HomeMy WebLinkAbout13509 ORD - 12/08/1976JKH:hb:ll /1 /76:lst
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE A 5 -YEAR
LEASE WITH HERTZ CORPORATION COVERING THE RENTAL
OF SPACE AT INTERNATIONAL AIRPORT FOR THE OPERA-
' TION OF A RENT -A -CAR CONCESSION, TO BEGIN FEBRUARY
`6~,7 1977, AND PROVIDING FOR MINIMUM RENTALS, ALL
AS'MORE FULLY SET FORTH IN THE LEASE AGREEMENT, A
SUBSTANTIAL COPY OF WHICH IS ATTACHED HERETO AND
MADE A PART HEREOF, MARKED EXHIBIT. "A".
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 author-
ized to execute a 5 -year lease with Hertz Corporation covering the rental
of space at International Airport for the operation of a rent -a -car
concession, to begin February 6, 1977 and providing for minimum rentals,
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all as more fully set forth in the lease agreement; a substantial copy of y„
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which is attached hereto and made a part hereof, marked Exhibit "A ". ,
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M'CROF/LMED
JUN z 1980,
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THE STATE OF TEXAS
COUNTY OF NUECES
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 CITY, and
Hertz Corporation, duly licensed to do business in Texas, with principal
offices located at 660 Madison Avenue, New York, New York 10021, hereinafter
referred to as LESSEE:
W I T N E S S E T H :
WHEREAS, the City owns and operates the Corpus Christi International
Airport located in Nueces County, Texas; and
WHEREAS, Lessee is the owner of a driverless automobile business
and desires to provide automobile rental service at the International Airport,
the parties hereto are desirous of entering into this Lease Agreement:
NOW, THEREFORE, in consideration of the premises, and for and in
consideration of the charges, fees, rentals, covenants and agreements contained
herein, the parties hereto do hereby agree as follows:
ARTICLE I
CONCESSION PREMISES & PRIVILEGES
A. The "concession premises" covered herein shall be the confines
of the Corpus Christi International Airport, 7700 Agnes Street, Corpus
Christi, Texas. This concession shall provide passenger automobile rental
services which are considered essential for proper accommodation of passen-
gers arriving at and departing from subject Airport and shall be in accor-
dance with the terms and conditions stipulated within this bid invitation.
B. The number of passenger car rental concessions at the Airport
shall be four (4) for the full term of this Agreement.
ARTICLE II
TERM OF AGREEMENT
The term of this Agreement shall be for the period of five (5)
years, commencing sixty (60) days after final approval by City Council. Upon
expiration of the original term each Concessionaire shall be allowed to hold
over for such period as is necessary to relet bids. Fees to be paid City
during such hold over period shall be based on the fifth year concession fee
rate as set forth hereinafter.
jF, 0 16;7-, W,
ARTICLE III
TERMINATION OF AGREEMENT BY CITY
The City Manager or his designee may declare this Agreement
terminated in its entirety, in the manner provided in Article V of the
Agreement, upon the happening of any one or more of the following events
and may exercise all rights of entry and reentry, with or without process
of law, upon the premises leased hereby:
A. Nonpayment. If the rentals, fees, charges, or other money
payments which the Concessionaire herein agrees to pay, or any part hereof,
shall be unpaid after the date that same shall become due.
B. Insolvency Proceedings. If, during the term of'this Agreement,
the Concessionaire shall:
1. Apply for, or consent to the appointment of a receiver,
trustee, or liquidator of all or a substantial part of its assets;
2. File a voluntary petition in bankruptcy, or,admit in
writing its inability to pay its debts as they come due;
3. Make a general assignment for the benefit of creditors;
4. File a petition or an answer seeking reorganizations or
arrangement with creditors or to take advantage of an insolvency law;
5. File an answer admitting the material allegations of a
petition filed against any said assignee or sublessee in any bankruptcy,
reorganization or insolvency proceedings; or if during the term of this
Agreement an order, judgment or decree shall be entered by any court of
competent jurisdiction, on the application of a creditor adjudicating
Concessionaire a bankrupt or insolvent, or approving a petition seeking a
reorganization of Concessionaire, and such order, judgment or! decree shall
continue unstayed and in effect for any period of ninety (90) consecutive
days.
6. Default. If the Concessionaire shall have failed in the
performance of any covenant or condition herein required to be performed by
the Concessionaire. On the date set forth in the notice of termination, the
terms of this Agreement and all right, title and interest of the Concessionaire
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shall expire, except as otherwise provided in Article V. Failure by the
City Manager or his designee to take any authorized action upon default by
the Concessionaire shall not constitute waiver of the City's right of termi-
nation.
ARTICLE IV
TERMINATION OF AGREEPENT BY CONCESSIONAIRE
The Concessionaire, at its option, may declare this Agreement termi-
nated in its entirety, in the manner provided in Article v of this Agreement
for the following causes:
A. Restraining Use of Airport. If a court of competent jurisdic-
tion or regulatory agency issues an injunction or restraining order against
the City preventing or restraining the use of the Airport for airport pur-
poses in its entirety or substantial entirety.
B. Abandonment of Airport. If the City shall have abandoned the
Airport for a period of at least thirty (30) days and shall have failed to
operate and maintain the Airport in such manner as to permit landings and
takeoffs of planes by scheduled air carriers.
C. Destruction of the Airport. In the event of destruction of
ail or a material portion of the Airport or the Airport facilities, or in
the event that any agency or instrumentality of the United States Government
or any state or local government shall occupy the Airport or a substantial
part thereof, or in the event of military mobilization or public emergency
wherein there is a curtailment, either by executive decree or legislative
action, of normal civilian traffic at the Airport or of the use of motor
vehicles or airplanes by the general public, or in the event of a limitation
of the supply of automobiles or of automobile fuel, supplies, or parts for
general public use, or in the event of strikes, boycotts, labor disputes,
embargoes, shortage of materials and any of the said events shall result in
material interference with Concessionaire's normal business operations or
substantial diminution of Concessionaire's gross revenue from its automobile
rental concession at the Airport, continuing for a period in excess of sixty
(60) days.
