HomeMy WebLinkAbout17635 ORD - 06/08/1983AN ORDINANCE
AUTHORIZING AN AGREEMENT WITH EMERALD AIR FOR THE LEASE
OF SPACE AT THE CORPUS CHRISTI INTERNATIONAL AIRPORT
EFFECTIVE JUNE 10, M; AND DECLARING AN EMERGENCY.
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
lease agreement with Emerald Air for the lease of space at the Corpus Christi
International Airport to provide flight service effective June 10, 1983, all
as more fully described in the agreement, a substantial copy of which is
attached hereto and made a part hereof, marked Exhibit "A".
SECTION 2. That upon written request of the Mayor or five Council
members, copy attached, to find and declare an emergency due to the immediate
need for efficient and effective administration of City affairs by
authorizing the aforementioned lease, such finding of an emergency is made
and declared requiring suspension of the Charter rule as to consideration and
voting upon ordinances or resolutions at three regular meetings so that this
ordinance is passed a d shall take effect upon first reading as an emergency
measure this the day of June, 1983.
ATTEST:
1 Secretary "' MAYOR
THE TY OF CORPUS CHRISTI, TEXAS
APPROVED./,`fr DAY OF JUNE, 1983
J. BRUCE AYCOCK, CITY ATTORNEY
By
ss
ttorney
17635
,Sgp 28 1984
Ala/FAMED
N
THE STATE OF TEXAS
COUNTY OF NUECES
This Lease Agreement, made and entered into this the day of
, 1983, by and between the City of Corpus Christi,
acting herein by and through its City Manager, with authority duly conferred
by the City Council, a municipal corporation, organized and existing under
the laws of the State of Texas, situated in Nueces County, Texas, hereinafter
referred to as LESSOR, and EMERALD AIR, INC. hereinafter referred to as LESSEE,
11 ITNESSETH
ARTICLE I
PREMISES
Lessor, as sponsor and owner of the Corpus Christi International Airport
located in Nueces County, Texas, does hereby, for the uses and purposes and
for the consideration as hereinafter stated, demise and let unto Lessee, and
Lessee does hereby hire and take from Lessor, the following premises and,
without limiting the generality hereof, the following facilities, rights,
licenses and privileges on and in connection with the Airport, as more
particularly hereinafter set forth:
A. Use of Airport. The use by Lessee, its employees, passengers, guests,
patrons and invitees, in common with other duly authorized users of the public
portions of said Airport and appurtenances, the same being more particularly
described in diagram marked "Exhibit A", attached hereto and made a part
hereof for more particular reference, together with all facilities, .improvements,
equipment and services which have been or may be hereafter provided for common
use at or in connection with said Airport.
B. Specific Rights at Airport. In addition to all rights elsewhere granted
in this agreement, the Lessee shall have the right to use the Airport for the
following specific purposes:
1. The operation of a transportation system by aircraft for the carriage
of property, including all activities reasonably necessary to such operation,
hereinafter referred to as "air transportation";
2. The landing, take off, loading, unloading, repairing, maintaining,
conditioning, servicing, parking, storing and testing of aircraft or other
equipment including the use of a reasonable amount of conveniently located ramp
area which Lessor will keep in good repair, and locations to be mutually agreed
upon, adequate storage facilities for gasoline, oil, greases and other fuel or
supplies, at convenient locations, in accordance with insurance underwriters'
standards, together with the necessary pipes, pumps, motors, filters and other
appurtenances incidental to the use thereof; such structures and appurtenances- to be -
and remain the severable property of Lessee;
3. The documentation of shipments and the loading and unloading of cargo
and property at said Airport by such motor vehicles or other means of conveyance
as Lessee may desire or require in the operation of its air transportation
system, with the right to designate the particular carrier or carriers who
shall or may regularly transport Lessee's property and cargo to and from the
Airport, provided, however, that nothing contained herein shall prevent the
City from granting the franchise or franchises for limousine service;
4. The purchase at said Airport of Lessee's requirements of gasoline, fuel,
lubricating oil, grease, food and other supplies, and any other materials and
supplies from any person or company of Lessee's choice, and the making of
agreements with any person or company of Lessee's choice for work to be done
for Lessee;
5. The installation and operation of identifying signs on the leased premises,
the general type and design of such signs to be subject to the approval of the
Director of Aviation, such approval not to be arbitrarily withheld;
6. The installation, maintenance and operation of such radio, communication,
meteorological and aerial navigation equipment and facilities in, on and about
the premises herein leased and said Airport as may be necessary or convenient
in the opinion of the Lessee for its operations; provided that the location
of such equipment and facilities as might interfere with full and proper use
of the Airport shall be subject to the approval of the Airport Director,
such approval not to be arbitrarily withheld;
The right, licenses and privileges granted the Lessee under this Article I
with respect to the performance of ground services and activities in connection
with its air transportation operations at the Airport may be exercised by the
Lessee for and on behalf of the Lessee by any company or person designated
by Lessee.
C. Space in Terminal Complex. The exclusive use of a total of 646 square
feet of space, which includes 299 square feet of counter space and 347 square
feet of air conditioned office space, as same is more particularly set forth
on exhibit "B", attached hereto and made a part hereof. This space is accepted
on an "as is" basis and all improvement costs are to be borne by Lessee.
Non-exclusive use of 1392 square feet of space in the International
Building known as Gate No. 6 as shwon on Exhibit "8-1" attached and made a
part hereof, to be used by Lessee for the accommodation and processing of
passengers. Lessee will have first right of use of said space but will permit'
others to use space on an as needed basis when there are no conflicts in flight
arrivals or departures.
D. Parking Space. The use by Lessee and its employees, in common only
with the other air transport operators who may be lessees of space at the
Airport and their employees, of adequate vehicular parking space located as
near as possible to said Terminal Building. A charge per month per employee
may be made for the use of this space. The charge will be levied only in the
event that additional parking space must be built to accommodate employees'
vehicles.
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E. Right of Access, Ingress and Egress. The full and unrestricted rights
of access, ingress and egress with respect to the premises outlined in
paragraph A to D above, for Lessee, its employees, passengers, guests, patrons,
invitees, suppliers of materials and furnishers of service, its or their
aircraft, equipment, vehicles, machinery and other property, subject to Airport
security regulations, without charge to Lessee, or to said persons or property.
ARTICLE II
Lessee shall have and hold said premises, facilities, rights, licenses
and privileges set forth in paragraphs A to E inclusive, of Article I, for a
term commencing on the /01A -day of , 19 83, on a month-to-month
basis, and continuing until such term or agreements are reached with all
contract carriers setting forth fees and terms, unless sooner terminated as
hereinafter provided.
ARTICLE III
QUIET ENJOYMENT
Lessor represents that it has the right to lease said property and
appurtenances together with all the facilities. rights, licenses and p•ivileges
herein granted, and has fell power and auLhoriLy to enter into this lease in
respect thereof; and covenants that upon performance of the Agreements on the
part of Lessee to be performed hereunder, Lessee shall peaceably have and
enjoy said premises, appurtenances, facilites, rights, licenses and privileges.
ARTICLE IV
DEVELOPMENT, MAINTENANCE AND OPERATION OF AIRPORT
Lessor agrees that it will develop and improve, and at all times maintain
and operate with adequate and efficient personnel and keep in good repair said
Airport and Terminal Building, and the appurtenances, facilities and services
now or hereafter connected therewith, and keep said Airport and its approaches
free from obstruction, congestion and interference for the safe, convenient
and proper use thereof by Lessee, and will maintain and operate said Airport
so as to entitle it to the approved rating by the Federal Aviation Agency and
all other appropriate regulatory authorities in respect to all present and
future operations of Lessee. Lessor shall provide adequate illumination for
the loading ramp area adjacent to the Terminal Building with a minimum of three
foot candles at a distance of 75 feet from the ramp fence line.
It is expressly understood that the Lessor will keep the public space
in the Terminal Building attractively furnished, and will provide and supply
adequate light, electricity and water for the public space; heat during cold
weather and air conditioning during warm weather sufficient to keep the
building at a reasonable temperature; janitors and other cleaners necessary
to keep the Airport and all spaces in the Terminal Building at all times
clean, neat, orderly, sanitary and presentable; such personnel as may be
necessary to facilitate the use of the Airport and Terminal Building and the
appurtenances, facilities and services as aforesaid by any one hereunder
entitled to use the same.
Lessor agrees that it will provide domestic water, mechanical equipment
and piping necessary for cooling and heating Terminal Building space together
with the necessary hot and cold water to air condition and heat said space.
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ARTICLE V
RULES AND REGULATIONS
Lessee covenants and agrees to observe and obey all reasonable and lawful
rules and regulations, not in conflict with the provisions hereof, which may from
time to time during the term hereof be promulgated and enforced by Lessor for
operation at said Airport.
ARTICLE VI
RENTALS AND FEES -
Lessee agrees to pay Lessor for the use of all the premises, facilities,
rights, licenses and privileges granted hereunder, the following rentals, fees
and charges:
Space Rentals:
a. Ticket Counter area - $10.04 per square foot per annum.
b. Air conditioned office space - $9.36 per square foot per annum.
c. Gate 6 - $7.83 per square foot per annum.
2. $4.50 per month for each exclusive public address microphone.
located in Lessee's exclusive space.
3. Baggage claim - The fee for the baggage claim area containing 3750
square feet shall be at a rate of $2.48 per square foot per annum
for a total yearly rental of $9,765 to be paid jointly by the
Lessee and certificated carriers holding valid leases with the
City in accordance with the following formula:
Twenty percent (20%) of the rent in the amount of $2,325
will be shared) equally ($2,325 divided by the number
of airline lessees). The remaining eighty percent (80%)
or $7,440 will be according to the following: Lessee's
enplaning passengers divided by the total passengers
enplaned by all air carrier lessees, and then multiplied
by $7,440. The baggage claim area rent will be calculated
monthly and paid in the same manner as other rents.
4. Landing fees paid by Lessee will be 661/2cents per 1,000 pounds
certified gross landing weight.
5. Lessee agrees to pay for electrical energy consumed by Lessee
in Lessee's exclusive space on a metered basis at City's cost.
The above listed rentals and fees shall become dun and payable on a
monthly basis. Payments shall be made to the Airport Director or to such
other agency of the City as may be specifically designated in writing by the
Lessor. The foregoing payments shall be made on or before the 15th day of
the calendar month next succeeding that for which payment is being made;
provided that in no case will said amount be payable until ten (10) days
after receipt by the Lessee of a written bill therefor from Lessor; and
provided that Lessee shall not be required to pay in respect to any' time or _
times during which the facilities and privileges of said Airport and premises
do not measure up or conform to the standard set in this agreement, or are
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not for other reasons usable by the Lessee in all its said operations and
business. Payments shall be prorated for any portion of a calendar month at
the commencement and termination of this agreement.
ARTICLE VII
NO FURTHER CHARGES, FEES OR TAXES
No rentals, fees, license, excise or operating taxes, tolls or other
charges, except those herein expressly provided, shall be charged against
or collected from, directly or indirectly, the_Lessee or any other person
engaged in supplying Lessee, for the privileges of buying, selling, using,
storing, withdrawing, handling, consuming or transporting materials or
other supplies, to from or on the Airport; of making or performing agreements
for work, materials, or services at the Airport; of transporting, loading,
unloading or handling cargo or property to, from or on said Airport; or for
any other of the premises, facilities, rights, licenses, and privileges in
this lease.
Nothing contained herein, however, shall prohibit the Lessor from renting
space for or charging a reasonable fee to a catering service providing food
prepared on the Airport, or from granting franchises for the operation of
limousine and taxicab and rent -a -car services or from charging a flowage fee
to operators vending fuels and lubricants on the Airport, provided that no
such flowage fee will be charged for fuels and lubricants delivered into
Lessee's aircraft at the Airport.
This provision is not to limit the right of Lessor to license or tax in
a general or nondiscriminatory way any office or business operation located
or conducted outside the boundaries of the Airport and within the corporate
limits of Lessor; and it is not to limit Lessor's right to impose general and
nondiscriminatory ad valorem taxation on personal or real property having
a taxable situs within the corporate limits of Lessor. If any taxes other•
than ad valorem or general sales taxes are paid by Lessee as a result of its
operation, the fees and charges in Article VII hereof shall be diminished in
like amounts.
ARTICLE VIII
DAMAGE OR DESTRUCTION OF LEASED PREMISES
If any property, part or all of which is leased to Lessee, shall be
partially damaged or wholly destroyed by fire or other -casualty, Lessor at
its own cost and expense shall repair or reconstruct the same with due
diligence and within a reasonable time; and Lessee's rentals and other charges
with respect to said property shall be proportionately abated from the
happening of such damage or destruction until such time as the premises shall
be put in order.
ARTICLE IX
CANCELLATION BY LESSOR
In the event that Lessee shall file a voluntary petition in bankruptcy
or that proceeding in bankruptcy shall be instituted against it and Lessee is
thereafter adjudicated bankrupt pursuant to such proceedings, or that the
court shall take jurisdiction of Lessee and its assets pursuant to proceedings
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IMO
brought under the provisions of any Federal reorganization act, or that a
receiver of Lessee's assets shall be appointed, or that Lessee shall be divested
of, or be prevented by any final action of any Federal or State authority from
conducting and operating its transportation system for the carriage of cargo
and property by aircraft at the Airport, or in the event that Lessee shall fail
to perform, keep and observe any of the terms, covenants or conditions herein
contained on the part of the Lessee to be performed, kept or observed, and any
such condition or default shall continue for thirty (30) days after the receipt
of written notice from Lessor to correct such condition or cure such default,
prior to the correction or of curing of such condition or default, if applicable,
terminate this lease by a twenty (20) day written notice; and the term hereby
demised shall thereupon cease and expire at the end of such twenty (20) days
in the same manner and to the same effect as if it were the expiration of the
original term.
ARTICLE X
CANCELLATION BY LESSEE
Lessee, in addition to any right of cancellation or any other right herein
given to Lessee, may suspend or cancel this lease in its entirety or suspend
or terminate all or any of its obligations hereunder at any time, by thirty (30)
days' written notice, upon or after the happening of any one of the following:
1. The suspension or termination of Lessee's Certificate of Public
Convenience and Necessity.
2. Any failure or refusal by the Texas Aeronautics Commission to permit
Lessee to operate into, from or through said Airport such aircraft as Lessee
may reasonably desire so to operate.
3. The breach by Lessor of any of the covenants or agreements herein
contained and the failure of Lessor to remedy such breach for a period of
thirty (30) days after receipt of a written notice of the existence of such breach.
4. The inability of Lessee to use said premises and facilities
continuing for a longer period than thirty (30) days whether due to any law
or order, rule or regulation of any appropriate governmental authority having
jurisdiction over the premises or the operation of Lessee or due to war,
earthquake or other casualty.
In the event that the Lessee shall suspend this lease or any of its
obligations, as herein provided, Lessee shall have the. further right, during
such suspension, to cancel this lease or any of its obligations by giving
Lessor thirty (30) days written notice of such cancellation at any time prior
to termination of the condition or event which gave rise to the suspension;
and if Lessee does not so cancel, such suspension shall terminate sixty (60)
days after termination of such condition or event and written notice thereof
from Lessor to Lessee. The period of any suspension of this lease in its
entirety shall be added to the term of this lease or any renewal or extension
thereof.
ARTICLE XI
NONWAIVER OF RIGHTS
Continued performance by either party pursuant to the terms of this
agreement after a default of any of the terms, covenants and conditions herein
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contained to be performed,'kept or observed by the other party shall not be
deemed a waiver of any right to cancel this lease for such default, and no
waiver of any such default shall be construed or act as a waiver of any
subsequent default.
ARTICLE XII
SURRENDER OF POSSESSION
Lessee agrees to yield and deliver to Lessor possession of the premises
leased herein at the termination of this lease•, by expiration or otherwise, or
of any renewal or extension hereof, in good condition in accordance with its
express obligations hereunder, except for reasonable wear and tear, fire or
other casualty, and Lessee shall have the right at any time during said term,
or any renewal or extension hereof, and for ninety (90) days after the
termination hereof, to remove any buildings, structures, or facilities it may
erect or install on the premises and to remove all fixtures and equipment and
other property installed or placed by it at its expense, in, on or about the
premises herein leased; subject, however, to any valid lien which Lessor may
have thereon for unpaid rents or fees.
ARTICLE XIII
ASSIGNMENT OF LEASE
Lessee shall not at any time assign this lease or any part thereof without
the consent in writing of Lessor; provided, however, that without such consent
Lessee may assign this lease to any corporation with which the Lessee may merge
or consolidate or which may succeed to the business of this Lease, or may
sublet any of the space leased exclusively to the Lessee hereunder.
ARTICLE XIV
INDEMNIFICATION
The Lessee, under the terms of this agreement, will not be in control or
possession of said Airport and Lessee does not assume responsibility for the
conduct or operation of the said Airport or for the physical or other conditions
of the same. However, it is expressly understood and agreed by and between
the parties hereto that the Lessee is and shall be an independent contractor and
operator, responsible to all parties for all of its acts or omissions and the
Lessor shall in no way be responsible therefor. It is further agreed that in
its use and enjoyment of the field, premises and facilities herein referred to,
the Lessee will indemnify and save harmless the Lessor from any and all claims'
or losses that may proximately result to the Lessor from any negligence on the
part of the Lessee, its duly authorized agents or employees, and shall in all
ways hold the Lessor harmless from same, provided that Lessor shall give to
the Lessee prompt notice of any claim, damage or loss, or action in respect
thereto, and an opportunity reasonably to investigate and defend against any
claim or action.based upon alleged negligent conduct of the Lessee or its duly
authorized agents or employees.
ARTICLE XV
NOTICES
Notices to the Lessor provided for herein shall be sufficient if sent by
registered mail, postage prepaid, addressed to:
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Director of Aviation, Route 2, Box 902, Corpus Christi, Texas 78410; and notices
to the Lessee, if sent by registered mail, postage prepard, addressed to Lessee,
or to such other
respective addresses as the parties may designate in writing from time to time.
ARTICLE XVI
COVENANT NOT TO GRANT MORE FAVORABLE TERMS
Lessor covenants and agrees not to enter into any lease, contract or
agreement with any other air transport operator with respect to the Airport
containing more favorable terms than this lease or to grant to any other air
transport operator rights, privileges or concessions with respect to the said
Airport which are not accorded to the Lessee hereunder unless the same terms,
rights, privileges, and concessions are concurrently made available to the Lessee.
ARTICLE XVII
FEDERAL AVIATION ADMINISTRATION
Whenever the term "Federal Aviation Administration" is used in this lease,
it shall be construed as referring to the Federal Aviation Administration
created by the Federal Government originally as the Civil Aeronautics Authority
under the Civil Aeronautics Act of 1938, or to such other agency or agencies of
the Federal Government having from time to time similar jurisdiction over the
Lessee or its business.
ARTICLE XVIII
HEADINGS
The article and paragraph headings 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 provision of this lease.
ARTICLE XIX
INVALID PROVISION
It is further expressly understood and agreed by and between the parties
hereto that in the event any covenant, condition or provision herein contained
is held to be invalid by any court of competent jurisdiction, or otherwise
appears to both parties to be invalid, the invalidity of any such covenant,
condition or provision shall in no way affect any other covenant, condition
or provision herein contained; provided, however, that the invalidity of any
such covenant, condition or provision does not materially prejudice either
the Lessor or the Lessee in its respective rights and obligations contained
in the valid covenants, conditions or provisions of this lease.
ARTICLE XX
PERFORMANCE BOND/LETTER OF CREDIT
Lessee agrees to furnish within fifteen (15) days from the effective
date of said agreement a performance bond or a letter of credit in the
principal amount of $5,000. This performance bond or letter of credit shall --
guarantee the payment of landing fees, terminal fees, security charges and
Lessee's other obligations to pay as provided herein. The performance bond
or letter of credit shall be in a form agreeable to the City Attorney and
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shall be kept in full force and effect during the term hereof.
IN WITNESS WHEREOF, the parties hereto have executed these presents as
of the day and year first above written.
CITY OF CORPUS CHRISTI, TEXAS LESSEE:
City Manager
ATTEST:
City Secretary
J. BRUCE AYCOCK, CITY ATTORNEY
By:
A ristant City Attorney
APPROVED:
Department Head
50-- Day Of JCA— , 1983
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EXHIBIT "B-1"
>;• CITY OF CORPUS CHRISTI
4e DISCLOSURE OF INTERESTS
N
City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking to do business with the City
to provide the following information. Every question must be answered. If the question is not applicable, answer with
"NA." Corporations whose shores are publicly traded and listed on national or regional stock exchanges or over -the.
counter markets may file o current Securities and Exchange Commission Form 10-K with the City in lieu of answering
the questions below. See reserve side for definitions.
Emerald Air, Inc.
FIRM NAME:
STREET:
FIRM is: 1. Corporation (
4. Association
CITY: ZIP•
2. Partnership ( ) 3. Sole Owner ( )
5. Other ( )
DISCLOSURE QUESTIONS
If additional space is necessary, please use the reverse side of this page or attach separate sheet.
1. State the nornes of each "employee" of the City of Corpus Christi having an "ownership interest" constituting 3% or
more of the ownership in the above named "firm."
Nome Job Title and City Department (if known)
2. State the names of each "official" of the City of Corpus Christi having on "ownership interest" constituting 3% or
more of the ownership in the above named "firm".
Name Title
3. State the names of each "board member" of the City of Corpus Christi having an "ownership interest" constituting
3% or more of the ownership in the above named "firm."
Name Board, Commission, or Committee
CERTIFICATE
I certify that all information provided is true and correct as of the dote of this statement, that I have not knowingly
withheld disclosure of any information requested; and that supplemental statements will be promptly submitted to the
City of Corpus Christi, Texas as changes occur.
Certifying Person: Title•
Rrw«r„„t
Signature of Certifying Person: Date•
Corgu5 Christi, Tex
day of
N
, 1983
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance
or resolution, an emergency exists requiring suspension of the Charter rule
as to consideration and voting upon ordinances or resolutions at three
regular meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance or resolution finally on the date it is introduced,
or at the present meeting of the City Council.
Respectfully, Respectfully,
Council Members
MAYOR
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance was passe the following vote:
Luther Jones r.,
Betty N. Turner /b /
Jack K. Dumphy ' i
Bob Gulley /k /,
Herbert L. Hawkins, Jr. / _'
Dr. Charles W. Kennedy
Cliff Zarsky je