HomeMy WebLinkAbout17621 ORD - 06/01/1983AN ORDINANCE
AUTHORIZING A CONTRACT WITH SANBORN'S INTERNATIONAL
TRAVEL SERVICE TO PROVIDE FULL TRAVEL SERVICE AT CORPUS
CHRISTI INTERNATIONAL AIRPORT FOR A PERIOD OF THREE
YEARS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
SECTION 1. That the City Manager is hereby authorized to execute a
contract with Sanborn's International Travel Service to provide full travel
service at the Corpus Christi International Airport for a period of three
years, all as more fully set forth in the contract, a substantial copy of
which is attached hereto and made a part hereof marked Exhibit "A".
17621
SEP -4 6 1984
AUtioltu
AIRPORT TRAVEL AGENCY
CONCESSION AGREEMENT
THIS CONCESSION AGREEMENT entered into by and between the CITY OF
CORPUS CHRISTI, TEXAS, a municipal corporation (hereinafter referred to as
"City"), and VILLAGE TRAVEL, INC., dba Sanborn's International Travel
Service, a Texas Corporation (hereinafter referred to as "Concessionaire"):
W ITNESSET H:
WHEREAS, the City owns and operates the Corpus Christi International
Airport located in Corpus Christi, Nueces County, Texas (hereinafter
referred to as "Airport");
WHEREAS, Concessionaire is a licensed travel agency qualified to do
business in the State of Texas and desires to enter into a Concession
Agreement with the City for the purpose of operating a travel service at
said Airport, with the understanding that the scope of business operations
permitted by this Agreement is limited to offering the general public such
scheduling and reservation services as are commonly associated with travel
service businesses, and nothing in this Agreement may be construed as
conferring any rights already granted to other Airport concessionaires and
tenants; and
WHEREAS, the City represents that it has the right to grant the
concession by this Agreement, together with all the facilities, rights,
licenses, services and privileges in the manner and to the extent
hereinafter set forth;
NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants hereinafter contained, the parties agree for themselves, their
successors, legal representatives and assignees, as follows:
1. CONCESSION SPACE. The City hereby provides to Concessionaire,
for the period and subject to the terms and conditions hereinafter stated,
a Concession Space containing approximately 180 square feet and located in
the main lobby of the terminal building of said Airport, the same space
which is depicted and shown on the floor plan which is attached to this
Agreement and made a part hereof as Exhibit "A".
2. CONCESSION TERM. This agreement and all rights herein granted to
Concessionaire shall become effective July 1, 1983, and shall extend for a
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g,b,"/94
period of three (3) years until June 30, 1986, subject, however, to earlier
termination as herein provided.
3. FEES TO CITY. Concessionaire agrees to pay to the City during
each year of the term of this Agreement the minimum annual concession fees
as stated below, payable in advance in equal monthly installments, or the
percentage of the Gross Revenues (as hereinafter defined) from the
operations of the Concessionaire under this Agreement as stated below,
whichever is the greater amount.
MINIMUM CONCESSION FEE
ANNUAL MONTHLY PERCENTAGE AMOUNT
FIRST YEAR $6,600 $550 10.0%
_ SECOND YEAR 7,200 600 9.0%
THIRD YEAR 8,400 700 8.0%
Prior to commencing operations under this Agreement, Concessionaire
will deposit the sum of THREE THOUSAND DOLLARS ($3,000.00) with the City,
acceptable in the form of either a certificate of deposit or an irrevo-
cable letter of credit, in order to guarantee the payment of concession
fees under this Agreement. Throughout the concession term, Concessionaire
agrees to submit to the City, not later than the 10th day of each month, a
full report, certified to be correct by an officer of the Concessionaire,
of all Gross Revenues for the preceding month, together with a check for
the excess, if any, of the percentage of Gross Revenues for the preceding
month over the minimum concession fee. No annual adjustment of overages of
percentage Gross Revenues over the monthly installments will be made. Each
month will stand alone.
"Gross Revenues", as used herein, shall mean all moneys earned or
retained in fees and commissions by Concessionaire from its operations in
the Concession Space at the Airport, but shall not include sums recovered
(from insurance or otherwise) for damage to property of Concessionaire, nor
for any tax levied by any governmental authority which is separately stated
and collected from Concessionaire's customers. Credit risks shall be borne
solely by the Concessionaire, and for purposes of payment all income shall
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be treated in Gross Revenues whether collected or accrued, including any
sums or receipts which may have been diverted by employees of
Concessionaire or otherwise.
