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HomeMy WebLinkAboutRepublic Parking - Extended Passenger Parking Lease YAK.I A AIR TERMINAL -- McALL S 1 ER VI LD AIRPORT PARKING CONCESSION AGREEMENT This AGREEMENT is made and entered into this 1 S` day of July. 2012, by and between the YAK MA AIR TERMINAL- McALLISTER FIELD (hereinafter referred to as "YAT" or "Airport and REPUBLIC PARKING SYSTEM, INC.( hereinafter referred to as "Concessionaire"). WITNESSETH: WHEREAS, the YAT is operated under the authority granted by the Joint Operations Agreement (JOA) signed by the City and County of Yakima, dated July 1, 1 982; and WHEREAS, Concessionaire is in the business of operating commercial parking facilities for motor vehicles; and, WHEREAS, Airport intends to grant the right to Concessionaire to operate the public parking facilities serving the airport passenger terminal building at the Airport, pursuant to the terms and conditions herein set forth; and, WHEREAS, Concessionaire is able and willing to operate such parking facilities, subject to such terms and conditions; NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth, it is mutually agreed between the parties hereto as follows: PREMISES: YAT hereby grants to Concessionaire the exclusive right to operate the public commercial and employee parking lots located at the airport, (described in Exhibit A, attached hereto) during the term of and under the covenants and conditions contained in this Agreement. These parking lots shall be hereafter referred to as "Premises ". 2. USE AND OPERATION: The Premises shall be used by Concessionaire as parking facilities for vehicles and any other purpose or purposes incidental thereto, including, but not limited to, the right to erect a sign, or signs, suitable for advertising its business and to place any personal property or trade fixtures necessary for such purposes in or on the Premises. Concessionaire shall obtain the prior written approval of Airport Manager (hereinafter referred to as "the Manager ") described in Exhibit B, attached hereto, prior to installation of any signs, equipment or fixtures. Concessionaire shall institute revenue control procedures for all the public parking facilities including where necessary: Cr) procedures to control ingress and egress to the Premises; and, (ii) procedures for collection of proper fees in accordance with the approved rate schedule in effect. 3. HOURS OF OPERATION. Concessionaire shall have an employee(s) on site as needed to generate the maximum amount of revenue from the Premises. Said hours will be coordinated with and approved by the Manager and will not be changed unless approved by the Manager. 4. CONCESSIONAIRE EMPLOYEES. To accomplish the level of service required by Airport, and in the provision of continuous service of parking facilities, Concessionaire shall employ, train, assign, motivate and manage an adequate number of personnel to properly operate the commercial and employee parking lots. Concessionaire understands and agrees that its operation at the Airport necessitates contact with the public, both in the course of normal business operations and in rendering public services such as giving directions and Q 4 providing general assistance to the public. Employees in posit,.,rzs that involve contact with the public must be capable of speaking and understanding the English language at a level consistent with the effective and efficient performance of the duties of the position. Employees shall be neatly dressed in uniforms provided by Concessionaire at all tunes in order to reflect the professional levels of service expected by Airport. 5, DISCIPLINE OF CONCESSIONAIRE'S EMPLOYEES: Airport shall have the right to demand removal from the Airport any employees who are dishonest, incompetent or offensive to patrons of the commercial parking lots, provided, however, that such removal shall be conditioned upon a reasonable notice to the Concessionaire (not less than ten (10) days notice), during which tixne the Concessionaire shall provide a replacement. 6. SHORT TERM PARKING: Short term parking (less than 2 hours,) shall occur in areas designated on Exhibit "A ". Airport will provide concessionaire with a list of people who will be provided complimentary annual parking passes. 7. TERM: The term of this Agreement shall be for a period of ten (10) years commencing July 1, 2012, and ending June 30, 2022. 8. CONCESSION FEES: Concessionaire hereby agrees to pay Airport the greater of the following minimum annual guaranteed (MAG) concession fees or percentage concession fees which may be due hereunder, computed for each year of the term of this Agreement: 8,1 Minimum Annual Guaranteed (MAG) concession fees: First Year $120,000.00 Second Year $120,000.00 Third Year $120,000.00 Fourth Year $120,000.00 Fifth Year $120,000.00 The MAO above will be subject to adjustment beginning the sixth (6`') year of the agreement. Any adjustment will be negotiated within the six (6) calendar months proceeding the beginning of the sixth (6 year, i.e. January 1, 2017 and June 30, 2017, Based on the first five years experience and doouroentation, the MAO may be negotiated hierer or remain the same; the MAG will not be negotiated to a lower amount for the sixth (6' )) through tenth (10 year of the agreement. MAG concession fees shall be due and payable in equal monthly installments of $10,000 on or before the fifteenth (15th) day of the month following the month in which it was earned, commencing August 15, 2012. If the term of the Agreement commences on a day other than the first day of the year, the MAG concession fee for the first and last years of the term shall be prorated (but the monthly payment shall not change). In addition, concurrently with each monthly installment, Concessionaire shall provide a monthly statement listing the gross receipts (as herein defined) derived from parking activities for the previous month. 8.2 Percentage concession fees shall be computed as a percentage of monthly gross receipts and shall be paid in addition to the MAG for that month. Said percentage rent shall be paid on or before the fifteenth (15 day of the month following the month in which it was earned commencing August 15, 2012. 80% of all gross revenues greater than Sixteen Thousand Five Hundred and Eighty -Seven Dollars ($16,587) per month "Gross receipt. 