If the Concessionaire's license and Concession Agreement with the
City is not renewed or is terminated by the Concessionaire due to default
by the City.
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D. Default. If the City shall have failed in the performance of
any covenant or condition within the control of the City and herein required
to be performed by the City.
ARTICLE V
PROCEDURE FOR TERMINATION OR REPOSSESSION
No termination declared by either party shall be effective and the
City shall not take possession of the leased premises unless and until not
less than forty -five (45) days have elapsed after notice by either party to
the other specifying the date upon which such termination shall take effect,
and the cause for which this Agreement is being terminated or for which the
leased premises is being repossessed, and no such termination shall be effec-
tive nor shall the City retake possession of the leased premises if such
cause of default as determined by the City cannot be cured within such forty -
five (45) days and corrects the same as promptly as is reasonably practicable.
In the event that suit shall be instituted by the City and the City prevails
upon the default of payment of rent, charges and fees as provided herein,
then the Concessionaire agrees also to pay a reasonable attorney's fee. In
the event the court should render complete judgment in favor of Concessionaire,
then City shall pay only 8% interest on the amount awarded Concessionaire.
ARTICLE VI
RIGHTS CUMULATIVE
It is understood and agreed that the rights and remedies of the
City and the Concessionaire specified in this Article are not intended to be,
and shall not be, exclusive of one another or exclusive of any-common law
right of either of the parties hereto.
ARTICLE VII
TERMINAL SPACE AND READY AND RETURN PARKING AREAS
The City hereby leases to the Concessionaire, and the Concessionaire
takes from the City, space in Corpus Christi International Airport Terminal
Building, as identified by Exhibit "A" attached hereto, (herein called
the "Lease Premises "). The parties covenant and agree that the City, after
giving sixty (60) days' notice in writing, may relocate the Concessionaire's
premises and equipment to a space as comparable as possible at the Corpus
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Christi International Airport. The highest bidder shall have first choice
of location, second highest shall have second choice, third highest shall
have third choice and fourth bidder will have last choice. Terminal car
spaces as shown on Exhibit "B" attached hereto shall initially be signed
by the Airport Manager. The City agrees that a minimum of 32 of the 44
total available spaces shall be divided equally among the 4 Concessionaires
(8 each). The remaining 12 spaces in the main lot shall be divided in
accordance with the percentage of total business generated by each of the
three (3) Concessionaires presently located in the terminal as it is related
to the total business generated at the Airport by all concessionaires during
calendar year 1975 as shown on Exhibit "0 ".
The proportionate share of all ready rent -a -car spaces shall be
adjusted every twelve (12) months during the term hereof, if requested by at
least one (1) of the passenger automobile rental Concessionaires conducting
business pursuant to concession agreements with Airport, so that the space
shall be allocated in direct proportion to the volume of Concessionaire's
gross payment to the Airport during the preceding twelve (12) month period
of the term as compared to the aggregate gross payments to the Airport of
all passenger automobile rental concessionaires conducting business pursuant
to concession agreement with Airport. The Airport shall have the right to
relocate the areas assigned to the Concessionaire in accordance with the
reasonable needs of the Airport for changes in use of the premises as may be
made during the term of this Agreement.
Each Successful Bidder will be assigned two parking Spaces in ready
lot under canopy.
Bona fide employees of each Concessionaire will be permitted to park
at the Airport free of charge unless additional employee parking must be
constructed, then employees will be required to pay a monthly rate of $2.50.
ARTICLE VIII
ACCESS
Subject to Article Y.IV of this Agreement, the Concessionaire has
the right of free access, ingress to and egress from the Leased Premises,
for the Concessionaire's employees, agents, guests, patrons and invitees.
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ARTICLE IX
DEFINITION OF GROSS REVENUE
A. "Gross Revenue" as used herein shall be defined as all receipts
cash or credit from all sources applicable to operation of Concessionaire's
rental services originating at the Airport save and except the following
items:
1. Sums recovered from insurance or otherwise for damage to
automobiles or other property.
2. Any tax levied by any competent governmental authority and
separately stated and collected from Concessionaire's customers. No deduc-
tions from "Gross Revenue" shall be allowed from tares levied on concession
activities, equipment, or real or personal property of Concessionaire.
3. Any amounts paid by customers of Concessionaire as additional
charges for waiver by Concessionaire of its rights to recover from customer
for damages to the vehicle rented.
4. Any charges collected from customers for refueling an auto-
mobile rented pursuant to a rental agreement under which the customer is
obligated to return the automobile with the same amount of gasoline furnished
upon rental.
5. Sums recovered for intercity fees or drop charges.
6. Proceeds from sale of automobiles.
7. Any local or national discounts to customers.
ARTICLE X
FEES, RENTS, REPORTS, AND RELATED PROVISIONS
A. Concession Fees. Concessionaire agrees to pay to the City a
minimum annual guaranteed Concession Fee for the rights and privileges herein
granted by the City. Concessionaire covenants to pay the following Minimum
Annual Guaranteed Concession Fee for each of the five years of the term hereof:
(1) $ _ $ 49,200.00 for the First Year.
(2) $ $ 53,400.00 for the Second Year.
(3) $ $ 57,800.00 for the Third Year.
(4) $ $ 63,600.00 for the Fourth Year, and
(5) $ $ 70,000.00 for the Fifth Year.
$ $294,000.00 Aggregate Total for
above 5 Years.
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B. Concessionaire shall pay to the City the minimum annual guaran-
teed concession fee or ten percent (10 %)'of the Concessionaire's annual Gross
Revenues as herein defined, whichever is greater. "Gross Revenue" shall be
defined in accordance with Article IX of this Agreement.
