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HomeMy WebLinkAbout19143 ORD - 12/31/1985• AN ORDINANCE AUTHORIZING THE EXECUTION OF A FIVE-YEAR LEASE WITH THE CORPUS CHRISTI ART FOUNDATION CONCERNING THE ART MUSEUM OF SOUTH TEXAS BUILDING. 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 five-year lease of the Art Museum of South Texas Building to the Corpus Christi Art Foundation, all as more fully set forth in the lease agreement, a substantial copy of which is attached hereto and made a part hereof, marked Exhibit "A". 19143 MICROFILMED • • LEASE AGREEMENT THE STATE OF TEXAS COUNTY OF NUECES The City of Corpus Christi, a municipal corporation, hereinafter called "City", having received conveyance of a building for a Public Art Museum from the Corpus Christi Art Foundation, and said Foundation having operated the Art Museum of South Texas under an original lease dated February 18, 1970 and amended March 19, 1973, and a subsequent lease dated October 2, 1979, for the public, and with suitable programs and functions, does hereby lease and let unto Corpus Christi Art Foundation, a nonprofit Texas corporation, hereinafter called "Foundation", for the period of time and under the terms hereinafter set forth: I. This agreement covers the building located in the Bayfront Arts and Science Park known as the Art Museum of South Texas. II. Whenever used in this agreement, the following terms shall have the meanings ascribed to them as set forth in this paragraph, to—wit: A. Foundation shall mean the Corpus Christi Art Foundation, a nonprofit Texas Corporation. B. City shall mean the City of Corpus Christi, a municipal corporation. C. City Council shall mean the City Council of the City of Corpus Christi. D. City Manager shall mean the City Manager of the City of Corpus Christi. E. Museum shall mean the Art Museum of South Texas and its successor. - 1 - • • As consideration for performance by the Foundation, in compliance with the covenants and agreements hereinafter set forth regarding the providing of functions, programs and events within the Museum by or under the auspices of the Foundation, the City hereby covenants and agrees to provide certain services and/or funds of the nature and in the manner as hereinafter set forth and to permit the Foundation to use the Museum in accordance with the terms and conditions of this contract and any extensions, renewals or additions thereof; and as consideration for the use of the Museum and the providing of said services and/or funds by the City, the Foundation hereby covenants and agrees to operate and manage the Museum in accordance with the terms and conditions of this contract and to provide or authorize and supervise the providing of functions, programs and events therein involving art activities, art education, and similar cultural functions in the manner as hereinafter set forth. IV. A. The City agrees to provide and pay the cost of fire and extended coverage insurance on the structure of the building as part of the City's self-insurance program. These services will be provided by the City and paid for directly by the City. B. City will pay to Foundation an agreed maximum sum each fiscal year toward the cost of providing janitorial services, interior and exterior maintenance services, utility services (including electricity, water, sewage collection, gas and garbage collection, but excluding telephone); security services; fire and extended insurance coverage on the building and improvements. Maintenance services will be limited to the care and upkeep of the premises and the area surrounding the Museum, the operation and maintenance of ventilation system, including both heating and cooling facilities; the maintenance of mechanical and electrical equipment which is a part of the Museum; and the maintenance of the physical structure of the Museum. Security services and janitorial services shall include labor, equipment and supplies needed to provide said services. C. The amount to be paid by the City to the Foundation shall be as adopted by the City Council in the approved City fiscal year budget. When the City has paid the budgeted amount for the above services and expenditures, it shall have no other obligation to the Foundation for maintenance, utilities, insurance, custodial, or security expenditures except expenditures for maintenance of the grounds beyond the outside walls for which the City shall be directly responsible. The City will not reimburse the Foundation should it incur expenditures for outside ground maintenance without prior approval of City. - 2 - • • D. The Foundation shall submit annually its budget request, according to the City's regular budget procedure. The request will be subject to the usual review and appropriation process. The Foundation will submit requests for payment monthly in the amount of one -twelfth of the annual budget and City shall pay such requested amounts until the total appropriation for payment to the Foundation for the particular fiscal year has been expended. Each such request for reimbursement shall be approved by an officer of the Foundation or an employee authorized in writing by the Foundation to submit such requests. E. The City Council may, at its discretion, provide additional funds to assist in the carrying out of functions, programs, and events within the Museum by or under the authorization of the Foundation in accordance with the spirit and terms of this contract. V. Any furnishings and special equipment in the building, including but hot limited to