HomeMy WebLinkAbout17225 ORD - 09/01/1982- AN ORDINANCE
AUTHORIZING AN AGREEMENT WITH ACKERLEY AIRPORT
ADVERTISING, INC., FOR THE ADVERTISING CONCESSION AT
CORPUS CHRISTI INTERNATIONAL AIRPORT.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
0 TEXAS:
SECTION 1. That the City Manager be and he is hereby authorized to
execute an agreement with Ackerley Airport Advertising, Inc., for the
advertising concession at Corpus Christi International Airport for a
five-year term beginning November 1, 1982, which guarantees the City a total
of $163,870 or 50 percent of the gross profits for the five year period, all
as more fully set forth in the agreement, a substantial copy of which is
attached hereto and made a part hereof marked Exhibit "A".
17225
,SEP Z 8 1984
IMMILM ED
AGREEMENT
THE STATE OF TEXAS
COUNTY OF NUECES
WHEREAS, The City of Corpus Christi, A municipal Corporation and
body politic under the laws of the State of Texas, Hereinafter called "City",
opened bids on the Advertising Concession for the Corpus Christi International
Airport on , and
WHEREAS, Ackerley Airport Advertising, Inc., Hereinafter called
"Contractor", submitted the best and most advantageous bid and said bid was
accepted by the City Council on
NOW, THEREFORE, for and in consideration of the payments, under-
takings and covenants recited herein, do the City and Contractor hereby
covenant, agree and contract as follows:
WITNESSETH:
SECTION,1. GENERAL
That for and in consideration of the payments and agreements
hereinafter mentioned to be made by Contractor, City does hereby grant an
exclusive right and privilege to develop advertising displays in such advertising
space in the Corpus Christi International Airport as may be designated by the
Director of Aviation to be so used and to solicit and make contracts in its own
name for advertising and exhibit material to be displayed therein. The
approximate number, types and sizes of advertising and exhibit spaces, pro-
vided in the Airport is set forth on Exhibit "A" attached hereto. Additional
locations may be authorized from time to time by the City as being available
to Contractor at the sole discretion of the Director of Aviation.
SECTION 2. TERM OF AGREEMENT
The term of this agreement shall be for a period of five (5) years
commencing on November 1, 1982, Contractor if not in default, shall have
the option to renew this lease for one additdonal five year term upon notice
to the City of its intention to renew given in writing not less than sixty
(60) days prior to the end of the preceding term, provided however, that the
fees and charges for such five year term shall be subject to readjustment.
SECTION 3. PERCENTAGE FEES AND PAYMENTS
In consideration of the foregoing, Contractor agrees to pay to
the City fifty per cent (50%) of the gross total receipts arising from this
agreement with a guarantee as follows: First year - $26,000, Second year
"
$28,600, Third year - $31,460, Fourth year - $36,200, Fifth year - $41,610,
payable at the end of each year.
The term "Gross Receipts" as used herein shall be defined as the
amount received by Contractor from Advertisers or their agencies for the use
of advertising space under this agreement, as set forth in SECTION 8, but
shall not include any amount paid by advertisers in connection with design,
fabrication or installation of the Advertisers' displays or any amount paid
by the Advertisers to Contractor for telephone service. It is further under-
stood that such gross receipts shall not include standard commissions paid to
Adve'rtisersrecognized advertising agencies, quantity purchase discounts
actually allowed, or any taxes imposed by law which are separately stated to
and paid by a customer and directly payable by Contractor.
Percentage payments shall be made by Contractor to the City on or
before the fifteenth day of the month succeeding that in which the gross
receipts were received, together with the respective gross receipts report
upon which percentage payments are based and computed.
Contractor shall pay and submit all reports and payments required
by this agreement to the address shown below, until changed by written
notification:
Director of Aviation
Corpus Christi International Airport
Route 2 Box 902
Corpus Christi, Texas 78408
SECTION 4. NON-DISCRIMINATION
Contractor, in exercising any of the rights or privileges herein
granted to it, shall not on the grounds of race, color or national origin
discriminate or permit discrimination against any person or group of persons
in any manner prohibited by Part 15 of the Federal Aviation Regulations. 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 non-
discrimination covenant.
SECTION 5. RECORDS
Contractor shall keep true and accurate records of all transactions
pertaining to this agreement. Such records shall be open to audit by City
or its authorized representative during any normal business hours at the offices
of Contractor.
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SECTION 6. STORAGE SPACE
The City shall provide limited space free of charae to Contractor for
handling and storage as available, at a location to be designated by the
Director of Aviation.
SECTION 7. LAWS, ORDINANCES AND REGULATIONS
Contractor shall comply with all laws, ordinances, regulations
and rules of the City and the Federal, State, County and City Governments
which may be applicable to its operation under this Agreement.
SECTION 8. SCHEDULE OF RATES
Contractor shall submit to the Director of Aviation a schedule of monthly
rates to be applied to the advertising and exhibit locations which will be
subject to revision by Contractor only with the concurrence of the Director
of Aviation with the understanding that they shall be subject to quantity purchase
discounts and to the standard 15% deduction whenever such locations may be
purchased by an advertiser's recognized advertising agency, and the standard
15% deduction or commission is actually allowed and to the other exclusions
from gross receipts indicated in SECTION 3 of this Aareement.
