custc�m��s.
4. Sales of fixtures, trade fi�tures, equipment, vehicles or personal property
that are not merchandise as allowed in this Agreement.
SECTION 7. STATEMENT OF GROSS RECEIPTS; REYIEW
A. Operator shall furnish to City a statement of Op�r�tor's gross receipts, as defined,
on the City's Monthly Certified Activity Report (E�htbit A), attached and
incorporated herein, on or befare the twentieth(2�`�'j day of each month following
the reporting period. Each statement shall b� signed and certified to be correct by
Operator or its authorized representative:
B. Operator shall keep at its address of record full and accurate books of account,
records, cash receipts, and other pertinent data showing its gross receipts. Operator
shall maintain accurate receipts and shall maintain procedures for accurately
recording any and all sales and other transactions made on the Premises and shall
record all gross sales and other transactions made on the Premises or pursuant to
this Agreement. Operator's books of account, records, cash receipts, and other
I pertinent data shall be kept for a period of two (2) years after the end of each year
of this Agreement. The receipt by the City of any statement, or any payment of
percentage gross receipts for any event shall not bind the City as to the correctness
of the statement or payment.
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C. The City shall be entitled during the term of this Agreement and within two (2)
years after the expiration or termination of this Agreement to inspect and examine
all Operator's books of account, records, cash receipts, and other pertinent data, so
the City can ascertain and/or verify Operator's gross receipts. Operator shall
cooperate fully with the City in making the inspection. The City shall also be
entitled, once during each year of this Agreement and once after the expiration or
termination of this Agreement, to an independent audit of Operator's books of
account, records, cash receipts, and other pertinent data to determine and/or verify
Operator's gross receipts, by a certified public accountant to be designated by the
City. The audit shall be limited to a determination of Operator's gross receipts and
shall be conducted during regular business hours.
D. If the audit sht�vc�s that there is a deficiency in the payment of any percentage gross
receipts paid to the City,the deficiency shall become immediately due and payable.
The ct�sts of the audit shall be paid by the City unless the audit shows that Operator
understated the gross rec�ipts by two percent(2%) or more,in which case,Operator
sh�.11 pay all the City's ct�s#s of the audit.
E. Exce�rt as may be required by law, the City shall keep any and all information
gained frc�rn su�h statem�nts� inspections, or audits confidential and shall not
disclose it vvithout Operator's wri�ten consent other than to carry out the purposes
of this Agreement.
SECTION 8. SECURITY DEPOSIT
A. Operator shall post with the City Clerk c�fthe City„a security deposit in the form of
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cash or check in favor of the City in an amount equal to the first two (2) months
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minimum monthly guarantee ($2,�100) to assure payment under the terms of this
Agreement.
B. The security deposit shall be available uncondition���y to City for correcting any
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default or breach of this Agreement by Operator. At the sole discz�etion of the City,
a claim may be made by the City against the secur�t�d�pc��it in the event of one of
the following:
1. Failure on the part of Operator to make timely payment of any amount due
the City under the terms and conditions of this Agreement;
2. Any damage to or loss of Airport property caused by Operator, its officers,
employees, agents and invitees, or Operator's activities pursuant to this
� Agreement;
3. Failure to pay other charges, if any;
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4. Removal expenses incurred by the City if Operator does not promptly
remove Operator's property from the Airport after this Agreement expires
or is terminated; or
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5. Costs incurred by the City at the time this Agreement expires or is
terminated if Operator fails to leave the Airport in satisfactory condition.
C. A claim made by the City against the security deposit shall not cure the default by
Operator. However, at the City's sole discretion, if the City elects to make a claim
against the security deposit, the City may, in writing, expressly waive the default
by Operator. City has no obligation to provide notice to Operator prior to claiming
funds from the deposit. Upon written notice by the City that a claim has been made
against the deposit and the amount of such claim, Operator shall, no later than ten
(10) calendar days after notice is deemed received by Operator pursuant to Section
31,deposit with the City the amount of said claim thereby fully funding the deposit.
D. Upon ter�ninatit�n of this Agreement, City shall return to Operator that portion of
the se�urity deposit remaining after any deductions authorized by this Agreement
or c�therwise authorize�i by law. Operator shall not be entitled to any interest on any
partion of the security deposit.
SECTION 9. TAXES
Operator is ad�ised that, pursuant to Revenue and Taxation Code §107.6, a possessory
interest subj ect ta taxation may b�cr��.ted by the grant of this Agreement and that Operator
may be subject to the payment of property taxes levied upon the interest. Operator shall
promptly pay before delinquency any ta�es and/or special assessments assessed against the
Premises and any impro�ueznents and/ox t�peratQr's personal property, and any possessory
interest ta�c levied by reast�n of�ts use and/or c�c�upancy of the Premises. On demand from
the City, Operatar shall furnish th�City with satisf�.ctc�ry evidence of these payments.
SECTION 10. SERVICE
� A. Operator shall operate the Rentai Car Cc�ncession in accordance with the highest
standards and practices of the automobile rental trade. Further, Operator
understands and acknowledges that the City's oblzgation to faciiitate air travel of
the public at the Airport includes efficiently operated Ren#al Car Concessions for
the use of air travelers and other members of th�public. Consequently, and as an
additional consideration to the City for a�warding this Agreement to the Operatar,
Operator covenants as follows:
l. To furnish service on a fair, reasonable and nondiscriminatory basis to all
users of the Airport. Operator shall furnish prompt, courteous,and efficient
service adequate to meet all reasonable demands for its services at the
'� Airport. It shall maintain and operate the Concession in a first-class manner
and shall keep its premises in a safe, clean, orderly, and inviting condition
at all times satisfactory to the Airports Manager.
2. Operator shall maintain on the Premises an adequate number of vehicles to
meet reasonable public demand. Such automobiles shall at all times be
maintained by Operator, at its own cost and expense, in good operating
order and free from known or reasonably discernible mechanical defects,
and shall be kept in clean, neat and attractive condition, inside and out. All
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automobiles offered for rent to the public shall be maintained in safe and
operable condition, and all recall notices issued by automobile
manufacturers relating to said automobiles shall be honored. Operator
agrees that it will at no time use automobiles whose year model is more than
two (2) years older than the current year model. All vehicles of the
Operator's fleet shall be equipped with factory or dealer-installed air
conditioning. City has the right to disapprove of any automobile supplied
by Operator that does not meet or exceed the standards contained herein for
public use at the Airport. Notice of such disapproval shall be submitted to
Operator by the City in writing with the reasons therefore and Operator shall
take immediate action to withdraw such unsatisfactory automobiles from
service at the Airport.
3. Uperator's rental counters shall be kept open so as to provide ma�cimum
'availability of service and adequate rental opportunity to the traveling
" public during suckt'hours as may be established or reestablished from time
` to time by the Ai�ports Manager. Hours of operation shall be not less than
twelve(12)hours per day from the hours of 8:00 a.m.to 8:00 p.m.The hours
of operation may be reduced or modified with the prior written approval of
th�Airpo�ts Manager.
4. Operator shal� select and a�point a full-time manager of its rental car
concession �ierein authorized. Such person shall be qualified and
experienced,vested witk�full power and authority to act in the name of the
Operator with r�spect tc� method, manner, and conduct of the operation of
Operator's rental car concessit�n t�n the Airport. Such manager or supervisor
shall be available at the Airport during regular business hours, and at all
times during the manag�r's absence a duly authorized subordinate shall be
in charge and available on the Airport.
I 5. Operator shall have the capability of provxding both local rentals and
nationwide one-way rentals.
6. Operatar shall be part of a natic�nwide cc�mputerized reservations system
allowing rental car reservations ta be rnade from anywhere in the nation
through airline and travel agent computer systems.
7. Operator shall have a nationwide "800" telephone number reservation
service.
8. Operator shall provide nationwide rental car replacement to the customer
for rental cars that develop mechanical problems.
9. All automobiles used by the Operator for the concession must have a
business logo or name placed in a consistent location on the windshield or
body of each automobile. Minimum logo size shall be two square inches in
area.
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10. Except in case of emergency, the Operator shall obtain the approval of the
Airports Manager prior to any space closure outside of normal operating
hours.
11. Operator shall control the conduct, demeanor and appearance of its
employees and representatives. Operator and their employees while on
duty, shall wear acceptable attire which at all times shall be maintained in a
neat, orderly and clean condition. Cutoff shorts, undershirt-type shirts, or
clothing of suggestive nature are prohibited and shoes are required.
Employees will wear name-tags which display their name and the name of
the rental car concession or company logo. Such employees shall be trained
by Operator to render a high degree of courteous and e�cient service and
it sh�.il be t�e responsibility of the Operator to maintain close supervision
t�ver such ernployees to assure the rendering of a high standard of service to
the public and the patrons of the rental car concession.
12. Operator shall accept major or nationally recognized credit cards.
13. Operator and its employees shall abide by al�l reasonable rules, regulations,
�c�licies, and instructit�ns of the Airports Manager or his designee.
SECTION 11. PARKING AND ACCESS
A. Emplovee Parkin�:; Operator's employee� will be issued an annual parking permit
to use the authorized eannplr��'ee vehicl�-parking spaces located on the Airport.
Authorization to use the parking lat is subject to the annual parking permit being
displayed on employees' vehicl�s at all times. Employees of Operator that lose or
destroy a parking permit will b�charged a replacement fee to reissue a new parking
� permit.
B. Access to Premises. City shall provide Operator with keys to access the Premises.
Operator is responsible for the cost to replace all tt�st keys. apezator is responsible
for the costs associated with re-keying the Premis�s if the Airports Manager
determines that the lost or misplaced key may cc�mpromise Operator's security.
SECTION 12. AIRPORT-FACILITIES
Nothing contained in this Agreement shall be construed as entitling Operator to the
i exclusive use of any services, facilities, or property rights of any nature at the Airport,
except for the purpose and use of the Premises as set forth in this Agreement .and the
Premises as described.
ISECTION 13. MECHANIC'S LIEN
IOperator shall keep the Premises free from any liens arising out of any work performed,
'� materials furnished, or obligations incurred by Operatar.
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SECTION 14. WASTE; OUIET CONDUCT
Operator shall not commit or suffer to be committed any waste upon the Premises, or any
nuisance or other act or thing which may disturb the quiet enjoyment of any other occupant
of or user of the Airport or the City's adjoining property.
SECTION 15. STORAGE
Operator shall not store anything outside of the Premises without the prior written approval
of the Airports Manager.
SECTIONI 16. OPERATOR'S SECURITY RESPONSIBILITIES
Operator shall�c�mpletely secure Site in the Airport Terminal and Site in the Car
Wash Location during non-op��rating hours. Operator shall pay any fines imposed upon
the City, by the Transportatic�n Security Administration or the Federal Aviation
Administration, for violation vf 'security caused by actions of Operator ar its agents,
employees, t�r invitees. Operator shall pay such fine within thirty (30) calendar days of
written notic� from the City of the obligation to pay the fine. Failure to comply with the
provisions ofthis sec�ion is grounds foz termination of this Agreement by the City.
SECTION 17. RULES AND REGULATI�NS; COMPLIANCE WITH LAWS
Operator shall, at Operator's sole cost and expense,comply with all requirements, statutes
, and regulations of all city, county, state and federal authorities now in force, or�which may
hereafter be in farce, pertaining tc� (7perator�s use of the Premises or its services to be
performed under this Agreement. Operatcar's use of the,Premises shall conform to all
Airport rules and regulations and local bui�ding and fir��odes.
SECTION 18. MAINTENANCE AND ALTER�.Ti4NS
A. Operator shall, at Operator's sole cost and expense and at a11 times during the term,
maintain the Premises in a safe and attractive con�ztion and in the same condition
as received at the beginning of the term,c�rdinary �ear and tear excepted. Operator
shall do, or cause to be done without delay, al� fhose things which, in the opinion
of the Airports Manager, are necessary or desirable in the interests of safety or to
maintain the Premises in good repair and appearance. All damage caused to the
Premises and/or Airport by Operator, its officers, employees, agents and invitees,
shall be repaired at Operator's sole expense.
B. Operator shall not make or cause to be made any alterations or improvements to the
Premises, including modifications or alterations of the Premises' electrical
installations or equipment,without first securing the written consent of the Airports
� Manager. The Airports Manager may impose restrictions upon any proposed
alterations or improvements. All such alterations or improvements shall comply
with Airport Policy and all applicable.building, zoning and fire codes. Upon the
ternunation of this Agreement, at the sole option of the City: (1) The alterations or
improvements shall become the property of the City and shall remain on the
Premises; or (2) Operator shall remove all alterations or improvements and return
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the Premises to the City in substantially the same condition as the Premises existed
at the commencement of this Agreement.
C. City shall maintain electrical, plumbing and HVAC systems within the Airport
terminal facility in good condition and repair. 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, heating or air-conditioning, or for the failure or interruption
of any public or passenger conveniences.
SECTION 19. RIGHT TO INSPECT
A. The Cit�y and its authorized officers, agents, employees, volunteers, contractors,
subct�ntractors and otl�er representatives shall have the right to inspect and enter
upc�n the Premises for any purpose, including, but not limited to, the following:
l. To inspect the Premises at reasonable intervals during regular business
hours to determine whether Operator has complied with or is complying
with tl�e promises,terms, covenants and conditions of this Agreement;
2. To make repairs,additions,or alterations as may be necessary or convenient
for the conduct, safety, irnprovement, ar preservation of the Airport;
3. For emerg��cy purpases; and
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4. In the exercise of the City'�police pow�r.
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B. No inspection or entering on tk�e Pzemises by c�r on bek�alf of the City shall cause or
constitute a termination c�f this Agreernent, or be deemed to constitute an
� interference with Operator's use of th�Premises. !
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SECTION 20. INDEMNITY
Operator shall indemnify and defend the City,its€�fftcers, officials,employees, agents and
volunteers,-against and-hold-them-harmless-from any-and-all-claims,-losses,-damages,-civil
penalties, and liability for damages, including attorneys' fees and other costs of defense
incurred by the City, whether for damage to or loss of property or injury to or death of
person(s), including properties of the City and injury to or death of the City's officers,
officials, employees, agents and volunteers, arising out of or resulting from Operator's
possession or use of the Premises or activities hereunder or from the actions of Operator's
officers,employees,agents and invitees,unless such damage,loss,injury or death is caused
by the sole negligence or willful misconduct of the City.
� SECTION 21. INSURANCE
A. Unless modified in writing by City's Risk Manager, Consultant shall maintain the
following noted insurance during the duration of the Contract:
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Covera�e Required Not Required
Commercial General Liability �{
Comprehensive Vehicle Liability X
Workers' Compensation and Employers' Liability X
PropertyInsurance X
B. Operator shall procure and maintain from an insurance company authorized to do
business in the State of California, for the duration of the Agreement,insurance for
claims far injuries to persons or damages to property which may arise from or in
connection w�th the Operator's operation and or use of the Premises by the
Operatar, �t''s rnembers, agents, representatives, employees, contractors,
subcantractors, and invitees. The cost of such insurance shall be borne by the
Operafior. Insurance sha��be provided as follows:
'', l. Insurance Services Office form number CG-0001, Commercial General
Liability Insurance, in an amount not less than $1,000,000 per occurrence
�.nd $2,�40,000 general aggregate for bodily injury, personal injury and
pr€�perty damage;
2. Insurance �ervices O�c� form number CA-0001 (Ed. 1/87),
� Comprehensive Automolaile Liabilzty Insurance, which provides for total
limits of not �ess than $t,000,0(l(? combined single limits per accident
applicable to all c�wne�, non-owned and hired vehicles;
3. Property insurance against �11 risks of lass to any tenant improvements,
betterments, and contents at full replacement value. The property insurance
policy shall contain tk�e insiuer's waive�of sub�c�gation in favor of City, its
elected officials, officers, empio}�ees, agents and volunteers;
a Operator agrees that in the event o�any loss c�r partial or complete
destruction of those tenant irnpr�vements, betterments, and
contents, any proceeds of insu�a.nce received by Operator shall be
utilized in the replacement, reconstruction, or repair of the damage
or destroyed improvements, betterments, and contents.
4. Statutory Workers' Compensation required by the Labor Code of the State
of California and Employers' Liability Insurance in an amount not less than
$1,000,000 per occurrence. Both the Workers' Compensation and
, Employers' Liability policies shall contain the insurer's waiver of
subrogation in favor of City,its elected officials,officers,employees,agents
and volunteers;
5. Any deductibles or self-insured retentions must be declared to and
approved by City. At the option of the City, either the insurer shall reduce
or eliminate such deductibles or self-insured retentions as respects the City,
its elected officials, officers, employees, agents and volunteers, or the
11
Operator shall procure a bond guaranteeing payment of losses and related
investigations, claims administration and defense expenses.
C. The General Liability shall contain or be endorsed to contain the following
provisions:
l. City, its elected officials, officers, employees, agents and volunteers are to
be covered as additional insured. Such endorsement shall include liability
arising out of or in connection with Operator's operations,premises owned,
occupied, or used by Operator. The coverage shall contain no special
limitations on the scope of protection afforded to the City, its elected
officials, o�cers, employees, agents and volunteers.
2. The insurance coverage of Operator shall be primary insurance as respects
�ity; its elected officials, officers, employees, agents and volunteers. Any
insurance or self-insurance maintained by City,its elected officials,officers,
employees,agents and volunteers,shall be in excess of Operator's insurance
and shall not cantribute with it.
3, Coverage shall state that the insurance of Operator shall apply separately to
each insured against whom claim is made or suit is brought, except with
respect to the lirx�its of the insurer's liability.
4. E�ch insurance pc�licy r�quired by this Agreement shall be endorsed to state
that coverag� shall not be canceled except after thirty (30) calendar days'
prior written notice has been given to City. In addition, Operator agrees that
it shall nc�t reduce its ct��erage or limits on any such policy except after
thirty (30) cale�dar da�s' priar written notice has been given to City
B. Insurance is to be placed with in�urers with a current A.M. Best's rating of no less
than A-VII.
C. Operator shall designat� the City of Re�ding as a Certificate Holder of the
insurance. Operator shall furnish City with certificates of insurance and original
endorsements affecting the coverages required �y this Sectic�n. Certificates and
endorsements shall be furnished to: Risk Managern�nt Department, City of
Redding, 777 Cypress Avenue, Redding, �A �6001. The certificates and
endorsements for each insurance policy are tc�be signed by a person authorized by
the insurer to bind coverage on its behalf. All endorsements are to be received and
approved by the City's Risk Manager prior to commencement of this Agreement.
� D. The requirements as to the types and limits of insurance coverage to be maintained
� by Operator as required by this Agreement, and_any approval of said insurance by
I City, are not intended to and will not in any manner limit or qualify the liabilities
and obligations otherwise assumed by Operator pursuant to this Agreement,
including, without limitation, provisions concerning indemnification.
E. If any policy of insurance required by this Section is a "claims made" policy,
pursuant to Code of Civil Procedure § 342 and Government Code § 945.6,Operator
shall keep said insurance in effect for a period of eighteen (18) months after the
termination of this Contract.
I
i 12
(
F. If any damage, including death, personal injury or property damage, occurs in
connection with the performance of this Contract, Operator shall immediately
notify City's Risk Manager by telephone at(530)225-4068.No later than three (3)
calendar days after the event,Consultant shall submit a written report to City's Risk
Manager containing the following information, as applicable: 1)name and address
of injured or deceased person(s); 2) name and address of witnesses; 3) name and
address of Consultant's insurance company; and 4) a detailed description of the
damage and whether any City property was involved.
SECTION 22. HAZARDOUS MATERIALS
A. Hazardous substances or materials include, but are not limited to:
i1. Substances whi�h are flammable, explosive, corrosive, radioactive,toxic;
2. Any material or substances defined as hazardous substances, hazardous
` materials, toxic substances, or hazardous wastes in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42
� U.S.C. Sections 9601, et seq.), the Resource Conservation and Recovery
Act (42 �.S.C. Se��ioz�s 6901, et seq.), the Hazardous Waste Control Act
(California Health & Safety Code Sections 25100, et seq.) the Hazardous
Substance Accc�unt Act (California Health & Safety Code Sections 25300,
et seq.), California Healt� and Safety Code Section 25280, et seq.,
Hazardous Materials Release Response Plans and Inventory or the
� California Parter-Ct�lagne WaCe� Quality Control Act, (Water Code
Sections 13000, et seq.), and�11 amendrne�ts to these laws and regulations
' adopted or publications prt�r�ulgated pursu�nt to these laws;
�
, 3. Those asbestos-containing materz�ls defin�d and described in
Environmental Prote�tion Agen�y Report Nc�, 56/5-85-024 (June 1985)
whether or not friable,or any related or successc�r report, or other applicable
� government regulations defined or describin�such rnate�ial�;
4. Pesticides as defined by Section 136(u).QfFIFRA(7 U.S.C. Section 136)as
; may be present in soil or groundw�ter;
�
� 5. "Hazardous wastes" as defined in Section 25117 of the California Health
� and Safety Code, or as a chemical that is known to the State of California
"to cause cancer or reproductive toxicity" under the Safe Drinking Waster
� and Toxic Enfarcement Action of 1986, California Health and Safety Code
' Sections 25249.5, et seq.; and
6. Hazardous materials, substances or waste, or toxic materials, substances or
waste as those terms or similar terms are defined by any other federal, state
Ior local law or regulation or orders.
iB. Operator agrees to indemnify, protect, hold harmless, and defend City, its elected
,� officials, officers, employees, agents and volunteers from and against any and all
liability, including without limitation, (1) all foreseeable and unforeseeable
i
� 13
,�
consequential damages, directly or indirectly arising from the use generation,
storage, or disposal of hazardous materials by Operator, and (2) the cost of any
required or necessary repair, cleanup or detoxification and the preparation of any
closure or other required plans, to the full extend that such liability is attributable,
directly or indirectly,to the presence of use,generation,storage,release,threatened
release, or disposal of hazardous materials by Operator, its officers, employees,
agents and/or invitees on the Premises or Airport after the beginning of the term of
this Agreement.
C. Operator hereby releases City from any and all claims Operator may have against
City of whatever kind or nature resulting from or in any way connected with the
environmental condition of the Premises, including any and all claims Operator
may have ag�ins� City under the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended ("CERCLA"), or any other
fed�r�.I, state, or loc�l law, whether statutory or common law, ordinance, or
rtainin t� the release of hazardous materials into the environmental
r� ulation e g
� P
�r�m or at the Premises. Operator expressly waives the benefits of Civil Code
S�ction 1542, which provides as follows:
A gen�ral release does nt�t �xtend to claims which the creditor does not know or
i expect ta exist in his favor at t�e time of executing the release, which if known by
him must have materially affected his settlement with the debtor.
SECTION 23. FEDERAL REQUIREMENTS
To comply with Federal Aviafiic�n Administration req�irements, Licensee and its officers,
administrators,representatives, successc�rs and assigns,as part of the consideration hereof,
do hereby covenant and agree:
A. GENERAL CIVIL RIGHTS PR{�VISIt7N�: The ("Licensee") agrees to comply
with pertinent statutes, Executive Orders and such rules as are promulgated to
� ensure that no person shall, on the grounds of race, creeda ec�lc�r, national origin,
sex,age, or disability be excluded from participating in any activity conducted with
or benefiting from Federal assistance. If the ("Lxcensee") transfers its obligation to
another, the transferee is obligated in''the�ame manner as the ("Licensor").
This provision obligates the("Licensee")for the period during which the property
is owned, used or possessed by the ("Licensee") and the airport remains obligated
to the Federal Aviation Administration. This provision is in addition to that
� required by Title VI of the Civil Rights Act of 1964.
B. CIVIL RIGHTS — TITLE VI ASSURANCE: Title VI of the Civil Rights Act of
1964,as amended,(Title VI)prohibits discrimination on the grounds of race,color,
or national origin under any program or activity receiving Federal financial
assistance. Sponsors must include appropriate clauses from the Standard DOT Title
VI Assurances in all contracts and solicitations.
