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HomeMy WebLinkAboutbocc.ord.014.1999AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO APPROVING A LICENSE AND USE AGREEMENT FOR THE AIRPORT PAID PARKING FACILITIES BETWEEN AMPCO SYSTEM PARKING AND THE ASPEN/PITKIN COUNTY AIRPORT MAY 1, 1999 TO APRIL 30, 2002. Ordinance # `,9- / Cj, Series of 1999 RECITALS 1. Pitkin County, a Colorado home -rule county, is the owner, sponsor and operator of the Aspen/Pitkin County Airport (Sardy Field), located in the vicinity of Aspen, Colorado, and has the authority to regulate commercial activities and to lease and license space at the Airport. Pursuant to, inter alia, 1973 C.R.S. 41-4-101 et seq., 30-35-202, Title IV of the Pitkin County Code, and Section 8.7 of the Pitkin County Home Rule Charter; and 2. The Aspen/Pitkin County Airport has conducted a competitive procurement process for the selection of an operator of the airport's paid parking facilities; and 3. AMPCO System Parking was selected as the top -ranked proposer; and 4. AMPCO System Parking is qualified to use the airport paid parking facilities at the commercial airline terminal to provide paid parking services to users of the airport. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, THAT: Section 1. Approval and Adoption. That the Lease and Use Agreement between the County and AMPCO System Parking, attached as Exhibit A, and incorporated herein by this reference, is hereby approved and adopted. Section 2. Authority to Execute. The Chair (or Vice -Chair) of the Board of County Commissioners is hereby authorized and directed to execute on behalf of the County this Ordinance and the subject documents to accomplish the transactions that have been approved as to form by the County Manager and County Attorney. Section 3. Copies for Public Inspection. That true and correct copies of the License and Use Agreement (Exhibit "A") shall be kept available for public inspection during normal business hours in the office of the Pitkin County Clerk and Recorder, Pitkin County Courthouse, 530 E. Main, Aspen, Colorado 81611, and the office of the Director of Aviation, 0233 E. Airport Road, Suite A, Aspen, Colorado 81611 (970) 920-5384. Section 4. Public Hearing. That a public hearing on this Ordinance shall be held at 2:00 p.m., local time, or as soon thereafter as the conduct of business will allow, on March 24, 1999 in a location identified by a notice in the Pitkin County Courthouse, Aspen, Colorado. Section 5. Publication. That this Ordinance shall be published prior to and after adoption in full, but without exhibits. INTRODUCED, FIRST READ (by title only), ACCEPTED BY A MAJORITY OF THE BOARD AND SET FOR PUBLIC HEARING AT A PUBLIC MEETING ON THE loth DAY OF March, 1999. NOTICE OF PUBLIC HEARING, INCLUDING THE TEXT OF THE FULL-RESOfU-'FI9N {without exhibits) PUBLISHED (no less than ten days in advance of the public hearing thereon) IN THE ASPEN TIMES ON THE 13th DAY OF March, 1999. FINALLY ADOPTED, UPON SECOND READING AND AFTER A DULY -NOTICED PUBLIC HEARING BY A MAJORITY OF THE BOARD AT A PUBLIC MEETING ON THE.24&,DAY OF Masch,.i999. PUBLISHED (without exhibits) AFTER FINAL ADOPTION IN THE A PEN TIMES ON THE 3rd DAY OF April, 1999. C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\ORDinance 1999 paid parking contract.DOC Date APPROVED AS TO FORM: John Ely, County RECOMMENDED FOR APPROVAL: Scott Smith, Director of Aviation BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO l Sl�_ Q L�eslie J. Lamont, te(7 9 MANAGER APPROVAL: Oat Tom Oken, Director of Administrative Services -2- CAhome\ WORD \SUE\ CONTRACT \LANDSIDE\PaidPark\ORDinance 1999 paid parking contract.DOC CONTRACT # Table of Contents Airport Paid Parking Lease and Use Agreement APPROVED BY ORDINANCE # i9/V I. PROPERTY, TERM, USES, REQUIREMENTS, RESTRICTIONS 2 A. PROPERTY: 2 !. Demise of Property......... 2 2. Description of Property.... 2 3. Map of Property 2 4. Restricted entry/occupancy. - 2 5. Additional Property 2 6. Acceptance of Property. 3 B. TERM. 3 1. Initial Term 3 2. Renewal Term 3 3. Continued Occupancy with Consent of County (Holdover).. 3 4. Continued Occupancy without Consent of County 4 C. USES 4 1. Use of Property: - 4 2. Required and Permitted Uses 4 3. Exclusive Right to Paid Parking Facilities. 4 4. Prohibited Uses 4 D. REQUIREMENTS• 5 1. Requirements of Lessee's Operations 5 2. Service 5 3. Trade Fixtures, Furnishing and Equipment. 5 4. Signage 5 5. Environmental Quality Improvement Plan (EQIP). 5 E. RESTRICTIONS 7 I. Restrictions on Lessee's Operations. 7 2. Lessee Subject to Restrictions 7 II. MINIMUM ANNUAL GUARANTEE AND PERCENTAGE OVERRIDE, ADDITIONAL RENT, PAID PARKING FEES & CHARGES, PAYMENTS, SURETY, AND REPORTS AND AUDITS 8 A. MINIMUM ANNUAL GUARANTEE AND PERCENTAGE OVERRIDE 8 1. Definition of Minimum Annual Guarantee and Percentage Override. 8 a) For the Initial Term 8 b) For the Renewal Term 8 2. Calculation MAG and Percentage Override. 8 3. Definitions. . 9 B. ADDITIONAL RENT 12 C. PAID PARKING FEES AND CHARGES 12 D. PAYMENTS 13 E. SURETY 15 1. Performance and Payment Security.: 15 2. Types of Security.. 15 3. County Use of Required Security 15 4. County Return/Release of Required Security. 16 F. REPORTS AND AUDITS 16 1. Lessee Reports 16 2. County's Right to Audit 19 III. COUNTY RESERVATIONS OF RIGHTS. 22 IV. RELEASE, INDEMNITY AND INSURANCE. 25 A. DEFINITIONS 25 B. RELEASE AND INDEMNITY 25 C. INSURANCE 26 I. Lessee's Required Insurance. 26 2. Certificates of Insurance 27 3. County Insurance Obligations 28 V. OPERATION AND MAINTENANCE OF PROPERTY. 30 A. HOURS OF OPERATION. 30 B. FIRST-CLASS MANNER 30 C. COLLECTION OF FEES 30 D. ACCEPTANCE OF CREDIT CARDS 30 E. SATISFACTORY REVENUE CONTROL 30 F. STAFF 30 G. DISPLAY OF RATES/TELEPHONE NUMBER 31 H. CUSTOMER COMPLAINT RESOLUTION 31 I. EMPLOYEE LOT 31 J. MAINTENANCE AND REPAIR 32 I. County's Obligation 32 2. Lessee's Obligations: 32 K. MODIFICATIONS, ALTERATIONS AND IMPROVEMENTS TO PROPERTY. 33 L. OTHER OPERATIONAL MATTERS: 35 1. County Obligations 35 2. Lessee's Obligations 35 VI. ASSIGNMENT 40 A. ASSIGNMENT PROHIBITED WITHOUT COUNTY CONSENT 40 B. ASSIGNMENT RELATING TO RENEWAL TERM 40 C. STANDARDS AND PROCEDURES TO OBTAIN COUNTY CONSENT 40 VII. DEFAULT AND TERMINATION 43 A. DEFAULT 43 BI. TERMINATION 48 VIII. GENERAL PROVISIONS 51 A. COORDINATION WITH OTHER AIRPORT USERS 51 B. SURRENDER OF PROPERTY/LESSEE'S PERSONAL PROPERTY 51 C. COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS 51 D. LESSEE'S PERSONAL PROPERTY/TRADEMARKS 53 E. SUBSTITUTION OF PITKIN COUNTY AIRPORT FACILITIES 53 F. DESTRUCTION OF BUILDINGS AND OTHER IMPROVEMENTS 55 G. RIGHTS OF SEIZURE 55 H. RELATIONSHIP OF PARTIES 55 I. NON -LIABILITY OF COUNTY'S AGENTS AND EMPLOYEES 56 K. REPRESENTATIONS OF LESSEE. 56 L. ENTIRE AGREEMENT/MERGER 56 M. NO ORAL MODIFICATIONS 57 N. NO WAIVER 57 O. NO PRESUMPTION AGAINST DRAFTING PARTY 57 P. ATTORNEY'S FEES 57 Q. GOVERNING LAW/VENUE 57 R. BINDING EFFECT 57 S. CAPTIONS 57 T. DUPLICATE ORIGINALS; RECORDED SUMMARY 57 U. AUTHORITY OF LESSEE'S REPRESENTATIVE 58 (Effective 5/01/99) ASPEN/PITKIN COUNTY AIRPORT AIRPORT PAID PARKING FACILITIES LEASE AND USE AGREEMENT May 1, 1999 to April 30, 2002 between. AMPCO System Parking and Pitkin County, Colorado THIS LEASE AND USE AGREEMENT, made as of the date last below signed, is by and between the BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, a Colorado home -rule County ("County" or "County"), as County/Permittor, and AMPCO System Parking ("Lessee"), a California corporation, as Lessee/Permittee. WHEREAS, County is the owner, operator and sponsor of the Aspen/Pitkin County Airport (Sardy Field), located in Pitkin County in the vicinity of Aspen, Colorado (hereinafter the "Airport"), at which it has made available certain public airfield facilities, certain areas for use as public paid parking facilities, a commercial airline terminal and facilities, a general aviation terminal and facilities, certain areas for public use, certain areas for exclusive and non-exclusive commercial use (subject to lease, license or permit) and certain reserved areas; and WHEREAS, County has the authority to operate and manage the Airport, to lease and license the occupancy and use of Airport land areas, buildings and facilities, and to permit and regulate commercial activities thereon, pursuant to, inter alia, C.R.S. Sections 41-4-101 et seq., 30-11-107, as amended, and Section 8.7 of the Pitkin County Home Rule Charter; and WHEREAS, Lessee is engaged in the business of operating paid parking facilities and it desires to occupy and use some of the areas and facilities of the Airport for that purpose, NOW, THEREFORE, for and in consideration of the mutual covenants, terms and conditions contained herein, the County and Lessee do mutually undertake and agree as follows: -1- C:\home\WORD\SUE\CONTRACT\IANDSIDE\PaidParkWew PAID PARK contract.DOC I. PROPERTY, TERM, USES, RESTRICTIONS A. PROPERTY: 1. Demise of Property. In consideration of Lessee's payment of all rent and other money due, and of Lessee's full and faithful performance of and compliance with all other terms, conditions and covenants hereof, and subject to the rights reserved by County herein, County hereby grants to Lessee, and Lessee hereby accepts from County, the right to occupy and use that portion of the land areas and improvements of the Airport, Pitkin County, Colorado identified as the Airport Paid Parking Facilities (hereinafter, the "Property"), depicted on Exhibit "A," and described below: 2. Description of Property. County grants to Licensee the right and privilege to occupy and operate for the term and upon the covenants, terms, and conditions set forth herein, the public paid parking facilities serving the commercial airline terminal at the Airport, presently consisting of approximately 363 motor vehicle public parking spots and serving any new commercial terminal to which scheduled airline operations may be changed during the term of this Lease and Use Agreement, including but not limited to, the right of ingress and egress by vehicles from all terminal access roads (hereinafter the "Property"). This Agreement shall be deemed an exclusive right, subject to continuing federal and state legislation, regulation, interpretation and case law enabling the County to grant such rights. 3. Map of Property. The Property is depicted on Exhibit "A" attached and incorporated by this reference. The County and Lessee acknowledge that such Exhibits may not be to scale and shall be replaced, upon the mutual agreement of the parties, at such time as scale maps based on actual survey data become available. 4. Restricted entry/occupancy. Any entry on, occupancy of or use of Airport land areas or improvements by Lessee that is not expressly demised and described by this Lease shall be and is hereby prohibited, except by separate prior written permission from the County and under such terms and conditions as the County, in its sole discretion, may determine. 5. Additional Property. If, during the term of this Agreement, additional Property is made available by or permitted by Pitkin County for occupancy -2- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC and use by Lessee, Lessee and County shall enter into good faith negotiations for the commercially reasonable fees or charges to be paid by Lessee prior to such additional use and occupancy. 6. Acceptance of Property. The Lessee agrees that the Property and parking equipment on the Property has either been occupied or inspected by Lessee at the beginning of this Lease term and is accepted and initially will be occupied by Lessee on an "as is" basis except for latent defects. B. TERM. The term of the occupancy and use of the Property by Lessee shall be as follows: 1. Initial Term. The Initial Term of this Lease shall be three (3) years, commencing at 12:01 a.m. MDT, May 1, 1999, and expiring at 12:00 p.m. MDT, April 30, 2002, unless earlier terminated or renewed as provided herein. 2. Renewal Term. County shall have the sole option of extending the Lease and Use Agreement one (1) Renewal Term of two (2) years, commencing May 1, 2002, and expiring April 30, 2004, under the following conditions: a) Notice to Lessee. County must give Notice of its intent to exercise this option between January 1, 2002 and April 30, 2002. b) Status of Lessee. Lessee shall, at the time of such Notice and until the end of the Initial Term, not be subject to an uncured default. c) Terms and conditions. The terms and conditions of this Renewal Term shall be those provided by this Lease, as amended, by the mutual agreement of the parties. 3. Continued Occupancy with Consent of County (Holdover). If Lessee remains in occupancy of the Property after the expiration of Initial or Renewal terms with the consent of County, Lessee's interest in the Property from and after that date shall be deemed to be month -to -month, pursuant to the terms and conditions of this Lease, or as the parties may otherwise agree in writing, or, if the parties shall fail to agree in a -3- C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidPark\New PAID PARK contract.DOC reasonable time, upon such other terms and conditions as may be established by the Airport, in its sole discretion, upon ten (10) days' notice to Lessee. 4. Continued Occupancy without Consent of County. If Lessee remains in occupancy of the Property without the consent of County, it shall have the obligation to pay the Minimum Annual Guarantee for such period at a rate of 200% of the last effective rate hereunder. C. USES 1. Use of Property. Lessee agrees to use of the Property as specified in this Part I, C. 2. Required and Permitted Uses. Lessee shall occupy and use the Property solely for the purpose of operating the Airport Paid Parking Facilities. 3. Exclusive Right to Paid Parking Facilities. County acknowledges that Lessee's proposal and agreement to operate the parking facilities is based on a representation that only one paid parking facility was planned at the Commercial Airline Terminal for the term of this Lease. 