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HomeMy WebLinkAbout12747 ORD - 08/13/1975jkh:7 -8 -75; 1st AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE A LEASE BETWEEN THE CITY AND THE FIDELITY & CASUALTY COMPANY OF NEW YORK, COVERING THE INSUR- ANCE CONCESSION RIGHTS AT CORPUS CHRISTI INTERNATIONAL AIRPORT, ALL AS SET FORTH IN THE LEASE, A SUBSTANTIAL COPY OF WHICH IS- ATTACHED HERETO, MARKED EXHIBIT "A;" IS MADE A PART HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the City Manager be, and he is hereby, authorized and directed, for and on behalf of the City of Corpus Christi, to accept and approve a lease between the City of Corpus Christi and the Fidelity & Casualty Company of New York covering the insurance concession at the Corpus Christi International Airport, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A." 1444! 1� -INSURANCE SALES CONCESSION TM STATE OF TEXAS I COUNTY OF NUECES Z I This agreement made and entered into by and between the City of Corpus Christi, acting herein by and through its City Manager with authority duly conferred by the City Council, hereinafter referred to as the City, and the FiDFI ITY & CASIIALTY Cot4PANY OF PlFif YnaK hereinafter referred to as Lessee. W I T N E S S E T H WHEREAS, the City owns and operates Corpus Christi International Airport, located in Nueces County, Texas, and WHEREAS, Lessee proposes to engage in the sale of insurance, as herein- after defined, at Corpus Christi International Airport, and the parties hereto are desirous of entering into this Lease Agreement; NOW, THERErORE, in consideration of the premises, and for and in con- sideration of the charges, fees, rentals, covenants and agreements contained herein, parties hereto do hereby agree as follows: ARTICLE I. DESCRIPTION OF LEASED SPACE City does hereby lease unto Lessee, subject to all the terms, conditions, and covenants of this Agreement, the area within the Terminal Building at Corpus Christi International Airport, as outlined and shown on a drawing marked Exhibit A, which is attached hereto and made a part hereof for all intents and purposes as if copied verbatim herein. ARTICLE II. USE OF LEASED PREMISES 1. Lessee shall use the premises herein leased for insurance sales and associated activities as herein defined. No other use shall be made of the leased premises without the specific written permission of the City prior to the beginning of any other use. 2. Definition. Insurance sales are hereby defined as the selling of annual and short term travel and collateral insurance policies, including but not limited to Domestic and International Airline Trip Insurance, Annual Avia- tion Accident Insurance, Short Term Travel Insurance, Common Carrier Travel all '%4 It Insurance and Personal Effects Insurance through the installation, operation, servicing and maintenance by itself or through any designated agent acting for it, of dispensing machines and counters, in such numbers and at such locations as may be mutually agreeable in any Terminal Building or Buildings now controlled or which may be controlled by the City during the tern of this agreement or by such other means as may be agreed to by the parties hereto. Staffing of the insurance counter will be accomplished by joint use of limousine concession employees. The Insurance Counter Sales, Paging and Information Services will be arranged on conditions mutually satisfactory to the parties. ARTICLE III. PRIVILEGES, RIGHTS, USES, AND INTERESTS 1. General Privileges, Rights, Uses, and Interests. The Lessee herein shall have the right to use the public areas and public airport facilities in common with others so authorized. It is mutually agreed, however, that the Tight to use the public airport facilities shall be exercised subject to and in accordance with the laws of the United States of America and the State of Texas, and in accordance with all reasonable and applicable rules, regulations, and ordinances of the City. 2. Special Privileges Rights Uses and Interests. Without limiting the Tights of the Lessee herein, the Lessee shall enjoy the following: a. The right to engage in the handling of hotel and motel reserva- tions, theater ticket reservations, and sight seeing tours on a commercial basis. b. The right to represent Western Union on a commercial basis, pro- vided that Lessee is so authorized by Western Union. C. The Lessee herein shall be entitled to place and erect signs and advertising material within the spaces assigned provided that written permission is obtained from the Airport Manager prior to the installation of any sign or advertising material at any location within the boundaries of the Corpus Christi International Airport. 