C. SOLICITATION CLAUSE: The City of Redding, in accordance with the
provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 USC §§
14
2000d to 2000d-4) and the Regulations, hereby notifies all bidders or offerors that
it will affirmatively ensure that any contract entered into pursuant to this
advertisement, disadvantaged business enterprises will be afforded full and fair
opportunity to submit bids in response to this invitation and will not be
discriminated against on the grounds of race, color, or national origin in
consideration for an award.
D. CLAUSE — CONTRACTS: During the performance of this contract, the
Contractor, for itself, its assignees, and successors in interest (hereinafter referred
to as the "Contractor"), agrees as follows:
1. Compliance with Regulations: The Contractor (hereinafter includes
consultant�) will comply with the Title VI List of Pertinent
I�Tc�ndiscriminatic�n Acts and Autharities,as they may be amended from time
tc�time, which a�re herein incorporated by reference and made a part of this
contract.
2. Nondiscrimination: The Contractor,with regard to the work performed by
it during the contract,will not discriminate on the grounds of race,color, or
n�tiQnal c�rigin in the selection and retention of subcontractors, including
pra�urements c�ftnaterials and leases of equipment. The Contractor will not
participate directly or indirectly in the discrimination prohibited by the
Nondiscrirrzination Acts and Authorities, including employment practices
when the cc►ntract cover� any activity, project, or program set forth in
Appendix B o£49 �FR part 21.
3. Solicitations for Subcontracts, including Procurements of Materials
and Equipment: In al� s€�licitations, either by competitive bidding or
negotiation made by the Ct�ntractar far work tc� be performed under a
subcontract, including procu�ements of materi�ls, or leases of equipment,
each potential subcontractor or supplier will be`notified by the Contractor
of the contractor's obligations und�r` this ct��tract and the
Nondiscrimination Acts and Authorities c�n the g�nunds of race, color, or
' national origin.
� 4. Information and Reports: The Contractor will provide all information and
reports required by the Acts,the Regulations,and directives issued pursuant
thereto and will permit access to its books, records, accounts, other sources
of information, and its facilities as may be determined by the sponsor or the
Federal Aviation Administration to be pertinent to ascertain compliance
with such Nondiscrimination Acts and Authorities and instructions. Where
any information required of a contractor is in the exclusive possession of
another who fails or refuses to furnish the information, the Contractor will
I so certify to the sponsor or the Federal Aviation Administration, as
� appropriate, and will set forth what efforts it has made to obtain the
information.
5. Sanctions for Noncompliance: In the event of a Contractor's
noncompliance with the non-discrimination provisions of this contract, the
15
I
sponsor will impose such contract sanctions as it or the Federal Aviation
Administration may determine to be appropriate, including, but not limited
to:
a. Withholding payments to the Contractor under the contract until
the Contractor complies; and/or
b. Cancelling, terminating, or suspending a contract, in whole or in
part.
E. INCORPORATION OF PROVISIONS: The Contractor will include the
provisions of paragraphs one through six in every subcontract, including
procuremer�ts v�materials and leases of equipment,unless exempt by the Acts,the
Regulatic�ns,and directives issued pursuant thereto. The Contractor will take action
with respect to any subcontract or procurement as the sponsor or the Federal
A�'iation Administratic�n may direct as a means of enforcing such provisions
ir�cluding sanctions faz� z�oncompliance. Provided, that if the Contractor becomes
i�vt�lved in, or is threatened with litigation by a subcontractor, or supplier because
ofsuch direction,the Contractor may request the sponsor to enter into any litigation
to prt�tect the interests of t�te sponsor. In addition, the Contractor may request the
United States to ent�r iz�#o th�1'ztigation to protect the interests of the United States.
F. CLAUSES FOR bEEDS TRANSFERRING UNITED STATES PROPERTY:
NOW, THEREF(7RE, the Fed�r�.l Aviation Administration as authorized by law
'�
and upon the condition that th� City c�f Redding will accept title to the lands and
maintain the project canstructed thereon in accordance with Executive Order 9689,
for the Surplus Property Act of 1944,and the pc�licies and procedures prescribed by
the Federal Aviation Administr�.tion of the LT.�. Department of Transportation in
accordance and in compliance with all requit�ements imposed by Title 49, Code of
Federal Regulations, U.S. Departrnent c�£Transportation, Subtitle A, Office of the
Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S.
Department of Transportation pertaining to and effectuating t�e provisions of Title
VI of the Civil Rights Act of 1964(78 Stat.252;4�'USC §�OOOd to 2000d-4),does
hereby remise,release, quitclaim and cQnvey u�tc�the City of Redding all the right,
title and interest of the U.S. Departm�nt c�f Transportation/Federal Aviation
Administration in and to said lands described in the RFP 5209 Proposal Guarantee
Form and made a part hereof.
HABENDUM CLAUSE: TO HAVE AND TO HOLD said lands and
interests therein City of Redding and its successors forever, subject,
however, to the covenants, conditions, restrictions and reservations herein
contained as follows, which will remain in effect for the period during
which the real property or structures are used for a purpose for which
Federal financial assistance is extended or for another purpose involving the
provision of similar services or benefits and will be binding on the City of
Redding, its successors and assigns.
The City of Redding, in consideration of the conveyance of said lands and
interests in lands, does hereby covenant and.agree as a covenant running
16
i
with the land for itself, its successors and assigns, that(1)no person will on
the grounds of race,color,or national origin, be excluded from participation
in, be denied the benefits of, or be otherwise subjected to discrimination
with regard to any facility located wholly or in part on, over, or under such
lands hereby conveyed, (2) that the City of Redding will use the lands and
interests in lands and interests in lands so conveyed, in compliance with all
requirements imposed by or pursuant to Title 49, Code of Federal
Regulations, U.S. Department of Transportation, Subtitle A, Office of the
Secretary, Part 21, Non-discrimination in Federally-assisted programs of
the U.S. Department of Transportation, Effectuation of Title VI of the Civil
Rights Act of 1964, and as said Regulations and Acts may be amended, and
(3) that in the event of breach of any of the above-mentioned
nondiscrimination conditions, the Department will have a right to enter or
�e,enter said'lands and facilities on said land, and that above described land
and facilities will thereon revert to and vest in and become the absolute
' property of the k'�deral Aviation Administration and its assigns as such
'� ' interest existed prior to this instruction.
I G. CLACJSES FOR TRANSFER OF REAL PROPERTY ACQUIRED OR
IMPR��1E➢ t.TNL?ER THE AIR�?ORT IMPROVEMENT PROGRAM:
1. The Licensee fax himself/hers�lf„his/her heirs,personal representatives,
successors in int�rest, and assigns, as a part of the consideration hereof, does
hereby covenant and agree as'a covenant running with the land that:
2. In the event facilities a�� construct��l, mainta�ned, or otherwise operated on the
property described in this lic�nse for a purpc�s� for which a Federal Aviation
Administration activity, facil�ty� or program is extended or for another purpose
involving the provision c�fsimilar services or benefits,the licensee will maintain
and operate such faciIities and services in com���ance with all requirements
imposed by the Nondiscrimination Acfs and Reg�ulations listed in the Pertinent
List of Nondiscrimination Authorities(as may be�mended)such that no person
on tbe grounds of race, color, or national c�rigin, will be excluded from
participation in, denied the benefits ofa ar 'be otherwise subjected to
discrimination in the use of said faciliti�s. ''
3. With respect to licenses, leases, permits, etc., in the event of breach of any of
the above Nondiscrimination covenants, City of Redding will have the right to
terminate the license and to enter, re-enter, and repossess said lands and
facilities thereon, and hold the same as if the license had never been made or
issued.
a. With respect to a deed, in the event of breach of any of the above
Nondiscrimination covenants, the City of Redding will have the right to
enter or re-enter the lands and facilities thereon, and the above described
lands and facilities will there upon revert to and vest in and become the
absolute property of the City of Redding and its assigns.
��
H. CLAUSES FOR CONSTRUCTION/USE/ACCESS TO REAL PROPERTY
ACQUIRED IJNDER THE ACTIVITY, FACILITY OR PROGRAM: The
following clauses will be included in deeds, licenses, permits, or similar
instruments/agreements entered into by City of Redding pursuant to the provisions
of the Airport Improvement Program grant assurances.
1. The licensee for himself/herself, his/her heirs, personal representatives,
successors in interest,and assigns,as a part of the consideration hereof,does
hereby covenant and agree as a covenant running with the land that (1) no
person on the ground of race,color,or national origin,will be excluded from
participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities, (2)that in the construction of any
irnpr�uements on, over, or under such land, and the furnishing of services
th�reon, no'person on the ground of race, color, or national origin, will be
excluded from participation in, denied the benefits of, or otherwise be
subjected to discrimination, (3) that the licensee will use the premises in
compliance with all other requirements imposed by or pursuant to the List
of discrimination Acts And Authorities.
�
2.` Witk� ��spect to licanses, in the event of breach of any of the above
nondiscrimi�atian cov�nants, City of Redding will have the right to
terminate tY�e license and ta enter or re-enter and repossess said land and the
facilities tk���eon, and ho�d the same as if said license had never been made
�
or issued.
3. With respect to deeds; in the event t�f breach of any of the above
� nondiscrimination cove�ants, City of Redding will there upon revert to and
� vest in and become the absolute property of City of Redding and its assigns.
�
I. TITLE VI LIST OF PERTINENT NONDISCRIMINATION ACTS AND
AUTHORITIES: During the performance of this ct�ntract,the Gantractor, for itself,
its assignees, and successors in interest(hereinafter referr�ti ta as the"Contractor")
agrees to comply with the following non-discrim�nation statutes and authorities;
including but not limited to:
' • Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat.
252) (prohibits discrimination on the basis of race, color, national origin);
• 49 CFR part 21 (Non-discrimination in Federally-assisted programs of the
i Department of Transportation—Effectuation of Title VI of the Civil Rights
� Act of 1964);
. The Uniform Relocation Assistance and Real Property Acquisition Policies
Act of 1970, (42 USC § 4601) (prohibits unfair treatment of persons
displaced or whose property has been acquired because of Federal or
Federal-aid programs and projects);
• Section 504 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.), as
� amended (prohibits discrunination on the basis of disability); and 49 CFR
part 27;
' • The Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.)
'' (prohibits discrimination on the basis of age);
� 18
I
� • Airport and Airway Improvement Act of 1982 (49 USC § 471, Section
47123), as amended (prohibits discrimination based on race, creed, color,
national origin, or sex);
• The Civil Rights Restoration Act of 1987 (PL 100-209) (broadened the
scope,coverage and applicability of Title VI of the Civil Rights Act of 1964,
the Age Discrimination Act of 1975 and Section 504 of the Rehabilitation
Act of 1973, by expanding the definition of the terms "programs or
activities" to include all of the programs or activities of the Federal-aid
recipients, sub-recipients and contractars, whether such programs or
activities are Federally funded or not);
• Titles II and III of the Americans with Disabilities Act of 1990, which
prohibit discrimination on the basis of disability in the operation of public
en.tities, public and private transportation systems, places of public
���ommodation,and certain testing entities (42 USC §§ 12131 — 12189) as
implemented by U,S. Department of Transportation regulations at 49 CFR
parts 37 and 38;
• The Federal Aviation Administration's Nondiscrimination statute (49 USC
§ 47123) (prohibits discrimination on the basis of race, color, national
c�rigin, and sex);
� Executive Order 1�$9$, Federal Actions to Address Environmental Justice
in Minority Pt��ulations and Low-Income Populations, which ensures
nondiscrimix�ation against zninority populations by discouraging programs,
policies, and activities with disproportionately high and adverse human
health or envirQnmental effects on minority and low-income populations;
• Executive Orcler 13166, Imprt��ing Access to Services for Persons with
Limited English Proficiency�and resulting agency guidance,national origin
discrimination includes �iscrimination 'because of limited English
proficiency (LEP). Tt� ensure complx�nce with Title VI, you must take
reasonable steps to ensure that LEP persons haue meaningful access to your
programs (70 Fed. Reg. at 740$7 to 74100);
• Title IX of the Education Amendments of 1972, as amended, which
prohibits you from discriminating becaus�c�f sex in education programs or
activities (20 USC 1681 et sec�.
SECTION 24. ASSIGNMENT
Operator shall not voluntarily assign or encumber its interest in this Agreement or in the
Premises, or allow any other person or entity (except its authorized representatives) to
occupy or use any or all part(s) of the Premises, without first obtaining the City's prior
written consent. Said consent shall not unreasonably be withheld. Any assignment or
encumbrance without the City's consent shall be voidable and, at the sole election of the
City, shall constitute a default of this Agreement. No consent to any assignment or
encumbrance sha11 constitute a further waiver of the provisions of this section.
SECTION 25. INVOLUNTARY ASSIGNMENT
A. No interest of Operator in this Agreement shall be assignable by operation of law.
Each of the following acts shall be considered an involuntary assignment:
19
1. If Operator is or becomes bankrupt {whether voluntary or involuntary) or
insolvent, makes an assignment for the benefit of creditors, or institutes a
proceeding under the Bankruptcy Act in which Operator is the bankrupt;or,
if Operator is a partnership or consists of more than one person or entity, if
any partner of the partnership, or other person or entity, is or becomes
banlcrupt (whether voluntary or involuntary) or insolvent, or makes an
assignment for the benefit of creditors;
2. If a writ of attachment or execution is levied on this Agreement;
3. If, in any proceeding or action to which Operator is a party, a receiver is
appointed with authority to take possession of the Premises; or
4. The abanc�onrnent or discontinuance of any operation at the Airport by
Operator, ar the failure to conduct any service, operation or activity
permitted by this Agreement. If this condition exists for a period of seven
(7) consecutive calendar days without the prior written consent of the City,
it will constitute an abandonment of the land, facility or location, and this
Agreement and the Permit shall become null and void.
B. An involuntary assignrnent shail constitute a default by Operator,and the City shall
have the right to elect to terminat�this Agreement. In no event shall this Agreement
be deemed or treated as an asset c�f Operator.
SECTION 26. DEFAULT '
A. The occurrence of any of the folic��ving shall c�nstitute a material breach or default
of this Agreement by Operatc�r•.
1. Failure to pay any paym��t due under this Agreement when due, if the
failure to pay continues for seven(7)calendar days after notice of the failure
has been given to Operator;
2. Failure of the Operator to operate the business authorized in this Agreement.
3. 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.
4. Failure to maintain current licenses, if any, required for the permitted
operation.
5. Intentionally supplying the City with false or misleading information or
misrepresenting any material fact on documents or in statements to or before
the City and its employees,or the intentional failure to make full disclosure
on a financial statement, statement of gross sales, or other required docu-
ments.
20
6. Failure to perform any other provision of this Agreement if the failure to
' perfortn is not cured within thirty (30) calendar days after notice of the
failure has been given to Operator. If the breach or default cannot be
reasonably cured within thirty (30) calendar days, Operator shall not be in
breach or default of this Agreement if Operator commences to cure the
breach or default within the thirty (30) calendar day period and diligently
and in good faith continues to cure the default.
B. Notices given under this section shall specify the alleged breach or default, and
shall demand that Operator perform the provisions of this Agreement or pay the
payment that is in arreazs, as the case may be, within the applicable time period, or
this Agreement is terminated. No such notice shall be deemed a forfeiture or a
terminatian c�fthis Agxeement or a revocation of the Permit unless the City so elects
in the nofiice. '
C. The�ity, at any time after Operator commits a breach or default of this Agreement,
can cure the breach or default at Operator's cost. If the City, at any time, by reason
of t7�erator's breach or default, pays any sum or does any act that requires the
payrnent of any sum, the sum paid by the City shall be due immediately from
Operatc�r tc�the �ity at the time the sum is paid, and if paid at a later date shall be
subject to late'fees and penalty charges as shown in the City's then current Schedule
of Fees and Charges. The sum, together with the late fees or penalty charges, shall
be an additional payment owed to the City pursuant to this Agreement.
SECTION 27. CITY'S REMETIIES Ft�i2 DEFA�.TLT ,
A. Upon the occurrence of a default that is not timel�cured by Operator,the City may
terminate this Agreement and C��erator shall immediately surrender the Premises
to the City. On termination€�fthis Agreemer�t,t�te City may recover from Operator
all of the following:
1. The worth of any unpaid fees that had been earne�i �t'the time of the
termination, to be computed by allowing �nter�st at the maximum amount
of interest permitted by law;
2. Any other amount necessary to compensate the City for all the detriment
proximately caused by Operator's failure to perform obligations under this
Agreement, including advertising expenses, expenses of remodeling the
Premises for a new Operator (whether for the same or a different use), and
any special concessions made to obtain a new Operator; and
3. Any other amounts, in addition to or in lieu of those listed above, that may
� be permitted by applicable law.
I B. City reserves the right, during the full term of the Agreement,to use the succession
�
of proposers in the event an Operator is found in default or breach of this Agreement
and this Agreement is terminated.
2t
SECTION 28. SURRENDER OF PREMISES
On the expiration, cancellation or termination of this Agreement, Operator shall surrender
the Premises to the City and deliver all keys to any locks on the Premises. Licensee shall
reimburse the City for any damage done to the Premises caused by Operator's use of the
Premises or Operator's actions or omissions.
SECTION 29. VOLUNTEER ASSISTANCE
Under no circumstances will Operator use City employees whom are on duty to perform
work at the Premises.Under no circumstances will Operator use City employees whom are
off duty to perform work at the Premises if the nature of the work is substantially similar
to the employee's r�gular work duties for the City.
SECTION 30. �YGNS,BANNERS,FLAGS
Operato� is required to prov��e a business "logo" type sign at its conesponding terminal
counter lacation and appropriate signage for their ready-car parking spaces. The size and
location of signs, banners, flags, etc., located on the Premises or at the Airport shall be
subject to the prior w�itten appro��l and control of the Airports Manager. The size and
location of all signs, banner� and flags lQcated off the Airport advertising the activities of
Operator shall be subject tt� the City's sign ordinance (Redding Municipal Code Chapter
18.42).
i
SECTION 31. NOTICES
�', Any notices required to be given unde:r this Agreement shall be in writing and shall be
' deemed properly delivered, given 4r s�rved when personally delivered to the City or
Operator, ar in lieu of such perstana� service, se�xt b� United States mail, registered or
certified, return receipt requested, addressed as follc�ws:
TO CITY: TO OP]ERAT�R:
� City of Redding Municipal Airport SJ l:�enham Inc. DBA Hertz Rentals
� Attn.: Airports Manager Attn.: Randy J. Denham
6751 Woodrum Circle, #200 PO Box 990326
� Redding, California 96002 Redding, CA 96099-0326
In the event of personal service, notice shall be deemed given when personally served. In
the event of service by mail, notice shall be deemed to have been given seventy-two (72)
hours after deposit of same in the United States mail post box, postage prepaid, addressed
as set forth above,or upon the date of the signed return receipt,whichever is sooner.Either
party may change its address for the purposes of this section by giving written notice of
such change to the other party in the manner provided in this section.
SECTION 32. ADMINISTRATION BY CITY
22
Whenever Operator is required to secure the approval or consent of the City pursuant to
this Agreement, the City shall mean the Airports Manager. When the Mayor is signatory
to this Agreement, the Airports Manager shall have authority to execute any amendment
to this Agreement which does not increase the amount of compensation allowable to
Operator, or otherwise substantially change the nature ar scope of the services provided
herein.
SECTION 33. CONTRACT INTERPRETATION AND VENUE
A. This Agreement shall be deemed to have been entered into in Redding, California.
All questions regarding the validity, interpretation or performance of any of its
terms or of any rights or obligations of the parties to this Agreement shall be
governed by Ca1i�c�znia law, and any action brought by either party to enforce any
of the terms o�`this A�reement shall be filed in the Shasta County Superior Court.
B. This document, includirtg all exhibits, contains the entire agreement between the
partxes and supersedes wh�tever oral or written understanding each may have had
pric�r to the execution of°this Agreement. This Agreement shall not be altered,
amended or modified except by a writing signed by City and Operator. No verbal
agreernent Qr �canversation with any official, officer, agent or employee of City,
either before,during or after the e�ecution of this Agreement, shall affect or modify
any of the terms or ct��ditions cont�ined in this Agreement.
'�
C. No covenant or condition to be performed by Operator under this Agreement can
be waived except by the wz�itten ccrnsent c►fCity.Forbearance or indulgence by City
, in any regard whatsoever shall not constitute a"w�iver of the covenant or condition
'� in question. Until performance by Operator af said covenant or condition is
complete, City shall be entitled tv invoke any r�medy available to City under this
Agreement or by law or in equity despite said it�rbearan�e'or indulgence.
D. If any portion of this Agreement or the applicatitin thereof to any person or
circumstance shall be invalid or unenforceable to ar�y extent, tl�e remainder of this
Agreement shall not be affected thereby and shall be e�fc�rced to the greatest extent
� permitted by law.
� E. The headings in this Agreement are inserted for convenience only and shall not
� constitute a part hereof.
F. Each party to this Agreement declares and represents that in entering into this
Agreement, it has relied and is relying solely upon its own judgment, belief and
knowledge of the nature,extent,effect and consequence relating thereto.Each pariy
fiarther declares and represents that this Agreement is made without reliance upon
any statement or representation not contained herein of any other party or any
representative, agent or attorney of the other party. The parties agree that they are
aware that they have the right to be advised by counsel with respect to the
i negotiations, terms, and conditions of this Agreement and that the decision of
� whether or not to seek the advice of counsel with respect to this Agreement is a
decision which is the sole responsibility of each of the parties. Accordingly, no
party shall be deemed to have been the drafter hereof, and the principle of law set
� 23
�
forth in Civil Code § 1654 that contracts aze construed against the drafter shall not
apply.
SECTION 34. ATTORNEY'S FEES
In any dispute between the City and Operator, whether or not resulting in litigation, the
prevailing party shall be entitled to recover from the other party all reasonable costs,
including without limitation, reasonable attorney's fees. "Prevailing party" shall include
without limitation,a party who dismisses an action for specific performance or for damages
in exchange for sums allegedly due, performance for covenants allegedly breached or
consideration substantially equal to the relief sought in the action, or which receives from
the other party, in connection with any dispute, performance substantially equivalent to
any of these.
SECTION 35. AUTHORITY T� CONTRACT
Each of th�undersigned signatc�ries hereby represents and warrants that they are authorized
I to execute this Agreement on behalf of the respective parties to this Agreement, that they
have full right, power and lawful autharity to undertake all obligations as provided in this
Agreement; and that the execut�on, performance and delivery of this Agreement by said
, signatories has been fully autht�rized by all requisite actions on the part of the respective
parties to this Agreement.
SECTION 36. SURVIVAL
The provisions of Sections 8, 9} �0, 21, 2�, 23, 27, 28, 33, and 34 of this Rental Car
Concession Agreement and Permit for Camrnercial A�t�vities shall survive termination of
the Rental Car Concession Agreement.
SECTION 37. AIRPORT CUNCESSI4N DISAD'�ANTAGE BUSINESS
ENTERPRISE PROGRAIV�(ACDBE)
A. This Agreement is subject to the requirements of th� U.S. Department of
Transportation's regulations, 49 CFR, Part 2� related to the airport concession
disadvantaged business enterprise (A�I.�BE) prc�gram. The Lessee agrees that it
will not discriminate against any business awner because of the owner's race,color,
� national origin or sex in connection with the award or performance of any
concession agreement, management contract, or subcontract, purchase or lease, or
other agreement covered by 49 CFR Part 23. Lessee agrees to include the above
statements in any subsequent concession agreement or contract covered by 49 CFR
IPart 23, that it enters for operations at the Airport and cause those businesses to
isimilarly include the statement in further agreements, but all such subsequent
, agreements shall be subject to the provisions of ARTICLE XV hereof.
i
�� B. Lessee is/is not an Airport Concession Disadvantaged Business Enterprise as
defined in 49 CFR Part 23, Section 23.89. In the event Lessee does not or no longer
I qualifies as an ACDBE pursuant to federal law and the City/Airport Company's
certification program,Lessee agrees that it will make a good faith effort to purchase
services, goods or products from ACDBEs which will equal or exceed the
24
City/Airport's designated Airport Concessions Disadvantaged Business Enterprise
, Program goal for airport concessions for each year of the agreement.
