HomeMy WebLinkAbout18294 ORD - 06/19/1984AN ORDINANCE
AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT WITH BORDER
AIRLINES, INC. FOR THE OPERATION OF A TRANSPORTATION SYSTEM
BY AIRCRAFT FOR THE CARRIAGE OF PERSONS; PROPERTY, AND
CARGO AT CORPUS CHRISTI INTERNATIONAL AIRPORT; 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 an
11 month lease agreement with Border Airlines, Inc. from July 1, 1984, through
May 31, 1985, for the operation of a transportation system by aircraft for the
carriage of persons, property, and cargo at Corpus Christi International
Airport, 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 need for the
execution of the abovementioned lease agreement so that the services in said
lease can commence at the earliest practicable date, 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 and shall take effect upon first
reading as an emergency measure this the 12th day of June, 1984.
ATTEST:
S LG s �-ALe
"City secretary
APPROVED: Iek DAY OF JUNE, 1984
J. BRUCE AYCOCK, CITY ATTORNEY
i
MAYOR QjO. em
THE CITY OF CORPUS CHRISTI, TEXAS
18294
MICROFILMED
SEP 2 81984
AIRPORT LEASE AGREEMENT
This Agreement made and entered into by and between the City of
Corpus Christi, Texas, a municipal corporation under the laws of the State
of Texas, (hereinafter the "City"), and BORDER AIRLINES, INC., a corpora-
tion organized and existing under the laws of the State of Texas, (herein-
after the "Lessee");
WITNESSETH:
WHEREAS, the City is the owner and operator of the Corpus Christi
International Airport, located in Corpus Christi, Nueces County, Texas
(hereinafter the "Airport");
WHEREAS, Lessee is engaged in the business of transporting
persons, property and mail by air and desires to obtain certain rights,
services and privileges in connection with the use of the Airport and its
facilities; and
WHEREAS, the City is willing to grant unto Lessee certain rights,
services and privileges in connection with the use of the Airport and its
facilities in accordance with the following terms and conditions;
NOW, THEREFORE, for and in consideration of the premises, rentals
and mutual covenants and agreements contained herein, the City and Lessee
agree as follows:
ARTICLE I - PREMISES
A. USE OF THE AIRPORT. The City grants to Lessee the right to use,
in common with others authorized to do so, the Airport and appurtenances,
together with all facilities, equipment, improvements and services which
have been or may hereafter be provided at or in connection with the Airport
for common use in the operation of a transportation system by aircraft for
the carriage of persons, property, cargo, mail and related purposes
(hereinafter referred to as "Air Transportation"), which use, without
limiting the generality thereof, shall include:
(1)
The landing, taking off, loading and unloading of aircraft and only
such incidental repairing, maintaining, conditioning, servicing,
parking or storage of aircraft or other equipment as is reasonably
necessary to operate Lessee's Air Transportation schedules or the Air
Transportation schedules of other scheduled carriers at the Airport.
(Loading and unloading of aircraft, repairing, maintaining,
conditioning, servicing, parking, or storage of aircraft or other
equipment may be performed by Lessee for other users of the Airport
upon such terms, conditions, and such reasonable additional fees as
may be established by the City.)
(2) The loading and unloading of persons, property and mail 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 further right to designate the particular carrier or
carriers who shall or may transport Lessee's employees, passengers,
and their luggage if such transportation is provided at the sole
expense of Lessee.
(3) The purchase at said Airport of Lessee's requirements of gasoline,
fuel, lubricating oil, grease, food, miscellaneous passenger 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 at said
Airport.
(4) The servicing by Lessee, or its suppliers, at convenient locations of
aircraft and other equipment, by truck or otherwise, with gasoline,
oil, grease and any other fuel or other supplies required by Lessee.
(5) The training at the Airport of personnel in the employ of or to be
employed by Lessee and the testing of aircraft and other equipment, it
being understood that such training and testing shall be incidental to
use of the Airport.