3. Privileges Rights Uses and Interests Excluded. It is specifically agreed and stipulated that the following privileges,.rights, uses and interests are excluded from this lease: a. Ground transportation for hire. b. Automobile rental service. C. News and sundry sales. d. Advertising concessions.- e. Barber, valet and personal services. f. The sale of food and /or drink. \J) ARTICLE IV. ACCEPTANCE OF PREMISES Lessee acknowledges that the premises have been inspected and does hereby agree to and does accept the leased premises in their present physical condi- tions, and Lessee further agrees to pay the total cost of additional improvements except as otherwise specifically provided herein. ARTICLE V. TEMI The term of this lease and agreement shall be five (S) years, commencing on the date of the execution hereof and terminating five (5) years from said date, provided, however, Lessee has not defaulted in any of the terms, conditions and provisions hereof. ARTICLE VI. RENT Lessee agrees to pay the City as rental for the use and occupancy of the leased premises and for the privileges, rights, uses and interests as above set forth rental according to the following schedules: 1. A minimum annual guarantee of - - - - Dollars per month or TWENTY-FIVE Percent ( 2� %) of gross zeceipts from the sale of insurance, less only bona fide refunds, whichever is greater. 2. Payments referred -to in Paragraph 1 above shall be computed monthly and a check to cover, together with an explanatory statement, shall be forc;arded to the Airport Manager prior to the 15th day of the month next succeeding the month of account. .3. Lessee agrees to keep full and accurate records of all its transactions, sales and income, that in any way concern rental to the City, and further agrees that all books and records covering such sales shall be open to inspection by the City at all reasonable times. 4. The City hereby appoints its Airport Manager as its agent to receive all rentals and reports under this agreement, and Lessee hereby agrees to submit the aforementioned reports and payments to the Airport Manager. It is, however, specifically agreed that the City may designate others as agents to inspect Lessee's books and records, as above mentioned, provided such inspections are performed at reasonable times during working hours. 3 - 4. Lessee agrees to staff and operate the insurance counter during normal periods of operation of commercial airlines, more particularly before and during departing flights. 5. Lessee agrees to operate the insurance counter through a qualified in- surance agent who is a resident of the City. ARTICLE IX. GENERAL PROVISIONS I. Indemnification. The City shall stand indemnified by the Lessee as herein provided. It is expressly understood and agreed by and between the parties hereto that the Lessee herein is and shall be deemed to be an independent contractor and operator responsible to all parties for its respective acts or omission and for those of its agents, servants, employees, invitees, tenants and sub - lessees, and the City shall in no way be responsible therefor. It is further agreed that in the use of the airport and in the maintenance, erection or con- struction of any improvements thereon, and the exercise or enjoyment of the privileges herein granted, the Lessee agrees to indemnify and save harmless the City from any and all losses that may proximately result to the City from any negligence on the part of the Lessee, Lessee's agents, servants, employees and invitees and for those of its tenants and sub - lessees. The Lessee hereby agrees to carry public liability insurance in the minimum sum of $50,000 for one person and $100,000 for any one accident and in addition thereto to carry a minimum of $50,000 insurance for property damage liability. All insurance shall name the City as an insured. Ali said policies shall provide for a minimum ofthirty (30) days notice to the City in the event of cancellation or material change in the terms thereof. 2. Notices. Notices to the City shall be deemed sufficient if in writing and mailed, postage prepaid, addressed to Airport Manager, Route 2, Box 902, Corpus Christi, Texas 78408, or to such other address as may have been desig= nated in writing by the City from time to time. Notices to Lessee shall be deemed sufficient if in writing and mailed, postage prepaid, addressed to the office of - 5 - ARTICLE VII'. UNDERTAKINGS OF THE CITY The City, by acceptance of this lease, as noted in writing hereinafter, and as consideration herein, covenants and agrees as follows, to -wit: 1. 