C. Revenue Payments and Activity Reports. The Concessionaire
shall file with the Airport Manager on or before the 20th day of each month
a monthly report of gross receipts, the report being designed and supplied
by the Director of Finance. Concessionaire shall, at the time of filing
his monthly report of gross receipts, pay the City the greater of (1) the
percent of gross revenue or (2) one twelfth (1/12) of the minimum annual
guaranteed concession fee as bid. This statement of gross receipts shall
be certified by a responsible officer of the Concessionaire. Any overpayment
that might occur shall be adjusted on an annual basis and credit given in the
amount of the overpayment in next pay period. Upon expiration of this con-
cession agreement or after any hold over period, cash payment shall be made
on any credits then due. The Director of Finance or his authorized repre-
sentative shall have the authority to audit Concessionaire's records of gross
receipts upon demand by the Director of Finance or his authorized representative.
Concessionaire shall submit monthly report of Gross Revenues and the
number of cars delivered to and returned by the Concessionaire's customers
at the Airport. This report shall show a daily.breakdown by date and day of
the week. City shall use the report to determine traffic flow for planning
and other management purposes. These reports will be held in confidence by
the Airport tanager.
D. within sixty (60) days after the close of each contract year
hereunder, Concessionaire shall furnish to City a sworn statement showing the
total of Gross Revenues at the Airport for the contract year.
E. The Concessionaire shall have the right to conduct part of its
operations on a credit basis; provided, however, the risk of such operation
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shall be borne solely by the Concessionaire; and the Concessionaire shall
report all income, both cash and credit, in its monthly statements of Gross
Revenue. Credit given to Concessionaire's customers for such things as out -
of- pocket purchase for gas, oil, or emergency services, and deposits, regard-
less of where made, shall be included in computing Gross Revenues.
F. Other Payments and Related Provisions.
1. Terminal Space Rental Payments. The Concessionaire agrees
to pay the City, from the commencement date of the term of this Agreement as
provided in Article II of this Agreement, for the term hereof, the sum of
seven and 50/100 dollars($7.50) per square foot, per annum for floor space
in Terminal Building, payable monthly in advance on or before the tenth
(10th) day of the month for which the rent is due.
2. Ready and Return Car Parking Space Rent. The Concessionaire
also agrees to pay the City, monthly in advance on or before the tenth (10th)
i
day of the month for which rent is due, for each parking spade taken by the
Concessionaire under Article VII of this Agreement. The rental rate therefor
shall be four dollars ($4.00) per month for each space allocated. The number
of such spaces rented will vary during the term hereof in accordance with
Article VII of this Agreement.
3. Prompt Payment of Taxes and Fees. Concessionaire covenants
and agrees to pay promptly all lawful general taxes, special assessments,
excises, license fees and permit fees, of whatever nature, applicable to its
operation at the Airport and to take out and keep current all licenses,
municipal, state or federal, required for the conduct of its business at and
upon the Airport, and further covenants and agrees not to permit any of said
taxes, assessments, excises, fees or charges to become delinquent.
4. Unpaid Fees. All unpaid fees due the City shall bear a
service charge of one and one -half percent (1 1/2%) per month if this is not
paid and received by the City by the 30th day of the month in which payment
is due, and the Concessionaire agrees that it shall pay and discharge all
costs and expenses, including reasonable attorney's fees, incurred or expended
by the City in collection of said delinquent amounts due.
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5. Fee and Pent Payment Bond. The Concessionaire agrees to
furnish within thirty (30) days from date of award by City Council a Performance
Bond in the principle amount of one - fourth (1/4) of the fifth year annual
minimum guaranteed concession fee, rounded to the nearest one thousand dollars
($1,000.00). This bond shall guarantee the payment of the concession fee,
rent, and Concessionaire's other obligations to pay as provided herein. The
bond shall be in a form agreeable to the City Attorney and shall be kept in
full force and effect during the term hereof.
6. Retention of Records. Concessionaire agrees that it will
keep available, for a period of two (2) years after each year of the term
hereof, the books and records of accounts of Concessionaire for each year,
showing the gross revenues of Concessionaire from business conducted at the
Airport, the deductions therefrom, and other pertinent information required
by the provisions of the Contract. The books and records of account shall be
accessible during usual business hours to City or its duly authorized agents
or auditors, for the purpose of verifying the information set forth in any
annual statement or certified annual statement or for the purpose of verifying
compliance by Concessionaire with the terms of this Agreement, but for no
other purposes.
7. Notice Place and Manner of Payments. Payments shall be
made at the office of the City's Airport Manager at the Airport, or at such
other place in the City as the City may hereafter notify the Concessionaire,
and shall be made in legal tender of the United States.
8. Independent Certified Public Accountant. Wherever an
independent Certified Public Accountant is required, it is agreed that said
Accountant shall not be in any way a member of the Concessionaire's staff
or firm.
G. Temporary Reduction of Minimum Annual Guaranteed Commission Fees.
In the event that one of the following conditions exists during the contract
term, the minimum annual guaranteed commission fee provided for may be reduced
for the period of time the condition continues to exist:
1. The operation of Concessionaire's car rental business at
the Airport is affected by shortages or other disruptions, including but not
limited to rationing or other methods of allocation, in the supply of
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automobile gasoline or other goods necessary for the operations thereof,
resulting in the diminution of Concessionaire's revenue hereunder in an
amount of 30% for a period of thirty (30) or more consecutive days.
2. If for any reason the number of passengers deplaning from
scheduled airline flights or regular commuter flights at the Airport during
any period of thirty or more consecutive days shall he less than 70% of the
number of such deplaning passengers in the same month during the preceding
calendar year.
3. Before any such reduction shall be authorized Concessionaire
shall submit proof and substantiation of such diminution and the causes thereof
to the Airport Manager so he may properly determine whether such reduction
is necessary and not attributable to conditions within the control of Con-
cessionaire's managers, agents, and employees.