(6) The installation and operation of identifying signs at the Airport,
the general type, location, and design of such signs to be subject to
the approval of the City's Airport Director, such approval not to be
arbitrarily withheld.
(7) The installation, maintenance and operation of such radio, communica-
tion, meteorological and aerial navigation equipment and facilities
in, on and about the 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 shall be subject to the approval of
the City's Airport Director, which approval shall not be arbitrarily
withheld.
B. LEASED PREMISES. City hereby leases to Lessee and Lessee hereby
leases from City for Lessee's NON-EXCLUSIVE use, the following described
property:
A Baggage Claim Area consisting of 3,744 square feet
located within the passenger terminal at the Airport
and 4,150 square feet of covered conveyor system which
are more fully described on Exhibit "A" attached hereto
and incorporated herein by reference.
Lessee may use said leased premises with respect to which it is
granted non-exclusive use hereunder subject to reasonable rules and
regulations of the City as to the use of such space and facilities, for any
or all purposes in connection with or incidental to its Air Transportation
services.
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C. PARKING SPACE. The City will provide parking spaces for
employees of Lessee in the terminal complex areas. The City or its agents
may charge such employees a reasonable fee in connection therewith, which
fee shall be based upon amortization of City's capital cost and the City's
maintenance and operating expenses for such parking facilities.
D. RIGHT OF INGRESS AND EGRESS. Lessee shall have the right of
ingress to, and egress from, the premises and facilities referred to in
Article I, Sections "A" and "B" above for Lessee, its employees, agents,
patrons, suppliers of materials, furnishers of services, its equipment,
vehicles, machinery or other property, without charge to Lessee, its
employees, agents, patrons, suppliers of materials, or furnishers of
services or their property except as provided in Article V herein.
ARTICLE II - TERM
The term of this Agreement shall be for a period of eleven months
beginning on the 1st day of July, 1984, and ending on the 31st day of May,
1985, unless sooner terminated as hereinafter provided. In the event that
Lessee should discontinue Air Transportation service at the Airport prior
to the expiration of this Agreement, rentals for the non-exclusive space
shall continue until such time as the City is able to re -lease said space
to another Air Transportation carrier satisfactory to the City or the term
of this Agreement expires, whichever event occurs first; provided, however,
that in no event shall the rentals continue under such circumstances for a
period longer than twelve (12) months. This provision shall not apply to
any discontinuation of services pursuant to Article XIII herein.
ARTICLE III - RENTALS AND FEES
A. RENTALS AND FEES. Lessee agrees to pay to the City for the use
of the premises, facilities, rights, licenses, services and privileges
granted hereunder, rentals in the following amounts per square foot per
annum:
SPACE
BAGGAGE CLAIM AREA
Interior Baggage Claim Space
Covered Conveyor System
July 1, 1984 Aug. 1, 1984
to to
July 31, 1984 May 31, 1985
11.50 12.08
7.00 7.35
Provided that the rentals for the Baggage Claim Area shall be
apportioned and shared by all Air Transportation companies utilizing this
area based upon the following formula: Twenty percent (20%) of the total
rental due shall be shared equally by all users of the area and Eighty
percent (80%) of the total rental due shall be assessed to each user of the
area based upon its total monthly enplanements as a percentage of total
monthly enplanements by all such users. (Any amounts received by the City
for the Baggage Claim Area by non-scheduled charter air carriers shall be
credited to the total rental for Baggage Claim in the month received.)
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Lessee further agrees to pay to the City LANDING FEES in the sum of
$0.665 per 1,000 pounds of approved maximum gross landing weight of each
aircraft used by Lessee in arrivals at the Airport as shown by Lessee's
actual number of arrivals, whether scheduled or not.
B. REPORTS. The Lessee shall report to the City, not later than the
fifth day of each month, the Lessee's actual number of arrivals at the
Airport for the preceding calendar month. The number of arrivals so
scheduled multiplied by the applicable approved maximum gross landing
weight for each type of aircraft shall determine the weight for which the
Landing Fee payments shall be made. The term "approved maximum gross
landing weight" for any aircraft as used herein, shall be the maximum gross
landing weight according to the applicable flight manual approved by the
Federal Aviation Administration for landing such aircraft at the Airport.