4s used herein shall mean all sums and cozx.._,.eration, of any kind or nature, collected by Concessionaire from the use of space for the parking of vehicles whether on an hourly, daily, weekly or monthly basis, including, without (imitation, receipts, if any, from parking meters, restaurant validations and parking coin machines, less the following: (a) refirnds, discounts, and allowances made by Concessionaire (all of which must be approved by the Airport, in its discretion, in order to be deducted as set forth herein), which amounts sha]I be deducted prior to calculating the percentage concession fees above; and, (b) sales tax owed and remitted by the Concessionaire that arises solely from parking fees paid by customers at the Airport, which amounts shall be deducted after calculating the percentage concession fees above, (c) credit card fees charged to Concessionaire on parking paid by credit card. Gross receipts shall include 25% ofpenalty payments and 100% of parking fee revenue made by parking patrons to Concessionaire. Within thirty (30) days after the end of each annual period during the term hereof (i.e, June of each year), Concessionaire shall furnish to Airport a statement showing the gross receipts from the Premises received during the preceding annual period and the amount of percentage concession fee due and payable for such period pursuant to Section 8.2. Amounts of percentage concession fees in excess of the minimum annual guaranteed concession fee delineated in Section 8.1, if any, shall be paid by the Concessionaire to the Airport simultaneously with the submittal of such statement. For the purpose of this section, "annual period" and "year" shall mean the twelve- month period beginning with the commencement date of the term of this Agreement, and each twelve- month period thereafter during the term hereof 83 In addition to the concession .fees, Concessionaire shall pay to the Airport such sums as may be required by law for payment of leasehold or other tenant tax as required, imposed, assessed, or imputed by the state of Washington or other tax entity, as such laws now exist or are hereafter amended. 8.4 Concessionaire has the right to suspend payment of MAG concession fees during any period the Airport is not operated as a primary commercial service airport (Federal Aviation Regulation Part 139). Tithe Airport is closed for use by commercial airlines for less than a full calendar month (for reasons other than weather), the MAG concession fees otherwise payable shall be reduced pro rata to reflect percentage of time during such month that the Airport is closed for use by commercial airlines. 8.5 The percentage concession fee may be waived for any year starting July 1, 2015, in which gross revenues from the prior year are more than 25% less than gross revenues from the previous year. In other words, if the gross revenues for the calendar year 2014 are more than 25% less than the gross revenues for the calendar year 2013, (7/1/2012 through 6/30/2012) then payment of the percentage concession fees shall be waived for 2015. 9. FORCE MAJEURE: In the event of an airline strike, airport construction or repair, including, but not limited to, repair of roadways or runways, partial or total suspension of activities by any commercial airlines including, but not limited to, governmental laws, rules, regulations, orders or policies, or acts of God, which event or events cause or result in the amount of gross receipts being reduced to such an extent that Concessionaire cannot, without economic hardship, continue to pay the minimum annual guaranteed concession fee, Concessionaire may, upon notice to Airport, request to have the parties enter into negotiations regarding a reasonable reduction in minimum annual guaranteed concession fees. Immediately following such notice, both parties shall in good faith consider a reasonable reduction in such minimum annual guaranteed concession fee, including the effective period said reduction shall be in effect, as well as the amount of said reduction, The basis for determining any such reduction, if approved by tne Airport, could consider the parking receipts plus the ratio of the number of passengers carried by scheduled certified air carriers per month prior to July 1, 2012, to the parking receipts plus the number of such passengers during the period for which the reduction is requested. From the time of Concessionaire's request for consideration of a reduction in the MAG. concession fees, Concessionaire may reduce the monthly minimum annual guaranteed concession fee payments to seventy percent (70 %) of the gross revenues generated on a monthly basis until final determination of the effective period and amount of said reduction in the minimum annual guaranteed concession fee, if any. If the Concessionaire elects to reduce the minimum annual guaranteed concession fee to 70% of gross receipts as noted above, and the Parties agree (or, if a court or other proceeding establishes) that a reduction in the minimum annual guaranteed concession fee is not warranted, or not warranted to the full reduction to 70% of gross receipts, then the Concessionaire shall remit the difference to the Airport within thirty (30) days of the date of said agreement or determination by the court or other proceeding consistent with Section 8. Nothing herein shall modify the obligation to pay percentage fees as set forth in Section 8.2, above. Should Airport and Concessionaire agree to a reduction in the minimum annual guaranteed concession fee, Concessionaire shall have the right to reduce its operation on the Premises proportionately during the period the fee reduction remains in effect. 10. EQUIPMENT AND IMPROVEMENTS: Concessionaire shall furnish and install on the Premises, at Concessionaire's sole cost and expense, certain equipment and improvements necessary for the proper operation of the paid public parking facilities. 