4. Prohibited Uses. Lessee shall not occupy, use, permit or suffer the Property or any part thereof to be occupied or used as follows: a) For any use, activity, display or product not specifically permitted herein; any such use shall be and is hereby prohibited, except as by separate prior written permission from the County and under such terms and conditions as the County, in its sole discretion, may determine. b) For any occupancy, use, business, activity or purpose that is unlawful or illegal or in any way in violation of any present or future statutes or ordinances or formally -adopted rules, regulations, requirements, orders, directives of the United States of America, State of Colorado, County of Pitkin, or other lawful authority whatsoever. c) For any activity deemed by the County to be hazardous, or in such manner as to constitute a nuisance of any kind, or which will -4- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC in any way increase the rate of fire, casualty or liability insurance upon the Airline Terminal or the Airport. d) For any auction, fire or bankruptcy sale, without County's consent. e) For use of the Property, with or without charge, by any rental car company, regardless of whether rental car company does or does not possess a license and use agreement with the County, or is located on -site or off -site of the commercial terminal facilities. This specifically does not pertain to rental vehicles while they are leased by customers, but does pertain to Property use by rental car companies for storage, customer pick-up, and/or customer drop-off. D. REQUIREMENTS: 1. Requirements of Lessee's Operations. Lessee, in the conduct of its operations, shall undertake an affirmative obligation, for the term of this Lease, and as it may be renewed, to operate the Airport Paid Parking Facilities at times and in a manner described in this Lease. 2. Service. The airport paid parking facilities shall be operated and managed in an efficient, businesslike and courteous manner. 3. Trade Fixtures, Furnishing and Equipment. Lessee shall provide sufficient trade fixtures, furnishings and equipment to operate airport paid parking facilities. 4. Signage. All signage as required for the operation of the Property, and as further described in Section V, shall meet the requirements of the Pitkin County Land Use Code and the Airport Signage and Graphic Standards. 5. Environmental Quality Improvement Plan (EQIP). The County's stated goal is to plan for the reduction or elimination and continually reduce or eliminate environmental degradation caused by the operations of Airport's lessees, licensees and permittees (LLPs) in all areas including, without limitation: pollution by CO, CO2, CFCs, particulates, and other internal combustion engine emissions; traffic congestion; gasoline consumption; and solid waste. -5- C:thome\WORD\SUE \CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC It is the express intention of the County that all Airport LLPs strictly comply with all environmental rules and regulations as outlined in the County Land Use Code, and be sensitive to all present and future environmental issues. The County gives notice that environmental compliance and sensitivity to environmental issues are and will be substantial factors in future performance reviews and procurements. The following EQIP is a material element of this Lease and a breach of EQIP obligations is a material breach. Until the expiration or termination of this Lease, Lessee shall diligently accomplish and/or comply with an Airport EQIP as follows: a) Promptly after the execution of this Lease, Lessee agrees to institute the following operational practices: (1) Chloroflourocarbons (CFCs). No products containing CFCs are to be sold or used in operations or maintenance. (2) Hazardous materials. Lessee shall not authorize the use of' or storage on the Property of any hazardous materials, including those defined as such by state and federal law. (3) Energy conservation. Lessee shall take all reasonable steps to reduce energy consumption on or concerning the Property. (4) Auto emissions. Lessee shall take all steps to reduce motor vehicle emissions and traffic congestion with respect to product deliveries and employee transportation including, by way of example, providing employees with free or discounted RFTA bus passes for transportation to and from work. -6- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC E. RESTRICTIONS 1. Restrictions on Lessee's Operations. Lessee, in the conduct of its operations, shall be subject to the following restrictions: a) Lessee shall not place any objects, displays or signs upon the Property, except of such design, content and structure as shall be approved by County, provided that County's approval shall not be unreasonably withheld. b) Lessee shall not knowingly or willfully divert or permit the diversion of business from the Property with the intent of evading Airport payments, regulations, restrictions, requirements, fees or charges. c) All revenues derived from the conduct of business prohibited or restricted by this Section shall be includable for purposes of percentage of Gross Revenue calculations and payments pursuant to this Agreement. d) Lessee shall not hold or control, directly or indirectly, any rights or obligations in the management, operations, property, inventory, ownership, voting or financing of any other Airport LLP or entity doing business on, at or through the Airport without the County's consent, in its reasonable discretion. 2. Lessee shall be subject to any restrictions as outlined in Section V, describing the operation of the Property. -7- C:\home\WORD\SUE\CONTRACT\IANDSIDE\PaidPark\New PAID PARK contract.DOC II. MINIMUM ANNUAL GUARANTEE AND PERCENTAGE OVERRIDE, ADDITIONAL RENT, PAID PARKING FEES & CHARGES, PAYMENTS, SURETY, AND REPORTS AND AUDITS A. MINIMUM ANNUAL GUARANTEE AND PERCENTAGE OVERRIDE 1. Definition of Minimum Annual Guarantee and Percentage Override. a) For the Initial Term (May 1, 1999 to April 30, 2002), Lessee shall pay a Minimum Annual Guarantee (MAG) of $120,000 per contract year (May 1 to April 30), plus seventy-five percent (75%) of the Lessee's annual "Gross Revenues", all as defined herein, in excess of $300,000 per contract year. b) For the Renewal Term (May 1, 2002 to April 30, 2004) of this Agreement, Lessee shall pay a MAG of $120.000 per contract year, plus seventy-five percent (75%) of the Lessee's annual "Gross Revenues" in excess of $300,000 per contract year. For purposes of this Agreement, a "contract year" for the MAG shall be May 1 through April 30 annually. 2. Calculation MAG and Percentage Override. The payments of the monthly MAG and monthly Percentage Override amounts shall be calculated as follows: a) On or before the 20th day of the second and each successive month of the term of this Agreement and the first month after the expiration or termination of this Agreement, Lessee shall submit a statement showing the Lessee's Gross Revenues for the preceding month, said statement to be in form approved or required by the Airport Manager and the County's Finance Director and signed and certified to be complete and accurate by an employee of the Lessee authorized to make such a certification. b) Reconciliations of the monthly percentage fee that may be due shall take place on the twentieth (20th) day of each month of the term of this Agreement, or promptly at the end of any term. If monthly revenues exceed $25,000 (twenty-five thousand dollars) in -8- C:\ home \WORD\SUE\CONTRACT\LANDSIDE\PaidParkWew PAID PARK contract.DOC any month, then seventy-five percent (75%) of the total monthly revenues will be calculated as due to the County. For example, if revenues for January are $33,000, then $24,750 will be due as the monthly percentage override. If revenues for May are $24,000, then no monthly percentage override is due, and only the monthly MAG payment of $10,000 is due. c) Immediately upon Lessee's receipt of revenues from its activities hereunder, such funds representing payments owed to County hereunder shall be vested in and become the property of the County, and Lessee shall hold and be responsible for said funds as a Trustee until the same are delivered to the County. d) Once annually in the month following the end of the contract year and on the twentieth (20th) day (or May 20th annually), a reconciliation of the annual MAG and annual percentage override shall take place. Lessee shall submit a statement showing the Lessee's Gross Revenues for the preceding contract year and the total amount of MAG and percentage override paid to the County for the preceding contract year. Said statement is to be in a form approved or required by the Airport Manager and the County's Finance Director and signed and certified to be complete and accurate by an employee of the Lessee authorized to make such certification. If the Lessee's total annual gross revenues exceed $300,000 (three hundred thousand dollars), then seventy-five percent (75%) of the total Gross Revenues should have been paid to the County for the contract year. If the Lessee's total annual gross revenues are $300,000 (three hundred thousand dollars) or less, then $120,000 (one hundred twenty thousand dollars) should have been paid to the County for the contract year. If any shortfall in payment to the County is calculated, then that amount shall be immediately due to the County, If any overage is payment to the County is calculated, then that amount shall be immediately credited to the Lessee, or in the event of the termination of the contract for any reason, then that amount shall be credited to any sums owed by Lessee or applied to any debt owed to County. 3. Definitions. Definitions for the purposes of this Agreement, including the calculation of the Percentage Override, shall be as follows: -9- C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidParK\New PAID PARK contract.DOC a) "Gross Receipts, Gross Revenues, Gross Sales" as used in this Lease shall mean: All sums chargeable by Lessee, whether received or not, from the parking of vehicles whether on an hourly, daily, or weekly basis, and shall be deemed received at the time the sales, lease or service transaction occurs giving rise to Lessee's right to collect said monies, regardless of whether said transaction was conducted in person, by telephone, by wire (FAX, telex, etc.), by mail or by any other method of information transmission, whether the transaction was for cash or credit, and if for credit, regardless of whether the Lessee ultimately collects the monies owed for said transaction from the customer involved, and not including any charges incurred by Lessee for towing of vehicles, and minus the following deductions: Federal, state or local sales taxes separately stated and collected from customers; amounts Lessee receives, or is entitled to receive, for the sale, disposition, loss, repair, replacement, conversion, or abandonment of Lessee's stock, equipment, business personal property, and trade fixtures; and amounts Lessee identifies as point -of -sale discounts, refunds or customer service adjustments, as long as such discounts, refunds and adjustments are separately identified and documented and are part of a written Lessee business policy for such discounts, refunds or customer service adjustments, which policy is approved in advance, in writing, by the County. -10- C:\home\WORD\SUE\CONTRACIILANDSIDE\PaidPark\New PAID PARK contract.DOC All revenues excluded under this paragraph shall be reported to the County and subject to verification and audit as provided herein. b) Equitable Adjustment. "Equitable Adjustment" shall mean a temporary or permanent adjustment in the revenue and/or the expense structure of this Lease that is negotiated by the parties in response to some future change in circumstances as outlined below. An Equitable Adjustment may provide for a net increase or decrease in the MAG and Percentage Override and non -monetary obligations. An Equitable Adjustment shall be the minimum adjustment that is commercially reasonable under the circumstances. (1) Mediation in Case of Negotiation Impasse. A good faith negotiation to determine the Equitable Adjustment first shall be undertaken by Lessee and the Airport. If agreement is not reached, the matter shall be submitted to a neutral, third party mediator. This mediator shall be mutually selected and compensated by the Lessee and the County and shall be, unless expressly agreed otherwise, The American Mediation Association. The mediator shall establish the procedures for the mediation (e.g. required submittals, deadlines, and manner of presentations), but it shall end with a written report and recommendation. The mediation shall be non -binding, but if either of the parties disagrees with the report, it shall have the following remedies: (a) If Lessee disagrees, it may either be bound by the mediation decision or terminate the lease upon 120 days' notice. (b) If the County disagrees, it may either be bound by the mediation decision or terminate the lease upon 90 days notice. (2) The following situations will be eligible for an Equitable Adjustment: (a) If the airport runway is closed due to repair work. (b) If the commercial air carrier terminal is closed due to acts of casualty or if the commercial air carrier terminal is closed due to repair work being conducted on the runway. -11- C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidPark\New PAID PARK contract.DOC (c) For conditions outlined in Section III (D) and/or Section III(I) and/or Section VIII (F). (d) If all commercial air carrier service is suspended for any reason, except for flight cancellations occurring in the normal course of airline business, such as weather and/or mechanical cancellations. (3) The following situations will NOT be eligible for an Equitable Adjustment: (a) An increase or decrease in commercial air carrier enplanements. (b) If some commercial air carrier service is suspended for any reason, but there is at least one commercial air carrier providing service to the airport. B. ADDITIONAL RENT Additional Rent. In addition to the MAG and Percentage Override, Lessee shall pay Additional Rent, as and when applicable, as follows: Advances, costs, fees and expenses incurred by County in connection with or arising from a default by Lessee, as provided below. One example of such a fee would be bank fees associated with drawing on the Lessee's surety. Such rent, fees or charges established for occupancy and use of additional Property as provided herein. One example of such a rent would be rent in the amount of 200% of the annual MAG due to the County in the event of Lessee's continued occupancy without the consent of the County (as further identified in Section B.3. Any other costs, fees or charges to be paid by Lessee to County hereunder. C. PAID PARKING FEES AND CHARGES Parking rates to be charged by Lessee shall be in accordance with the following schedule, and may only be adjusted with written consent of the County: -12- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC Short -Term Lot: 0 minutes to 1 hour: Each additional hour: Daily Maximum: (10 hours) 10-24 hours: Long-term Lot: 0 to 1 hour: Each additional hour: 24 hours: 1 week: (5-7 days) $ 1.00 $ 2.00 $ 8.00 $13.00 $ 2.00 $ 1.00 $ 5.00 $25.00 Employee Lot: Employees