The monthly report shall also include the number of total
passengers enplaned during the preceding month, which figures shall be used
in calculating the Lessee's share of certain rentals as provided herein.
C. REMITTANCE. Lessee agrees to remit and pay unto the City the
rentals for the Baggage Claim Area, and the Landing Fees monthly within
thirty (30) days from the date of invoice therefor. In the event that the
reports required in subsection B above are not submitted by the Lessee by
the fifth day of each month as specified, the thirty (30) day payment
period provided herein for the affected monthly billing shall be reduced by
the number of days of such delinquency.
All remittances under this Agreement shall be made payable to the
City of Corpus Christi and directed to the care of the Airport Director,
Corpus Christi International Airport, Route 2, Box 902, Corpus Christi,
Texas 78410, or to such other address as the City may designated to Lessee
in writing.
In the event that Lessee becomes delinquent in the payment of any
of the rentals or fees due hereunder, Lessee agrees to the payment of a
late payment charge equal to five percent (5%) of the delinquent amount;
and on accounts delinquent for more than thirty (30) days, an additional
late payment charge equal to one and one-half percent (11%) of the
delinquent balance may be assessed by the City and charged to Lessee at the
beginning of each additional month of such delinquency. All of such late
payment penalties shall be assessed and payable as additional rentals
hereunder.
In the event that the commencement or termination of the term of
this Agreement with respect to any of the particular premises, facilities,
rights, licenses, services and privileges as herein provided falls on any
date other than the first or last day of a calendar month, the applicable
rentals, fees and charges for that month shall be paid for said month pro
rata according to the number of days in that month during which said
particular premises, facilities, rights, licenses, services and privileges
were enjoyed.
D. LANDING FEE ADJUSTMENT. The Landing Fees shall be adjusted
annually to cover the City's actual costs for the airfield operations at
the Airport in accordance with the following procedure:
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1. On or before March 15 of each year, Lessee agrees to furnish
to the City a written estimate of the total maximum gross
landing weights to be landed at the Airport during the
succeeding year of this Agreement. If such information is
not furnished, the City has the right to prepare such
estimate.
2. On or before July 1 of each year, the City agrees to furnish
to Lessee a written statement of the City's total annual
costs for airfield operations for the City's current fiscal
year, an estimate of such costs for the succeeding fiscal
year, and the rate for Landing Fees to be imposed during the
succeeding year of this Agreement.
The rate for Landing Fees, when applied to the total sums of maximum gross
landing weights estimated for the succeeding year of this Agreement, shall
be calculated to generate an amount equal to the City's estimated annual
cost for airfield operations less twenty-five percent (25%) of the City's
Airport "terminal related concession" revenues, provided that such
deduction shall never exceed $400,000 per year. For the purposes of this
section, the term "terminal related concessions" shall include gift shops,
automobile rentals, limousine services, restaurants, advertising, vending
machines, parking and similar concessions. The method of calculation
stated above can be illustrated by the following formula:
Annual Cost for Airfield - 25% of Concession Revenues - Landing Fee
Estimated Total Maximum Gross Landing Weights
In no event, however, during the term of this Agreement shall the
Landing Fee as calculated herein ever exceed $0.700 per 1,000 pounds of
approved maximum gross landing weight nor shall the Landing Fee ever be
less than $0.550 per 1,000 pounds of approved maximum gross landing weight.
In the event that the procedure outlined above for establishing the rate
for Landing Fees is calculated to generate a rate less than the $0.550 per
1,000 pounds minimum, the City agrees to expend any such excess revenues
provided by assessment of the minimum rate solely for airfield improvements
at the Airport.
E. TAXES AND ASSESSMENTS. Lessee shall pay all taxes and assess-
ments which may be lawfully levied by a duly constituted taxing body upon
Lessee with respect to its operations at the Airport. The City agrees not
to levy any license, permit fee or special assessment, other than the
rentals and fees provided herein, that would restrict or interfere with the
exercise and enjoyment of the rights and privileges granted by this
Agreement; provided that, nothing herein shall be construed to deny the
City the right to levy and collect ad valorem taxes as stated above.