1. To operate Corpus Christi International Airport as a public air- port during the term of this lease, subject to and consistent with and pursuant to the Sponsors Assurances given by the City to the United States Government under the Federal Airport Act, and subject to the conditions and happenings con- tained in Article IX, paragraph 5, of this agreement. 2. The City agrees to provide adequate light, heating and air conditioning for the comfort and convenience of Lessee's personnel and customers at counters and machine locations within the Terminal Building, with electrical current for the operation of insurance machines. 3. The City agrees to perform normal custodial duties, including dusting and sweeping around insurance machine, moving any trash deposited thereon, and taking a reasonable precaution to prevent such counters or machines and any supplies therein or thereon from being damaged, tampered with, destroyed or re- moved, but shall not be liable for any such damage or removal not caused by its own negligence. ARTICLE VIII. UNDERTAKINGS OF LESSEE The Lessee herein, as additional consideration hereof, hereby covenants and agrees as follows, to -wit: 1. Lessee agrees to pay for any additions to the insurance counter as hereinabove mentioned, and to use reasonable care and diligence in the use of said insurance counter and associated equipment furnished by the City and return the same to the City at the expiration of the term of this lease in good condi- tion, normal use and wear excepted. 2. Lessee agrees to provide at no cost to the City the following services: a. General information. b. Operation of the paging service. 3. Lessee agrees that it will at all times furnish good, prompt and effi- cient service adequate to meet all the demands for such service at the airport and . to furnish such services on a fair, equal and non - discriminatory basis to all users. Lessee shall not use, suffer or permit any person to use, the premises herein leased for any illegal, immoral or bawdy purposes. - 4 - 3. Taxes. The Lessee agrees to pay any and all real and personal property taxes levied from time to time upon the improvements placed upon the demised premises. 4. All of the terms, covenants and agreements herein contained shall he binding upon and shall ensue to the benefit of successors and assigns of the respective parties hereto. S. Destruction. In the event that the Lessee's improvements or the airport is damaged or destroyed by acts of God or through enemy attack or for any other reason outside the control of Lessee and /or the-City to such an extent that the airport cannot be operated as an airport, then this agreement shall terminate and shall no longer be binding on any party hereto.. In the event that the leased premises or the Lessee's improvements or the other airport facilities reasonable and necessary for Lessee to conduct Lessee's business are partially destroyed or damaged due to acts of God or other acts outside the control of Lessee and /or the City to such an extent that the leased premises may not economically be used for the uses <^.nd purposes for which leased, then this agreement and lease shall be suspended during the period of such partial damage or destruction and shall not begin or resume until the damage has been repaired. It is expressly understood, however that the City shall de- termine and shall be the sole judge of the extent of the damage or destruction to the airport and shall have an option to either declare this lease terminated or suspended or to repair the airport facilities or in the rase of damage or destruction to Lessee's improvements to either declare the '_ease terminated, sus- pended or to require Lessee to repair his improvements. 6. Subordination_ This lease and agreement shall be subordinate to the provisions of any existing or future agreement between the City and the United States relative to the operation or maintenance of the airport, the execution of which has been or may be required as a condition to the expenditures of Federal funds for the development of the airport. Should the effect of such agreement with the United States be to take any of the premises under this lease out from under the control of the City or to substantially destroy the commercial value of the leased premises, then the City must provide adequate premises to Lessee - 6 - Gr this agreement shall t02miinate and be no.longer in force. Ir 7. Termination. This lease shall terminate at the end of the period set