Agenda packet — Palm Springs City Council, December 5, 2022 (part 3 of 11)

1. Developer shall comply with Article II of Chapter 8.04 of the Palm Springs Municipal Code.

BUILDING DEPARTMENT:

1. Prior to any construction on-site, all appropriate permits must be secured.

FIRE DEPARTMENT:

FID 1 These Fire Department conditions may not provide all requirements.

Owner/developer is responsible for all applicable state and locally adopted fire codes. Detailed plans are still required for review. Conditions are subject to final plan check and review. Initial fire department conditions have been determined on the resubmitted plans received and dated February 1, 2017.

Additional requirements may be required at that time based on revisions to plans.

FID 2 Fire Department Conditions were based on the 2013 California Fire Code as adopted by City of Palm Springs, Palm Springs Municipal Code, PSFD Appendix “O” Development Requirements and latest adopted NFPA Standards. Three (3) complete sets of plans for private fire service mains, fire alarm, or fire sprinkler systems must be submitted at time of the building plan submittal. No deferred submittals accepted.

FID 3 Conditions of Approval – “Conditions of Approval” received from the Palm Springs Planning Department must be submitted with each plan set. Failure to submit will result in a delay of plan approval.

FID 4 Plans and Permits (CFC 105.1):

Permits and scaled drawings are required for this project. Plan reviews can take up to 20 working days. Submit a minimum of three (3) sets of drawings for review. Upon approval, the Fire Prevention Bureau will retain one set.

Plans shall be submitted to:

City of Palm Springs
Building and Safety Department
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Counter Hours: 8:00 AM – 6:00 PM, Monday – Thursday
A deposit for Plan Check and Inspection Fees is required at the time of Plan Submittal. These fees are established by Resolution of the Palm Springs City Council.

Complete listings and manufacturer’s technical data sheets for all system Item 2A - Page 40
Conditions of Approval Case No. 5.1132-PD 333 AMND / TTM 35236

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materials shall be included with plan submittals. All system materials shall be UL listed or FM approved for fire protection service and approved by the Fire Prevention Bureau prior to installation.

Plans shall include all necessary engineering features, including all hydraulic reference nodes, pipe lengths and pipe diameters as required by the appropriate codes and standards. Plans and supporting data, (calculations and manufacturers technical data sheets) including fire flow data, shall be submitted with each plan submittal. Complete and accurate legends for all symbols and abbreviations shall be provided on the plans.

FID 5
Access During Construction (CFC 503): Access for firefighting equipment shall be provided to the immediate job site at the start of construction and maintained until all construction is complete. Fire apparatus access roads shall have an unobstructed width of not less than 24 feet and an unobstructed vertical clearance of not less than 13'-6". Fire Department access roads shall have an all-weather driving surface and support a minimum weight of 73,000 lbs.

FID 6 Required access (CFC 504.1): Exterior doors and openings required by this code or the California Building Code shall be maintained readily accessible for emergency access by the fire department. An approved access walkway leading from fire apparatus access roads to exterior openings shall be provided when required by the fire code official.

FID 7 Aerial Fire Access Roads (CFC Appendix D105.1): Buildings or portions of buildings or facilities exceeding 30 feet in height above the lowest level of fire department vehicle access shall be provided with approved fire apparatus access roads capable of accommodating fire department aerial apparatus.

Overhead utility and power lines shall not be located within the aerial fire apparatus access roadway.
• Aerial Fire Access Road Width (CFC Appendix D105.2): Fire apparatus access roads shall have a minimum unobstructed width of 26 feet, exclusive of shoulders, in the immediate vicinity of any building or portion of building more than 30 feet in height. • Aerial Access Proximity to Building (CFC Appendix D105.3):

At least one of the required access routes for buildings or facility exceeding 30 feet in height above the lowest level of fire department vehicle access shall be located within a minimum of 15 feet and a maximum of 30 feet from the building and shall be positioned parallel to one entire side of the building.

Project Note: Site plan does not show aerial apparatus access roads Item 2A - Page 41
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FID 8 Turning radius (CFC 503.2.4): Fire access road turns and corners shall be designed with a minimum inner radius of 25 feet and an outer radius of 43 feet. Radius must be concentric.

FID 9 Traffic Calming Devices (CFC 503.4.1): Traffic calming devices shall be prohibited unless approved by the fire code official.

FID 10 Key Box Required to be Installed (CFC 506.1): Where access to or within a structure or an area is restricted because of secured openings or where immediate access is necessary for lifesaving or fire-fighting purposes, the fire code official is authorized to require a key box to be installed in an approved location. The key box shall be flush mount type and shall contain keys to gain necessary access as required by the fire code official.

Secured emergency access gates serving apartment, town home or condominium complex courtyards must provide a key box in addition to association or facility locks. The nominal height of Knox lock box installations shall be 5 feet above grade. Location and installation of Knox key boxes must be approved by the fire code official.
• Key Box Contents (CFC 506.1): The Knox key box shall
contain keys to all areas of ingress/egress, alarm rooms, fire sprinkler riser/equipment rooms, mechanical rooms, elevator rooms, elevator controls, plus a card containing the emergency contact people and phone numbers for the building/complex.

FID 11 Required Water Supply (CFC 507.1): An approved water supply capable of supplying the required fire flow for fire protection shall be provided to premises upon which facilities, buildings or portions of buildings are hereafter constructed or moved into or within the jurisdiction.

FID 12 Water Plan (CFC 501.3 & 901.2): A water plan for on-site and off-site is required and shall include underground private fire main for fire sprinkler riser(s), public fire hydrant(s), public water mains, Double Check Detector Assembly, Fire Department Connection and associated valves.

FID 13 Location of Fire Department Connections: The connection inlets must face the street and be located on the street side of the building. The face of the inlets shall be 18 inches horizontal from the back edge of sidewalk (or back of curb, if no sidewalk), and shall be 36 to 44 inches in height to center of inlets above finished grade. No landscape planting, walls, or other obstructions are permitted within 3 feet of Fire Department connections.

The FDC and supporting piping shall be painted OSHA safety red.

The address of the building served shall be clearly indicated on the Fire Department Connection (FDC). A sign with this information shall be placed Item 2A - Page 42
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on or near the FDC. The sign shall be constructed of metal. The sign face, lettering, and attachment shall be made of weather and vandal resistant materials. Sign background will be bright red. Letters will be bright white.

Sign format will be substantially as follows:

FDC SERVES
354 N PALM CANYON
[Designate Buildings Served]
FID 14 Fire Hydrant & FDC Location (CFC 912.2): A public commercial fire hydrant is required within 30 feet of the Fire Department Connection (FDC).

Fire Hose must be protected from vehicular traffic and shall not cross roadways, streets, railroad tracks or driveways or areas subject to flooding or hazardous material or liquid releases.

FID 15 Fire Department Connections (CFC 912.2.1 & 912.3): Fire Department connections shall be visible and accessible, have two 2.5-inch NST female inlets, and have an approved check valve located as close to the FDC as possible. All FDC's shall have KNOX locking protective caps. Contact the fire prevention secretary at 760-323-8186 for a KNOX application form.

FID 16 Location of Class I standpipe hose connections (CFC 905.4):

Class I standpipe hose connections shall be provided in all of the following locations:

1. In every required stairway, a hose connection shall be provided for each floor level above or below grade. Hose connections shall be located at an intermediate floor level landing between floors, unless otherwise approved by the fire code official. See Section 909.20.3.2 for additional provisions in smoke-proof enclosures.

2. On each side of the wall adjacent to the exit opening of a horizontal exit.

Exception: Where floor areas adjacent to a horizontal exit are reachable from exit stairway hose connections by a nozzle attached to 100 feet of hose, as measured along the path of travel, a hose connection shall not be required at the horizontal exit.

3. In every exit passageway, at the entrance from the exit passageway to other areas of a building.

Exception: Where floor areas adjacent to an exit passageway are reachable from exit stairway hose connections by a 30-foot hose stream from a nozzle attached to 100 feet of hose, a hose connection shall not be required at the entrance from the exit passageway to other areas of the building.

4. N/A

5. Where the roof has a slope less than four units vertical in 12 units Item 2A - Page 43
Conditions of Approval Case No. 5.1132-PD 333 AMND / TTM 35236

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horizontal (33.3-percent slope), a hose connection shall be located to serve the roof or at the highest landing of a stairway with stair access to the roof provided in accordance with Section 1009.16.

6. Where the most remote portion of a non-sprinklered floor or story is more than 150 feet from a hose connection or the most remote portion of a sprinklered floor or story is more than 150 feet from a hose connection, the fire code official is authorized to require that additional hose connections be provided in approved locations. The distances from a hose connection shall be measured along the path of travel.

FID 17 NFPA 13 Fire Sprinklers Required: An automatic fire sprinkler system is required. Only a C-16 licensed fire sprinkler contractor shall perform system design and installation. System to be designed and installed in accordance with NFPA standard 13, 2013 Edition, as modified by local ordinance.

FID 18 NFPA 13R Fire Sprinklers Required: An automatic fire sprinkler system is required. Only a C-16 licensed fire sprinkler contractor shall perform system design and installation. System to be designed and installed in accordance with NFPA standard 13R, 2013 Edition, as modified by local ordinance.

FID 19 Floor Control Valves (CFC 903.3.8 & Ordinance 1781: Item 42): Floor control valves and water flow detection assemblies shall be installed at each floor in buildings three or more stories in height. Valve locations will be determined and approved by the fire code official.

FID 20 Identification (CFC 509.1): Fire protection equipment shall be identified in an approved manner. Rooms containing controls for air-conditioning systems, sprinkler risers and valves, roof access, electrical rooms, or other fire detection, suppression or control elements shall be identified for the use of the fire department. Approved signs required to identify fire protection equipment and equipment location, shall be constructed of durable materials, permanently installed and readily visible.

FID 21 Fire Sprinkler Supervision and Alarms System (CFC 903.4/4.1): All valves controlling the water supply for automatic sprinkler systems, pumps, tanks, water levels and temperatures, critical air pressures and water-flow switches on all fire sprinkler systems shall be electrically supervised by a listed Fire Alarm Control Unit (FACU). The listed FACU alarm, supervisory and trouble signals shall be distinctly different and shall be monitored at a UL listed central station service. The fire sprinkler supervision and alarms system shall comply with the requirements of NFPA 72, 2013 Edition. All control valves shall be locked in the open position.

FID 22 Fire Alarm System: Fire alarm system is required, and installation shall comply with the requirements of NFPA 72, 2013 Edition.

Item 2A - Page 44
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FID 23 Central Station Protective Signaling Service (CFC 903.4.1): A UL listed, and certified Protective Signaling Service (Central Station Service) is required. Provide the Fire Department with proof of listing and current certificate. The Fire Department shall be notified immediately of change in service.

FID 24 HVAC Duct Smoke Detection/Shut Down with a Fire Sprinkler Supervision & Alarm System or Fire Alarm System (CFC 907.4.1, CMC 609.0 & NFPA 72): All HVAC systems supplying greater than 2,000 CFM shall require a duct detector and HVAC shut down when smoke is detected.

HVAC shut down shall be on an individual basis, not global. These systems shall supervise the Duct Detectors and activate the notification appliances.

An accessory module shall be installed for each unit, including alarm LED, pilot LED and key-operated test/reset switch.

FID 25 Smoke Alarm or Detector Locations - R-1 Occupancy (CFC 907.2.11.1):

Single or multiple-station smoke alarms shall be installed in all of the following locations in Group R-1:

1. In sleeping areas.

2. In every room in the path of the means of egress from the sleeping area to the door leading from the sleeping unit.

3. In each story within the sleeping unit, including basements. For sleeping units with split levels and without an intervening door between the adjacent levels, a smoke alarm installed on the upper level shall suffice for the adjacent lower level provided that the lower level is less than one full story below the upper level.

FID 26 Groups R-1 and R-2.1 Accessibility Requirements (CFC 907.6.2.3.3):

Group R-1 and R-2.1 dwelling units or sleeping units in accordance with Table 907.6.2.3.3 shall be provided with a visible alarm notification appliance, activated by both the in-room smoke alarm and the building fire alarm system. Also comply with Section 1111B.4.5, Table 11B-3, and Table 11B-4 of the California Building Code.

FID 27 Fire Extinguisher Requirements (CFC 906): Provide one 2-A:10-B:C portable fire extinguisher for every 75 feet of floor or grade travel distance for normal hazards. Show proposed extinguisher locations on the plans.

Extinguishers shall be mounted in a visible, accessible location 3 to 5 feet above floor level. Preferred location is in the path of exit travel or near an exit door.

Portable Fire Extinguishers for Food Processing Equipment (CFC 906.1 & 4): In addition to the fixed system, a fire extinguisher listed and labeled for Class K fires shall be installed within 30 feet of commercial food heat processing equipment, as measured along an unobstructed path of travel.

The preferred location is near the exit from the cooking equipment area.

Item 2A - Page 45
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FID 28 Emergency responder radio coverage in new buildings (CFC 510.1): All new buildings shall have approved radio coverage for emergency responders within the building based upon the existing coverage levels of the public safety communication systems of the jurisdiction at the exterior of the building. This section shall not require improvement of the existing public safety communication systems.

FID 29 Elevator Stretcher Requirement (CBC 3002.4): Elevators shall be designed to accommodate medical emergency service. The elevator(s) so designed shall accommodate the loading and transport of an ambulance gurney or stretcher 24 inches by 84 inches in the horizontal position. The elevator entrance shall have a clear opening of not less than 42 inches wide or less than 78 inches high. The elevator car shall be provided with a minimum clear distance between walls or between walls and door excluding return panels not less than 80 inches by 54 inches, and a minimum distance from wall to return panel not less than 51 inches with a 42-inch side slide door.

FID 30 Elevator Emergency Operation (CFC 607.1): Existing elevators with a travel distance of 25 feet or more shall comply with the requirements in Chapter 46. New elevators shall be provided with Phase I emergency recall operation and Phase II emergency in-car operation in accordance with California Code of Regulations, Title 8, Division 1, Chapter 4, Subchapter 6, Elevator Safety Orders and NFPA 72.
• Elevator Keys (CFC 607.4): Keys for the elevator car doors and fire-fighter service keys shall be kept in an approved location for immediate use by the fire department.
• Elevator System Shunt Trip (CFC 607.5): Where elevator hoistways or elevator machine rooms containing elevator control equipment are protected with automatic sprinklers, a means installed in accordance with NFPA 72, Section 21.4, Elevator Shutdown, shall be provided to automatically disconnect the main line power supply to the affected elevator prior to the application of water. This means shall not be self-resetting. The activation of sprinklers outside the hoistway or machine room shall not disconnect the main line power supply.
• Fire Sprinklers at Bottom of Elevator Pit (NFPA 13: 8.15.5.1):

Sidewall spray sprinklers shall be installed at the bottom of each elevator hoistway not more than 2 ft above the floor of the pit. • Elevator Hoistways and Machine Rooms (NFPA 13: 8.15.5.3):

Automatic fire sprinklers shall be required in elevator machine Item 2A - Page 46
Conditions of Approval Case No. 5.1132-PD 333 AMND / TTM 35236

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rooms, elevator machinery spaces, control spaces, or hoistways of traction elevators.
• Fire Sprinklers at the Top of Elevator Hoistways (NFPA 13:

8.15.5.6): The sprinkler required at the top of the elevator hoistway by 8.15.5.5 shall not be required where the hoistway for passenger elevators is noncombustible or limited combustible and the car enclosure materials meet the requirements of ASME A17.1, Safety Code for Elevators and Escalators.
• Elevator Recall for Fire Fighters’ Service with Automatic Fire Detection (NFPA 72: 21.3.3): Unless otherwise required by the authority having jurisdiction, only the elevator lobby, elevator hoistway, and elevator machine room smoke detectors, or other automatic fire detection as permitted by 21.3.9, shall be used to recall elevators for fire fighters’ service.
• Exception: A water-flow switch shall be permitted to initiate elevator recall upon activation of a sprinkler installed at the bottom of the elevator hoistway (the elevator pit), provided the water-flow switch and pit sprinkler are installed on a separately valved sprinkler line dedicated solely for protecting the elevator pit, and the water-flow switch is provided without time-delay capability.
• Elevator Recall with Fire Sprinkler in Elevator Pit (NFPA 72:

21.3.7): When sprinklers are installed in elevator pits, automatic fire detection shall be installed to initiate elevator recall in accordance with 2.27.3.2.1(c) of ANSI/ASME A.17.1/CSA B44, Safety Code for Elevators and Escalators, and the following shall apply:
• Where sprinklers are located above the lowest level of recall, the fire detection device shall be located at the top of the hoistway. • (2) Where sprinklers are located in the bottom of the hoistway (the pit), fire detection device(s) shall be installed in the pit in accordance with Chapter 17.
• (3) Outputs to the elevator controller(s) shall comply with

21.3.14. • Elevator Systems Automatic Detection (NFPA 72: 21.3.9): If ambient conditions prohibit installation of automatic smoke detection, other automatic fire detection shall be permitted.

Item 2A - Page 47
Conditions of Approval Case No. 5.1132-PD 333 AMND / TTM 35236

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• Detector Annunciation at the Building Fire Alarm Control Unit (NFPA 72: 21.3.10): When actuated, any detector that has initiated fire fighters’ recall shall also be annunciated at the building fire alarm control unit, or other fire alarm control unit as described in 21.3.2, and at required remote annunciators.

FID 31 “Exit Analysis Plans” required (CFC 104.7.2): Prepared, stamped and signed by a state licensed architect in ¼” = 1’ scale. The floor plans shall address the following for all assembly occupancies including swimming pool enclosures:
• Provide net occupant load calculations for interior (restaurant & bar) and outdoor patios. The occupant load determination shall be made by the Fire Marshal
• Seating/table diagram with compliant aisle widths
• Minimum required egress width to accommodate occupant load • Exit access travel distance
• Egress paths to public way
• Means of egress illumination locations
• Illuminated EXIT sign locations
• Compliant exit doors/gates and door/gate hardware (panic hardware)
• Note any elevation changes in the exit discharge
• Locations of fire extinguishers (minimum rating 2A-10BC).