ARTICLE XI
CONCESSIONAIRE'S OPERATIONS, RIGHTS, AND RESPONSIBILITIES
A. The operational rights granted herein shall be used by the
Concessionaire for the purpose of providing all customary usual services
incidental to the rental of passenger automobile at the Airport provided it
does not infringe on other Concessionaires, and for the purpose of arranging
for such services for the public using the Airport, at destinations where
automobile rental service is furnished by the Concessionaire.
B. Subject to the provisions of this Agreement, the City covenants
that Concessionaire, on paying the rentals and otherwise performing its coven-
ants and other obligations hereunder, shall have quiet and peaceable possession
of the leased premises.
C. The Concessionaire covenants and agrees that it will perform the
herein permitted services in a professional manner by adhering to high stan-
dards of operation including but not necessarily limited to the following:
1. The Concessionaire shall be open for and shall conduct
business and furnish services seven (7) days a week for all regularly scheduled
airline flights.
2. The Concessionaire shall select and appoint a manager of the
Concessionaire's operation at the Airport who shall be a qualified and
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experienced manager or supervisor vested with full power and authority, in
respect to the conduct of the operation of the Concession at the Airport. The
manager or supervisor shall be assigned to a duty station or office at the
`Airport where he shall ordinarily be available during regular business hours;
and at all times during his absence a responsible subordinate shall be in
charge and available at the duty station.
D. The Concessionaire in exercising any of the rights or privileges
herein granted to him, shall not on the grounds of race, sex, creed or national
origin discriminate or permit discrimination against any person or group of
persons in any manner prohibited by Part 21 of the Regulations of the Secretary
of Transportation. The City is hereby granted the right to take such action,
anything to the contrary herein notwithstanding, as the United States may
direct to enforce this nondiscrimination covenant.
E. Concessionaire shall furnish high quality and prompt and efficient
services hereunder, adequate to meet all reasonable demands therefor at the,
Airport. The Concessionaire may be allowed to make reasonable and nondiscrim-
inatory and otherwise legal discounts, rebates or other similar type of price
reductions if permitted by other provisions of this Agreement.
F. The Concessionaire shall prepare a schedule of prices and rates.
These schedules shall be filed in the office of the Airport Manager. Printed
copies of the files schedule of prices shall be available at the Airport at
all times for the use of the Concessionaire's customers. Any changes in this
schedule,will be filed with the Airport Manager within thirty (30) days after
effective date.
G. The Concessionaire shall provide and maintain the rental auto-
mobiles made available hereunder at the Concessionaire's sole expense, in
good operative order, free from known mechanical defects, and in a clean, neat
and attractive condition inside and outside. Provided, however, that none of
the foregoing is intended by the City as a warranty but rather as a general
standard to be adhered to.
H. The Concessionaire shall make available at the Airport only new
and late model automobiles in such number as is required by the reasonable
demand for same.
I. A copy of the rental agreement form covering the use of the
Concessionaire's automobiles shall at all times be kept on file in the
office of the Airport Manager.
J. The Concessionaire covenants that it shall take all reasonable
measures in every proper manner to maintain, develop and increase the business
conducted by it hereunder, and the Concessionaire shall not divert or cause
or allow any business to be diverted from the Airport by referral or any other
method.
K. Any action taken by the Concessionaire to induce its patrons to
rent or receive vehicles in such a manner and at such places so as to diminish
the gross revenue of the Concessionaire under this Agreement shall constitute
a material breach hereof and a cause for the termination of this Agreement
by the City.
L. The Concessionaire's personnel performing services hereunder
shall be distinctively uniformed, neat, clean and courteous. The Concession-
aire's oral solicitation of business at the Airport shall be confined to such
locations on the Airport as the Concessionaire and the Airport Manager shall
mutually agree upon as being sufficient to properly serve the needs of the
Concessionaire, and the Concessionaire shall prohibit and restrain its agents,
servants and employees from loud, noisy, boisterous or otherwise objectionable
promotion of the services offered, and upon objection from the Airport Manager
concerning the conduct or appearance of any such persons, shall immediately
take all steps reasonably necessary to remove the cause of the objection.
M. The Concessionaire shall at all times during the term hereof
keep at the Airport true, accurate, complete and auditable records. Reports
to the City shall be in a form satisfactory to.the Airport Manager of all
business conducted at the Airport and the Concessionaire further agrees that
the City shall have the right, through its duly authorized agents or repre-
sentatives, to examine all pertinent books and records at any and all reasonable
times for the purpose of determining the accuracy thereof and of the reports
required to be made by the Concessionaire under the provisions of this Agree-
ment. The making of any willfully false report of revenue by the Concession-
aire shall be grounds for the immediate cancellation and termination of this
Agreement at the option of the City.
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N. Noncompliance with any portion of Article XI of this Agreement
may constitute a material breach thereof and in the event of noncompliance
or continued and substantial noncompliance, the City shall have the right
to terminate this permit without liability therefor or at the election of
the City, State of Texas or Federal Government of the United States, either
or all said governments shall have the right to judicially enforce said
clause, provided, however, that the termination shall not be effected until
such time as Concessionaire has failed to either comply with the provisions
of an adverse ruling or to appeal therefrom.
ARTICLE XII
IMPROVEMENTS TO AND USE OF THE LEASED PREMISES
A. Construction of Concessionaire's Improvements to Leased Premises.
Concessionaire shall plan, design, construct and furnish any improvements to
be made to the Concessionaire's leased premises within the Corpus Christi
International Airport Terminal. The Concessionaire -shall cause any construc-
tion and installations hereunder to be coordinated with the Airport Manager.
All proposed future changes of the improvements shall be approved in the same
manner for the full term of this Agreement.
B. Title to Leased Premises and the Facilities. Title to the
leased premises shall at all times remain with the City. At the termination
of this Agreement, title to the Concessionaire's leasehold improvements shall
vest in the City except overhead signs or counter.
