HomeMy WebLinkAbout1992-11-09 93-15 ORDERCOUNCIL ACTION
Item No. 93-15
Date November 10 1992
Item/Subject: Fourth Amendment of Lease Agreement between the
City of Bangor, Maine acting by and through its Airport Department,
and APCOA, Inc.
Responsible Department: Airport
commentary: This is a renewal of the lease agreement between the
City of Bangor (Airport Department and APCOA for a final term of
three years. New terms have been negotiated and will produce
approximately $135,000 in additional income to the Airport Department
(above current reof approximately $300,000). Agreement has
been approved bytheuAirport Committee and would expire in February
of 1996.
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Asdociated Information:a.ar,.Q
Finance Director
citySom
Introduced for
Passage
First Reading
Referral Page of
A *i to Counc9or Saxi November 9, 1992
CITY OF BANGOR
(TITLE) (Orirer. ....... Authorizing .lease ..extension..xith_the...AeWa.. company..
for operation of Airport Parking Lot.
BY b CUV Co 1 of Ms City ofBsn .
ORDERED,
THAT the Airport Directorishereby authorized to execute
an extension of the lease agreement with the APCOA, Inc. for
operation of the Airport Parking Lot, for a final term of three years.
93-15
Authorizing lease extension with the APCOA
Company for operation of Airport Parking Lot
In City Council November 9. 1992 f
Passed
I
C1 Clerk `ny1//�✓��
V
93-15
36VALL/c,
10/5/92
]403
FOURTH AMENDMENT OF LEASE AOR8E16NT
This IgORTH AMENDMENT, made and entered into this day of ,
1992 by and between THE CITY OF RANDOM, MINE, acting by and through its
Airport Department, hereinafter referred t `Leeaor", and APCOA, ISO., a
Delaware corporation, hereinafter referred to as "Issues",
W I T NR
THAT, WHEABM, Leeaor and Airport parking Eastern States, Inc. entered
into a certain Lease Agreement dated January 9, 1969 for the exclusive opera-
tion Of all parking facilities in and about the existing terminal area at
the Bangor International Airport, Danger, Maine, or in any see terminal area
to which commercial scheduled airline operations may be changed during the
term of Such Lease Agreement or any extension or renewal thereof; and
SESSIONS, under date of January 13, 1969 said parties entered into a
(First) Supplemental Agreement to Lease Agreement; and
NNNESAS, on June 6, 1973 Leeaor and MOOR Division, ITT Consumer
services Corporation,o
by Statutory Swinger to Aimper Parking
seats= states, Inc., entered into Supplemental Agreement N0, 2 to Lease
Agreement; and
WHEREAS, Lessee herein is the successor in interest to ARCOA Division,
ITT Consumer Services Corporation; and
HERMS,AS, on January 23, 1986 Lessor and Leasee entered into a (Third)
Extension and Amendment of Lease Agreement; and
WHEREAS, by letter dated February 25, 1991 the term of said Lease
Agreement was
extended, commencing March 1, 1991, 0 month-to-month basis,
and as thus amended and extended ("the Lease Agreement') is in full force
and affect; and
WHEREAS, the parties 'hereto now, desire to further amend the Lease
Agreement as hereinafter set forth.
NOW, TIBREFORB,iconsideration of the mutual covenants and agree-
ments herein contained, it is agreed as follows:
1. TEAM. The term of the Lease Agreement is hereby extended for an
additional three years and three months, commencing December 1. 1992 and
terminating February 29, 1996 ("Extended Term"), us provided for aM i
Satisfaction of 'section 4 (Option to Extend) in said (Third) Extension and
Amendment of Lease Agreement.
93-15
2. RENTAL. %££¢dive December 1, 1992 Lessee agrees to pay Lessor
as ant a unt equal to Ninety Three and one-half percent (93.5%) of the
monthly Net aProfit, as said term is hereinafter d,fined. Said ... tai shall
be paid to Lessor on the 25th day following the and o1 each month during the
Extended Term herein. (Payment of minimum annual Guaranteed rent shall no
longer be required.)