10.1 See Exhibit B. Except for personal property of Concessionaire, which may be removed from the Premises by Concessionaire at the termination of this Agreement, title to any equipment and improvements installed or furnished by Concessionaire shall vest in. Airport upon termination of this Agreement. During the term of this Agreement, Concessionaire shall repair, maintain, improve, and replace the equipment and improvements installed or furnished by Concessionaire. Jf, for any reason (except for the default by Concessionaire or Concessionaire's abandonment of the Premises) this Agreement and/or Concessionaire's operation should be permanently terminated or cancelled prior to the expiration of the initial five (5) year term of this Agreement, Concessionaire shall have the right to remove any equipment and improvements installed or furnished by Concessionaire, without waiving any other legal rights or remedies available to Concessionaire. Alternatively, at the election of the Airport, the Airport can elect to reimburse Concessionaire for the unamortized value of some, or all, of the capital expenditures made by Concessionaire hereunder. If the Airport elects to acquire some or all of any equipment and improvements installed or furnished by Concessionaire, such reimbursement shall be made within thirty (30) days after receipt by Airport of a statement from Concessionaire indicating the determination of such amount due and owing Concessionaire, which amount shall be determined, based upon 8% cost of capital and a 60 month amortization or depreciation term and the number of months Concessionaire has operated under the terms of this Agreement Concessionaire shall obtain the written approval of the Airport prior to installation of any equipment and improvements, provided, however, execution by Airport of this Agreement shall be considered as evidence of such approval for the equipment and improvements to be installed in accordance with this Section 10. Airport has the right to request that during this contract the Concessionaire make additional financial investment in the improvement and repair of the public parking facilities located at the Airport. Sorge items that this investment may be used for are the installation of additional revenue control equipment, repairs to the pavement and lighting, or any other mutually agreeable projects. The terns of this additional investment will be negotiated and mutually agreed upon by both the Airport and Concessionaire. 10.2 See Exhibit C. The improvements listed will be made solely by the Concessionaire at its discretion but within sixty (60) business days from the start date of this agreement. All costs shall be documented by Concessionaire by invoice, and a copy of every invoice related to these improvements shall be provided to Airport for its review. If the cost of the project is higher than estimated for any reason, this cost will be borne strictly by the Concessionaire, If the cost of the project is lower than estimated, documented by invoices, this cost will be reimbursed to the Airport at the end of the agreement by lowering the amount Listed in paragraph 8.2 above appropriately until such time as the reduced cost is amortized. These improvements are recommended to be accomplished solely by the Concessionaire with the cost borne solely by the Concessionaire but with such costs reimbursed to Concessionaire by Airport amortized at three percent (3 %) interest over the ten -year (I0) term of the agreement. All reimbursements are computed on a direct, straight line basis. These improvements are noted to: (1) maintain the surfaces of all the parking lots; (2) upgrade the appearance of the entire operation and parking lots: (3) correct landscaping issues with the lots that have developed over the years, i.e. irrigation breaks, tree root incursion into parking lots and sidewalks, etc.; and, (4) issues of safety for people moving back and forth through the lot to the vehicles. 11. REPORTS AND RECORDS: Concessionaire shall keep and maintain complete and adequate reports and records for a period of six (6) years of its gross receipts and such reports and records shall be available for inspection at the Premises by a duly authorized representative of Airport at any time during regular business hours, provided Airport shall give Concessionaire at least five (5) business days prior written notice of its intent to inspect such reports and records. The Concessionaire shall submit to Airport monthly activity reports. Said reports to include at a minimum a monthly breakdown of revenue generated on a daily basis detailed by currency or credit card. Said report shall be mailed on or before the 20` day following the month in which it was earned. The Airport shall be permitted to make excerpts or transcripts from such reports and records and to conduct an audit of the Concessionaire's records, at the sole cost and expense of the Airport, provided that if any discrepancies are found, in excess of 2.5% of recorded revenues, the costs of the audit shall be an expense recoverable by the Airport from the Concessionaire. The Concessionaire shall retain all documents, papers, records, and other materials pertaining to the performance of this Agreement for six (6) years from the date of termination of this Agreement to facilitate any audits or inspections. If any litigation, claim, or audit is commenced, the records, along with supporting documentation, shall be retained until all litigation, claim, or audit findings have been resolved even though such litigation, claim, or audit continues past the six (6) year retention period. 12. UTILITIES: Airport shall pay for all necessary utility charges associated with the Premises and for operation of the Premises, including parking and other operational equipment located thereon. 13. REPAIR AND MAINTENANCE: 13.1 Concessionaire shall keep all parking revenue control equipment, gates, eashier booth, parking lot signs and improvements on the Premises in good repair and operating condition. Damaged or inoperative equipment shall be repaired or replaced as soon as possible, but no later than ten (10) working days, at Concessionaire's sole cost and expense. Concessionaire shall also keep the Premises clean and free from all trash and debris. 13.2 Airport shall, at its expense, be responsible for repair, maintenance and replacement of all other equipment and improvements on the Premises, not including any equipment and itnproveznents installed under the provisions of Section 10 herein, which Concessionaire is obligated to maintain in good condition and repair. Airport will be responsible for pavement maintenance including seal coating, crack sealing and paint striping. Concessionaire shall be responsible for snow removal within the priority system established by the Airport. 