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Home My WebLink About2005-12-28 06-045 ORDERItem N0.0 6 December Mr 2005 Item/Subject: Order, Authorizing an Amendment to the Concession Agreement between In -Ter -Space Services, Inc. and the City of Bangor — Advertising, Bangor International Airport. In -Ter -Space Services, Inc., d/b/a Interspace All Advertising, has been the Airport's advertising concessionaire since November 1995. The original contract provided for a ten year mutual option to renew. As a part of the discussion of the option term, the Airport has negotiated a number of Improvements in the advertising program. Interspace will develop an integrated theme using innovative, energy efficient displays. They will be required to make a minimum capital invesbnent of $52,000 over the nest two years of the program. The term of the extension will be for five years with an automatic renewal of five additional years based on obtaining operating standards. During the mid portion of the previous ten year term, Airport staff felt that Interspace was not making an effort to sell and maintain adequate advertising. Over the last eighteen to twenty-four monNs, Interspace has addressed these concems and conditions have Improved. The operating standards included in the amended agreement will ensure that Interspace is held accountable to measurable standards if the agreement is to be further extended beyond the next five years. This has been reviewed and is recommended by the Transportation and Infr ordains.mml ee. "'Imd, Ciry Manager Budget Approval: France DiraNr Legal Approval: G l,amr 06 045 Asdanedto Councilor Dwftrieu December 28. 2005 CITY OF BANGOR (MILE.) order, A r¢irig an Amendment to the �n Agreement between In -Ter -Space Services, Inc and the City of Bangor — Advertising, Bangor International Airport WHEREAS, In -Ter -Space Services, Inc., d/b/a Interstate Airport Advertising, has operated Me display advertising program at Bangor International Airport since November 1995; and WHEREAS, the original contract included a mutual option to extend the agreement for an additional ten-year period; and WHEREAS, the Ory and In -Ter -Space wish to amend the contract prior to extending it as provided in the original agreement; and WHEREAS, under Me amended agreement, In -Ter -Space will be required M undertake a capital lnv ent in new 6splay fixtures, including state -of -Me -art high technology displays; and WHEREAS, in addiEon, L Ter -Space has agreed to certain measurable performance standards that must be achieved during the next five years of the agreement to allow the agreement M miNnue for an additional five years; NOW, THEREFORE, BE IT ORDERED By THE =( COUNCIL OF THE QTY OF BANGOR THAT The Oty Manager Is authorized to execute the attached amendment M concession agreement Ath In - Ter -Space Services, Inc for advertising concessions at Bangor International Airport. By fhe City Couml of the City of&ngo .- ORDERED, m CITY WMCIL December 28, 2005 Notion Made and Seconded For Y ssage y ITY CLMPA k 06-065 (.yiygd Authorizing av Poendneot to the Concession Agremeut Between In -Ter -Spec¢ ey . _ Advertising( Bs oreInternational Airport 06 045 AMENDMENTTO THIS AMENDMENT TO AGREEMENT ('Amendmenn is ordered into the day d 2W 5, by end beM1ceen the CITY OF BANGOR (t hereinafter ordered! to as Me "Cirl and IN-TERSPACE SERVICES, INC., QtYa INTERSPACE AIRPORT ADVERTISING (hereafter defamed to as 'Concessionaire). WITNESSETH WHEREAS, the City ends an operates the Bangor International Aimed, hereafter refened to as SIK: and WHEREAS, Ccar a ioreire has operated Me display advertising program at BIA since 1935, pumwMWawdain Md disiWCmeession Agr mo deed Novemb 15, 1985:and WHEREAS, born partes desire Ooncessenore make a wptal investment Into new display fixtures an oMer dlsplay-mlated capital Items Indudirg state d Me ad high-technology displays to capitalize on community modest at Me Airport: and WHEREAS, Ccr ce k alres Investment into the fadlity nal be designed W modestly inose adversig revenues to A only; and WHEREAS, the pares desire to emaNish a technology percentage fee Mr Me additional, more wetly, high-technology and Meme displays: and WHEREAS, the pares desire to establish a deduction from gross revenue to cover Inserted, maintenance ant programming fees paid to MiM parties; and WHEREAS, to pares desire Mat Me term of Me Agreement be extended for an additional pertn to allow Concessionaire sufficient time to remover its additional costs hram IN share of aWedising revenues. NOW, THEREFORE, Me City ant Concessionaire, in mreideradon of me mdual covenants herein contained and intending to be legally bound, hereby agree to amen the Agreement as follwn: 1. Ar 1, DEFINITIONSIsherebyamanedbyaddingeubs bnTto Ardet.6breadas follows: 'T. Any amount pale by ativercem in connection the programmorq• monNadng, maintaining or providing graphic ineetione for any nevi media technologies, including such tome as video, computer generated, digtal interactive and motion displays.' 