HomeMy WebLinkAbout16218 ORD - 05/06/1981jkh:4-15-81;lst
AN ORDINANCE
AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREE-
MENT BETWEEN THE CITY OF CORPUS CHRISTI AND 'FIDELITY ,AND
CASUALTY COMPANY OF NEW YORK COVERING THE LEASE OF SPACE
AT THE CORPUS CHRISTI INTERNATIONAL AIRPORT FOR THE SALE
OF ANNUAL AND SHORT-TERM TRAVEL AND COLLATERAL INSURANCE
POLICIES FOR A TERM OF THREE YEARS, BEGINNING JANUARY 1,
1981, 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, 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 and
Casualty Company of New York covering the lease of space at the Corpus Christi
International Airport for the sale of annual and short-term travel and
collateral insurance policies for a period of three years, beginning January 1,
1981, 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".
1€ 218
MICROFILMED
SSP 27 19
THE STATE dF 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 the City, and THE FIDELITY AND CASUALTY COMPANY OF NEW YORK
hereinafter referred to as Lessee.
W I T N E S S E T H:
WHEREAS, the City owns and operated Corpus Christi International
Airport, located in Nueces County, Texas,and
WHEREAS, Lessee proposes to engage in the sale of insurance, as
hereinafter defined, at Corpus Christi International Airport, and 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, parties hereto do hereby agree as follows:
ARTICLE I.
DESCRIPTION OF LEASE
City does hereby grant to Lessee the privilege of operating a
tie-in insurance counter in conjunction with the limousine operator
or -with a car rental company. It being understood that the employees
of the limousine operator or.car rental operator will sell the _insurance.
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 Aviation Accident Insurance, Short Term Travel Insurance, Common
Carrier Travel Insurance and Personal Effects Insurance through the
installation, operations, 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
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by the City during the term of this agreement or by such other means as
may be agreed to by the parties hereto.
ARTICLE III.
PRIVILEGES, RIGHTS, USES, AND INTERESTS
1. General Privileges, Rights, Uses, and Intersts. 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 right 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 rights of the Lessee herein, the Lessee shall enjoy the following:
a. The right to engage in the handling of hotel and motel reser-
vations, theater ticket reservations, and sight seeing tours on a com-
mercial 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 Interested 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.
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 conditions, and Lessee further agrees to pay the total cost of
.additional improvements except as otherwise specifically provided herein.
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ARTICLE V.
TERM
The term of this lease and agreement shall be three (3) years,.com-
mencing on 1-1-81 and terminating on 12-31-83.
ARTICLE VI.
RENT
Lessee agrees to pay the City as rental for the use and occupancy
of the leased premises and for the privileges, Tights, uses and interests
as—above set forth rental according to the following schedules:
1. TWENTY-FIVE PERCENT (25%) of gross receipts from the sale of
insurance, less only bona fide refunds.
2. Payments referred to in Paragraph 1 above shall be computed
monthly and a check to cover, together with an -explanatory statement,
shall be forwarded 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 of all reasonable. time's-- = -
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, a-s:above-men-
tioned, provided such inspections are performed at reasonable -times
during working hours.
ARTICLE VII.
UNDERTAKINGS OF THE CITY
The City, by acceptance of this lease, as -noted in writing here-
inafter, and as consideration herein, covenants and agrees as follows,
to -wit:
1. To operate Corpus Christi International Airport as a public
airport 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 contained in Article IX, paragrapy 5, of this
:agreement.
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. 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 removed, 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 cov-
enants 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 condition, normal use and wear excepted.
2. Lessee agrees that it will at all times furnish good, -prompt
and efficient 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.
3. Lessee agreesto staff and operate the insurance counter during
normal periods of operation of commercial airlines, more particularly
before and during departing flights.
4. Lessee agrees to operate the insurance counter through a tie-in
operation with a limousine operator or a car rental operator.
ARTICLE IX.