F. MODIFICATIONS OF PREMISES. Lessee agrees that any and all
desired changes or modifications to the leased premises shall be made at
Lessee's expense and only upon written approval by the City. Any
modifications or changes to the leased premises immediately become the
property of the City, and are not subject to removal by the Lessee. Lessee
agrees that any necessary additional fixtures to be constructed at its own
expense shall correspond as nearly as possible with the other fixtures and
trimmings of the leased premises and shall be completed in such a manner as
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not to deface or injure the same. Lessee shall not install any such
fixtures without first having secured the written approval of the City as
to both place of installation and design of the fixtures.
The title to such additional fixtures shall remain in the Lessee
free from any claim of the City, except the lien for payment of the rentals
and fees herein, and upon the expiration of this Agreement said fixtures
may be removed by Lessee, provided that if said fixtures are not removed
within (10) days from the expiration date of this Agreement or its
termination for any other reason, Lessee shall be deemed to have abandoned
to the City any such fixtures, equipment or other property not removed from
the premises within the aforesaid period.
ARTICLE IV - QUIET ENJOYMENT
The City represents and warrants that upon Lessee's payment of
rentals and the performance of the covenants and agreements on the part of
Lessee hereunder, Lessee shall peaceably have and enjoy the leased premises
and all of the rights and privileges of said Airport granted herein. The
City and Lessee covenant and warrant that they have duly authorized,
executed and delivered this Agreement; and that this Agreement constitutes
a valid and binding obligation of City and Lessee, enforceable in accor-
dance with its terms.
ARTICLE V - RIGHT TO PURCHASE SUPPLIES AND MATERIALS
The City agrees that no charges, fees, head taxes, or tolls,
other than herein expressly provided, shall be charged or collected by or
from Lessee or any other persons, including without limitation, passengers,
shippers, and receivers of freight and express packages, suppliers of
materials, contractors, or furnishers of services, for the use or enjoyment
of the facilities, rights, licenses or privileges granted to Lessee by this
Agreement or for the privilege of enplaning, deplaning, transporting,
loading, unloading, or handling persons, property or mail to, from, into,
or at the Airport in connection with Lessee's Air Transportation services.
Lessee shall have the right to purchase at the Airport its supplies from
any person or company of its choice, and no charges, fees or tolls of any
kind except as herein expressly set forth shall be charged by the City,
directly or indirectly, against Lessee or its suppliers for the privilege
of buying, selling, using, withdrawing, handling, consuming or transporting
the same to, from, or at the Airport. The foregoing shall not prevent the
City, however, from requiring and issuing business licenses generally
imposed by the City upon businesses of like character, from entering into
leases for space at the Airport or levying charges for parking, from
entering into concession agreements with respect to concessions at the
Airport and receiving fees, rentals or other charges in connection
therewith.
ARTICLE VI - MAINTENANCE AND OPERATIONS BY CITY
Except as otherwise specifically provided herein, the City during
the term of this Agreement shall operate, maintain and keep in good repair
the Airport, terminal building, vehicular parking spaces, and all
appurtenances, facilities and services now or hereafter connected with the
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foregoing (including all airfield lighting and other appurtenances,
facilities and services) which the City has agreed to furnish and supply
hereunder; provided, however, that City shall not be required to perform
maintenance and make repairs occasioned by the negligence of Lessee or its
employees. In the case of such negligence, the City may perform such
maintenance or make such repairs and charge the reasonable cost of same to
Lessee. The City reserves the right to abandon certain facilities which
are no longer reasonably justified for proper and adequate operation of the
Airport. The City further agrees to keep the Airport free of obstructions
(including the clearing and removal of grass, stones, or other foreign
matter, as reasonably necessary and with reasonable promptness, from the
runway, taxiway and loading areas) for the safe, convenient and proper use
of the Airport, and shall maintain and operate the Airport in all respects
in a manner at least equal to the highest standards or ratings issued by
the Federal Aviation Administration for airports of substantially similar
size and character, provided that nothing herein contained shall be deemed
to require the City to enlarge the Airport or to make extensions or
additions to the landing area, runway, taxiway,. or other appurtenances of
the Airport.