display lighting, which furnishings and equipment are used in functions, programs, and events in the Museum shall, at the discretion of the Foundation, be provided by the Foundation or by other private sources approved by the Foundation, and same shall be maintained by or under the authorization and direction of the Foundation in a manner satisfactory to the City. The Foundation shall have the right to remove from the Museum, or to authorize and direct the removal of, all personal property not belonging to or under the custody, care, or control of the City unless such personal property is attached to the Museum in such manner that the removal of same would damage the building, in which latter event said attached personal property shall become the property of the City and shall not be removed from the Museum by or under the authorization and direction of the Foundation except with written consent of City Manager. All personal property which shall become a part of the Museum, and therefore the property of the City in the manner described in the preceding sentence, and all personal property of any nature, regardless of ownership which is or may be placed in the Museum temporarily or permanently and which is not maintained by the City in accordance with Paragraph IV hereof, shall be maintained by or under the authorization and direction of the Foundation in a manner satisfactory to the City. No property owned by or under the care, custody, control of the City shall be sold or otherwise disposed of by or under the authorization or direction of the Foundation. Neither the making of any structural alterations to the Museum, the construction of additions to the Museum nor the construction of additional buildings on City property shall be done by or under the authorization or direction of the Foundation - 3 - • without the prior written approval of the City Council. VI. The Foundation agrees to operate the Museum for the benefit of the general public and agrees that the general functions, programs, and events held, conducted and/or presented therein by or under the authorization of the Foundation shall be open and available for the attendance of and/or participation by the general public. The Foundation welcomes the participation and support of the general public and stipulates that any and all law-abiding residents of South Texas are eligible for membership. In operating the Museum, the Foundation shall have complete control over the planning, execution and presentation of all functions, programs, and events. Functions, programs, and events exclusively for members of the Foundation and/or for members of similar cultural organizations may be held, conducted or presented in the Museum by or under the authorization of the Foundation only at such times and only in such manner as not to interfere with the operation of the building for the benefit of the public during normal opening hours. VII. The facilities of the Museum may be used by the City for meetings and similar functions and without payment therefor to Foundation provided such meetings and functions do not conflict with prior commitments made by the Foundation under and in accordance with this contract. In addition, it is, of course, understood that qualified City officials or employees shall have the right to enter, examine, and inspect all portions of the Museum at all reasonable times. As used in the preceding sentence, the term "qualified City officials or employees" shall mean the Mayor and other members of the City Council, the City Manager, and other City officials or employees as may be authorized by the City Council or the City Manager. VIII. The Foundation shall have the right to authorize individuals, groups of individuals, or organizations to use portions of the Museum for a purpose or purposes for which the Foundation is herein authorized to use the Museum, including the use of portions of the Museum for office purposes. All of said use by said individuals or organizations shall.be subject to and in accordance with the spirit and terms of this contract and shall be under the direction and supervision of the Foundation. - 4 - • The Foundation shall not enter for longer than ninety (90) days into any written contract or agreement, including any concession contract or agreement, regarding the operation or use of the Museum without the prior written consent of the City Manager or City Council. In the ordinary course of providing or authorizing functions, programs, and events under and in accordance with this contract the Foundation may, without the prior consent thereto of the City Council, enter into written contracts and agreements of a routine nature and of less than 90 days duration, with such contracts and agreements being in accordance with and subject to the terms and provisions of this contract. For all purposes incident to the obligations, covenants and agreements of the Foundation contained in this contract, use of the Museum by said individuals, groups of individuals or organizations under the authorization, supervision, and direction of the Foundation shall be deemed to be the use of the Museum by the Foundation. Ix. The Foundation hereby binds and obligates itself to comply with all local, state and federal rules, ordinances, laws, regulations, and the provisions of the Charter of the City in the operation and management of the Museum and in all functions, programs and events held, conducted or presented in the Museum. In addition, the Foundation agrees to require all individuals, groups of