4. RESPONSIBILITIES OF CONCESSIONAIRE. The Concessionaire agrees to
provide and maintain a full service travel agency at the Airport throughout
the term of this Agreement. Such services shall include but are not
limited to:
(1) Sale of tickets for air, ground, rail and sea transportation,
including tour and package plans.
(2) Hotel/Motel accommodation reservations.
(3) Provision of passport, passport photos, visa and tourist card
assistance, as allowed by law, and travelers checks.
(4) Automobile rental arrangements:
(a) For rentals in Corpus Christi, only with Rental Car Agencies
authorized to operate and maintain facilities at the
Airport.
(b) For rentals outside Corpus Christi, unlimited.
(5) Obtain and maintain membership in good standing in the Air
Traffic Conference of American (ATCA) and the International Air
Transport Association (IATA).
Business hours shall be from 6:00 a.m. to 6:00 p.m., five days per
week.
5. ACCESS TO PREMISES. The right of ingress and egress to and from
the Concession Space is granted Concessionaire, its employees, agents,
guests, patrons, shippers and consignees over designated roadways, drives
and walkways without charge, except as herein otherwise provided; however,
nothing herein contained shall be deemed to limited the City's right to
impose charges upon the parking of vehicles.
6. CONSTRUCTION. Concessionaire, at its own expense, may construct
or install in or on any of the Concession Space hereunder any improvements,
special equipment, electrical wiring, including signs, that it shall
determine to be necessary for use in connection with its travel agency
business; providing, however, that such improvements shall be built in
accordance with applicable laws and ordinances. The City's Director of
Aviation shall have the right to inspect the plans and specifications of
any such improvements prior to the construction or installation thereof and
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to refuse to permit such construction or installation if the external
appearance thereof does not meet the City's reasonable requirements for
substantial uniformity of appearance of all structures at the Airport, or
if the type of construction or installation for the location thereof does
not meet the City's reasonable requirements for the safe use of the
Airport.
7. CITY'S RIGHT OF CANCELLATION. The City has the right to
terminate this Agreement in its entirety upon the happening of any of the
following events:
(1) Immediately upon the occurrence of any act which operates to
deprive the Concessionaire of the rights, powers, licenses,
permits and authorizations necessary for the proper and
lawful conduct and operation of the services authorized
herein.
(2) Immediately upon the filing by or against the Concessionaire
of an assignment for the benefit of creditors, which event
shall constitute a breach of this Agreement, and thereupon
this Agreement shall become null and void and no benefits
thereunder shall pass to any assignee or transferee thereof.
(3) Immediately upon the making by the Concessionaire of an
assignment for the benefit of creditors, which event shall
constitute a breach of this Agreement, and thereupon this
Agreement shall become null and void and no benefits
thereunder shall pass to any assignee or transferee thereof.
(4) Upon seven (7) days' written notice on the non-payment of
fees due to the City in the event such non-payment has
continued for a period of ten (10) days following the date
such payment was due.
(5) Upon thirty (30) days' written notice on the failure by the
Concessionaire to perform, keep and observe any other of the
terms, covenants and conditions of this Agreement, excepting
those specifically listed above in this section,'required on
the part of the Concessionaire to be performed, kept or
observed.
All agreements herein made and obligations assumed are to be construed
also as conditions and are made upon the express condition that if
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Concessionaire should fail to pay when due any one of the aforesaid
installments of concession fees, or should fail to perform or observe any
of the agreements or obligations herein made or assumed by said
Concessionaire, then and thenceforth, in any of said events, this Agreement
may be forfeited and thereby become null and void at the option of the
City, and the City may immediately, or at any time after the breach of any
of said covenants, re-enter said Concession Space, or any part thereof in
the name of the whole, and repossess and have the same as the City's former
estate and remove therefrom all goods and chattels not thereto properly
belonging, and expel said Concessionaire and all other persons who may be
in possession of said Concession Space without further demand or notice,
except as provided above.
_ The right in the City to terminate this Agreement as herein set forth
is in addition to and not in exhaustion of such other rights that the City
has or causes of action that may accrue to the City because of this
Agreement, and the exercise or pursuit by the City of any of the rights or
causes of action accruing hereunder shall not be an exhaustion of such
other rights or causes of action that the City might otherwise have.
8. CONCESSIONAIRE RIGHT OF CANCELLATION. Concessionaire shall have
the right upon the thirty (30) days notice to the City to terminate this
Agreement at any time after the occurrence of one or more of the following:
(a) Issuance by any court of competent jurisdiction of any
injunction substantially restricting the use of the Airport
for airport purposes and the remaining in force of said
injunction, whether permanent or temporary, for a period of
ninety (90) days, or the issuance of any injunctions
restricting the Concessionaire from conducting and operating
the business and facilities specified in this Agreement.