It is expressly understood that the City will keep the public
space in the terminal building attractively furnished and will provide and
supply the following: adequate water for the public space and Lessee's
exclusive space in the terminal building; heat during cold weather and
cooling during warm weather sufficient to keep the building at a reasonable
temperature; janitors and other cleaners necessary to keep the Airport and
the space in the terminal building at all times clean, neat, orderly,
sanitary and presentable; and such other personnel as may be necessary to
facilitate the use of the Airport and terminal building and the
appurtenances, facilities and services as aforesaid by anyone hereunder
entitled to use the same. The City at its expense will provide lights and
electricity for public space in the terminal building.
ARTICLE VII - MAINTENANCE AND OPERATIONS BY LESSEE
Lessee hereby accepts the premises in their condition at the
commencement of this Agreement and agrees to maintain said premises in the
same condition, order and repair, excepting only reasonable wear and tear
arising from the use thereof under this Agreement, and to compensate the
City immediately upon demand for any damage to said premises caused by any
act or negligence of Lessee or of any person or persons in the employ or
under the control of the Lessee. It is understood and agreed that no signs
or advertising and no awnings shall be erected on or in connection with the
premises leased hereunder, unless the same shall be first submitted to and
approved by the City's Airport Director.
Lessee at its expense will provide lights and electricity for its
exclusive space and Passenger Holdroom in the terminal building and
electricity for use in the operation of radio and other equipment, such
electricity to be separately metered and paid for at the then current rates
for business uses. The City shall invoice Lessee monthly for such
electricity.
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ARTICLE VIII - GOVERNMENTAL FACILITIES
The City covenants and agrees that if it should furnish space and
facilities in the terminal building of the Airport for the use of any
governmental agency or department requiring space therein, such space and
facilities shall be furnished without charge to Lessee.
ARTICLE IX - RULES AND REGULATIONS
The City shall have the right to adopt and enforce reasonable
rules and regulations, which Lessee agrees to observe and obey, with
respect to the use of the Airport and appurtenances; provided that such
rules and regulations shall not be inconsistent with this Agreement nor
with the rules, regulations and orders of the Federal Aviation
Administration with respect to aircraft operations at the Airport. The
City shall provide Lessee with a copy of such rules and regulations.
ARTICLE X - DAMAGE OR DESTRUCTION OF PREMISES
In the event the premises shall be partially damaged by fire,
explosion, the elements, the public enemy or other casualty, but not
rendered untenable, the same shall be repaired with due diligence by City
at its own cost and expense. If the damage shall be so extensive as to
render such premises untenable but capable of being repaired within thirty
(30) days, the same shall be repaired with due diligence by City at its own
cost and expense, and rent payable hereunder shall be proportionately
abated up to the time as the premises shall be fully restored. In case the
premises are completely destroyed by fire, explosion, the elements, the
public enemy or other casualty, or so damaged that such premises will or do
remain untenable for more than thirty (30) days, the City shall be under no
obligation to repair and reconstruct the premises, and the rentals payable
hereunder shall be proportionately paid up to the time of such damage or
destruction and shall thenceforth cease until such time as the premises may
be fully restored. If within ninety (90) days after such damage or
destruction the City fails to notify Lessee of its intention to repair or
reconstruct the damaged or destroyed premises or to furnish a substantially
equivalent facility, Lessee may give City written notice of its intention
to then cancel this Agreement in its entirety or to cancel, as of the date
of such damage or destruction, such part of this Agreement as relates to
said premises.