individuals, and organizations using the Museum in accordance with Paragraph VIII hereof to comply with all local, state and federal rules, ordinances, laws, regulations and the provisions of the Charter of the City in using the Museum and in holding, conducting, or presenting functions, programs and events therein. X. The Foundation shall carry with an insurance company or companies satisfactory to the City a comprehensive general liability insurance policy covering bodily injury and property damage in reasonable amounts as approved by the City. Said policy shall be so written as to name the City as additional insured. The Foundation shall also adequately insure all property, excluding the building, for which it is custodian or trustee so as to protect itself from claims which might arise from the loss, damage to, or destruction of said property. xI. The Foundation hereby covenants and agrees to assume all risks of whatsoever kind or character incident to or arising out of the use, occupancy, or management and operation of the Museum by the Foundation under this contract and does hereby covenant and agree to defend, indemnify, and hold harmless the City, its - 5 - • agents, officers, servants, and employees, from and against any and all suits, claims for damages, or injuries to persons or property, whether real or asserted, arising out of both bodily injury accidents and property damage accidents to the public, invitees, or guests or resulting, directly or indirectly, from the use and occupancy of the Museum by or under the authorization of the Foundation. The Foundation covenants and agrees not to assert against the City any immunity or exemption (statutory or otherwise) from and against liability for damage or injury to property or persons. and the Foundation hereby expressly waives any such right to plead or otherwise set up defensively such immunity or exemption as against the City. XII. The Foundation covenants and agrees that during the life of this contract it shall procure and maintain in effect individual fidelity bonds to indemnify the City against loss resulting from misfeasance or nonfeasance of each officer, member and/or employee of the Foundation who receives, handles and/or disburses money in any form and in any manner for or on behalf of the Foundation, such bonds being subject to the approval of the City as to term and conditions, amounts of coverage, and company from which purchases. XIII. The Foundation agrees to keep and maintain, in a manner recommended by a C.P.A., acceptable to the City adequate books and records showing its receipts and disbursements. In addition, the Foundation agrees to have an audit and report thereof of such books and records made each year by an auditor who is independent of the management or board of the Foundation but who may be a member of the Foundation, and to furnish the City Department of Finance with a copy of the report of such audit each year, certified as to truth and accuracy by the auditor making same. Such audit report shall include, but not be limited to, a balance sheet and a complete statement of receipts and disbursements for the preceding year. XIV. The Foundation may make or authorize the making of reasonable admission, attendance, or -tuition charges for attendance at and/or participation of the Foundation in the Museum, and may make reasonable charges to individuals, groups of individuals or organizations for their use of the Museum. Also, the Foundation may make or authorize the making of reasonable charges for any items sold at the Museum ih connection with activities therein. The admissions, dues, rentals, and other charges referred to in this Paragraph XIV shall be deemed to be - 6 - • • reasonable so long as they are within the range of charges made by other similar Museums located in Texas for similar purposes and apply to all individuals or groups without discrimination. A schedule of such charges shall be approved by the Foundation, available to the public on request. Such funds as may be realized by the Foundation from charges made in accordance with this Paragraph shall be used by the Foundation in the operation, development, and management of the Museum and its resources. XV. It is further understood and agreed by and between the parties hereto that this contract shall be binding upon the successors and assigns of the parties hereto, but no assignment by the Foundation shall be valid without the prior written approval of the City Council. XVI. In case of any breach by the Foundation, or by an individual, groups of individuals, or organizations acting under the authorization of the Foundation of any of the obligations, covenants, or agreements contained in this contract, the City Council shall have the right to terminate this contract and agreement at any time after it shall have given the President of the Foundation written notice of its intent to terminate and allowed at least forty-five (45) days following the giving of such notice of the situation causing such notice to be given to be corrected. It is provided, however, that the City Council shall have the right to terminate this contract and agreement immediately upon a finding by it of the termination of the corporate existence, or the bankruptcy or the insolvency of the Foundation. The Foundation covenants and agrees that upon the termination of this contract for any reason, including the expiration of the term hereof, (i) the Foundation, its officers, agents, servants, and employees shall immediately quit and vacate the