FID 32 Interior Finish, Decorative Materials and Furnishings (CFC 801.1):

Scope. The provisions of this chapter shall govern interior finish, interior trim, furniture, furnishings, decorative materials, and decorative vegetation in buildings. Existing buildings shall comply with Sections 803 through 808. New buildings shall comply with Sections 804 through 808, and Section 803 of the California Building Code.
• Report submittal to be prepared by a registered design professional acceptable to the fire code official
FID 33 Hazardous Materials (CFC 5004.1): Storage of hazardous materials in amounts exceeding the maximum allowable quantity per control area as set forth in Section 5003.1 shall be in accordance with Sections 5001, 5003 and 5004. Storage of hazardous materials in amounts not exceeding the maximum allowable quantity per control area as set forth in Section 5003.1 shall be in accordance with Sections 5001 and 5003. Retail and wholesale storage and display of nonflammable solid and nonflammable and noncombustible liquid hazardous materials in Group M occupancies and Group S storage shall be in accordance with Section 5003.11.

Item 2A - Page 48
Conditions of Approval Case No. 5.1132-PD 333 AMND / TTM 35236

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• Pool Chemicals – dedicated, compliant storage cabinets, rooms, or areas required
• Liquid Petroleum Gas (LPG) – dedicated, compliant storage cabinets, rooms, or areas required

END OF CONDITIONS
Item 2A - Page 49

ATTACHMENT D
Item 2A - Page 50

EXCERPT OF ACTION MINUTES
At the Planning Commission Meeting of the City of Palm Springs, held September 28, 2022, the Planning Commission made the following decision:
2D. SELENE PALM SPRINGS, LLC, FOR AN AMENDMENT TO THE PREVIOUSLY APPROVED FINAL DEVELOPMENT PLANS AND TENTATIVE TRACT MAP 35236 TO INCLUDE ADDITION OF 24 CONDOMINIUM UNITS TO THE SOUTHEAST SECTION OF THE SITE; RECONFIGURE THE 12 CONDOMINIUM UNITS TO THE NORTHWEST

AREA OF THE SITE AND INCREASE THE NUMBER OF TOWER CONDOMINIUM UNITS FROM 28 TO 29 UNITS AND MAKE MINOR MODIFICATIONS TO THE FINAL

LANDSCAPE PLANS OF THE DREAM HOTEL LOCATED AT THE NORTHWEST CORNER OF AVENIDA CABALLEROS AND AMADO ROAD, ZONE PDD 333, SECTION

14. (CASE 5.1132-PD 333/TTM 35236) (ER)
Miller, seconded by Aylaian to approve the amended TTM 35236 and recommend approval of the PDD 333 amendment to the City Council with an added requirement for additional landscape buffering.

AYES: AYLAIAN, MILLER, MORUZZI
NOES: HIRSCHBEIN, WEREMIUK
ABSENT: ERVIN, ROBERTS
(Forward to City Council)
Item 2A - Page 51

ATTACHMENT E
Item 2A - Page 52
Item 2A - Page 53
Dream Hotel and Residences
Justification Letter
Selene International, on behalf of the Owner, Selene Palm Springs, is requesting an adjustment to the by
following
both market
areas of
an_d
the
financing
current plan for Planned Development 333. These adjustments are being driven demands for more housing units and an improvement in both design and configuration to allow for appropriate parking adjacencies and facilitation of short-term rentals. The requirements listed above have resulted in a number of modifications and/or additions project. These include to the :

1. residential
Addition of
lot.
24 condos
Relocation
on the southeast section of PD 333 along with the creation of a new of the event space, formerly referred to as the Farmhouse, variety of locations on to a potential roof
the site which will allow for pop-up event space - this includes a hotel and hotel
location
grounds
on the hotel tower, as well as designating additional space within the for events.

3. 2.

Reconfiguration
Reconfiguration of the condos on the northern end of the property (Lot2). of the residential pools 4. Adjustment to the residential purpose of this reconfiguration)
tower from 28 units to 29 units (see explanation below for the The project remains a 4+star Dream Hotel and Resort and continues providing an honest and original to serve higher-end guests by resort program that features a modernist approach experience not seen to the guestroom in Palm Springs. The project remained a 4+ star Dream Hotel and Resort with an experience focused on providing an elevated unique guest room experience not seen in Palm Springs. The residential tower and the hotel, as designed and as approved changed with the addition in the last submittal, are minimally of 1 unit in the residential tower and some reconfiguration internally of hotel areas
keys and
and
key
will
count
be, at
.
a
The
minimum,
hotel key count is being revised to accommodate additional suites and meeting 160 rooms.

The residential tower, now 29 condos, also house an owner's lounge, pool bathrooms, Sinatra" Lounge and pool the "Frank bar, and an area designated medi-spa. for commercial use as either an event area or The hotel tower contains a guest lobby, lobby bar, two restaurants (one a more casual marketplace and garage
one a 3-meal
that accommodates
restaurant), and a fitness area with appropriate amenities, and sits on an underground the required valet parking for the hotel and designated gated parking for the residential tower. It is now proposed to add facilities that will allow for a pop-up roof-top event area. Proposed Changes to the Approved Plan The north condos have been redesigned features dedicated to provide an elevated residential experience. The design gardens and allowance
individual parking garages with direct access to each unit by elevator. Private levels. The count of 12
for a dedicated plunge pool have been added to each condo at the residential units has not changed and is now four stories with a height of 52'. The condos Item 2A - Page 54 are built on a podium that houses individualized garages at ground level and guest parking accessed by a central motor court. The ground-level parking is heavily ensconced in landscaping at the perimeter and not visible from the street. The units are arranged for optimal views and privacy with open spaces and light shafts at the center to bring filtered light into the units and down to the ground-level motor court. These open spaces will also feature desert-appropriate landscaping at the ground level inside the motor court, inclusive of palm trees which will extend above the podium and between the units, thus contributing to the landscape at the upper levels.

The former event center has been eliminated to allow for the construction of 24 condominiums on a partially subterranean podium containing parking. The design of this building features a series of interconnected breezeways, which create partially shaded garden spaces that can be accessed from each unit. These breezeways facilitate connection to the open atrium space, which brings filtered natural light down into the core of the building and parking level. A series of alternating decks and balconies at the perimeter of the building accommodates green space for each unit in addition to modulating the fa~ade for more interest and variety visible from multiple perspectives. Units along the south edge of the building feature private terraces which step down to grade. There is a dedicated pool, clubhouse with kitchen, and rooftop deck for the units.

The hotel landscape plan has been simplified to allow for a better connection between the new residential and the existing pools and hotel amenities. The_landscape design continues to provide a range of experiences and personalities that are emphasized through a cohesive palette of materials that speak to the desert aesthetic, and rather than being conceived as a new landscape for the desert, the Hotel is envisioned to be of the desert.

ATTACHMENT F
Item 2A - Page 55
CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

(Revised 05/16/19)

PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

1. Name of Entity

2. Address of Entity (Principle Place of Business)

3. Local or California Address (if different than #2)

4. State where Entity is Registered with Secretary of State If other than California, is the Entity also registered in California?  Yes  No

5. Type of Entity
 Corporation  Limited Liability Company  Partnership  Trust  Other (please specify)

6. Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity _________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________
_________________________________________________  Officer  Director  Member  Manager [name]
 General Partner  Limited Partner

 Other ____________________________________
Item 2A - Page 56
Selene Palm Springs, LLC 200 West 55th Street, New York, NY 10019 1717 E Vista Chino, A7-613, Palm Springs, CA 92262 CA ■ Lauri Kibby for CDI Ventures, LLC Managing Member Rabinder Pal Singh for Calsprings Prop LLC CITY OF PALM SPRINGS – PUBLIC INTEGRITY DISCLOSURE

APPLICANT DISCLOSURE FORM

Page 1 of 2 ends

(Revised 05/16/19)

7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity

EXAMPLE

JANE DOE
[name of owner/investor]
50%, ABC COMPANY, Inc.
[percentage of beneficial interest in entity
and name of entity]
A.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
C.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]

I DECLARE UNDER PENALTY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.

Signature of Disclosing Party, Printed Name, Title Date

PENALTIES
Falsification of information or failure to report information required to be reported may subject you to administrative action by the City.

Item 2A - Page 57
Calsprings Properties LLC 80%, Selene Palm Springs LLC CDI Ventures, LLC 20%, Selene Palm Springs, LLC 9/7/22

ATTACHMENT G
Item 2A - Page 58

SITE IMAGES

DREAM HOTEL
VILLAS

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ATTACHMENT H
Item 2A - Page 61
TITLE SHEET 1
11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
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DREAM HOTEL PALM SPRINGS, CA
Plan Development 333, Section 14 (PD-333)
1 2
3 4
5 6
7 8 9
10 NORTH VILLAS
11 12
13 14
15 16
17 18
19 20

SOUTH VILLAS
21 22
23 24
25 26
27 28
29 30
31 32

TITLE SHEET

SITE CONTEXT MAP

SITE SURVEY
2019 APPROVED OVERALL SITE PLAN

PROPOSED OVERALL SITE PLAN

PROGRAMMATIC SITE PLAN

CIRCULATION SITE PLAN

SITE SECTIONS
2019 ENVELOPE + SETBACK STUDY
PROPOSED ENVELOPE + SETBACK STUDY

NORTH VILLAS - FIRST FLOOR

NORTH VILLAS - SECOND FLOOR

NORTH VILLAS - THIRD FLOOR

NORTH VILLAS - FOURTH FLOOR

NORTH VILLAS - ROOF

NORTH VILLAS - ELEVATIONS

NORTH VILLAS - HEIGHT DIAGRAMS

BUILDING MASSING VIEWS

RENDERING

SOUTH VILLAS - BASEMENT

SOUTH VILLAS - FIRST FLOOR

SOUTH VILLAS - SECOND FLOOR

SOUTH VILLAS - THIRD FLOOR

SOUTH VILLAS - ROOF

SOUTH VILLAS - ELEVATIONS

SOUTH VILLAS - HEIGHT DIAGRAMS

BUILDING MASSING VIEWS

RENDERING

MATERIALS & INSPIRATION
Hotel & Condominiums:
(Level 1- Public Area Both Condominiums & Hotel Floors) - 4 Levels Of Guestroom Floors
- 5 Levels Of Condominium Floors
(Level 1- Public Area Both Condominiums & Hotel Floors) Guest Room Keys: 160 Keys
Condominiums: 29 Private For Sale Residential Units
The dream hotel and resort, and Condominium Tower will be located at 450 North Calle Alvarado (at the corner of Calle Alvarado and Amado road). The project site consists of 7.8 acres. The new structures to be built shall consist of a 5-story condominium building and a 4-story hotel building.

There will be two additional condominium buildings on the North: North Villas 12 Private For Sale Residential Units, and on the South-East: South Villas 24 Private For Sale Residential Units.

North Villas:

The proposed unit count of 12 condominiums has not
changed. The bulding is now 4 stories with a height of 45’-2”.

The condominiums are built on a podium that houses individual garages access by a central, ground level motor court which also contains guest parking. Each garage has direct access to each unit by elevator. The ground level parking is heavily ensconced in landscaping at the perimeter and not visible from the street.

South Villas:

The former event center has been eliminated to allow for the construction of 24 condominiums on a partially subterranean parking capped by the building podium. The building is now 3 stories with a height of 37’-2”.

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11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

PALM SPRINGS

CONVENTION CENTER

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450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
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5 EAST AMADO ROAD

NORTH CALLE ALVARADO

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0 20’ 40’ 80’
KEY

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2019 OVERALL SITE PLAN
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SWA LANDSCAPE PROPOSAL DATED 05.20.2019

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21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

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PREVIOUSLY APPROVED CONDO UNITS

PREVIOUSLY APPROVED STREET LEVEL PARKING

KEYNOTES
1 2
20í-0î INTERNAL SETBACK
20í-0î INTERNAL SETBACK
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LANDSCAPE PALETTE TO FOLLOW

5.1132-PD333 AMENDMENT 06/17/2019

SITE & LANDSCAPE DESIGN UNCHANGED

5.1132-PD333 AMENDMENT 06/17/2019

DREAM HOTEL TOWER
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CONDO TOWER

NORTH VILLAS

SOUTH VILLAS

HOTEL MECHANICAL

BUILDING
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5.1132-PD333 AMENDMENT 06/17/2019
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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

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EAST AMADO RD

CENTER COURT CLUB

NORTH AVENIDA CABALLEROS

NORTH CALLE ALVARADO
THE OASIS 40,632 tot sf
Garden 8,260 sf
Terraces 25,016 sf
Pool 7,355 sf
RESTAURANT DINING 26,725 tot sf
Oasis Pool Dining 8,496sf
Interior Dining 11,723 sf
Garden Dining 6,506 sf
THE PARK 10,776 sf
THE GARDENS 26,329 tot sf
Serenity Pool 4,206 sf
Event Lawn 4,865 sf
Terrace Gardens 17,258 sf
THE GROUNDS 14,112 tot sf
Event Gardens 8,842 sf
Approach Gardens 5,270 sf
NORTH VILLAS LANDSCAPE 13,538 sf
SOUTH VILLAS LANDSCAPE 28,384 sf
BOUNDARY PLANTING 11,385 sf
PAVING 50,642 tot sf
Street 35,094 sf
Ground Parking 15,548 sf

LANDSCAPE LEGEND
20í-0î INTERNAL SETBACK
20í-0î INTERNAL SETBACK
30í-0î FRONT YARD SETBACK 30í-0î FRONT YARD SETBACK
30í-0î FRONT YARD SETBACK
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20í-0î INTERNAL SETBACK
30í-0î FRONT YARD SETBACK

HOTEL MECHANICAL

BUILDING

PROGRAMMATIC SITE PLAN
SCALE: 1/32î = 1í-0î 0 16í 32í 64í
HOTEL TOWER 237,278 tot sf
CONDO TOWER 316,807 tot sf
PROPOSED NORTH VILLAS 47,662 tot sf
Proposed Living Area 38,500 sf
Proposed Terrace Gardens 9,162 sf
PROPOSED SOUTH VILLAS 58,699 tot sf
Proposed Living Area 51,548 sf
Proposed Terraced Gardens 7,151 sf

PREVIOUSLY APPROVED CONDOS

PREVIOUS APPROVED FARMHOUSE

BUILDING AREA LEGEND

THE OASIS

THE PARK

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DREAM HOTEL TOWER

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7 8
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4 3
4 4
4 4
5 6 6
6 6
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4 3
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450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
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9 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
30’-0” FRONT YARD SETBACK
20’-0” INTERNAL SETBACK
30’-0” FRONT YARD SETBACK
20’-0” INTERNAL SETBACK
PREVIOUSLY APPROVED BUILDING ENVELOPE & SETBACK STUDY (2019)

NOT TO SCALE

NORTH CALLE ALVARADO

EAST AMADO RD

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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
30’-0” FRONT YARD SETBACK
20’-0” INTERNAL SETBACK
30’-0” FRONT YARD SETBACK

NORTH CALLE ALVARADO

EAST AMADO RD

NORTH AVENIDA CABALLEROS
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NOT TO SCALE
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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
NORTH VILLAS - 1ST FLOOR
SCALE: 1/16î = 1í-0î 0 8í 16í 32í

ENTRY GARDEN
FOYER

KITCHEN

LIVING ROOM

WASHER / DRYER

POWDER ROOM

DEN / OFFICE / GYM

MAIN BEDROOM

PRIVATE TERRACE

HOT TUB

PRIVATE BEDROOM SUITE

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GARAGE

BACK OF HOUSE

RECEPTION
GARDEN
CONDO
CORE

PARKING
1 14
1 4
7 9
11 8
16 15
15 3
13 13
10 11
12 13
14 15
16 KEYNOTES
1 2
3 4
5 6
7 8
9 LEGEND
14 14
14 14 14 14
14 14
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4A
4A
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3D 2D
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NORTH VILLAS ENTRY

PROPERTY LINE

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PROPERTY LINEPROPERTY LINE
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2 A2.0N
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49’-10”
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1 16

NORTH CALLE ALVARADO
131’-0” 43’-0” 97’-0”
Item 2A - Page 71
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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
NORTH VILLAS - 2ND FLOOR
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NORTH CALLE ALVARADO
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Item 2A - Page 72
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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
NORTH VILLAS - 3RD FLOOR
SCALE: 1/16î = 1í-0î 0 8í 16í 32í
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16 2
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NORTH CALLE ALVARADO
99’-6” 52’-2”
40’-2”
41’-1” 1150’-0” 53’-0”
Item 2A - Page 73
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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
NORTH VILLAS - 4TH FLOOR
SCALE: 1/16î = 1í-0î 0 8í 16í 32í
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45’-8” 118’-8”
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Item 2A - Page 74
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21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

NORTH VILLAS - ROOF
SCALE: 1/16î = 1í-0î 0 8í 16í 32í
DREAM
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16 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

KEYNOTES

METAL (WINDOWS & DETAILING)

GLASS (GLAZING)

PRECAST (PODIUM & HARDSCAPE)

CLADDING (SMOOTH FINISH)
REFER TO SHEET 32 MATERIALS & INSPIRATION
1234

NORTH VILLAS - ELEVATIONS
Item 2A - Page 76
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17 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

XXX XXX

XXX XXX
OPEN
HOTEL HEIGHT 56í-0î
LEVEL 4 ROOF 45í-2î
LEVEL 4 GARDEN TERRACE 33í-8î
LEVEL 3 ROOF 33í-8î
LEVEL 3 GARDEN TERRACE 22í-2î
LEVEL 2 ROOF 22í-2ì
LEVEL 2 GARDEN TERRACE 10í-8î
LEVEL 2 PLINTH 10í-8î
GROUND LEVEL 0í-0î