(b) A breach by the City of any of the terms, covenants or
conditions herein contained and the failure of the City to
remedy such breach for a period of sixty (60) days after
receipt of written notice from Concessionaire of the
existence of such breach.
(c) The assumption by the United States Government or any
authorized agency thereof, or any governmental agency, of
the operation, control or use of the Airport facilities, or
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any substantial part or parts thereof in such manner as
substantially to restrict Concessionaire's operations for a
period of ninety (90) days or more.
9. SECURITY. The City, as a party hereto, shall not be obligated to
provide any police, watchmen or fire protection, and neither the City nor
any of its agents, or officers or employees shall be liable or responsible
to the Concessionaire for any damages to it by reason of the lack of any
such facilities or service.
10. UTILITIES. The City shall provide heat and air conditioning in
the Concessionaire Space, electrical power for normal illumination, initial
light bulbs and tubes, structural and systems maintenance (except
structural and systems maintenance necessitated by negligence of
Concessionaire) and trash pickup at a central location designated by the
City. Concessionaire agrees to pay for electrical power, other than that
used for normal illumination, at a cost based on consumption and prevailing
rates.
11. MAINTENANCE AND REPAIR. Concessionaire, at its cost shall
maintain the interior of the Concession Space as required, including but
not limited to, painting, janitorial work, washing of windows inside and
out (if applicable), and the replacement of light bulbs and flourescent
tubes in the Concession Space. Concessionaire shall not modify or cause to
be modified any portion of the Concession Space without having secured
prior written approval of the City's Director of Aviation. Improvements to
the building added by the Concessionaire shall at once become the property
of the City, however, trade fixtures shall remain the property of the
Concessionaire.
12. RULES AND REGULATIONS. Concessionaire agrees to abide by all
rules and regulations which may now or hereafter be promulgated or adopted
by the City, relative to the regulation of the affairs of Concessionaire
and other tenants, or concessionaires at the Airport.
13. SIGNS. Concessionaire shall not erect or cause to be erected any
signs at the Airport, including the interior and exterior of the Concession
Space, in view of the public without having secured prior written approval
of the City's Director of Aviation.
14. DAMAGE TO PREMISES. In the event the Concession Space shall be
partially damaged by fire, explosion, the elements, the public enemy or
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other casualty, but not rendered untenable, the same shall be repaired with
due diligence by the City at its own cost and expense. If the damage shall
be extensive as to render the Concession Space untenable, but capable of
being repaired in thirty (30) days, the same shall be repaired with due
diligence by the City at its own cast and expense, and the concession fees
payable hereunder with respect to the concessionaire operations hereunder
shall be proportionately paid up to the time of such damage and shall cease
until such time as the Concession Space is fully restored. In case the
Concession Space is completely destroyed by fire, explosion, the elements,
the public enemy or other casualty, and is so damaged to the extent that
they will or do remain untenable for more than thirty (30) days, the City
shall be under no obligation to repair and reconstruct the Concession
Space, and the concession fees payable hereunder shall be proportionately
paid up to the time of such damage or destruction, and shall thenceforth
cease until such time as the Concession Space may be fully restored. If
with twelve (12) months after the time of such damage or destruction, the
Concession Space shall not have been repaired or reconstructed for
Concessionaire's use, the Concessionaire may give the City written notice
of its intention to then cancel this Agreement in its entirety.
15. AVAILABILITY OF RECORDS AND AUDIT REPORT. The Concessionaire
agrees to make available to the City or its authorized representatives at
any time, from Monday through Friday inclusive, between the hours of 9:00
a.m. and 5:00 p.m., all records, books or pertinent information as may be
required for audit purposes.
Within 120 days following the end of each year of this Agreement,
Concessionaire shall provide the City with a statement of Gross Revenues
for the preceding year for the Concessionaire's operation at the Airport
prepared by an independent certified public accountant who is not otherwise
employed by Concessionaire.
16. INDEMNIFICATION. Concessionaire agrees to fully indemnify and
forever save and hold harmless, the City, its officers, agents and
employees, from and against any and all claims, actions, lawsuits, demands
and liabilities, and all expenses incident to the investigation and defense
thereof, based upon or arising out of damages, injuries or death to any
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persons or their property, caused by or alleged to have been caused by the
default or negligence or other activities of Concessionaire, its agents or
employees, under this Agreement.
Concessionaire shall procure and keep in force at all times during the
term of this Agreement full liability and property damage insurance
coverage in a company or companies satisfactory to the City, protecting the
City against any liability or loss or claim by reason of any alleged
negligent or wrongful act or conduct of Concessionaire on the Concession
Space or any part or appurtenance of the Airport, or in connection with any
activity related to the Airport, in the amount of $200,000/$500,000/
$100,000, which insurance coverage shall include the City as additional
named insured. A certificate of insurance naming the City as additional
insured shall be furnished the City in duplicate and shall not be cancel-
lable except upon notice in writing to the City by certified mail ten (10)
days prior to the effective date of cancellation.
17. ENJOYMENT OF PRIVILEGES. The City agrees that, on payment of the
fees and performance of the covenants and agreements on the part of
Concessionaire to be performed hereunder, Concessionaire shall peaceably
have and enjoy the Concession Space and privileges of said Airport granted
herein. Concessionaire shall not willfully permit the Concession Space to
be used for any unlawful purpose or purposes that will injure the
reputation of the Airport.
18. SURRENDER OF PRIVILEGES. Upon the expiration of this Agreement,
Concessionaire's right to use the Concession Space and enjoy the privileges
herein provided shall cease and Concessionaire shall forthwith upon such
expiration or termination surrender the same. Concessionaire covenants
that at the expiration of the term herein provided the Concession Space
will be yielded to the City in as good condition as when the same were
entered upon by the Concessionaire, fire, accident or the public enemy and
reasonable wear excepted.
19. CITY ENTRY TO CONCESSION SPACE. The City or its authorized
representatives may enter upon the Concession Space at any reasonable time
for any purpose necessary, incidental to or connected with the performance
of its obligations hereunder or in the exercise of its governmental
functions. The City in no way intends to bind itself with respect to its
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governmental functions, nor does it bargain or agree to convey or transfer
its police powers or other such powers or functions hereunder.
20. ASSIGNMENT. Concessionaire shall not at any time assign this
Agreement or operations hereunder, or any part thereof, without having
first secured prior written approval of the City.
21. OFFICIAL NOTICE. Notices to the City provided for herein shall
be sufficient if sent by certified mail, postage prepaid, addressed to the
City Manager, City of Corpus Christi, P. 0. Box 9277, Corpus Christi, Texas
78469, and notices to Concessionaire if sent by certified mail, postage
prepaid, addressed to Mr. Mark L. Johnstone, Village Travel, Inc., 218
Petroleum Tower, Corpus Christi, Texas 78474, or to such other respective
addresses as the parties may designate to each other in writing from time
to time.
22. NONDISCRIMINATION. During the performance of this Agreement, the
Concessionaire, for itself, its assignees and successors in interest agree
as follows:
(a) The Concessionaire shall comply with the Regulations
relative to nondiscrimination in Federally -assisted programs of the
Department of Transportation, Title 49, Code of Federal Regulations,
Part 21, as they may be amended from time to time, (hereinafter
referred to as the Regulations), which are herein incorporated by
reference and made a part of this Agreement.
(b) The Concessionaire, with regard to the work performed by it
during the Agreement, shall not discriminate on the grounds of race,
color, creed, sex, handicap or national origin in the selection and
retention of subcontractors, including procurements of materials and
leases of equipment. The Concessionaire shall not participate either
directly or indirectly in the discrimination prohibited by Section
21.5 of the Regulations, including employment practices when the
contract covers a program set forth in Appendix B of the Regulations.
(c) In all solicitations either by competitive bidding or
negotiation made by the Concessionaire for work to be performed under
a subcontract, including procurements of materials or leases of
equipment, each potential subcontractor of supplier shall be notified
by the contractor of the contractor's obligation under this Agreement
and the Regulations relative to nondiscrimination on the grounds of
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race, color, creed, sex, handicap or national origin.
(d) The Concessionaire shall provide all information and reports
required by the Regulations or directives issued pursuant thereto, and
shall permit access to its books, records, accounts, other sources of
information, and its facilities as may be determined by the City or
the Federal Aviation Administration to be pertinent to ascertain
compliance with such Regulations, orders, and instructions. Where any
information required of a Concessionaire is in the exclusive
possession of another who fails to refuses to furnish this information
the Concessionaire shall so certify to the City or the Federal
Aviation Administration as appropriate, and shall set forth what
efforts it has made to obtain the information.