on -duty at Commercial Airline Terminal Airline employees on -duty not at Commercial Airline Terminal (as space permits) $10.00/month'* $20.00/month ** This rate will be raised to $10/month after scheduled lot improvements and thirty (30) day notification to employees. It will be $5/month until that time. D. PAYMENTS 1. Payments. The payments of the MAG and Percentage Override, and Additional Rent required above, shall be made and delivered as follows: a) All payments shall be timely made, without deduction, set-off or escrow of any kind whatsoever. b) For the first month of the term of this Agreement, or May 1999, the MAG will be due in advance on May 1, 1999. For the second and each following month of the term of this Agreement, the MAG will be paid in advance on the 20th of each month for the ensuing month, and will be paid in installments of -13- C:\home\WORD\SUE\CONTRACT\IANDSIDE\PaidPark\New PAID PARK contract.DOC $10,000 per month. (For example, the MAG for the month of June is due May 20.) c) The Percentage Override will be paid in arrears on the 20th of each month for the previous month, and will be paid for revenues received in the previous month which exceed $25,000. (For example, the Percentage Override for the month of May is due June 20.) d) If the 20th day of the month is a Saturday, Sunday or County legal holiday, that payment shall be due on the next succeeding business day. e) All payments shall be made in the office of the Treasurer, 506 East Main Street, Aspen, Colorado, 81611 or at such other place as the County may direct in writing. f) All payments shall be considered delinquent if not received by the last business day of the month due. If the last business day of the month is a Saturday, Sunday or County legal holiday, that payment shall be delinquent if not received on the next succeeding business day. All delinquent payments shall each accrue default interest on any unpaid and delinquent balance on the first day of every month so delinquent at the rate of two percent (2%) on the unpaid balance, compounded monthly; default interest shall be due and payable without demand with the next regular payment due. Amounts received shall be credited first to accrued interest and then to accrued and current payments due. If Lessee makes any payment to County with a check that fails to clear the bank on which it is drawn the first time it is submitted, that payment shall not be deemed made until Lessee delivers to County the amount of the payment (together with any late charges, bank charges, and default interest) in cash or by certified or cashier's check. After the second time during the Term that a payment check from Lessee fails to clear, County shall not be required to accept any payments from Lessee other than in cash or by certified cashier's check. -14- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC E. SURETY 1. Performance and Payment Security. Promptly after execution of this Agreement and prior to actual occupancy and use of the Property, Lessee shall deliver to County (and thereafter maintain current for the entire term of this Agreement), certain deposits or instruments, as security for the full and timely performance and payments by Lessee of all of its obligations including, without limitation, the payment of the MAG, Percentage Override, and Additional Rent 2. Types of Security. Lessee shall deliver a Letter of Credit or other security in a form satisfactory to the Pitkin County Attorney's office, in the amount of $50,000. This Letter of Credit or other security shall be maintained in effect throughout the term of this Agreement and sixty (60) days after the end of the term as surety for Lessee's full and faithful compliance with its obligations. These requirements may be waived or reduced in writing by the County, in its sole discretion, for a Lessee with a satisfactory payment or performance history for at least three (3) years; provided, however, that if the Airport issues a Notice of Non -Compliance or Notice of Default involving one or more failures to timely pay any rent or charges it may, as part of that Notice, require this Letter of Credit or security to be delivered promptly as part of any cure of such Notice. It is expressly agreed that such amounts are not an advance payment of rental or a measure of County's damages in case of default by Lessee. County shall have the right to commingle any cash amounts received hereunder with its other funds. 3. County Use of Required Security. If at any time during the Term, any of the MAG, Percentage Override or Additional Rent shall be overdue and unpaid, or any other sum payable by Lessee to County shall be overdue and unpaid, then County may, at its option, and upon Notice to Lessee, appropriate and apply any portion of the Letter of Credit or security to the payment of any such overdue amount. In the event of the failure of Lessee to keep and perform any of the terms, covenants and conditions of this Lease, then County may, at its option and upon Notice to Lessee (and its surety, if applicable), appropriate and apply the Letter of Credit or security, or as much as may be necessary, to compensate County for -15- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC advances, expenses, loss or damage sustained or suffered by County due to such breach on the part of Lessee. Should the Letter of Credit or security or any portion thereof be appropriated and applied by County for the payment of overdue rental or other sums due and payable by Lessee hereunder, or for a breach on the part of Lessee, the Lessee shall, within five days after the written demand of County, restore the Letter of Credit or security to the original sum deposited or required. 4. County Return/Release of Required Security. No later than 60 days after the expiration or termination of this Lease, County shall: if Lessee has complied with all of the terms, covenants and conditions of this Lease and has paid all of the rental herein provided for, and all other sums payable by Lessee to County hereunder, then release the Letter of Credit or security; or if Lessee has not complied with such obligations, provide written notice to Lessee and/or its surety of County's claims against said amounts and return/release the remainder. F, REPORTS AND AUDITS 1. Lessee Reports. Lessee shall prepare (or have prepared) and deliver to County complete and accurate reports as follows: a) Monthly Reports. By the 10th of each month for the previous month, Lessee shall provide the Director of Aviation with copies of the below listed records. Said records shall be signed and certified as complete and correct by an official of Lessee authorized to so certify, and shall be in a form acceptable to the Airport, and such acceptance shall not be reasonably withheld. (1) by date and lot, the number of vehicles parked in the short-term, long-term and employee lots at the Airport. (2) the number of employee parking passes sold. (3) listing of gross receipts, including all payments in advance. (4) listing of any and all refunds. -16- C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidPark\New PAID PARK contract.DOC (5) listing of in -car parking meter sales pertaining to the Airport made by the City of Aspen and/or Lessee by dollar amount. (6) listing of sales of Aspen Smart Cards by Lessee by dollar amount. (7) listing of Aspen Smart Card usage at the Property by dollar amount. (8) revenue control reports kept by the Lessee in its normal course of business. (9) listing of complaints received, and resolution thereof. (10) listing of accounts gone to collection, including the amount of each account. b) Annual Reports. Within ninety (90) days after the end of each Lease Year, Lessee shall deliver to County a written statement signed by a Colorado -licensed certified public accountant or by some other person acceptable to County setting forth the amount of Lessee's gross sales and Gross Revenues for the preceding Lease Year. The accountant or other person shall certify that the gross sales and revenues have been computed in accordance with the definitions contained in this Lease. If the Percentage Override for the contract year is more than the total actually paid by Lessee, Lessee shall pay the balance due to the County within thirty (30) days of delivery of the annual statement. c) Special Reports. Lessee shall submit to County, at County's request, such other and further reports containing information that is reasonably necessary, in the discretion of the County, to monitor current airport paid parking facilities, to audit or review past operations or to plan future operations, providing such reports would be reasonably expected to be available. d) Lessee Business Records. Lessee shall maintain full and accurate books of account and records from which Gross Sales, Gross Receipts and Gross Revenues, as defined herein, the amount and nature of all business transacted on or though the Property and the amount of Percentage Override owed the County, can be determined and verified, according to standard and -17- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC generally -accepted accounting principles and practices and auditing standards. Lessee's required books of account and records shall include, without limitation, legible, true and accurate copies of all written and electronic records and reports kept in the normal course of Lessee's business. Lessee's financial recordkeeping and reporting system for all business conducted on or through the Property or subject to this Agreement shall include, without limitation, the following: Complete, accurate and legible copies with respect to Lessee's gross revenues for the property of all parking machine tapes, bank deposits, sales tax reports, sales slips, credit card records, monthly sales tax returns, sales and disbursement journals, general ledgers, bank statements, bank books, bank deposit slips, annual federal income tax returns pertaining to AMPCO System Parking (and not ABM Industries, Inc.), state sales tax returns pertaining to AMPCO System Parking (and not ABM Industries, Inc.) and all Airport -related revenue reports submitted by Lessee to its parent compan(ies), if any, and all computer and/or microfilm or microfiche reproductions of the above. Adequate financial controls, under generally accepted accounting principles and practices and auditing standards, to ensure complete and accurate recording and reporting of all Gross Sales, Gross Receipts, and Gross Revenues. Any other document or procedure which, in the reasonable discretion of the County, is necessary or useful to determine or verify Lessee's obligations under this Agreement. Such new documents or procedures shall be used or instituted a reasonable time after written notice of the procedures has been sent by the County to Lessee. These books and records shall be maintained on a current basis and shall be stored for a period of at least thirty-six (36) months from the end of each monthly period, or for such longer period of time as County reasonably may direct in writing. The location of -18- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC these books and records shall be disclosed to the County and, if such records with respect to Lessee's Gross Revenues for the Property are not stored within Pitkin County, it shall be Lessee's responsibility, at its expense, to promptly make such records, upon request, available to County, or its representatives, in a time, manner and format to the satisfaction of the County, in its reasonable discretion. 2. County's Right to Audit. The County may conduct audits of Lessee's books of account and records with respect to Lessee's Gross Receipts for the Property as follows: a) Time and Frequency of Audits. The County may conduct audits of Lessee at any of the following times: annually; at the expiration or termination of the term hereof; upon a request by Lessee of assignment of its rights hereunder; and upon the receipt by County of any information that would lead a prudent commercial landlord to draw a reasonable inference that Lessee is not in full compliance with its financial obligations this Agreement. b) Manner of Audits. Such audits shall be conducted upon reasonable notice to Lessee and during Lessee's normal weekday business hours. For purposes of this Agreement, the annual audit period shall be deemed to commence on May 1 of each year of the Agreement and to conclude on April 30 of the ensuing year. County shall hold all information obtained from any such audits in confidence except: as may be necessary to enforce the County's rights under this Agreement; as part of any federal, state or local tax proceedings; and with respect to any legal requirements or Court Order to disclose said information. c) Scope of Audits. In performing said audits, County shall be entitled to review, and Lessee shall be obligated promptly to provide to the County upon demand, all of the books of account and records with respect to Lessee's Gross Receipts for the Property that Lessee is obligated to maintain pursuant hereto, plus such other records, documents and files in Lessee's possession, custody or control during the term that the County, (or its auditor), determine, in their sole discretion, are useful, relevant or necessary to determine or verify the correct amount of reportable, includable and excludable Gross Revenues, Gross Sales and Gross Receipts -19- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC attributable to Lessee, and the correct amount of Percentage Override owed by Lessee to the County, for the period involved. One Hundred Eighty (180) days after the date all documents requested by the County have been received by the County, the County shall release Lessee from any liability for underreporting or underpayment hereunder, unless the County shall have given Notice, within that period, of any questions, objections or exceptions to the statement or any claims for inadequate or deficient reporting or payment. Once such notice is given, the parties shall expeditiously and in good faith cooperate to resolve the matters contained therein. d) Results of Audits. Should Lessee fail to maintain the books of account and records required to be maintained pursuant hereto, or should Lessee fail to deliver and enable County (or its auditor) to review Lessee's books and records, and other documents and files, as required by this subparagraph, said default is agreed by the parties to be a material breach of this Lease and Lessee shall pay, as liquidated damages for such breach, an additional amount equal to fifty (50%) percent of the verifiable costs, fees, payments and charges due from Lessee for the period in question; provided, however, that