HEIGHT LEGEND
ROOF 45í-2î
(505.66í)
46í-2î PARAPET

MAX HEIGH

REVISED DESIGN
12 CONDO UNITS

LANDSCAPE PALETTE

TO FOLLOW

5.1132-PD333 AMENDMENT
06/17/2019

SITE PLAN
SCALE: 1/32î = 1í-0î 0 16í 32í 64í
6 7

NORTH VILLAS - EAST ELEVATION
SCALE: 1/16î = 1í-0î 1
2 SECTION BB
SCALE: 1/16î = 1í-0î 3

SECTION AA
SCALE: 1/16 = 1í-0î 4

CENTER COURT CLUB

NORTH AVENIDA CABALLEROS

SITE ENTRY

NORTH VILLAS ENTRY
HOTEL 5.1132-PD333 AMENDMENT 06/17/2019

SERVICE DRIVE

EXISTING CENTER COURT PRIVACY WALL

CENTER COURT CONDO WEST BLDG

MATURE CENTER COURT TREES & SHRUBS
PRIVACY HEDGE (8í TALL)

MECHANICAL SCREEN

PREVIOUSLY APPROVED CONDO UNITS

KEYNOTES
1 4
20í-0î INTERNAL SETBACK
20í-0î INTERNAL SETBACK
30í-0î FRONT YARD SETBACK
CONDO ROOF 56í-0î
(513.50í)

SITE & LANDSCAPE

DESIGN UNCHANGED

5.1132-PD333 AMENDMENT
06/17/2019
2 3
1 2
3 4
5 6
7 9
10 8
4 17
3 17
4 17
3 17
5 8
5 7

NORTH VILLAS - PARKING

CENTER COURT WEST UNIT NORTH VILLAS - PARKING
9 8
8 4TH FLOOR

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2ND FLOOR
1ST FLOOR
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2ND FLOOR
1ST FLOOR

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NORTH CALLE ALVARADO
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4 4
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18 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

EXISTING CENTER COURT WEST GROUND LEVEL

NOT TO SCALE
1 PROPOSED CENTER COURT WEST GROUND LEVEL

NOT TO SCALE
2 PROPOSED

NORTH VILLAS
REQUESTED 8í PRIVACY

HEDGE DATUM
EXISITING 5í SITE

WALL DATUM

APPROVED DREAM

CONDO TOWER
REQUESTED 8í PRIVACY

HEDGE DATUM
EXISITING 5í SITE

WALL DATUM

XXX XXX

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450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

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06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

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PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

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PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
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21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
SOUTH VILLAS - 2ND FLOOR
SCALE: 1/16î = 1í-0î 0 8í 16í 32í
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13 11
11 11
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HOTEL
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10 11
12 13
14 15
16 KEYNOTES
1 2
3 4
5 6
7 8
9 LEGEND

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GARAGE

BACK OF HOUSE
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24 2
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103’-2” 14’-6” 80’-0” 34’-2”
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21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
SOUTH VILLAS - 3TH FLOOR
SCALE: 1/16î = 1í-0î 0 8í 16í 32í
A2.0S A2.0S
A2.0S
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DREAM
HOTEL
HOTEL

MECHANICAL

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UNIT 3A
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10 11
12 13
14 15
16 KEYNOTES
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MAIN BEDROOM

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WATER FEATURE

PRIVATE BEDROOM SUITE

KITCHEN ALLEY

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GARAGE

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POOL
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13 13
13 13
13 13
13 13
13 13
13 13
13 11
11 11
11 11
13 11
11 11 13
70í-0î 181í-6î
58í-0î
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1 A2.0S
2 A2.0S
4 A2.0S
3 A2.0S

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PROPERTY LINE

FRONT YARD SETBACK

PROPERTY LINE
30í-0î

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DREAM
HOTEL
HOTEL

MECHANICAL

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(BELOW)

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UNIT 3A
UNIT 3B
UNIT 3C
UNIT 3E
UNIT 3F
UNIT 3G
UNIT 3H
UNIT 3D
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10 11
12 13
14 15
16 KEYNOTES
1 2
3 4
5 6
7 8
9 LEGEND

ENTRY GARDEN
FOYER

KITCHEN

LIVING ROOM

WASHER / DRYER

POWDER ROOM

DEN / OFFICE / GYM

MAIN BEDROOM

PRIVATE TERRACE

WATER FEATURE

PRIVATE BEDROOM SUITE

KITCHEN ALLEY

BATHROOM
GARAGE

BACK OF HOUSE
POOL
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70í-0î 181í-6î
58í-0î
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EAST AMADO RD
24 2
24 24
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94 -0” 20’ -8” 60-2” 61-3”
90’-4” 14’-6” 93’-6” 31’-6”
62’-10”
81’-8” 14’-4” 85’-6” 20’-0”
Item 2A - Page 84
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25 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

SOUTH VILLAS - ROOF
SCALE: 1/16î = 1í-0î 0 8í 16í 32í
A2.0S A2.0S
A2.0S
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FRONT YARD SETBACK

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DREAM
HOTEL
HOTEL

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90’-4” 14’-6” 93’-6” 31’-6”
47’-6”
81’-8” 14’-4” 85’-6” 20’-0”
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21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
KEYNOTES 1234

METAL (WINDOWS & DETAILING)

GLASS (GLAZING)

PRECAST (PODIUM & HARDSCAPE)

CLADDING (SMOOTH FINISH)
REFER TO SHEET 32 MATERIALS & INSPIRATION

SOUTH VILLAS - ELEVATIONS
Item 2A - Page 86
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27 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

XXX XXX

XXX XXX XXX XXX XXX XXX

XXX XXX

HEIGHT LEGEND
HOTEL HEIGHT 45í-9î
HOTEL MECHANICAL 16í-0ì
LEVEL 4 ROOF 37í-2î
LEVEL 4 GARDEN TERRACE 28í-8î
LEVEL 3 ROOF 25í-8î
LEVEL 3 GARDEN TERRACE 16í-2î
LEVEL 2 ROOF 14í-2î
LEVEL 2 GARDEN TERRACE 12í-8î
LEVEL 2 PLINTH 10í-8î
GROUND LEVEL 0í-0î

SITE PLAN
SCALE: 1/32î = 1í-0î
0 16í 32í 64í

SOUTH VILLAS - NORTH ELEVATION
SCALE: 1/16î = 1í-0î 2 1 70í-9î 50í-0î 65í-3î 86í-6î 20í 30í

SITE ENTRY

SOUTH VILLAS ENTRY
HOTEL 5.1132-PD333 AMENDMENT 06/17/2019

SERVICE DRIVE

EXISTING CENTER COURT PRIVACY WALL

CENTER COURT CONDO SOUTH BLDG

MATURE CENTER COURT TREES & SHRUBS
PRIVACY HEDGE (8í TALL)

MECHANICAL SCREEN

PREVIOUSLY APPROVED EVENT CENTER &

STREET LEVEL PARKING

KEYNOTES
1 2
3 4
5 6
7 8
9 10
20í 30í

NORTH AVENIDA CABALLEROS

EAST AMADO RD
1 4
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NEW CONDO UNIT DESIGN 24 UNITS

5.1132-PD333 AMENDMENT 06/17/2019
8 5
7 6
10 10

SOUTH VILLAS - HEIGHT

DIAGRAMS
Item 2A - Page 87
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28 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

CENTER COURT
2 STORY

SOUTH UNIT

CENTER COURT
2 STORY

SOUTH UNIT
9 50í-0î TO SUB LEVEL PARKING
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102í-3î TO 3RD FLOOR
5 7

XXX XXX

XXX XXX XXX XXX XXX XXX

XXX XXX

SECTION AA
SCALE: 1/16 = 1í-0î 3

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SCALE: 1/16î = 1í-0î 2 SITE PLAN
SCALE: 1/32î = 1í-0î 1
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KEYNOTES
1 4
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20í-0î INTERNAL SETBACK
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06/17/2019
2 1
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8 9
5 BASEMENT PARKING

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2ND FLOOR
1ST FLOOR

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3RD FLOOR
2ND FLOOR
1ST FLOOR
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3 -
2 -
3 -
2 8

CENTER COURT CLUB

SITE ENTRY

SOUTH VILLAS ENTRY
HOTEL 5.1132-PD333 AMENDMENT 06/17/2019

SERVICE DRIVE

EXISTING CENTER COURT PRIVACY WALL

CENTER COURT CONDO SOUTH BLDG

MATURE CENTER COURT TREES & SHRUBS
PRIVACY HEDGE (8í TALL)

MECHANICAL SCREEN

PREVIOUSLY APPROVED EVENT CENTER &

STREET LEVEL PARKING
10 10
10 2ND FLOOR
1ST FLOOR
2ND FLOOR
1ST FLOOR

SOUTH VILLAS - SECTIONS
& HEIGHT DIAGRAMS
Item 2A - Page 88
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29 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

BUILDING MASSING VIEWS

EXISTING CENTER COURT SOUTH GROUND LEVEL

NOT TO SCALE
1 PROPOSED CENTER COURT SOUTH GROUND LEVEL

NOT TO SCALE
2 APPROVED HOTEL TOWER
REQUESTED 8í PRIVACY HEDGE DATUM
EXISITING 5í SITE WALL DATUM

PROPOSED SOUTH VILLAS
REQUESTED 8í PRIVACY HEDGE DATUM
EXISITING 5í SITE WALL DATUM

XXX XXX

XXX XXX XXX XXX XXX XXX

XXX XXX XXX XXX XXX XXX XXX XXX

XXX XXX

XXX XXX XXX XXX

XXX XXX

XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

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XXX XXX XXX XXX

XXX XXX

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Item 2A - Page 89
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30 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

VIEW OF SOUTHEAST CORNER FROM N AVENIDA CABALLEROS

XXX XXX

XXX XXX XXX XXX XXX XXX

XXX XXX XXX XXX XXX XXX XXX XXX

XXX XXX

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RENDER
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31 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING

VIEW OF SOUTH FACADE FROM EAST AMADO ROAD

XXX XXX

XXX XXX XXX XXX XXX XXX

XXX XXX XXX XXX XXX XXX XXX XXX

XXX XXX

XXX XXX XXX XXX

XXX XXX

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RENDER
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32 11/21/2022
21067.00
PLANNING SUBMITTAL 01
PLANNING SUBMITTAL 02
450 N. CALLE ALVARADO
PALM SPRINGS, CA 92262

SELENE PALM SPRINGS, LLC

06.29.2022

09.21.2022

SELENE PALM SPRINGS VILLAS

N O T F O R P E R M I T T I N G O R C O N S T R U C T I O N

12.15.2022 CITY COUNCIL HEARING
1234 CLADDING (SMOOTH FINISH)

PRECAST (PODIUM & HARDSCAPE)

GLASS (GLAZING)

METAL (WINDOWS & DETAILING)

INTERIOR COURTYARDS & PLANTING WITH WATER

OVERHANGS & SHADING AT ALL OPENINGS

ELEGANT STATE OF THE ART WINDOW WALLS

PRIVATE TERRACE ARCHITECTURAL SHADING SYSTEMS

PRIVATE WATER & LANDSCAPE

MATERIALS & INSPIRATION
Item 2A - Page 92
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NOT FOR REGULATORY APPROVAL , PERMITTING , OR CONSTRUCTION DRAFT

CITY COUNCIL STAFF REPORT
12/05/2022
SUBJECT:

APPROVE TEN-YEAR CONCESSION AGREEMENTS FOR RETAIL AND FOOD

AND BEVERAGE SERVICES AT THE PALM SPRINGS INTERNATIONAL AIRPORT RECOMMENDATION:

Approve the award of Concession Agreement for Retail to The Marshall Retail Group, LLC for an initial ten-year term beginning December 12, 2022, through December 11, 2032, with one, five-year extension option to be issued upon mutual consent of the City and MRG.

1. Approve the award of a Concession Agreement for Food and Beverage to Paradies Lagardére @PSP, LLC for an initial ten-year term beginning December 12, 2022, through December 11, 2032, with one, five-year extension option to be issued upon mutual consent of the City and Paradies.

2. Authorize the Interim City Manager or designee to execute all necessary documents.

3. Attachments
Item 3A Staff Report
Item 3A - Attachment A
Item 3A - Attachment B
Item 3A - Attachment C & D

CITY COUNCIL STAFF REPORT
DATE: DECEMBER 5, 2022 BUSINESS & LEGISLATIVE
SUBJECT: APPROVE TEN-YEAR CONCESSION AGREEMENTS FOR RETAIL AND

FOOD AND BEVERAGE SERVICES AT THE PALM SPRINGS

INTERNATIONAL AIRPORT
FROM: Teresa Gallavan, Interim City Manager

BY: Department of Aviation
SUMMARY:

This action will (1) approve a ten-year concession agreement for retail with the option to extend the term for one additional five-year period to The Marshall Retail Group, LLC (MRG) and (2) approve a ten-year concession agreement for food and beverage with the option to extend the term for one additional five-year period to Paradies Lagardére @PSP, LLC (Paradies) at the Palm Springs International Airport (PSP).

RECOMMENDATION:

1. Approve the award of Concession Agreement for Retail to The Marshall Retail Group, LLC for an initial ten-year term beginning December 12, 2022 through December 11, 2032 (Attachment A), with one, five-year extension option to be issued upon mutual consent of the City and MRG and;

2. Approve the award of a Concession Agreement for Food and Beverage to Paradies Lagardére @PSP, LLC for an initial ten-year term beginning December 12, 2022 through December 11, 2032, (Attachment B) with one, five-year extension option to be issued upon mutual consent of the City and Paradies.

3. Authorize the Interim City Manager or designee to execute all necessary documents BUSINESS PRINCIPAL DISCLOSURE:

The Public Integrity Disclosure form for The Marshall Retail Group, LLC is included as Attachment C; Paradies Lagardére @PSP, LLC is included as Attachment D.

Item 3A - Page 1
City Council Staff Report
December 5, 2022 -- Page 2
Award Airport Concession Lease Agreements
BACKGROUND:

It has been over twenty years since PSP has undertaken a competitive solicitation process for in-terminal food, beverage, and retail concessions. Given the length of the incumbent concession agreements and with record volume of Airport traffic at PSP in 2019, the City developed a solicitation for new, high-quality airport concessions. However, the City’s solicitation was advertised on March 12, 2020 coinciding directly with the COVID-19 pandemic and the immediate shutdown of all national air travel. Due to this fact, the City’s effort to solicit a Request for Proposals (RFP) for new concessionaires was suspended. At PSP, the City had two concessionaires, and on July 31, 2020, the food and beverage concessionaire terminated operations leaving only the retail (news and gift) concessionaire.

On October 8, 2020, City Council approved an extension to the current concessions lease agreement with Paradies which included an investment of over $512,000 to improve the food and beverage spaces and continue operating the retail spaces. The lease agreement was extended through April 30, 2023, to allow air travel and passenger traffic to gradually increase.

At the Palm Springs International Airport Commission’s (Airport Commission) August 24, 2021 meeting, the City Manager provided an overview of the 2021 City Council Visioning Session and asked the Airport Commission to identify their top two goals/priorities for the City Manager to present to the City Council. The Airport Commissioners voted the number one priority was to develop the Concessions RFP and have it released in Q3 of 2022, with the agreement awarded no later than Q4 of 2022.

Airport Staff and the Airport Commission worked together to review and modify the prior RFP scope of services, evaluation criteria and goals for the food, beverage, and retail interminal concession programs of the RFP. The following goals and objectives for the Airport’s food, beverage, and retail in-terminal concessions program were developed:

1. Have in-terminal food, beverage, and retail concession facilities that reflect a high quality of customer experience to align with the Coachella Valley’s reputation as a world-class destination.

2. Have a concessions program that articulates a local “sense of place”.

3. Provide a mix of local, regional, and national food, beverage, and retail brands.

4. Generate revenues to support the operation and maintenance of the Airport.

5. Provide innovative facility designs that complement the mid-century modern design of the Airport terminal; and

6. Provide uninterrupted service to the traveling public during all phases of the renovation, modernization, and expansion of the Airport’s in-terminal food, beverage, and retail concession program.

Based on these goals and objectives, the City issued a Request for Proposals (RFP) on June 13, 2022.

Item 3A - Page 2
City Council Staff Report
December 5, 2022 -- Page 3
Award Airport Concession Lease Agreements
STAFF ANALYSIS:

PSP developed the concessions spaces into five opportunities described below:

1. Retail – containing seven areas for retail stores located in the terminal processor, regional concourse and both the upper and lower level of the Bono concourse.

2. Food and Beverage – containing five areas for food and beverage located in the terminal processor, regional concourse, and the upper level of the Bono concourse.

3. Blank Space No. 1 – located in the courtyard area and targeted to small businesses.

4. Blank Space No. 2 – located pre-security and targeted to small businesses.

5. Blank Space No. 3 – located in the courtyard area and targeted to small businesses.

An RFP (RFP 10-22) was initiated by the City’s Procurement & Contracting Department on June 13, 2022, based on PSP and the Airport Commission specifications and goals.

Proposals were solicited directly via the City’s procurement vendor portal, PlanetBids and advertised in The Desert Sun for a total of 14 weeks. A pre-proposal conference was held on June 17 to engage the local community, regional and national brands. A site visit to all the advertised locations, including the back of house of the former Celebrity Bistro and catering kitchen in the terminal processer were completed. The turnout had over 46 participants primarily consisting of local businesses.

Three proposals were received for the retail concession package, two proposals were received for the food and beverage package, no proposals were received for blank space no. 1, two proposals were received for blank space no. 2 and no proposals were received for blank space no. 3 by the September 22, 2022 deadline. The proposers are as follows:

Retail Food and Beverage Blank Space No. 2
The Marshal Retail Group, LLC Paradies Lagardére @PSP, LLC Mr. Mann’s Design Gallery
The Hudson Group Retail, LLC SSP America, Inc. Vegan Cabana Paradies Lagardére @PSP, LLC
The proposals received aligned with PSPs goals outlined in the RFP for the Airport’s interminal food, beverage, and retail concessions program for the award of a Concessions Agreement that provides travelers and guests contemporary food, beverage, and retail concession products and services. Proposers responding to the RFP were required to demonstrate their vision for the in-terminal food, beverage, and retail concession programs at PSP, with an emphasis on local participation.