SECTION 9. APPROVAL OF ADVERTISING MATERIAL
All advertising material and exhibit material, advertisements, and
manner of presentation shall be sgbiect to approval by the Director of Aviation and
may lisapprove any such items at his own discretion. Contractor will immediately
remove from the Airport premises at its sole cost and expense, upon written
demand of the Director of Aviation any display showcase, sign, poster or other
advertising material which may be considered objectionable by the City. In
the event that such matter is not removed immediately upon receipt of written
demand, the City's authorized representative may remove said material or display
and Contractor will pay any warehouse or storage rental incurred by such action.
The Director of Aviation, The City or his authorized representative shall
not in any way be held responsible or liable for any damage to the equipment
or material so removed. ,
In addition to and in connection with the requirement of the Aviation
Directors approval of advertising material, it is expressly agreed that there
will be not political and/or alcoholic beverage advertisina displayed. By
political advertising is meant any and all campaigns or issues wherein controversy
or differing opinions within the community exist including, but not limited to,
local campaigns, state campaigns, national campaians, referendums, and/or bond
issues. By alcoholic beverages is meant any and all beverages containing
-3-
alcohol in any quantity including, but not limited to, liquor, whiskey,
distilled spirits, vinous spirits, brewed spirits, beer, wine and/or champanne.
SECTION 10. FACILITIES AND SERVICES TO BE PROvIDED BY CITY
The City shall:
A. Furnish the wall spaces and/or other areas in the condition
required to accept display cases and exhibits in the number, approximate sizes
and types as shown on Exhibit "A" attached hereto, and any approved additional
locations, except that any alterations or installations shall be made at the
expense of Contractor.
B. Supply electrical outlets at each designated advertising or
exhibit space called for in Exhibit "B" and any approved additional locations
(except for flat panel poster locations).
C. Provide electrical current in reasonable amounts for the
lighting of advertising material and for the operation of the displays.
D. Transmit to Contractor inquiries pertaining to its advertisinn
displays including display space rental in the Airport within a reasonable
period after receipt.
E. Without incurring any liability for property damage whatsoever,
provide normal police surveillance and protection of the displays against
vandalism or trespass and will report to Contractor the discovery of any
damage or unsightly appearance requiring immediate correction.
SECTION 11. SERVICES AND EQUIPMENT TO BE FURNISHED BY CONTRACTOR
The Contractor shall:
A. Furnish, mount, and continuously maintain in a clean and first-
class condition during the entire term of this Agreement at its sole cost
and expense, all advertising cases, frames, mountings, and any other materials
necessary for proper advertising displays.
B. Provide an experienced sales force adequate to maintain as
fully as is reasonably possible a 100 percent rental and occupancy of all
available advertising display space covered by this Agreement.
C. Provide adequate production personnel to assure the utmost
in design and construction of exhibits and advertisinn material to be installed
or used in said displays.
D. Erect all display installations and insert all advertising
miter whenever possible at hours of minimum passenger and visitor activity
within Airport, or at such hours as are approved by the Director of Aviation.
E. Provide the necessary personnel to insure the correct operation
and maintenance of display cases and displays or other advertising matter
therein located.
F. Determine a schedule of rates for all advertising displays
and submit same to The Director of Aviation for approval before offerina
to potential prospects or publication thereof; prepare form of contract
with advertisers and their agents and submit same to the Director of Aviation
for approval prior to offering to advertisers.
SECTION 12. DEPRIVAL OF ADVERTISING SPACE
If Contractor is deprived of its advertising space in said Airport
' because the premises are rendered untenantable or unfit for the uses and
purposes contained in this Agreement, without fault on the part of Contractor,
its employees, agents or independent contractors, or if the public is denied
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normal access to the Airport or to any parts of the Airport containing advertising
displays of Contractor, for any reason, the City shall make for such periods
a proportionate abatement of the payments due hereunder.
If within 90 days after the premises have been rendered untenantable
or unfit as above described or the public has been denied normal access to
the Airport, said premises shall not have been repaired or reconstructed, or
placed in operation, Contractor may give the City written notice of its
intention to cancel this Agreement in its entirety as of the date of such
damage or destruction or denial of access, without any liability being incurred
thereby on the part of Contractor or the City.
SECTION 13. INGRESS AND EGRESS
Subject to the reasonable rules of the City, Contractor, its
employees, servants, patrons, invitees, suppliers of materials and furnishers
of services shall have the right of ingress to and egress from the premises.
SECTION 14. ASSIGNMENT AND SUBLETTING
This Agreement shall not be assigned, transferred, pledged or
otherwise encumbered, without the prior approval of the City.
Contractor shall not sublet the use or operation of any part of
the premises, nor shall the premises be utilized for any purpose than performance
under this Agreement, without the prior approval of the Director of Aviation.
SECTION 15. INSURANCE AND LIABILITY
(a) Contractor shall indemnify and save harmless the City, its
agents, or employees for all suits and actions of every name and description
brought against them or which may result, for or on account of any injuries
or damage received or sustained by any person, persons, or property, by or
from acts of the said Contractor, its agents, servants, or employees, performed
on the premises of the Airport.
(b) Contractor shall indemnify and save harmless the City, its
agents, or employees, against any claims or liability arising from or based
upon the violation of any Federal, State, County or City laws, by-laws,
ordinances or regulations, by said Contractor, its anents, servants or employees.
(c) In the event that fire damage or damage by other casualty
is sustained at any time to the Terminal Building(s), the City shall have the
option to: .