14. INSURANCE: Concessionaire shall provide, at its own expense, Comprehensive Automobile, Bodily Injury and Property Damage Liability Insurance covering all vehicles owned, hired or non -owned operated by /or on behalf of the Concessionaire in the performance of this contract and not less than the following limits: Bodily Injury $ 1,0 00,000 per person Property Damage $ 1,000,000 per occurrence Concessionaire shall obtain and pay premiums for the following insurance in addition to the above: Workman's Compensation Washington Statutory Limits Comprehensive General Liability in the amount not less than $1,000,000 (Combined Personal injury and/or Property Damage per occurrence subject to $1,000,000 aggregate). All insurance required herein shall be obtained from an insurance company that is rated Bests "A" or better. Prior to the effective date ofthis Agreement, and for each extension of the Agreement, a Certificate shall contain provision for a ten (10) day prior written notice to the Airport of cancellation or material change. Certificates of insurance shall name the Yakima Air Terminal -- McAllister Field, the City of Yakima and Yakima County as "joint owners" of the YAT as "additional insured" and contain a Notice of Cancellation clause which is absolute and does not contain Language such as "endeavor to notify or "failure to ,mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives ". If a standard certificate is used with such language crossed out, a representative of the issuing insurance company shall initial and date said deletions. Notwithstanding the insurance coverage obtained, the Concessionaire will be responsible for any damage incurred while fulfilling the terms of the Agreement. 15. INDEMNITY: Concessionaire shall protect, defend, and hold Aixport, its Managers, commissioners, officers and employees harmless from and against any and all liabilities, Losses, suits, claims, judgments, fines or demands arising by reason of the injury or death of any person or damage to any property, including all reasonable costs of investigation and defense thereof, of any nature whatsoever arising out of or incident to this Agreement, or the use or occupancy of the Leased Premises, to the extent such losses or claims result from negligent acts of the Concessionaire, its Managers, agents, officers or employees. Similarly, Airport shall indemnify Concessionaire in like manner to the extent such losses or claims result from negligent acts of Airport, its Managers, commissioners, ofTzcers or employees. The Airport shall give to Concessionaire reasonable notice of any such claims or actions. The provisions ox this section shall survive the expiration or early termination of this Agreement in the event of any claim or legal action for relief be filed against Airport or Concessionaire for actions or omissions occurring or alleged to have occurred prior to such termination. With respect to the performance of the Services and as to claims against the Airport, its officers, shareholders, agents and employees, Concessionaire expressly waives immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to it and its employees and agrees that the obligation to indemnify, defend and hold harmless provided for herein extends to any claim brought by or on behalf of the Concessionaire or any employee of the Concessionaire and includes any judgment, award or cost thereof, including attorney's fees. THIS WAIVER HAS BEEN EXPRESSLY NEGOTIATED BY THE PARTIES AND THIS PROVISION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. Schedule: Short Tenn (22 designated stalls) Up to 2 hours: $1.00. Vehicles parked overnight may be subject to a $25.00 fine Long Term (> than 2 hours; daily; overnight; weekly) Each 24 hour period $8.00 From time to time during the term of this Agreement, Concessionaire may submit for the Airport's review and approval, proposed increases in the rates to ensure that such rates will be commensurate with the rates of airports of similar size and activity; provided however, that no such increase shall go into effect until approved by the Yakima Air Terminal Airport Board. The Parties agree to meet and review, in good faith, the use of the "Short Term" parking stalls during the month of October, 2012, to discuss and evaluate whether an alternative time period should be imposed for use of these parking stalls, and/or whether a different rate structure should be adopted for "Short Term" parking. This paragraph imposes no obligation to actually make a change with regard to "Short Term" parking; it only creates an obligation to meet and review to discuss possible changes, 16. UTILITY INSTALLATIONS: In order that Concessionaire may safely and efficiently operate the Premises and the equipment and improvements thereon, Airport shall install or cause to be installed, at Airport's expense, conduits, wiring and ducts to bring electrical power to the point of connection and use by Concessionaire of the equipment, excluding the initial work necessary to install the equipment specified in Section 10. Airport shall at its expense keep all such utility equipment and improvements in good operating condition and repair, including underground wiring and connections for electrical power, electric lighting, lighting fixtures and lamps. 17. REGULATION OF PARKING: Airport agrees that there shall be no free (except as otherwise permitted by Section 6 of this Agreement and defined by Exhibit A) and/or unauthorized or illegal parking in the Airport terminal area depicted on Exhibit A. Consequently, Airport agrees to assist and cooperate in every practicable way with Concessionaire to prevent any such unauthorized or illegal free parking in and about said terminal area, including policing violators and/or the erection of signs or barricades to prevent said unauthorized or illegal free parking. 18. TAXES: If any charges or taxes are assessed and/or levied upon this Agreement, upon the Premises or Concessionaire's interest therein or occupancy thereof, upon any real property, equipment or improvements located thereon (except personal property of Concessionaire) or upon Concessionaire due to its operations of the Premises or under this Agreement, prompt notice of any such assessment or levy shall be given, in writing, by the party receiving such notice to the other party hereunder. if Concessionaire is required to pay any future tax or charge applicable to parking revenues only collected at the Airport, then the amount so paid shall be deducted from the concession fees payable by Concessionaire under this Agreement (in the same manner as sales tax). Concessionaire shall pay all taxes, if any, levied upon its personal property located upon the Airport. 19. FUTURE PARKING FACILITIES: Airport retains the right to modify the Premises described herein or to add to, expand, or create additional parking facilities to serve the existing or future airline terminal complex. In the event additional public parking facilities are created during the term of this Agreement, Concessionaire shall provide parking management services for these facilities in accordance with the terms and conditions of this Agreement. Exhibit "A" shall be amended to reflect the new parking facilities to be managed. Construction of the new parking facilities at any new terminal or the construction of additional public parking spaces shall be the expense and responsibility of the Airport. 