The evaluation committee, consisting of Senior Airport Staff, Planning, Visit Greater Palm Springs, and Steer Consulting evaluated the proposals against the evaluation criteria Item 3A - Page 3
City Council Staff Report
December 5, 2022 -- Page 4
Award Airport Concession Lease Agreements
outlined in the RFP which consisted of firm's experience, brands and concepts, facility design, management, operations and transition plans, pricing, and financials. The panel conducted interviews with all respondents, evaluated the financial components and produced its final score and ranking.

The following key facts and summary of the proposals submitted by MRG and Paradies is presented to provide context and support for the recommendation of the evaluation committee:

RETAIL – Marshal Retail Group (MRG):

Key facts
• Operates concession programs at 45 U.S. airports
• Over 38 years of experience in developing, managing, and operating concessions programs
• Received Readers’ Choice, Best Airport Shop for Local Merchandise and Airport Experience Conference, 2020 Best Overall Small and Best Travel Convenience Retailer
Proposal
• Provides Airport Concessions Disadvantaged Business Enterprise (ACDBE) participation of 20% (exceeding the Retail goal of 6.9%) • Provides proposed annual percentage rent to the City based on a blended rate of 20% of gross sales which includes 24% for travel convenience and vending, 13% for specialty retail and technology, 15% for duty free, coffee & ice cream truck and 7% for Apple products. The 20% percent rent compares favorably with the 12% paid under the current contract.

Item 3A - Page 4
Percentage Rents

19.6%

20.0%

5.0% 10.0% 15.0% 20.00/4 25.0%
• 2024 Paradies • 2024 Marshall • 2024 Hudson
City Council Staff Report
December 5, 2022 -- Page 5
Award Airport Concession Lease Agreements
• Invests $3.3 million in initial capital improvements (averaging at $735 per square foot) to modernize PSP retail concession premises
• Midterm refurbishment is 15% of the initial investment for four locations • Estimated $19.1 million of concession fees to PSP over the term of the agreement • All retail locations offer self-checkout stations, handheld point-of-sale devices, mobile payments as well as touchless/contactless purchasing with QR code technology
• Carry products with more than forty local and surrounding area vendors through partnerships and joint ventures.
• There are seven unique proposed concepts with a bonus concept as described below:
o Retail 1: Uptown – Is a 1,302 square foot travel convenience retail store in the regional concourse featuring souvenirs, travel essentials, books, local gifts, grab & go food items, and will showcase art from multiple local artists, including John Cuevas, Walker Noble, and Craig Mann, as well as community institutions, Palm Springs Art Museum, Minty’s Breeze Blocks, Desert Supreme, Raven’s Hearth, TKB Bakery and Deli.
o Retail 2: The Pink Door – Is a 162 square foot automated vending zone, open 24 hours a day in the terminal processor with three automated vending machines serving Joshua Tree Coffee Company, Farmer’s Fridge grab & go food, and Eat & Drink to include local vendor, Tutu’s Tortilla Chips from La Quinta, CA.
o Retail 3: InMotion – Is a 361 square foot tech store in the Bono concourse selling trusted brands such as Apple, Beats, Bose, JBL, and Sony. o Retail 4: Hey Joshua - Is a 361 square foot travel convenience store with a tribute to Joshua Tree National Park in the Bono concourse showcasing all the traditional products found in airport convenience such as magazines, bestselling books, snacks, chef crafted grab & go foods, travel essentials, Item 3A - Page 5
Initial Capital Investment
"' $4.5 C:
~ $4.0
~ $3.5
$3.0
$2.5
$2.0
$1.5
$1.0
$0.5
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• 2024 Hudson • 2024 Marshall • 2024 Paradies
City Council Staff Report
December 5, 2022 -- Page 6
Award Airport Concession Lease Agreements
and health remedies. Local items include Molly Moon crafts, Mojave Moon Apothecary, Opal Atlas, Joshua Tree Desert Rose, Joshua Tree Candle Company and TKB Bakery and Deli.
o Retail 5: Mojave Oasis - is a 2,197 square foot multi-concept retail marketplace in the Bono concourse featuring travel essentials, grab & go food items, reading materials, tech accessories and convenience items.

Local items sold include Palm Springs Life Magazine, the Living Desert, Rancho Relaxo, Rappi Palm Springs, the Body Deli, Club Time Wrap, Thick as Thieves, TKB Bakery and Deli, Palm Springs Farmers Market, the Ice Cream Shoppe, Joshua Tree Coffee Company, as well as brands from Trina Turk, Maui Jim, Ray Ban, golf apparel from Travis Mathew, Adidas, Black Clover, Elan and Fenini fashion, Marla jewelry, Walaroo hats, and Tumi travel essentials.
o Retail 6: I Heart PS is a 44 square foot automated vending in the Bono concourse offering Health & Wellness and Eat & Drink items with local vendor Crush Crush Cookies. Southern California artist Peter Tigler is creating a custom art piece for this space.
o Retail 7: PSP Employee Vending is located on the employee level of the Bono concourse with a single Eat & Drink vending option. o Bonus: Coachella Duty Free is a mobile duty-free cart to satisfy international and domestic passengers offering a product selection of beauty makeup, fragrance, body care, wine, spirits, tobacco, and gourmet food items.

FOOD & BEVERAGE - Paradies:

Key facts
• Operates concession programs at over 100 airports
• Over 62 years of experience in developing, managing, and operating concession programs
• Extensive experience operating at the PSP
• Owner of the Vino Volo brand, which is an 11-time recipient of the Airport Experience News award for the Food Operator with the Highest Regard for Customer Service
Proposal
• Provides ACDBE participation of 10% (exceeding the food and beverage goal of

9.1%)
• Provides proposed annual percentage rent based on a blended rate of 13% of gross sales which includes 15% for alcohol and 12% for food and beverage. This compares favorably with the tiered percentages of gross receipts paid under the existing contract, identified below:

Item 3A - Page 6
City Council Staff Report
December 5, 2022 -- Page 7
Award Airport Concession Lease Agreements
Food and Beverage Sales Percentage Rent
Less than $1.5M 4%
$1.5M < $3.0M 6%
$3.0M < $5.0M 8%
$5.0M < $7.0M 10%
Greater than $7.0M 12%
• Invests $11.3 million in initial capital improvements (averaging at $783 per square foot) to modernize PSP food and beverage concession premises. • During phase 1 of construction, Paradies proposes to open a new location that has been closed since the COVID-19 pandemic, which will add another dining option for passengers
• Estimated $19.2 million of concession fees to PSP over the term of the agreement Item 3A - Page 7
Percentage Rents

13.1%

2.0% 4.0% 6.0"/4 8.0% 10.0% 12.0% 14.0%
• 2024 Para dies • 2024 SSP America
Initial Capital Investment
VI $12.0 $11.3
C:
,Q $10.1
~ $10.0
$8.0
$6.0
$4.0
$2.0
$0.0
• 2024 SSP America • 2024 Paradies
City Council Staff Report
December 5, 2022 -- Page 8
Award Airport Concession Lease Agreements
• Locations offer mobile ordering app through Grab, order at the table and the Vino Volo loyalty app. Food can be ordered and delivered pre-security. • Three locations dedicated to local Palm Springs restaurants, two locations dedicated to national brands and one location attributed to the nine cities in the Coachella Valley.
• There are seven unique concepts further described below:
o Food & Beverage 1: Nine Cities Craft is a 1,988 square foot restaurant and bar, in the regional concourse with a seat count of 78, offering breakfast burritos, sandwiches and oats, lunch/dinner sandwiches, soups, salads, flatbreads, desserts, craft beers, ready-to-drink and handcrafted cocktails, and wine. Local craft beers include Coachella Valley Brewing and La Quinta Brewing.
o Food & Beverage 2 & 3: Vino Volo is a 2,489 square foot restaurant and bar, in the courtyard with a seat count of 64, offering breakfast skillets, avocado toast, croissants, lunch/dinner sandwiches, salads, flatbreads, soups, charcuterie boards, desserts, grab & go food items, California wines, local beers, and hand-crafted cocktails.
o Food & Beverage 4: El Mirasol and Coachella Valley Coffee share a 6,046 square foot space in the terminal processor, post-security and have a combined seat count of 106.
 El Mirasol is a local Palm Springs restaurant offering a Mexican cuisine menu of breakfast burritos, lunch/dinner, chips & guacamole, burritos, tacos, nachos, fruta fresca, cervezas and margaritas.  Coachella Valley Coffee is a local Palm Springs coffee company offering farm to cup coffee essentials like lattes, espresso, smoothies, and tea and breakfast food items, sandwiches, wraps, salads, and paninis.
o Food & Beverage 5: Trio and Half Moon Empanadas share a 1,959 square foot space in the Bono concourse.
 Trio is a local Palm Springs restaurant and bar with a seat count of 54 offering breakfast, appetizers, flatbreads, entrees, sides, cocktails, coffee, local drafts, and bottled beers.
 Half Moon Empanadas is a food and beverage kiosk with a seat count of 39 offering savory and sweep empanadas, coffee, and tea. o Food & Beverage 6: Buzz By Bar Fly is a 1,945 square foot bar and quick bites in the center Bono concourse with a seat count of 92, offering snacks, salads, wraps, sandwiches, local beer, ready-to-drink cocktails, and wines.

Discussion of Concessions Pre-Security
Since the introduction of Transportation Security Administration (TSA) security checkpoints after the terrorist attacks of September 2011, passengers are keen to spend their dwell time post-security. Similarly, there is limited demand for concessions presecurity, however; the traveling passengers are not the only customers of pre-security locations; meeters/greeters, well-wishers and airport employees are also regular patrons.

Item 3A - Page 8
City Council Staff Report
December 5, 2022 -- Page 9
Award Airport Concession Lease Agreements
Despite this, demand for pre-security concessions is normally quite limited, and this has been true at PSP as well.

For a variety of reasons, the concessions program before the TSA security checkpoint is smaller than it was pre-pandemic. First, the expansion of the Ticketing Wing removed the previous convenience retail shop, Desert News, which had generated about $500,000 in sales in 2019. Then, after the pandemic caused the incumbent food and beverage concessionaire to abandon its concession, the landside bar connected to the terminal processor Celebrity Bistro and the pre-security Starbucks locations were closed.

Together, these two locations generated about $650,000 in sales in 2019. The former Starbucks location was converted into a smaller space for automated Smart vending machines, while the former bar, known as blank slate no. 2, remains closed. It is the PSP’s intention to offer blank slate no. 2 at a later time; to one of the two proposed concessionaires.

Recommendations of Evaluation Panel and Airport Commission Upon completion of the evaluation process, staff recommends MRG as the highestranking proposer for the retail concessions package. Staff is recommending Paradies as the highest-ranking proposer for the food and beverage package. At this time, staff is not recommending any award for blank slate no. 2 as the proposers provided a suggestion to fill the space, but the evaluation team concluded the concepts were not financially viable for the pre-security location.

On November 22, 2022, Airport Staff presented the results of the retail RFP evaluations to the Airport Commission in closed session. The Airport Commission voted in favor to recommend (9-0 with 2 abstentions) to the City Council the approval of a concessions agreement for the retail agreement to The Marshal Retail Group, LLC.

Airport Staff presented the results of the food and beverage RFP evaluations to the Airport Commission in closed session. The Airport Commission voted in favor to recommend (10 with 1 abstention) to the City Council the approval of a concessions agreement for the food and beverage concession agreement to Paradies-Lagardére @PSP, LLC with the condition that Airport Staff work with Paradies to re-evaluate the locations of coffee and breakfast offerings and coordinate with a Design Ad Hoc Committee that is to be appointed by the Airport Commission Chairman to improve facility design concepts.

Item 3A - Page 9
City Council Staff Report
December 5, 2022 -- Page 10
Award Airport Concession Lease Agreements
ENVIRONMENTAL ASSESSMENT:

The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to approve contracts for the above-mentioned services, and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.

ALIGNMENT WITH STRATEGIC PLANNING:

N/A.

FISCAL IMPACT:

All revenue received will be deposited into Airport Account 415.38105.

MRG is projected to provide approximately $1.73 million in concession fees to the City through its in-terminal retail concession program during its first full year of operation. It is further projected that MRG will generate approximately $19.1 million (not adjusted for inflation) in concession fees to the City throughout the ten-year initial term of the retail concessions agreement.

Paradies is projected to provide approximately $1.75 million in concession fees to the City through operation of its in-terminal food and beverage concession program during its first full year of operation. It is further projected that Paradies will generate approximately $19.2 million (not adjusted for inflation) in concession fees during the ten-year initial term of the food and beverage concession agreement.

If during any year during the term of the retail concession agreement or food and beverage concession agreement either in-terminal concessionaire should underperform, MRG and Paradies will be obligated to pay the City a Minimum Annual Guarantee (MAG) concession fee of $750,000. If such underperformance were to occur during the entire ten-year term of either the retail concession agreement or food and beverage concession agreement, the MAG concession fee to the City would total $7.5 million each or $15.0 million combined.

Item 3A - Page 10
City Council Staff Report
December 5, 2022 -- Page 11
Award Airport Concession Lease Agreements
REVIEWED BY:

Procurement & Contracting Manager Kim Baker
Finance Director Nancy Pauley
Department Director Harry Barrett Jr.

Interim City Manager: Teresa Gallavan
ATTACHMENTS:

A. Concession Agreement Retail
B. Concession Agreement Food and Beverage
C. Public Integrity Disclosure Form - The Marshall Retail Group, LLC D. Public Integrity Disclosure Form - Paradies Lagardére @PSP, LLC Item 3A - Page 11

Page 1 of 152 ends

PALM SPRINGS INTERNATIONAL AIRPORT

CITY OF PALM SPRINGS
CONCESSION AGREEMENT A9330
THIS CONCESSION LEASE AGREEMENT (hereinafter “Agreement”) is made and entered into, to be effective this 12th day of December, 2022, by and between the CITY OF PALM SPRINGS, a California charter city and municipal corporation, (hereinafter referred to as “City”) and The Marshall Retail Group, LLC, (hereinafter referred to as “Concessionaire”). City and Concessionaire are sometimes hereinafter individually referred to as “Party” and are hereinafter collectively referred to as the “Parties.”

RECITALS
A. City is empowered to grant the right and privilege to operate certain concessions at the Palm Springs International Airport (“Airport”) as outlined in EXHBIT A Overall Concession Area, attached hereto and incorporated herein by this reference; and B. Concessionaire has warranted to City that it possesses the necessary experience and qualifications to conduct a Concession Operation at the Airport; and C. Concessionaire desires to receive the non-exclusive privilege of conducting a Concession Operation at the Airport, with exclusive rights to conduct such operation in the locations designated in EXHIBIT B Leased Concession Areas, attached hereto and incorporated herein by this reference, by entering into an Agreement with City, under mutually acceptable terms, conditions and covenants; and D. The Palm Springs City Council has determined that the award of concession privileges to, and the execution of a concession agreement with, Concessionaire will enhance the quality of concession operations at the Airport; Now, therefore, in consideration of the terms, conditions, covenants, and other provisions of this Agreement, the parties agree:

AGREEMENT
SECTION 1 SUMMARY OF TERMS AND DEFINITIONS
Each reference in the body of this Agreement to specific terms or phrases set forth in this SECTION 1 shall have the specific meanings and/or contain the respective express information set forth below. To the extent there is a conflict between the information in this SECTION 1 and any more specific provision of this Agreement, such more specific provision shall control.
“Alcoholic Beverage” includes alcohol, spirits, liquor, wine, beer, and every liquid or solid containing alcohol, spirits, wine, or beer, and which contains one-half of one percent (0.5%) or more of alcohol by volume and which is fit for beverage purposes either alone or when diluted, mixed, or combined with other substances. “Commencement Date” means the date the Concessionaire begins operation of the concession. [
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“Common Area” means those areas of the Airport designated as concession-related seating areas for the traveling public including but not limited to open patio space adjacent to the Concession Locations and shared seating areas.
“Concession Area” means those areas designated as food and beverage Concession locations on Exhibits A and B Concession Areas.
“Concession Fee” means the Minimum Annual Guarantee (MAG) or the Percentage Fee, whichever is greater.
“Concession Improvements” means those fixtures and other permanent improvements set forth in Concessionaire’s final construction plans approved by the City based on Concessionaire’s Proposal, attached hereto as EXHIBIT H and incorporated herein by this reference as well as areas that have been subsequently added or modified as described in EXHIBIT B Concession Areas, which Concessionaire is permitted to construct in, on or about the Concession Area, subject to the requirements of this Agreement, and such other fixtures and other improvements authorized by City in writing. “Concession Location” means an individual unit of the concession program providing food and beverage products and/or services to the general public, pursuant to the terms of this Agreement.
“Concession Operations” means the non-exclusive privilege to finance, design, construct/develop, and manage and operate a concession as described in SECTION 3, at the locations designated on the attached EXHIBIT B Concession Areas. “Concessionaire's Furnishings, Trade Fixtures, and Equipment” means all proprietary items of Concessionaire displaying distinctive features associated with Concessionaire’s operations and all personal property (exclusive of “Concession Improvements”) set forth in Concessionaire’s Proposal, attached as EXHIBIT H, which Concessionaire is permitted to install or locate within the Concession Area, subject to the requirements of this Agreement, and such other personal property or equipment authorized by City in writing. “Concessionaire's Property” means all Concession Improvements and Concessionaire's Furnishings, Trade Fixtures, and Equipment.
“Concessionaire’s Proposal” means the proposal submitted by Concessionaire in response to City’s REQUEST FOR PROPOSALS, and attached as EXHIBIT H to this Agreement.
“Day” means any calendar day. For purposes of this Agreement, the number of days in which any act is to be performed shall be computed by excluding the first day and including the last.
“Airport Director” means the person designated Director of Aviation by City, or such other person, division, department, bureau or agency, as may be designated by the City Council or the City Manager from time to time to exercise functions equivalent or similar to those now exercised by the Director of Aviation; the term also includes any person expressly designated by the Director of Aviation to exercise rights/and or obligations empowered in the “Director” under this Agreement.
“Effective Date” means the date this Agreement is executed by the City. “Environmental Laws” shall mean and include all federal, state, and local laws, statutes, ordinances, regulations, resolutions, decrees, and/or rules now or hereinafter in effect, as may be amended from time to time, and all implementing regulations, directives, orders, guidelines, and federal or state court decisions, interpreting, relating to, regulating or imposing liability (including, but not limited to, response, removal, remediation and damage costs) or standards of conduct or performance relating to industrial hygiene, occupational health, and/or safety conditions, environmental conditions, or exposure to, Item 3A - Page 2