(1) Terminate this Agreement, in which event the rent payable
-5-.
by Contractor shall abate, and any prepaid portion thereof be refunded; or
(2) Repair said damage within a reasonable time at the City's
expense, in which event the rent payable by Contractor hereunder shall abate
for only so long a time as and only in the event that said premises are in
untenantable condition or the public is denied access to the premises.
(D) Protection against loss by fire or other casualty to the
contents of the premises leasedtshall not at any time be an obligation of the
City.
(E) Contractor covenants and agrees to provide and keep in force
public liability and property damage insurance, with public liability coverage
of not less than $200,000.00 for each person and 1500,000.00 for each accident
and property damage coverage of not less than 150,000.00, indemnifying the
City against any public liability or property damage claims, naming the City
as an additional insured, and to furnish the City at all times with an appropriate
certificate from the insurance carrier showing the insurance to be in force,
which certificate shall also be to the effect that such insurance shall not
be changed or cancelled without ten days prior written notice thereof to the
Director of Avjation.
SECTION 16. TERMINATION BY CITY
In addition to any other termination rights'contained in this
Agreement, the City shall have the right upon thirty days written notice to
Contractor, except for non-payment of fees, in which case such notice shall
be seven days, or except for bankruptcy, in which case the termination may
be immediate, to terminate this Agreement any time after the occurrence of
any one or more of the following events:
A. Non-payment of fees due to the City and such non-payment
shall continue for a ten-day period following notice in writing of such non-
payment.
B. If any petition shall be filed by or against Contractor to
declare it a bankrupt or to delay, reduce, or modify its debts or obligations,
Contractor's property shall be made for the benefit of creditors, or if a
receiver or trustee is appointed for it or its property, the City may treat
the occurrence of any one or more of the foregoing events as a breach of the
Agreement and thereupon may terminate the Agreement without notice, and immediately
enter and repossess the spaces covered hereunder.
hereunder.
C. Abandonment by Contractor of and discontinuance of operations
D. Non-performance of any covenant of this Agreement, excluding
the covenant of payments herein contained, and failure of Contractor to remedy
such breach within a period of thirty days after receipt of written notice
from the Director of Aviation of the existence of said breach.
E. Contractor becomes permanently deprived of the rights, powers
and privileges necessary to the proper conduct and operations of the facilities
specified in the Agreement.
F. Damage by fire or other casualty to the premises as set forth
in SECTION 15 herein.
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SECTION 17. TERMINATION BY CONTRACTOR
In addition to any other termination rights contained in this
Agreement, this Agreement shall be subject to termination by Contractor in
the event of any one or more of the following events:
A. The permanent abandonment of the Corpus Christi International
Airport as an air terminal.
B. The lawful assumption by the United States Government, or any
authorized agency thereof, of the operation, control or use of the Airport, or
any substantial part or parts thereof in such a manner as to substantially
restrict Contractor from operating therefrom for a period in excess of ninety
days.
C. Issuance by any court of competent jurisdiction of an injunc-
tion in any way preventing or restraining the use of the Airport, and the
remaining in force of such injunction for a period in excess of ninety
days.
D. The default by the City in the performance of any covenant
or agreement herein required to be performed by the City, and the failure of
the City to remedy such default for a period of sixty days after receipt of
written notice by Contractor to remedy the same.
Upon termination of this Agreement for any reason, Contractor
at its sole cost and expense, shall remove from the property and premises of
the City all advertising frames, contrivances, equipment and materials which
Contractor and those claiming by, through, or under it where permitted to install
or maintain under the rights given by this Agreement, and shall restore said
property and premises to the condition that existed immediately prior to the
commencement of this Agreement, reasonable wear and tear allowed, and if it
shall fail to do so within thirty days, then the City may effect such removal
or restoration at the cost and expense of Contractor and it agrees to pay the
City such cost and expense promptly upon receipt of proper invoice therefor.
SECTION 18. AGREEMENT BINDING
The terms of this Agreement shall be binding upon the executors,
administrators, successors, and assigns of the parties hereto.
SECTION 19. INDEPENDENCE OF AGREEMENT
It is understood and agreed that nothing herein contained is
intended or should be construed as in any wise creating or establishing the
relationship of co-partners between the parties hereto, or as constituting
Contractor as the agency, representative, or employee of the City for any
purpose or in any manner whatsoever.
Contractor is to be, and shall remain, an independent Contractor
with respect to all services performed under this Agreement.
This Agreement constitutes the entire Agreement between the City
and Contractor.
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IN WITNESS WHEREOF, Contractor has executed this Agreement and
the City has caused Agreement to be executed by its
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
By By
City Secretary City Manager
APPROVED:
a DAY OF , 1982:
J. BRUCE AYCOCK? CITY ATTORNEY
1.3y_
ASsistant City Attorney
CONTRACTOR
Ackerley Airport Advertising, Inc.
By
CORPUS CHRISTI INTERNATIONAL AIRPORT
MAIN ENTRANCES
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YCCAOS 1.44.2t0
•
ADO RONAL DIORAMAS
IN 011COURSS
*OM
1,041., 011‘47
DI MINA elyilr
(D Immo muto
••• 6111111V Untii.
That the foregoing ordinance was read for first time and passed to its
second reading on. this the \13 day of 19 , by the
following vote:
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
That the foregoing ordinance was read for. t4e) second ;time and aassed to its
third reading on this the day day of /rir Mr, 19 011NO , by the
following vote:
Luther Jones
Betty N. Turner
Jack E-Eumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles -W. Kennedy
Cliff Zarsky
That the foreg 4.L1 ordinance Az:. red fir
on this the day of WIt d ;Aly 4
-/
Luther Jones
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
PASSED AND APPROVED, this the Ad day
ATTEST:
th
C y Secretary
AP;ROVIEp:
• .147 DAY OF
, 19 g':17
J. BRUCE AYCOCK, CI Y ATTORNEY
By
an
19A2and passed finally
%1, by the following vote:
thlial.time
7
40'
of ft ,,, , 19
MAYOR .