C. Each year Lessee shall provide to the City,no later than February lst,the following
annual ACDBE information: total gross revenue of the Lessee's business
operations at the airport for the last Federal Fiscal Year ( October 1 to September
30), the name and address of each non-ACDBE and each certified ACDBE with
which it has done business during the past federal fiscal year, a description of the
nature of the services performed by and/or items purchased from each business,
business contact,ACDBE certification number(if applicable),and the total amount
spent with each business.
�,
�
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SECTION 38. DATE OF AGREEMENT
The date of this Agreement shall be the date it is signed by City.
IN WITNESS WHEREOF,City and Consultant have executed this Contract on the days and year
set forth below:
CITY OF REDDING,
A Municipal Corporation
ll l�, ` _
Dated. I ,2021
y: RI�D. RESNER,Mayor
ATTEST: APPROVED AS TO FORM:
BARRY E. DeWALT
City Attorney
�
PANI'�LA MIZE, City e By:
OPERATOR
Dated: ,2021
!
, By; RAND�J. 1�THAM,President
Tax ID No: 94-2634427
Attachment:
Exhibit A—Monthly Certified Activity Report
l
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RENTAL CAR CONCESSION
MONTHLY CERTIFIED ACTIVITY REPORT
EXHIBIT A
Operator name:
Activity period: to 202
Total car rental transactions for reportingmonth:
Total gross receipts for reporting per�ad: $
$ x % _ $
Monthly gross receipts percentage percentage of gross receipts
I Minimum monthl uarantee:
$
Yg
PAY THE MINIMUM MONTHLY GUARANTEE ORTH�PERCENTAG�'OF GROSS RECEIPTS,WHICHEVER IS
GREATER.
Due on 20th of each month: $
I hereby certify that the above is a true statement frQm the recc�rds af:
Business:
Preparer's signature:
;
Print Name and Title:
Date prepared:
�
� SJ Denham, Inc. DBA: Hertz Rentals
Overall Status: APPROVED
V,�
INFO CONTRACT NUMBER PROJECT NUMBER PROJECT NAME DEPARTMENT NAME PROJECT STATUS
� C! Rental Car Concessio•821 Airport 821 Airport 821 �.?-ROVED
_ Required.Policies^
Each O<currence: 5500,000
Fire Dama9e�any one fre): 5300,000 �
General Liability oyovzoz�—o�mrzo�� Med.exp(anyoneperson) q5.0o0
A ent ins'u��ederaLetlMutuallnsurenceCom� Personal/advinjury fi,000,000 '�Y�o���c�
9 General(Aggregate�: f1,000,000
Products-mmp/opAgg: 5�,000,000
Combinetl Single Limlt(Ea Accidenq� 5500,000 �
Automobile Liability Poi��2�0�2 Bodlylnjury�PerPerson�: 5500,000 ;�p��yEu
Inwrer:FederetedMutuallnsuranceCom�any � Bodlylnjury�PerACUtlent�: f5oo,000
� v
Agent Property: 5500,000
Workers Compensation 04/OV2�1�i—�4/OV2022 EL EachAccitlent 57.000,000
Pdky:F1.A.A�#}9679600 E.LDisease-EaEmployee: $1,000,000 ;1�FROV_G �
Agent InsuttG FAL45 LAKE FIRE&CASUALTY E.L.Disease-Pollcy Limit 31,000,000
Property/Home o�rmrzoz�—o�ovzozz
{iGIky9162087 Limit: f2.000.000 :4PPo0UcL
Agent 1�5uter.Federeted Mutual Inwrance CompOny
I Required Documents�
User Uploaded t�ocuments�
Requirements Notes: G�
Ins entered no WC or Primary and WOS induded.sent pins request 040721.sm
Accepted lower limits due to excess policy of$2M 4/1/21 pd
Rec'd cert with some renewals,sent PINS request for remaining expired ins.4/1/21 pd
�
� WC Agent ktrottlerC btisinc.com
� Wc not rec'd sent another PINS request on 3/5/19 pd
Accepted coi,umbrella policy is additlonal coverage.3/5/20 pd
�
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TRANSMITTAL FORM
�r � I�.�FtZ��°�?F�I�'�°���tl���tl*��}��d�'�'���L�f3����6�°T'3�
�
TQ CITY ATTORNEY(225-40501&CITY CLERK(225 4439�
Agreements p Bonds¢ Contracts a Leases p Escrow Instructions
p Deeds¢Securities Q Resolutions Q Ordinances p Opinions
Date: 11�1��2� From: Stephanie McColium
Dept. Name: Airports Dept. # 821 Phone: 225-4511
Person most knowledgeable: �im Wadleigh Phone:
lNSURANCE REQUIREMENTS MET?Prior to signatures, must submit lnsurance Transmittal Form to Risk, have
certificate uploaded by vendor and approved by Risk. lf not, your contracts will be held in the Clerk's Office. For
help confact Risk Liability- e�l��r€a,�e6t�freddi�a�.ar�(530)225-4385. ����
;w�w �:�., � ��
DESCRIBE ATTACHED DOCUMENTfSI �,��� � � � �� �
� � �������
Document Title: Rental Car Concession Agreement and Permit for Commercial Activities
Outside Party(ies): Avis Budget Car Rentai, LLC dba Budget ° : < ��4���.���
Project(What/Where/Why?): �' Rentai service at Redding Municipal Airport
COUNCIL APPROVAL REQUIRED? No❑Yes� IF YES,DATE OF MEETING: 1��16/21 Agenda Item#: 4•11(b)
Was contract/agreement the result of an RFP or Bid?No YesQ Bid Schedule #or RFP#: 5209
IS� T' �'T �I.A'FE '�'C!°T ��A FI �? N��I'`��
REQUEST FOR ATTORNEY SERVICES
❑ At�a�t`t�etr�v����Dz~afft-AIP documents z�ust be reviewed��pprc�ved before c�btaining any signat�ar�s.
i�then amendin�contracts,attach a copy of�riginal contract and aIl pric�r arn���drr)erlts. L�o not e-ta�ail
documer�ts�nrithout priotp ap�t°oval.
❑ RetuT'n di'aftS t0: (to finalize&obtain outside signatures)
� a�����z��:����:�...������R„�.�:�.� �����ri����.:`�..�:�.�`��������.��°; f 1� �.���t�a� �.��c��k �r�-�°;��c��=y r�v����z�����'� ��
��`��)4�VR �€ t`r� e'-��d�.€7I�I�}?: �ta i ��`�B� �e1� ���3S,r�aI1.`�-`� B� .;�SdE�e:.�t�:1M',�.€E?°E'�. ��t?�a�€'54��£C3?�,ub'�3 i�.� C}I"[��al1�i� ��`>(= �
�F�����-�s:}as- �a���;�F��I��-- ���a���f�ix"�i�,�r� €�c���"������?�������;���t�.«������s, ' �,,
(Attorney approval now mandatory-RMC§4.20.120.A� - ° 4 � � �
�r�'�'"�.f�..�.<,�}`°� ��i��:��,;,�.�i �
*Note: Signed originals will be forwarded to City Clerk for necessary City signatures,insurance�'z
other requirement verification,and processing.
❑ Mailingfdistribution Instructions:
� Prepare Certifieate of Acceptance (easement&grant deeds) °������ � � ��� �' � �
� �������.���.� __
❑ Memo or additional info is attached. �t � ���� ���
� Other: �����
Save for Attorney's Notes ,�,_`� � ` � `����� f������ ��� ,'
�
:���
� ��`
���� ��� � Citiy AtCorney Log# �f °"°' �
s � Logged Out By: ���`�
�3
Rev.B/18
i� q §ez��y���q' �e
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� CITY OF R.EDDING
��.�._._ �
REPORT TO THE CITY COUNCIL
M�ETING DATE: November 16,2021 FROM: Chuck Aulcland, Public
ITEM NO. 4.11(b) Works Director
***APPROVED BY***
_ _.,�--....'-��;---� �� .._�
� ukiand,Pubtic Works Direct ((/4/2p2� • . �,��. ��r�ana�er nm Dcve �� �s��:;�t,o,«<,o, ,,,s,,�,
cauktand ci.redding.ca.us btippin cityofredding.or
SUBJECT: 4.11(b)--Rental Car Concession Agreements at Redding Municipal Airport
Recomnaendation
Authorize the following actions relative to Request for Proposal (RFP) Schedule No. 5209 at the
Redding Municipal Airport:
(1) Award three Rental Car Concession Agreements and Permit for Commercial Activities
to: (a) Avis Budget Car Rental, LLC DBA AVIS; (b) Avis Budget Car Rental, LLC DBA
BUDGET; and(c) SJ Denham, Inc. DBA HERTZ;
(2) Approve the agreements for a five-year term effective December 1, 2021, through
November 30, 2026; and
(3) Authorize the Mayor to execute the agreements.
Fiscal Impuct
The monthly concession fee paid by the rental car operators shall be the greater of the minimum
monthly guarantee or the percentage of gross receipts payable each month. The Airport is
guaranteed to receive revenue fram the rental car eoncessions in the amount of $13,626 per
month for the first year, with guaranteed increases each year up to $15,136.81 in the last year of
the agreement. It is important to note that it is not uncommon for the 10 percent of grass receipts
to exceed the minimum guaranteed revenue payable to the Airport. With the rapid growth of the
air service in the last year, revenues are expected to remain strong.
Alternative Action
The City Council may choose to not apprave the agreements. Existing rental car services would
potentially not be available at the Redding Municipal Airpart, and any future rental car service
would require a new Request For Proposals (RFP)process.
�IZ"�'�I�' �2��I��i�i�
��'�L ��� �C}���S�IC)� �.� E ��'I'
A�:€�
�'� I'I' F(3� �� �� �'�AI. A�'�'I'4��'�"���
T' I� �.G �l�EI�d'�" is made byr and between the City of Redding, a znunicipal
coaporatio�l (City), and Avis �udget Car �2ental, LL� I��3A Budget (Operatoz-) for the purpose of
providing a rental c�r concession at the IZeclding Municipal Airport.
� � �' � TA �, S
�. The �ity o�vns and operates the Redding M��nicipal Airport (�irport).
�. �t is necessary in the pro�notion and accoznmodatzon of air commerce and azr
transportation that qualified, econamica?, caurteous; safe, clean and efficiently
operated rental car faei�ities be available for the benef�t of air travelers and the public.
C. Operatar was awarded the right to operate one of three available rental car
concessions at the �eddir�g T✓Il�nicipal Airport.
D. Operator has been approved to occupy a portion of the Airport terminal building,
utilize the rental car-ready parking lot for the storage of vehicles, and use the vehicle
service center car staging and wash rack facilities to operate a rental car cozicession.
E. �11 of the Airport is rzot required far aeronautieal activities. The City desires to use
portions of the Airport to provide facilities and services for �ther than aeronautical
activities for the benefit of the general public.
� G �2EE1�'� � �d '�'
�EC'T'�E3N 1. P 1 �SE�
A. Those portions of the Airport to be used exclusively by Operator pursuant to this
Agreement are Site a, in the Airport Terminal Building, Site A, in the rental car-
ready parking Iot, and Site A, in the vehicle service center and wash rack faciiity.
B. The City retains the right at any time to change the locatian of the Premises to be
used pursuant to this Agreement at the discretion of the Airports Manager. City
shall provide thirty (30) ealendar days' prior written notice to Operator of any
change in the Premises.
SECTION 2. TE�tM
A. The term of this Agreement shall be for a period of five {5) years commencing at
12:01 a.m. on December I, 2021, and expiring at 12:00 a.m. on November 30,
202b.
�---e.:�
:
l 4�,'�
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§f��)�a'� c.��''����,� ���t�r'�����°..-�
B. The City sha11 hav� twfl (2} one-y-ear options, thi-o�zgh Navember 30, 202�, to
unilaterally extend the t�rm of this Agreeznent. If City exerclses such option, aIl of
the terrrrs and conditions �f this Agreeinent sha11 remain in full f�rce and effect,
with the exeep�ion of this clause eovering City�'s option ta �xtez�d the term of the
Agreement. �ity fnay ex�rcise its option to �;�tend the tenn by dvritten not�ce to the
Operatar no less than one hundred eighty (1�0) calendar days' prior to the
eXpiration of the iilitial tertn, and first option term, if any.
C. This Agreement is entered into witl�the understandina that t1�e Czty will initiate an
open competitive process f�r the provision of rental car servic� beyond the
expiration af thzs Agreement.
�S��T� S� �. IJS�
Operator is authorized to use the Premises for the sole puipose of operating and
maintaining a rental car cancessian at the Redding Ivlunicipal Airport.
A. �ite A, in the Airport Termir�al shall be used for the purpose of conducting on-
airport rental car-concession transactions and related aperations for the convenience
of passen�ers, patrons and tenants uti�izing the Airpor�.
�. Site A, in the Ready �ar Space I,ocations sha11 be used fc�r the purpose of pre-
positioning ren�al cars for cus�omers and providing a designated area ta which
customers return rental cars. Operator slzall nat utilize the ready-car parking spaces
for the storage of vehicles Iarger than twenty (2Q} feet in iength (i.e. recreational
vehicles) nor shall Qperator's employees utilize these parking spaces for the
purpose a�parking their personal vehicles.
C. Site �, in the Car WJash area sha11 be used for the purpose of staging vehicles for
washing and detailing. Operator shall not be permitted to self-fuel vehicles or
conduct inajor maintenance or repair servzees on rental vehicles on the Airport.
SE�'�'IQI�i 4. PE I'�" FC3 ��1YI ERCIA.L A��'IV�TI�S
This Agreement shall also canstitute a Permit for Commercial Activities ("Permit"), and
the terms hereof shall constztute the terms for a permit for commercial activities required
by Redding Municipal Code Section 3.08.030.The City Council of the City has determined
that these commercial activities are compatible with the use of the Airport, and that the
best interests af the public and the City of Redding will be served by approval of such
commercial activities. A breach ar default in the terms af this Agreement shall also
canstitute a breach gf the Permit. _
SECTIQN 5. C4NCESSION FEES AND CHARGES
A. Concession Fees. The manthly cancession fee to be paid by Operator to Czty under
this Agreement shall be the GREATER of the Mir�imum Montizly Guarantee or
2
the ���°��r����� �� �r��� ������p�s payable each nlonth during the twelve inozzth
periocis as follows:
��r�e�at��� af
1.2- ���h P�ra�d �r�i � 1�Io�thlv �a��t°��a��e �►r ��-�ss e����ts
I�ecember I, ?021, thru i�overnber 3Q, 2022 $ 5,9b�.0I 10 %
Az��ourzt i�1 Numbezs
December 1, 2022, thi-u I`�ovember 3Q, 2023 $ 6,11721 10 %
Amoimt in Numbe�s
I�ece�nber 1, 2023, thru November 30, 2024 � 6,270.14 10 %
Amount in Numbers
December 1, 2024, thru Navem�er 30, 2025 $ 6,426.89 10 %
Amou�t in Numbers
I�ecember l, 2025, thru Navember 30, 2026 $ 6,587.56 1Q %
�mount in Nurrnbers
B. Qperator shall pay to City the Minimum Monthly Guarantee or the percentage of
gross receipts; w��ichever is greater for the prior catendar month,without deductian,
set off, prior n�tice ar demand on or before the twentieth (20th) day of each month
{na payment sha11 be due under this agreement on I3ecember 20, 2021}.
C. Each payment specified in Sectiaaa 5 above sha11 be subznitted with a N�otat�ly
�ertified :4�t�vi� ���ort, attached hereto as ��h�bit �,, �vhich shall state the
{�perator's gross receipts during t�ie prior caiendar month.
D. If City exerczses its option to extend the term of this agreement for an extended
term, Operator shall pay to City the n�ost current Minzmum Monthly Guarantee or
percentage of gross receipts, whichever is greater, pursuant to the terzns and
canditions of the Agreement.
E. All payments required under this Agreeinent shall be paid to City, addressed to the
City Treasurer, at 777 Cypress Avenue, Redding, California, 96001, or any other
place or places that City may designate by wrztten notice to Operator. Payments not
paid when due and/or not submitted with the appropriate Monthly Certifzed Activity
Report are subject to Iate fees and penalty charges as shown in the C'rty's then
current Scheduie of Fees and Charges.
SEC'g"I4N 6. GROSS REC�IFT� DEFI�ED
A. "Gross receipts" of Operator means {1) aIl monies paid or payabie to the Operatar
for net time and mileage �vhether for cash or credit under a transaction entered inta
on the Airport, regardless of when or whether paid for or not and regardless of
lacation assignment of the automobiles and without regard to the manner in which,
or piace at which, the automabiles are fuznished to Operator's customers, and
3
without reQard to whether the al�tomobil�s a1-e returned to the Airport or to so�ne
other location; (2)all net�izne and mileage revenue fro�any au?omobile exchanged
from Qperator's Reddin� area operations for an auton-tobile oriffinally rented at the
Azrport; and, (3)a11 fees af any nature char�ed or�enerated by t�perator, Operator's
permitted vendars, Iicensees, or concessionaires, if any, �uhether for cash or on
credit (whethez�collected or not}puz-suant to this Agreelnent. Any transactzon on al�
installment basis or otherwise involvinb the extensic�n af credit, shall be treat�d as
a sale for the fi�11 �rice at the time of the transaction, ir�-espective of the time of
payment.
�3. Gross receipts s�Za11 not include, or if included there shall �e deducted (but only to
the e�tent tl�ey have been inciuded}, the follo�ving:
1. Sums and credits received in the settlement of claims far loss of or damage
to concessians ar merclzandise.
2. Gift certificates, or similar vouchers, until such time as they have beei�
converted into a saie by redemption.
3. Sales and use taxes, so-called iuxury taxes, consumer's excise taxes, gross
r�ceip� taxes, rental car transactiolz fees and other similar taxes now or in
the future imposed an the sale of food, beverages, mercl�andise or services,
but only if such taxes are added ta the selling price, separately stated,
callected separately from the selling price of inerchandise ar services, and
collected from customers.
4. Sales o�fixtures, trade fixtures, equipment, vehicles or personal property
that are not merchandise as allo�ved in this Agreement.
SEC'I'ION 7. STAT�1dI�I'�T OF GR£9�5 E�E�P'�'S; VIEW
A. Operator shall furnish ta City a statement af Operator's gross receipts, as defined,
on the City's Monthly Certified Activity Repart (Exhibit A), attached and
incozporated herein, on or before the twentieth (20t�') day of each month following
the reporting period. Each statement shall be signed and certified ta be correct by
Operator or its authorized representative.
B. Operator shail keep at its address of record full and accurate books of account,
records, cash receipts, and other pertinent data showing its gross receipts. Operator
shall maintain accurate receipts and shall maintain procedures for accurately
reeording any and all sales and other transactions made on the Premises and shall
record all gross sales and ather transactians made on the Premises or pursuant to
this Agreement. �perator's baoks of account, records, cash receipts, and oth�r
pertinent data shall be kept for a period of twa (2) years after the end of each year
of this Agreement. The receipt by the City of any statement, or any payment of
percentage gross receipts for any event shall not bznd the City as to the carrectness
of the statement ar payment.
4
C. The City shall be entitleci cluring the term af this Agre�ment and �vi�l�in t�vo (2}
years after t��e expiratit�rz or termi�iation of tnis Agreement to ins�ect and examine
aIl C}perator's books of account, re�ords; cash receipts, and oth�z�pez-tinez�t data, so
the City cazl ascertain and/or verify Operator's gross receipts. Qperator shali
cooperate fully with the City in making the inspectioil. The �ity shall also be
entitled, once durulg each year of this Agreernent and onee after the expiration or
tez�min�tion af this Agree�nent, to an independent audit of Opezator's books af
accc�iint, records, cash receipts, and other pertinent data to determi��e and/ot�verify
�perator's gross receipts, by a certified pti�blic accountant to be c�esignated by the
�ity. Tl�e audit shall be limited ta a determ.ination of C�perator's gross receipts and
sha11 be conducted during regular barsiness haurs.
L). If the audit sh�ws that there is a deficiency in the payment of any percentage gross
receipts paid to t�7e City, the cieficiency shall become iznmediately due and payabie.
The costs of the audit shall be paid by the City unless the audit shows that Operator
understated the gross receipts by twa percent(2%) or more, in whicll case, Operator
sh�ll pay a11 the City's costs of the audit.
E. Except as may be required by law, the City shall keep any and a11 information
gained from such statements, iraspectians, or audits confidential and shall not
disclose it withaut C)peratar's written c�nsent other than to carry out the purposes
af this Agreement.
�E�'TI(�I`� �. �EC�T 'I'Y E�(�S�"JC
A. Operator shall post with the City Clerk of the �ity a security depasit in the form of
cash or check in favor of the City in an asnount equa� to the first two (2) months
minimum monthly guarantee ($11,936.Q2) to assure payment under the terms of
this Agreement.
B. The security deposit shall be available unconditianaliy to City for correcting any
default or breach of this Agreement by Operator. At tl�e sole discretion of the City,
a claim may be made by the City against the security deposit an the event of one of
the following:
�. Failure on the part af Operator to make timely payment of any amount due
the City under the terms and conditions of this Agreement;
2. Any damage to or loss of Airport property caused hy Operator, its officers,
employees, agents and invitees, or Operator's activities pursuant to this
Agreement;
3. Failure to pay other charges, if any;
4. Remaval expenses incurred by the City if Operator does not promptly
remove Qperator's property from the Airport after this Agree�nent expires
or is terminated; or
5
5. �osts incurred by the City at t1�e time this Agreement expixes or is
terminated if C�p�rator fails to leave the Airpo�-t in satisfactory conclition.
�. A claizn made by the City against the security deposit shall nat cure the default by
Operator. However, at the City's sole discretion, if the City elects to make a c.laim
against the security deposit, the �ity may, in writing; expressly �aive the default
by Operator. City has no abligation to provide notice to Operator priar to claiming
funds from the deposit. Upon written natice by the City that a claiin has been made
against tl�e depasit and the amount of such claim, Operatar shall, no later than ten
(10) calendar�days after notice is dee�med received by Operatar pursl2ant to �eeti��
31, depasit with the�ity the amount of said claim thereby fully funding th�depasit.
D. Upon termznation of this Agreement, City sha11 return to Operator that portion of
the security deposit remaining after any deductions authorized by tl�is Agreement
ar otherwise authorized by law. Qperatar shall nat be entitled to any interest an any
portion of the security deposit.
�E�`I'I I'� 9. 'I' �
Operator is advised that, pursuant to �evenue and Taxatian Code §107.6, a possessory
interest subject to taxation may be created by the grant of this Agreernent and that Operator
may be subject to the payment of property taxes levied upon the interest. Operator shall
promptl��pay before delinquency any taxes and/or special assessments assessed against the
Premises and any improvements and/or Operator's personal property, and any possessory
ii�terest ta� levied by reason of its use and/or oceupancy of the Premises. On deman� from
the City, Operator shall furnish the City with satisfactory evidence of these payments.
�]EC'FI�N 10. SEI2VICE
A. Operator shall aperate the Rental Car Concession in accordance with the highest
standards and practices of the autom.abile rentai trade. Further, Operator
understands and acknowledges that the City's obligation to facilrtate air travel of
the public at the Airpart includes efficiently operated Rental Car Concessions for
the use of air travelers and ather members af the public. Consequently, and as an
add'ztional consideration ta the City for awarding this Agreement to the Operatar,
Operator covenants as follaws:
l. To furnish service on a fair, reasonable and nondiscriminatory basis to all
users of the Airport. Operator shall fumish prompt, courteous, and efficient
service adequate to meet ali reasonable demands for its services at the
Airport: It shall maintain and aperate the Concession ir�a first-class manner
and shall keep its premises zn a safe, clean, orderly, and inviting conditian
at all times satisfactory to the Aizports Manager.
