HomeMy WebLinkAbout18887 ORD - 06/18/1985AN ORDINANCE
AUTHORIZING THE EXECUTION OF A LEASE RENEWAL WITH TEXAS
NATIONAL AIRLINES, INC. FOR THE OPERATION OF AIR
TRANSPORTATION SERVICE AT CORPUS CHRISTI INTERNATIONAL
AIRPORT FOR A PERIOD OF EIGHT MONTHS EFFECTIVE JUNE 1, 1985;
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 renewal with Texas National Airlines, Inc. for the operation of air
transportation service at Corpus Christi International Airport for a period of
eight months effective June 1, 1985, all as more fully set forth in the
lease renewal, 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 of
executing the abovementioned lease renewal 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 18th day of June, 1985.
ATTEST:
81116°
C t Secretary MAYOR
THE CIT F CORPUS CHRISTI, TEXAS
APPROVED: igthi DAY OF JUNE, 1985
Jay Doegej ' .istan'\ ;e 'ttorney
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own MICROFILMED
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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 Texas National Airlines, formerly Border Airlines,
Inc., a corporation organized and existing under the laws of the State of Texas,
(hereinafter 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
Ex. A
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(3)
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.
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,
communication, 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 EXCLUSIVE use, the following described property:
A Ticket Counter Area consisting of 80 square feet located
at the passenger terminal building at the Airport and more
fully described by Exhibit "A" attached hereto and
incorporated herein by reference.
Provided, however, said Ticket Counter Area's use shall be NON-EXCLUSIVE if
during any calendar month during the term hereof no landing fees are incurred or
paid by Lessee and this lease has not terminated.
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
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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 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.
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 eight months beginning
on the 1st day of June, 1985, and ending on the 31st day of January, 1986,
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:
June 1, 1985 August 1, 1985
SPACE to to
July 31, 1985 January 31, 1986
TICKET COUNTER SPACE 13.13 13.78
BAGGAGE CLAIM AREA
Interior Baggage Claim Space 12.08 12.68
Covered Conveyor System 7.35 7.72
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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.)
Lessee further agrees to pay to the City LANDING FEES in the sum of $0.700
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 designate to the Lessee in writing.
In the event that Lessee becomes delinquent in the payment of any of the
rentals or fees due hereunder, Lessee shall pay a late payment charge equal to
one and one-half percent of the delinquent payment. Past due rental or fees
payments shall bear interest at the rate of ten percent (10%) per annum.
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
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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:
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 assessments
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.
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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 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 accordance 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. Lesssee 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
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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 herafter connected with the 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.
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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.
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 Lesssee.
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 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
(including payment of late charges and accrued interest) within fifteen (15)
days after written notice thereof, Lessee shall be deemed to be in default under
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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
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 due to the inability to
cure by reason of occurrence, hindrance, or delay beyond Lessee's control then
such thirty (30) day period may be extended upon written request of Lessee to
the Airport Director for such additional period as reasonably required to cure
such default, provided Lessee is diligently proceeding to cure. In no event may
such time to cure be longer than one hundred eighty (180) days following
Lessee's receipt of the notice of default.
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.
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9.
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.
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.
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
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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 solely 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
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, and privileges
herein leased shall cease and Lessee shall forthwith upon such expiration or
termination surrender the same.
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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 without the written
consent of the City.
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; 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.
03P.040.01
•
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 representative 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, addressed 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:
Texas National Airlines
6800 Park Ten Blvd. Suite 200 N.
San Antonio, Texas 78213
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 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.
03P.040.01
•
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 letter of credit shall guarantee the payment
of landing fees, terminal fees, 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 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 , 1985.
ATTEST: CITY OF CORPUS CHRISTI, TEXAS
By: By:
Armando Chapa, City Secretary Edward A. Martin, City Manager
APPROVED AS TO LEGAL FORM:
THIS DAY OF
, 1985
By:
Jay Doegey, Assistant City Attorney James K. Lontos,
Assistant City Manager
ATTEST: LESSEE:
TEXAS NATIONAL AIRLINES
By: By:
Name Name
Title Title
03P.040.01
•
Corpus Christi, T s
/ri day of L , 198.5--
TO
985
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
/ /
Rte/
THE C OF CORPUS CHRISTI, TEXAS
The above ordinance was passed by the following vote:
Luther Jones
Dr. Jack Best
David Berlanga, Sr.
Leo Guerrero
Joe McComb
Frank Mendez
Bill Pruet
Mary Pat Slavik
Linda Strong
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