20. NON - DISCRIMINATION: Concessionaire for itself, its successors in interest, and assigns, as a part ofthe consideration hereof, does hereby covenant and agree: that (a) no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of or be otherwise subject to discrimination in the use of said facilities, (b) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination, (c) that Concessionaire shall use the Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office ofthe Secretary, Part 21 Nondiscrimination in Federally assisted programs ofthe Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. Non- compliance with this provision, after written findings, shall constitute a material breach thereof and in the event of such non - compliance the Airport shall have the right to terminate this Agreement and the estate hereby created without liability therefore or at the election of Airport or the United States either or both said Governments shall have the right to judicially enforce said provision. 21. DEFAULT: 21.1 In the event Concessionaire fails to timely remit any sum or payment due herein within five (5) days of the date it is due, Concessionaire shall be in default and a late charge of five percent (5 %) of said sum or payment shall be assessed without notice to Concessionaire, After the five (5) day grace period, the Airport shall mail a notice of default to Concessionaire, and if Concessionaire fails to cure the monetary default (plus the late charge) within ten (10) days of the termination following the expiration of said ten (10) day period. Any sum unpaid after the expiration of the ten (1 0) day cure period shall immediately begin to accrue interest at the rate of twelve percent (12 %) per annum, without notice to Concessionaire. 21.2 Either party hereto shall have the right to terminate this Agreement upon the breach by the other party of any of the covenants, terms, and conditions hereof, provided the breaching party receives notice of existence of such breach and fails to remedy such breach within thirty (30) days after notice thereof is received or fails to commence and diligently pursue remedy of such breach within said thirty (30) day period in the event that such breach cannot be reasonably remedied within thirty (30) days. Either party shall also have the right to terminate this Agreement in the event the other party files a voluntary petition or similar pleading for bankruptcy, insolvency, receivership or assignment for the benefit of creditors, with such termination to be effective upon giving notice thereof. 22. CANCELLATION OF AGREEMENT: 22.1 Cancellation by Concessionaire. This Agreement shall be subject to cancellation by Concessionaire if one or more of the following events should occur: 22.1.1 The permanent abandonment of the Airport as an air terminal. 22.1.2 The lawful assumption by the United States Government, or any authorized agency thereof, of the operation, control or use of the Airport or any substantial part or parts thereof, in such a manner as to substantially restrict Concessionaire for a period of at least ten (10) days from operating thereon. 22.1.3 Issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the Airport, and the remaining in force of such injunction for a period of at least thirty (30) days. 22.2 Cancellation by Airport. This Agreement shall be subject to cancellation by Airport in the event Concessionaire shall abandon or otherwise not conduct operations on the Premises as outlined in this Agreement for any period of time in excess of seven (7) calendar days, except where excused in another provision ofthis Agreement. Cancellation under any of the above events shall be effective upon fifteen (15) days advance written notice of cancellation. 23. AIRPORT BOARD: Airport hereby warrants and represents that it has the authority to grant Concessionaire the exclusive right, concession and privilege to conduct the parking operations as set forth in this Agreement on the Premises and to execute this Agreement and that the laws and/or ordinances affecting the use of the Premises do not prohibit the uses herein provided. State and/or local government (hereinafter collectively "Government ") from time to time may increase minimum wages and/or employee benefits (hereinafter "Required Benefits ") the Concessionaire is required by law to provide to its employees. Therefore, if an increase mandated by Government occurs with the Required Benefits during the term of this agreement, the Concessionaire shall be entitled to request an increase in the parking rates based upon such increase or be able to deduct from gross revenue an amount equal to said required benefits, subject to the approval the Airport Board as appropriate; provided, however, that if the increase in parking rates or the deduction from gross revenue is not approved by the Airport, the Concessionaire shall have the right to terminate this Agreement by providing written notice to the Airport within thirty (30) days of the date of the decision by the Airport, which notice of termination shall be effective ninety (90) days following the receipt of said notice by the Airport, 24. VALIDATION PROGRAMS: In the event a concessionaire, i.e. airport restaurant, desires a validation program for its customers, an agreement will be negotiated on terms mutually agreeable to Concessionaire and the concessionaire which will allow the concessionaire to validate and pay parking tickets at a reduced rate for such customers. Any such agreement shall be subject to the written approval of the Airport. 25. CONCESSIONAIRE MOVEMENT OF VEHICLES: Concessionaire shall not move, 1 relocate or otherwise deliver a vehicle from any parking facility without the issuance of proper documentation from the Yakima Police Department (YPD) or from the Airport Administration Office. Movement of a vehicle(s) under emergency conditions shall be made only at the direction of Airport staff or an officer from the YPD. 26. ABANDONED VEHICLES: Concessionaire will comply with any and all governmental laws, regulations and statutes regarding abandoned vehicles, including reporting of any vehicle which is on the Premises more than thirty (30) days, to proper authorities in compliance with such laws, regulations and statutes. Permanently abandoned vehicles, if any, will be disposed of in accordance with existing laws. Proceeds from the sale of any abandoned vehicle will be used to offset parking charges owed and will become part of gross receipts to the extent of the amount of the parking fees offset and received by Concessionaire. No abandoned vehicle will be disposed of without the prior approval of the Airport. 