THE CITY OF CORPUS CHRISTI, TEXAS
17225
• CITY 0- CORPUS CURLSTI
DISCLOSURE OF OWNERSHIP INTERESTS
City of Corpus Christi Ordinance 17112 requires all persons (APPLICANT)
seeking to do business with the City to provide the following information
with their proposal. Every question must be answered. If the question is
not applicable, answer with "NA".
APPLICANT NAckerley Airport Advertising, Inc.
AME
APPLICANT ADDRESS
3601 6th Avenue South - Seattle, WA 98134
APPLICANT is 1. Corporation (X) 2. Partnership ( ) 3. Sole Owner ( )
4. Association ( ) 5. Other ( )
Please answer the following questions on a separate attached sheet if
necessary.
SECTION 1 - CORPORATION
la. Names and addresses of all Officers and Directois of Corporation.
See attached sheet
lb. Names and addresses of all shareholders of the Corporation owning shares
equal to or in excess of 3% of the proportionate ownership interest and
the percentage of each shareholder's irderest. (Note: Corporations which
submit S.E.C. form 10K may substitute that statement for the material
required herein.)
Barry Ackerley is the sole shareholder of the company.
SECTION 2 - PARTNERSHIP/ASSOCIATION/JOINT VENTURE
2a. The name, address, and percentage of interest of each partner whose
interest therein, whether limited or general, is equal to or in excess
of 3%.
ACKERLEY AIRPORT
ADVERTISING, INC.
OFFICERS AND DIRECTORS
Barry Ackerley, President and Director
1111 Third Avenue
Seattle, WA 98101
Donald E. Carter
Vice President/General Manager
3601 Sixth Avenue South
Seattle, WA 98134
Lewis B. Blakeney
Secretary /Treasurer
1111 Third Avenue
Seattle, WA 98101
Michel C. Thielen
Director
4928 E. Clinton Way
Fresno, CA 93737
Alice M. Goble
Director
1111 Third Avenue
Seattle, WA 98101
3601 6th Ave. So., Seattle, WA. 98134/Phone: (206) 624-8260
2b. Associations: The'name and address of all officers, directors, and
other members with 31 or greater interest.
SECTION 3 - ALL APPLICANTS -.ADDITIONAL DISCLOSURE
3a. Specify which, if any, interest disclosed in Section 1 or 2 are being
held by agent or trustee and give the name and address of principal
AND/OR by a trust and give the trust number, institution, name and
address of trustee or estate administrator, and name, address, and
percentage of interest in total entity.
N/A
3b. If any interest named in Section 1 or 2 is being held by a "holding"
corporation or other "holding" entity not an individual, state the
names and addresses of all parties holding more than a 31 interest in
that "holding" corporation or entity as required in 1(a), 1(b),
2(a), and 2(b).
N/A
3c. If "constructive control" of any interest named in Section 1 or 2 is
held by another party, give name and address of party with constructive
control. ("Constructive control" refers to control established through
voting trusts, proxies, or special terms of venture or partnership
agreements.)
N/A
3d. If any interest named in Section 1, 2, 3a, 3b, or 3c is being held by a
member of the City Council, an employee, or a member of a Board or
Commission appointed by the City Council of the City of Corpus Christi,.
state the name, address, and whether the individual is a membet of the
City Council, an employee, or a Board or Commission member.
N/A
t,.. .
I have not withheld disclosure o. -ny t: known to me. 'Information
provided is accurate and current. -all :esponsible for submitting
a revised form if any of the abov. . —ion changes.
Jtily 23, 1982 110"4" 00,
Date Signature of Person Preparing St tement
Title:
ATTEST:
''/
Vice President/General*Manager
otary Public
PUBLISHER'S AFFIINWIT OITY #V404367
STATE OF TEXAS, tss:
County of Nueces. )
Before me, the undersigned, a Notary Public, this day personally carne
fi,„ LORRAINE C. MARTINEZ who being first duly sworn, according to law, says that 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 ORDINANCE NO. 17225,...
THE CORPUS CHRISTI CALLER -TIMES
of which the annexed is a true copy, was published in
6th SEPTEMBER 82 da
on y day of 19_, and once each.. thereafter for.. °ne
. day B
one Times.
58--.40
s-
LORRAINE 0. MARTINEZ ›;e01/2e2z,;52, 6-/-77
ACCOUNTING CLERK
19
Subscribed and sworn to before me this 1 Oth day of SEPTEMBE13 82
EUGENIA S. CORTEZ_
Notary Publi Nueces County, Texas
STATE OF TEXAS,
County ot,Nueces.
}SS:
• ilv378997 •
PUBLISHER'S AFFIDAVIT CITY OF 0.0;
Before me, the undersigned, a Notary Public, this day personally came ...... .......
LORRAINE C. MARTINEZ , who being first duly sworn, according to law, says that he is the
ACCOUNTING CLERK of the Corpus Christi Caller and The Corpus Christi Tames,
Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of
NOTICE OF PASSAGE OF ORDINANCE,...