ARTICLE XIII
OCCUPANCY OF LEASED PREMISES
The taking of possession of the leased premises by the Concessionaire
shall constitute acknowledgment by the Concessionaire that the premises are
in good condition and suitable for occupancy by the tenant.
A. The Concessionaire accepts all premises "as is" and agrees to
perform all needed maintenance at its sole cost, except that the City shall
perform all repairs to the structure of the Terminal Building.
B. It is understood and agreed that the Concessionaire is to make
no material removals, additions or alterations to the leased premises without
the prior written approval of the Airport Manager and that the Concessionaire
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shall provide all counters, signs, gates or doors necessary for the use of
the leased premises in Terminal Building for the conduct of its business.
C. All construction and improvements including plans, proposal,
materials, colors of materials and designs shall be submitted to the Airport
Manager, and the Concessionaire shall not commence the construction 'of any
improvements on the leased premises without the prior written approval of
the Airport Manager.
D. The Concessionaire shall maintain in good repair and in neat and
clean condition all improvements, construction or furniture, furnishings or
equipment placed on the leased premises. The Concessionaire shall be respons-
ible for the care of the area designated for its use and shall permit no
damage to existing improvements. No spikes, hooks, nails, or any other devices
shall be driven or screwed into the walls or other surfaces of the leased
premises.
E. The Concessionaire agrees to maintain the leased premises in a
neat and orderly condition, free from all danger of fire and personal injury
and to refrain from activities which may destroy or damage the leased premises.
No flammable material shall be stored, nor will the leased premises be used
for any purpose which will increase the rate of insurance thereon. At the end
of the term, the Concessionaire agrees to deliver the leased premises to the
City in the same condition as when rented, normal wear and tear, acts of God
and other casualties excepted. Janitorial service shall be provided by the
City.
F. No sign or advertisement of the Concessionaire,br others shall
be affixed, kept or distributed on any part of the leased premises except only
if such color, size, substance, style and material and method of attachment
shall be first approved in writing by the Airport Manager. The City reserves
the right to remove, without notice to the Concessionaire, all signs or adver-
tisements not having prior approval in writing. All signs shall be in good
taste and shall be approved by the Airport Manager to include the placement
of such signs.
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No advertisements of rate schedules of the Concessionaire shall be
posted to public view on the leased premises or by agreement with any terminal
advertising concessionaire except that this prohibition shall not prevent
the Concessionaire from displaying for distribution to the public its pocket -
sized, printed brochures of rate schedules.
G. The Concessionaire shall not permit any unlawful practice to be
committed on its premises on the Airport nor to make or permit any use of the
same for any purpose not herein authorized. The Concessionaire shall not use
or permit the use of said premises in any way which will disturb other tenants
or concessionaires at the Airport.
H. The Concessionaire shall not interfere or permit to be done
anything which may interfere with the effectiveness or accessibility of the
utility, heating, ventilating or air conditioning systems or portions thereof
on the leased premises or elsewhere on the Airport, nor do or permit to be
done anything which may interfere with free access and passage in the leased
premises or the public areas adjacent thereto, or in the street or sidewalks
adjoining its premises on the Airport, or hinder police, fire fighting or other
emergency personnel in the discharge of their duties.
I. The Concessionaire shall not do or permit to be done any act
or thing on its leased premises at the Airport which will invalidate any fire
insurance policies required under this Agreement, or carried by the City,
covering the Terminal Building and ready areas which, in the opinion of the
Airport Manager, may constitute a hazardous condition that will increase the
risks normally attendant upon the operations contemplated under this Agree-
ment. The Concessionaire shall promptly observe, comply with, and execute
the provisions of any and all present and future rules and regulations, require-
ments, orders, and directions of the Airport Manager which may pertain or
apply to the operations in or on its leased premises at the Airport.
J. The City shall furnish heating and air conditioning to the
leased premises in such degrees as it is furnished to other tenants in the
same building area, and the City shall not be liable for any failure to supply
the same when such failure is not due to negligence on its part. General
area light will be furnished by the City through the fixtures installed for
the general lighting of the area of the leased premises.
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ARTICLE XIV
USE AND MAINTENANCE OF LEASED PROPERTY
A. Compliance with Laws and Regulations. The Concessionaire shall
comply with all statutes, laws, ordinances, orders, judgments, decrees, regu-
lations, directions and requirements of all federal, state, city local and
other governmental authorities, now or hereafter applicable to the leased
premises or to any adjoining public ways, as to the manner of use or the
condition of the leased premises and Concessionaire's improvements thereon
or of adjoining public ways.
B. Repairs and Maintenance. The cost of maintenance and repair
of the leased premises shall be borne by the Concessionaire, except that the
City shall maintain and repair the structure and the mechanical systems of
the Terminal Building.
C. Right to Enter, Inspect, and Make Repairs. The City and its
authorized officers, employees, agents, contractors, subcontractors and other
representatives shall have the right (at such times as may be reasonable
under the circumstances and with as little interruption of the Concessionaire's
operations as is reasonably practicable) to enter upon and in the leased
premises for the following purposes:
1. Inspection. To inspect such premises to determine whether
the Concessionaire has complied and is complying with the terms and conditions
of this Agreement.
2. Maintenance. To perform maintenance and make repairs in
any case where the Concessionaire is obligated, but has failed to do so, after
the City has given the Concessionaire reasonable notice so to do, in which
event the Concessionaire shall reimburse the City for the reasonable cost
thereof promptly upon demand.