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contamination by, or clean-up of, any and all Hazardous Materials, including without limitation, all federal or state super-lien or environmental clean-up statutes. “Expiration Date” the date the agreement expires.
“Federal Aviation Administration (FAA)” means the Federal Aviation Administration, created by the United States Government under the Federal Aviation Act of 1958, as amended, or such other successor agency or agencies of the United States Government. “Fiscal Year” means the period of 365 days that begins on July 1 and ends on June 30. “Hazardous Materials” shall mean any and all: (a) substances, products, by-products, waste or other materials of any nature or kind whatsoever which is or becomes listed, regulated or addressed under any Environmental Laws; and (b) any materials, substances, products, by-products, waste or other materials of any nature or kind whatsoever whose presence in and of itself or in combination with other materials, substances, products, by-products or waste may give rise to liability under any Environmental Law or any statutory or common law theory based on negligence, trespass, intentional tort, nuisance, strict or absolute liability or under any reported decisions of any state or federal court; and (c) any substance, product, by-product, waste or any other material which may be hazardous or harmful to the air, water, soil, environment or affect industrial hygiene, occupational health, safety and/or general welfare conditions, including without limitation, petroleum and/or asbestos materials, products, by-products or waste. “Hours of Operation” means the hours in which Concessionaire will offer its services and are set out in EXHIBIT C Airport Operation Guidelines and Tenant Manager Reference Guide, attached hereto and incorporated herein by this reference. “Laws” means all present and future applicable judicial decisions, statutes, laws, ordinances, regulations, building codes, Airport rules and regulations adopted from time to time, regulations, orders and requirements and policies of all governmental authorities, including without limitation, city, state, municipal, county, federal agencies or the federal government, the FAA or the TSA, and their departments, boards, bureaus, commissions and officials and such other authority as may have jurisdiction including, without limitation, any regulation or order of a quasi-official entity or body. “Like New” means the condition of the Concessionaire’s Property to appear in first-class condition, intact with no signs of wear on the Concession Property. “Minimum Annual Guarantee (MAG)” means the dollar amount that the Concessionaire will guarantee to the City as a minimum Concession Fee each year during the Term of the Agreement.
“Municipal Code” means the Palm Springs Municipal Code, as amended from time to time. “Person” means an individual, a corporation, a partnership, a joint venture or any other form of business association.
“Percentage Fee” is defined in Section 6 of this Agreement. “Product” means any and all services, products, goods, food or beverages, required or permitted under this Agreement to be made available for sale or sold by Concessionaire or any Subconcessionaire in the regular course of Concessionaire’s or Subconcessionaire’ s business at or from the Concession Area.
“Proposal” means the Proposal submitted by Concessionaire to City in response to City's Request for Proposals, attached as EXHIBIT H to this Agreement. “Security Deposit” a deposit supplied to the City upon execution of this Agreement a sum equivalent to twelve months of the first year’s MAG, due on the Commencement Date.

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“Shared Use Areas” means those areas of the Airport designated as Concessionaire and/or concession related Shared Use Areas (e.g.: loading docks, grease traps, elevators, garbage areas, grease interceptors or any other area designated by the Airport as shared).
“Shell Space” means those spaces within Terminal with unfinished interiors, concrete floor, no ceiling, and lease line walls without interior wall board. “Subconcessionaire” means any person who operates a business in the Concession Area under an agreement with Concessionaire, including, but not limited to, any franchise, joint venture, management, sublease or subconcessionaire agreement, for which the Airport Director has given prior written approval.
“Summary” means SECTION 1 Summary of Terms and Definitions of this Agreement. “Tax” shall mean and include any assessment, license, charge, fee, imposition, or levy imposed by any governmental body.
“TSA” means the Transportation Security Administration, part of the Department of Homeland Security, created by the United States Government under the Aviation and Transportation Security Act (“ATSA”) of 2001, as amended, or such other successor agency or agencies of the United States Government.
“Unavoidable Delay” means any strike, boycott, labor dispute, riot or embargo (any of which is directly related to Concession Operations and Airport Operations, shortage of building materials or other acceptable substitute not reasonably contemplated by the party responsible for procuring the same, Acts of God (such as earthquake, to the extent not insured against), act of a public enemy, act of a superior governmental authority, major weather disturbance, rebellion, sabotage and any other circumstance of a magnitude a reasonable person would believe is beyond the reasonable control of either party to this Agreement.

SECTION 2 TERM OF AGREEMENT

2.1 Term
This Agreement shall be binding on both parties from the Effective Date of the Agreement.

The term of this Concession Agreement shall continue for ten years subject to the terms providing for an opportunity to extend the term for option to extend for one additional fiveyear period. In either case, the Agreement may be sooner terminated in accordance with the terms of this Agreement.

2.1.1 Commencement of Operations

2.1.1.1 Following the Effective Date, Concessionaire, shall prepare architectural plans and specifications for the Concession Improvements, as provided in SECTION 22 Alterations and Improvements of this Agreement. Provided Concessionaire has received a Notice to Proceed (NTP) for construction in accordance with SECTION 22 herein, Concessionaire shall be prepared to commence construction.

2.1.1.2 Concessionaire covenants to open for business to the public with the Concession Area fully fixturized and stocked with merchandise and inventory on or before the Commencement Date and thereafter, subject to temporary closures for casualty, condemnation, remodel (to the extent approved by City), or Unavoidable Delay as more particularly described in SECTION 29.6 of this AGREEMENT, which prevent Concessionaire from conducting its normal business operations in the Concession Area.

2.2 Holdover
Unless City expressly consents in writing to Concessionaire holding over, Concessionaire shall be unlawfully and illegally in possession of the Concession Area, whether or not City Item 3A - Page 4

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accepts any fees from Concessionaire or any other person while Concessionaire remains in possession of the Concession Area without City’s written consent. If Concessionaire shall retain possession of the Premises or any portion thereof without City's consent following the expiration of this Agreement or sooner termination for any reason, then Concessionaire shall pay to City for each day of such retention 150% of the amount of daily rental as of the last month prior to the date of expiration or earlier termination.

Concessionaire shall also indemnify, defend, protect and hold City harmless from any loss, liability or cost, including consequential and incidental damages and reasonable attorneys' fees, incurred by City resulting from delay by Concessionaire in surrendering the Premises, including, without limitation, any claims made by the succeeding Concessionaire founded on such delay. Acceptance of Concession Fee(s) by City following expiration or earlier termination of this Agreement, or following demand by City for possession of the Premises, shall not constitute a renewal of this Agreement, and nothing contained in this SUBSECTION 2.2 shall waive City's right of reentry or any other right. Additionally, if upon expiration or earlier termination of this Agreement, or following demand by City for possession of the Premises, Concessionaire has not fulfilled its obligation with respect to repairs and cleanup of the Premises or any other Concessionaire obligations as set forth in this Agreement, then City shall have the right to perform any such obligations as it deems necessary at Concessionaire's sole cost and expense, provided that it first provides Concessionaire reasonable notice and an opportunity to cure the unfulfilled obligations. Any time required by City to complete such obligations shall be considered a period of holding over and the terms of this SUBSECTION 2.2 shall apply.

The provisions of this SUBSECTION 2.2 shall survive any expiration or earlier termination of this Agreement.

2.3 Delivery of Concession Area
City’s obligation to deliver the Concession Area to Concessionaire is subject to and conditioned upon termination of the agreement with, and surrender of the Concession Area by the current concessionaire. Except as otherwise set forth herein, Concessionaire’s failure to accept possession of the Concession Area within 14 days from City’s written Notice to Take Possession to Concessionaire, pursuant to the terms of this Agreement, shall be an Event of Default pursuant to SECTION 23 Default by Concessionaire of this Agreement.

SECTION 3 AUTHORIZED ACTIVITIES

3.1 Concession Operations
The Concessionaire shall have the non-exclusive right, privilege, and obligation to finance, design, develop, construct, install, maintain and operate Concession Operations, for the purpose of establishing a high-quality concession operation at the Airport as approved by the City. This Agreement is non-exclusive in character and in no way prevents the City from entering into an agreement with any other parties for the sale or offering of competitive services, products or items by other concessionaires/vendors at the Airport during the Term of this Agreement. By way of example, City may enter into agreements with other concessionaires for the sale or offering of similar food options via food trucks located outside the Airport. Concessionaire shall use the Concession Area for the Concession Operations and for no other purpose.

3.2 Authorized Use
Concessionaire is not permitted to use the Concession Area, the Terminal or the Airport except for conducting the Concession Operations as provided in this Agreement.

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including, without limitation, any expanded or new terminal areas. Further, the City shall not be restricted in any manner from granting exclusive or nonexclusive uses of Airport facilities to others, with the exception of the Concession Area.

3.3 General Approvals

3.3.1 Concessionaire shall provide a variety of innovative facility design concepts at the Airport to service Airport users, as described in Concessionaire’s Proposal and approved by City. Concessionaire shall create a mix that includes, at a minimum, wellknown market-tested national/international branded concepts and/or well-known local/regional branded concepts, or proprietary brands as approved by the Airport Director.

3.3.2 In consideration of Concessionaire's payment of the Concession Fee and all other fees and charges and the performance of all provisions of this Agreement and any amendment thereto, City grants to Concessionaire, and Concessionaire accepts from City, the right to install, operate and maintain the Concession Improvements and the Concessionaire’s Furnishings, Trade Fixtures and Equipment and to conduct the Concession Operations in the Concession Area, in accordance with this Agreement, Concessionaire’s Proposal, subsequent Annual Reports as more particularly described in SUBSECTION 4.4.11, and all City policies and guidelines.

3.3.3 Furthermore, the Concessionaire shall have the right, privilege and obligation to finance, design, develop, construct, install, maintain and operate and to cause Subconcessionaires to operate and maintain the Concession Locations depicted in EXHIBIT B.

3.3.4 City has granted a non-exclusive license (not an easement) to Concessionaire, to allow Concessionaire’s customers use of the Common Area. Although Concessionaire’s non-exclusive license may not be revoked during its rightful occupancy of the Concession Area, other Airport Passengers or users and customers of other concessionaires shall be allowed to use the Common Area. Furthermore, this grant of Concession Operations shall not be construed to limit in any manner the right of a regular passenger air carrier or City to install vending machines for the use of their employees in any employee rest area reserved for the exclusive use of employees of a scheduled passenger air carrier or City in any other public area, or any other area that the Concessionaire chooses not to develop at the request of the City.

3.3.5 Concessionaire shall develop, design, fund and construct, lease, operate, and manage concession units at the Airport of the type and amount as detailed in EXHIBITS B and H.

3.4 Ingress and Egress
Concessionaire and its Subconcessionaires, and their respective officers, employees, customers, patrons, invitees, contractors, subcontractors, suppliers of materials and furnishers of services shall have the non-exclusive right of reasonable ingress to and egress from the Concession Area, as reasonably required to carry on permitted activities as described herein, subject to City, governmental and regulatory (e.g., security) approval, and subject to conditions and restrictions pursuant to this Agreement. The manner and means of receipt of shipments of inventory and supplies shall also be subject to the approvals, conditions and restrictions described herein.

SECTION 4 GENERAL CONDITIONS
The commercial activities authorized in SECTION 3 Authorized Activities shall be subject to the following conditions and restrictions:

4.1 Compliance with Laws
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Concessionaire understands and agrees that Concessionaire’s actions under this Agreement shall be compliant with all existing and future agreements between the City and the United States of America regarding the use of the Airport. Concessionaire shall comply with and conform to all Laws applicable to or affecting, directly or indirectly, the Concessionaire, the Concession Area, or Concessionaire's operations and activities under this Agreement. Further, Concessionaire shall not do or permit anything to be done in, on or about the Concession Area, the Terminal or the Airport, nor bring or keep, or permit to be brought or kept therein, anything which is prohibited by a standard form of fire insurance policy or in any way increase or affect the then existing rate of fire or other insurance required to be carried upon the Concession Area, the Airport or the Terminal or any part thereof, or any of their contents, or which will cause a cancellation of any insurance policy covering the Concession Area, the Airport or the Terminal or any part thereof or any of their contents.

4.2 Limitation on Operations
Concessionaire shall not conduct or permit operations in the Concession Area that in the reasonable judgment of the City would:
a. Interfere or might interfere with the reasonable use by others of common facilities at the Airport;
b. Hinders or might hinder police, firefighters or other emergency personnel in the discharge of their duties; or
c. Would or would be likely to constitute a hazardous condition at the Airport.

4.3 Limitation on Uses
Concessionaire shall not engage either directly or indirectly in any form of business on the Airport or the Concession Area except as expressly authorized pursuant to this Agreement and as more particularly described in EXHIBIT H. Concessionaire may only engage in a different form of business upon the approval of the Airport Director, which may be withheld in his or her sole discretion.

4.4 Standards of Operations

4.4.1 Overview
During the Term of this Agreement, Concessionaire covenants to maintain, operate and keep or cause the maintenance and operation of the Concession Operations and the Concession Area in accordance with the provisions of this Agreement in a like new, firstclass manner and in a safe, clean, and sanitary condition at all times. Concessionaire further covenants to operate its Concession Operations and the Concession Area in accordance with the provisions as stated in EXHIBIT C Airport Operation Guidelines, the terms of this Agreement, and in full compliance with any and all applicable Laws, rules and regulations, and applicable standards, to the satisfaction of the Airport Director.

4.4.2 Operating Procedures
Concessionaire covenants to provide, or cause the provision of, prompt, courteous and efficient service to provide Products of the highest quality on a nondiscriminatory basis.

Concessionaire shall submit for City approval, at least 60 days prior to the commencement of operations, written operating procedures for the day-to-day management of its operations as they pertain to customer service (the “Operating Procedures”). City shall have, at a minimum, 30 days to review and comment on the Operating Procedures.

Within five days of receipt of the written request of Airport Director, Concessionaire shall meet with Airport Director to discuss product or menu selection, the quantity offered, the quality of service rendered; and such other matters which are directly related to the Concession Operations.

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4.4.3 Vacant Concession Locations

4.4.3.1 The concept, use, management and operation of any Concession Location that becomes vacant during the Term of this Agreement must remain the same as defined in Concessionaire’s Proposal as stated in EXHIBIT H unless otherwise approved by the Airport Director. If such vacant space is designated as a Subconcessionaire-operated Concession Location, Concessionaire shall, within 60 days after the Concession Location becomes vacant, market and enter into a Subconcession agreement for the vacant Concession Location to a new Subconcessionaire, regardless of the cause of the vacancy.

Notwithstanding the foregoing, if such vacant Concession Location is designated as a Concessionaire-operated Concession Location, Concessionaire shall, within 14 days after the Concession Location becomes vacant, re-open and operate the Concession Location.

Concessionaire shall be subject to liquidated damages as for non-compliance with this provision, in the amount of $1,000 per day, per location until the Concession Location is open and operating.

4.4.3.2 In the event that the City approves for the Concessionaire to re-concept the Concession Location, either previously Concessionaire operated or Subconcessionaire operated, the vacant Concession Location must be operational and open to the traveling public within six (6) months of becoming vacant. If the Concession Location has not completed the re-concept within six (6) months, Concessionaire shall be subject to liquidated damages for each day the Concession Location remains vacant in the amount of $1,000 per day.

4.4.3.3 If the Concession Location remains vacant for longer than six (6) months, possession of any such vacant Concession Location may revert back to the City, at City’s sole discretion.

4.4.4 Subconcession Agreements

4.4.4.1 If Concessionaire subcontracts, Concessionaire shall enter into subconcession agreements for food and beverage service operations as such subconcession concepts are approved by the Airport Director. Concessionaire shall provide City with a copy of all executed Subconcession agreements and revenue reports.

4.4.4.2 Concessionaire shall serve as the liaison between the Subconcessionaire and the City, and shall be responsible for coordinating its subconcession activities with the Airport. All Subconcession agreements shall be subject and subordinate to the terms and conditions of this Agreement.

4.4.4.3 Any and all Subconcession agreements shall immediately terminate upon termination of this Agreement for any reason, without direct recourse of any kind against the City.

4.4.5 Work Force
Concessionaire and each Subconcessionaire shall maintain an adequate sales and work force at all times, including, without limitation, sales, food servers, food preparation, food handlers, auxiliary or utility workers, cashiers, management and supervisory personnel, on-site to fully meet customer needs at all times. Concessionaire and Subconcessionaires shall use skill and diligence in the conduct of business and shall cause their respective employees to be courteous and helpful to the public at all times.

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4.4.6 Concession Area Payments and Expenses
Concessionaire shall bill and collect all amounts payable by Subconcessionaires under Subconcession agreements, and pay all operating expenses required under this Agreement.

4.4.7 Pricing

4.4.7.1 Concessionaire shall adhere to the pricing methodology as presented in Exhibit G, Pricing Program as may be amended from time to time by the City. Should any of the provisions in EXHIBIT G, attached hereto and incorporated herein by this reference, conflict with the pricing methodology as presented in the Concessionaire’s Proposal, the provisions of Concessionaire’s Proposal shall prevail.