THE CORPUS CHRISTI CALLER -TIMES
of which the annexed is a true copy, was published in
an the1.01,_h day af_..ATT_GILS.:T....:" .111_19 82 and awe each_ day thereafter
consecutive.. daY
one Times.
LORRAINE C. MARTIN. L YYZ(IfirigiS
ACCOUNTING CLERK 22nd SEPTEMBER 8,9
Subscribed and sworn to before me this of
EUGENIA S. CORTEZ
No Public, Nueces County, Tkas
NOTICE OF •
PASSAGE O -
ORDINANCE ON
SECQND NEADIW
AUTHORIZINV AN
AGREEMENT MTh AC
ERLY AIRPORT AMER-
INC.FOR T
ADVERTISING CO -
cEssicrre AT CORPUS -
CHRISTI INTER•
NATIONAL AIRPORT
,—
Was passed on stcond
reading -by the City Coun
of the City of Corpus Chri
Texas on the 258h day of A
gust, 1982 previously op.,
proved on first reading gp
.August 18, 1982. The full text
of said ordinance's availatale
to Inc public in trii.a.„Of lice 01the City Secretor .
-s. ilLG, Reag
r Coriolis Chrtel
-sing Citi Secre
•
STATE OF TEXAS,
County of Nueces.
}Bs:
PUBLISHER'S AFFIDAVIT
#V379049
DITY OF C.C.
Before me, the undersigned, a Notary Public, this day personally came._
LORRAINE C MARTINEZ who being first duly sworn, according to law, says that 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
NO.T_ISFL._QF
of which the annexed is a true copy, was published in THE CORPUS CHRISTI CALLER -TIMES
on the - 23rchay of. AUGUST . 1982_, and once each doz._ _thereafter for ...hDe
consecutive d- ..... ................
Times.
. •
LORRAINE C. MARTINEZ .1124,aezub Yi?
ACCOUNTING CLERK
Subriihed and sworn to before me d
EUGENIA S. CORTEZ
,4
19 R2
Nary blic, Nueces -County,
•
,.'NOTICE OF
PASSAGE
OF-
ORI9ANCE ON
ON FLF,ST READING'
AUTH9;12 !ZING AN
AGREEMENT WITH AC
ERLEY kIRPORT ADV
TISINGLESC., FOR THE A
VERTISING CONCESSI
AT CORPUS CHRISTI I
TERNATIONAL AIRPO%il
Wel passed on first rea ,
Ing by the City Council of e•
City of Corpus Christi, Tex
on the 18th day of August,
1982. The full text of said or
dlnance Is available to
public In the OffIce of 1
City Secretary.
-3-Bill G. Re
City Secretary
Corpus Christ
Te
-•••- V
r -.gents or inoepencien: con
tractors, or it the public
denied normal access to me
Airport or to any parts 09 909
Airport containing advertis-
ing Aisplays of Contractor,
for any reason, the city shall
make for such periods a pro-
portionate abatement of the
payments due hereunder.
If within 90 days after the
premises have been rend-
ered untenantable or 0094 01
above described or Inc pub-
lic has been denied normal
access to the Airport, said
premises shall not have been
repaired or reconstructed, or
placed in operation, Con-
tractor may give the City
written notice of its intention
to cancel this Agreement in
its entirety as of the date df
such damage or destruction
or denial of access, without
any liability being incurred
thereby on the part of Con -
„tractor or the City.
SECTION 13. INGRESS
AND EGRESS -v.'
• Subject to the reasonable
rules 09 990 City, Contractor,
its employees, servants, pa-
trons, invitees, suppliers of
materials and furnishers of
services shall have the right
of ingress to and egress from
the premises.
SECTION 14. ASSIGN-
MENT AND SUBLETTING
This Agreement shall ndt
be assigned, translerred,
pledged or otherwise encum-
bered, without the prior ap-
proval of the City.
Contractor shall not sublet
the use or operation of any
part of the premises, nor
Mali the premises be utilized
tor any purpose than per-
formance under this Agree-
ment, without the prior apt
prove! of the -Director of
Aviatiqn.
SECTION 15 INSURANCE
AND LIABILITY
, (a) Coptractor shall in-
demnify and save harniless
the City, itS agents, or em-
ployees for all suits 004 01
'ions of every name and de-
scription brought against
them or which may result,
for or on account of any in-
juries or damage received or
sustained by any person,
persons, or property, by or
from acts of the said Con-
tractor, its agents, servants,
or employees, performed on
the premises 09 9110 Airport.
(0) Contractor shall in
demnify and save harmleSs
the City, its agents, or erg-
pioyees, against any claims
or liability arising from or
based upon the violation of
any Federal, State, County
or City laws, by-laws, orch-
nanceS or regulations, by
said Contractor, its agents,
servants or employees
(c) in the event that fire
damage or damage by other
casualty Is sustained at any
time to the Terminal Build- •
ing(s), the City shall have
be ciption.tot
••( 1 /"Terminate this I'Agreii:4t•
meht, in which event 999 -409 b
payable by Contractor shalt
abate,,anct any, prepaid.per-
don thereof be refunded;, Or
• 121 Repair said damage
within a reasonable time dt
the City's expense, In which
event the rent payable by
Contractor hereunder shell
abate for only so long a time
as and only in the event 91104
a ..arpts3anesizrt
pteblIcja dentlechiscesell
- • •
"tiedittABBitragstle
ibeizairstaulory
leased shall not at any firth
De an obligation of the CH)'.