Lessee shall only pay these damages for failure to keep required records if such requirements are reasonable in light of Lessee's business practices (as such practices may be modified by County requests hereunder) and generally accepted accounting principles and auditing standards. If any audit shows percentage compensation and other fees and charges that should have been paid to the County by the Lessee pursuant to this Agreement were understated or underpaid for any period involved (including, expressly, revenues from prohibited or unpermitted transactions, Property or diverted business), Lessee shall, within thirty (30) days notice by County of any such deficiency, pay to the County the full amount underpaid, plus two percent (2%) interest per month on such underpayment from the time said underpayment should have been paid to the time said underpayment is fully paid. If the audit discloses overpayment of the Percentage Override paid to the County by Lessee, the County shall refund the amount of overpayment to Lessee within thirty (30) days of said audit. -20- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC e) Expenses of audits. Generally, the County shall bear the expense of annual, end -of -term or investigatory audits; however, if the amount of underpayment disclosed by any audit exceeds exactly two (2.0%) percent of the total Percentage Override or Additional Rent that was owed by Lessee to the County for the period involved, Lessee, in addition to paying the County the underpayment owed and interest accrued thereon shall, within thirty (30) days' Notice by County, reimburse the County for the cost of the audit not to exceed Twenty-five Hundred Dollars ($2,500.00). f) An audit conducted prior to any assignment, conveyance or transfer by Lessee of this Lease or any rights or obligations hereunder requiring approval of the County as required herein, shall be at the sole expense of the Lessee. -21- C:thome\WORD\SUEICONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC III. COUNTY RESERVATIONS OF RIGHTS. Lessee acknowledges that the Airport is a federally -funded public service airport and, as such, has separate obligations to the Federal Aviation Administration (FAA) and aviation -related uses of the Airport, which obligations may take priority to the rights of non -aviation -related Lessees, Licensees and Permittees. To that end, County reserves the following rights with respect to the Property and all uses and operations to be conducted thereon: A. County reserves the right to unimpeded access over and across the surface of the Property, except for the buildings and other improvements situated thereon; provided, that County shall not, in the exercise of this reserved right, unreasonably interfere with Lessee's use of the Property. County shall be entitled to enter upon the Property and into any improvements in a reasonable time and manner consistent with the purpose of the entry and inspection, for the purpose of inspecting the same, preventing waste or loss, responding to emergencies or complaints or enforcing any of County's rights hereunder. B. County reserves, for the use and benefit of the public, the right of flight for the passage of aircraft in the air space above the surface of the Property, together with the right to cause in and around said air space and on the ground such noise as may be inherent in the operation of aircraft utilizing the Airport. C. County reserves the right to protect the aerial approaches of the Airport against obstruction, including the right to prohibit Lessee from erecting, or permitting to be erected or maintained, any building or other structure or obstruction on the Property which would, in the discretion of the County, limit the aeronautical usefulness of the Airport or constitute a hazard to aviation. D. County reserves the right to subordinate the provisions of this Lease, without prior notice to Lessee, to the provisions of any existing or future agreement between the County and the United States Government relative to the operation, maintenance or development of the Airport which has been or may be required as a condition precedent to the expenditure of Federal funds for the development, maintenance or operation of the Airport and, if such an agreement is entered into between the County and the United States Government, the provisions of this Lease shall be suspended and/or automatically modified insofar as such provisions are inconsistent with the provisions of the agreement _22- C:lhome\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC with the United States Government. If, by reason of any such agreement with the United States Government it becomes necessary to modify, relocate or remove any improvements or other structures situated on the Property, the Lessee agrees to modify, relocate or remove any such improvements or structures as directed by County. If the improvements removed were lawful and permitted, the County shall reimburse Lessee for the reasonable cost and expense thereof. E. County reserves the right, during the time of War or national emergency, to lease the Airport or any part thereof, including the Property or any part thereof, to the United States Government for military purposes, and, in the event of such lease to the United States Government for military purposes, the provisions of this Lease shall be suspended insofar as such provisions may be inconsistent with the provisions of the lease to the United States Government. F. County reserves the right to direct, in its sole discretion, all activities of the Lessee at the Airport in the event of an emergency condition that is a threat to the public health, welfare and safety. G. County reserves the right to grant leases, licenses, uses, permits or rights to other parties to occupy or operate commercial activities on the Airport so long as such other grants do not unreasonably interfere, in the reasonable discretion of the County, with Lessee's operations. H. The County reserves the right to direct Lessee's operations in the event that such operations are unreasonably interfering, in the reasonable discretion of County, with the use by others of the Airport; e.g., to restrict the use of "public" areas of the commercial airline terminal and public -access curbs, sidewalks and roadways in favor of the public. I. County reserves the right to further plan, develop, improve, remodel and/or reconfigure the Airport, including the Property and existing vehicle and pedestrian traffic patterns, as County deems appropriate without interference or hindrance by the Lessee, and County shall have no liability hereunder to Lessee by reason of any interruption to Lessee's operations on the Property occasioned by such County activities; provided, however, that County shall consult in advance with Lessee on such changes and if Lessee shall be unable to conduct reasonably normal business operations on the Property by reason of any such County activities, then the fees hereunder may be abated and/or subject to Equitable Adjustment during the period of such interruption. -23- C:\home\WORD\SUE\ CONTRACT\IANDSIDE\PaidPark\New PAID PARK contract.DOC J. The County reserves the right, in its sole discretion, to enter into agreements for the financing or re -financing of the Airport and Lessee agrees to cooperate in providing information to prospective lenders and in providing estoppel certificates and similar documents, if so requested. K. County reserves the right to prohibit any commercial or non-commercial activity by any party on the Airport, unless that activity has express prior, written permission from the County. L. County reserves the right to establish and enforce reasonable rules and regulations for the conduct of activities and uses permitted herein and also to promulgate minimum standards for the conduct of commercial activities related hereto including, without limitation, minimum hours of operation if the County determines that the needs of the traveling public are not being met. M. County reserves the right to require Lessee to obtain any necessary land use approvals for any development of the Property by the Lessee during the term of this Agreement through the established County land -use application/review process, with costs and fees to be paid by the proposed developer. -24- C:\ home \WORD\SUE\ CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC IV. RELEASE, INDEMNITY AND INSURANCE A. DEFINITIONS. For purposes of this Section: "Lessee" shall mean: Lessee's business entity and shareholders, directors, officers and employees; Lessee's agents, representatives,. "County" shall mean: the County of Pitkin (a Colorado home -rule County), the Aspen/Pitkin County Airport and the officials, employees, agents and representatives thereof. "Liability" shall mean: the legal obligation to pay compensation to an injured or aggrieved party. "Loss" shall mean: judgments or awards for money damages (direct and consequential, general and special), penalties, expenses, costs (including costs of investigation and defense), fees (including reasonable attorney and expert witness fees) or payments of money or compensation in any form or kind whatsoever. "Casualty" shall mean: property damage caused by fire, water, snow, ice, wind, collision, collapse or explosion. "Claim" shall mean: any legal claim, notice of claim, claim for relief, demand, lien, complaint, cause of action or other legal proceeding to establish legal or financial liability. "Personal Injury" shall mean: property damage, bodily injury or death. B. RELEASE AND INDEMNITY 1. Lessee's Release and Indemnity of County. Lessee shall and hereby does release, discharge, indemnify and hold harmless County from and against liability for any loss in connection with any casualty claim of Lessee or personal injury claim of Lessee or third parties arising out of or in connection with Lessee's occupancy and use of the Property, but only to the extent same are caused by negligence, misconduct or other fault of Lessee, its agents or employees. This release and indemnity shall apply -25- C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidPark\New PAID PARK contract.DOC to the extent of any intentional acts or negligent acts, errors or omissions of Lessee, but shall not apply to loss caused by the intentional acts or the negligence, misconduct, or other fault of County. Further, Lessee shall, to the extent set forth in the above indemnity investigate, process, respond to, adjust, provide defense for and defend, pay or settle all claims, demands, or lawsuits related to its parking operations on the Premises hereunder at its sole expense and shall bear all other costs and expenses related thereto, even if the claim, demand or lawsuit is groundless, false or fraudulent. C. INSURANCE 1. Lessee's Required Insurance. To fund this indemnity, in whole or in part, the Lessee shall secure and maintain for the term of its contractual relationship with the County such insurance policies, from companies licensed to do business in the State of Colorado, as will protect itself, the County (with the County named as additional insured, but only to the extent same are indemnified pursuant to Section IV,(B)(1)), and others as specified, from claims for bodily injuries, death, personal injury or property damage, which may arise out of or result from the Lessee's intentional or negligent acts, errors or omissions. The following insurance coverage, at or above the limits indicated and including such endorsements as are indicated by an "X", are required: Statutory Worker's Compensation: Colorado statutory minimums Commercial General Liability 1) Policy Limits: Bodily Injury/Property Damage Combined Single Limit of $2,000,000; 2) Deductible No greater than $50,000 3) Endorsements: x Comprehensive Form (All risks) x Property/Operations x Products/Completed Operations x Broad Form Blanket Contractual (Hold Harmless Coverage) -26- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC x Independent Contractors and Subcontractors x Broad Form Property Damage x Personal Injury, with Employment Exclusion Deleted Comprehensive Motor Vehicle Liability Insurance 1) Policy Limits: Bodily Injury/Property Damage Combined Single Limit of $ 1,000,000; 2) Deductible No greater than $50,000 2) Endorsements: x Any Auto x All Owned Autos x Hired Autos x Non -Owned Autos x Garage Keepers Special Coverages: 1) Surety Bond: x 2) Fidelity Bonds: $10,000 per employee x 3) Building contents: to the full replacement value of Lessee's equipment, trade fixtures and personal and business property (may be waived by County upon separate, express, written assumption of risk by Lessee) x 4) Business interruption: the full value of Lessee's extra costs and lost profits for 60 days' interruption of operation (may be waived by County upon separate, express, written assumption of risk by Lessee) 2. Certificates of Insurance. To provide evidence of the required insurance coverages, Certificates of Insurance in a form acceptable to the County shall be filed with the County (through the Director of Aviation) no later than ten (10) calendar days prior to commencement of operations affecting the County. Failure to file or maintain acceptable Certificates of Insurance with the County is agreed to be a material breach of any contract and grounds for termination. These Certificates of Insurance shall contain a provision that _27_ C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidPark\New PAID PARK contract.DOC coverage afforded under the policies will not be cancelled or materially altered unless at least thirty (30) calendar days prior written notice by certified mail, return receipt requested (effective upon proper mailing), has been sent to the County (through the Director of Aviation). (For purposes of this provision, "materially altered" shall mean a change eliminating or reducing the types or amounts of coverages available for the protection of the County and required herein, including a change to policy limits as set out in the then -current policy declarations page.) In addition, these Certificates of Insurance shall contain the following clauses: a) The clause "other insurance provisions," in a policy in which the County of Pitkin is named as an insured, shall not apply to the County of Pitkin. b) The insurance companies issuing the policy or policies shall have no recourse against the County of Pitkin for payment of any premiums or for assessments under any form of policy, but only to the extent County is indemnified pursuant to Section 1(B)(1). c) Any and all deductibles in the above -described insurance policies shall be assumed by and be for the amount of, and at the sole risk of the Lessee but only to the extent County is indemnified pursuant to Section 1(B)(1).. d) Property of operations shall be: "all operations and areas on the Aspen/Pitkin County Airport conducted by or used and occupied by Lessee." 