27. SECURITY: The Yakima Police Department (YPD) shall have jurisdiction for providing law enforcement on the Premises. In the spirit of cooperation by Concessionaire with such law enforcement personnel, Concessionaire will immediately notify the YPD's office of any suspicious activity occurring on the Premises and provide any additional cooperation possible to enable YPD personnel to take whatever security action is necessary, 28. NOTICES: Any notices or communications required to be given to or by or served upon the respective parties hereto may be so given or served by mailing the same, properly addressed and stamped, to such party or parties by United States registered or certified mail. Until new addresses shall be given, the addresses of the respective parties for the purpose of such notices or communications or for any other purposes shall be: As to Airport: Airport Manager Yakima Air Terminal — McAllister Field 2400 West Washington Avenue Yakima, WA 98903 As to Concessionaire: Republic Parking Systems, Inc. 633 Chestnut Street, Suite 2000 Chattanooga, TN 37450 Copy to: Republic Parking Northwest, Inc. 200 W. Mercer Suite 103 Seattle, Washington 98119 29. ASSIGNIVIENT: This Agreement shall not be assigned by Airport or Concessionaire to aay other party without the written consent of Concessionaire or Airport respectively. 30. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon and inure to the benefit of the parties hereto, their respective successors and assigns. 31. WAIVER OF SUBROGATION: Airport and Concessionaire agree that each forfeits any right of action that it may later acquire against the other of the parties to the Agreement for loss or damage of its property, or to property in which it may have an interest, where such loss is caused by fire, or any of the insured extended coverage hazards, and arises out of or is connected w,... the Premises. 32. SPONSOR'S ASSURANCE SUBORDINATION: This Agreement shall be subordinate to the provisions of any existing or future agreement between Airport and the United States relative to the operation or maintenance of the Airport. 33. NON - SUBORDINATION: Airport's interest in the Premises, or the terms hereof, shall not be subordinated to any other interest, except as set forth in Section 34, without the express prior written approval of Airport after full disclosure 34. RULES AND REGULATIONS: Airport shall have the right to enforce present and future rules and regulations with respect to the use of the Airport, terminal building and related facilities, which Concessionaire agrees to observe and obey. 35. HOLDING OVER: In the event Concessionaire shall hold over and remain in possession of the Premises after the expiration of this Agreement without any written renewal thereof, such possession shall not be deemed to operate as a renewal or extension of this Agreement, but shall only create an agreement from month-to-month which may be terminated at any time by either party giving not less than fifteen (I 5) days prior written notice. 36. NONWAIVER: Any waiver of any breach of covenants herein contained to be kept and performed by Concessionaire shall not be deemed or considered as a continuing waiver and shall not operate to bar or prevent Airport from declaring a forfeiture for any succeeding breach, either of the same condition or covenant or otherwise. 37. HEADINGS: The article and section headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provision of this Lease Agreement. 38. GOVERNING LAW: This Agreement shall be construed in accordance with the laws of the State of Washington. Venue for any action under this Agreement shall be in Yakima County, Washington. 39. ENTIRE AGREEMENT: This written Agreement is the entire agreement between the Parties, Any and all prior or contemporaneous statements and understandings not contained herein shall be of no further force and effect. This Agreement may not be amended except in writing and signed by all Parties. , LESSOR: YAKIMA AIR TERMINAL - McALLISTER FIELD 2400 W. Washington Avenue Yakima, Washington 98903 William ' ?' ee :` , C irman i 01./ Don B 'umbach, Secretary STATE OF WASHINGTON County of Yakima I certify that l know or have satisfactory evidence that William Wheeler and Don Baumbach signed this instrument, on oath stated that they were authorized to execute the instrument and acknowledged it as the Chairman and the Secretary respectively of the Board of the Yakima Air Terminal - McAllister Field to be the free and voluntary act of such party for the uses and purposes mentioned t. need in the instrumen Date Z� — By: Notary Publics tt t ttt t Appointment Expires /i / ° / -� ,,� ,,, ‘ J O YA4 siON :0 _ may _ { { �! . , • I �1 q B"VBL.M a x y_ , f 1 V r i ++ CONCESSIONAIRE; t ° 1: LIC P . • 1 G SYSTEM INC. 633 Ch t.. S. Suite 240 C a , • . . ga, Te .. a Ja . es C, Berry, Chairman Date STATE OF TENNESSEE County of Hamilton 1 certify that 1 know or have satisfactory evidence that James C. Berry signed this instrument and acknowledged it to be his free and voluntary act for the uses and purposes mentioned in the instrument. Date � �® AL " 00 B y: 1 c/. , 1 L. 1 04 :� s ®• ® �.� 0 Notary Public 7 .�• f Appoin I ent Expires n-17- t 'S" ee 0 B Gqp., 4 n'Vyy�a^ � ® 000, \ YAKIMA AIR TERMINAL - MCALUSTER FIELD rii • ,'" ; 4w. =.<: Fki : : i I I l I I I I l f 1 I I l I I I I I I I l I l I! ■ 1: uuu J ERAPLOYFE .,.. €' �.. I _ , w sH F TE rt "...: ail Ma • �r�■� m..� S TNT 1CN 3, r x u E; : ":t .L PHONE LC1T'' RE l AL' ARC � G EI r s � x 1 MPLOYEE SLOT -1 1 CELL PHONE LOT I + : LONG TERM LOT ! 1 R NJAC CARL ? EXHIBIT "l-3" Equipment 1- GE VD EVRDNR Ultraview EVR series Day/Night Rugged Dome 1- GE Twisted Pair Converter 1- Altronix Camera Power Supply 1- TruVision DVR model 10, 16 channel digital recorder w/ 1 TB storage 2 - Omni Paypoint self-contained parking payment device with A/C power 1- Computer 1 - Handheld revenue verification device with printer 1 —Printer, Fax, Copy machine 4 — Windmaster Bases and Frames 5 -- 28x44 payment information signs 6 --18 x24 Short Terre only signs 7 - 12x12 Handicap Placards 94 — 12x12 Double sided number signs 6 -- 24x32 Pay in Advance signs 107 -- 8' Posts for signs 1 — 48x60 Welcome and Rate info sign on existing booth, West Entrance 1 -- 36x48 Welcome and Rate info sign at East Entrance 1 — 36x48 Short Term directional sign 1 -- 24x32 Cell. Phone Lot Sign 2 —1 8x24 Cell Phone Lot Sign 2 — 24x32 Employee Parking Only Sign EXHIBIT "C" Parking Lot Maintenance Improvements Estimate -- Stripe Rite Dated 6 -15 -2012 ICL . 