(El' Contractor covenaMs
and agrees to provide and
Keep in force pubiic Ilability
and property damage insdr-
ance. with public habilitg
coverage of not less than
0290,000.00 for each person
and 5500,000.00 for each accf-
dent and property damage
coverage of not less that1
150,000.00, Indemnifying the
City against any public lib -
Lanny or property damage
claims. naming the City es
. an additional insured, and tb
j furnish the City 09 011 times
j with an appropriate certift-
• cafe from the Insurance car-
, rier showing the insurance to
•
, 00 )0 force, which certificatf.
shall also be to the effect thd
. such insurance shall not be
changed or cancelled with-
out ten days prior written no-
tice thereof,to the Director of
AviatiorC '
SECTION 16 TERMI-
NATION BY CITY
In addition to any other
termination rights content*
in this Agreement, the Cif&
shall have the right upon
thirty dars written notite to
Contractor, except for non.
payment of feel, in whith
case such notice shall be sev-
en days, or except for bank-
ruptcy, in which case the ter-
mination may be immediate,
to terminate this Agreement
any time after the ocCUr-
rence of any one or mord of
the following everrh: ,
A Non-payment of fees
050 90 the -City and 50090911 -
payment shall continue fbra
ten-day period following 110 -
tire in written of such not,
payment.
B If any petition shalt be
tiled by or against Ccin-
tractor to declare it a bank-
rupt or to delay, reduce, or
modify its debts or obliga-
tions, Contractor's properly
shall be made for the benefit
of creditors, or if a receiver
or trustee is appointed for' it
or its property, the City may
treat the occurrence of any
one or more ol the foregoing
events as a breach of the
Agreement and thereupon
may terminate the /Wee-
ment without notice, and lel-
mediately enter and re-
possess the spaces covered
hereunder:.
C Abandonment by Con-
tractor of and clit•
continuan ol operationS'
hereunder'-
D. Non-performance of
any covenant of this Agree-
ment, excluding the con-
enant of payments herein
contained, Ind failure of
Contractor to remedysuCh
breach within a period df
thirty days after receipt of
written notice from the Di-
rector of Aviation of theexis-
tence of said breach.
E. Contractor becomes
permanently deprived 09 990
rights, powers and privileges
necessary to the proper con-
duct and operations of the fa-
cilities specified in' the
Agreement
P. Damage by fire or other
•
§Aikiitc"'"*-111 Vet
617:5Te_f•--
In addition To an91
termination rights coma loft:
in this Agreement, tnis
Agreement shalt be subiect
to termination Dy Contractor
in the event of any one or
more 09 999 following events.
A The permanent atom
lonment of the Corpus
Christi International Airport
is an air terminal:
B.' The lawful assumption,
y the United States Gowen-
: eonre
•
ai
ment, or any authorikoteo
a0s0thesut
ruse
prrpot orrt,p or rtany substaa
a manner as to substantial'Y
restrict Contractor hem op•
era ting therefrom for a pet,
od in excess of ninety days
C. Issuance by any courtf
cornpetent jurisdiction of an
• fnjunction in any way 04.”
',renting or restraining tile.r
use of the Airport, and the
ftemaining M force of suchin-
junction for a period -in ex -
cep. arrhneindeelya daysy.
In the performInbcethnef City
covenant or agreement her.
in required to be performed
by the City, and the fa ilure of
rhe City to remedy such
default for a period of sixty
days alter receipt of written
notice by Contractor to rem.'
kly the same.
Upon termination of thrs
Agreement for any reason,
Contractor as Its sole cost
and expense, shall remove
from Inc property and prem-
ises of the City all advertis-
ing frames, contrivances,
eguipment and materials
Which Contractor and those
claiming by, through, or uh•
..cler it where permitted to M -
stall or maintain under fhb
rights given by this Agree-
ment, and shalt restore said
Property and premises to the
conditIon that existed imme•
diately prior to the com-
mencement of this Agree-
ment, reasonable wear and
tear allowed, and if 11 shall
rt
tpil to do so within thi y
days, then the City ma ef-
feet such removal or resiora-
lion at the cost and expense
of Contractor 000 11 agrees to
pay the City such cost and
expense promptly upon re-
ceipt of proper invoice there-
for.
ECTION 18. AGREE-
MENT BINDING
The terms of this Agree-
inttilo-Z-11"g uP°^
trisMiumjeggsw,..
..F-ifEsogiaRE-Entsirr
tt ts=tinderstood and
agreed that nothing herein
Contained is intended or
should be construed as in any
wise creating or establishing
the relationship of co-part-
ners between the parties
hereto, or as constituting
Contractor as the agency,
representative, or employee
dt the City for any purpose or
In any manner whalsoeser.
Contractor is to be, and
shall remain, an independent
Contractor with respect to
all services performed under
this Agreement.
This Agreement con-
stitutes the entire Agree-
ment between the City and
Contractor.
IN WITNESS WHEREOF,
Contractor has executed this
Agreement and the City has
caused Agreement 10 90 exe-
cuted by its v. --
CITY OF
CORPUS CHRISTI,
TEXAS
By --
City Manager
ATTEST:
By --
City Secretary
APPROVED:
18 DAY OF --, 1982:
J. BRUCE AYCOCK,
CITY ATTORNEY
By --
Assistant City Attorney
CONTRACTOR
• Ackerley Airport
Advertising, inc.
BY THE -.171-;
enh
I4atildrICG.EZOZA
ORDINANCE 040.