3. County Insurance Obligations. County shall procure fire and extended coverage insurance and boiler insurance covering the commercial airline terminal for the full replacement value. County shall maintain such insurance in full force and effect during the term of this Lease and shall furnish Lessee, at Lessee's request, with a copy of a certificate evidencing such insurance. a) Lessee shall be required, at its sole cost and expense, to comply with any and all requirements pertaining to the Property of any insurance company necessary for the maintenance of -28- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidParkWew PAID PARK contract.DOC reasonable fire, casualty and public liability insurance covering the commercial airline terminal and the airport. -29- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC V. OPERATION AND MAINTENANCE OF PROPERTY. A. Hours of Operation. Lessee shall open and remain open for business and be adequately equipped, provisioned and staffed to serve the market demand, every day of the year from at least one hour before to one hour after the time commercial airline flights are scheduled for operations. B. First -Class Manner: Lessee shall operate facilities in a first-class manner so that there shall not be more than a five (5) minute waiting span for any exiting patron, in the absence of unusual, unforeseeable circumstances or circumstances beyond Lessee's control. There shall not be more than a two (2) minute waiting span for any patron entering the Property to use a pay parking stations in either the short-term or long-term lots. C. Collection of Fees: Lessee shall collect all parking fees due and promptly pay all parking fees due to County pursuant to Section II. D. Acceptance of Credit Cards: Lessee will accept payment of parking fees with major US credit cards with no cost to the County. Lessee will accept payment of parking fees with Aspen Smart Cards with no cost to the County, and as further outlined in Paragraph K.I.. E. Satisfactory Revenue Control: Lessee must institute revenue control procedures for the airport paid parking facilities, including: 1. procedures to monitor (or control if use of gates are later required by County) ingress and egress from Property 2. procedures for collection of proper fees per the approved rate schedule 3. procedures for satisfactory accounting, recordkeeping, reporting and auditing. F. Staff:: Employees. Lessee shall provide adequately trained and supervised personnel in sufficient numbers to provide information to potential customers and to assist in and arrange for sales transactions. Lessee's employees shall be safety -conscious, environmentally sensitive, helpful and courteous at all times. -30- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC Supervision. Employees shall be adequately supervised, or have access to operational policies and procedures, to respond to customer complaints and Airport inquiries G. Display of Rates/Telephone Number: Lessee shall prominently display the current parking rate schedule at all lot entrances and at all parking machines, and display a local telephone number for the resolution of questions and complaints concerning the airport paid parking operation. A Lessee employee shall answer the local telephone number, or a recorded message and an answering machine for messages shall be available to the caller. Lessee's employees will be reasonably responsive to all callers and messages left, and respond to customer complaints as outlined below. H. Customer Complaint Resolution: Lessee shall institute a procedure for the prompt resolution of customer complaints. In the event that County receives any complaint arising from Lessee's operation, County shall immediately transmit such complaint to the Lessee for resolution. Within five (5) business days of the receipt of the complaint, Lessee shall provide the Director of Aviation a written report of the complaint and its resolution, or of Lessee's attempts at resolution. In addition, Lessee shall submit upon request of the County, a semi-annual or annual report of all substantial complaints received by Lessee, including those referred by County. Failure to resolve these complaints to the satisfaction of the Director of Aviation shall be grounds for non -renewal of this Agreement. At least once annually hereunder, Lessee shall be entitled, at its request, to a written evaluation of its performance under this Agreement from the Director of Aviation. This report shall contain, if necessary, specific areas in which performance has been unsatisfactory and specific standards for satisfactory performance. 1. Employee lot: The intent of employee parking shall be to operate on a break-even basis, and to improve the employee parking area only to the extent supportable by monthly fees. The employee parking lot must be maintained in accordance with the standards outlined below in Maintenance and Repair. The employee parking lot may not be used for storage of vehicles, nor to be used for camping or overnight use at any time, by any party, with the exception of owned or leased snow maintenance vehicles by the Lessee for exclusive use on the Property. -31- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract. DOC J. Maintenance and Repair. With respect to the maintenance and repair of the Airport and related land areas and improvements, including the Property, the County and the Lessee shall have the following obligations: 1. County's Obligation. County, at its expense, shall reasonably maintain and keep in good condition, the following, specific areas as shown on Exhibit "B." County shall also repair the specific areas as shown on Exhibit "B" within a reasonable amount of time. County shall have reasonable access to the Property as necessary or convenient to make repairs required by this Section. a) Maintenance and repair of all sidewalks and pedestrian entryways and lighting, underground utility equipment (such as wiring, conduits and ducts) for any booths and parking revenue control equipment after such equipment has been installed by Lessee, and any other equipment and improvements on the Property for which Lessee is not responsible. b) Snow removal on all sidewalks and pedestrian entryways c) Removal of snow from Property from a central location in the parking lots. d) Landscaping and ground maintenance of areas surrounding the Property. e) Seal and patch all asphalt surfaces as necessary. f) Trash pick-up from a central container and trash disposal. g) Area and directional signs within and outside the Property. 2. Lessee's Obligations with respect to the Property: a) Keep all revenue equipment, traffic control equipment and signage in good repair and operating conditions. Repair, maintain, clean and paint as needed all parking equipment and booths. b) Perform housekeeping on the Property to keep it picked up, clean and free of trash and debris. -32- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC c) Repair any damages to the Property but only to the extent same are caused by negligent and/or willful acts of employees, agents or contractors, ordinary wear and tear, acts of others, acts of God and casualty excepted. County will not be liable for any acts of others or casualty associated with or arising out of the use of Lessee's automated pay stations. d) Perform snowplowing and salt and/or sand ice within the Property and the ingress and egress lanes leading from and to Airport circulation roads (as shown on Exhibit "B") on a timely basis sufficient for safe and efficient operations. Push or plow snow to a central location on the Property for County disposal. e) Sweep and stripe all asphalt parking surfaces, and roll and apply dust control to all gravel surfaces when and as necessary. f) Provide general monitoring oversight to the parking Property, be diligent to discover any dangerous conditions or suspicious activities and, once discovered, promptly report any such activities to appropriate law enforcement agencies. g) Lessee shall not cause nor permit any dangerous or hazardous condition or nuisance to exist related to the use and occupancy granted herein. h) In the event that the Property becomes in need of repairs within the County's obligations, Lessee shall give immediate written notice thereof to County and County shall be responsible for making any such repairs within a reasonable amount time after delivery of such written notice. K. Modifications, Alterations and Improvements to Property. The Property may be modified, altered or improved by the parties under the following procedures, terms and conditions: a) By County: The County, after reasonable notice to and comment from Lessee, may make modifications, alterations or improvements to the Property that do not result in permanent unreasonable impairment of the Property or interference with the conduct of Lessee's business without liability of any kind to Lessee and Lessee shall co-operate with the making of same. -33- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC b) By Lessee: Lessee shall make no modifications, alterations or improvements to the Property without the prior written consent of County and upon such terms and conditions as County shall require, in its sole discretion. Additionally, Lessee shall leave all existing parking equipment, including but not limited to all control gates, the parking booth, and all equipment as listed in Exhibit "C", in place. Said equipment may be rendered inactive during the trial period, as described below in Paragraph K. k. For any modifications, alterations or improvements to the Property with respect to which County has given its written consent, Lessee shall obtain any necessary land use approvals through the established County land -use application/review process, at Lessee's sole cost and expense. Lessee shall not cause or permit any statutory claims or mechanic's liens to be filed against the Property or against the Airline Terminal or the Airport or other improvements by reason thereof and hereby does indemnify the County against all costs (including attorney's fees) and liabilities arising from such claims or liens. For any such improvements or alterations to the Property made by Lessee, the County shall, at the end of the term or the renewal term, have the option to purchase any part of, or all of such improvements at a fair -market value. Upon receipt of County's notice of exercise of its option, Lessee shall have ten (10) days in which to respond in writing with its calculation of fair -market value. Said calculation shall be supported by a reasonable methodology for determination of fair -market value. Should County object to this calculation and the parties be unable to agree to fair -market value within thirty (30) days of termination, the parties hereby agree that said matter shall be referred to binding arbitration by a single arbitrator selected under the then -current rules of the American Arbitration Association. -34- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC L. Other Operational Matters: 1. County's Obligations: a) Regulation and enforcement of the Public Traffic Circle and the Commercial Traffic Circle to assure that all public parking shall be within the Property, and in every practicable way prevent such free, unauthorized or illegal parking, including policing violators and/or the erection of barricades. b) County shall operate the Terminal in such a way as not to unreasonably interfere with Lessee's operation. 2. Lessee's Obligations: a) Furnish forms, uniforms and tools, pay station equipment, and all office equipment, furniture, materials and supplies needed for efficient operation of its business. This shall include trash receptacles within the Property for use by Lessee's employees. b) Contract for the provision of telephone services actually incurred by Lessee in its parking operations hereunder at Lessee's sole expense, and in its name; maintain and pay for such utility serving the booth and revenue equipment. Lessee shall permit no liens or claims against the Property arising from unpaid or disputed utility bills and hereby does indemnify the County against all costs (including attorney's fees) or liabilities arising from such liens or claims. c) Pursue negligence claims for damages caused by customers or third parties. d) Post parking rate signs at each entrance and exit, and at all pay stations. e) Promptly respond to customer complaints, and as described above in Paragraph H. f) Observe and abide by all applicable airport regulations. -35- C. home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC g) Pay promptly all taxes (excluding property taxes for the Property), license fees and permit fees of whatever nature applicable to its parking operations, and to take out and keep current all licenses, municipal, state or federal, required for the conduct of its business or the operation of its equipment, and further agrees not to permit any of said taxes, excises or license fees to become delinquent. h) Conduct its commercial activities in such a way as not to unreasonably interfere with other permitted users of the Airport in non-exclusive areas. i) Lessee will be entitled to use of three (3) parking spaces in any of the airport paid parking facilities at no charge, but only for Lessee's business purposes. j) Pay -in -Advance, Passive System: It is understood by County and Lessee that the system of parking to be operated by the Lessee is a pay -in -advance, passive system, as presented and described in the Lessee's proposal submitted in response to the County's Request for Qualifications/Request for Proposals for the operation of the Airport Paid Parking Facilities issued December 1, 1998. Parking patrons will estimate the time they will be parked at the Airport, pay for that time in advance, and the parking lots will not be required to be gated at any entrances or exits. If parking patrons have failed to pay in advance for parking services, or underpaid for parking services, Lessee will issue a "Parking Due Notice," in an envelope form approved in writing by the Airport, which shall be placed on the vehicle and which indicates the dollar amount of parking fees due. Patrons shall have the option of paying parking fees due by inserting payment in the provided envelope and depositing the payment in the lock box at the exit to the Property, or mailing the payment within ten (10) days to the address listed on the said notice. k) Trial period: It is understood by County and Lessee that a pay - in -advance, passive system of parking will be operated at the airport paid parking facility for a trial period of May 1, 1999 to April 30, 2000. In the event that the County deems the pay -in -advance system to not be in the best interest of the County at the end of the -36- C:\home\WORD\SUE\CONTRACT\IANDSIDE\PaidPark\New PAID PARK contract.DOC trial period, County may elect, at its sole discretion, to require Lessee to operate a gated, pay -at -exit system of parking. This request in no way affects any other conditions, financial or otherwise, of this Agreement. I) Equipment: Lessee will purchase and install at its sole expense four (4) automated pay stations for use in the short and long term parking lots, two (2) to be located in the long-term parking lot and two (2) to be located in the short-term parking lot. These pay stations shall be operationally consistent with the Schlumberger pay stations operated by the City of Aspen, and as updated by the City of Aspen during the term of this Agreement. Said pay stations shall be able to accept cash, coin, and cards as payments. Cards include, but are not limited to, all major US credit cards and Aspen Smart Cards. In addition, payment through the use of in -car meters issued by the City of Aspen shall be an acceptable form of payment of airport parking fees. Lessee shall purchase secure, drop boxes for the exit gates of the short-term and long-term lots for the deposit of parking due notices. m) Accounting for and collection of revenues from Aspen Smart Cards and in -car meters: It will be the responsibility of the Lessee to develop procedures which satisfactorily collect revenues and account for the transaction for airport paid parking facilities with Aspen Smart Cards and in -car meters utilized by the City of Aspen. It is understood that an audit of Lessee may also include that portion of the City of Aspen's records pertaining to airport paid parking facilities revenues, and that the City of Aspen has been made aware of such requirements by Lessee. n) Snow Plow Equipment: Lessee will purchase or lease a snow plow truck which will be dedicated to the airport paid parking facility. The truck will be kept on -site and will be operated by personnel provided by Lessee. If, during the term or any renewal term of this Agreement, should said truck become non -operable, or there be abnormal amounts of snow beyond the capacity of -37- C:lhome\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC Lessee's equipment to remove, Lessee will contract with a third party plow company for the removal of snow. o) Past -due collection procedures: In the event that there are individuals' parking fees due to Lessee that are past due by thirty days or more, Lessee will notify the County in writing of the license numbers and the amount due. Lessee, at its sole expense, will forward appropriate information on all past due accounts to an outside agency. Said agency will research the registered owner information for Lessee and send a courtesy notice to the party having a past due account indicating that a parking fee is still owed. The Director of Aviation, or his/her designee must approve the form of the courtesy notice in writing. The notice shall offer a toll -free telephone number for customers to appeal their notice(s), and a fax number and e-mail address for receipt of such appeals. Said telephone shall be answered in person, or have a recorded message and an answering service for messages shall be available to the caller. Lessee will be responsible for the development of appeals criteria for determining which notices will be upheld, reduced or voided, and the Director of Aviation, or his/her designee, must approve the appeals in writing. No other collection activities including, without limitation, the placement of outbound phone calls to customers or negative marks on a parking violators' credit report may occur without the County's prior express written permission. Should legal action be substantiated by Lessee, the Lessee will consult with airport staff prior to the commencement of any such legal activity. p) Airport Administration Courtesy Validation Program: Lessee will create, at its sole expense, a post -pay validation card to be used by airport administration for its courtesy validation program for customers conducting official airport business. The Director of Aviation, or his/her designee must approve the format of this card in writing. This validation card will be inserted into the parking due notice on the vehicle, and deposited in the drop box at the exit. -38- C:\ home \WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC The airport administration courtesy validation program shall pertain only to parking in the short-term lot. q) Towing Policy: Lessee will adhere to all applicable state laws for the towing of abandoned vehicles and the towing of vehicles for punitive reasons. Lessee will develop procedures to be used for punitive towing of vehicles, and the Director of Aviation must approve these procedures in writing. This policy must include, at minimum, notification by Lessee to airport administration of any towed vehicles, whether for abandonment or punitive reasons, and the circumstances specific to each towed vehicle. r) Booting Policy: Lessee is specifically prohibited from installing or causing to be installed vehicle boots on any vehicle parked in the Property. -39- C:lhome\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC VI. ASSIGNMENT. A. Assignment Prohibited without County Consent. An assignment by Lessee of this Lease or any right or obligation of Lessee, or of any substantial interest in the ownership, management or financing of Lessee's business entity, is expressly prohibited, except with the prior,express, written consent of County, which consent shall not be unreasonably withheld. An "assignment" hereunder shall include any transaction, by Lessee's act or omission or by operation of law, creating rights or obligations in or affecting this Lease that did not exist on the effective date of this Lease (or were not disclosed to County before that date), however styled, including, as examples and without limitation, a sublease, license (other than for vehicle parking on the Property), sale, grant, conveyance, transfer, encumbrance, mortgage or pledge. B. Assignment relating to Renewal Term. Notwithstanding any other provision of this Agreement, Lessee's right to assign this Lease, as defined below, shall be further restricted in three ways relating to a Renewal Term. 1. If the Lease is assigned during the Initial Term, the County reserves the right to extinguish this Renewal Term; and 2. County shall have no obligation to accept or approve an assignment or sublease, as defined herein, within the last year of the Initial Term or during the Renewal Term; and 3. This Lease may not be assigned during the Renewal Term. C. Standards and Procedures to Obtain County Consent The determination by County of whether a proposed assignment is reasonable under this Section may include consideration of factors including, without limitation: 1. Whether Lessee is or has been in default under any of the terms or provisions of the Lease. 2. Whether the proposed assignee can demonstrate acceptable levels of relevant, successful business and financial qualifications and experience. -40- C:\home\WORD\SUE\ CONTRACT\LANDSIDE1PaidPark\New PAID PARK contract.DOC 3. Whether the assignment will be in compliance with established Airport management goals and preferences including, without limitation, the Airport's federal Disadvantaged Business Enterprise (DBE) goals. 4. Whether any new business use for the Property is being proposed and, if so, what impacts the new use may have on the Airline Terminal and the Airport. 5. Whether the proposed assignment is a technical assignment, in which the Lessee/assignor (and its guarantors and sureties) will be relieved of further liability hereunder, or a technical sublease, in which the Lessee and the sublessee both continue to be bound by the terms of the Lease. 6. Whether, if the proposed assignee or sublessee, or any stockholder, general partner or member thereof or venturer therein, is a corporation or a limited liability company, any individuals with interests therein have agreed to personally and unconditionally guarantee, in a form satisfactory to County, the performance of all Sublease obligations. 7. As part of a proposed assignment transaction, County may reasonably require from Lessee or the proposed assignee, as applicable, evidence to a level that would be satisfactory to a commercial lender of the following: a) Proof of Financial Resources. The proposed assignee or sublessee and all required guarantors may be required to submit financial statements prepared by state -licensed certified public accountants that establish, to County's reasonable satisfaction, financial ability to perform Lessee's obligations and otherwise to succeed in the proposed business. b) Proof of successful, relevant business experience. c) Proof of business, financial and credit reputation of ownership and management principals. d) Reimbursement by Lessee to County of all costs and expenses (including reasonable attorney's fees) incurred by County in considering and approving Lessee's request. -41- C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidPark\New PAID PARK contract.DOC e) An audit of and full payment of all MAG, Percentage Override, and Additional Rent to the effective date of the proposed transaction. 8. Effect of Previous Assignments. Consent by County to one or more previous assignments shall not operate as a waiver or restriction of County's rights as to any subsequent assignments. 9. Validity of Assignment without County Consent. Any attempted assignment by Lessee in violation of the terms and covenants of this Section shall be void and a material breach of this Lease. 10. Lessee Acknowledgement. Lessee acknowledges that this Section VI. C. was freely negotiated and is reasonable in all of the circumstances of this Lease. -42- C:\home\WORD\SUE\CONTRACTLANDSIDE\PaidPark\New PAID PARK contract.DOC VII. DEFAULT AND TERMINATION A. DEFAULT The standards and procedures for declarations of Default(s) under this Lease and termination of Lessee's possessory rights under this Lease and/or of the Lease itself shall be as follows: 1. Incidents of Default by Lessee. The following acts or omissions by Lessee are agreed to be Incidents of Default: a) Failure to make full and timely payments of MAG, Percentage Override fees, Additional Rent, or other fees or charges due and payable hereunder; or b) The creation, maintenance, failure to correct or sufferance of a dangerous or hazardous condition but only to the extent same are caused by negligence, misconduct, or other fault of Lessee, its agents or employees on or emanating from the Property; or c) Failure to obtain, maintain in full force and effect and/or provide proof of all required types, forms and a mounts of insurance; or d) Failure to provide and maintain current and required performance and payment surety and proof thereof; or e) Making an assignment, conveyance or transfer of its rights and obligations hereunder without the consent of County; or f) Making or becoming subject to a voluntary or involuntary petition for receivership or bankruptcy, declaration of insolvency or assignment for the benefit of creditors; or g) Failure to comply with any other obligation under this Lease and Use Agreement. 2. Notice of Default. Upon the occurrence of an Incident of Default by Lessee hereunder, County shall issue a written Notice of Default to Lessee (and its surety, if applicable), which Notice shall specify the Incident(s) of Default asserted and a cure(s) acceptable to County. -43- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC 3. Lessee's Right to Cure. Lessee shall have the right to cure an Incident of Default, unless Lessee has abandoned the Property, in which case Lessee shall be deemed to have waived any right to cure. As a condition precedent to this right to cure, Lessee must provide Notice, promptly after the effective date of the Notice of Default, to County of Lessee's intention to cure and whether it agrees with the County proposed cure or has a counterproposal. The time periods for cure, after the effective date of any Notice of Default, shall be: a) Within three (3) business days if the default is maintenance of a hazardous condition or failure to maintain and/or prove required insurance coverage(s); or b) Within ten (10) calendar days if the default is failure to make full and timely payments; or c) Within twenty (20) calendar days if the default is in the performance of any other obligation or conditions to be performed under the provisions of this Agreement. d) If, in the discretion of County, a cure acceptable to County is promptly undertaken and diligently prosecuted by Lessee and the cure required cannot reasonably be completed within the foregoing time periods, County may, upon timely request and proof of such mitigating circumstances by the Lessee, extend the period to cure by a reasonable time. In the event of multiple Incidents of Default, the cure periods above shall be concurrent, not consecutive. 4. County's Right to Cure. If Lessee should fail to cure any default hereunder within the time permitted, or if a dangerous or emergency situation exists at any time, County, without being under any obligation to do so and without waiving such default, may make such payment and/or remedy such other default for the account of Lessee (and enter the Property for such purpose), and Lessee shall be obligated, and hereby agrees, to pay as Additional Rent, all reasonable costs, expenses and disbursements (including reasonable attorneys' fees) incurred by County in taking such remedial action, but only to the extent same are caused by negligence, misconduct or other fault of Lessee, its agent or employees. Such action taken by County may include commencing, appearing in, -44- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC defending, or otherwise participating in any action or proceedings, and paying, purchasing, contesting, or compromising any claim, right, encumbrance, charge or lien with respect to the Property, but only to the extent same are caused by negligence, misconduct or other fault of Lessee, its agents or employees. 5. County's Rights Upon an Uncured Default. If the Property has been abandoned by Lessee or if an Incident(s) of Default noticed as provided herein remains uncured after the cure period specified or extended, County, at its option and in its sole discretion, then may either terminate Lessee's possessory rights under this Lease or terminate the Lease itself and all of Lessee's rights or both in sequence, by Notice to the Lessee. 