4.4.7.2 Not less than 60-days prior to opening of any concession, Concessionaire shall submit a general list of items to be offered by each Concession Location, including Subconcessionaire Concession Locations, and the prices suggested to be charged in accordance with the Pricing Program in EXHIBIT G. The City shall have the right to request adjustments to these charges based on the pricing objectives outlined in EXHIBIT G or as amended from time to time. Additionally, City reserves the right to request removal of certain items from sale by Concessionaire and/or Subconcessionaires. No Concession Location shall open without a City approved price list.

4.4.7.3 All products sold by the Concessionaire shall be equal in price to those products sold in comparable off-Airport locations (excluding special promotional items) within the greater Coachella Valley plus fifteen percent (15%). Comparable locations will be determined by the City in consultation with the Concessionaire, and may change throughout the Term as determined by the City. The following venues are excluded comparable locations: concessions located in stadiums, arenas, amusement and entertainment venues, and hotel and casino gift shops.

4.4.8 Intentionally Omitted.

4.4.9 Airport Discount
As a good-neighbor service, Concessionaire shall offer all of its products at a 20% discount, to any person who displays a valid Airport identification or security badge. In the event there is a form of vending services in an employee designated area, the items will be offered at a 20% discount.

4.4.10 Concession Monitoring
Concessionaire shall monitor sales, activity, pricing, customer service, Hours of Operation, merchandise and sales reporting for their activities and all Subconcessionaires.

4.4.11 Annual Reporting

4.4.11.1 Concessionaire shall be required to submit, within ninety (90) days after the annual contract date during the term of this Agreement or any extension thereof, and within 90 days after the expiration of this Agreement, Concessionaire will provide the City with a detailed statement of Gross Revenues “Annual Report” for the previous contract year’s business operations for each location prepared in accordance with generally accepted accounting principles. Concessionaire agrees to faithfully abide by and perform the provisions of such Annual Report that is so developed and approved by the Airport Director. The Airport Director reserves the right to approve or deny the report. The Annual Report shall contain the following addressing all Concession Locations including those operated by Subconcessionaires:

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a. Management Plan: An updated Management Plan (from that originally set forth in Concessionaire’s Proposal) that includes Concessionaire’s latest organization chart and contact information;
b. Operational Plan: An updated Operational Plan (from that originally set forth in Concessionaire’s Proposal) that includes the following:
i. An updated listing of Concession Locations, including concession location number, concept number, name of location, type and square footage of the Concession location; ii.A review of the concession performance for the prior calendar year, including, without limitation, a comparison of sales projections versus actual gross sales by unit, rent paid by unit, ACDBE participation results, other financial results as requested by the Director, and other goals and objectives;
iii. The establishment of new operational goals and objectives for the forthcoming year of the Concession Program, including projections, for each location, of sales and payments to the City;
iv. A listing of improvements to operations for the prior calendar year and the upcoming year to enhance customer service, sales, or other aspects of the operation; v. Identification of Concession Locations that either will or might be replaced (“reconcepted”) during the subsequent year, if approved by the Airport Director; vi. Concessionaire’s program to support its Subconcessionaires; vii. Identification of current vendors;
viii. A listing of performance problems encountered during the previous year and the Concessionaires approach to resolve such problems;
ix. Any planned capital and/or refurbishment expenditures, investments or improvements in the Concession Area;
x. Any changes or improvements in operations anticipated in the following year, such as marketing efforts, scheduled maintenance, training, new or additional services within any Concession Location;
c. Customer Service Plan: A discussion of customer service improvements, initiatives and activities, including information on secret shopper programs, incentives, etc.; which shall include:
i. The results of any consumer surveys and other industry trend studies conducted during the previous year;
ii.A review of customer service issues, a complaint summary, and an explanation regarding how complaints were handled during the previous year; d. Marketing and Promotions Plan: Concessionaire shall submit information regarding the marketing and promotional activities to effectively promote the concessions including but not limited to:
i. Any planned promotional programs, celebrity appearances, entertainment, advertising media, pamphlets, advertising signage, sampling coupons and seasonal promotions for the upcoming year, and a proposed schedule for these promotions and events. ii.Specific market research tools used during the previous year (surveys, focus groups, data collection, store customer counts, video monitoring, etc.) and the results of such specific market research.
iii. Budget for such promotional programs for each Concession Location for the following year.

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e. Any other information reasonably requested by the City.

4.4.11.2 Any reports, including but not limited to the Annual Report, requested by the Airport Director not received by the required date shall subject Concessionaire to liquidated damages in the amount of twenty-five dollars ($25) per day until such reports are received by City.

4.4.11.3 In the event that the Concession Area operated by the Concessionaire or any portion thereof experiences a decline in revenues per enplaned passenger totaling ten percent or more over six consecutive months, or Concessionaire loses the franchise or license rights under which the Concession Area, or any discrete portion thereof was operated, the Airport Director may require the Concessionaire to provide an updated Annual Report or specific components of the Annual Report for the Airport Director’s review and approval in addition to any other remedies that may be allowed.

Concessionaire agrees to faithfully abide by and perform the provisions of any Annual Plan that is so developed and approved.

4.4.12 Customer Surveys

4.4.12.1 Upon request of the Airport, Concessionaire shall monitor the Airport customer market through periodic consumer surveys, the content and methodology of which shall be approved by the City in advance. Concessionaire shall have 60 days from the request of the Airport to complete such survey. Nothing in this Section shall preclude or restrict City from conducting independent, third-party surveys. If City elects to conduct such independent survey(s), Concessionaire shall cooperate with City in all respects with regard to such survey. Failure of Concessionaire to do so shall constitute a Performance Standards Breach and be subject to liquidated damages of $100 per day, until the customer survey is completed.

4.5 City Authority – Amendments

4.5.1 An amendment to this Agreement that amends the Agreement may be executed on behalf of the City by the City Manager or designee.

4.5.2 An amendment to this Agreement that amends the Pricing Program (EXHIBIT G) may be executed on behalf of the City by the Airport Director.

4.5.3 Amendments to this Agreement that change or modify the description of the Concession Area set forth in EXHIBIT B to specify in writing expansion, contraction or relocation of space and which include only such Concession Fees as are specified or authorized in accordance with SECTION 6 Fees and Deposits, may be executed on behalf of the City by the Airport Director.

4.5.4 Amendments to this Agreement that change or modify the description of the Concession Area set forth in EXHIBIT B to specify in writing expansion or contraction of the Concession Area as a result of Airport Terminal Development, and which include only such Concession Fees as are specified or authorized in accordance with SECTION 6, may be executed on behalf of the City by the Airport Director.

4.5.5 Amendments to this Agreement that change or modify the description of the locations of Temporary Concession Operation to specify in writing expansion, contraction or relocation of space of the Temporary Concession Operation locations, as further described in SUBSECTION 4.9 Temporary Assigned Concession Areas, and which include only such Concession Fees as are specified or authorized in accordance with SECTION 6 , may be executed on behalf of the City by the Airport Director.

4.5.6 The relocation, expansion or contraction of the Concession Area conducted pursuant to this Section, or the relocation of any airlines or any airlines’ gate or any other concession, shall not affect Concessionaire’s obligation to pay the Concession Fee.

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4.6 Relocation, Expansion or Contraction of Operations

4.6.1 Modification of Concession Area

4.6.1.1 In the event that changes in business conditions, Airport development, and/or security issues necessitate the relocation, expansion or contraction of the Concession Area, or any part thereof, Concessionaire shall relocate all or part of its operations or the Concession Area, or any part thereof, or contract or expand the size of the Concession Area in an expeditious manner only as may be permitted, directed or required by the Airport Director.

4.6.1.2 In the event that City requires Concessionaire to relocate or contract all or part of the Concession Operations, City shall reimburse Concessionaire for Concessionaire’s reasonable relocation or contraction costs as calculated in accordance with SUBSECTION

4.6.1.3 (the “Reimbursement”).

4.6.1.3 The following shall be considered guidelines for calculating the Reimbursement. (A) For each Concession Area, Concessionaire’s Allowable Improvement Costs for the Concession Improvements in that Concession Area shall be depreciated by Concessionaire on a straight-line basis over the initial Term of the Agreement with no residual value, starting from the date that Concessionaire commences Concession Operations in that Concession Area. If Concessionaire is relocated solely at City’s request and not due in whole or in part to any act or omission of Concessionaire, City agrees to pay Concessionaire for the unamortized portion of Concessionaire’s Allowable Improvement Costs (calculated as of the time that Concessionaire is required to vacate the Concession Area).
(B) City shall reimburse Concessionaire for the then unamortized net book value of the Concession Improvements, provided that Concessionaire has met all of the requirements as stated in SUBSECTION 22.4.5.
(C) If the Airport Director determines that the removal of Concessionaire’s Property from the existing Concession Area and its installation at Concessionaire’s new Concession Area is possible and not unreasonably burdensome to Concessionaire, Concessionaire shall be entitled to reimbursement only for its costs to relocate such Property. (D) Concessionaire agrees to bear, at its sole cost and expense, the costs of relocation of any portion of the Concession Area that is not requested by the Airport Director or that is necessitated by Concessionaire’s operations, and that is approved in writing by the Airport Director.

4.6.1.4 In the event that changes in business conditions necessitate the reduction, relocation or expansion of the Concession Area the City shall provide Concessionaire at least 60 days advance written notice. Concessionaire shall have the right to accept or reject any proposed reduction, relocation, or expansion of the Concession Area. If accepted, the City and Concessionaire shall negotiate, in good faith, for the payment of any costs associated with such change. If Concessionaire rejects the reduction/relocation/expansion, or if the parties are unable to reach agreement regarding the payment of costs associated with such change, the City may, at the City’s discretion, terminate this Agreement. If Concessionaire is not in default under any of the provisions of this Agreement on the effective date of termination, the City shall refund any Concession Fee prepaid by Concessionaire, to the extent allocable to any period subsequent to the effective date of the termination, and reimburse Concessionaire the then unamortized net book value of Leasehold Improvements. Concessionaire shall not be entitled to any compensation at termination for the bargain value of the leasehold or any relocation expenses.

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4.7 New Airport Terminal Development
The Airport Director may identify space for future concession development in locations not part of this Agreement. The Airport Director may request a proposal from Concessionaire to develop and lease these spaces. Subject to the negotiation and Airport Director’s approval of the proposed use, to the extent practical, the space shall be incorporated into and subject to the terms of this Agreement upon written amendment to this Agreement Concessionaire shall have no exclusive or first right to lease future concession space.

4.8 Temporarily Assigned Concession Areas
Upon written approval from the Airport Director, the Airport Director may grant to Concessionaire the right to use various individual locations, to be mutually agreed upon, as might become available from time to time as “Temporarily Assigned Locations”. All provisions of this Agreement shall apply to the operation of the Temporarily Assigned Locations. Concessionaire shall be permitted to operate such Temporarily Assigned Locations only for the specified permitted use and the specific time period granted by the Airport Director. The intent of the Temporarily Assigned Locations is to allow Concessionaire the opportunity to operate permitted business activities, provide increased customer service levels and to generate revenue to the City. Concessionaire shall relinquish the Temporarily Assigned Locations to the City upon 30 day notice from the Airport Director.

4.9 Temporary Concession Operation During Construction
During any period of construction and development of the Airport, within 30 days of written request by the City, Concessionaire shall submit to the Airport Director for approval, a Temporary Concessions Plan, to provide retail, food and beverage services. This Temporary Concession Plan shall:
a. Ensure a high level of customer satisfaction during the temporary phase; b. Ensure that passengers are provided with a variety of choices; c. Identify the phasing schedule for all Locations including Subconcessionaire Locations; d. Specify which existing concession spaces, if any, will continue to function in the same capacity during the transition phase and how long such operations shall continue; e. May include a combination of temporary locations and permanent locations; f. Establish a barricade signage program for any unoccupied or incomplete concessions spaces. The designs for the barricades will be subject to the Airport Director’s approval and must complement the interior design and finish of the Terminal and Concourses.

Such barricades shall provide information on similar locations within reasonable walking distance, as well as “coming soon” information, as it is available; g. Include provisions for Airport Director approval of all the menus and all products.

For the initial development and construction of the Concession Area under this Agreement, Concessionaire shall install a Temporary Concession Operation in the locations as defined in the Concessionaire’s Proposal and attached as EXHIBIT H.

For any future development and construction of the Concession Area under this Agreement, Concessionaire shall install a Temporary Concession Operation in the locations as approved by the Airport Director. Approved Temporary Concession Operations shall be at such Concession Fees as are specified in accordance with SECTION 6 and shall be approved in writing by the Airport Director without further amendment to the Agreement.

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4.10 Mobile Carts
In accordance with SECTION 3, Concessionaire shall operate or shall cause Subconcessionaires to operate mobile carts to sell/serve beverages and snacks, in instances where there are excessive lines for any reason, as determined by the Airport Director, when such service is warranted to maintain a high level of customer service.

4.11 Personnel
Concessionaire shall select, engage, employ, pay, supervise, direct and discharge all employees or independent contractors reasonably necessary or appropriate for the proper and safe operation and maintenance of the Concession Area as further described in EXHIBIT C. Concessionaire shall comply with all Laws and regulations affecting such employment.

4.12 City Not Liable for Employment Issues
This Agreement is not one of agency by Concessionaire for the City, but one with Concessionaire engaged independently in the business of managing the Concession Area on its own behalf. All employment arrangements and labor agreements are, therefore, solely Concessionaire’s rights, obligations and liabilities, and the City shall have no obligations or liability with respect thereto.

4.13 Nondiscrimination

4.13.1 Covenant Against Discrimination. In connection with its performance under this Agreement, Concessionaire shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition (each a “prohibited basis”).

Concessionaire shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City’s lawful capacity to enter this Agreement, and in executing this Agreement, Concessionaire certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Concessionaire activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Concessionaire is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in City contracting.

4.13.2 Concessionaire certifies that, in dealing with Subconcessionaires under this Agreement, it has not discriminated or given any preference to any firm based on race, sex, color, age, religion, sexual orientation, actual or perceived gender identity, disability, ethnicity or national origin. Concessionaire shall fully comply with all Federal and State of California laws pertaining to nondiscrimination, and Chapter 4.08 of the Palm Springs Municipal Code, and shall not discriminate or grant preferential treatment on the basis of age, sex, race, religion, color, creed, disability, ethnicity, sexual orientation, actual or perceived gender identity or national origin in connection with or related to the performance of this Agreement. Concessionaire understands that any such discrimination or preference is in violation of Chapter 4.08 of the Palm Springs Municipal Code.

Concessionaire shall make efforts to include participation from all segments of the community in connection with or related to the performance of this Agreement.

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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 concession agreement, management contract, or subcontract, purchase or lease agreement, or other agreement covered by 49 CFR Part 23.

4.13.4 The Concessionaire or contractor agrees to include the above statements in any subsequent concession agreement or contract covered by 49 CFR Part 23, that it enters and cause those businesses to similarly include the statements in further agreements.

4.13.5 Concessionaire shall ensure that Concessionaire’s agreements with Subconcessionaires include language requiring Subconcessionaire to include the above statements in SUBSECTION 4.8.1 and SUBSECTION 4.8.2, in any subsequent concession agreement or contract covered by 49 CFR Part 23, that it enters and cause those businesses to similarly include the statements in further agreements.

4.14 Official Products/Sponsorships

4.14.1 The City reserves the right to enter into contracts with one or more manufacturers or suppliers granting to these companies’ certain exclusive rights pertaining to the sale of Products at the Airport. Concessionaire agrees to include Products of said exclusive supplier or manufacturer in Concessionaire’s menu or merchandise list, as applicable. If the City grants such an exclusive right during the Term of this Agreement, Concessionaire shall have sixty (60) days from receipt of written notice to comply with the exclusive right. Concessionaire agrees not to sell, display, advertise, or promote similar Products of or from other manufacturers or suppliers unless Concessionaire has first received written approval from the Airport Director, which approval may be withheld at the Airport Director’s sole discretion.

4.14.2 If similar agreements are reached with credit card companies or if the City licenses its name, Concessionaire will be required to carry those credit cards or City licensed merchandise, as appropriate for the type of concession.

4.15 Airport Policies and Procedures
If, during the Term of this Agreement, the Airport institutes policies and procedures related to the Concessionaires Operations at the Airport, Concessionaire shall comply with such policies and procedures, as may be amended from time to time.

4.16 No Smoking Areas
The inside of the entire Airport is designated as a “No Smoking” area. Concessionaire shall post “NO SMOKING” signs in its Concession Area if requested and approved in writing by the Airport Director.

4.17 Environmental Requirements
Concessionaire shall procure environmentally preferable products and services that meet environmental product standards established by governmental or other widely recognized authorities. Examples include the Green Seal 37 (GS 37) standard for janitorial products (www.greenseal.org), the Electronic Product Environmental Assessment Tool (EPEAT) for IT equipment (https://greenelectronicscouncil.org), and Green Guard for furniture (http://greenguard.org).

4.17.1 Environmentally Preferable Custodial Supplies
Concessionaire shall only use custodial products that are approved by the non-profit organization "Green Seal” as updated from time to time (www.greenseal.org). No "equivalent" or "equal to" products will be considered.

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4.17.2 Airport Specific Environmental Requirements
Concessionaire shall integrate environmental factors into Concessionaire’s buying decisions. At a minimum Concessionaire shall:
a. Use re-usable, recyclable or compostable goods, e.g., cutlery, plates, cups etc. b. Ensure products meet the following product content and requirements:
i. Purchase products that contain the highest percentage of post-consumer recovered material and the highest percentage of total recovered material in the marketplace (eg.