17225
AUTHORIZING AN
AGREEMENT WITH ACK-
ERLEY AIRPORT ADVER•
TISING, INC , FOR THE
ADVERTISING CON.
CESSION AT CORPUS
CI-IRISTI INTER-
NAGIONAL AIRPORT.
EISIT ORDAINED' -BY
THE WY -COUNCIL • OF.-
THE CITY OF CORPUS
`111W-41PtiZtth. City
Manager be and he is hereby
authorized to execute en,
agreement with Ackerley
Airport Advertising, Inc., fo'r
the advertising concession at.'
Corpus Christi International
Airport for a five-year term
beginning November I, 1982,
which guarantees the City a
total of 0163,870 or 50 percent
of the gross profits for the
five'year period, 011 ,0 more
fully set forth in the agree-
ment, a substantial copy of
sr/Bich Is attached hereto and
made a part hereof marked
• Exhibit "A".
AGREEMENT
THE STATE OF TEXAS Il
COUNTY OF NUECES 41
: WHEREAS, The City of
orpus Christi,A municipal
orporation and body politic
alider the laws of the State of
exas, Hereinafter called
"City", opened bids on the
Advertistng Concession for
the Corpus Christi Inter-
national Airport --, and
,WHEREAS, Ackerley Air-
f.11,:rdgIggr''PoIn'tcrc't:A'
submitted the best and most
advantageous bid and said
bid was accepted by the City
Colincil on --:
.,'NOW, THEREFORE, for
tIIin consideration of the
ments, undertaking and
enants recited herein, do
City and Contractor here-
ovenant, agree and ton -
t as folloWs:
• WITNESSETH:
, SECTION I. GENERAL
k that for and In consid-
kat ion of the payments and
reements hereinafter
mentioned to be made by
Contractor, Citydoes hereby
bcant an exclusive right and
rIvilege to develop adver,
sing displays In such adver-
sing space in the Corpus
hristi International Airpor8.
03 0019 be designated by thd
Ditector of AViation to be so
Died and to solicit and make
Ontracts In its own name for
al(Nertising and exhibit ma -
feria' to be splayed there-
in. --The approximate num-
ber, types and sizes of
advertIsing and exhibit
graces, provided in the Air -
pert is ;et forth on Exhibit
IfA" attached hereto. Addl.
Ilona' locations may be au-
thorized from time to tithe
61. the City as being avail-
able to Contractor at the -sole
discretion 00 400 Director of
Aviation.'
" $,ECT1ON 2. TERM bF
AGREEMENT
2"1lhe term of this agree-
rgent Shall be for a period of
five (5) years commencing
iin" November I, 1982, Con-
tractor if not in default, shall
have the option to renew thls
lees° for one additional floe
yea9 term upon notice to the
City of its tntentIon to renew
giyen in writing not less than
OW (60) days prier to the
Old of the preceding term,
Provided however, that the
te andacharges foli-tudh
ti eaGteryTi sha II, begiub,
criorei*OtNettity
-F§E,A691,411118Y11
foregoing, Contractor agrees
toIpay to the City fifty p&
cent (5046) of the gross total
receipts arising from this
agreement with a guarantee
as follows. First year -
:26,00, Second year 528,600,
Third year - 031,460, Fourth
year • 836,200, Fifth year
541,610, payable at the end of
each year:
The term "Gross Re-
ceipts" as Opel herein shall
be defined as die atisbuhrIVI
ceived by Contractor:Worn,
„ Advertisers or their agencies
t for Inc use of advertISIne
space under this agreement'
ai set forth le SECTION 8,
but shall not Include any
amount paid by advertisers
in connection with design,
fabrication or installation of
the Advertisers' disPlaYs or
any amount paid by the Ad-
vertisers to Contractor for
telephone service It is fur-
ther understood that such
gross receipts shall not in-
clude standard comrnissig.ns
paid to Advertiser% riCog.
nized advertising agencies,
quantity purchase discounts
actually allowed, or 0119
taxes imposed by law which
are separately stated to am
paid by a customer anti
'directly payable by Co..
tracton.
Percentage payments
shad be made by Contractor
to the City on or before the
fifteenth day of the month
succeeding that in which the
gross receipts were re•
ceived, together with the re-
spective gross receipts re-
port upon which percentage
payments are based and
computed.
Contractor "shall pay• and
submit all reports and pay-
ments required by 'this
agreement to the address
shown below, until changed
by written notification:
Director of Aviation
Corpus Christi
International Airport
Route 2,Box 902
Corpus Christi, Tea/
78408
SECTION 4. NON-DISCRIM
iNATION-
Contractot In exercising
any of the rights or privi-
leges herein granted to If,
shall not on the groUnds of
race, color or national origin
discriminate or permit dis.
crimtnation against any per-
son or group of persons in
any manner prohibited by
Part 1504 the Federal Avia-
tion Regulations. The City Is
hereby granted the right 'to
00410 50511 action, anything to
the contrary herein notwith-
standing, as the United
States may direct to enforce
this nondiscrimination cov-
enant.
SECTION 5. RECORDS
Contractor shall keep true
and accurate records of all
transactions pertaining to
.41115 agrbement. Stith
'records shall be open to audit
by City or its authoriZed rep-
resentative during 009 nOr-
ma I business hours at thaof-
floes of Contractor.