3. GROSSPTS OPERATING NET
PROPIT. "Grose
Receipta' Shall Mean ell a collected by Lessee freethe parking of motor
vehicles on the Premises, including receipts, if any, from restaurant valida-
tions, whether on an hourly, daily, weekly,r monthly basis, lees all
refunds, discounts and allowances made by Lesseetits cuotocars and less
any sale use,
antee, Occupancy, groes receipts tax,, parking tau, any
Other tax or charge collected by Lessee on behalf of and payable to the to,
collector.
"Operating Expenses" Shall mean
all expense related to the operation
of the Premises, including but Not limited to, lienee and permit fees, pay-
roll, payroll taxes, employee benefits (including workman's compensation),
nifotma, supplies, tools,, appliances, maintenance and repair costa, book-
keeping and administrative expenaee, utilities, anowplowing and
moval, rental of machinery and equipment, tickets, postage, stationary,
inauxance
antl bond expenses, losses resulting £tom vehicle damage to the
extentnot ro red by insurance (including attorney's fees 'antl court costa
to defend same), and losses due to theft or robbery. Such expenses shall be
c
paid from gross receipts if Sufficient. "Operating expenses" shall not
include landscapingfor the Premises,. Lessor's carrying costs for the
Premises, such as depreciation, building i real estate taxes and
ante, n Lessor's personal property, etc., payemnt of such
expenses being the obligation of Lessor.
"Get Profit" is the balance remaining after deducting all Operating
Expenses from Gross Receipts.
6. ACCOUNTING. Lessee Shall keep complete and ac accounting
reports and records of Grose Receipts, Operating Expenses and Net Profit
Rath respect to the Premises. such reports and records Shall be kept in
accordance11th good accounting practices. Commencing on January 25, 1993
and on the 25th day ofeach calendar month thereafter during the Extended
Tarn herein, Leasee Shall furnish to Lessor a statement showing all Gross
Receipts, Operating Expenses, and Net Profit for the preceding calendar
month, together with Supporting documentation for all Operating Expenses and
payment of the percentage rental, as aforesaid.
S. OPERATING EXPENSE BUDGET.,shall submit to Lessor a
operating expense budget no later than thirty (30) days prior to the
367/ALL 2
93-15
commencement of each lease year. Such budget shallOperating
Expended for the categories Of salaries and wages, payroll taxes and Lene-
fits, repair and maintenance, Insurance and bonds, utilities, uniforms,
tickets and supplies, onowplowing antlnow val, and Other Operating
Expenses. Once approved approved by Laa Sor. the budget (excluding snowplowing and
snow removal) shall not be exceeded In total by Lessee without the express
written consent of Leeeor. Attached hereto marked Exhibit "A" is the
proposed Operating expense Budget for the year commencing December 1, 1992.
6. hasun psRrohmAMCB ASIIEW. Lessor, within thirty (30) days
after the end of each lease "" of operation, shall evaluate Leeeee'e
performance during the, previous lease year of operation and notify Lessee of
its evaluation in the areas listed below. The judgment of Lessor shall be
the final decision in the Annual Performance Review and any award made as a
result thereof.
(1) Operating Expense Budget. Annual expenses equal t0 0
'lase than the actual Operating Expense Budget, as revised
and approved by Lessor; (up to 20 points)
(2) Reverse Control. Performance in minimizing theft, fraud,
and unauthorized patron exit from the parking lot; (up to
20 points)
(3) - customer s rveQ. Maintaining professional, competent and
effective
customer Services with courteous staff behavior;
(up to 20 pointe
(4) Geneeal Management. Includes local end Corporate manage -
meet performance) (up to 30 paints)
(5) Annual Airport goals.shall establish specific
goals for Lessee within aathirty (30) days after the
beginning of each year of operation; (up to 10 pointe)
(6) general Parking Pacllity Maintenance and Appearance.
Maintaining operating appearance.efficiency, and
cleanliness of facilities and personnel. at or above
acceptable levels; fog to 10 Ponta)
(7) Prompt and Accurate Reporting. Submitting timely reports
with minimal or no Secure; (up to 10 pointe)
With a total Paint score of 80 or Lessor -shall award three-
quarters of one percent (0.75%) increase in Leaned's share of Net Profit and
e
reduce LSOOGO'd rent accordingly (i.e., from 93.5% to 92.75%) for the ensu-
ing
year of the LeaseAgreement, but such amount Shall not be reduced to
lees than 92.0% over the remaining term of the Lease Agreement.