2012 Estimate inc. P.O. No. Estimator Date Estimate # :504 River Road , Yakima, WA 98902 1 GC 6/15/2012 1 I2 -424 -Y Phone: 509 -24 &7233 _ �. Fax: 509 - 248 -7883 Project Location Yakirna Air Terminal Billing Address 2400 West Washingtn Avenue Yakima Washington 98903 Republic marking System i vapeziale@republiparking.com 200 West Mercer Street Suite # 103 Seattle Washington 98119 _. Contact Name Vince Contact Phone # 206 - 787 - 1249 t I Item Description Qty Rate Measurement — Total P roject Flame Main Parka% Lot ' 06.1 Low VOC Strip... Low VOC Striping- Stalls 5,426 0.40 LFT 2,170.40T 06.6 Low VOC Strip... Low VOC Striping- HOOP r 7 65.00 ach 455.00T . 06.3 Low VOC Strip... Low VOC Stencils - Arrows 2 25.00 Each 50.00'1' 06.3 Low VOC Strip... Low VOC Striping - " Short Term Only" Symbol 5 25.00 Each 125.00? Crack Seal 1 04.1 Crack Sealing Crack Scaling 3,650 0.55 L1'T 2.007.501 Remove"z roes and Asphalt Patch 99 -000 Miscellaneous Remove 6 Islands with Trees ( Approximate figure - actual 4.500.00 Lump Sure 4.500.00'; dollar figure to follow) 03.1 Asphalt Patch Asphalt .Patch 1. Prep 864 6.35 Square Feet 5,486.40'f I 1 '..his bid proposal is based on ( ) mobiliza :ionts). if additional mobilizations are required Subtotal due to scheduling conflicts that arc out of Stripe Rite's control, a mobilization fee will be - • - - charge... Excludes pennits,layoi t, referencing, traffic control, sales tax and any other Sales Tax (8.2 %) items not specifically mentioned h this bid proposal. Scheduled work may be cancelled by unfavorable weather. Stripe Rite, Inc., shall solely Total determine unfavorable weather conditions as Stripe Rite, Inc. bears the responsibilay for insta ?cation and is in the best po.ition to judge weather conditions - Stripe Ritz., 11,c. shall not bear any ftn sncia. responsibility for delays caused by sfr'skrs> t •- + Fr'errse contact Cheryl Marferr or Jake Bateman for scheduling weather conditions, delay is obtaining materials or other causes beyond its control. of all projects 509-248-7233. lag 1 V . TRIPE RrrE 2012 Estimate Inc. P.O. No. , Estimator Date ! Estimate # 2504 River Road Yakima, WA 98902 GC 6/192012 . 12 -424 -Y Phone: 509-248-7233 - -"`- Fax: 509- 248 -7883 Project Location Yakima Air "terminal Billing Address 2400 West Washingtn Avenue Yakima Washington 98903 Republic Parking System vspeziale@repubiiparking.com 200 West Mercer Street Suite #103 Seattle Washington l 98119 contact Maine Vince: Contact Phone # 205 - 787 - 1249 Item Description Qty ! Rate Measurement i Total 04.2 Asphalt Sealing Asphalt Scaling 72,092 0.12 Square Peet 8,651.0..T 1 . i I ', his bid proposal is based on ( ) mobilization(s). l additional mobilizations arc required Subtotal $23.445.34 due to scheduling conflicts that are ot.t of Stripe Rites control, a mobilization fee will be charged. Excludes permits,:ayout, referencing, traf ie control, sales tax and any other Sales Tax (8.2%) $1.922.52 items not specifically mentioned in this bid proposal. Scheduled work may be cancelled by unfavorable weather. Stripe Rite, Inc., shall solely 1 Total $25,367.8 d =mine unfavorable weather conditions as Stripe Rite, Inc. bears the responsibility for ! instal ation and is in the best position to judge wcauter conditions. _ Strip.: Rite, inc. shall not bear any financial responsibility for delays caused by strikes, Please contact Cheryl Mader) or .Take Bateman, far scheduling 1 weat'Ncr conditions, delay in obtaining materials or other causes beyond its control. of all projects 509 -24$ -7 33. Page 2 ate ,. .. Inc. 0. No. Estimator - Date Estimate # 2504 River Road Yakima, WA 98902 GC 6/15/2012 12 -426 -Y Phone: 509 -248 -7233 _._ . x ax: 509 -248 -7883 i'ra ect Location Yakima t1 Terminal Biiiing Address 2400 WestWashington Avenue Yakima Washington 98903 Republic Parking System Contact: Vinci: 200 West Mercer Street Suite 103 Seattle Washington 98119 Contact Name Vince Contact Phone # 206- 783.4324 Item Descriptio Qty Rate Measurement Total Project Nance Section 2 Main Olive & Coll 1'hon;. Lot Striping 06 Low VOC Striping Low VOC Striping- Double: Yellow `i 225 0,65 L1 E' 146.25T 06 Low VOC Striping Low VOC Striping - 8° Wide Lints 4 956 0.65 I.; f 1 621.40T 06.3 Low VOC Strip... - Low VOC Stencils - Arrows (Straight) 10 35.00 Each 350.00T 06 Low VOC Striping Low VOC Striping - Straight and turn now 12' 4 45.00 Each 180.00T 06.2 :,.ow VOC Strip... Low VOC Striping- Stop Bars 4 35.00 I.FI' 140.00T 06.1 Low VOC Strip._. Low VOC Striping - Crosswalk Lines - 12" Wide 214 1.50 L1 "T 321.00T ( Glass Beads Required for ail above striping) i 06 Low VOC Striping 1 Low VOC Striping - Stall Litres 1,050 i 0.40 Lt`: 420.00 - 1' 06 Low VOC Striping 1Low VOC Striping Painted Yellow Curb 117 0.50 LFT 93.60T 06.6 Low V OC Strip... - Low VOC Striping- I IUCP (Blue) 65.00 , E li 65.001 This bid proposal is based on ( ) mobilization{s). If additional nobiliz tions are required SUbtot i due to scheduling conflicts that are out of Stripe Rite's control. a mobilization fee will be — — -- charged_ ExciuJes permits,layou, referencing, tragic con.ro', sales iav and any other Sales T (8.2 %) items not sprc:iftc. lly mention in this bid proposal. Scheduled work m.cy be cancelled by unfavorable weather. Stripe Rite, inc., shall solely Total tl determine unfavorable weather conditions as Strip: Rite, Inc. be s the rc;sponsibitity for i:tstaliatio:t and is in the best position to judge weather conditions. Stripe Rite, Inc. shall not bear any financial responsibility for delays caused by strikes, :Please tact Cheryl It/laden or Jake Bateman for scheduling i weather conditions, delay io obtaining •aterials or other causes beyond its control. of all projects 509 t 4age., 0 _ Inc. P.O. No Estimator Date Estimate* t 2504 River Road ---- Yakima, W.A. 98902 l GC 6/15/2012 12 -426 -Y Phone: 509 -248 -7233 Fax: 509 -248 -7883 Project Location t Yakima Air Terminal Billing Address 1 •2400 West Washington Avenue Republic Parking System Yakima Washington 98903 I Contact: Vince ii 200 West Mercer Street Su'.te 4103 i Seattle Washington 98119 Contact Name Vinci Contact Phone # 206 