2. Arch II. TERM Is herebyamened to read as tiM - -2.1 This Agreement shall become effective at exemeon. The term ("Term) of this Agreement shall commence on November 15, 2005, an condoms for five (5) years thereafter. The Termorthe Agraemertmaybe ndedforanadditmmlfive(5)year period, Mich option shall be deemed automatically exercised by Me Cly provided! Concessionaire satisfy during the initial five (5) years of Me Term Me following Operational Standards: e. Invest no ass Man $52.000 into the advertising program In Me first 24 monrnsofrne Agreement 06 045 b. Make at least NO tekphane sales calls per Agreement year, which calls shall he commented by Cmwessiunaire (subjectM availability of displays for sale); c. Ensure at least 90% of displays to be of Bangor Region advertkea; c. Wartery Airport walk -torus will be done by Imarmseows Local Service Representalive; e. Inumpaa to respond to Aryorl ksuea within 10 wordng days; I. Quarterly report M be cent to Arpaltlocumenting number of sales, calls and wneellat ons; it. Perform a minimum of two (2) onsite sales visits per year, subject M available im raw, It. Provide a afified CAD display designer for use on the pmjad as needed; I. Provide properties personnel sdfident ire display case relowticin at the Airport's request with 14 days notice; j. Provide mainterance staff and scheduling commensurate with fimlitks; k. Provide graphic guidance to aciveniars and obtain whiten approval by To Arport of sill graphic renditions poor to install; I. Assist Airpoft in public relations store indudirvi media release suppod; in Ensure no more than a fifteen percent (15%) decline In program gross revames horn 2004 over to initial 4 years, measured o nal basis, bamrg any declines in revenue due to external faders (i.e. Bangor domestic tafic declines, local economic declines, acts of terrorism, or a signlfiam decline In the tical publk's perception of this Amort). The rano may otherwise be extended only by mutual agreement of the parties. Tha Agreemrment shall wminue on a monMrto-moMh bask after the expiation of the term. unless either party terminates by giving Me other thing (30) clays written mom. 3. In Aticd VII. PRIMLEGE FEES, CHARGES AND ACCOt1MABLIW. Section 7.1 Is hereby amended to read as follows: "Cmosssionalre agrees M pay M the City thirty percent (Wk) of the Cross Revenue derived horn Me sale m stalic advertising add twenty-three penant (23%) of Me Gross Revenue deriam from the sale of motion, computer operated and carer hgMMGmnalogy display adverlong in Me Terminal Building. This percentage payment will be pad by Me twentieM (20th) day of the month following ach quarter of service, beglnnlng wish the ninth following Me first quarter of this Amendment Sudor payment will be made for the previous aloddar quarter on or about April 20tl1, July 20a. October 20e and January 21P of each adddar year. TM fish pementage payment made following the end of each complete calendar yarn will be "ect to nedu lion if scheduled domestic service enplanements at the Arpot during the previous calendar year of Me Agrecment as reposed by the FAq, shin fall len gement (10%) or mare below those recomed during 2004, by the same percentage as Me decline in scheduled domestic service enplanemenk. If during any year the scheduled domestic enpHnemenb decline twenty percent (20%) or more below Mose recorded during 2004, as reported by the FAA. Concessionaire may elect to terminate the Agreement and ANde 13 most be in efeU- 4. Except as expressly modified hereby, all other burns art conditions of Me Agreement shall continue in full force and affect and Me partes hereby b tty and confirm their rights, dudes add obligalions thereunder. 00 045 IN WITNESS WHEREOF, the above parties have execukd this Amendment as of the tlate and yearflnstabovewritten. AIRPORT: City of Bangor Approvetl as to form: Prim name: Print name: ACKNOWLEDGEMENT: StateMMame Penobscot. ss Bemre me, M the state and county aforesaid, personally spanned pith Mom I arta personally acqueimed, an who upon oath, acMoWedgetl Himself W be the Ahpod MaregedAiryod Directs of the City of Bauer, the within bmgairgf, a municipal ceryoratlon, and that he as went being authorized, being authorized so m do, execsted the foregoing Instrument for the Pureose Herein contained, by standing the name of the corporation by himself as Arend ManagedAiryod Director Wdtass my horel and seal, at Bente r, Penobscot County, Maine, this � day of 2005. BY Noah, Public Printed rams: My Commission Expires: CONCESSIONAIRE: IN -TER -SPACE SERVICES, INC, Llbla IMenpace Airport Ativertisirg Print os 045 Date: ACKNOWLEDGEMENT: State of ouray ane ) Lehigh Courtly ) Before me, Laura J. Adams, of the slab are county alehouse, personally appeared Marianna Llebertren, witll Mom I am personalty acquainted, an who upon catb, acknomdedgecl herself to ba Me PreaidenVCEO of INTERSPACE SERVICES, INC. dMa Interspace Airport Advedalrg, the within bagaism, a municipal coryoretion, and that he as such, being au horized, being aubodzed so to do, executed Ne foregoing Instrument for the purpose Herein contained by signing the name of to corpom4an by himself as AirpDR Maier/Aapod tirecbr. Witness my hand and seal, at Alentown, Pennsylvania, Na_ day of .2005 By: Nolary PWlk: NV Commission Expires: