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HomeMy WebLinkAboutbocc.con.083.1974CONTRACT AGREEMENT FOR LEASE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY This Agreement entered into this 20th day of November 1974, by and between THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY as succ~so~o?the Pitkin County Airport Authority, hereinafter sometimes referred to as "Lessor" and ASPEN AIRPORT TRANSIT CO., INC., a Colorado corporation, hereinafter sometimes referred to as "Lessee". RECITALS 1.1 To end confusion and uncertainty surrounding limou- sine service to and from Sardy Field from and to Aspen and other points in the surrounding area and to assure dependable service at reasonable rates, Pitkin County Airport Authority, a Colorado non-profit quasi-governmental corporation, applied to the Public Utilities Commission of the State of Colorado for a certificate of public convenience and necessity to operate as a common carrier by motor vehicle for hire for transportation, on call and demand, in limousine service of passengers and their baggage between Sardy Field and (a) Aspen, Colorado; (b) Aspen Highlands; (c) West Village of Snowmass- At-Aspen, serving all intermediate points. The certificate is restricted to the use of limousines having a capacity of not more than twelve passengers including the driver; and all trips must originate or terminate at Sardy Field. The author- ity as outlined was granted and issued by the Commission in its Decisions No. 81393 and No. 81652 dated respectively October 2, 1972 and October 30, 1972, and No. 82209 as PUC Certificate No. 8581, herein called the "Certificate". 1.2 Since operation under the Certificate will require the Lessor to engage a staff competent to conduct the bus- iness of a common carrier and to make a considerable invest- ment in equipment, and since Lessee has staff and equip~.ent necessary for the operation and is willing to operate the Certificate under a lease arrangement, the Chairman of the Lessor has been duly authorized and directed by resolution of the Lessor to enter into such a lease arrangement, upon terms and conditions as set forth in the following paragraphs. 2.1 Lessor hereby agrees to lease to Lessee, and Lessee hereby agrees to lease from Lessor (subject to the prior ap- proval of the Public Utilities Commission of the State of the State of Colorado) the Certificate to operate said airport limousine service upon the terms and provisions contained herein. 2.2 tificate, Lessee, in consideration of the lease of the Cer- agrees as follows: (a) To pay to Lessor an annual rental of $1.00 on or before the first day of each year during the term of this lease. (b) To assume the obligation of providing the service authorized in the Certificate in full compli- ance with the rules and regulations of the Public Utilities Commission of the State of Colorado. (c) To carry insurance of such character and in at least the minimum amounts as would be required by law for Lessor were the Lessor to operate the service authorized under the Certificate directly, and to indemnify and hold harmless the Lessor from any claims, demands and liabilities, including with- out limitation the expenses of defending any suit or action, arising out of the conduct of the airport limousine service by Lessee. (d) To comply with all tariffs which are now or which may hereafter become applicable to the operation of the airport limousine service under the Certificate, providing that Lessor agrees to cooperate with Lessee -2- in applying for any reasonable tariff increases which Lessee may deem to be appropriate under the circumstances. 2.3 It is agreed that as soon as r~asonably possible after the s~_ning of this agreement, the Lessor shall submit appro- priate applications to the Public Utilities Commission of the State of Colorado seeking approval of the within lease trans- action, both on a temporary and a long-term basis, so that the Certificate and operating rights thereunder do not become dormant or otherwise cause the public to be ~eprived of trans- portation service under the Certificate. Both parties agree to fully cooperate in the preparation, filing and prosecution of these applications. 2.4 Both parties hereto will do and perform all things necessary under the regulatory laws of the State of Colorado applicable hereto to consummate this lease forthwith upon of the Public Utilities Commission of the State of approval Colorado. 2.5 In the event that the Public Utilities Commission of the State of Colorado fails to grant temporary authority to lease or long-term authority to lease the Certificate as aforesaid, this agreement shall be void, or in the event that said Public Utilities Commission imposes terms, conditions or restrictions upon its approval of said lease which are unac- ceptable to the Lessee or to the Lessor, then this agreement shall be of no further force or effect mpon either party notifying the other party in writing within three days after any final order of said Public Utilities Commission containing such restrictions, terms or conditions. 2.6 The term of this lease shall commence on the date on which the Public Utilities Commission of the State of Colorado grants authority to lease the Certificate, as aforesaid, and shall run until November 1, 1977, subject, however, to the termination provisions set forth herein. -3- 2.7 Lessor shall have the right to terminate this lease follows: (a) In the event that Lessee shall default in the performance of the covenants to be performed by it hereunder, and shall fail to cure such default within fifteen (15) days after receipt of written notice from Lessor specifying in detail the nature of such default, or within five (5) days after such notice in cases where the default is of a serious nature involving a threat to passenger or public safety, then Lessor shall thereupon have the right to terminate this lease for cause by serving written notice thereof upon Lessee. (b) Lessor shall have the right to terminate this lease without cause on lessee at least ninety thereof. November 1, 1976 by qiving (90) days advance written notice 2.8 The Lessor warrants that it is the owner and holder of the Certificate (subject to the approval by the Public Utilities Commission of the transfer of the Certificate to Lessor by the Pitkin County Airport Authority) and is fully authorized (subject to the approval of the Public Utilities Con~ission) to lease the said operating rights in accordance herewith. The Lessee warrants that it will actively operate the authority under the Certificate. IN WITNESS WHEREOF the parties have executed this lease the day and year first written above. ATTEST: ~c~e t~r~ -- LESSOR: BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY ASPEN AIRPORT TRANSIT CO., INC. -4-