6. Notices of Non -Compliance or Satisfactory Performance. In the event that County comes to believe that Lessee is not fully and faithfully in compliance with the terms and conditions of this Agreement and, in the County's discretion, such non-compliance is deemed not to rise to the level of an Incident of Default, County may issue a Notice of Non - Compliance to Lessee on a form established by the Airport. Lessee agrees to promptly undertake such action as may be reasonable and appropriate to remedy the situation giving rise to any such complaints and/or any operational deficiencies noted by County. If the circumstances that are the basis for the Notice are not resolved to the Airport's satisfaction as provided in the Notice, the fact of and content of such Notice(s) may be used in future procurements, or in responding to inquiring from third parties concerning Lessee. If Lessee has been a satisfactory operator, it is entitled to Deceive, upon its request at the end of any Lease year, a Notice of Satisfactory Performance on a form established by the Airport. 7. Termination of Lessee's Possessory Rights. If County gives Notice of Termination of Lessee's Possessory Rights due to Lessee's default hereunder, the following substantive and procedural elements shall apply: a) County shall re -take possession. Lessee shall immediately and peacefully surrender the Property to the County and, if Lessee fails to do so, County, without prejudice to any other remedy which County may have for possession, damages, or arrearages in rental, may enter upon and take possession of the Property through legal process or, if no individual person is then actually on or about the -45- C:\home\WORD\ SUBCONTRACT \LANDSIDE1PaidPark\New PAID PARK contract.DOC Property, without use of legal process. Thereafter County may possess, hold and use the Property and may alter all locks and other security devices thereon. b) Unless County so elects as provided, no such termination of Lessee's possessory rights shall cause a termination of this Lease or otherwise relieve Lessee's liability and obligations under this Lease, and such liability and obligations shall survive any such termination of possessory rights. c) In the event of any such termination of Lessee's possessory rights due to Lessee's default hereunder, Lessee shall continue to pay to the County all monthly payments of all MAG and Percentage Override, and any Additional Rent required to be paid by Lessee to County during the remainder of the Term until the date of expiration of the Term, adjusted as follows: (1) Plus all such amounts accrued prior to repossession; (2) Plus expenses of County arising from repossession; (3) Minus amounts received by County through re -letting. (4) In no event shall Lessee be entitled to any excess of any rental obtained by reletting over and above the rental herein reserved. Actions to collect amounts due by Lessee to County as provided in this Section may be brought from time to time, on one or more occasions, without the necessity of County's waiting until the expiration of the Term. d) County may sub -let or re -let. At any time after such re -taking of possession by County, County may sublet or relet the Property or any part, in the name of the Lessee or otherwise for such term (which may be greater or less than the balance of the term of this Lease) and on such conditions as the County, in County's absolute discretion, may determine, and may collect and receive the rents therefor. In the event that County shall have taken possession of the Property pursuant to the authority herein granted, then County shall have the right to keep in place and use all of the trade fixtures, leasehold improvements, furnishings and equipment of the -46- C:\home\WORD\SUE\CONTRACT\ ANDSIDE\PaidPark\New PAID PARK contract.DOC Property, including that which is owned by or leased to Lessee, at all times prior to any foreclosure by County or repossession by County or third party having a lien thereon. County also shall have the right to remove from the Property (without the necessity of obtaining a writ, warrant, bond or other legal process) all or any portion of such trade fixtures, leasehold improvements, furnishings, equipment and other property located thereon and place same in storage at any location within fifty (50) driving miles of Pitkin County, and in such event, Lessee shall be liable to County for reasonable costs incurred by County in connection with such removal and storage and shall indemnify and hold County harmless from all loss, damage, cost, expense an liability in connection with such removal and storage. County also shall have the right to relinquish possession of all or any portion of such property to any person ("Claimant") claiming to be entitled to possession who present to County a copy of any instruments represented to County by Claimant to have been executed by Lessee (or any predecessor of Lessee) granting Claimant the right under various circumstances to take possession of such property The rights of County shall be in addition to any and all other rights which are created elsewhere in this Lease or which County has or may hereafter have at law or in equity; and Lessee stipulates and agrees that the rights herein granted County are commercially reasonable. -47- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC B. TERMINATION 1. Termination of the Lease. If County gives Notice of Termination of the Lease due to Lessee's default hereunder, the following substantive and procedural elements shall apply: a) County may elect to terminate this Lease by Notice of Termination of the Lease to Lessee either: immediately after an uncured default; or at any time following the termination of Lessee's possessory rights due to Lessee's default hereunder. b) Upon such Lease termination (or in the event a court shall otherwise construe this Lease as terminated following Lessee's loss of its possessory rights hereunder), County shall have and exercise all rights of ownership of the Property, and Lessee shall pay to the County in one payment of the sum of all MAG and Percentage Override, and Additional Rental and other indebtedness to County accrued to date of such termination, plus, for liquidated damages for Lessee's default, computed at an amount equal to the present value of the total MAG that would have become due during the remainder of the Term, but for termination of this Lease, less any amounts actually received or due to County as a result of re -letting and the amount of rental loss for the same period that Lessee proves could have been avoided through the exercise of such mitigation efforts as are legally required of County. If such sum is not paid to County on the termination date, said sum shall bear interest at the Default Rate until paid. For purposes of this section, "present value" shall be computed by discounting the amount in question to present worth at a discount rate equal to one percentage point above the discount rate then in effect at any commercial bank then with an office in Pitkin County. c) Not a Surrender. Exercise by County of any one or more remedies herein granted or otherwise available shall not be deemed to be an acceptance of surrender of the Property by County, whether by agreement or by operation of law, it being understood that such surrender can be effected only by the written agreement of Lessee and County. No alteration of locks or other security devices and no removal or other exercise of dominion by County over the property of Lessee, or others at the Property shall -48- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC be deemed unauthorized or constitute a conversion or a Lease termination. Lessee hereby consents, after any Event of Default, to the aforesaid exercise of dominion over Lessee's property within the Property. All claims for damages by reason of such re-entry and/or repossession and/or alteration of locks or other security devices are hereby waived, as are all claims for damages by reason of any distress warrant, forcible detainer proceedings, sequestration proceedings or other legal process. d) Property Left on Property. Any property of Lessee, or of anyone claiming under, by, or through Lessee, which is left on the Property more than fifteen days after expiration of the Term or termination of possessory rights shall, after notice of removal thereof by County, be conclusively deemed abandoned, and County may keep, use, remove, store, sell, destroy, discard, or otherwise deal with it in County's absolute discretion without liability of any sort to Lessee or anyone claiming under, by, or through Lessee. e) Costs of Default. In case of any Event of Default, Lessee shall also be liable for and shall pay to County, in addition to any sum provided to be paid above, all costs, expenses and fees associated with providing Notice of the Default and enforcing County's rights including, without limitation, the following: the reasonable costs or removing and storing or otherwise disposing of Lessee's or other occupant's property; the reasonable costs of cleaning, repairing, altering, remodeling or otherwise putting the Property into condition acceptable to a new Lessee or Lessees; advertising costs; all reasonable expenses incurred by County in enforcing or defending County's rights and/or remedies, including reasonable attorneys' fees; and a sum equal to $75 for each hour that any employee or agent of County, spends in connection with obtaining the right to relet, rendering suitable for reletting, and attempting to relet the Property or any part thereof. fi County's Duty to Relet. In the event of termination of possessory rights or repossession of the Property for an Event of Default, County shall not have any greater obligation to relet or attempt to relet the Property, or any portion thereof, or to collect rental on the Property after reletting than is required by applicable law with respect to mitigation of damages; and in the event of -49- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC reletting, County may relet the whole or any portion of the Property for any period, to any Lessee, and for any use and purpose. g) Default by County; Lessee's Remedies. In the event of any default by County, Lessee's exclusive remedy shall be an action for damages, but prior to any such action Lessee will give County written notice specifying such default with particularity, and County shall thereupon have 20 days (or such longer period as may be necessary in the circumstances) in which to cure any such default. In the event of County's uncured default hereunder, Lessee shall have the option to terminate this lease with ninety (90) days notice. All obligations of Lessee hereunder will be construed as covenants, not conditions. h) Remedies Not Exclusive. The aggrieved party shall have such other and further legal and equitable rights and remedies as may be provided by law, including damages. -50- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC VIII. GENERAL PROVISIONS A. Coordination with other Airport Users. County and Lessee acknowledge that the County has, and Lessee may have, rights and obligations arising from various third -party agreements with other Airport users. County and Lessee agree to cooperate with each other to effectuate these third -party agreements, so long as such agreements are not illegal, impossible or do not unreasonably interfere with Airport operations or conflict with the rights and obligations of the various parties hereunder. If either County or Lessee shall make a demand upon the other for cooperation hereunder, the party making the demand shall first provide copies of any such agreements to the other party. B. Surrender of Property/Lessee's Personal Property. On or before the date and time of the expiration or termination of the Initial or Renewal Term of this Lease, Lessee shall: surrender the Property to County in good condition and repair, ordinary wear and usage and acts of God excepted; and remove all of Lessee's personal property, trade fixtures, equipment or improvements removable by prior agreement with County from the Property; and repair any damage to the Property caused by such removal. Any property of Lessee, or Lessee's designee, which is left on the Property more than thirty (30) days after expiration of the Term shall be conclusively deemed abandoned, and County may keep, use, remove, store, sell, destroy, discard, or otherwise deal with it in County's absolute discretion without liability of any sort to Lessee. C. Compliance with Applicable Laws and Regulations. In connection with its occupancy and use of the Property, the Lessee shall: 1. Comply with all applicable laws, rules and regulations of the United States of America (including, especially, the U.S. Department of Transportation and the Federal Aviation Administration), the State of Colorado and the County of Pitkin (including, especially, the Airport, the Sheriffs Department, the Public Works Department and the Community Development Office) and any and all departments and agencies thereof, as the same may now exist or may be hereafter promulgated or amended from time to time. 2. Although Lessee is not an aeronautical operator and, as such, is not directly regulated by the FAA, Lessee acknowledges that the Airport is heavily regulated by the FAA with respect to operation, financing and development of the Airline Terminal. -51- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC 3. Lessee acknowledges that Pitkin County has the continuing authority to enact general legislation pursuant to its power to protect the health, welfare and safety of its citizens, as well as the continuing authority to enact Airport regulations. 4. Lessee will comply with the notification and review requirements of Part 77 of the FAA's Federal Aviation Regulations (FARs) in the event any future structure or building is planned for the Property, or in the event of any planned modification or alteration of any present or future structure or building situated on the Property. 5. Lessee will not discriminate against any person or class of persons by reason of race, color, sex, creed, religion, handicap or national origin in providing any services or in the use of any facilities provided for the public in any manner prohibited by Part 21 of the Regulations of the U.S. Department of Transportation, and shall comply with the letter and spirit of the Colorado Anti -Discrimination Act of 1957, as amended, and any other laws and regulations respecting discrimination in unfair employment practices, and shall comply with such enforcement procedures as any governmental authority might demand that the County take for the purpose of complying with any such laws and regulations. 