ARTICLE XI - DEFAULT
In the event Lessee fails to timely pay any rentals or fees
hereunder as and when the same shall become due and payable and does not
cure such default within fifteen (15) days after written notice thereof,
Lessee shall be deemed to be in default under this Agreement. Upon such
default the City may immediately or at any time thereafter terminate this
Agreement without further notice, enter upon the leased premises or any
part thereof, repossess the same as the City's former estate, expel Lessee
and any persons claiming possession of the premises by or through Lessee,
and remove any of Lessee's personal property or fixtures then remaining
without being guilty of trespass and without prejudice to any remedy which
otherwise may be pursued by the City. The City reserves the right upon
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such termination to demand payment from Lessee for any arrearages in the
rentals due hereunder and for such rentals which would have accrued under
continuation of this Agreement for so long as the leased premises remain
unoccupied or until the expiration date hereof, but in no event longer than
twelve (12) months. In the event the City is obligated to pursue or
participate in any court proceedings in order to enforce its remedies
hereunder, the City shall be entitled to recovery of its reasonable
attorneys' fees if it is the prevailing party.
In the event Lessee fails to perform any other covenants or
obligations required by this Agreement and shall not cure such failure
within thirty (30) days after written notice thereof, Lessee shall be
deemed to be in default under this Agreement and the City shall have the
right to exercise the same remedies described above; provided, however,
that in the case of a default which cannot reasonably be cured within such
thirty (30) day period Lessee shall be entitled to an additional reasonable
period of time if Lessee has with reasonable diligence commenced to cure
such default and is diligently pursuing such cure.
ARTICLE XII - CANCELLATION BY CITY
The City may cancel this Agreement by giving Lessee sixty (60)
days advance written notice upon or after the happening of any one of the
following events:
a. The filing by Lessee of a voluntary petition in
bankruptcy.
b. The institution of proceedings in bankruptcy
against Lessee and adjudication of Lessee as a
bankrupt pursuant to such proceedings.
c. The taking of jurisdiction by a court over Lessee
and its assets pursuant to proceedings brought
under the provisions of any federal
reorganization act.
d. The appointment of a receiver of Lessee's assets.
e. The divestiture of Lessee's estate herein by other
operation of law.
f. The abandonment by Lessee of its conduct of Air
Transportation services at the Airport.
The lawful assumption by the United States
Government or any authorized agency thereof of the
operation, control, or use of the Airport and
facilities, or any substantial part or parts
thereof, in such manner as substantially to
restrict Lessee for a period of at least ninety
(90) days from operating thereon an Air
Transportation service.
g.
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No waiver of default by the City of any of the terms, covenants
or conditions hereof to be performed, kept and observed shall be construed
to be or act as a waiver of any subsequent default of any of the terms,
covenants and conditions herein contained to be performed, kept and
observed by the Lessee, and no such waiver of default shall be deemed a
waiver of any right on the part of the City to cancel this Agreement for
failure by Lessee to so perform, keep or observe any of the terms,
covenants or conditions of this Agreement.
ARTICLE XIII - CANCELLATION BY LESSEE
Lessee may cancel this Agreement any time that Lessee is not in
default in its payments to City hereunder by giving City sixty (60) days
advance written notice upon or after the happening of any one of the
following events:
a. Issuance by any court of competent jurisdiction of
an injunction in any way preventing or restraining
the use of the Airport or any part thereof for
airport purposes, and the remaining in force of
such injunction for a period of at least ninety
(90) days.
b. The inability of Lessee to use, for a period in
excess of ninety (90) days, the Airport or any of
the premises, facilities, rights, licenses,
services or privileges leased to Lessee hereunder,
because of fire, explosion, earthquake, other
casualty, or acts of God or the public enemy,
provided that same is not caused by negligence,
willful acts or failure to act on the part of
Lessee.
c. The default by the City in performance of any
covenant or agreement herein required to be
performed by the City and the failure of City to
remedy such default for a period of ninety (90)
days after receipt from Lessee of written notice
to remedy same; provided, however, that no notice
of cancellation, as provided above, shall be of
any force or effect if City shall have remedied
the default prior to receipt of Lessee's notice of
cancellation or is diligently pursuing such
remedy.
d. The lawful assumption by the United States
Government or any authorized agency thereof of the
operation, control or use of the Airport and
facilities, or any substantial part or parts
thereof, in such a manner as substantially to
restrict Lessee, for a period of at least ninety
(90) days, from operating thereon for the
conducting of an Air Transportation business.
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e. The failure or default of the Texas Aeronautics
Commission, if applicable, to grant Lessee the
right to operate into and from said Airport or the
issuance by Texas Aeronautics Commission of final
orders of suspension, termination or revocation of
the Lessee's authority to provide service at the
Airport.
Lessee's performance of all or any part of this Agreement for or
during any periods after default by the City shall not be deemed a waiver
of any right on the part of the Lessee to cancel this Agreement for such
default by City. Nor shall any waiver of default by Lessee of any of the
terms, covenants or conditions hereof to be performed, kept and observed by
City be construed to be or act as a waiver by Lessee of any subsequent
default of any of the terms, covenants and conditions herein contained to
be performed, kept and observed by the City.
ARTICLE XIV - INDEMNITY AND INSURANCE
Lessee agrees fully to indemnify, save and hold harmless, the
City, its agents and employees, from and against all claims and actions,
and all expenses incidental to the investigation and defense thereof, based
upon or arising out of damages or injuries to person or property caused by
the negligence or fault of Lessee, its agents or employees, in the use or
occupancy of the said leased premises by Lessee; provided, however, that
Lessee shall not be liable for any injury or damage or loss occasioned by
the negligence of the City, its agents or employees. City agrees to give
to Lessee prompt and reasonable notice of any such claims or actions, and
Lessee shall have the right to investigate, compromise and defend the same.
Lessee agrees to carry, and keep in force, comprehensive general
liability insurance covering personal injury and property damage, and such
other insurance as may be necessary to protect the City herein from such
claims and actions aforesaid, naming the City as an insured. Lessee agrees
to carry and keep in force such insurance with minimum limits of liability
for personal injury in a sum not less than $15,000,000 for any one person,
and $15,000,000 for any one occurrence, and for property damage in a sum
not less than $15,000,000; and to furnish the City with proper certificates
certifying that such insurance is in full force and effect. Lessee shall
carry such insurance coverages with insurance companies authorized to do
business in the State of Texas.
All personal property placed or moved in the premises above
described shall be at the risk of the Lessee or owner thereof, and the City
unless such loss or damage is due to the sole negligence or fault of City,
its agents or employees shall not be liable for any loss of or damage to
said personal property nor shall the City be liable to the Lessee for
damages arising from any act of negligence of any co -tenant or of any other
person whomever.
ARTICLE XV - SURRENDER OF POSSESSION
Upon the expiration or other termination of this Agreement,
Lessee's right to use the premises, facilities, rights, licenses, services
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and privileges herein leased shall cease and Lessee shall forthwith upon
such expiration or termination surrender the same.
ARTICLE XVI - DEFINITION OF TERMS
Whenever the term "Federal Aviation Administration" is used in
this Agreement, it shall be construed as referring to the Federal Aviation
Administration created by the federal government under the Federal Aviation
Act of 1958, or to such other federal governmental authority as may be the
successor thereto or to be vested with the same or similar authority.
Whenever the terms "person" and "persons" are used in this
Agreement, they shall be construed as including individuals, firms,
corporations and other legal entities. When in this Agreement written
approval by City is required such written approval may be given by the
City's Airport Director.
ARTICLE XVII - INSPECTION BY CITY
The City may enter upon the premises now or hereafter leased
exclusively to Lessee 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.
ARTICLE XVIII - ASSIGNMENT AND SUBLETTING
Lessee shall not at any time assign this Agreement or any part
thereof, nor sublet all or any portion of the leased premises herein;
provided that the foregoing shall not prevent the assignment of this
Agreement to any corporation with which Lessee may merge or consolidate, or
which may succeed all or any portion of the business of Lessee.