2. Operator shall maintain on the Premises an adequate number of vehicles to
meet reasonable public demand. Such automobiles shall at all times be
maintained by Operator, at its own cost and eYpense, in good operating
order and free from known or reasonably discernible mechanical defects,
and shall be kept in clean, neat and attractive condition, inside and out. All
6
automobil�s offered for rent to the publi� shall be maintainec! in safe ana
o�erable condition; and a11 recall no�ices issued by automobile
manufactt,�rers relatir�g to sazcl ati�tomobiles shall b� honored. Operator
agrees that it wili at no time use automabiles ti�thase year model is rnore than
two (2) years older than tl�e cuz-rent year model. A11 vehicles of the
Operator's fleet shall be ec�uipped `vith factflry or dealer-installed air
conditionin�. City has the right ta disapprove of any automobile supplied
by t�perator that does not meet ar exceeci the standards contained herein for
public use at the Airpflrt. Notice of such disap�roval shall be submitted to
Operatar by the�ity in writing`�ith the reasons therefore and C}perator shall
ta�v i�nmediate action to withdraw such unsatisfactary automobiles from
service at the Air�ort.
3. Operator's rental counters shall be kept open so as ta provide ma:�iinunl
availability of service and adeq�ate rental opportunity to the traveling
publzc dLlring suc11 hours as �nay be established or reestablished from time
to time by the Airports Nlanager. �-Iours of operation sha11 be not less than
tw�lve{12)hours per day froan the hours af 8:00 a.m. to�:00�.m. T��e hou7s
of operation may be reduced or modified with the prior written approval of
the Aizports Manager.
4. Operator sl�all select and appoint a fiill-time manager of its rental car
concession herein autharized. Such person shall be qualzfied and
experienced, vested with full power and authority to act in the name of the
Operator with respect to method, manner, and conduct of the operation of
Operator's rental car concessian on the Airport. Such manager ar supervisar
shall be avaiiable at the Airport d�iring regular business hours, and at aI1
times during the manager's absence a duly authorized subordinate shal� be
in charge and available an the Airport.
5. Operator sha1l have the capability of providing both local rentals and
nationvaide one-way rentals.
6. Operatar shall be part af a nationwide computerized reservations system
allowing rental car reservations to be mad� from anywhere in the nation
through airline and travel agent computer systems.
7. Operator sha11 have a nationwide "800" telephone number reservation
service.
8. Operator shall provide nationwide rental car replacement to the custamer
for rental cars that develop mechanical prablems.
9. Ail automobiles used by the Qperator for the concession must have a
business logo ar name piaced in a consistent location on t�e �vindshield or
body of each automobile. Minimum Iogo size shall be two square inches in
area.
7
10. EYcept in case of emergency, Th� Operator shall obtain tlze approval of the
Airports Manager priar to any space c�os�zre autside of nonnai operating
hoi�rs.
11. C}perator sha11 control the conduct; demeanor and appearance of zts
employees and representatives. Operator and their employees while an
duty, shali wear acceptable attire wllich at a11 times sha11 be m.aintained in a
neat, orderly and cleazl condition. Cutoff shorts, undershirt-type shirts, or
clothing of suggestive nature are prohibzted and shoes are required.
Ernployees will wear name-tags which display thezr name and the name af
the r�ntal car concession or company lago. Such employees shall be trained
by Operator to render a high degree of courteous and efficie�lt service and
it shall be the responsibility of the Operator to maintain close supervision �
over such employees to assure the rendering of a high standard of service to
the public and the patrans of the rental car concession.
12. Operator sha11 accept major or nationally recognized credit cards.
13. Qperator a�id i�s employ�es shall abide by all reasonable rules,regulations,
policies, and instructions of the Airports Manager or his desigziee.
SE��'I�31� 11. I'A.]R�ING �NI3 r�,CC�SS
A. Emplovee Parkina. Operator's employees will be issued an annual parking permit
to use the authorized employee vehicle-parking spaces located on �he Airport.
Authorizatzon to use the parking lat is subject to the annual parking permit being
displayed on employees' vehicles at aIl times. Employees af Operator that lose or
destroy a parking permzt will be charged a replacement fee to reissue a new parking
permit.
B. Access to Premises. City shall provide Operator with keys to access the Premises.
Operator is responsible for the cost to replace all lost keys. Operator is responsible
for the casts associated with re-keying the Premises if the Aizports Manager
determines that the lost or misplaced key may compromise Operatar's security.
SECTI(.�N 12. AIRPORT FACILITIES
Nothing contained in this Agreement shall be construed as entitling Operatar to the
exclusive use of any services, facilities, or property rights of any nature at the Airport,
except for the purpose and use of the Premises as set farth in this Agreement .and the
Premises as described.
SECTION 13. MECHANIC'S LIEN
Operator sha11 keep the Premises free from any liens arisirzg out of any work perforrned,
materials furnished, or obligations incurred by Operator.
s
����'I�i� 14e �A,��'�� €JI�'T �'�1'��i1�"T
Operator s1�a�1 not comrrsit oz� staffer to be cozn�nittec� any waste upon the Premises,or any
I�uisance or ather act or thing wl�ich may disturb the quiet enjoyment af any other occ�apant
�f or user of t1�e Airport or the �ity's adjoiziing property.
���'rI'ION �S. S'I'C��.��
Operatar shall not stare anything ot�tside of the Premises tivithout the prior written approval
of the Airports Manager.
�E�"TIt3�I �6. �3l'E �'� '� �E��TI�IT"�' �ES� �S� ��,I'�'I�S
Operatar sha11 completely secure Site_in the Airport Texminal and Site in the Car
Wash Location duz�ing non-operating haurs. Operator shall pay any fines imposed upon
the City, by the Transportation Sec�zrity Administration or the �ederal Aviation
Administration, for violation c�f security caused by actians of Opez-ator or its agents,
employees, or invitees. �perator shall pay such fine within thirty (30) calendar days af
wa•itten notice from the City of the obligatian ta pay the fine. Failure ta camply with the
provisions of this sectiozl is grounds for terminatian of this Agreement by the �ity.
�E�'�"�Cpt� 17. k2�T�ES A1�� ��TI,A.�'��N�; C'019�IPI.���;N�E WIT LA�S
Operator shail, at Operatar's sole cost and expense, comply with all requirements, statutes
and regulations of all city, cozinty, state and federal autharities no�v in force, or which may
hereafter be in force, pertaining tt� Operator's use of the Premises or its services to be
performed under thzs Agreement. Operator's use of the Premises sI�a11 conform to aIl
Airport rules and regulations and 1oca1 building and fire codes.
�EC'7CI+�31'� 1$. iYIAIl`TTE1�tAT��'E ANI3 A�..'I'ERA�'I'IC3�1S
A. Operator shall, at Operator's sole cost and expense and at aIl times during the term,
maintain the Premises in a safe and attractive candition and in the sa�ne condition
as received at the beginning of the term, ordinary wear and tear excepted. Operator
shall do, or cause to be done without delay, all those things which, in the opinion
of the Airports Manager, are necessary or desirable in the interests of safety or to
maintain the Premises in good repair and appearance. All damage caused ta the
Premises and/or Airport by Operator, its officers, employees, agents and invitees,
sha11 be repaired at Operator's sole expense.
B. Operator shall not make or cause to be made any alterations or improvements ta�he
Premises, including modificatians or alterations of the Premises' electrieal
installations or equipment,without first securing the written consent of the Airports
Manager. The Aizports Manager may impose restrictions upon any proposed
alteratians or improvements. All such alterations ar iznprovements sha11 comply
with Airport Policy and all applieable building, zoning and fire codes. Upon the
termination of this Agreement, at the sole option of the City: (1) The alterations ar
improvements shall become the property af the City and shall remain on the
Premises; or (2) Operator sha11 remove alI alteratians or iinprovements and return
9
the Premises to the City in substantially the same cozzdition as the I'relnises existed
at the comm�ncement of�his Agreement.
C. City shall maintain electrical, plumbing and �IVAC systems within the Airport
terminal facility in good condition and repair. The Qperator hereby eYpressly
waives any and all claims and holds the City harznless for damages arising az�
resulting from failures or interruption of utility services ftzmished by the City I�erein
including but not li�nited ta stoppages in electrical ene��gy, the quantity or
temperature of water, heatzng or air-conditioning, oz- for the failure or interruption
of any public or passenger conveniences.
SE��`I�1� lg. G �'I' T`{� Il°d�����'
A. The City and its autharized afficers, agents, employees, volunteers, contractors,
subcontractors and ather representatives shall have the right to ins�ect and enter
upon the Premises for any purpose, including, but nat limited ta, the followia�g:
l. To inspect the Prer�zises at reasonable intervals during regiilar business
hours to determilxe whether Operator has co�nplied with or is complyin�
with the promises, terms, covenants and conditions of this Agreemerlt;
2. To rnake repaizs, additions,or alteratians as may be necessary or convenient
for the conduct, safety, improvernent, oz preservation of t��e Aitport;
3. For emergency purposes; and
4. In the exercise of the City's palice power.
B. No inspection or entering on the Preznises by or on behalf of the City shall cause or
constitute a termination of this Agreement, or be deemed to constitute an
interference with Operator's use of the Premises.
S�CTION Z0. �NDEMNITY
Qperator shall indemnify and defend the City, its officers, officials, employees, agents and
volunteers, against and hold them harmless from any and all ciaims, losses, damages, civil
penalties, and Iiability for damages, including attorneys' fees and other costs of defense
incurred by the City, whether for damage to or loss af property or injury to or death of
person(s), including properties of the City and injury to ar death of the City's officers,
afficials, employees, agents and volunteers, arising out of or resulting from Operator's
possession or use of the Premises or activities hereunder or from the actions of Qperator's
officers,employees,agents and invitees,unless such damage,Ioss,injury or death is caused
by the sole negligence or willful miscanduct of the City.
SECTION 21. INSURANCE
A. Unless modified in writing by City's Risk Manager, Consultant shall maintain the
following noted insurance during the duration of the Contract:
10
Cc�ver�¢e ��g���-�d I�Io��Ze �i�°�d
Commercial General Liability �
Conlprehensive Vetiicle Liability y
�Vorkers' Compensation anci Employers' Liability X
Property Ifisurance }{
B. Operator shall procure aild maintai7� from an insurance company au€I�orized to do
business in the State of Califorr�ia, for the duration of the�gre�znent, insurance for
claims for injuries to persons or damages to property which may arise from or in
connection with t1�e �perator's operation and or use of the Preznises by the
Operatar, it's members, agents, representatives, employees, contractars,
subcontractors, and invitees. The cost of such insurance shall be bome by the
Operator. Inst�rance shail be provided as follows:
1. Insurance Servi�es C)ffice form number CG-Q001, Commercial General
Liability Insurance, in an an�ount not less than $1,Q00,000 per occuizence
and �2,00O;OOQ general aggregate for badiIy injury, personal injury and
property damage;
2. Insura�ce Services Qffice fonn number CA-0001 (�d. 1/87),
� Comprehensive Automo6ile Li�bilit� Insuranee, ��hiell provides for total
limits of not Iess than �1,000,000 cambined single limits per aecide,nt
applicable to all �wned, non-awned and hired vehicles;
3. Property insurance against aIl risks af lass tio az�y tenant improvements,
betterments, and contents at full replacement value. The property insurance
policy sha11 contain the insurer's waiver of subrogation in favor af City; its
elected officials, officers, employees, agents and volunteers;
a Operatar agrees that in t11z event af any loss or partial or complete
destructian of those tenant improvements, betterments, and
contents, any proceeds of insurance received by Operatar shall be
utilized an the replacement, reconstruction, or repair of the damage
or destroyed improvernents, betterments, and contents.
4. Statutory Workers' Compensation required by the Labor Code of the State
of Caiifornia and Employers' Liability Insurance in an amount not Iess than
$I,OOO;OQO per occurrence. Bath the Workers' Compensation and
Employers' Liabiiity policies shaii contain the insurer's waiver of
subrogation in favor of City,its elected officials,officers,empioyees,agents
and volunteers;
5. Any deductibles ar seif-insured retentions must be declared to and
approved by City. At the option of the City, either the insurer shail reduce
or eliminate such deductibles ar self-insured retentions as respects the City,
its elected officzais, officers, employees, agents and volunteers, or the
11
�pez-ator shall proct�re a bo�d �uaranteeinb payme�lt a�losses and related
inves�ibatians, claims administration and defense expenses.
�. The �eneral L'zability shall contain ar be endorsed to contain the following
provisions:
1. City, its elected officials, officers, employees, agents and volunteers are to
be covered as additional insured. Sueh endorsement shall include liability
arisit�g out of or in connectio�l witl�Operator's operatzons,premises owned,
accupied, or used by Operatar. The caverage shall cantairl no special
limitations on the scope of protection afforded ta the City, its elected
afficials, officers, employees, agents and volunteers.
2. The insurance coverage of C}perato�- sha11 be primary insurance as respects
City, its elected officials, officers, employees, agents and volunteers. Any
insurance or self-insurance maintained by City,its elected offzcials,officers,
employees,agents and vc�lunteers,shall be in excess of C)perator's insuranee
and shall not contribute with it.
3. Coverage shall state tlzat the insurance of Op�rator shall apply separa�ely to
each insured against wham claim is made or suit is braught, except with
respect to the limits of the insurer's liability.
4. Each izisurance policy required by this Agreement shali be endorsed ta state
that coverage shall not be canceled except after t��irty (30) calendar days'
prior written notice has been given to City. In addition, Operator a�rees that
it shall not reduce its coverage or limits on any such policy except after
thirty (30} calendar days' priar written natice has been given to City
�. Insurance is to be placed with insurers witl� a current A.M. �est's rating of no less
than�-VII.
C. Operator shall designate the City af Redding as a Certificate Holder of the
insurance. Operator shall furnish City with certificates of insurance and ariginal
endorsements affecting the covera�es required by this Section. Certificates and
endorsements shall be furnished to_ Risk Management Department, City of
Redding, 777 Cypress Avenue, Redding, CA 96001. The certificates and
endorsements for each insurance policy are to be signed by a person authorized by
the insurer to bind coverage on its behal£ All endorsements are to be received and
approved by the City's Risk Manager prior to commencement of this Agreement.
D. The requirements as ta the types and limits of insurance coverage to be maintained
by Operator as required by this Agreement, and any approval of said insurance by
eity; are not intended to and will not in any manner 1'zmit or quaiify the liabilities
and obligations otherwise assumed by C?perator pursuant to this Agreement,
including, withaut Iimitation,proviszons concerning indemnification.
E. If any policy of insurance required by this Section is a "claims made" policy,
pursuant to Cade of Civil Procedure § 342 and Government Cade § 945.6, Operator
shall keep said insurance in effect for a period of eighteen (18) months after the
termination af this Contract.
12
F. If any damabe, includinb death, personal injuz-y Qr property darnage, occurs in
conr�ectiQn with tl�e perfo�-mance of tliis �antract, C}perator s�:all immediately
notify �ity's Risk I�a��ager by telephone at(530) 225-40��.No later thai�three (3)
calendar days after the event, Consultant shall submit a v,�itten report to City's Risk
Manager containinb the fallowinb information, as applicable� 1) name and address
af injured or deceased pe�son(s}; 2) nam� and address of witnesses; 3) name and
addz•ess of Consultant's insurance company, and 4) a detailed description of tk�e
datnage and whether any City property was involved.
S��"TIC}l� 22. �.ZA� C�U� A'TE IAI,S
A. Hazardous substances or materials inclucle, but are not lirnited to:
l. Sitbstances vvhich are flammable, explosive, corrosive, radioactive,toxic;
2. Any material or substances defined as hazardous sttbstances, hazardous
materials, tox�c substances, ar hazardous wastes in the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (42
U.S.C. Sectians 9b01, et seq.), the Resatirce Conservation and Recovery
Act (42 U.S.C. Sections 6901, et seq.}, the Hazardous Waste �ontrol Act
(Califarnia Health & Safety Code Sections 25I00, et seq.} the �-Iazardous
Substance Accaunt Act (California l�ealth �c �afety Cade Sections 25300,
et seq.}, Califomia Health and Safety Code Section 2528Q, et seq.,
F-Iazardous Materials Release Response Plans and Inventory ar the
California Porter-Cologne Water Quality Control Act, {Water Code
Sections 13000, et seq.), and a11 amendments to these laws and regulatians
adopted o1•publications pramulgated pursuant to these 1aws;
3. Those asbes�os-�on2aining materials defined and described in
Environmental Protection Agency Report No. 56/5-$5-024 (June 1985)
whether or not friable,or any related or successor report,or other applicable
government regulations defined or describing such materials;
4. Pesticides as defined�y Section 136(u)of FIFRA(7 U.S.C. Section 136}as
may be present in soil ar graundwater;
5. "Hazardaus wastes" as defined in Section 25117 of the California Health
and Safety Code, or as a chemical that is known to the State af California
"ta cause cancer or reproductive toxicity" under the Safe Drinking Waster
and Toxic Enforcement Action of 1986, California Health and Safety Code
Sections 25249.5, et seq.; and
6. Hazardous materials, substances or waste, or toxic materials, substances or
waste as those terms or similar terms are defined by any other federal, state
ar local Iaw or regulation or orders.
B. Operator agrees ta indemnify, protect, hold harmless, and defend City, its elected
officials, officers, employees, agents and volunteers from and against any and all
liability, including withaut Iimitation, (1} all fflreseeabie and nnfareseeable
13
consequential damages, directly or indirectly azisiz�g frar�n the use generatian,
st�rage, or disposal of hazarclous nlaterials by Operator, and (2) th� cost of any
required or necessary repaix, cleanup or deto�ification and the preparation of any
closure or other requzred plans, to the fu11 extend that such liability is attributabie,
directly or-indirectly,to the presence of use, generation,storage,release,threatened
release, or disposal of hazardo�as materials by �perator, its afficers, employees,
aaents and/or invitees on the Premises or Airport after the begintzing of the term of
this Agreement.
C. Operator here�uy reieases City from any and a11 claims Operatar may have against
City of whatever kind or nature resulting from or in any way connected with tl�e
environmental condition of the Pre�nises, including any and aII claims Operator
may hav� against �ity under the Coinprehensive Environmental Response,
Cotnpensatian, and Liability Act of 198Q, as amended ("CERCLA"}, oz any other
federal, state, or loeal law, whether statutory or cammon law, ordinance, or
regulation pertaining to the release �f hazardous materials into tl�e environmental
from or at the Premises. C�peratar e�pressly waives the benefits of Civil Code
5ection 1542, which provides as �ollows:
�. general release does not e�tend to claims tivhich the creditor does not know or
expect ta exist in his favor at the time of executing the release, which if known by
him must have znaterially affected his settlement with the debtor.
SEC'�"IQN 23. FE�E I� UII�� EN�'S
To comply with Federal t�viation Administration requirements, Licensee and its officers,
administrators,representatives, successors and assigns, as part of the cansideratian hereof,
do hereby covenant and agree:
A. GENERAL �IVIL RIGHTS PROVISIONS: The ("Licensee"} agrees to comply
with pertinent statutes, Executive Orders and such rules as are promiilgated to
ensure that no person shall, on the grounds of race, creed, colar, nationa� ori�,in,
sex,age, or disabilzty be excluded from participating in any activity conducted with
or benefiting from Federal assistance. If the ("Licensee") transfers its abligation to
another, the transferee is obligated in the same manr�er as the {"Licensor").
This provision obiigates the ("Licensee")for the period during which the property
is owned, used or possessed by the ("Licensee") and the ai�port remains obligated
ta the Federal Aviatian Administration. This provision is in addition to that
required by Title VF of the Civil Rights Act of 1964.
_ _ .
B. CIVIL RIGHTS — TITLE VI ASSURANCE: Title VI of the Civil Rights Act of
1964, as amended, (Title VI}prohibits discrimination an the grounds of race,color,
or national arigin under any pragram or activity receiving Federal financial
assistance. Sponsors must 'rnclude appropriate clauses frQm the Standard DOT Titie
VI Assurances in all contracts and solicitations.
C. SOLICITATION CLAUSE: The City of Redding, in accordance with the
provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 USC §§
14
2000d ta 2000d-4) and the �2e,�ulatians; hereby notifies all bidders or offerors that
it will affirmatively ensure that a�zy contraet ezlte�ed into pt�rsuant to this
advertisement, disadvantaged business enterprises will be afforded full anc� fair
oppop�unity to submit bzds in response to this invitation and tivill not be
discriminated against on the grol�nds of race, color, or national origin ii�
cansider�ation for an award.
D. CLAU��, — C�NTRACTS: During the performance of this cantract, the
Cor�ti•actor; for itself, its assignees, and successors in interest {hereinafter refez-red
to as the "Contractor"), agrees as follows:
1. Co �li�a�c� ��ith e�a�Iatia�as: The Contractor (hereinafter includes
consultants} wi11 comply �vith the Title VI List of Pertinent
NondiscrinZination Acts and Authorities,as they may be amended from time
to time, which axe herein incorporated by reference and made a part of this
contract.
2. I�ondis�a~�z�z�aaatic�n: The Contractor, with regard to the�vork performed by
, it during the cozztract, will not discriminate on t1�e �raunds of raee, color, or
national orzgin in the selection and retention of subcontractors, including
procurenlents af materials and leases of equipment. TI�e Contractor wi11 not
participate dixectly or indirectly in the discxiznina�ion prohibited by the
Nondiscrimination Acts and Authorities, including employment practices
when the contract covers any activity, project, or program set farth in
Appendix B of 49 CFR part 21.
3. Solieitations fo�- Subca�tracts, ineludin� Pr�curements of Materials
and Eq�i� eaa�: In a11 solicitatians, either by competitive bidding or
negotiatian made by the Contractor far work to be performed under a
subcontract; including procurements of materials, or leases of ec�uipment,
each potential subcontractor or supplier will be notified by the Contractor
of the contractor's obligations under this cantract and the
Nondiscrimination Acts and Authorities on the grounds of race, color, or
national origin.
4. Infarmation and Reports: The Contractor will provide all information and
reports required by the Acts,the Regulations,and directives issued pursuant
thereto and will permit access to its baoks, records, accounts, other sources
of information, and its facilities as may be deterrnined by the sponsor or the
Federal Aviation Administration to be pertinent ta ascertain compliance
with such Nondiscriminatian Acts and Authorities and instructions. Where
any information required of a contractor is in the exclusive possession of
anather who fails or refuses to fumish the information, the Contractor will
so certify to the sponsor or the Federal Aviation Administration, as
appropriate, and will set forth what effarts it has made ta obtain the
information.
5. Sanctions for Noncompiiance: In the event of a Contractor's
noncompiiance with the non-discrimination provisions of this cantract, the
t5
sponsor �rill impose such contz-act sanctions as it or the Federal Aviation
Administratic�n rnay de�e�-tnine to be apprapriate, including, b�t not l�lnited
to:
a. Withhalding payments to the �ontractor under the contract until
the �ontractor complies; and/or
b. Caz1ce11ing,terzninatii�g, ar sL�spending a contract, in�,�hole or in
part.
E. I�*ICO ORA.TIOl�t C?F PROVISION�: The Contractor will ir�clude the
provisions of paragraphs one t�rough six in every subcc�ntract, including
procurements of materials and leases of equipment, unless exerslpt by the Acts, �he
Regulatians, and directives issued pursuant thereto. The Contractor wi11 take aetion
with respect to any subcantract or procurement as the sponsor or the Federal
Aviation Adminishation may direct as a means of enforcin� sti�c11 provisions
includinb sanctiotls for noneompliance. Provided, that if the Contractor becomes
Involved in, or is threatened wit� litigation by a subcaz�tractor, or suppli�r because
of such direction,the Contractar may I�equest the sponsar to entex into any litigation
ta pz-otect the interests of the sponsar. In addition, the Contractor may request the
United States to enter inta the litigatian to protect the interests of the United States.
F. CLAUSES FtJR L?EEDS TRANSFE�G UNITED STATES PROPERTY:
NOW, THEREFORE, the Federal Aviation Adininistratian as autharized by Iaw
and upan the cnndition that the City of Reddin� wz1l accept title ta ihe Iands and
maintain the project constructed thereon in accordance with Executive Order 9689,
for the �urplus Property Act of I 944,and the palicies and proceduxes prescribed by
the Federal Aviation Administration af the U.S. Department of Transportation in
accardance and in compliance with aII requirements imposed by Tit1e 49, Code af
Federal Regulations, U.S. Department of Transportatian, Subtitle A, Office of the
Secretary, Part 21, Nan-discrimination in Federally-assisted pragrams of the U.S.