forth in Article V hereirabove, and Lessee shall have no further right or interest in any of the leased premises or in any of the privileges, rights, uses or other interests contained in this agreement, and Lessee agrees to vacate and remove all improvements and equipment placed thereon by Lessee, unless Lessee and the City re- negotiate said lease and enter into a mutually satisfactory lease extending the term hereof. Lessee shall have thirty (30) days within which to remove Less- ee's equipment and personal property, and in the event Lessee fails to do so, the same shall work as an abandonment and title shall pass to the City or the City may remove said improvements and Lessee agrees to reimburse the City for its expense. B. Cancellation. Default of payment of any of the rentals provided for hereinabove shall give the City the right to terminate this agreement at any time after thirty (30) days notice in writing has been given to Lessee, unless' within said time Lessee has fully complied with or corrected the condition, pro- vided, however, that the City agree to include in this notice a statement with respect to the article, agreement or condition which the City claims that Lessee is in default of. The Lessee shall have the right, upon thirty (30) days written notice to the City, to terminate this agreement in the event of a breach of any of the obligations and agreements of the City contained herein, and upon the failure of the City to remedy the same for a period'of sixty (60) days after receipt of such written notice from the Lessee. The written notice provided by Lessee shall include a statement with respect to the article, agreement or condition which Lessee claims that the City is in default of. ARTICLE X. TRANSFER OF LEASE The written authority of the City shall be obtained by Lessee prior to any sale, assignment, transfer or sub - assignment of this agreement and lease. EXECUTED IN TRIPLICATE on this _ day of LESSEE: ATTEST: ATTEST: City Secretary CITY OF CORPUS CHRISTI BY •CITY MANAGER APPROVED: �IOi. Lf Y". ... __� - -= -- --t- r -- r- ! 1 -- --- I- - - I . i 1 - -- i 1 1 ttFXh�l� i 1h1 un�nC,�'J I s � I - PLENUM 128 1-f, - �Y'42r';4 CGS PA1,E tIANICAL 153, i r-dNCESSIO N 1 1 4LL 157 • ! ULT 135 �-4. TE1 E H i i I •'{'' TOIL 12B? . ,f , ' i � ASAP. JOIN7 •M 1 11 . THAT THE FOREGOING ORDINANCE WAS READ FOR T E F ST TIME AND PASSED TO ITS SECOND READING ON THIS THE DAY OF , 19�j BY THE FOLLOWING VOTE: JASON LUBY a, DR. BILL TIPTON EDUARDO DE ASES RUTH GILL � BOB GULLEY (--K GABE LOZANO, SR. EDWARD L. SAMPLE THAT THE FOREGOING ORDINANCE REA TO ITS THIRD READING ON THIS THE .' ((tiDAY C FOLLOWING VOTE: JASON LueY DR. BILL TIPTON IME AND/PASSED 191.4 BY THE EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THAT THE FOREGOING ORDINANCE S READ FOR HE THUD TIME AND PASSED FINALLY ON THIS THE OF , 1%2 BY THE FOLLOWING VOTE: !` JASON LU BY DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE PASSED AND APPROVED, THIS THE 13 L11- ATTEST: CITY �e A VED: DAY OF, 197i : kk� - a1 CITY ATTORNEY MA THE CITY OF CORPUS CHRISTI, TEXAS a.:yf PUBLISHER'S AFFIDAVIT STATE OF TEXAS, County of Nueces. jss: Before me, the undersigned, a Notary Public, this day personally came ... ........ ....................... i3axexla ..- Q...._VQlasquez....................... who being first duly sworn, according to law, says that he is the ACCOUTlti of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of -Le a1s....NQT.IDE- ..0E- ..k'ASSAGFr..OF ORDINANCE.. NO. .!?147.AM0RIZING AND DIRECTING .. .., .. ............. . .._ -- _ of which the annexed is a true copy, was published in .....- ...Qnrp11s...C.b.r a.t.l •..T;U1Q.s....._- xoxnvtahe�- --153 -.. day of ........... AuEns_t ... .... .. .... 19- Y..,& sitdii...----....-----...----••-- tiffs' er�P43C3f -........................... f - isff9W 1ff1& ......................................................... 3 ............ ........ .........Times. $. -210.5D ............ Subscribed and sworn to before me this.....••, Eugenia S. Cortez NO ug `y N n .. U FP ,ASSA.. TICE NO.IDP�' OF AUTHDRILIN6' AND %OIRECTIN THE CITY MANAGER TO EXECUTE A '.EASE BETWEEN THE CITY AND THE PEOELITY6 CASUALTY COMPANY OF NEW Y&It1,t ANCE E CpTNGOES I kON b IDHTS AT CORPUS CHRISTI SETHFORTHC N THE "ASE A ATTACHED NER;TOFA -R. D EXHIBIT "A," IS MADE A I, T HEREOF. WAS PASSED AND APPROVED by the CRY c*w 11"tM City M ce- CMlatl zz the Regular Cat ' 1 MeellAp MIO Auggst 13, 1975v at 2:m 1 F.M. elld "Vides that it shall take L,4,h M or assax am UNDER MY HAND AND M Clr W gs Urlsti, WMAua4 wn (H Bill O Z CNwi LMI 0. Texai '1 , c