GENERAL PROVISIONS
1. Indemnification. The City shall stand indemnified by the Lessee
as herein provided. It is expressly understood and agreed by and between tht
parties hereto that the Lessee herein is and shall be deemed to be an
independent contractor and operator responsible to all parties for its
espective acts or'ommission and for those of its agents, servants,
.pployees, invitees, tenants and sub-leessees, and the City shall in no way
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be responsible therefor. It is further agreed that in the use of the
airport and in the maintenance, erection or construction 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.
All said policies shall provide for a minimum of thirty (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 78410, or to such other address as may have
been designated 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 RAYMOND BAHNSEN,THE FIDELITY AND CASUALTY COMPANY
OF NEW YORK, 100 WOOD AVENUE SOUTH, ISELIN, NEW JERSEY 08830 .
3. Taxes. The Lessee agrees to pay and 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:cnatained
shall be binding upon and shall ensue to the benefit of successors and
assigns of the respective parties hereto.
5. 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 outisde the control of Lessee and/or the City to suc
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 usedfor_the
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uses and 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 determine 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 require Lessee to repair his improvements.
6. Subordination. This lease and agreement shall be subordinate
td -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 or this -agreement shall
terminate and be no longer in force.
7. Termination. This lease shall terminateat the end of the period
set forth in Article V hereinabove, 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 Lessee'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.
The parties agree that in case the Lessee is unable to obtain the
services of a local operator to market the insurance, the Lessee will be.
permitted -to cancel this lease or if mutually agreed will operate insurance
machines only. -
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8. Cahcelration. 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 cor-
rected the condition, provided, 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
ta-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 OT this agreement
and lease.
EXECUTED IN_TRIPLICATE ON -THIS 1st day of January, 1981
ATTEST:
ATTEST:
LESSEE:
THE FIDELITY & CASUALTY CO. OF N -Y:
BY:
RAYMOND BAHNSEN, ASSISTANT
. VICE PRESIDENT
BY:
CITY SECRETARY - CITY MANAGER
APPROVED:
ACTING CITY ATTORNEY
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That the foregoing ordinance was read for pip first time an passed to its
second reading on this the /3- day of (/ 1 p, , 192(/ '
, by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K. Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance was read for second time aryl passed to its
third reading on this the c2 day of , , 19 r/ , by the
following vote:
Luther Jones
Edward L. Sample
Dr. Jack Best
Jack K..Dumphy
Leopoldo Luna
Betty N. Turner
Cliff Zarsky
That the foregoing ordinance was read for the third time and passed finally
on this the (Q day of %{Y\ 0 1 ,_ , 19 1jk , by the following vote:
Luther Jones
Edward L. Sample (1412'
b
�0 p�
Dr. Jack Best '
Jack K.'Dumphy
Leopoldo Luna'
Betty N. Turner
Cliff Zarsky
PASSED AND APPROVED, this the & day of v , 19 if
ATTEST:
ecretary
APPROVE
/( DAY OF
, 19a :
J. BRUCE AYCOCK,CITY ATTORNEY
MAYOR' (/
THE CITY OF CORPUS CHRISTI, TEXAS
18218
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--1 PUBLISHER'S AFFIDAVIT : V. 226' : Mq 't �
city -o %,�,.c.� 19 o
STATE OF TEXAS, las: m �' o,- ) w ?
County of Nueces. J 4FOR 4/4. va
Before me, the undersigned, a Notary Public, this day personally : tele020;\\?
BILLIE J. HENDERSON , who being first duly sworn, according to law, says at he is the
ACCOUNTING CLERK
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
NOTICE OF PASSAGE OF........
of which the annexed is a true copy, was published in THE
CORPUS CHRISTI CALLHR..TIMES
on the20th__ day of APRIL 11....., and once each day thereafter for. AMP.
consecutive day
one
Times.
36.90
Subscribed and sworn to before me this
BILLIE J. HENDERSON A/97-)
ACCOUNTING-'CLEYZK -�-
27th day of APRIL 19... 81.._
o � -
Public, Nueces County, Texas