Department of Transportatian pertaining to and effectuating the provisions of Title
VI of the Civil Rights Act af 1964 (78 Stat. 252;42 USC § 2000d to 2000d-4},does
hereby remise, release, quitclaim and convey unto the City of Redding all the ribht,
title and interest of the U.S. Department of Transportation/Federal Aviation
Administration in and to said lands described in the RFP 5209 Proposal Guarantee
Form and made a part hereof.
HABENDUM CLAUSE: TO HAVE AND TO HOLD said Iands and
interests therein City of Redding and its successors forever, subject,
however, to the covenants, conditions� restrictions and reservatians nerein
contained as follows, which will remain in effect for the periad during
which the real property or struetures are used for a puipose for which
Federal financial assistance is extended or for another purpose involving the
provision of similar services ar benefits and will be binding an the City of
Redding, its successors and assigns.
The City of Reddinb, in consideration of the conveyance of said Iands and
interests in Iands, does hereby covenant and agree as a covenant running
ib
with the lal�d for itself �ts successors and assiQns; that(1} no persotl wzll on
the 6rounds of race, coloz, or national origzn, be excluded frozn pariicipation
in, be denied the benefits of, or be oth�rwise subjected to discru��inatzon
�iYh regard tc� any facility loea�ed wholly or in part on, over, or undex such
lands hereby conveyed, (2) that the �ity of Redding wilI use the lands and
inter�sts in lands �nd interests in lazzds so conveyed, in compliance with all
requirements iinposed by or pursuan� to Title 49; Code of Federal
Regulations; U.S. Uepartmeaat af Transportation, S�ibtitle A., Office af the
�ecretary, Part 21, 1'*Ioz�-discrimination in Federally-asszsted programs of
the U.S. Dep�rtment of Transportation, Effectuatzon af Title VI of t11e Civil
Rights Act of I964, and as said Regulations and Acts may be amerzdeci, and
(3) that in the event of breach of any of the above-mentic�ned
nondiscrimination corzditions, the I)epartment wi11 have a right to enter or
re-enter said lands and facilities an said 1and, and that above described land
and facilities will thereon revert to and v�st in and become the absalute
propez-ty of the Federal Aviation Administration and its assigns as such
interest existed prior to this instruction.
G. CLA�TSES FOR TRANSFER OF REAL PROPERTY ACQIJIRED OR
IMPROVED UNDER TI�E AIRPC7RT IMPRC?VEMENT PIZC?GRAM:
1. The Licensee for liimselflh�rself, hislher heirs, gersonal representatives,
successors in interest, and assigns, as a part of the consideration hereof, daes
hereby covenant and agree as a covenant running wzth the land that:
2. In the event facilities are constructed, maintained, or otherwise operated on the
praperty described in this Iicense for a puFpose for which a Federal Aviation
Administration activity; facility, or program is extended or for another purpose
involving the provision of similar services or benefits,the licensee wili maintain
and operate such facilities and services in compliance vvith all requirements
imposed by the Nondiscrimination Acts and Reguiations listed in the Pertinent
List of Nondiscrimination Authorities(as may be amended)such that no person
on the grounds of race, color, or national origin, will be excluded fram
participation in, denied the benefits of, or be atherwise subjected to
discrimination in the use of said facilities.
3. Wzth respect to Iicenses, leases, permits, etc., in the event of breach of any of
the above Nondiscrimination cavenants, City of Redding wzll have the right to
terminate the license and to enter, re-enter, and repossess said lands and
facilities thereon, and hold the same as if the license had never been made or
issued.
a. With respect ta a deed, in the event of breach of any of the above
Nondiscrimination covenants, the City of Redding wi11 have the right to
enter or re-enter the Iands and faeilities therean, and the above described
Iands and facilities will there upon revert to and vest in and become the
absolute property of the City of Redding and its assigns.
17
H. CLAUSES F�R CC)I'ISTRUCTZ�N/USE/A�CESS TO AL PROPERTY
A�QUI�D tTNL�ER THE ACTIVI�'Y, FA�ILITY OR PROGRAIVI: Tl�e
following cl�uses will be inch�ded in deeds, licenses, permits, or sirr�_ilar
instruments/agreements entered into by City of Redding pursuant to the provisions
of the Airport Improvement Pr�gram gr�nt assurances.
1. The licensee for hirnself/herself, his/her heirs, personal representatives,
successors in interest, and assigns,as a part of the cansideration hereof,, does
hereby covenan� ar�d agree as a covenant running with the land that (�) no
person on the�round of race, color,or national origin,will be excluded froln
participatian in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities, (2)that in the construction of any
improvements on, aver, �r under such 1and, and the furnishing of services
thereon, no person on the ground af race, color, or national origin, wi11 be
excluded from participation in, denied the benefits af, or otherwise be
subjected to discrimination, (3) that the Iicensee will use the premises in
compliance with all other requirements imposed by or pt�rsuant ta the �,ist
of discrimination�.c�s And Autharities.
2. With respect to licenses, in the event of breach of any af the abave
nandiscriminatio�� covenants, City Qf Redding will have the right to
terminate the Iicense and to enter or re-enter and repossess said land and the
facilities thereon, and hold the same as if said license had never been made
or issued.
3. With respect to deeds, in the event of breach of any of the above
nondiscrimination covenants, City af Redding will there upon revert ta and
vest in and become the absolute praperty af City of Reddang and its assigns.
I. TITLE VI LIST OF PERTiNENT NONDISCRIMINATIC}N ACTS AND
AUTHORITIES: During the performance af this contract,the Contractor,far itself,
its assignees, and successors in interest(hereinafter referred to as the"Contractor")
agrees to campiy with the fallowing non-discrimination statutes and authorities;
including but not limited to:
• Title VI of the Civil Rights Act of 1964 (42 USC § 2000d et seq., 78 stat.
252) (prohibits discr'rmination on tl�e basis af race, color, natianal origin};
` 49 �FR part 21 (Non-discrimination in Federally-assisted programs of the
Department of Transpartation—Effectuation of Title VI of the Civil Rights
Act af 1964};
• The Uniforin Relocation Assistance and Real Property Acquisition Policies
Act of 1970, {42 USC § 4601} (prohibits u�ifair treatment of persons
displaced or whose property has been acquired because of Federal or
Federal-aid programs and projects};
• Section SQ4 of the Rehabilitation Act of 1973 (29 USC § 794 et seq.}, as
amended (prohibits discrimination on the basis of disability}; and 49 CFR
part 27;
• The Age Discrimination Act of 1975, as amended (42 USC § 6101 et seq.}
(prohibits discrimination on the basis of age);
18
� Aiyport and �ir�ray Improvement Act of 1982 (49 USC � 471, Sectior�
47123), as amended (prohibzts discriminatian based on race, ereed, color,
nati�nal origin, �r sex};
� The Civil Rights Restoration Aet of 1987 (PL IOQ-209} (broadened tl�e
scope,eoverage and applicability of Title VI of tl�e Civil Rights Act of 1964,
the Age Discrimination Act of 1975 and �ectian 504 of the Rehabilitation
Act of 197�, by exp�nding the definition of tlae tem�s "programs or
activities" to include a11 of t�le programs or activities of the Federal-aid
recipients, sub-recipients and contractors, whether such progran�s or
activities are Fe�erally funded or��ot};
� Titles II and III of the Americans with Disabilities Act of 199Q, w��ich
prohibit discrimin�tian on the ��sis of disability ir� the operation of publie
entities, public and private transportation systems, plac�s of public
accotnrnodation, and certain testing entities (42 US� §§ 12131 — 12189) as
implen�ented by U.S. Department of Transportation reglzlations at�9 CFR
parts 37 and 3�;
� The Federal Aviatiaal Administration's Nazzdiscriinination statl�te (49 US�
� 47123) {�rohibits discriminati.an on the basis of race, color, iiational
origin, and seX);
� Executzve Order 12898, Federal Actiol�s to Address Environmental Justice
in Minoa-ity Populations ar�d Law-Incame I'optzlations, whicl� ensures
nondiscriznination against minority populatians by discouraging progragns,
policies, and activities �vith ciisproportianately high and adve�se human
health or environmental effects an minority and la�v-income populatians;
� Executive C�rde� 13166, Improving Access to Services far �'ersons with
I.,imited English Proficiency, and resulting agency guidance,natianal origin
discriznination includes discrin7ination because af limited English
proficiency {LEP}. To ensure complia�ice wzth T�tle VI, yau must take
reasonahle steps to ensure that LEP persons have meaningfui access to your
programs (70 Fed. Reg. at 74087 to 74100);
� Title IX of the Education �rr�endments of 1972, as atnended, which
prohibits yau from discriminating because of sex in educatian programs or
activities (20 USC 16$1 et seq}.
SECTION 24. ASSIGNIVYENT
Operator shall not voluntarily assign or encumber its interest in this Agreement ar in the
Premises, ar allow any other person or entity (except its authorized representatives} to
occupy or use any or alI part(s) of the Premises, without first obtaining the City's prior
written consent. Said consent shall not unreasonably be withheld. Any assignment or
encumbrance without the Czty's consent shall be voidabie and, at the sole electic�n of the
City, shall constitute a default of this Agreement. No consent to any assibnment or
encumbrance shall constitute a further waiver of the provisians of this sectian.
SECTION 25. INVOLUNTARY ASSIGNMENT
A. No interest of Operator in this Agreement shall be assignable by aperation of law.
Each of the following acts shall be considered an involuntary assignment:
i9
1. If Operatox is or b�comes bankrupt (whe��er voluntary or involun�ary) or
insolvent, mak�s an assi�nment for the benefit of creditors, or institu�es a
proceeding under�lze�arikruptcy�1ct in u�hich�perator is the�ankrupt; or,
if Operator is a partnership or cansists of more than one person or entzty; if
� any partner of the partnership, or other person or eg�tity, is or becames
banks���t (whethel- voluntary or involuntary} or insolvent, or makes 1n
assignnzent �or the benefit of creditors;
2. If a writ of att�chment or executzon is levied on this ��reeznent;
3. If, in any proceeding Qr action to which Qperator is a party, a receiver is
appointed with authority ta take possession of the �'remises; ar
4. The abandonment or discontinuance of any operation at the Aizport by
Qperator, or the fazlt�re ta conduct any service, operation or activity
permitted by this Agreement. If this condition exists for a period of seven
(7) consecutiva calendar days without the prior written consent of the City,
it will constitute an abandonment af the 1and, facility or location, and this
Agreement and the Permit shall become null and vaid.
�. �n involuntary assignnment shall constitute a default by Operator, and the City s1�a11
have the right ta elect to terminate this A�reement. In na event sha11 this �greement
be deemed ar treated as an asset af Operator.
�E��'� 1�126. EF't�.�1LT
A. The occt2rre�zce of any of the fallowing shall canstitute a material breach or default
of this Agreement by Operator:
1. Failure to pay any payment due under this Agreernent when due, if the
failure to pay continues for seven(7}calendar days after notice of the failure
has been given to Operator;
2. Failure of the Operator ta operate the business authorized in this Agreement.
3. Cessation or deterioration of any service far any period which, in the
determination of the City, materially and adversely affects the operation ar
service required to be performed by Operator under this Agreement.
4. Fazlure to maintain current licenses, if any, required for the permitted
operation. _
5. Intentionally supplying the City with false or rnisleading information or
misrepresenting any material fact on documents or in statements to or before
the City and its employees, or the intentional failure to make full disclasure
an a financial statement, statement af gross sales, or other required docu-
ments.
20
6. Failure to perfol�n any other provision of this Agzeement if�he faillu�e to
perform is not cured withi�� thirty (30} calendar da}�s afte�- notice of the
failu��e has been giveza to Operator. If tl�e breach or default cannot be
z�easonably cured within thirty (30) calendar days; Operator shall not �e in
breach or default of this Agreement if Operator commences to eure the
t�reach or default within tl�e thirty {30} caIendar day period and diligently
and ztl good faith cantinues to eure the default.
B. Notices given under this section shall specify the alleged breacl� or default, and
shall demand fhat �peratar g�rform the pravisior�s of t��is Agreement ar pay the
payment that is in arrears, as the case znay be, within the applicable time period, ar
this Agreement is terminated. No such notice shall be deemed a forfeiture ar a
ternzination of this Agreement or a revocation of the Permit unless the City so elects
in the notice.
C. The City, at any tzme after Operator commits a breach or defalklt af this Agreemez�t,
can cure the breach or default at C?perator's cost. If the City, at any time, by reason
of Qperatar's breach or defauit, pays any s�.im or does any act that requires the
payment of any sum, the sum paid by the City shall be due immediately from
Operator to the City at the time the suin is paid, az�d if paid at a later date sha11 be
subject to late fees and�enaity charges as shown in the City's then current Scl�edule
of Fees and Charges. The sum, together with the late fees or penalty charges, shall
be an additional payment owed to the City pursuant to this Agreemerzt.
���TI�i'� 27. �'I'T'�"S �, I�� F 12�i��'��1L'I'
A. Upon the occurrence af a default that is not timely cured by Operatar, the City may
terminate this �1.gz�eement and Operator shall immediately surrender the Pretnises
to the City. On terminatian of this Agreement, the City may recover fram Operator
alI of the follgwing:
1_ The worth of any unpaid fees that had been eamed at the time of the
termination, to be camputed by allowing interest at the maximum amount
of interest permitted by 1aw;
2. Any other amaunt necessary to compensate the City far all the detriment
proximately caused by Operator's failure to perform obligations under this
Agreement, including advertising expenses, expenses of remodeling the
Premises far a new Operator (whether for the same or a different use}, and
any special concessians made to obtain a new Operator; and
3. Any other amounts, in addition to ar in lieu of those listed above, that may
be perznitted by applicable law.
B. City reserves the right, during the full term of the Agreement,to use the succession
of proposers in the event an Operator is found in default or breach af this Agreement
and this Agreement is terminated.
?1
�E��'I�l� 2�. �IT 1°� �1� �I' �' I�ES
C)n the e�piratian, canceliation or tez�nination of this Agree�nent, Qperator sha11 sun�ender
the Fremises to the City and de�iver all keys to any locks on the Premises. Licensee shall
reimburse the City foi any damage done to the �'re�lises caused by Qpez-ator's use of the
Premises or Operator's actions or omissions.
5���'IC�� 29. ij��,IT1�t'�'�� A,�S��Tr�Tv��
Under no circiimstances will Operator use �ity e�nployees wham are on duty to perform
work at the Premises. Under na circumstances will Operatar use City employees whom are
off duty ta perform work at the Premises if the natt�re of the work is substantially similar
to the employee's rebular wark duties for the City.
���TICJ►�; 30. ,�Y�I�S �3A.T�IIl�EI�S,F�.,AG�
Operator is required to provide a business "lago" type sign at its corresponding terminal
counter location and appropriate signage for their ready-car parking spaces. The size and
location of signs, banners, flags, ete., Iocated an the Premises or at the Airport shall be
subject to the prior written approval and control of the t�irpoi-ts Manager. The size and
Iocation of a1I signs, banners azld flags located off the Airport advertising the activities of
Operator sha11 be subject to tl�e City's sign orciinance (Redding Municipal Code Chapter
18.42).
�ECTI�I�t 31. l�t�'�'I�ES
Any notices required to be given under this Agreement shall be in writin� and shall be
deemed properly delivered, given or served �vhen personally delivered to the City or
Operatar, or in lieu af such personal service, sent by United States mail, registered or
certified, return receipt requested, addressed as follows:
T+� CITY: TC� �PERA.7E'OR:
City of Redding l�iunicipal Airport Avis Budget Car Rental, LLC
Attn.: Airparts Manager Attn.: Anne D. Marrison, Vice President
6751 Woodrum Circle, #200 6 Sylvan Vaay
Redding, California 96Q02 Parsippany,New Jersey 07Q54
In the event of personal service, notice shall be deemed given when personally served. In
the event of service by mail, notice shall be deemed to have been given seventy-two (72}
hours after deposit of sam� in the United Sfafes mail post box, postage prepaid, addressed
as set forth above,or upon the date of the signed return receipt,whichever is sooner. Either
party may change its address for the purposes of this section by giving written notice of
such change to the ather party in the manner provided in this section.
SECTION 32. ADMINISTRATION BY CITY
Whenever Operator is required ta secure the approvat or consent of the City pursuant ta
this Agreement, the City shall mean the Airports Manaser. �hen the Mayar is signatory
22
to this Abreement; the Ailparts I�✓Ianager shall have auth�rzty to e�ecute any anzendment
to this Agreement which does not increas� the amount of cc�mpensation allowa�le to
Operator, oz otlzerwise sul�stantially change the nature or scope of the s�rvices provided
herei��.
�E�'�'��I� 3�, �C}1��' �'T Il��'� �`I'�,'�'���A� ���IJ�
A. This Agreement s1�a11 be deemed ta have been enterecl into iz� Redding, Califomia.
�311 questians regarding t��e �✓alidity, interpretation or pezformance of any of its
tez-ms or of any rights or obligations of the parties to tl�is Agreement shall be
�ovemed by California law, and any action brought by either party ta enforce any
af the terms af this Agreement sha11 be filed in the Shasta County �uperior Court.
F. This dacument, including all e�hibits, contains the entire agreement between the
parties and sL�persedes whatever oral or written uz�derstanding eaclz may have had
prior to the execution of this Agreement. This Agreeme�zt shall not be altered,
amended or• modified except by a writing signed by City and Operator. Na verbal
agreement ar conversaiion wit1� any official, offzcer, agent ar employee of City,
either before,during or after t�1e execution of this Agreement, shall affect or modify
any of the terms or conditions contained i11�his Agreement.
C. No covenant or conditian to be performed by Operator under thzs Agreement can
be waived eYcept by tlze written cansent of City. Farbearance or indulgence by City
in any regard ��hatsoever shall not cflzastii�xte a waiver of the covenant or condit�an
in question. Untii performance by Operator af said covenant or conditzon is
complete, City shall be entitied to invoke any remedy available to City under this
Agreement or by Iaw or in equity despite said forbearance or indulgence.
D. If any portion of this Agreement or the application thereaf to any person or
circumstance shall be invalid or unenforceable to any extent, the remainder of this
Agreement shall not be affected thereby and shall be enforced to the greatest extent
permitted by law.
E. The headings in this Agreement are inserted far canvenience only and shall not
constitute a part hereaf.
F. Each party ta this Agreement declares and represei�ts that in entering into this
Agreement, it has relied and is relying soiely upon its own judgment, belief and
knawledge of the nature, extent, effect and consequence relating thereto.Each party
further declares and represents that thzs Agreement is made without reliance upon
any statement or representation not contained herein of any other party or any
representative, agent or attorney of the other party. The parties agree that they are
aware that they have the right to be advised by counsel with respect to the
negotiations, terms, and conditions of this Agreement and that the decision of
whether or not to seek the advice of counsel with respect to this Agreement is a
decision which is the sole responsibiiity of each of the parties. Accordingly, no
pa.rty shall be deemed to have been the drafter hereof, and the principle of law set
forth in Civil Code § 1654 that contracts are construed against the drafter shall not
aPP�Y-
23
�5���'I�1� 34. A'T�'� E�4S FEE�
In any dispute between the �ity and 4perator, whether or not resulting in litigation, the
prevailing p�rty sha11 be entitled to recover from the other party all reasonable costs,
inel�iding �vithout limitation, reasonable attorney's fees. "�'revaili�zg party" shatl include
�vithout Iimitation, a party who disrnisses an action for specific performance or for damages
in excl�ange for sums allegedly due; perfonnance for cavenants allegedly breached or
consideration substantially equal Ca t1�e relief sought i�s the action, or which receives from
the other party, in connection with any dispute, perfoimance substantially equivalent ta
any of tl�ese,
�E�T��I`�35. �ITT'� t? `�'1T'I'� �' N�' �'I'
Each of the undersigned signataries hereby represents and warrants that they are authorized
to execute this Agreement on behalf of tlle res�ective parties to this �lgreement, that they
have full right, power and lawful authority to undertake alI obligations as pz•ovided in this
Agreement; and that the execution, performance and delivery of this Agreement by said
signatories has been fully authorized by all requisite actians on the part of the respective
parties to this Agreement.
SE�'T��I�i 36. SU�2i1IV�.i..
The provisions of Sectians &, 9, 20, 21, 22, 23, 27, 28, 33, and 34 of this Rental Car
Concession Agreement and Permit for Commercial Activities shall survive termination of
the Rental Car Concessic�n Agreement.
�E�'��C31�t 37. A��l'��'T �t�I'd�CESS�E�Pd DI�A,D'�rAI�TAG� �3'U�Il��SS
�l'�TE SE �'I2(�G 1� iA�DBE)
A. This Agreement is subject ta the requirements of the U.S. Department of
Transportation's regulatians, 49 CFR, Part 23 related to the airport concession
disadvantaged business enterprise {ACDBE} program. The Lessee agrees that it
will nat discriminate against any business awner because af the owner's race,calor,
national origin or sex in connection with the award or performance of any
concession agreement, management contract, or subcontract, purchase or lease, or
other agreement covered by 49 CFR Part 23. Lessee agrees to include the above
statements in any subsequent concession agreement or cantract covered by 49 CFR
Part 23, that it enters for operations at the Airport and cause those businesses to
similarly include the statement in further agreements, but all such subsequent
agreements shall be subject ta the provisians of A.RTICLE XV_hereof.
B. Lessee isfis not an Airport Concession Disadvantaged Business Enterprise as
defined in 49 CFR Part 23, Section 23.89. In the event Lessee does not ar no longer
qualifies as an ACDBE pursuant to federal law and the City/Airport Company's
certification program,Lessee agrees that it will make a good faith effort to purchase
services, goods or praducts fram ACDBEs which wi11 equal ar exceed the
City/Airport's designated Airport Concessions Disadvantaged Business Enterprise
Program goal for airport concessions for each year of the agreement.
2�
C. Eaeh year Lessee shall provide to the �ity, no later than February Ist; the folle�wing
annual r��DBE info��mation: totai gross revenue of the Lessee's business
operations at the airport for the Iast Federal Fiscai Year ( October I to September
30), the �Za�ne and address of each non-ACDBE and each ce��tified ACI�BE with
which it has done business during the past federal fzscal year, a descz�iption af the
nature of the services performed by and/or items purcliased from each business,
buszness contact,ACD�3E cea-tification number(if applicable), and tl�e total amount
spent with each business.
25
SEC"I"I�31� 3�. ��'�+ Q�' A� � EI�`�
1'he date of this Agreen�ent shall be the date it is signed by City.
�I��I'I'1°�ES��YHER.��F, City and Cansultant have executed this Contract on the days and year
set forth below:
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By: E D.MORRISOI�t,Vice Pr sident
Tax ID Na: 06-0918165
Atta�h�nent:
Exhibit A—Monthiy Certified Activity Repart
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Aetivity period: to 202
Total car renta� transactions for reportingmonth:
Total gross rcceipts for reporting period: $
$ x % _ $
Monthly gross receipts percentage percentage of gross receipts
Minirnum monthly guarantee: �
PAY THE MIi�IIvIUM MONTHLY GUA.RAl��TEE OR THE PERCENTAGE OF GROSS RECEIPTS_WHICHEVER IS
GREATER.