premises of the Museum; (ii) the Foundation shall cause those individuals, groups of individuals or organizations who may be using the Museum under the authorization of the Foundation to quit and vacate the premises of the Museum; and (iii) the Foundation shall remove or cause to be removed from the Museum all personal property not belonging to or under the care, custody, and control of the City, excepting such personal property as may have become a part of the Museum in accordance with Paragraph V hereof. The Foundation hereby expressly waives any right to contest or in any way defend against the right of the City, upon such termination or expiration of this contract and agreement, to require the Foundation to comply with the covenant and agreement in the preceding sentence hereof. XVII. - 7 - • • This contract contains all of the provisions agreed upon by the parties hereto and displaces all previous verbal or oral agreements. This contract shall be construed as a contract concerning a gift to the City of Corpus Christi, and all of the real property improvements shall be the property of the City except where herein specifically excluded. City Council agrees that during the period this lease is in force it will, upon request of the Foundation, submit for approval of the voters of the City on the same day that other elections are scheduled, a lease containing similar terms and conditions as those herein set forth for a period of thirty (30) years. XVIII. This lease shall be for a term of five (5) years, beginning March 1,. 1986, and expiring February 28, 1991. This contract is executed in duplicate originals at Corpus Christi, this the day of ATTEST: CITY OF CORPUS CHRISTI City Secretary APPROVED: DAY OF , 1985 By: Assistant City Attorney BY: Edward A. Martin, City Manager — Assistant City Manager ATTEST: CORPUS CHRISTI ART FOUNDATION Secretary - 8 - BY: That the foregoing ordinance s, read for second reading on this the pday of following vote: Luther Jones Dr. Jack Best David Berlanga, Sr. Leo Guerrero e firs/ t Joe McComb Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong • andssed to its , 196,- , by the That the foregoing oingordinancenwa4 read for secon time and assed to its 19 third readingd on this the -dr day of ( Ar , 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 That the foregoing ordinan as red for the third time and passed finally on this thea/2+ day of ,(,�/�y 19 PS, by the following vote: Luther Jones Dr. Jack Best David Berlanga, Sr. Leo Guerrero PASSED AND APPROVED, this the ATTEST: Joe McComb Frank Mendez Bill Pruet Mary Pat Slavik Linda Strong day of ,198 C t y Secreta-�`y MAYOR _ ����JJJJ THE C OF CORPUS CHRISTI, TEXAS APPROVED: 24ADAY OF Ayov�.. b� 19 SS 19143 PUBLISHER'S AFFIDAVIT An ##L#) 31308 CITY OF C.C./CITY SECRETARY STATE OF TEXAS, L . County' of Nueces. J - Before me, the underaigoed, a Notary Public. Ibis day peisouafy romp MARGARET RAMAGE who being Bret duly sworn, according to law. says that he is the COMMUNITY RELATIONS SUPERVISOR of the Corpus Christi Caller and The Corpus Christi Time$, Daily Newspapers published at Corpus Christi, Texas,, in said County and State, and that the publication of NOTICE OF PASSAGE OF ORDINANCE ON SECOND READING of which the annexed is a true copy, was pnhliahed in Caller -Times Pub. CO. on the 9th day of. DGembez 199...., and once pni4 riay thereafter for ons consecutive _ da ONE Mmes. 27.60 MARGARET RAMAGE Subscribed and sworn to before me this 10th EUGENIA S. CORTEZ 6-30-89 �ag101112 ^1 CFC 1985 00 , . 04, -�..w.aa,a9,erAin.- 11C1 -NOTICE OF PASSAGE OF OR- S OINANCE ON - SECOND 9 READING Jf AUTHORIZING THE EXECU- te TION OF A 'NE -YEAR LEASE WITH THE CORPUS CHRISTI ART FOUNDATION CON- CERNING TIC ART MUSEUM OF SOUTH'EXAS BUILDING: WITH THE CITY TO PROVIDE _ IB CERTAIN SERVICES AND/OR FUNDS AS SET FORTH IN THE AGREEMENT. r. Was passed and approved • on second reading by the City_ • Council of the City of Corpus Christi. Texas on the 3rd day of December, 1985 and 15. A full text of said ordinance is available to the public in the , Office of the City Secretary. 11 /a/ Armando Chapa Cay Secretary Corpus Christi, Texas PUBLISHER'S AFFIDAVIT 8IT448§9C.C. CITY SECRETARY STATE OF TEXAS, t,: County of Nneces. f Before me, the undersigned, a Notary Public, this day personally came MARGARET RAMAGE who being fust duly sworn, according to law. says that he is the COMMUNITY RELATIONS SUPERVISOR of the Corpus Christi Caller and The Corpus Christi Times, Daily Newspapers published at Corpus Christi, Texas, in said County and State, and that the publication of NOTICE OF PASSAGE OF ORDINANCE ON FIRST READING of which the annexed is a true copy, was published in Caller -Times Pub. Co. 2nd December 85 day on the day of 19._.., and once each_ thereafter for...--____ one consecutive_ day ONE _Times 27.60 MARGARET RAMAGE Subscribed and sworn to before me this__3rd EDNA KOSTER 11-30-88 Notary Public, Nei County``1'exas 67897 /3N M DEC 1985 tA� NOTICE. Of PASSAGE OF ()ROWAN 1 ON FIRST RFAIIIf:3 I LJTEIORIZING 1' HC ,EXE+�ION OF'A' FIVE YEARLEASE- WITH'. THE CORPUS CHRISTI'SRT FOUNDATION CON- ERNING Ti -1C 'ARI MUSEUM F SOUTH TFXAS BUILDINGG,,,,WITH TILE CITY 1O PROV105tERTAIN SERVICES ANDRDR'UNDS AS SET FOP,TH. IlHE AGREEMENT, Was passed on Eret readg by thn City Council,of the ity of Corpus Christi, Texos n the 28th day of November, 985. The full text of saidrdinance is avellable to the,ublic in the Office of the City 1 I Secretary. I /5/ Armando Chelan i City Secretary Cerpu, Cim,u, 5,1i, NOT - _ _ . f