ARTICLE XV
LOSS OF AND LIABILITIES PERTAINING TO LEASED PROPERTY, AND INDEMNIFICATION
A. Liability Insurance. The Concessionaire, at its expense, at
all times during the term hereof, shall cause the City and the Concessionaire
to be insured on an occurrence basis, under policies no more restrictive than
the standard form of comprehensive liability policy, against the claims of
any and all persons for personal or bodily injury (including wrongful death)
in a sum of not less than $500,000 for any one person, and /or occurrence
-16-
occurring on the leased premises on the Airport or incidental to the opera-
tions of the Concessionaire hereunder, and not less than $100,000 each
occurrence for the damage to property of others. Such insurance shall
specifically insure the obligations of the Concessionaire to indemnify the
City. Insofar as the insurance provides protection against liability for
damages to third party for personal or bodily injury, death and property
damage, the City shall be included as a named insured; provided, however,
such liability insurance coverage shall also extend to damage, destruction
and injury, to a City -owned or leased property and City personnel, and caused
by, or resulting from work, acts, operations, or omissions of the Concession-
aire, its officers, agents, and employees. The City shall have no liability
for any premiums charged for such coverage, and the inclusion of the City as
a named insured is not intended to, and shall not, make the City a partner
or joint venturer with the Concessionaire in its operations on the Airport.
B. Future Insurance Requirements. The Concessionaire and the City
understand and agree that the minimum limits of the insurance herein required
may become inadequate, and the Concessionaire agrees that it shall increase
such minimum limits upon receipt of notice in writing from the Airport Manager.
Such notices to change shall, in general, be issued with no more frequency
than every two years of the lease term; however, the Airport Manager may, at
anytime, take note of indemnification awards being granted by the courts and
direct an increase in the minimum limits of the insurance requirements at
anytime during the lease term. In the event Concessionaire feels the new
limits are excessive, Concessionaire may appeal to the City Insurance Advisory
Board.
C. Limitation as to Policies. All policies of insurance required
herein shall name the City as additional insured and be in a form and in a
company or companies approved by the City, and qualified to do insurance
business in the State of Texas. Each such policy shall provide that the policy
may not be materially changed, altered or cancelled by the insurer during its
term without first giving thirty (30) days' notice to the City's Airport
Manager; provided, however, that if the equivalent insurance is sought by
Concessionaire, the Airport Manager, after approval by the Legal Department,
shall accept such insurance.
-17-
D. Evidence of Insurance. Certificates, or other evidence of
insurance coverage required of the Concessionaire in this Article, shall be
delivered to the Airport Manager in form and content satisfactory to the City.
At least thirty (30) days prior to the expiration of any such policy, the
Concessionaire shall submit to the Airport Manager a certificate showing
that such insurance coverage has been renewed. If such coverage is cancelled
or reduced, the Concessionaire shall, within fifteen (15) days after the date
of such written notice from the insurer of such cancellation or reduction
of coverage, file with the Airport Manager a certificate showing that the
required insurance has been reinstated or provided through another insurance
company or companies.
E. Adjustment of Claims. Concessionaire shall provide for the
prompt and efficient handling of all claims for bodily injury, property
damage or theft arising out of the activities of Concessionaire under this
Agreement. Concessionaire agrees that all such claims, whether processed by
f
Concessionaire or its insurer either directly or by means of an agent, will
be handled by a person or representative of the Concessionaire.
F. Conditions of Insurance Default. If, at any time, the Conces-
sionaire shall fail to obtain the insurance as required herein, the City may
effect such insurance by taking out policies with companies satisfactory to
the City. The amount of the premium or premiums paid for such insurance by
the City shall be payable by the Concessionaire to the City with the install-
ment of rent thereafter next due under the terms of this Agreement, with
interest thereon at the rate of eight (8) percent per annum.
G. Indemnification. The Concessionaire agrees to indemnify and
save harmless the City, its City Council, and its officers, agents and
employees, from and against any and all loss of or damage to Property of third
persons, or injuries to, or death of any person or persons, and from any and
all claims, damages, suits, costs, expense, liability, actions or proceedings
of any kind whatsoever, in any way resulting from, or arising out of the acts
and omissions of officers and employees of the Concessionaire arising out of
this Agreement or the use and occupancy of the leased premises and the
Airport.
-18-
ARTICLE XVI
TERMINATION OF LEASE, SURRENDER OF LEASED PREMISES
The Concessionaire covenants and agrees that at the expiration of
the lease term or at the earlier termination of the letting hereof, it will
quit and surrender the leased premises and the improvements in good state and
condition, reasonable wear and tear, acts of God and other casualties excepted,
and the City shall have the right to take possession of the leased premises
and the improvements with or without process of law.
ARTICLE XVII
ASSIGNMENT AND SUBLETTING
The Concessionaire agrees not to sublet the leased premises, or any
part thereof, or the facilities, nor assign this Agreement, or any portion
of the term hereof, without the written consent of the City Manager or his
designee. Such consent shall not be arbitrarily withheld, provided, however,
any successor, sublessee or assign, in interest in this Agreement must meet
all pertinent requirements as outlined herein.
ARTICLE XVIII
LIENS AND CLAIMS, MECHANIC'S AND MATERIALMAN'S
The Concessionaire agrees not to permit any mechanic's or material -
man's or any other lien to be foreclosed upon the leased premises or any part
or parcel thereof, or the improvements thereon, by reason of any work or labor
performed or materials furnished by any mechanic or materialman or for any
other reason.
ARTICLE XIX
OTHER PROVISIONS
A. No Personal Liability. No council member, director, officer,
employee or other agent of either party shall be personally liable under or
in connection with this Agreement while performing in good faith duties therein.
B. Agreements with the United States. This Agreement is subject
and subordinate to the provisions of any agreements heretofore made between
the City and the United States, relative to the operation or maintenance of
the Airport, the execution of which has been required as a condition prece-
dent to the expenditure of Federal funds for the extension, expansion, or
a&Z
development of the Airport, including the expenditure of Federal funds for
the development of the Airport in accordance with the provisions of the
Federal Aviation Act as it has been and may be amended from time to time.
Any agreement hereinafter made between the City and the United States will
not be inconsistent with rights granted to Concessionaire herein.