Due an 20t�of each month: �
I hereby certify that the above is a true statement from the records of:
Business:
Preparer's signature:
Print Name and Title:
Date prepared:
U �i� �� �� �r��ap
flveeall Status: A,PPROVED
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INFO CONTRACT NUMBER PROJECT NUPJ�BER PRQJ£CT NAME 6EPARTtriEhlT NAME PROJcCT STATUS
� G Car RenYal Service 823 llirport 821 Airport 821 �;r��,r.�;,, �
Required Policies^
Each Occufrqnce- 52,000,000
General Liability o�tovzozi—o��mrzozz Fn�o��„�,e�a�:�o��;��ey s
Pollcy.GL9007603790 Med.erP fany cm:peaon): S
InSufCr.Coniinen(alCa5ua1 C6mpan �z�scnal/=_Cvlrjury: 5 "'�'���""-
Manual6nfry h_r
nPral(Ac�gr�ye;ej: $25,000,000
Producis-comp{oP a94 $
Automobile Liability o�irnnozi—o��ovzozz c�"'��,�e s � �;� �«�u: zi.000,000
Policy.8UA7007�00830 3 U I�I'u�(e� onj�. g
Manual Entry msurec connnenta�easoa�ry eomp�. � ��b�i'i�a a ��cn;;: s ��
?wPeny: S
Exc es s o�iovzozi—oTiovzozz
Pol4cy 62H13QS68005 !ini;: g4,000,000 ,„+���
Manual Entry Insurer ACE Propg_rty8 Casualtv insuran<e Ca
Workers Com ensation mrovzo�i—o�iov�oaz ��
P e.�-_��na<dae,c sr,000.000
Policy WC40t41063Q9 E.l.Diszase-=a Emf•byee: S
ManualEntry Insur�r.americanCasualryCo.ofReadinoPn ELD�<_case-Poiicy�irit S
Prope rty/Home o�iovzoz�—ouovzozz
Poltcy.570000D29827 �im'it: 470.000.000 �-�/
Manuai Entry Insurer.Ironshore Specialry Ins�rnnce Co
Required Documents�
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PAMELA MIZE,GITY CLERK
SHARLENE TIPTON,assisrANT CirY C�ERK
530.225.4447
530.225.4463 FAX
November 22, 2Q21
Avis Budget Car Rental, LLC
Attn: Anne D. Morrison, Vice President
6 Sylvan Way
Parsippany, New Jersey 07054
SUBJECT: Agreement for Rental Car Concession and Permit for Commercial
Activities, G9108
Dear Anne D. Morrison,
Enclosed please find the fully executed original of the above referenced Agreement for
Rental Car Concessions and Permit for Commercial Activities by and between the City of
Redding and Avis Budget Car Rental, LLC DBA Budget for the purpose of providing a rental
car concession at the Redding Municipal Airport.
If you have any questions regarding this agreement, or if we can be of assistance, please
eontact the Office of the City Clerk at (530) 225-4044.
Sincerely,
� _`� -�-`�=�-�=-`-�1--`�w
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Amber DalPoggetto
Executive Assistant
Enclosure
cc: Stephanie McCollum
Jim Wadleigh
Ellen Grannis
,ii
TRANSMITTAL FORM
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TO CITY ATTORNEY�225-4050)&CITY CLERK(225 4439�
Agreements p Bonds Q Contracts Q Leases p Escrow Instructions
d Deeds p Securities Q Resolutions Q Ordinances Q Opinions
Date: 1��17�21 From: Stephanie McColium
Dept. Name: Airports Dept. # 821 Phone: 225-4511 ��.. �.� �
Person most knowledgeable: Jim Wadieigh Phone: ��� �°
� � ��
INSURANCE REQU/REMENTS MET?Prior to signatures, must submit lnsurance Transmittal Form to isk, -� �ix
certificate upioaded by vendor and approved by Risk. !f not, your contracts will be held in the Clerk's Office. For
help contact Risk Liability- da1�Pc�,ci� c�fr�ddir� .e�r� (530)225-4385.
DESCRIBE ATTACHED DOCUMENTfSI
Document Title: Rental Car Concession Agreement and Permit for Commercial Activities
Outside Party(ies): Avis Budget Car Rental, LLC dba Avis
Project(WhatJWhere/Why?); -�'Rental service at Redding Municipal Airport
COUNCIL APPROVAL REQUIRED? No❑Yes�f IF YES,DATE OF MEETING: 1��16/21 Agenda Item#: 4•11(b)
Was contract f agreement the result of an RFP or Bid?No Yes 0 Bid Schedule#or RFP#: 5209
IS�Q T �`T �I..AT°� °T��' E�� FI �? ���I'��
RECaUEST FOR ATTORNEY SERVICES
❑ Att�rate��v���r��t°�f�-Ail documents ra�us�be reviewed&�appr°oved b�fare obt�ining an�sigr��tures.
t/Vheta arrtendin�contracts,attach�t copy�f arigir�ai c�n�ract anci ali�r-ior�n�en�i�ents. L�c�n€�t ewrrt�il
docurnents�ithout pr°ior ap�rovai.
❑ Retui'n di'dits t0: (to finalize&obtain outside signatures)
� ��.�����;> �: a`�������,������ �� � ������ ��������a��;�;�,��m� ��. �_� a�zA;�x�t:��������r�t� ���.�r���s�y°�m�v��vv "�"� ���
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*Attarney approval now mandatory-RMC§4.20,120.A) �,�°�`���,��s^� ��;,��,,� ` _°�
Note: Signed originals will be forwarded to City Clerk for nece�sary City signatures,insurance'&' � ��� -�
other requirement verification,and processing. �''�
❑ Mailing/distribution Instructions;
� Prepare Certificate of Acceptance (easement&grant deeds) �: � �<.,..� �� �
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CIT'�' OF REDDING
- �ZEPOI�T TO THE CITY COUNCIL
MEETING DATE: Navember 16,2021 FROM: Chuck Aukland, Public
ITEM NO. 4.11(b) Works Director
***APPROVED BY***
..,�"".�.._ _ _.__..._._._.. ._. _...._.�
/ �
Uk13IId,pLl��1C W07�CS D178Ct i�1Q.�7�2� ' .� �P �• ity�anaeer rnnDe��e pn tScn�icesDirector 1)!g;?p2
caukland@ci.redding.ca.us btippin@cityofredding.org
SUBJECT: 4.11(b)--Rental Car Concession Agreements at Redding Municipal Airport
Reconzmendation
Authorize the following actions relative to Request for Proposal (RFP) Schedule No. 5209 at the
Redding Municipal Airport:
(1) Award three Rental Car Concession Agreements and Permit for Commercial Aetivities
to: (a)Avis Budget Car Rental, LLC DBA AVIS; (b)Avis Budget Car Rental, LLC DBA
BUDGET; and(c) SJ Denham, Inc. DBA HERTZ;
(2) Approve the agreements for a five-year term effective December 1, 2021, through
November 30, 2026; and
(3) Authorize the Mayor to execute the agreements.
Fiseal Impact
The monthly concession fee paid by the rental car operators shall be the greater of the minimum
monthly guarantee or the percentage of gross receipts payable each month. The Airport is
guaranteed to receive revenue from the rental car concessions in the amount of $13,626 per
month for the first year, with guaranteed increases each year up to $15,136.81 in the last year of
the agreement. It is important to note that it is not uncommon for the 10 percent of gross receipts
to exceed the minimum guaranteed revenue payable to the Airport. With the rapid growth of the
air service in the last year,revenues are expected to remain strong.
Alternative Action
The City Council may choose to not approve the agreements. Existing rental car services would
potentially not be available at the Redding Municipal Airport, and any future rental car service
would require a new Request For Proposals (RFP)process.
�`I'I'�' � I� II�i�
�:�I�t'I'AI, �'A �t�i°��'ES�I�T� �� �i Ei�'I'
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1�' I� r�� �i�I�I�`�' is made by and bete��reen tl�e �ity af Redding, a m�inicipal
corporation (City), and Avis Budget Car Rental, LL� DBA AVIS (Operator) far the pulpose of
providing a rental car cancession at tlle Redding Municipal Airport.
l€�� �I �' A � �S
A. The City owns and operates the Redding Mzznicipal Airport (Airport).
B. It is necessary in the promotion and accommodation of air commerce and air
transportation that qualifiecl, economical, caurteous, safe, clean and effciently
operated reratal car facilities be available for the benefit of air travelers and the public.
C. Operator was awarded the right to operate one of three available rental car
concessions at the R�dding Municipal Airport.
D. Operator has been approved to occupy a portian of the Airpart terminal building,
utilize the rental car-ready parking lot for the storage of vehicles, and use the vehicle
service center car staging and wash rack facilities to operate a rental car concession.
E. AI1 af the Airport is not required for aeronautical activzties. The City desires to use
portions of the Airport to provide facilities and services �or other than aeronal�tical
acti�vities for the benefit of the general public.
A � � � � IVIENz'
S��"T�OI'�11. P MISES
A. Those portions of the Airport to be used exclusively by Operator pursuant to this
Agreement are Site B, in the Airport Terrninal Building, Site B, in the rental car-
ready parking Iot, and Site B, in the vehicie service center and wash rack facility.
B. The City retains the right at any time to change the location of the Premises to be
used pursuant to this Agreement at the discretion of the Airports Manager. City
shall provide thirty (30) calendar days' priar written notzce ta Operator of any
change in the Premises.
SEC'TION 2. 'TERM
A. The term af this Agreement shall be for a period of five (5) years commencing at
12:01 a.m. on December l, 202I, and expiring at 12:00 a.m. on November 30,
2026.
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B. The �ity shall 11ave two {2) one-year options, through Nover��ber 30, 2028, to
unilaterally ex�end the term of this Agreement. If�ity eYercises such option, alI of
�he terms and conditions of tllis Ag�eement sha11 remain in fu11 force and effect,
with the exception of this ciause covering City's option to extend the term of the
Agz-eement. �ity may exercise its option to extend the term by written notice to the
Operator no less than one hundred eighty (1�0) calendar days' prioz� to the
e�piration of the initial term, a��d first option term, if any.
C. This Agreement is entered into with tl�e understandll�b tha# the City will initiate an
open competitive process for the provision af rental car s�rvice beyond the
expiration of tllis Abreement.
���"TI i�t 3. �77��,
Operator is authorzzed to use the Premises for the sale purpose of opezating and
rnaintaining a rental car cancessian at the Redding Niuniczpal Airport.
A. Site �, in t11e Airport Terminal shall be used fo�� the ptarpose af conductin� an-
airport rental car concession transactians and related operations for the convenience
of passengers, patrons ancl tenants utilizing the Airport.
B. Site }3, in the �2eady Car Space Locations shall be used for the purpase af pre-
positioning rental cars for custo�ners and providing a designated area to which
custozners return rental cars. Operator shall not utilize the ready-car parking spaces
for the storage of vehicles Iarger than t�venty (20) feet i�1 length (i.e. recreatianal
vehicles) nar shail Operatar's employees utilize these pa�•king spaces for the
purpose of parkin� their personal vehicles.
C. Site B, in the Car Wash area shall be used for the purpose of staging vehicles for
washing and detailing. Operator shall not be permitted to self-fuel vehicles or
eonduct major inaintenance ox xepair services on rental vehicl�s on the Airport.
SECTIOI� 4. PERN�IT Ft}R�OMME,RCIAL A�TIVITIES
This Agreement shall aisa constitute a Permit for Commercial Activities ("Permit"), and
the terms hereof shall constitute the terms for a permit for commercial activities required
by Redding Municipal Cade Section 3.08.03Q.The City Council of the City has determined
that these cammerciai activities are compatible with the use of the Aizport, and that the
best interests of the public and the City af Redding will be served by approval of such
commercial activities. A breach or default in the terms of this Agreement shall alsa
eonstitute a breach of the Permit.
SECTION 5. CONCESSION FEES AND CHARGES
A. Concession Fees. The monthiy concession fee to be paid by Operatar to City under
this Agreement shall be the GI2EATER of the Minimum Monthiy Guarantee or
2
the P�rc�z�t��� ��' ��°os� ec�i�ts �ayable each month during the twelve month
perzc�ds as follotivs:
P'��-���t�b� �f
�2-1�Iar�t�a P�rias� _izzi u ��a�h�y �u�r��a���� a�r ����s �ce�ts
Decernber 1, 2Q21, thru November 30, 2022 $ b,65�.05 10 %
Amaunt in Numbers
I�ecember l; 2022, thru November 30, 2023 $ 6,824.�1 10 %
�maunt in Numbers
December 1, 2023, thru November 30, 2024 $ 6,99�.12 10 %
Amount in Numbers
I�ecember 1, 2024, thru Naveznber 30, 2025 $ 7,170.00 10 °/a
�mount in Numbers
December 1, 2025, thru November 30, 2026 $ 7,349.25 10 %
Amount in Numbers
�. Operator shall pay to �ity the Minimum Monthly Guarantee or the percentage of
gross receipts,whichever is greater for the prior calez�dar month,without deduction,
set aff, priar notice or delnand on or before the tvventieth {20`h} day of each manth
{no payment sha1l be due under this agre�ment on December 20, 2021}.
C. Each payment specifz�d in Sec�i�� 5 above sha11 be submitted with a lY1�a��hly
�erti�ed �e#�vity �2e�o�, attached hereta as �shibit A, which sha1l siate the
Opexator's gross receipts during the prior calendar rnailth.
D. If City exercises its aption to extend the term of this agreement for an extended
term, Operatr�r shall pay to City the most cui•rent Minimum Monthly Guarantee or
percentage of gross receipts, whichever is greater, pursuant to the terms and
conditions of the Agreement.
E. All payments required under this Agreement shall be paid to City, addressed to the
City Treasurer, at 777 Cypress Avenue, Redding, California, 960Q1, or any other
place ar places that City may designate by written notice to Operator. Payments not
paid when due and/or not submitted with the apprapriate Monthly Certified Activity
Report are subject to Iate fees and penalty charges as shown in the City's then
current Schedule of Fees and Charges.
SECTIQN 6. GROSS RECEIPTS DEFINED
A. "Gross receipts" of Operator means (1) all monies paid or payable to the Operatoz
for net time and mileage whether for casl�or credit under a transactian entered into
on the Airport, regardless of when or whether paid far or not and regardless of
location assignment of the automobiles and without regard to the manner in which,
or place at whiclz, the autoznobiles are furnished to 4perator's customers, and
3
without reg�ud to whether the automobiles are returned ta the Aiiport or�o sol�e
other location; {2)a11 r�et time and mileage re��enue from an5�autazn�bile exchanged
from Qperator's Redding area operations �or an autoznobile oribinally rented at the
Airport; and,(3}a11 fees of any zaature cllarged or generated by�perator,C�peratox's
permitted vendors, licensees, or concessionaires, if any, whether far cash or on
credit{�vhether collected or not}pursuant to this Agreement. Any transactian on an
installment basis or otherwise involving the extension of credit, sha11 be treated as
a sale for the full price at the time of the transaction, ines�ective of the time of
payment.
B. Grass receipts shall not include, or if ineludsd thexe shall be deducted (but only to
the extent they l�ave been included}, the following:
1. Sums azad creclits received in the settlement of claims for loss af or da�na�e
to concessi�ns or znerchandise.
2. Gift certificates, or similar vouchers, until such time as they have been
converted izito a saie by redem�tion.
3. Sales and �ise taxes, sQ-called h�xury ta:ces, consumer's excise taxes, gross
reeeipt taxes, rental car transaction fees and other similar taxes now or in
the future imposed on the sale of food, beverages, merchandise or services,
but anly if such taXes are added to the selling price, separately stated,
collected separately from the selling price af inerchandise or services, and
coilected from ct�stomers.
4. Sales of fixtures, trade fixtures, equipment, vehicles or personal property
that are not merchanctise as allowed in this Agreement.
SE�'TIOl� 7. �TA7['El`✓IEl�t'�' QlE �ROSS �CEIPT�, �V�E�V
A. Operator shall furnish to City a statement of Operator's gross receipts, as defined,
on the City's Manthly Certified Activity Report (Exhibit A), attached and
incorporated herein, on or before the twentieth(20t�') day of each month following
the reporting period. Each statement shall be signed and certified to be correct by
Operator or its authorized representative.
B. Operator shali keep at its address of record full and accurate baoks of account,
records, cash receipts, and other pertinent data showing its gross receipts. Operatar
shall maintain accurate receipts and shall maintain procedures for accurately
recozding any and all sales and other transactions made on the Fremises and shali
record all gross sales and other transactions made on the Premises or pursu�nt to
this Agreernent. Operator's books of accaunt, records, cash receipts, and other
pertinent data shall be kept for a period of two (2) years after the end of each year
of this Agreement. The receipt by the City of any statement, or any payment of
percentage gross receipts for any event shall no�bind the City as ta the correctness
of the statement or payment.
4
C. The City shall be entitled during the tez-m of this Agreement and within two (2)
yeaz-s after the exparatian or terrnination af this Agreement to i��spec� ai�d eYaznine
a11 Operator's books of account, records, cash receapts, and other pertznent data, sa
the City can ascertain �id/or verify Operator's gross receipts. Operator sha11
cooperate fixlly with tlze City in makinb the inspection. The City shall also be
entitled, once during each year of this Agreement and o1�ce after the expiration or
tern�inatian of this �gre�ment, to an independent audit of Operator's baoks of
account, records, cash receipts, and other pertinent data ta determine and/or verify
Operator's gross receipts, by a certified public accountant to be designated by t1�e
City. The audit shall be limited to a detennination of Operator's gross receipts and
shall be conducted during regular business hours.
Z�. If the audit shotivs that there is a deficiency in the payment of any percentage gross
receipts paid to the City,the deficiency shall become untnediately due and payable.
The costs of the audit shall be paid b��the City unless the audit shows that Operator
understated the gross receipts by two percent(2°/Q} or znore,in whic��case,Operator
shall pay aII the Czty's costs of the audit.
E. �xcept as may be required by 1aw, the City shall lceep any and a11 informatian
gained from such statements, inspections, or audits confidential and sha11 not
disclose it without Qperator's written consent other than to carry out the purposes
of this Agreement.
�E�'I'IQN 3. ��C�JRIT�' I}EPQSIT
�,. aperator shall post with tlZe City �lerk of the City a security deposit ir�the form of
cash or check in favor of the City in an amount equal �o the first two (2} months
minimum manthly guarantee ($13,316.12} to assure payment under the tenns of
this Agreement.
B. The security depasit shaIl be available unconditianally ta City far correcting any
default or breach of this t�greement by Operator. At the soie discretion af the City,
a claim may be made by the City against the security deposit in the event of one of
the following:
1. Failure on the part of Operator to make timely payment of any amount due
the City under the terms and conditians of this Agreement;
2. Any damage to or loss of Airport property caused by Operator, its officers,
employees, agents and invitees, or Operator's activities pursuant to this
Agreement;
3. Failure to pay other charges, if any;
4. Removal expenses incurred by the City if Operator does not promptiy
remove Operator's property from the Airpart after this Agreement expires
or is terminated; ar
5
5, Costs iz�curred by the City> at the time this Agreement expires or is
ternlinated if Operatar faiis to leave t11e Aizport in satisfactory condi�ion.
C. A claim made by tlle City against the security deposit shall not cure the default by
Operator. However, at the City's sole discretipz�, if the City elects ta make a claim
against the se�urity deposit, the City may, in writing, expressly waive tl�e default
by Qperator. City has no obligation to provide ilotice to Operator priar to claiming
fiznds from the deposit. Upon written notice by the City that a claim has been made
a�ainst the deposit and tlle amount of s��ch claim, Operator shall, no later than ten
(10) calendar days after notice is cieemed received by Opexator pursuant to S��tion
3�, deposit with the City the amaunt of said claim thereby fu11y funding the deposit.
D. Upon termination of tl�is Agreement, City shall ��et�.un to Operator that portion of
the security depasit z-emaining after any deductions authorized by thzs Agreement
or otherwise authorized by Iaw. Operator shall not be entitled to any interest on any
portion of the security deposil.
���'�'��l�i 9. '�'�.��5
Operator is advised that, pursuant to Revenue and TaYation Code �107.�, a possessory
interest subject to taxation may be cz•eated by the grant af this Agreement and that Operator
may be subject to the payment of property taxes levied zapon the interest. �perator shall
promptly pay before delinquency any taxes andlor special assessznents assessed against the
Premises and any improvements and/or Operator's personal praperty; and any possessory
interest tax levied by reasan of its use and/or accupancy of the Premises. Qn deznand from
the City, Operator sha11 fumish the City with satisfactory evidence of these payments.
SEC�'I4N 10. .�`sE��I��
A. Operator sha11 operate the Rental Car Concession in accardance with the highest
standards and practices of the automabile rental trade. Further, Operator
understands and acknowledges that the City's obligation to facilitate air travel of
the public at the Airpart includes efficiently operated Rental Car Concessions for
the use of air travelers and other members of the public. Consequently, and as an
additional consideration to the City for awarding this Agreement to the �perator,
Operator covenants as foilows:
1. To furnish service on a fair, reasoi�able and nondiscriminatory basis to all
users of the Airport. Operator shall furnish prompt, courteous, and efficient
service adequate to meet a11 reasonable demands for its services at the
Airport. It shall inaintain and operate the Concession in a first-class manner
and shall keep its premises in a safe, clean, orderly, and inviting condition
at all times satisfactory to the Airports Manager.
2. Operator shall maintain on the Premises an adequate number of vehicles to
meet reasonable pubiic demand. Such automobiles shall at all times be
maintained by Operator, at its own cost and expense, in good operating
order and free fram lcnown or reasonably discernible mechanical defects,
azzd shall be kept in clean, neat and attractive condition, inside and out. Aii
6
at�tomobiles offered for rent to the public s�all be maintazned in safe and
operable condition, and alI recall notices issued by automobile
�nanL�facturers relating to said autamobzles shall be honored. Operator
agrees that it will at no tinle use automobiles whose year model is more than
two (2) years older than the cun-ent year model. All vehicles of the
Operator's fleet shall be equipped with factazy or dealer-installed air
conditioning. City has the right to disapprove of any automobile sup�liec3
by Operatar that does not meet or exceed the standards cantained hereirt far
public use at the Airport. Notice of such disapproval sha1l be submitted to
Operator by the�ity in writing with the reasons therefore and Operator sha11
take immediate action ta withdraw such unsatisfactary automabiles from
service at the Airport.
3. Oper•ator's rental counters shall I�e kept apen so as to provide maximum
availability of service and adequate renfal opportunity to the travelinb
public during such hours as may be established or reestablished from tiine
to time by the �irports Manager. Hours of operation shall be ��ot iess than
t�velve(I2)hours per-day fron�the hours of 8:00 a.m.to �:00 p.m. The hours
of operation inay be z•edt�ced or modified with the przor written approval of
the Airports Manager.
4. Operator shall select and appoint a full-time rs�anager of its rental car
concession herein authorized, Such persan shall be qualified and
experienced, vested with full power and authority ta act in the name of the
Qperator l�ith respect to method; manner, and canduct of the operation c�f
Operator's rental car concession on the Airport. Such znanager or supervisor
slzall be availa6le at the Airport during regular business hours, and at aIl
times during the manager's abse�ce a duly authorized subordinate shall be
in char�e and available on the Arrport.
5. Operatar shall have the capability of providing both local rentals and
nationwide one-way rentals.
6. Operator shall be part of a nationwide computerized reservations system
ailowing rental car reservations ta be made from anywhere in the nation
through airline and travel agent computer systems.
7. Operator shall have a nationwide "$00" telephone number reservation
servzce.
8. Operator shall pravide nationwide rental car replacement ta the customer
far rental cars that develop mechanical problems.
9. All automobiles used by the Operator far the concession must have a
business logo or name placed in a consistent iocation on the windshield or
body of each automobile. Minimum Iogo size shall be two square inches in
area.
7
10. Except in case of emergency, the Operatar shall c�btain the appraval of tl�e
Airports Manager prior to any space closure �utside of normal operating
hours. �
I1. Operator shall control the conduct, demeanor and appearance af its
employees and representatives. �perator and their employees while on
duty, shall wear acceptable attize which at all times shall be maintained 'zn a
neat, orderly and clean condition. Cutoff shorts, undershirt-type shirts, or
clothing of st�ggestive nature are prohibited and shocs are required.
Employees will wear name-tags which display their name and the name of
the rental car concession or campany 1ogo. Such employees shall be trained
by Operator ta render a high degree af caurteous and efficient service and
it shall be the responsibility of the Operator to maintain close supervision
over such employees ta assure the rendering of a high standard of service ta
the public and the patrons of the rental car cancession.
12. �perator sha1l accept rnajor or natianally recagnized credit carcls.
� 13. Qperator and its employees shall abide by all reasonable rules, regulations,
polzcies, and instructions of the Airports Manager ar his designee.