367/ALL
93-15
]. INSVNANCB. Leoeee shall Obtain and keep an force during the
Extended Term of the Lease Agreement anna policy with a reputable
company for Garage Liability Insurance or comprehensive General Liability
insurance in
combined single limit of Ona Million Dollars (§1,000,000) per
occurrence for bodily injury and property damage. Lasso shall be named a
additionalured and furnished with certificate evidencing such
coverages. a Such certificate shall be endorsed to provide for thirty (30)
days- written notice to Lessor prior t0 termination. Lessee shall also
provide workers- compenaation coverage in accordance with applicable laws.
S. PANAING Fares. Effective upon completion of the expansion and
reconfiguration of the new parking let, but no later than December 1, 1992,
parking rates shall be in accordance with the following schedule,
Short Term
§ .JS
per
half-hour
Each half hour
§ .75
per
half-hour
Daily Maximum to 24 hours
7.50
per
day
Long_
First two house or part thereof
§ .JS
per
half-hour
Each additional hour
1.00
par
hour
Daily maximum to 24 hours
6.00
per
day
Weekly (5'9 days)
25.00
per
week
Lenses Shall submit recommended changes in parking rates an an actual
basin with its submission of the Operating Expense Budget for consideration
by Lessor. Any proposed changes in parking rates my be rejected by Lessor.
9.LEMENT OF METAL. For the period.. flow March 1, 1992 to
mb
Nover 30981992 rent shall be paid by Leevee in an anount equal to the
greater of the following;
(A) Minimum actual guaranteed rent of §35,000, payable in equal
monthly installments Of §5000.00 each, in advance, on the first day of
rch, 1992 and On the First day of each month thereafter, to Novena -
bar 30, 1992 (bamsor acknowledges that all monthly installments due to
date hereof have been paid): or
(e( The Following pemenbagae of Grose Receipts as calculated for
said nine (9) month period:
(1) 251 of Gree Faced" collected from §39,500, up to
§56,250, plus
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(ii) 50% of Gross Receipts collected in excess Of
656,250, up to 675,000, plus
(111) 60% of Grose Receipts Collected in excess of
675,000, up to $112,500, plus
(iv) 70% of Groes Receipts collected in excess of
$112,500, up to $262,500. plus
(v) 758 of Grose Receipts in exoesB of $262,500.
within30days after the end of said nine (9) month period, Lessee
shall furnish to Leeaor a statement showing Gross Receipts collected from
the Premises during said nine month period add the amount of percentage rent
due hereunder, and simultaneously therewith Leasee shall .pay Lessor the
Percentage rent determined to he due end payable (after first crediting
Leasee with payment of the minimum annual guaranteed rent, as aforesaid).
Except as hereinexpressly amended: all other terms and conditions in
said Lease Agreement remain the caneand continue in fell farce and effect.
IN WI"ESS sauddhOF, the parties hereto have executed .this Fourth
Amendment of Lease Agreement the date first Wove written.
WITNESS:
WITNESS:
1
CITY OF BANGOR, MAINE, acting by
and through rte Airport Oeparouser
By
36VALL 5
EXHIBfT A
Bangor International
Airport
Operating Expense .Budget
December 1, 1992 to November 30, 1993
APCOA, Inc.
Salaries and wages
$ 75,075
Payroll Taxes and Benefits
14,264
Repair and Maintenance
4,500
Insurance, Bonds and Claims
13,563
Utilities
3-,000
Uniforms, Tickets and Supplies
4,500
Telephone and Postage
2,000
Service Vehicle 6 Operating Coats
81000
Other Operating Expenses
2,398
Sub Total $ 127,300
Snow Plowing and Removal 81000
Total $ 135,300
Assumptions:
1. 24 hour per day operation of a single exit lane.
2. 'Excludes credit card acceptance. program.
3. -City a responsibility for all landscaping, lawn
maintenances and plant care on .and around the Premises.
APPROVED:
City of Bangor
by
its
date