C. Modifications for Granting FAA Funds. In the event that the
Federal Aviation Administration requires, as a condition precedent to granting
of funds for the improvement of the Airport, modifications or changes to
this document, Concessionaire agrees to consent to such reasonable amendments,
modifications, revisions, supplements or deletions of any of the terms, condi-
tions, or requirements of this Agreement, as may be reasonably required to
enable the City to obtain said Federal Aviation Administration funds, provided
that'in no event shall such changes impair the rights of Concessionaire.
D. Governing Law. This Agreement shall be deemed to have been made
in, and be construed in accordance with the laws of the State of Texas.
E. Notices. Except as herein otherwise expressly provided, all
notices required to be given to the City hereunder shall be in writing and
shall be sent by certified mail, return receipt requested, to the Airport
Manager, Corpus Christi International Airport, Route 2, Box 902, Corpus Christi,
Texas 78410. All notices, demands and requests by the City to Concessionaire
shall be sent by certified mail, return receipt requested, addressed to
Concessionaire to an address as designated by Concessionaire.
Either party may designate in writing from time to time any changes
in addresses or any addresses of substitute or supplementary persons in con-
nection with said notices. The effective date of service of any notice shall
be the date such notice is mailed to Concessionaire or Airport Manager.
F. Amendments. This Agreement may be amended from time to time by
written agreement duly authorized and executed by representatives of all the
parties hereto.
G. Force Majeure. Neither the City nor Concessionaire shall be
deemed in violation of this Agreement if it is prevented from performing any
of the obligations hereunder by reason of strikes, boycotts, labor disputes,
embargoes, shortage of material, acts of God, acts of the public enemy, acts
-20-
of superior governmental authority, weather conditions, riots, rebellion,
sabotage, or any other circumstances for which it is not responsible or which
is not within its control.
H. Invalid Provisions. In the event any covenant, condition
or provision herein contained is held to be invalid by a court of competent
jurisdiction, the invalidity of any such covenant, condition or provision
shall in no way affect any other covenant, condition or provision.
I. Headings. The headings of the Articles of this Agreement are
inserted only as a matter of convenience and for reference and in no way
define, limit or describe the scope or intent of any provisions of this Agree-
ment and shall not be construed to affect in any manner the terms and provi-
sions hereof or the interpretation or construction hereof.
J. Withholding Required Approvals. Whenever the approval of the
City, or the Airport Manager, or of Concessionaire is required, no such
approval shall be unreasonably requested or withheld.
K. Successors and Assigns. All of the terms, provisions, covenants,
stipulations, conditions and considerations of this Agreement shall extend
to and bind the legal representative, successors, sublessees and assigns of
the respective parties hereto.
L. Waivers. No waiver of default by either party of any of the
terms, covenants and conditions hereof to be performed, kept and observed by
the other party shall be construed as, or operate as, a waiver of any subse-
quent default of any of the terms, covenants or conditions herein contained,
to be performed, kept and observed by the other party.
M. Gratuities. The City may cancel this Agreement if it is found
that gratuities in the forms of entertainment, gifts, or otherwise, were
offered or given by the Concessionaire or any agent or representative, to any
City official or employee with a view toward securing the rights and privil-
eges granted herein or toward securing favorable treatment with respect to
the wording, amending, or making of any determinations with respect to the
performing of the Agreement. In the event this Agreement is cancelled by
the City pursuant to this provision, the City shall be entitled, in addition
to any other rights and remedies, to recover from the Concessionaire a sum
equal in amount to the cost incurred by Concessionaire in providing such
gratuities.
-21-
N. Entire Agreement. This Agreement, together with all exhibits
attached hereto, constitutes the entire Agreement between the parties hereto
and all other representatives of statement heretofore made, verbal or written,
are merged herein and this Agreement may be amended only in writing, and
executed by duly authorized representatives of the parties hereto.
EXECUTED IN DUPLICATE this the day of
1976.
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
By
City Secretary R. Marvin Townsend,
City Manager
APPROVED:
DAY OF , 1976:
J. BRUCE AYCOCK, CITY ATTORNEY
By
Assistant City Attorney
ATTEST: HERTZ CORPORATION
By
Secretary
Cm -riF CORPUS CHRISTI
Corpus Christi, Texas
t ,
Rent Car
Concessionaire Areas
Corpus Christi International
Airport
Corpus Christi, Texas
y Exhibit A
June 28,1976
BID#5353/77
IDMIBIT "A"
t
ITY Cr' CORPUS CHRISTI BTD)#5353/77
crptis Christi, Texas EXIiIBiT "B" ! e
�\ l i. l r• I I I L. i,. 11 111. .. j l i 1 1. 1 1 1 1 I l t l I f 4 1 r t l. .. . r I/ L ! 1 1 1. 1 t� r r. r l' 1 1 � t• I 1 t 1 � F
r
/ .1111 1'rl L ill'.'I• i' I11'fi
r/ r I L t t l l. I l r l l r .• I r i 1 1. l i. l 1 1 ! 1 1 1 1 1 4 1. 1 1 1 11 1 l 1 .: • r l �•� r .. r
8 Spaces Under Canaopy
:::::....... ^ i r
F,
%436 \S�aces-
P
�a
......................... .........................