SECTI(31'� I1. PA NG AN A����S
A. Emyloyee Parkin�. Operator's employees wzil be issued an annual parking permit
to use the authorized employee vehicle-parking spaces located on the Airport.
Autharization to use the parking lat is su�ject to the annual parking permit being
displayed on employees' vehicles at all tirnes. Employees of Qperator that lose or
destroy a parking permit�vill be charged a replacement fee to reissue a new parking
permit.
B. Access to Prernises. City shall provide Operator with keys to access the Premises.
Operator is responsible for the cost to replace all lost keys. �perator is responsible
for the costs assaciated with re-keying the Premises if the Airports Manager
determines that the lost or misplaced key may compromise Operator's security.
SECTI4N 12. AIRPORT FACILITIES
Nothing contained in this Agreement shall be construed as entitling Operator to the
exclusive use of any services, facilities, or property rights of any nature at the Airport,
except for the purpose and use of the Prem:ises as set forth in this Agreement .and the
Premises as described.
SECTION 13. IVIECHANIC'S LIEN
Operator shall keep the Premises free from any liens arising aut of any work performed,
materiais fumished, or obligations incurred by Operator.
8
���'"I'��?I� �4. '��AS�'�q IJ��,'I' � N�TJ�'T
�perator shall not coznmi� or staffer to be cammitted any u�aste upon the �'remises; or any
nuisance or other act or thing which may disturb the c�uiet enjoyme�lt of ai�y other occupant
of or user of the Airpart or the City's adjoining property.
�EC"�'I�� 1S. �'I'�3 GE
Qperator s1�a11 not store anythiz�g outside af the Premises without the pric�r written approval
of the Airports Manager.
S��'�'I�i1�� 3.6, �PE � �'� �ECIJ '��' ��I'�l��I�3����I�S
Operator shall completely secure Site in the Airport Terminal and Site in the Car
Wash Location cluring non-operating hotzrs. �perator shall pay any fines imposed upon
the �ity, by the Transpa�-tatian Security Administration or the Pederal �.vi�tian
.�.dministratian, far violataan of security caused by actians of Operator or its agents;
enlployees, or invitees. �perator shall pay such fine within thirty {�0) calendar days af
written notice from the City of the obligatian to pay the fine. Failure to comply wit1� the
provisions of this section is grounds f��-termination of this Agreement by the City.
�E�7['�Ql�t �'7. �2UL�S A.N GUL�.`TIC)1VS� �t}MPI.,,�AI9��E t�I�' I.,A.�VS
Operator shall, at Op�rator's sole cast arzd expense, comply with all requirements, statutes
and reguiations of aII city, county, state and federal authorities now in farce, or which may
hereafter be in force, pertaining ta Operator's use of the Premises ar its services to be
perfarmed under this Agreern.ent. Operator's use of the Premises sha11 conform to all
Airport rules and regalations and local building and fire codes.
���'TI�T�1 18. MAINT�l�Al�I�'� AiiTi� AI,'T��ATI{)i'�S
A. Operator shall, at Operator's sole cost and eYpense and at all times during the ter�n,
maintain the Premises in a safe and attractive conditian and in the same condition
as received at the beginning of the term, ordinary wear and tear excepted. Operator
sha11 do, or cause to be done withaut delay, all those things which, in the opinion
of the Airports Manager, are necessary or desirable in the interests of safety or to
mai�ztain the Premises in good repair and appearance. All datnage caused to the
Premises andJor Airport by Operator, its offzcers, employees, agents and invitees,
shall be repaired at Operator's sole expense.
B. Qperator shall not make or cause to be made any alterations or improvements to the
Premises, including modifications or aiterations af the Premises' electrical
installations or equipment,without first securing the written consent ofthe Airports
iVlanager. The Airports Manager may impose restrictions upon any proposed
alterations or improvements. All such alterations or improvements shall comply
with Airport Policy and aII applicable building, zoning and fire codes. Upon the
termination of this Agreement, at the sole option of the City: (1) The alterations or
improvements shall become the property of the City and shall remain on the
Preinises; or (2} Operator sha1l remove all alterations or improvements and return
4
the Premises to the City in substantially the same condition as the Premises ex.isted
at the commencement of this Agreemel�t.
C. City shall maintain electrical, plurzibing and HVAC systeins within the Airport
terminal faczlity in goocl conditiol� and repair. The Operator hereby expressly
waives any and all claims and holds the City harmless far danzages arising ar
resultzng fram failures or interruption of utility services furnished by tl�e City herein
includinb but not limsted to stoppabes in electrical energy, th� quantity or
temperature of water, heating or air-canditianing, or for the failure or interruption
of any public or passenger conveniences.
SE�'I'�QN 19. �2YY�I�'T '�� I1�1�P��"�'
A. The City and its authorized officers, a6ents, employees, volunteers, contractors,
subcontractors and other representatives shall l�ave the right to inspect and entez�
upon the Premises for any purpose, irtcluding, but not limited to, the following:
1. To inspeet the Premises at reasanable intervals cluring regular business
hours to deterrnine whetl�er Operator has coznplied wit1Z or is co�nplying
with the promises, terms, covenants and conditions of this Agreeznent;
2. To make repairs, additions, or alterations as may be necessar}�ar conve�lient
for the cond��ct, safety, i�nprovement, or preservation of the Airport;
3. Fox emergency purposes; and
4. In the exercise of the CiYy's paliee power.
B. Na inspection or entering on the Premises by or on behalf�of tlle �ity shall cause or
constitute a ternzinatio�l of this Agreement, or be deerned to constitute an
interference with Operator's use of the Premises.
SECTION 20. INAEMNITY
Operator shall indemnify and defend the City, its officers, officials, ernployees, agents and
volunteers, against and hold them harmless from any and all claims, Iosses, damages, civil
penalties, and liahility for damages, including attorneys' fees and other costs of defense
incurred by the �ity, whether far damage to or loss of property or injury to or death of
person(s), including properties af the City and injury to or death of the City's officers,
officiais, employees, agents and volunteers, arising out of or resulting from Operator's
possessian or use of the Prernises or activities hereunder ar froin the actions af Operator's
officers,employees,agents and invitees,unless such damage,loss,injury or death is caused
by the sole negligence or willful misconduct of the City.
SECTION 2L INSURANCE
A. Unless modified in writing by City's Risk Manager, Consultant shall maintain the
following noted insuranee during the duration of the Contract:
10
��s��r��e I�� ��r��� �tc�t��q�irec�
Commercial Ge�leral Liability X
Comprehensive Vehicte Liability X
Workers' Compensation a3�d Emplayers' Liability X
Property Insurance �
B. Ope�ator shall procure and maintain fronl an insurance cotnp�ny authorized to do
business in the State of Califoz-nia, for the duration of the Aqreement; insurarzce for
claims far injuries to persons or damages ta property whzcll tnay arise from or in
connectian with t11e �perator's operation and or use of the Premises by the
Operator, it's members, agents, representatives, emplt�yees, contractars,
subcontractors, and invitees. The cast of such insurance shall be borne by the
Operator. Insurance shall be provided as follows:
1. Insurance Services Office form nurnber CG-0001, Con�mercial General
Liability Insurance, in an amount not less than $1,000,QQ0 per occur�•ence
and $2,000,000 generai a;gregate for bodily injury, persanal injury and
property damage;
2. Insurance Serviees Office forzn number CA-0041 (Ed. l/87),
Comprehensive Aut�mobile Liability Insurance, which pravides for total
Iimits of not Iess than �I,OOQ,000 combined single limits per accident
applicable to all owned, non-o�vned and hired vehicles;
3. I�raperty insurance agait�st all risks of loss to any tenant improvements,
betterments, and contents at full replacement value. The property insurance
policy shall contain the insurer`s wazver of subrogatzon in favor of City, its
elected officials, officers, employees, agents and volunteers;
a Operator agrees that in the event of any Ioss or partial or camplete
destruction of those tenant improveznents, betterments, and
contents, any praceeds of insurance received by Operator shall be
utilized in the replaceme�it, reconstruction, or repair of the damage
or destroyed improvements, betterments, and contents.
4. Statutory Workers' Campensation required by the Labor Code of the State
of California and Employers'Liability Insurance in an amount not less than
$1,Q00,000 per accurrence. Both the Warkers' Compensation and
Employers' Liability policies shall contain the insurer's waiver of
subrogation in favor of City,its elected officials,officers,employees,agents
and voiunteers;
5. Any deductibies or self-insured retentions ml�st be declared to and
approved by City. At the option of the City, either the insurer shall reduce
or eliminate such deductibles or self-insured retentions as respects the City,
its elected officials, officers, employees, agents and volunteers, or the
ii
Operator shall procure a bond guaranteeing payrnent of Iosses and related
investigations, claims �dministration and defenss expenses.
C. The General Liability sha11 contain or be endorsed to co�ltain the following
provisions:
1. City, its elected offi�ials, officers, employees, agents and volunteers are to
be covered as additional insured. Such endorseme�lt shall include liability
arising o�zt af or in connection with Operator's operations,preznises ow�ned,
occupied, or used by �perator. The coverage sha11 contazn no sp�cial
1i�nitatioa�s c�n the scope of protection afforded to the eity, its elected
officials, officers, employees, agents and volunteers.
2. The insurance coverage of Operator shali be primary insurance as respects
City, its elected officials, officers, employees, agents a�id volunteers. Any
insurance or self-insurance maintained by Czty,its elected offieials,officers;
employees,agents and volunteers,shall be in excess af Operator's insurance
and slZall not contribute with it.
3. Coverage shall state that the insurance of Operator shall apply separately to
each insured against whom claim is made or suit is brought, except with
respect to the limits af the insurer's Iiability.
4. Eac1�insura�3ce policy required by this A�ree�nent shall be endorsed to state
that caverage shail not be canceled except after thirty (30) calendar days'
prior written notice has been given to City. In addition, Operator agrees that
it shall not reduce its caverage ar limits on any such policy except after
thirty (30} calendar da_ys' prior written notice has been given to City
B. Insurance is to be pl�ced with insurers with a current A.Iv1. Best's rating of no Iess
than A-VII.
C. Operatar shall designate the City of Redding as a Certificate Holder of the
insurance. 4perator shall furnish City with certificates of insurance and original
endarsements affecting the coverages required by this Section, Certificates and
endorsements sha1l be furnished ta: Risk Management Department, City of
Redding, 777 Cypress Avenue, Redding, CA 96001. The certificates and
endorsements for each insurance palicy are to be signed by a person authorized by
the insurer ta bind coverage on its behalf. Ali endorsements are to be received and
approved by the City's Risk Manager prior to commencement of this Agreement.
D. The requirements as to the types and limits of insurance coverage to be maintained
by Operator as required by this Agreement, and any approval of said insurance by
City, are not intended to and will not in any manner Iimif or quaiify the liabilities
and obligations otherwise assumed by Operator pursuant to this Agreement,
including, without limitatian, provisions concerning indemnification.
E. If any policy af insurance required by this Section is a "claims made" policy,
pursuant to Code of Civil Procedure § 342 and Government Code § 945.6,Operator
shall keep said insurance in effect far a periad of ei�hteen (18} months after the
termination of this Contract.
12
F. If any damage, includiz2ff death, persanal injury oz- property c�amabe, occurs in
connection with the perforznazlce of this �ontract; Qperatcr sha11 zmmediately
notify City's Risk IVlanaber by telephone at{530} 22s-406�. No later than three (3)
calendar days after the event, �onsultant sha11 submit a vvritten report to City's Risk
Ivlanager containing the followinb information, as applicable: 1) name and address
of injured or deceas�,d person(s}; 2} name and adclress of witnesses; 3} name and
address of Consultant's insura��ce company; and 4) a detailed description of the
dama;e and whether any City property was involved.
SE�"I'I�i"�t 22. I�t�.�r� C�LT� �.'I'E ��,5
A. Hazardaus substances or materials include, but are not limitec�to:
1. Substances which are flammable, explosive, corrosive, radi�active, toxic;
2. Azly materiat az� substances defined as hazardous substances, hazardous
materials, taxic substances, oi- hazarctotzs v�astes in the Comprehensive
Environmental Response, Compensation and Liability Act of 19�0 {42
U.S.C. Sections 9601, et seq.), the Resoiarce Conservation and Recovery
Act (42 U.S.C. Sectians 69f�1, et seq.), the Hazardous Waste Control Act
(California Health & Safety Code Sections 25100, et seq.) the Hazardous
Substance Accc�unt Act (�alifarnia Health & Safety Code Sections 253�0,
et seq.}, California Health and Safety Cade Section 25280, et sec�.,
Hazardous Materials Release Response Plans and Inventory ar the
California Porter-Cologne Water Quality Control Act, (Water �ode
Sectians 130Q0, et seq.), and aII amendments to t��ese Ia��s and regulations
adopted or publicatians promulgated pursuant to these laws;
3. Those asbestos-containing materials def ned and described in
Environmental Protection Agency Report No. Sb/5-85-024 (June 198�)
� whether or nat friable, or any related or successor report,or other applicable
government regulations defined or describing such materials;
4. Pesticides as defined by Section 136(u)of FIFRA(7 U.S.C. Section 136)as
may be present in soil or graundwater;
5. "Hazardous wastes" as defined in Section 25117 of the Califarnia Health
and Safety Code, or as a chemical that is known to the State af California
"to cause cancer or reproductive toxicity" under the Safe Drinking Waster
and Ta�ic Enfarcement Action of 1986, California Heaith and Safety Code
Sections 25249.5, et seq.; and
6. Hazardous materials, substances or waste, or toxic materiais, substances or
waste as those terms or simzlar terms are defined by any other federal, state
or local law or regulation or orders.
B. Operator agrees to indemnify, protect, hold harmless, and defend City, its elected
officiais, officers, employees, agents and valunteers from and against any and all
liability, including withaut lirr�itation, (1) all foreseeabla and unforeseeable
13
eonsequential damages, directlV or indirectly arisizlg from the use generation,
siorage, or disposal o�hazardous mat�rials by �perator, and (2) tlae cost of any
required or l�ecessary repair, cleZnup or detoxificatian and the preparation of any
clasure or other �-equired plans, tc� t12e fu11 extend that such liabzlity is attributable,
r�zrectly or indirectly, to the presence of use, generation, storage,release,threatened
release, or disposal of hazardous materials by Operator, its officers, employees,
agents and/�r invitees on tl�e Preznises or Airport after the beginning of�the term of
this Agreement.
C. Operator hereby releases City fram any and a11 claims Operator lnay have against
City of tivl�atever kind Qr nature resulting from or in any way connected with the
environmental condition of the Premises, including any and all claims Operator
may have against City under the �oinprehensive Environmental Response,
Cat7lpensation, and Liability Act of 1980, as amended ("CERCLA"}, or any other
�ederal; state, or locai 1aw, whether statutory or common law, ardinance, or
reguiation pertaining ta the release of hazardous materials into the environz�iental
from or at the Preznises. �perator expressly waives tl�e benefits of Civil Code
�ectian 1542, which pravides as follows:
A general release does not extend to claims whicl�z the creditor does not know or
e�pect to exist iz1 his favor at the time of executing the release, which if known by
him must have rnaterially affected his settlement with the debtor.
SE��'I�I'��3. I+EI�E L UI EI�'I'�5
To coznply with Federal Aviation Administration xequirements, Licensee and its officers,
administratars, representatives, successors and assigns, as part of the consideration hereof,
do hereby covenant and agree:
A. GENER��.L CIVIL RIGHTS PROVISIONS: The ("Licensee") agrees to comply
with pertinent statutes, Executive Orders and sucl� rules as are promulgated to
ensure that no person shall, an the �rounds of race, creed, calor, national origin,
sex, age, or disabzlity be excluded from participating in any activity conducted with
or benefiting from Federal assistance. If the ("Licensee") transfers its obligation to
another, the transferee is abligated in the same manner as the ("Licensor").
This provision obligates the ("Licensee") far tl�e periad during which the property
is awned, used or possessed by the ("Licensee") and the airpart remains obligated
to the Federal Aviation Administration. This provision is in addition to that
required by Title VI of the Civil Rights Act of 1964.
B. CIVIL RIGHTS — TITLE VI ASSURANCE: Title VI of the Civil Rights Act of
1964,as amended, (Titie VI)prohibits discrimination on the grounds of race,color,
or national origin under any program or activity receiving Federal financial
asszstance. Sponsors must include apprapriate clauses from the Standard DOT Title
VI Assurances in all contracts and solicitatians.
C. SOLICITATION CLAUSE: The City of Redding, in accordance with the
provisions of Title VI of the Civii Rights Act of 1964 (78 Stat. 252, 42 USC §§
14
2000d to 2000d-�) and the Re�z�Iations, hereby notifies all bidders ar offerars that
it wzll affirmatively ensa�re that any contract entered into pursuant to this
advertisement, disad��antaged business enterprises wi11 be afforded fu11 and Fair
opportunity to submit bids in response to this invitation and will not be
c�iscriminated against on the giou��ds of race, eolor, ar natianal origin in
consideration for an award.
II�. CLAUSE — CQNTR�.CTS: During the perfonnance of this contract, the
Contractor, for itself, its assignees, and successors in interest {hereinafter r�ferred
to as the "Contractar"), abrees as follows:
l. C'a ��i�r�c� av�ti� I��gulat�o�s: The Contractor (hereinafter includes
consultaz�ts) will comply with the Title VI List of Pertinent
Nozzdiscrimination Acts and Authorities,as they may be amended from time
to tirne, which are herein incorporated by reference and made a part of this
contract.
2. I�onclisc�-i i��ta�n: The Contzactor, with regard ta the work pez•formecl by
it during the eantraet, wiI1 not discrzminate on the groz�nds af race,color, or
national origin in the selection and retention af subcontractors, including
procurements of materials and leases of equipment. The Contractor will not
partieipate directly ar indirectly in the discrimination prohibited by the
Nondisez�imination Acts and Au�horities, including employment practiees
when the contract cavers any activity, project, or pro�;ram set forth in
Appendix B of 49 CFR part 21.
3. Sal�citations far �5ubc�ntrac�s, including Pracua�em�nts of lYlateriats
�nd Equ�p �mt: In a11 salicitations; either by campetitive bidding or
negotiation made by the Contractor for work to be perforined under a
subcontract, including procureznents af znaterials, or leases of equipment,
each potential subcontractor or supplier wi11 be notified by the Cantractor
of the contractor's obligations under this contract and the
Nondiscrimination Acts and A�thorities on the grounds of race, color, ar
national origin.
4. Information and Reports: The Cantractor will provide all information and
reports required by the Acts,the Regulatians,artd directives issued pursuant
thereto and will permit access to its books, records, accounts, other sources
af information, and its facilities as may be determined by the sponsor or the
Federal Aviation Administration to be pertinent to ascertain compliance
witlz such Nondiscrimination Acts and Authorities and instructions. Where
any information required of a contractor is in the exclusive possession of
another who fails ar refuses to furnish the informatian, the Contractor will
so certify to the sponsor or the Federal Aviation Administration, as
appropriate, and will set forth what efforts it has made to obtain the
information.
5. Sanctions for Nancomplianee: In the event of a �ontractar's
noncampliance with the non-discrimination provisians of this contract, the
rs
sponsor will impose such contract sanctions as it or the Federal Aviation
Administxati�n may determine to be appropria�e, includinb, but z�ot limited
t0:
a. Withholding pay�nents to the Coi�tractar under the contract until
the Contractor complies; and/or
b. Cancellin�,termin��ing, or suspending a contract, in whole or in
part.
E. INCORPORATION OF PROVISION�: The Contractor wiil inciude the
provisions af paragraphs one thro�gh six in evez�y subcontract, including
procurements of materials and Ieases of equipment, unless exempt by the Acts, the
Regulations, and directives issiied pursuant tllereto. The�ontract�r will take action
with respect to any subcontract or pracurement as the spansor ox the Pederal
Aviation Administration may direct as a means of enforcing such provisions
including sanctions for noneompliance. Provided, that if the Contractor becomes
involved in, or is threatened wit11 litibatian by a subcontractor, or supplier becatise
of such directian,the�ontractor may request the sponsor to enter into any litigation
to protect the interests of the sponsor. In addition, the Contractor may reqt�est the
United States to enter into the litigation to protect the intea�ests of the United States.
F. CLAUSES FQR DEEDS TRANSFERRIN(r UNITED STATES PR�PERTY:
NOW, T�IEIZEFORE, the Federal Aviation Administration as authorized by law
and upon the candition that the City of Redding wili accept title to the lands and
maintain the project constructed thereon in accordance with Executive Qrder 9689,
far the Surplus Property Act of 1944,and the policies and procedures preseribed by
the Federal Aviation Administration of the U.S. Department of Transportation in
accordance and in compliance with alI requiremer�ts imposed by Title 49, Code of
Federal Reguiations, U.S. Department of Transpartatian, Subtitle A, Office of the
Secretary, Part 21, Non-discrimination in Federally-assisted programs of the U.S.
Department of Transportation pertaining to and effectuating the provisions of Title
VI of tlie Civil Rights Act of 1964{78 Stat. 252;42 USC § 2000d to 2000d-4},does
hereby remise, release, quitclaim and convey unto the City of Redding all the right,
titie and interest of the U.S. Department af TransportationlFederal Aviation
Adminisiration in and to said lands described in the RFP 5209 Proposal Guarantee
Form and made a part hereof.
HABENDUM CLAUSE: TO HAVE AND TC) HOLD said lands and
interests therein City of Redding' and its successors forever, subject,
however, to the covenants, conditions, restrictions and reservations herein
contained as follaws, which will remain in effect for the period during
which the real property or structures are used for a purpose for which
Federal financial assistance is extended or for another purpose involving the
pi•ovision of similar services or benefits and will be binding on the City of
Redding, its successors and assigns.
The City of Redding, in consideration of the canveyance of said lands and
interests in lands, does hereby covenant and agree as a covenant z�unning
16
with the land for itself, its successors and assibns, that �1}no pez-son will on
tl�e grounds of race, colaz�, ar national origin, be excluded fi�om participa�ion
in, be denied the benefits of, or be otherwise subjected to discrimination
with r�gard to any facility Iocated whally ar i�l part on, ov�r, ar under such
lands hereby conveyed, (2) that the City of Redding ��✓i11 �se the lands and
interes�s in lands and intea�ests in Iands so conveyeci, in compliance with all
requi�-ements iznpased by or pursuant to Tit1e 49, �ode of Federal
Re,�ulations, U.S. Depart�nent of Transportation, Subtztle A, �Jf�ce of the
Secr�tary, Part 21, Non-discrimination in Federally-assisted programs of
the U.S. D�partment of�'ranspartation, �ffeetuation af Title�I of the �ivi]
Rights Act af 1964, and as said Regulations and Acts may be amended, and
(3) that in the event o#� breach of any of the above-mentioned
nondiscrimination conditions; the Department wi11 have a right ta enter or
re-enter said lands and faciizties on said 1and, and that above described Iand
and facilities will thereon revert ta and vest in ancl become the absolute
property of the �`eder�l Aviation Administration and its asszgns as such
interest existed prior to this instruction.
G. CLAUSES FQR TRANSFER flF REAL PROPERTY ACQUIRED OR
IMPRO�EU UNDER THE AIRPORT IMPROVE�ENT PROCJRAM:
1. The Licensee for himself/herself, his/her heirs, personal representa�ives,
st�ecessors in interest, and asszgns, as a part af the consideration hereof,does
hereby covenant and agree as a covenant running with the land that:
2. In the event facilities are constructed; maintained; or otllerwise operated an the
property described in this lieer�se for a purpose for which a Federa� �lviation
Administration activity, facility, or program is extended or for another pt�rpose
involving the provision of similar services or benefits,the licensee wi11 maintain
and operate such facilities and services in compliance with all requirements
imposed by the Nondiscrimination Acts and Regulations listed in the Pertinent
List of Nondiscrimination Authorities(as may be amended) such that no persan
on the grounds of race, color, or nationai arigin, wiil be excluded from
participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities.