Minimum of 30% post-consumer content for paper)
ii.Ensure that specifications and performance standards for goods and services do not require the use of products made from virgin materials nor specifically exclude the use of environmentally preferable products.
iii. Replace disposables with reusable, recyclable, or compostable goods. iv. Avoid Hazardous Materials that have the potential to be persistent, bio-accumulative and/or toxic (PBT). Consider impacts and threats of harm to human health and/or the environment.
v. Require manufacturers and their suppliers to disclose to the City the material content of their products.
c. Appoint a liaison to participate in in-house coordination meetings for solid waste and recycling programs.
d. Comply with all current and future City and State recycling programs, standards, policies and procedures. The recycling program requirements will include: recycling bins for paper (mixed or separate, depending on the existing stream); recycling bins for all beverage containers (glass, plastic, aluminum cans) that are being used by Concessionaire; and other materials that can be handled locally in the existing system, such as cardboard, and cooking oil/grease waste. Bins will be provided by City if not already provided by the Concessionaire. Concessionaire agrees to let City place containers and related signage in administrative, meeting, food service, bar areas, and public spaces.
e. Instruct staff to use appropriate recycling containers. f. Use solid waste and recyclables storage bins appropriately to avoid contamination. g. Implement any City adopted waste diversion practices and policies. h. Allow City to inspect water usage, energy usage, and recycling practices, and to encourage water/energy reduction practices.
i. Provide sufficient solid waste and recyclable storage space in Concession Areas and Common Areas.
j. Establish detailed environmental policies and a strategy to implement them.

Concessionaire shall consistently communicate the policies in various ways to engage all employees, vendors and patrons.
k. Encourage the use of low-impact transportation (i.e., walking, biking, mass transit) which reduces energy consumption and emissions.
l. Shift written communications to e-mail whenever possible. When printing is required, Concessionaire shall use double-sided copies whenever possible. m. Focus on cost-saving, energy-efficient efforts. These may include:
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ii. using laptops when possible (on average they use 10% less energy than desktop computers);
iii. using LCD monitors;
iv. Encouraging employees to turn off equipment and lighting, and turn down thermostats when leaving for extended periods of time;
v. using inkjet printers rather than laser printers as they use less energy; vi. considering equipment that can print on both sides of paper; and vii. considering multi-purpose office equipment (i.e., all-in-one fax, printer, scanner, copier). These generally require less energy and space than their individual counterparts.

4.18 Disposal, Use and Storage of Hazardous Materials
The disposal, use, and storage of Hazardous Materials by Concessionaire is more particularly described in Exhibit E, attached hereto and incorporated herein by this reference.

SECTION 5 LABOR & PREVAILING WAGE

5.1.1. If required by law, Concessionaire shall cause its contractors and subcontractors to: pay prevailing wages in the performance of any work pursuant to this Agreement as those wages are determined pursuant to Labor Code Sections 1720 et seq.; to employ apprentices as required by Labor Code Sections 1777.5 et seq.; and comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1725.5, 1771, 1771.1, 1771.4, 1776, 1777.5 et seq., 1810-1815 and the implementing regulations of the Department of Industrial Relations (the “DIR”) for all such Labor Code sections.

5.1.2. Concessionaire shall indemnify, hold harmless and defend (with counsel reasonably selected by the Landlord), to the extent permitted by applicable law, City, its councilmembers, commissioners, officials, employees and agents, against any claim for damages, compensation, fines, penalties or other amounts arising out of the failure or alleged failure of any person or entity (including Concessionaire, or its contractors or subcontractors) to pay prevailing wages as determined pursuant to Labor Code Sections 1720 et seq., to hire apprentices in accordance with Labor Code Sections 1777.5 et seq., or to comply with the other applicable provisions of Labor Code Sections 1720 et seq., 1725.5, 1771, 1771.1, 1771.4, 1776, 1777.5 et seq., 1810-1815 and the implementing regulations of the DIR in connection with any work performed pursuant to this Agreement.

The provisions of this Section shall survive termination of this Agreement.

SECTION 6 FEES & DEPOSITS

6.1 Concession Fee
Commencing upon the Effective Date, Concessionaire agrees to pay to City a monthly Concession Fee, as defined herein.

6.1.1.1 Percentage Fee Calculation
a. From the Effective Date, Concessionaire shall pay a Percentage Fee of Concessionaire’s Gross Revenues. The Percentage Fee shall be calculated per location on a Fiscal Year basis as follows:
“Gross Revenues” includes, but is not limited to, all moneys and other consideration generated or received by Concessionaire (including all Gross Revenues generated or received by Concessionaires’ subcontractors, Subconcessionaires, agents, employees, representatives, Subconcessionaires or other customers, Subconcessionaire(s), joint venturer(s), and/or equity partner(s), (if any)) for the conduct of its business pursuant to this Agreement or for any other use of the Concession Area or the Airport by any person Item 3A - Page 17

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or entity, unless specifically excluded below. Such moneys or other consideration shall include, without limitation:
(i) all transactions entered into or finalized at the Airport, whether or not the Concession Area was used at any point in the transaction; and
(ii) transactions made at an off-Airport location, or the internet, if the Concession Area was used for any aspect of such transaction.

Such moneys or other consideration are considered Gross Revenues even though payment and/or delivery of the food or merchandise/products or other items occur or the service is performed off-Airport. Gross Revenue shall include all such transactions, whether for cash or for credit, regardless of whether a final collection is made in credit transaction, and shall also include orders taken at the Concession Area by internet where the sale is made or item is picked up at the Concession Area, mail, telephone, facsimile transmission, electronic mail, or any other methods of communication, regardless of whether actual delivery of the food or merchandise/products or other items is made or the service is performed at the Airport. Gross Revenues equal the total money or other consideration arising from the final transaction and are not limited to the value directly attributable to on-Airport operations. All money or other consideration shall be deemed received at the time of the transaction, whether for cash or credit. Rebates given after the close of the transaction shall not be subtracted from Gross Revenues. For the purposes of this definition of Gross Revenues, “Concessionaire” shall include Sub-concessionaires and:
(i) Any entity or person that, directly or indirectly, controls, is controlled by or is under common control with Concessionaire; and
(ii) Any successor to Concessionaire’s rights and obligations hereunder, whether through merger or consolidation or sale or purchase of stock; and (iii) Any assignee or transferee of all or any portion of Concessionaire’s rights and obligations under this Agreement.

For illustration purposes, Gross Revenues specifically shall include, without limitation:

Amounts generated by the sale, rental, storage, delivery, shipping, preparation of or provision of merchandise, goods, products, services, food, beverages, dishware, glassware, utensils, and/or linens and/or all other personal property of any kind or provision of any service:
(i) For any Airport passenger, customer, or user, whether or not the sale, storage, delivery, shipping, preparation of or provision of such items or services occurs on-Airport; or
(ii) If any aspect of the sale, storage, delivery, shipping, preparation of or provision of such items or provision of such service occurs on-Airport; or (iii) If by vending machine or other mechanical device, where the vending machine or mechanical device is located on-Airport or, without regard to the location of the vending machine or other mechanical device, if any aspect of the sale, storage, delivery, shipping, preparation of or provision of such items or provision of such occurs on-Airport; (iv) Amounts generated from pick-up and/or delivery of any item at the Airport, done directly by Concessionaire or its agents or indirectly through any third person or entity and from any services performed in relation to such pick-up or delivery, whether or not such items are prepared or made partially or entirely off-Airport; (v) Amounts generated from any pick-up of any item at the Airport by any person or entity or delivery of any item from the Airport to any person or entity for the purpose of Item 3A - Page 18

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(directly or indirectly) delivering such item to any off-Airport location and from any services performed in relation to such pick-up or delivery, whether or not such items are prepared or made entirely on-Airport or are made or prepared partially on-Airport and receive further preparation elsewhere;
(vi) Amounts generated from other contracted services with other Airport Concessionaires and users, or other third parties;
(vii) Other amounts and rentals arising from the Concession Area or Concessionaire’s rights under this Agreement, including, but not limited to, amounts generated by allowing use of space, fixtures, improvements or equipment on the Concession Area by any person or entity; or
(viii) With respect to any loss of Gross Revenues, the full amount of any and all insurance proceeds or claims that are paid to the Concessionaire or Sub-concessionaire on any gross earnings or Gross Revenues as a result of a business interruption. (ix) Amounts realized from promotional accommodation or promotional services, retail display allowances, performance allowances, special purchase allowances, including the design and preparation of visual merchandising services and transparencies, or as a promotional or advertising allowance, credit, rebate or discount from Concessionaire’s suppliers
For the purpose of defining Gross Revenues, such moneys or other consideration expressly shall not include:
(i) The amount of any federal, state, or local sales or other excise tax separately stated and collected from customers;
(ii) The sale of uniforms or clothing, at Concessionaire’s cost, when such uniforms or clothing are required to be worn by Concessionaire’s employees. (iii) Amounts received by Concessionaire to provide meals to Concessionaire’s employees;
(iv) Amounts which Concessionaire is entitled to due to the sale or trade-in of any furniture, fixtures or equipment used on the Concession Area; (v) Amounts allocated to the value of furniture, fixtures or equipment transferred to or from the Concession Area;
(vi) Any and all gratuities and tips given by any customer to any employee of Concessionaire or any Subconcessionaire for any services rendered at or from the Concession Area;
(vii) Any and all receipts of Concessionaire or any Subconcessionaire that arise solely from its or their operations under any other agreement with City at the Airport; (viii) Amounts and credits received for Product returned to shippers, wholesalers or manufacturers;
(ix) All Funds received by Concessionaire from its Subconcessionaires for reimbursement of maintenance charges incurred by Concessionaire on behalf of its Subconcessionaire.
(x) Discounts on the retail price of Product not exceeding twenty percent (20%) of the approved retail price given by Concessionaire to Concessionaire’s employees, travel industry personnel, volume purchasers and other special categories of customers, which have been previously approved, in writing, by the Director.

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(xi) Allowances or refunds allowed by Concessionaire to customers because of unacceptable or unsatisfactory goods or services to the extent such allowance or refund was actually granted and adjustment actually made;
(xii) The amount of any exchange of merchandise between stores of Concessionaire or Subconcessionaires where such exchanges are made solely for the convenient operation of Concessionaire or its Subconcessionaires’ business and not for the purpose of consummating a sale which has been made at, upon or from the Concession Area. (xiii) The amount of any sum received as insurance proceeds or a judicial judgment or settlement to restore damage to property of Concessionaire, or to restore a tangible loss, theft or conversion;
(xiv) Any item, such as the cost of third-party shipping, for which the Concessionaire is reimbursed at actual cost therefor; provided, however, in the event that Concessionaire charges a customer more than the actual cost of such item (specifically including through the inclusion of a “handling” or similar charge by Concessionaire), any such addition charge shall be considered Gross Revenue.

Notwithstanding any provision of this Agreement to the contrary, the Concession Fee shall not be subject to the MAG set out in SUBSECTION 6.1.2 below at any time prior to the Commencement Date.
b. From the Commencement Date, Concessionaire shall pay to the City on a monthly basis the greater of a) one-twelfth of the MAG set out in SUBSECTION 6.1.2 below, or b) the Percentage Fee set out in subsection a. above.

6.1.2 Minimum Annual Guarantee Payment (MAG)
Concessionaire shall pay a MAG as outlined in Attachment “F” of EXHIBIT H.

6.1.2.1 Annual MAG Adjustment

6.1.2.1.1 The MAG shall be adjusted on an annual basis on the Annual Adjustment Date, as defined below. To make the MAG adjustment easier for accounting purposes, the annual MAG adjustment shall be effective on the first day of a calendar month.

6.1.2.1.2 The first Annual Adjustment Date for each MAG shall occur 12 months after the first day of the first full calendar month occurring after the Commencement Date.

Thereafter, this date shall serve as the Annual Adjustment Date. On each Annual Adjustment Date, the MAG shall be adjusted to equal eighty-five percent (85%) of the Concession Fee actually due to the City during the previous twelve (12) months.

However, the MAG for any year shall not be less than the previous year’s MAG. An Annual Adjustment shall be made at the end of each and every Annual Adjustment Date with respect to any underpayment or overpayment of the Concession Fee. If Concessionaire has overpaid the Concession Fee, City shall apply the overpayment to any monthly installment then due and payable to City.

6.1.2.1.3 Concessionaire shall not be entitled to any MAG reduction or other monetary compensation as a result of terminal evacuations ordered by the City or any other governmental authority.

6.1.2.2 MAG Adjustment Due to Airport Terminal Development The MAG shall be adjusted if the Concession Area is increased as a result of Airport Director’s acceptance of Concessionaire’s Proposal for any new Terminal facilities that become operational during the Term of this Agreement, in accordance with SUBSECTION

4.7. The amount of the adjusted MAG shall be in accordance with Concessionaire’s Proposal for such new Terminal facilities.

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6.1.2.3 MAG Adjustment Due to Expansion or Contraction of Operations The MAG shall be adjusted due to expansion or contraction of the Concession Area as a result of changes in business conditions that necessitate the expansion or contraction of the Concession Area, or any part thereof, as required by the City, in accordance with SUBSECTION 4.8 . The MAG shall be reduced by the proportion of the Concession Fee due to the City for the Concession Location being affected over the total Concession Fee from all location due to the City the previous 12 month period. For the subsequent Fiscal Year, the contracted location’s concession fees shall not be applied to the MAG calculation.

6.1.2.4 MAG Abatement due to decline in Passenger Activity

6.1.2.4.1 Among other passenger related statistics, the City calculates the number of enplaned passengers at the Airport. If the number of enplaned passengers in any given Fiscal Year as calculated by the Airport, falls below eighty five percent (85%) of the number of enplaned passengers during the previous Fiscal Year, then upon the next Annual MAG Adjustment Date, the MAG shall be reduced by taking the percentage of reduction of enplaned passengers over 85% from the previous Fiscal Year, and multiplying that fraction by the current year’s MAG.

6.1.2.4.2 There shall be no reduction in the MAG pursuant to this provision unless the number of enplaned passengers in any given Fiscal Year as calculated by the Airport, falls below eighty five percent (85%) of the number of enplaned passengers during the previous Fiscal Year.

6.1.2.4.3 For the succeeding Fiscal Year, the MAG shall then be set pursuant to SUBSECTION 6.1.2.1.

6.1.2.4.4 The Airport shall calculate the number of enplaned passenger no later than sixty (60) days after the end of each applicable year during the Term of this Agreement.

6.1.2.4.5 If the number of enplaned passengers in any given continuous three-month period as calculated by the City, falls below seventy percent (70%) of the number of enplaned passengers during the same continuous three-month period during the previous year, then for the following month, the MAG shall be reduced by taking the percentage of reduction of enplaned passengers from the same continuous three-month period during the previous year, and multiplying that fraction by one-twelfth current year’s MAG, to calculate that month’s MAG payment.

6.1.3 Monthly Fees and Due Dates

6.1.3.1 MAG Payment Due
Beginning on the Commencement Date, Concessionaire shall pay one-twelfth of the then current MAG payments in advance, without notice from City, on or before the first day of each calendar month during the Term of this Agreement. Concessionaire's obligation to pay a monthly MAG payment shall be independent of any amounts paid in prior months.

6.1.3.2 Percentage Fee Due and Monthly Concession Report

6.1.3.2.1 No later than twenty (20) days after the end of each month, occurring after the Commencement Date, Concessionaire shall deliver to the City as rent a sum of money which represents the amount by which the Percentage Fee in the preceding month exceeds the MAG and a Monthly Concession Report, in the form as attached as EXHIBIT F and incorporated herein by this reference for the preceding month’s activity, even if no money is due. If fees are due for any period less than a full calendar month, Concessionaire shall deliver the amount by which the applicable Percentage Fee exceeds the prorated MAG for such period.

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6.1.3.2.2 If the Percentage Fee applicable to any month does not exceed the MAG payment for any month, no additional percentage of Gross Revenues shall be due and payable for such month. The amount due and payable for such month shall be one-twelfth of the applicable MAG. The Monthly Concession Report remains due no later than the 20th day of each month for the preceding month’s activity regardless of whether a Percentage Fee is due for any such month. The Monthly Concession Report shall be email ed to [email protected]

6.1.3.2.3 If the Monthly Concession Report is not provided on or before the twentieth 20th day of each month as required herein, Concessionaire shall pay for administrative expenses incurred by City, a fee of Twenty-Five Dollars ($25.00) per day for each day that the Monthly Concession Report is late until such date as the Monthly Concession Report is submitted to the Airport Director. This fee is established by City Council Resolution and may be adjusted from time to time in accordance with City Council Resolution.

6.1.4 Annual Concession Fee Reconciliation (True Up)
An Annual Adjustment shall be made no later than sixty (60) days after the Annual Adjustment Date with respect to any underpayment or overpayment of the Concession Fee. If Concessionaire has overpaid the Concession Fee, City shall apply the overpayment to any monthly installment then due and payable to City. If Concessionaire underpaid the Concession Fee, Concessionaire shall pay such underpayment as stated in SUBSECTION 7.4 Underpayment by Concessionaire.

6.1.5 Payment of Rent, Fees or Charges
All rent, fees or charges required to be paid in advance on or before the 1st day of each month pursuant to the terms of this Agreement, shall be paid on or before the 1st day of each month without any requirement of notice from City, deduction, credit or offset. Such fees shall be deemed delinquent if not received by City on or before the 15th day of the month. Any fees or charges which are payable by Concessionaire in arrears for the preceding month's activity are due and payable within 30 days from the date of City's invoice. Concessionaire hereby acknowledges that late payment to City of any rent, fee, charge or other sum due hereunder will cause City to incur costs not contemplated by this, the exact amount of which will be extremely difficult to ascertain. If any such rent, fee, charge or other sum due from Concessionaire is not received by City on or before the due date, then Concessionaire shall pay to City a late payment fee equal to one and a half percent per month of the amount not paid, calculated for each day, from the due date until the date that payment is received by City. City reserves the right to require that any late payments be made only in the form to be specified by the Airport Director, and City further reserves the right to reject any late payment that is not in a form approved by the Airport Director. The parties hereby agree that such late fee represents a fair and reasonable estimate of the cost that City will incur by reason of Concessionaire's late payment. City's acceptance of such late fees shall not constitute a waiver of Concessionaire's default with respect to such overdue amount or stop City from exercising any of the other rights and remedies granted hereunder either at law or in equity.