..... ............................... ...... ......:.I ' Nar Rental Counters
t
Existing Rental (34r 'Areas
Corpus Christi International
Airport
Corpus Christi, Texas
Exhibit B
June 28, 1976
0
CITY OF CORPUS CHRISTI BIDm5353/77
Corpus Christi, Texas EXHIBIT "D"
CAR RENTAL REVENUE 1973, 1974 & 1975
Month /Year
Avis
Hertz
National
1/73
21,647.75
22,728.15
21,373.09
2/73
19,297.01
20,959 35
22,763.83
3/73
21,986.68
27,688.93
27,960.79
4/73
17,892.00
27,553.27
24,753.00
5/73
20,286.16
29,254.10
26,250.31
6/73
19,000.63
28,324.79
25,461.00
7/73
18,739.59
30,418.40
27,024.94
8/73
18,688.01
31,113.91
26,874.42
9/73
17,296.90
26,625.80
26,364.31
10/73
17,258.51
25,925.46
25,805.38
11/73
16,049.54
27,802.44
26,019.10
12/73
15,054.58
21,810.60
22,702.00
$223,197.36
$320,205.20
$303,352.17
1/74
20,601.39
25,473.83
28,776.42
2/74
17,093.77
31,204.19
29,061.46
3/74
18,827.31
33,788.95
33,089.74
4/74
20,255.11
40,444.14
31,564.46
5/74
22,330.23
39,697.63
33,879.49
6/74
18,356.09
43,181.01.
31,242.12
7/74
21,488.40
42,357.78
33,243.42
8/74
21,091.24
45,155.44
32,442.86
9/74
17,842.38
37,193.37
35,176.12
10/74
24,686.60
38,317.56
38,135.91
11/74
22,702.56
37,124.99
29,598.90
12/74
21,271.58
35,402.66
25,984.71
$246,546.66
$449,342.15
$382,195.61
1/75
22,446.77
37,841.98
31,295.69
•2/75
21,657.36
37,215.70
30,373.14
3/75
23,625.54
43,257.32
'39,100.66
4/75
26,212.25
43,037.16
37,906.31
5/75
21,714.68
42,110.69
36,525.43
6/75
24,728.48
41,868.53
37,912.63
7/75
22,923.06
40,964.06
33,392.43
8/75
25,565.53
45,039.01
39,807.15
9/75
25,757.13
34,789.53
35,233.50
10/75
33,124.95
40,548.26
32,906.01
11/75
24,385.82
36,103.58
32,547.46
12/75
23,375.62
31,516.02
28,794.82
$295,517.19
$474,291.84
$415.795.23
THAT THE FOREGOING ORDINANC WAS READ THE F RST TIME D PASSED
70 ITS SECOND READING ON THIS THE
FOLLOWING VOTE: DAY pY THE
JASON LUST
DR. BILL TIPTON a..
EDUARDO DE ASE3
RUTH GILL
Boa GULLEY AM
GABE LOZANO, SR.
EDWARD L. SAMPLE
THAT THE FOREGOING ORDINANC WAS READ R THE SE OND TIME AN PA33ED
TO ITS THIRD READING ON THIS TNE_DAY OFD, 199 BY THE
FOLLOWING VOTE:
JASON LUBY
DR. BILL TIPTON
EDUARDO DE ASEB
RUTH GILL
BOB GULLEY
GABE LOZANO, SR.
EDWARD L. SAMPLE
THAT THE FO E IMC ORDINAN S REA FOR THE �Tp IRD TIME AND PASSED
FINALLY ON THIS THEDAY OF , �9L, BY THE FOLLOWING VOTE:
JASON LUBY
DR. BILL TIPTON
EDUARDO DE ASEB
RUTH GILL
BOB GULLEY
GABE LOZANO, SR.
EDWARD L. SAMPLE
PASSED AND APPROVED, THIS THE�DAY OF _g
ATTEST: /
CIT ECRETA MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
AP MOVED:
DAY OF 197p:
CITY ATTORNEY
v
AT
�r
PLD�SE PUBLISH 11/8/76; 11/15/76; 12/8/76:
N O T I C E
The City Council of the City of Corpus Christi has, on the 3rd
day of November, 1976, passed on first reading an Ordinance authorizing
the City Manager to execute a 5 -year lease with Hertz Corporation
covering the rental of space at International Airport for the operation
of a rent -a -car concession, to begin February 6, 1977, and providing
for minimum rentals, all as more fully set forth in the lease agreement,
a copy of which is on file in the office of the City Secretary.
Witness my hand this 4th day of November, 1976.
. 6fIlU City Secretary
City of Corpus Christi, Texas
� .
PUBLISHER'S AFFIDAVIT
-- -STATE OF TEXAS, lss: L
County of Nueces. 1
;a Before me, the undersigned, a Notary Public, this day personally came ... ...............................
G.loria . . . Lopez , who being first duly sworn, according to law, says that he is the
................. ..
- Account ink .......................... .... ..... ...................... 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
LEGALS ... THE CITY COUNCIL OF THE CITY -OF CORPUS CHRISTI HAS CN 'THE 3rd-DAY OF
.............................-......-
AIOVEI'IBER...PASSED OF FIRST REkDY1IU...EXE�Ut'E A 5- E:k L'EhSE...
of which the annexed is a true copy, was published in Caller .-Times
on the._._8 ... day of.- .IiQ.Y.e.D1be.r----------- - - -- 19....74 and once each ..._.Me— .P.kt. ............ thereafter for .... 2. .............. .....
consecutive..... vr€ elGS - --- name1-y-- 114av- ember 15 and December 11 .
........... 3................. Times.
lkc--- 3.6-3LO --------- ------- orid --- I;6-p-6
z -kcc oiirit3n
Subscribed and sworn to before me this... 14 .............day of.. cember ............. 19---- ----- - -, I!'
Eugenia S. Cortez
.............. ...... . ........•--- ------- _....- ..........- ... -.....
f -' Notary P lic, Nueces County, Texas }
j'
The city COJWN of the CRY
CorPnx ChrRti trs, on the 1
PM
an Grdyn±+cit *&&IaWJ
City Menage- io execute a
year lease with HMCo-r]
radon
covering the rental space
hrternational Airport for the
eratlon of a rent-a -Cer c
CI to to begin February
,1177, and providing for rt
Imum rentals „all as more ft
'set forth In the lease agreemt
a copy of which is on file in
'office of the City Secretary.
witness my hand this
day of November, 1476.
s-Bill G. R
r