ARTICLE XIX - NON-DISCRIMINATION CLAUSE
The Lessee in exercising any of the rights or privileges herein
granted shall not on the grounds of race, color, sex or national origin
discriminate or permit discrimination against any person or groups of
persons in any manner prohibited by Part 15 of the Federal Aviation
Regulations, and the City is hereby granted the right to take such action
as the United States may direct to enforce this non-discrimination
covenant.
ARTICLE XX - PARAGRAPH HEADINGS
The paragraph headings contained herein are for convenience of
reference and are not intended to define or limit the scope of any
provision of this Agreement.
ARTICLE XXI - SEVERABILITY
In the event any covenant, condition or provision herein
contained is held to be invalid by any court of competent jurisdiction, the
invalidity of any such covenant, condition or provision shall in no way
affect any other covenant, condition or provision herein contained;
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provided that, the invalidity of such covenant, condition or provision does
not materially prejudice either City or Lessee in its respective rights and
obligations contained in the valid covenants, conditions or provisions of
the Agreement.
ARTICLE XXII - COVENANT NOT TO GRANT MORE FAVORABLE TERMS
The City covenants and agrees not to enter into any lease,
contract or agreement with any other Air Transportation company with
respect to the Airport containing more favorable terms than this Agreement
or to grant to any other Air Transportation company rights, privileges or
concessions with respect to said Airport which are not accorded the Lessee
hereunder unless the same terms, rights, privileges and concessions are
concurrently made available to the Lessee. (The length of any lease
agreement entered into by the City is hereby excepted from the provisions
of this Article XXII.) In the event an Air Transportation company shall be
allowed to use the space, facilities or any services of the Airport without
executing an agreement substantially identical to this Agreement, such Air
Transportation company shall be required to pay to the City a compensatory
rental fee or charge which is at least 125% of the then current rentals,
fees or charges assessed Lessee under this Agreement.
ARTICLE XXIII - SUCCESSORS BOUND BY COVENANTS
All the covenants, stipulations and agreements in this Agreement
shall extend to and bind the lawful representatives and successors of the
respective parties hereto.
ARTICLE XXIV - NOTICES
Notices to the City provided for herein shall be sufficient if
sent by certified or registered mail, postage prepaid, address to:
Airport Director
Corpus Christi International Airport
Route 2, Box 902
Corpus Christi, Texas 78410
and notice to Lessee, if sent by certified or registered mail, postage
prepaid, addressed to:
Border Airlines, Inc.
or to such other respective addresses as the parties may designate to each
other in writing from time to time.
ARTICLE XXV - INTERPRETATION OF AGREEMENT
Nothing in this Agreement shall be construed or interpreted in
any manner whatsoever as limiting, relinquishing or waiving any rights of
ownership enjoyed by the City in the Airport, or in any manner waiving or
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limiting its control over the operation, maintenance, and control of the
Airport or in derogation of such governmental rights as the City possesses,
except as is specifically provided for herein.
ARTICLE XXVI - PERFORMANCE BOND/LETTER OF CREDIT
Lessee agrees to furnish within 15 days from the effective date
of this Agreement a performance bond or a letter of credit in the principal
amount of $1,200. This performance bond or leeter of credit shall
guarantee the payment of landing fees, terminal fees, and lessee's other
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
shall be kept in full force and effect during the term hereof.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed in duplicate originals as of this day of
19
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
By: By:
Bill G. Read, City Secretary
APPROVED AS TO LEGAL FORM:
This day of , 19
J. BRUCE AYCOCK, CITY ATTORNEY By:
By:
Assistant City Attorney
Edward A. Martin, City Manager
Assistant City Manager
LESSEE:
BORDER AIRLINES, INC.
By:
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Name
Title
Corpus Christi, Te,
jgJ1._day of
, 198
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
0,_
MvoR rro• em
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance was passed
Luther Jones
Betty N. Turner
David Berlanga,.Sr.
Welder Brown
Leo Guerrero
Dr. Charles W. Kennedy
Joe McComb
Frank Mendez
Mary Pat Slavik
y the following vote:
18294