6. Lessee will comply with the requirements for parking tenants of the Americans with Disabilities Act (ADA). 7. Lessee will comply with the requirements for Airport tenants of the Airport's program and goals to increase opportunity for Disadvantaged Business Enterprises (DBE). 8. Lessee shall pay all business/personal property taxes assessed against Lessee's personal property situated upon the Property and all other taxes lawfully assessed against Lessee by reason of Lessee's use and occupancy of the Property in the conduct of Lessee's business. 9. Compliance with FAA Regulations: In compliance with FAA regulations, this Agreement is subject to the requirements of the U.S. Department of Transportation's regulations, 49 CFR Part 26, subpart G. The Lessee agrees that it will not discriminate against any business owner because of the owner's race, color, national origin, or sex in connection with the award or performance of any agreement, management, contract, -52- C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC or subcontract, purchase or lease agreement, or other agreement covered by 49 CFR Part 26, subpart G. The Lessee agrees to include the above statements in any subsequent concession agreement or contract covered by 49 CFR Part 26, subpart G, that it enters and cause those businesses to similarly include the statements in further agreements. D. Lessee's Personal Property/Trademarks. All personal property, equipment, furnishings, decorations and trade fixtures placed upon the Property by Lessee shall be at Lessee's sole risk, and County shall not be liable for damage to or loss of such personal property or trade fixtures arising from the acts or omissions of any persons or from any causes whatsoever, except from the acts or omissions of County, its agents and employees. Lessee represents that it is (and will be for the entire term hereof) the owner of or fully authorized to use any and all services, processes, machines, articles, tradenames, trademarks, logos or slogans to be used by it in its operations under or in any way connected with this Agreement. Lessee agrees to save and hold the County, its officers, employees, agents and representatives free and harmless of and from any loss, liability, expense, suit, demand or claim for damages in connection with any actual or alleged infringement of any patent, trademark or copyright arising from any alleged or actual unfair competition or other similar claim arising out of the operations of Lessee this Agreement. E. Substitution ofPitkin County Airport Facilities. County may build or provide, or cause to be built or provided, substitute facilities at the Airport. In the event of the construction and occupancy of new or substitute facilities at the Airport during the term of this Agreement, the following shall apply: 1. County agrees to set aside space for airport paid parking facilities for use of Lessee. 2. Lessee agrees to relocate operations from the Property to the new or substituted facilities and to thereafter conduct its operations therefrom. The new or substituted facilities shall be comparable to the previous facilities or better in terms of size, Property and finish, all in the reasonable discretion of the County. -53- C:\home\WORD\SUE\CONTRACTILANDSIDE\PaidPark\New PAID PARK contract.DOC 3. Upon such relocations, County shall have the right to demolish or use the existing commercial airline terminal building or other buildings or facilities located on the Property as it sees fit. 4. The fees provided for in this Lease shall be subject to Equitable Adjustment to reflect the substitution of space for the existing terminal building and facilities located on the Property. In the event County and Lessee are unable to agree to such adjustment, then such adjustment shall be determined by a qualified real estate appraiser selected by the mutual agreement of County and Lessee, with the appraisal costs to be shared equally by them. 5. Except as modified by the substitution of facilities and the fee adjustment as provided for this Lease shall continue in full force and effect without change or modification until the expiration or termination of the Lease term. 6. If, in the opinion of County, the Property shall be wholly or partially required for other operations of the Airport or if the use of the Property should be changed or abated by reason of other operations of the Airport, then the following shall apply: a) County shall substitute for the Property another area at the Airport of equivalent size and with comparable facilities and shall, at County's expense, provide thereon facilities reasonably comparable to the facilities existing on the Property, including, but not by way of limitation, the buildings, structures, paved areas, vehicle parking areas, utilities, and other improvements, either by the relocations of the existing facilities and/or by the construction of new facilities. b) Lessee agrees to accept such other area at the Airport and the facilities to be provided thereon by County in substitution for the Property and agrees to promptly relocate its operations to such other area at its expense. c) County shall schedule the preparation of such substituted area and shall effect such substitution and relocations of the Lessee's operations in such manner as shall not result in the unreasonable interruption of the conduct of Lessee's operations. -54- C:\home\WORD\SUBCONTRACT\ AND$IDE\PaidPark\New PAID PARK contract.DOC F. Destruction of Buildings and Other Improvements. If the buildings and other improvements upon the Property shall be rendered untenantable by fire or other casualty, County shall, at County's cost (subject to and secondary to Lessee's obligation, if any, to provide fire and casualty insurance for the Property, as provided below), restore and repair the same to tenantable condition as speedily as possible and the fees and charges for the occupancy of the untenantable space shall be abated, in whole or in part, during the period of such restoration and repair according to the portion of the buildings or other improvements so rendered untenantable; except that there shall be no abatement of rent to the extent such fire or other casualty shall be caused by the intentional acts or negligent acts or omissions of Lessee, its agents, employees, Notwithstanding the foregoing, County shall not be obligated to expend in the restoration and repair of any buildings or other improvements so damaged by fire or other casualty in excess of the insurance proceeds received by County. If such insurance proceeds are insufficient to pay in full the costs of such restoration and repair, County shall not be obligated to undertake such restoration and repair. G. Rights of Seizure. County shall not be liable in any respect to Lessee in the event of any seizure of all or any part of the Property, or the buildings and other improvements located thereon, by the United States of America or the State of Colorado in time of war or other national emergency; provided, that the fees provided hereunder shall abate during such period of seizure to the extent that such seizure shall interfere with Lessee's ability to conduct its business upon the Property. H. Relationship of Parties. It is the intent and agreement of the County and the Company that they shall have the relationship respectively of Lessor/Lessee and Permittor/Permittee hereunder, and nothing contained herein shall be deemed or construed to constitute the parties as partners or joint venturers, and in no event shall County be liable for any loss which may result from the operations of Lessee upon the Property except to the extent any claims are caused by the negligence, misconduct or other fault of County, its agents or employees or for any indebtedness incurred by Lessee in the operation of its business on the Property except to the extent any claims are caused by the negligence, misconduct or other fault of County, its agents or employees or for the claims of third parties against Lessee in the conduct of its business except to the extent any claims are caused by the negligence, misconduct or other fault of County, its agents or employees. -55- C:\home\WORD\SUE\CONTRACT \LANDSIDE1PaidPark\New PAID PARK contract.DOC In addition, County shall not be liable in any manner to the Lessee for any damages the Lessee may incur due to the inability of the County to deliver possession of the Property, or any part thereof, to the Lessee for reasons beyond the reasonable control of the County and Lessee will not be liable for rent until Lessee takes possession of Property. 1. Non -Liability of County's Agents and Employees. No official, agent, or employee of County shall be personally liable to Lessee in the event of any default or breach hereunder by County. J. Notices. All notices required or authorized to be given hereunder shall be in writing and shall be served upon the entitled party either by personal delivery to such party or by certified mail, return receipt requested, addressed to such party at its address appearing on the signature page of this Lease or at such other address as either party may so notify the other party of in writing. Any such notice shall be deemed to have been received on the date so delivered personally to the entitled party or three (3) business days after the same has been properly deposited in the United States mail, with postage fully prepaid. K. Representations of Lessee. Lessee represents and warrants to County as follows: 1. Lessee, and those individuals executing this Lease on behalf of Lessee, represent and warrant that they are familiar with Section 18-8- 301, et seq. of the Colorado Revised Statutes (Bribery and Corrupt Influences) and Section 18-8-401, et seq. of the Colorado Revised Statutes (Abuse of Public Office) and that no violations of the provisions are present. 2. Lessee, and those individuals executing this Lease on behalf of Lessee, represent and warrant that to the best of their knowledge no employee of Pitkin County has personal or beneficial interest whatsoever in this Lease or in the business to be conducted upon the Property by the Lessee. L. Entire Agreement/Merger. This Lease contains the entire agreement of the parties and there have been no oral or written promises, representations or agreements, either express or implied, except as expressly set forth herein. Any and all prior agreements or understandings between the parties are expressly agreed to have merged. -56- C:\ home \WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC M. No Oral Modifications. This Lease may be modified or amended or supplemented only by an instrument in writing signed by the parties hereto. The County's representative for the administration of this Agreement shall be the Director of Aviation or the designee specified in writing; provided, however, that all matters affecting material terms of this Agreement, including term, fees and charges and use of Property by Lessee, shall only be modified or amended by a writing approved by a Resolution of the Board of County Commissioners at a duly -noticed public meeting. N. No Waiver. The failure of either party hereto to exercise any right or remedy hereunder shall not be deemed a waiver or a waiver of the right to exercise the same at any future time, or the waiver of any other right or remedy hereunder. No waiver by either party of any right or remedy shall be effective unless in writing signed by the party. O. No Presumption Against Drafting Party. The parties agree that this Agreement was negotiated by the parties mutually, that each has had adequate opportunity to review this Agreement and to consult with legal and other counsel, and agree that no legal presumption shall arise as a result of the identity of the drafter of this Agreement or any presumed unequal status. P. Attorney's Fees. If either party to this Agreement incurs attorney's fees and/or costs in connection with the declaration of a Default or any other legal proceeding to interpret, protect or enforce any of its rights hereunder, the party prevailing in such proceeding shall be entitled to recover its reasonable attorney's fees and costs in connection with such proceeding. Q. Governing LawNenue. This Lease shall be governed by and construed in accordance with the laws of the State of Colorado and venue is agreed to be exclusively in the courts of Pitkin County, Colorado. R. Binding Effect. This Lease shall be binding upon and shall inure to the benefit of the parties hereto and to their properly qualified successors and assigns. S. Captions. The captions and such headings in this Lease are for organization purposes only and shall not be construed to have independent substantial meaning; the captions shall be construed in the context of the entire Agreement. T. Duplicate Originals; Recorded Summary. This Lease shall be executed in duplicate originals, with one original to be held by each party. Either party, at its -57- C:\home\WORD\SUE\ CONTRACT \LANDSIDE\PaidPark\New PAID PARK contract.DOC expense, and after reasonable advance notice to the other, may file a duplicate original Lease or an accurate summary thereof in the real estate records of the Pitkin County Clerk & Recorder. U. Authority of Lessee's Representative. As an inducement to the County to execute this Agreement, the undersigned officer of Lessee represents that he/she is expressly authorized to execute this Agreement and to bind Lessee to the terms and conditions hereof and acknowledges that the County is relying on this representation, authorization and execution. -58- C:\home\WORD\SUE \CONTRACTVANDSIDE\PaidPark\New PAID PARK contract.DOC APPROVED BY BOCC ON y/y 99 COUNTY: The Board of County Commissioners of Pitkin County CO r By: Leslie Lamont, Clj,i ./-ilaqq7 F OY. T: Pit in County Clerk S al County's Addresses: c/o County Manager 506 E. Main Street Aspen, CO 81611 er on cc: Director of Aviation 0233 E. Airport Rd., Suite A Aspen, CO 81611 -59- LICENSEE: AMPCO System Parking Date: ,,f 49, l999 ATTEST: )1W. Corporat- Secretary Licensee's Address: For receipt of mailed notices hereunder: 'nice President & Regional Manager Ampco System Parking 1325 Fourth Avenue, Suite 910 Seattle, WA 98101 Q\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC RECOMMENDED FOR APPROVAL: Suza'niye Konchn, County Manager Scott Smith, A.A.E. Dir. of Aviation APPROVED AS TO FORM: APPROVED AS TO BUDGET: Thomas Oken, Admin Svc Dir APPROVED BY RISK: 1/77 Hilary Smit Risk Manager _gx -60- Date: 4///q9 Date: obi/ Date: 40R Date: 103/1 / Date:. / 7 ' 91 C:\home\WORD\SUE\CONTRACT\LANDSIDE\PaidPark\New PAID PARK contract.DOC