6.1.6 Taxes and Assessments
Concessionaire shall pay, or cause the payment of, any and all other fees and charges, including, without limitation, all taxes, charges and assessments, interest payments, public agency fees and charges, insurance premiums, surety payments, and bond payments that are due and payable by Concessionaire under the provisions of this Agreement or under any laws.

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6.1.7 Other Fees and Charges
In addition to any other fees, general charges or other amounts set forth elsewhere in this Agreement, Concessionaire shall pay any other general fees and charges as established by City when due.

6.2 Payment Location
The Concession Fee payable by Concessionaire shall be paid in lawful money of the United States, free from all credits, claims, demands, off-sets or counterclaims of any kind against City, to: City of Palm Springs – Finance, Payment Processing – P.O. Box 2743, Palm Springs, CA 92263-2743, or to such person or at such place as City may designate from time to time in writing.

6.3 Security Deposit

6.3.1 Concessionaire shall deposit and maintain with City upon execution of this Agreement a sum equivalent to twelve (12) months of the first year’s MAG, due on the Commencement Date. The Security Deposit shall be payable to the “City of Palm Springs” in the form of: (a) an irrevocable standby letter of credit in a form as approved by the Airport Director. On each Annual Adjustment Date, Concessionaire shall adjust the Security Deposit to an amount equal to 12 months of the then current MAG calculated as of that Annual Adjustment Date.

6.3.2 The Security Deposit shall be held by City and may be applied against any unpaid fees, rates or charges due and owing to City under this Agreement. If City makes such deduction, Concessionaire shall restore the Security Deposit to the full amount required by Airport Director, within thirty (30) days of a written demand by Airport Director.

A failure to do so shall entitle City to terminate this Agreement on 30 days’ notice. Any amounts remaining from the Security Deposit (after deductions for delinquent or unpaid fees, costs, or charges as specified above) at the expiration or earlier termination of this Agreement shall be returned to Concessionaire, without interest, after a determination by the Airport Director that all amounts owed to City under this Agreement have either been paid in full or have been deducted from the Security Deposit. The Security Deposit shall continue eighteen months the Expiration Date of the Agreement.

SECTION 7 BOOKS AND RECORDS

7.1 Audit of Books and Records

7.1.1 Concessionaire shall maintain and make available for City’s inspection and/or audit at Concessionaire's Address specified in the Summary, for a period of not less than four years, separate and accurate daily, monthly and annual records of Gross Revenues using a form and method approved by Airport Director, and in accordance with generally accepted accounting principles (“GAAP”), showing in detail all business done or transacted. Concessionaire shall furnish City with such other financial or statistical reports as Director from time to time may reasonably require.

7.1.2 Concessionaire shall also maintain, or cause to be maintained by Subconcessionaire, separate and accurate records of construction on Fixed Improvements and Refurbishments in the Concession Area in accordance with GAAP.

7.2 Records Available for Inspection
Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit at no cost to City at any time during regular business hours upon written request by the Airport Director, City Attorney, City Auditor, City Manager, or a designated representative of any of these officers. Copies of such documents shall be provided for inspection at a location designated by City when it is practical to do so. Unless an alternative location is mutually agreed upon, the records Item 3A - Page 23

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shall be available at Concessionaire’s Address indicated for receipt of notices in this Agreement.

7.3 Lost or Discarded Records
If City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Concessionaire’s business, City may, by written request by any of the above-named officers, require that custody of records be given to City and that the records and documents be maintained at a location designated by the Airport Director, City Attorney, City Auditor or City Manager. Access to such records and documents shall be granted to any party authorized by Concessionaire, its representatives or its successor-in-interest.

7.4 Underpayment by Concessionaire
If any examination, inspection, and/or audit of Concessionaire's books and records by City discloses an underpayment by Concessionaire, Concessionaire promptly shall pay City the amount of such underpayment and, if such underpayment is in excess of one percent of the fees and charges due, the Concessionaire promptly shall reimburse City for all costs incurred in the conduct of such examination, inspection or audit, including interest from the time such underpayment was due, at the rate of one and one half percent per month.

Concessionaire shall furnish City with such other financial or statistical reports as Airport Director, from time to time, may reasonably require.

7.5 Statement of Gross Revenues

7.5.1 No later than ninety (90) days after the Annual Adjustment Date, as more particularly described in SUBSECTION 6.1.2.1, Concessionaire shall provide to the City for each Subconcessionaire an annual statement of Gross Revenues arising out of the operations of each Subconcessionaire for the preceding calendar year. Such statement shall be certified, at the Concessionaire’s sole expense, by a Certified Public Accountant.

As soon as practicable after the end of each calendar year, but in no event later than April 30th, Concessionaire shall provide a separate statement for the Concession Area showing, in reasonable detail, consolidated Gross Revenues for the preceding calendar year and the amount of MAG due to the City (the “Annual Concession Report”).

7.6 Preparation of Concession Reports

7.6.1 Each Monthly Concession Report as more particularly described in SUBSECTION 6.1.3.2.1 and Annual Concession Report shall be prepared on a cash accounting basis and certified by the Chief Financial Officer or other principal accounting officer of Concessionaire as being true and correct in all material respects. Each Annual Concession Fee Statement shall also be certified by a Certified Public Accountant affiliated with an accounting firm selected by Concessionaire and approved by the City, with the City’s approval not to be unreasonably withheld, conditioned, or delayed.

7.6.2 If the certified Monthly Concession Report or Annual Concession Report provided under this Section demonstrates a shortfall in comparison with the actual Concession Fee paid under SECTION 6, Concessionaire shall pay the amount of such shortfall with the next Concession Fee payment due, plus interest calculated from the date full payment should have been received by the City.

7.7 Delinquent Concession Reports
If Concessionaire is delinquent for fifteen (15) days or more in furnishing the City with any Annual Concession Report required to be delivered under this Agreement, Concessionaire shall pay the City twenty-five dollars ($25) per day thereafter per delinquency as liquidated damages for the City’s additional costs incurred in monitoring and enforcing Concessionaire’s compliance with this reporting requirement.

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7.8 Quality Control Reports
Concessionaire shall provide to the City quality control audits and reports covering cleanliness of the Concession Area, timeliness of service and quality of the Products.

Also, Concessionaire shall furnish to the City such other financial or statistical reports as the City may reasonably require from time to time verifying compliance by Concessionaire with the terms of this Agreement.

If Concessionaire is delinquent for fifteen (15) days or more in furnishing the City with Quality Control Report requested by the City, Concessionaire shall pay the City twenty-five dollars ($25) per day thereafter per delinquency as liquidated damages for the City’s additional costs incurred in monitoring and enforcing Concessionaire’s compliance with this reporting requirement.

7.9 Other Financial and Statistical Reports
No later than thirty (30) days after receipt of a request from the Airport Director, Concessionaire shall furnish the City with such other financial, statistical, or operational reports as the Airport Director, from time to time, may reasonably require, including but not limited to the purpose of determining the accuracy of the Gross Revenues, Concession Fee, labor compliance, ACDBE participation, and FAA requirements. Unless Concessionaire has requested additional time to produce any such reports and the Airport Director has approved any such request, a delinquent report fee in the amount of twentyfive dollars ($25) will be assessed for each day any such additional records are not timely received by the City.

SECTION 8 INSURANCE

8.1 Required Insurance Coverage

8.1.1 Prior to commencing any work or operations under this Agreement, Concessionaire at its sole cost and expense and for the Term of this Agreement, all extensions thereof, shall obtain and maintain or shall cause to be obtained and maintained insurance against claims for injuries to persons or damages to property which may arise from or in connection with the activities of Concessionaire and its agents, employees and contractors, meeting at least the minimum insurance requirements set forth in EXHIBIT D Insurance Requirements, attached hereto and incorporated herein by this reference, on terms and conditions and in amounts as required by City from time to time and with insurers acceptable to City. City shall not be obligated to take out insurance on Concessionaire's Property. Concessionaire shall provide City with certificates of insurance or copies of all policies and such endorsements as may be required by City.

These requirements are subject to amendment or waiver if so approved in writing by the Risk Manager of the City of Palm Springs (“Risk Manager”).

8.1.2 From time to time at the request of the Risk Manager, Concessionaire shall provide a written statement of the replacement cost of the Concession Improvements, with a copy to the Airport Director.

8.2 Waiver of Subrogation
City and Concessionaire hereby mutually agree that so long as their respective insurance carriers concur, any fire and extended coverage insurance policies carried on properties which are the subject of this Agreement shall include a waiver of subrogation against the other party hereto, provided that such agreement applies only to subsequent loss.

SECTION 9 BAILEE DISCLAIMER
The Parties understand and agree that City in no way purports to be a bailee and is therefore not responsible in any way for any damage to Concessionaire's Property or the property of Concessionaire's contractors, agents, employees and invitees.

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SECTION 10 INDEMNITY

10.1 Indemnification
Concessionaire, for and on behalf of its directors, officers, employees and agents, covenants and hereby agrees to indemnify, defend, protect and hold harmless City, its officers, employees, contractors and agents from and against any and all claims, demands, damages, obligations, liabilities, losses, costs, expenses, penalties, suits or judgments at any time received, incurred or accrued by City, its officers, agents, employees, contractors or members of the public using Airport facilities, arising out of or resulting in whole or in part from any act (or failure to act) of Concessionaire, its officers, employees, contractors, agents, or permittees , or which results from their noncompliance with any Laws respecting the condition, use, occupation or safety of the Airport or the Terminal, or any part thereof, or which arises from the Concession Operations or which arises from Concessionaire's failure to do anything required under this Agreement, except as may arise from the sole active negligence or the willful misconduct of City, its officers, employees or agents. City's right to full indemnity hereunder shall arise notwithstanding that principles of joint, several or concurrent liability or comparative negligence, might otherwise impose liability on City pursuant to statutes, ordinances, regulations or other Laws. All of Concessionaire’s obligations under this Subsection are intended to apply to the fullest extent permitted by law and shall survive the expiration or sooner termination of this Agreement. In an action or claim against City in which Concessionaire is defending City, City shall have the right to approve legal counsel providing City’s defense. The provisions of SECTION 16 regarding the Americans with Disabilities Act of 1990 (“ADA”) shall not limit Concessionaire’s indemnification under this provision.

10.2 Assumption of Risk
Concessionaire agrees to and covenants that it shall voluntarily assume any and all risk of loss, damage or injury to the person or property of Concessionaire, its directors, officers, employees, agents, and contractors which may occur in, on or about the Terminal or the Airport at any time and in any manner, except such loss, injury or damage as may be caused by the sole active negligence or the sole willful misconduct of City, its officers, employees or agents. The indemnification obligations of Concessionaire shall include the obligation of Concessionaire to defend, indemnify, protect and hold harmless City, its officers, agents or employees, from and against fines, costs, claims, damages, obligations, suits, judgments, penalties, proceedings, causes of action, losses, liabilities or costs arising under the Americans with Disabilities Act of 1990 (ADA), which arise from Concessionaire's activities under this Agreement.

SECTION 11 WAIVER OF CLAIMS

11.1 Concessionaire, as a material part of the consideration to be rendered to City under this Agreement, hereby waives all claims or causes of action which it may now or hereafter have against City, its officers, employees, contractors or agents for damages to its operations (including without limitation any interruption thereof), or to goods, wares, Product, equipment or other property on or about the Airport, and for injuries to or death of any persons on or about the Airport, from any cause or condition arising at any time, except as may arise from the sole active negligence or willful misconduct of City, its officers, employees or agents.

11.2 By way of example and not limitation, save and except as arises out of the sole active negligence or the willful misconduct of City, its officers, agents, contractors or employees, Concessionaire hereby waives any and all claims or causes of action which it may now or hereafter have against City, its officers, agents, contractors or employees (a) for loss, injury or damage sustained by reason of any deficiency, impairment and interruption of any water, electrical, gas, plumbing, air conditioning or sewer service or Item 3A - Page 26

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system serving any portion of the Airport; (b) for any loss, injury or damage arising or resulting from any negligent act or omission of any other tenant, subtenant, contractor, airline, concessionaire or occupant of the Airport, or any person who uses the Airport with or without the authorization or permission of City; (c) from the flight of any aircraft of any kind and all kinds in, through, across, or about any portion of the airspace above the Airport; (d) from noise, vibration, currents and other effects of air, illumination, and fuel consumption, or fear thereof, arising or occurring from or during the flight of any aircraft or from or during the use by aircraft of the Airport, including but not limited to, landing, storage, repair, maintenance, operation, run-up, and take-off of such aircraft and the approach and departure of aircraft to or from the Airport; and (e) for any loss or damage to the property of, or injury or damage to Concessionaire, its officers, agents, employees, contractors, Subconcessionaires or any other person whomsoever, from any cause or causes arising at any time because of Concessionaire's uses or occupancy of such building or of the Airport, or its operations thereon.

SECTION 12 SECURITY MEASURES

12.1 Concessionaire agrees to abide by all provisions of the Airport's Security Plan approved by the Federal Aviation Administration (FAA) and/or Transportation security Administration (TSA), and agrees to institute and carry out all security measures as provided in the plan. Any violations of the security plan which result in fines to the City by the FAA and/or TSA, and which are caused by Concessionaire, its officers, agents, or employees, will be assessable to Concessionaire by City and will be deemed to be additional fees and charges payable by Concessionaire to City following invoice thereof by City to Concessionaire pursuant to SECTION 6 of this Agreement.

12.2 Concessionaire shall be solely responsible for instituting and carrying out specific security measures in the areas where it is authorized to operate to prevent vandalism or damage to persons or property. City shall be responsible only for general security throughout the Airport and shall not be liable for any vandalism or damage to persons or property that may occur in the areas of Concessionaire's Operation.

12.3 Concessionaire understands and acknowledges that City reserves the right to implement or change security measures that may limit public access to the Airport or the Terminal. In such event, Concessionaire waives all rights against City for such limitation, and City shall not be liable to Concessionaire for any amount, including compensation, in the form of reduction of the Concession Fee.

12.4 Concessionaire recognizes that the Airport is required to comply with the security mandates of the Department of Transportation, the Federal Aviation Administration, the Transportation Security Administration, the Department of Homeland Security, and with other governmental and administrative rules and regulations relating to airports. Any procedures determined by the City to be applicable to Concessionaire in order for the City to comply with the foregoing will be furnished to Concessionaire in writing and delivered by email and/or facsimile transmission, confirmed by mail, to Concessionaire at its notice address provided in this Agreement.

12.5 Concessionaire further agrees that all or a portion of its operations hereunder may be temporarily or permanently reduced or terminated if the Federal Aviation Administration (FAA) and/or Transportation Security Administration (TSA) requires that all or a portion of the Concession Improvements or Concessionaire's Furnishings, Trade Fixtures and Equipment must be removed from the Airport. In such event, the Airport Director is authorized, on behalf of City, to take all action necessary to comply with such requirement, including without limitation, terminating this Agreement.

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12.6 The Concessionaire shall ensure that its employees participate in such safety, security and other training and instructional programs, as the City or appropriate Federal agencies may from time to time require.

12.7 To the extent any of Concession personnel require identification badges security clearance for access at the Terminal, and the screening of goods, products, equipment, materials and supplies, the Concessionaire is responsible at its expense for securing such badges, clearance and screening. The Concessionaire will cause Subconcessionaires to be similarly responsible for their personnel under the subconcession agreement, and will monitor compliance by Subconcessionaires with required badging and security clearances and the screening of Subconcessionaires’ goods, products, equipment, materials and supplies. Concessionaire will apply default remedies under subconcession agreements as required to remedy violations or other deficiencies by Subconcessionaires.

SECTION 13 WASTE OR NUISANCE

13.1 Concessionaire shall not commit, cause, maintain, permit or suffer, or allow to be committed, caused, maintained or permitted, any legal waste upon the Concession Area, the Terminal or the Airport, or any public or private nuisance, or injury or any improper or unlawful use on the Airport or surrounding areas of the Airport, or any other act or thing, or omission to act, which may in any way disturb the quiet enjoyment of or obstruct or interfere with the rights of any other concessionaire, tenant, licensee, invitee or Subconcessionaire of any portion of the Concession Area, the Terminal or the Airport or any portion thereof. Concessionaire shall maintain in safe, good and clean condition all areas of the Airport where Concessionaire conducts its operations.

13.2 Without limitation of the foregoing, Concessionaire shall conduct its operations in accordance with all applicable United States Department of Transportation authorizations and Federal Aviation Administration Operating Certificates. Concessionaire shall obtain any and all permits and licenses required by City or other governmental entity as are necessary to conduct the activities authorized under this Agreement.

SECTION 14 SERVICES AND UTILITIES

14.1 City’s Obligation
Concessionaire has inspected and accepts the utility hookups in the Concession Area.

Unless and except to the extent otherwise specifically provided by other provisions of this Agreement, Concessionaire shall secure any electrical, gas, water, pest control, sewer to include grease trap removal and telephone services to the Concession Area utilized by the Concessionaire as it may require, upon prior approval of the Airport Director. Any additional utility connections beyond those in the Concession Area at the time of Concessionaire’s inspection are Concessionaire’s responsibility. Installation of such additional utility connections shall be at Concessionaire’s sole cost and expense and are subject to the provisions of SECTION 22 regarding Concession Improvements. Any utilities provided by City shall be paid by Concessionaire on a pro-rated basis as established by City. The location, relocation and coordination of all utilities and telephone facilities to service the Concession Area shall be subject to the prior written approval of the Airport Director. Concessionaire shall, upon request by the Airport Director, cap off all utility connections installed by Concessionaire and restore the affected areas to their original condition upon expiration or earlier termination of this Agreement.

Notwithstanding the foregoing, the pro-rata payment provisions of this paragraph shall not apply in the event Concessionaire directly pays utility providers for utility services.

14.2 Concessionaire's Obligation
During the Term, Concessionaire shall pay or cause to be paid at its sole cost and expense to City, within thirty (30) days after Concessionaire receives an invoice therefor, Item 3A - Page 28

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Palm Springs City CouncilDecember 5, 2022

Palm Springs City Council
December 5, 2022