item Description [ Qty Rate Measurement Total Crack Seal 04.1 Crack Sealing Crack Sealing 2,501 0.55 LFT 1,375.55T Asphalt Sealing 042 Asphalt Sealing Asphalt Scaling 36,784 0.12 Square Peet 4,414.087 1_ i - This bid proposal is based on ( ) mobilization(s). if additional mobilizations are required SlibtOtal $8.126.118 due to scheduling conflicts that are out of Stripe Rite's control, a mobilization fee will be charged. Excludes permits,layout, referencing, traffic control, sales lax and any other Sales Tax (8.2 %) $666.40 items not specifically mentioned in this bid proposal. Scheduled work may be cancelled by unfavorab'e weather. Stripe Rite, Inc., shalt solely Total :'18.793.28 determine unfavorable weather conditions as Stripe Rite, .nc. bears the respor:• •Sil;:y for installation and is in the best position to judge w -at:,er conditions. Stripe Rite. Inc. shall not bear any financial resptrns =bility for delays caused by strikes, "lease contact Cheryl Madero or Jake Bateman for scheduling weather conditions. defuy in obtaining materials or other causes beyond its control. o all projects 509 -24-7233. Ptsge 2 .Cc..,....) 5 TR1 3 E RITE 2012 Estimate . Inc, P.O. No. sil Date Estimate # 2504 River Road — - _. Yakima. WA 98902 ('AM 6/21/2012 12458 -Y Phone: 509-248-7233 _ -I I°ax: 509 -248 -7883 Project Location Yakima Billing Address 2400 West Washington Avenue Yakima W ashinr<ton 98903 Republic Parkins S)stenr . Contact: Vince 2001W est Mercer Street Suite #103 Seattle Washington 98119 Contact Nance Vin= Contact Phone # t 206 787 - 1249 item Description Qty Rate Measurement Total i }3.4 Asphalt Re lac . _ a . ' , , -- 0.00 0.000 03 Asphalt Asp la t f 12.170000 Lung Sum 12 0t)0A0'1' t._.. 1 1 t I Ibis hid proposal is hascd curt } mobitizationts). II mohilizntinns ar;. requ +real Subtotal Si2.000.1)0 duc to scheduling conflicts thin nre out of Stripe Ritc's control. n inohitirauion fee will tic charged. Excludes permits.layout. referencing. traffic control. rates tai and an) Lather S T (8.2%) 5984.00 items not speeificti :y mentioned in this hits proposal. Scheduled rtiork may be cat1CCU d h) unfavorable weather. Stripe, Rite. inc.. she, solely Total $12.984.00 determine miiimoral - de Breather conditions as Stripe Rite. Inc. heals the responsibility for . ink taI1 uinn and is in the hest position to judge uesrthet conditions ... Stripe li,i :e. Inc. strati not bear any financial responsibility for delay's caused by strikes. Please contact Cheryl Maden or Jake Bateman for scheduling wcattier conditions. dclnr .0 obtaining materials or other causes beyond its control. o f [ill projects ecis 5(9 48 - 33. . .. , . .. TRIBE p " " 2012 Estimate Inc. P.O. No. Estimator s Date Estimate # 2504 River Road Yakima, WA 98902 113 6/15/2012 12425 -Y Phon: 509 -248 -7233 Fax: 509- 248 -7883 Project Location r Yakima Air Terminal Billing Address 2400 West Washington Avenue Republic Parking System Yakima Washington 98903 200 West Mercer Street Suite g 103 Contact: Vince V. Seattle Washington } 98119 i Contact Name wince I Contact Piton # 206 7874249 1 Item Description Rate Measurement t tion Q P � Qty Total Project :dame' Section *2 Employer Parking, Lot 06.1 Low VOC Strip... Low VOC Striping- Stalls i 1,210 0.40 ,LFT 484.00T 06.5 LOW Voc Strip'... Low VOC Striping - Hashing Fire Lane ( Red Paint) 440 0.75 LFT 330.00T 06.3 Low VOC Strip.., Low VOC Stencils - Arrows 1 25.00. Each 25.00T 06.6 Low VOC Strip... Low VOC Striping - HDCP ( Blue) 3 65.00 'Each 195.00T Crack Scal 04.1 Crack Scaling Crack Sealing 2,126 0.55 LFT 1,169.30T Seal Cott 04.2 Asphalt Sealing Asphalt Scaling 21,400 0.12 Square Feet 2_568,00T 04.2 Asphalt Scaling Asphalt Scaling, - Double Coat Alligator Cracks 1.935 0,24 Square Feet 464.40Ti This hid proposal is based on ( ) mobilization(s). If additional mobilizations are required Subtotal $5,235.70 due to scheduling conflicts that are out of Stripe Rites control_ a mobilization fee will be charged. Excludes tserntits.'ayout. referencing, traffic control, sales tax and any other Sales Tax {8.2%) $429.33 items not specifically mentioned in thisbid propose!. — Scheduled w ork may he cancelled by unfavorablk ucather. Stripe Rite, lac:.. shall solely T 55,665.03 determine unfavorable weather conditions as Stripe Rite. Inc. bears the responsibility for installation and is in the hest positron to judge weather conditions. Stripe Rite. Inc. Shall not her any finaneial responsibility for delays caused by strikes. P lease contact C3rery1.c1?adel� or Jake Bateman for sc/sedttling 1 weather conditions, delay in obtaining materials or other causes beyond its control. of all projects 509 7233. TRIPE RAE 2012 Estimate inc. P.O. No, I Estimator Date Estimate # 2504 River Road Yakima. WA 98902 1 CAM 6!21/2012 12 -45 '7-Y Phone: 509- 248 -7233 Fax: 509- 248 -7883 Proiect Location Yakima Air Tenon! Billing Address 2400 V-.'cst Washingtn Avenue Yakima Washington 98903 Republic forking System Contact: Vince 200 West Mercer Street Suite 2 103 Seattle Washington - 91 11 Contact Name Vince Contact Phone # 206 - 787 - 1249 Item Description Qty Rate Total 06 1 Alt VOC Striping .ow - tJ(. Striping 2.680 0.40 1.F1' 1.072.(0'1' 06.3 Low VOC Strip... Low VOC Stencils - Arrows • 25.00 Each 50.001 06.3 Lot+ VOC Strip... Low VOC Stencils - " Employee` 1 25.00 Each 25.00T 06.6 Low VOC Strip... Low VW' Striping - 111X3' 1 65.00 Each 65.00T Crack Soil 04,1 ('rack Scaling Crack Scaling 9.7$0 0.55 1.1=1' 2.629.00 04.2 Asphalt Sealing Asphalt Sealing 24.150 0.12 !Square Feet 2.898.00T 04.2 Asphalt Scaling Asphalt Scaling - Double Coat Alligator Cracks i 2.46!3 0.2.1 I Square beet 590.401 L____ t 1 !'his hid proposal is based on l ) mobilirntinn(s1, 1Padditionni mobilir-tions are Inquired ; Subtotal S7,329.4() due to scheduling conflicts that are out of Stripe Rites con:rnl. a mobilization kc sSitl he charged. Excludes perrttits..lavout, rcfercnclor'. tragic control. saes tilt and any other o $601.0! !ems no: specifically mentioned in the. bid proposal. Scheduled e% ork may he cancelled by unfavorable weather Stripe Rite. Inc.. shall solely Total 57.930.41 deter -nine unia'•orahle weather conditions as Stripe Rite. }nc. beas the responsibility for tnst.'fiat'ton ;aid is in the hest position to judge weather conditions. Stripe Nita_ inc. shalt not bear any financial responsibility for dear, caused by strikes. :PICtrSC CprtlCrL'I Cheryl lifa(Ir.'rr or .lake Bateman for scheduling I t weather conditions. delay in nhtainins' materials or other cat:.a:s beyond its control. of all m'ecls 509 248 - 33 -