3. With respect to licenses, Ieases, permits, etc., in the event of breach of any of
the above Nondiscrimination covenants, City of Redding will have the right to
terminate the license and to enter, re-enter, and repossess said lands and
facilities thereon, and hold the same as if the license had never been made or
issued.
a. With respect to a deed, in the event of breach of any of the above
Nondiscrimination covenants, the City of Redding will have the right to
enter or re-enter the lands and faciiities thereon, and the abave described
Iands and facilities will there upon revert to and vest in and become the
absolute property of the City of Redding and its assigns.
17
H. CLAUSES FOR C�NSTIZUCTIQN/USE/�CCESS T� R�AL PR�PERTY
A�QLIIRED UNDER T�IE ACTIVITY, FACILI�'Y OR PR�G1�i1�: �'he
following clauses will be included in deeds, l�icenses; permits, or simil�r
instruments/agreements entered i�to by City of Redding pursuant to the provisions
of the Airport Ixnpravement Program grant assurances.
1. The licensee far himself/herself, his/I�er hezrs, personal representatives,
successars iz�interest, and asszgns, as a part af the consideration hez�eof,does
hereby covenant and agree as a covenant z�unr�itzg wzth t1�e Iand that (1} no
person on the ground of race,color,ar natianal origin,will be e�cluded from
participation in, denied the benefits of, ar be otherwise subjected to
discrimination in the use af said facilities, (2}that in the canstruction of any
impravements on, aver, or under such land, and the furnishing of services
thereon, no person on the ground of r�ce, color, or national origin, will be
excluded from participation in, denied the benefits of, or otherwise be
subjected to disc�iminatian, (3) that the licensee wili use tlze premises in
compliance witla all other requirements imposed by or pursuant to the List
of discrimination Acts �nd Authorities.
2. With respect ta licenses, in the event of breach of any of the above
nondiscrimination covenants, City of Redding will have the ri�ht to
terminate the license and to enter or re-enter and repossess said land and the
facilities thereon, and IZald the sarne as if said license had never been made
ar issued.
3. With respect to deeds, zn the event af breach of any of the above
nondiscrimination covenants, City of Redding will there upon revert to and
vest in and become the absolute property of City of Redding and its assigns.
I. TITLE VI LIST OF PERTINENT NONDISCRIMINATION ACTS AND
AUTHORITIES: During the performance of this contract,the Contractor, far itself,
its assignees, and successors in interes�(hereinafter referred to as the "Contractor"}
agrees to comply with the following non-discrimination statutes and authorities;
including but not limited to:
• Title VI of the Civil Rights Act af 1964 (42 USC � 2000d et seq,, 78 stat.
252) (prohibits discrimination on the basis of race, color, z�ational origin};
• 49 CFR part 21 (Non-discrimination in Federally-assistec2 programs of the
Department of Transportation--Effectuation of Title VI of the Civil Rights
Act of 1964)>
• The Unifozm Relocation Assistance and Real Property Acquisitian Policies
Act of 1970, (42 USC § 4601} {prohibits unfair treatment of persons
displaced or whose property has been acquired because of Federai or
Federai-aid programs and prajects);
• Sectian 504 of the Rehabilitation Act af 19'73 (29 USC § 794 et seq.), as
amended (larohibits discrimination on the basis af disability}; and 49 CFR
part 27;
* The Age Discriminatian Act of 1975, as amended (42 USC § 6101 et seq.)
(prohibits discrimination on the basis of age);
18
� Airport and �irway Improvenaent �ct af 19�2 (49 USC § 471, Section
47123}, as amended {prohibits discrimination baseci os� race, creed, color,
national origin, or se�);
� The �ivil Rights Restoratian Act af 1987 {PL 100-20�) (broadened the
scope, coverage and applicability of Title VI af the Civil Ri�hts Act of 1964,
the Age Discrimination Act of 1975 and Section �04 of the Rehabilitation
Act of 1973, by ex�anding the definitian of the ter�ns "probrams ar
activities" to include all of the programs or activities of the Federal-aid
recipients, sub-recipients and cozztractoz-s, �vhether sueh pr�grams or
activities ar� Federally funded ar not);
» Titles II and III of t1�e Americazls ���ith Dis�bilities Act of' 1990. which
prohibit discrimir�ation on the basis of disability in the o�eration of public
entities, public and private tra�lsportation systems, places af public
accomznodation, and certai.n testing entities (42 USC ��S 12131 — 121�9) as
implemented by U.S. Department of Transportation t�egulations at 49 CFR
parts 37 and 38;
� The Federal �lviation Adminzstration's Nond�iscrimination statute (�9 US�
§ 47123} (prol�ibits discrimination on the basis of race, eolor, national
origin, and sex};
� Executive Order 1289�, Federal Actiosas to Address Environmental Jt�stice
in Minority Populations and Lo�v-Income Populations; which ensures
nondiscrimination against minority populations by discouraging programs,
policies, and activities with disproportionately high and adverse human
health or enviranmental effects on minority and la���-ineome populations;
� Executive Orde�� 13166, Improving Access to Services for �ersans with
Liznited English Proficiency, and resultin�agency guidance,natio�al origin
discrimination includes diseriminatian because of Iimited En�lish
proficiency (LEP). To ensure compliance with Title VI, you must talce
reasonable steps to ensure that LEP persons have meaningful access to yaur
programs (70 Fed. Reg. at 74087 ta 74I00};
� Title IX of the Education Amendments of 1972, as amended, which
prohibits you fram discriminating because of sex in education programs or
activities (20 USC 1681 et seq},
SEC"I'IQN 24. ASSIG1�ilVIEN'�'
Operator shall not voluntarily assign or encumber its interest in this Agreement or in the
Premises, or allow any other persan or entity (except its authorized representatives) to
occupy or use any or all part(s) of the Premises, without first obtaining the City's prior
written consent. Said consent sha1l not unreasonably be withheld. Any assignrnent or
encumbrar�ce without the City's consent shall be voidable and, at the sole election of the
City, shail constitute a default of this Agreement. No consent to any assignment or
encumbxance shail canstitute a further waiver of the provisions of this section.
SECTI£}N 25. YN'�IQLUNTAk2Y ASSIGNMElYT
A. Na interest of Operatar in this Agreement shall be assignable by operation of la-w.
Each of the following acts shali be considered an involuntary assignment:
19
l. If Operator is or beconles bankrupt (whether valuntaty or involuntary) or
�zlsolvent, makes an �ssignment far the benefit of creditars, or instit�tes a
proceedinb under the Bankruptcy Act in which Operator is the baz�krupt; or,
if Operator is a partnership or consists of mare than one peason or entity, if
any partz�er of the partnership, or other person or entity, is or becomes
bankrupt (�vhether voluntary or involuntazy) or insolver��, or makes an
assignment for the benefit of creditors;
2. If a writ of attachment or execution is levied on this Agreem�zit;
3. If, in any praceeding or action ta which Operator is a party, a receiver is
appointed with authority to take possession of the Premises; ar
4. The abandoninent or discontinuance of any operation at the Airport by
Operator, ar the failure to conduct any service, operation or activity
perrnitted by this �greement. If tllis condition exists for a pez�iod of seven
(7} consecutive calendar days without the prior written consent of the City,
it wi1l constitute an abandonment of tlle 1and, faciiity or location, a��d this
Agreement and the �ernzit shall became null and void.
B. An involuntary assigmnent shall constitute a default by Operatar, and the City shall
have the right to elect�o terminate this Agreement. In no event shall this Agreement
be deemed ar treated as ag� asset of O��erator.
���'I'�i�l�t 26. E�'AtJI,�'
A. The occurrence of any of the followzng shail canstitute a material breach oz�default
af this Agree�nent by Operator:
1. Failure to pay any payment due under this �lgreement when due, if the
failure to pay continues for seven(7)calendar days after notice of the failure
has been given to Operator;
2. Failure of the Operator to operate the business authorized in this Agreement.
3. Cessation ar deteriaration 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.
4. Failure to maintain current licenses, if any, required for the permitted
. _ _
operat�on.
5. Intentionally supplying the City with false or misleading information or
misrepresenting any material fact on dacuments or in statements to or before
the City and its employees, or the intentionai failure to make full disclasure
on a financial statement, statement of gross sales, or other required docu-
rnents.
?p
6. Failure to perform any other provision of this Agreement if th� fail�re to
perform is not cured within thirty (34} calendar days after notice c�f the
failure h�s been given to Qperator. If the breacll or de�ault cannot be
reasanably cured within thirty {30) calea�dar days, fJperator shall not be in
breach or defatalt of this Agreement if �peratop• commences to cure the
breach or default tivithin the t�zirty (30) calendar day period and diligently
and in good Faith con�in��es to eur� the defati�lt.
B. Notices �iven under this seetzon s1ia11 specify t�ie all�ged breach or default, and
shall dernaz�d that �perator perform the provisioz�s o�this Agreement or pay the
payment that is in arrears, as the case may be, within the appiicable time periad, or
this Agreement is tez-minated. No such natice shall be deemed a forfeiture or a
termination of this A.greement or a revocation of the Permit unless the City so elects
an the notice.
C. The City, at any time�fter Qperator commits a breach or default of this Agreement,
can cure the breach or default at Operator's cast. If the City, at any time, by reason
of Operator's breach or default; pays any sum ar does any act t1�at requires the
payment af any sum, the sum paid by the City sha11 be due immediately from
Operator to the City at the tin�e the sum is paid; and if paid at a later date shali be
subject to late fees and penalty charges as shown in the City's then current Sehedule
of Fees and Charges. The sum, together with the late fees or penalty charges, shall
be an additional payment owed to the City pursuant to this Agreement.
�E�T'�t�I�127. CI"�"I"S E IES �'(3��E�'�1.�JJI�T
A. Upon the occurrence of a default that is not timely cured by Operator,the City may
terminate this Agreement and Operator shail immediately surrender the Premises
to the City. On termination af this Agreement, the City may recover fram Operator
alI of the following:
1. The worth af any unpaid fees that had been earned at the time of the
termination, ta be computed by aliowing znterest at the maximum amount
of interest permitted by law;
2. Any other amount necessary to compensate the City for all the detriment
proximately caused by �perator's failure to perform obligations under this
Agreement, including advertising expenses, expenses of remodeling the
Premises for a new Operator (whether for the same or a different use), and
any special concessions made ta obtain a new Operator; and
3. Any ather amounts, in addition to or in lieu of those listed above, that may
be permitted by applicable law.
B. City reserves the right, during the full term of the Agreement, ta use the succession
of proposers in the event an Operatar is found in default or breach of th�s Agreement
and this Agreernent is terminated.
21
��+�'�'I I�2�. SL1 ��� �3I+ �' ��ES
On the expiration, cancellation or termina�zon of this Agreement, Operato�� sha11 surrend�r
the Premises to the City and deliver a11 keys to any Iocks oz� tl�e Premises. Licensee sha11
reiYnbuise the City for any clamage done to the Preanises caused by Operator's use of the
Premises or Operatar's actions or omissic�n�.
S��'I'IC�I�I 29. i�t7�,TT�'�'���2 AS��S'�'AI���
Under no circumstances will Operator use City employees wharn are on duty to perform
work at tlze Premises.Under no cii-cumstances will Operator use City employees whom are
off duty to perform work at the Premises if the nature of the �vork is substantiaily similar
to the employee's regular work duties for the City.
�E�'�'I�N 3Q. SI�I��, �.T��EIt���'�,A��
Operator is required to provide a business "logo" type sign at its corresponding terminal
cot�nter location and appropriate signa�e for their ready-car parking spaces. The size and
location af signs, banners, flags, etc., Iocated on the Premises or at the Airport shall be
subject to tlle prior written approval and cantrol af the Aizports Manager. The size and
location of all signs, banners and flags located off the Airport advertising the activities of
Operator shall be subject to the City's sign ordinance {Redding Municipal Code Chapter
18.42).
SE��'I+(}I�31. I�I()'�"I�ES
Any notices required to be given under this Agreement shall be in writing and shail be
deemed properly delivered, given or served when personally delivered to the City or
Operator, or in lieu of such personal service, sent by United States mail; registered or
certified, rett�rn receipt requested, addressed as follows:
Tt� CITY: TO OPERATC�R:
City of Redding Municipal Airport Avis Budget Car Rental, LLC
Attn.: Aizports Manager Attn.: Anne D. Morrison, Vice President
6751 Woodrum Circle, #200 6 Sylvan Way
Redding, Califoznia 96002 Parsippany,New Jersey 07054
In the event of personal service, notice shaii be deemed given when personally served. In
the event of service by mail, notice shall be deemed to have been given seventy-two (72)
haurs after deposit of same in the United States mail past box, postage prepaid, addressed
as set forth above, or upon the date of the signed return receipt,whichever is sooner.Ezther
party may change zts address for the purposes of this section by giving written notice of
such change to the ather party in the manner pravided in this section.
SECTION 32. ADlY1INISTRATION BY CITIT
22
Whenever �pez-atoz- is required to secure the approval or consent of the �i�y pursuant to
this Agreement, the City sha11 �near� t�e �.izports Manaber. When the Nlayor is signatory
to this Agree�nent, the t�.irparts N1ana,�er s1�all have authority to ex�cute any amendment
ta this Agreement whicll does �-zot increase the amount of campensation allowable to
Operator, or otherwise substantially change the nature ar scope of the services provided
hereiz�.
SE�'�� I�133. � �d'�' �"T II�I`�� �'I'A'TI�}�Al� VE�L1�
A. This Agreement shall be deen�ed to ha�e been entered into in Redding, California.
All questions regarding t11e validity, inte�pretation or perform�nee of any of its
terms or of any rights or obligations of the parties to tl�is Agreement shall be
gaver�led by California 1aw, and any action brought by either party to enforce any
of the terms af this Agreement shall be filed in the Shasta County St�perior Court.
�. This document; including aII exhibits, contains the entire agreement between the
parties and supersedes whatever oral or written understanding each nlay have had
prior ta the execution of thzs Agz�eement. This Agreement sha11 not be altered,
amended c�r modified except by a writing signed by City and Operator. No verbal
agreement or convez�satian with any officiai, officer, agent or employee of City,
either before, during ar after the execution of this Agreement, sha11 aFfect or modify
any of the terms or conditions eontained in this Agreement.
C. No covenant o�� condztio�� to be perfarmed t�y Operatar under this Acreement can
be waived e�cept by the written consent of City. Forbearance or induigence by City
in any regard whatsoever shall not constitute a�vaiver of the covenant or condition
in question. Untii perfarmance by Qperator of said covenant or conditian is
complete, City sha11 be entitled to invoke any remedy available to City under this
Agreement or by law or in equity despite said forbearan�e ar indulgence.
D. If any portian of this Agreement or t�ie applicatzon thereof to any person or
circumstance shall be invalid or unenforceable to any extent, the remainder of this
Agreement shall not be affected thereby and shall be enforced to the greatest extent
permitted by Iaw.
E. The headings in this Agreement are inserted for convenience only and shall not
constitute a part hereof_
F. Each party to this Agreement declares and represents that in entering into this
Agreement, it has relied and is relying solely upon its awn judgment, belief and
knowledge af the nature, extent,effect and consequence relating thereto. Each party
further declares and represents that this Agreement is made without reliance upon
any statement or representation not contained herein af any ather party or any
representative, agent or attorney of the ather party. The parties agree that they are
aware that they have the right to be advised by counsel with respect to the
negotiations, terms, and conditions of this Agreement and tl�at the decision of
whether or not to seek the advice of counsel with respect to this Agreement is a
decision wl�ich is the sale responsibility of each of the partzes. Accordingly, no
party shali be deemed to have been the drafter hereof, and the principle of law set
23
forth in Civil Code § 1654 that �ontracts �re coz�s�rued against t�e dz�after sha11 not
apply.
���"I'� I�t 34. A,TT(3 �I"� F'��S
In ��y dispute between t11e City and Operatar, whether or not resu(ting in litigation, the
prevailina party shall be entitlecl to recover fi-om the other parky aIl reasonable costs,
including without limitation, reasonable attorney's fees. "Prevailing party" shall inchlde
without limitation; a party�vho dismisses an action far specific perfonnance or Cor damaffes
zn exchange for sums allegedly dt�e, performance for covenants allege�ly breached or
consideration substantially ec�ual to the relief sotzght in the action, or which receives from
tl�e ather party, i�z connection with any dispute; perfozmance substantially equivalent to
any af these.
5���'�(}�i 35. ��J�' C� '�"�' �' �t�I�'�' ��'
Each of the undersigned signatories hereby represents and tiv�rrants that they are authorized
to execute this Agreemezit an behalf of the respective parties to this Agreement, that they
have fu11 right, power and lawful authority to undertake a11 obliga�ions as provided in this
Agreement; and that the execution, perfozmance and delivery of this Agreeznent by said
signataries has been fially authorized by all requisite actions an the part of the respective
parties to this Agreement.
S�C'�'I(�I� 36. �iJI2���r�I.
The provisions af Sections 8, 9, 20, 21, 22, 23, 27, 28, 33, and 34 of this Rental Car
Concession Agreement and Permit for Commercial Activities shall survive termination of
the Rental Car Concession Agreement.
S��TI0�+137. A��I'f�►RT �C}NCESSI�liT I�ISAI}�Al>17CA�E BUSIN�SS
�I°�TE SE PI20G M (ACDBE}
A. This Agreement is subject ta the requirements of the U.S. Department of
Transportation's regulations, 49 CFR, Part 23 related ta the airport concession
disadvantaged business enterprise (ACDBE) pragram. The Lessee agrees that it
wili not discriminate against any business awner because af the owner's race,color,
national origin or sex in cannection with the award or performance of any
concession agreement, management contract, or subcontract, purchase ar iease, or
ather agreement cavered by 49 C�'R Part 23. Lessee agrees to include the ahove
statements in any subsequent concessian agreement or contract covered by 49 CFR
Part 23, that it enters for operations at the Airport and cause those businesses ta
similarly inelude the statement in further agreements, but ail such subsequent
agreements shali be subject to the provisions of ARTICLE XV hereof.
B. Lessee is/is not an Airport Concession Disadvantaged Business Enterprise as
defined in 49 CFR Part 23, Section 23.89. In the event Lessee does nat or no longer
qualifies as an ACDBE pursuant to federal law and the City/Airport Company's
certification program,Lessee agrees that it will make a gaad faith effart to purchase
services, goods or products from ACDBEs which will equal or exceed the
24
City/Airport's designated Airport CoY�cessions Disadv�ntaged �usiness Enterprise
�rogram �oal for airpoz-t concessions far each year of t�ze a�reement.
C. Each year Lessee sha11 provide ta the City,no Iater than February Ist; the followina
annual ACDBE information: total gross revenue of the Lessee's business
operations at the airport foa• th� last Federal Fiscal Year ( October 1 to September
30), the name and address of each non-A�DBE and each certified ACDBE with
which it has done business during the past federal fiscal year, a description of the
nature of the services perfazmed by and/or items purchased from each business,
business eontact,ACDBE certification number(if applicable), �nd t�1e total alnount
spent with each business.
25
S��`�'I(3�t 3�< ��'� �I� �� �ii��I°��'
The date af this Agreement shall be the date it is signecl by City.
�I�d�l�'Ti`�ESS� E C�F, City and Consultani nave executed this Contract on the days and year
set forth belaw:
�I��'��' l� I1�1�,
A ����csr�ti�a�
� �� ` � �
� � � ._.
atec�s
� � , 2�21 °�,, � m'��'�``" �°�
I�y: E I�. ����2, i���y�r
A.'T'I'E��': A,�'�I�C)��I3 �� �'t� �'�� :
�1�, �' E. T��'�A.I�`�'
�i�g� A��€�rrr�y
���p� � �� *'
�� �
��
PA.l�I .�. I�E, �ity � rk I�y:
OPE T(��Z
�_...,
Dated• , 202� � `�'�� �
By: A1�NE D.MORRISt�N,Viee P �sidenf
Tax ID Na: 06-0918165
Attac�ment:
Exhibit A—Monthly Certi�ed Activity Report
26
1�'I'A�., �'�� �(?1���S�I€��
(��T�I,�' �'���'��'I�� A��'IV�"�"�F��P'€��`�'
� � I'I' A.
Qperator z�ame:
t�ctivity period: tt� 202
Total car rental transactions for reportinbnzonth:
Tota1 gross receipts for reporting period: $
� x % _ �
Monthly gross receipts percentage percentage of gross recei�ts
Minimum monthly guarantee: $
PAY THE MINIMUNS MONTI-�LY GUAR�NTEE OR THE PERCENTAGE OF GROSS RECEIPTS,WHICHEVER IS
GREATER.
Due on 20th of each month: $
I hereby certify that the above is a true statement from the records of:
Business:
Preparer's signature:
Print Name and Title:
Date prepared:
� �i� t��g�� r���
C}verall Sta#us: APPROVED
l�'•.)
INFO CONTRACT NUMBER PROJECT NUMBER PROJECT NAME DEPARTMENT NAME PROJECT STATUS
,� �% Car Rental Service 821 Airport 821 Airport 821 .�-Pr,r �, _
Required Policies^
E�chOccu;rance: $2,600,000
Genera�Liability o�iov2oz,—o�ioirzoza
Fue Oamage Iany one are)r S
Pollcy G19007603t90 Pded.exp lac9 one Personp $
Manual Entry ��surer.eo�r�e��a�casuairveom�a"v �e�sooavad�i���,ryr y „"'�,��v`��'
6=_n¢ryl(nggregaie): E25,000,000
Pw;ucl,-mmp�cpAgg: $
Automobile LiBbility o�iav�o��—o�rovzozz com��^Eas���G��'-�:,,�i�=aH«�ee�u gi,000,000
Poilcy BUA7 0 017 00 83 0 Bodity Injury�Pe�Pe�so�)' 4 '_ ;�—�
Insurec Contlnental Casual Com a Bodily tnJ��ry�aer Acciaenp: $ '`''""'�`'__J
Manual Entry ry—P^Y.
P;oaeny: $
Exc e ss o��ovzoz�—o�rmizo�z ��
Po�Icy G2 813 016 8006 Limi;: y1,000,000
Manual Entry Insurer.ACE Property&CasuatN Insunnce Co
WOrkeYs Compensat'ton mrovzo2i—o��ovzo�z ��eocna«i•��c 59,000,000
Pollcy:WCa014 10 6 3 01 EL Dise�so-Ea Employee: 5 l <1,1';=;O1i�:.?j.
Manuai Entry lnsurer,nmeri<an Casuaicp Co.of Re�dino Pn 'c.L Disease�Policy Lim�� $
Property/Home o�iovzazti—o�iavzoz� ��
Pollcy.570000029827 iim�l: $to,0o0,000
Manual Entry lnsurnrJronshore5pe<izl ms��a„�eco
Required Documents�
User Uploaded Documents�
Requirements Notes: C�
i •,��� ���� �. � `�G
� � � � ���� �� ������
� ���� .��"`'� i"'7 �v�R�sS t`�:�sk=.i�U�, �r.�=wa�a�r�ca, �^,�. �?6t��+
� �� �����
%
� ..� ��. :3c7�4 ��.9EiC)%(, ["�f�:CrCa?.;�G, �.,�: �€a'�?=��..��'3"i[
PAMELA M1ZE,CITY CLERK
SHARLENE TIPTON,ASSISTANT CITY C�ERK
530.225.4447
530.225.4463 FAX
November 22, 2021
Avis Budget Car Rental, LLC
Attn: Anne D. Morrison, Vice President
6 Sylvan Way
Parsippany, New Jersey 07054
SUBJECT: Agreement for Rental Car Concession and Permit for Commercial
Activities, C-9107
Dear Anne D. Marrison,
Enclosed please find the fully executed original of the above referenced Agreement for
Rental Car Concessions and Permit for Commercial Activities by and between the City of
Redding and Avis Budget Car Rental, LLC DBA AVIS for the purpose of providing a rental car
concession at the Redding Municipal Airport.
If you have any questions regarding this agreement, or if we can be of assistance, please
contact the Office of the City Clerk at (530) 225-4044.
Sincerely,
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Amber DalPoggetto
Executive Assistan�
Enclosure
cc: Stephanie McCollum
Jim Wadleigh
E11en Grannis