(e) In the event of the Concessionaire's noncompliance with the
nondiscrimination provisions of this Agreement, the City shall impose
such sanctions as it or the Federal Aviation Administration may
determine to be appropriate, including, but not limited to
cancellation, termination, or suspension of the Agreement in whole or
in part.
The Concessionaire shall include the provisions as set out above in this
Section 22 of paragraphs "a" through "e" in every subcontract, including
procurements of materials and leases of equipment, unless exempt by the
Regulations or directives issued pursuant thereto. The Concessionaire
shall take such action with respect to any subcontract or procurement as
the City or the Federal Aviation Administration may direct as a means of
enforcing such provisions including sanctions for noncompliance; provided,
however, that, in the event Concessionaire becomes involved in, or is
threatened with, litigation with a subcontractor or supplier as a result of
such direction, the Concessionaire may request the City to enter into such
litigation to protect the interests of the City and, in addition, the
Concessionaire may request the United States to enter into such litigation
to protect the interests of the United States.
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IN WITNESS WHEREOF this Agreement is executed in duplicate originals,
both of equal force and effect, as of this day of
1983.
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
Bill G. Read, City Secretary
APPROVED:
This day of May, 1983:
J. Bruce Aycock, City Attorney
By
Edward A. Martin, City Manager
By
Assistant City Manager
By CONCESSIONAIRE, VILLAGE TRAVEL, INC.
Assistant City Attorney
By
Mark L. Johnstone, President
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That the foregoing ordinance/s read for first time and wed to its
second reading on this the l 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 waA read for t second time and ppssed to its
:0 -?..5.1"1 -day
third reading. on this the of , 19 3 , by the
following vote:
Luther JonesJyt
XPi
Betty N. Turner
Jack K. Dumphy
Bob Gulley
Herbert L. Hawkins, Jr.
Dr. Charles W. Kennedy
Cliff Zarsky
That the fore og ordinanc
on this the day of
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
ATTEST:
was read for the t 'rd time and passed finally
, 19 , by the following vote:
1 y Secretary
J. BRUCE AYCOCK, CITY ATTORNEY
MAYOR
19
THE CITY OF CORPUS CHRISTI, TEXAS
17621
•
PUBLISHER'S AFFIDAVIT
STATE OF TEXAS, t„,County of Nueces.
AD#516307
City of C.C.
Before me, the undersigned, a Notary Public, this day personally came.
GRACIE DE LUNA
ADM. ASST. SECRETARY
76,=.1-1
who
who being first duly sworn, according to law, says that he is the
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
r
NOTICE OF PASSAGE...
of which the annexed is a true copy, was published in
CALL E7TIMES_ PUBLISHING CO___
on the 38th day of May ._...__.1983., and once each day thereafter for ;0'7
r
consecutive
One
day
Times.
$ 24.75 GRACIE DE LUNA
ADM. ASST. SECRETARY
Subscribed and sworn to before me this 31st
EUGENIA S. CORTEZ
day of
May 19 83
Notary lhblic, Nueces County, Te as
fr
laza,
78475
exas
Re -
E.::
No
, NOTICE OF PASSAG
SECOND ORDINANCE
Ap RI/ ToA CON.:
LSERVICE TO
L.w...Zhaskug
RICE AT CORPUS C
RISTI INTERNATION- 7.
AIRPORT POR A M
RIOD OF THREE C.
ARS, 28
Was passed and approved Co
the City Countil of the 78
ity of Corpus Christ, Tex. Wi
an the 25th day of play, M
83. The full text of said I
dinance is available to the C
blic in the Office of the 7
t etary.
-5-Bill G. Read
City Secretary 6
Corpus
i� 4rilv3_ AD#507721
q, City of C.C.
• PUBLISHER'S AFFIDAVIT
STATE OF TEXAS, tss:
County of Nueces. 1
Before me, the undersigned, a Notary Public, this day personally came
GRACIE DE LUNA
who being first duly sworn, according to law, says that he is the
ADM. ASST. SECRETARY 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 4
NOTICE OF PASSAGE OF ORDINANCE_ ON FIRST READING...
of which the annexed is a true copy, was published in CALLER—TIMES PUBLISHING CO T__
on the23rd day of May.___.. ...._.19...83 and once each diiY.._........thereafter for one
consecutive day
One Times.
24.75 GRACIE DE LUNA CG
ADM. ASST. SECRETARY
Subscribed and sworn to before me this 23rd day of
EUGENIA S. CORTEZ
Q r t&
May 19 83
_S �d
Notary Pilblic, Nueces County, Texas