SECTION 6 STORAGE
SPACE
The City shall p110016e lim-
ited space free of charge to
Contractor for handling and
storage as available, at a lo-
cation to be designated • by
the Director of Aviation
SECT/ON-7,1AINANCES =
.."sfr:Pntrat'rertIrc; all- larors.3,- onressisnatill eXnPiri
`-reguiattens-and.rules-orthe
City and the Federal, State,
County, and City Govern-
ments which may be appll•
FieoboleAot000tetros 000p:Ite.4)0 r
SECTION 8. SCHEDULE
OF RATES
Contractor shall submit fo
the Director of Aviation
schedule of monthly rates to
be applied to the advertising
anti exhibit locations which
will be subject to revision by
Contractor only with the con•
currence of the Director of
Aviation with the under-
standing that they shall be
subiect to quantity purchase
discounts and to the stand-
ard 1546 deduction whenever
such locations may be pstr•
chased by an advertisers
recognized advertising
agency, and the standard
15% deduction or commis-
sion is actually 61109106 046
to the other exclusions from
gross receIpts indicated in
SECTION 3 of this Agree-
ment.
E,XCCTVOE NR T91.5 AJPGP RMOAVTA
RIAL
All advertising material
and exhibit material, adver-
thieMentS, and Mandan:0f
"presentation Shall be sUbleCt
/o approval by the Direct&
of Aviation and may dis-
approve any such items at
his own discretion. Con-
tractor will immediately re-
move from the Airport prem-
ises at its sole cost and
expense, upon written de-
mand of the Director of Avia-
tion any display showcase,
sign, poster or other adver-
tising material which may
be considered obiectionable
by the City. In the event that
such matter Is notremoved
immediately upon receipt 01
written demand, the City's
authorized representative
may remove said materiel
1 or display and Contractor
I will pay any warehouse Or
I storage rental Incurred by
• such action, The Director of
Aviation, The City or his att.
thorized representative shall
not in any way be held re-
Nponstble or liable for any
damage to the equipment or,
matertal so removed,
In addition to arid In con-
nection with the requirement
of the Aviation Director's a h-
proval of advertising materi-
al, It is expressly agreed Niel
there will be not political
and/or alcohoitc beverage
advertising displayed. By
polittcal adverttsing is
meant any and all can't-
paignS or issues wherein cah-
troversy or differing ow -
ions within the communtly
exist including, but not 1:464-
04 10, local campaigns, stare
7°Firgrgfe'rennadtui'mns? rfS,T;
bond issues. By alcoholic
beverages is meant any and
all beverages containing al-
cOhOf 111 any quantity inciud.
lag, but not limited 10, liquor,
whiskey, distilled swift,
vinous spirits, brewed spir-
Os, beer, wtne andior chem.
pagne.
SECTION 10. FACILITIES
AND SERVICES TO BE
PROVIDED BY CLTY
The City shall:
A. Furnish the wall spaces
and/or other areas in the
condition required to accept
display cases enn -1,03
40. .4. easy-6416.sta'
.tsS.V.52a2}A.VC219Mcgall
I lioa46
a°7XtotsTWesalpi tgZ ,
oessy afferadieses-a,Snsfatla•
[Ikea shad bW-made at the ex-
pense of Contractor.
B Supply electricaloutlets
at each designated advertis-
ing or exhibit space called
for in Exhibit "13" and ern"
approved additional loca-
tions (except for flat panel
poster locations),
C. Provide electrical cur-
rent in reasonable amounts
for the lighting of advertis-
ing material and for the op-
eration of the dIsplays.
D. Transmit to Contractor
inquiries pertaining to its ad.
0e11113109 displays including
display space rental in the
Airport within a reasonable
Period after receipt
E. Without incurring any
liability for property dam-
age whatsoever, provide nor-
mal police surveillance and
protection of the displays
against vandalism or ties.
pass and will report to Con-
tractor the discovery of any
damage or unsightly appear-
ance requirtng immediate
correction.
SECTION 11. SERVICES
AND EQUIPMENT TO BE
FURNISHED BY CON, -
TRACTOR
The Cohtractor shell:
A. Furnish, mount, arid
continuously maintain hs a
clean and first class condi-
bon during the entire term of
this Agreement and its sole
cost and expense, all adver-
tising cases, frames, mount-
ings, and any other materi-
als necessary for proper
adverttsing displays. •
B. Provide an experienced
sales force adequate to,
maintain as fully as Is rear
sonably possible a 100 per-
cent rental and occupancy of
all available advertising els-
play space covered by Ms
Agreement. 4
C. Provide adequate pro.
ductton personnel to assure
the utmost In design and cots
struttiOrforixhibits 7i/fcrird1
vertIsIng malarial
' stallad_or _used in said
d.
"
r
m
n
.11 gt iDErect dI a Inst.it100000[orooertfstng nattr whenever Pos.01
si1ethour:munpassengef:90 vtsitorat9i:wfhnA,rprrschhoorsaror:pprov.dbyjhepreto0fAnathnE.privir.thenecearypersnelDisuretherect:.9ert19andm:nstenance f display cases and4glp1xsor9thradtmattertheiein:located."0oterasch.duiefates tor ail advertisingdis-
00
pi:;s:9subnt,tatmlea
,j.h0Fetor0Aviationior.ppoibior0iier,ngtopoen.posp::s°P::icatnt)ereofprparef.rofcn:arithadertlerand Meir::intauom46
s:me5:Direoti0Aaflan foapproval prioreto.ferigtors
Ecml2:liR:AioFpER:isl:lcefcon,roriiiec1:dvertn:pgAirport because the pre.:es.rernddultenantable or unfit foressap,ec,9,i
wi