HomeMy WebLinkAbout020684 ORD - 05/30/1989AN ORDINANCE
AUTHORIZING THE EXECUTION OF A ONE-YEAR LEASE AGREEMENT WITH
CONQUEST AIRLINES FOR SPACE 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 a
one-year lease agreement with Conquest Airlines for space at Corpus Christi
International Airport, 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.
SECTION 2. That upon written request of tSe favor or five Loi:ncil
members, copy attached, to find and declare an emergency due to the neec cf
executing the abovementioned lease agreement 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 at three regular
meetings so that this ordinance is passed and shall take effect upon first
reading as an emergency measure this the day of 7\ KLi
19
ATTEST:
;ity Secretary
APPROVED: 1 DAY OF I', , 19
HAL GEORGE, CITY ATTORNEY
By a �.
Assistant City Attorney
20BAG102.ord
MAYOR
Thi CITY OF COR?li; CHRIST:, TEYAS
MICROFILMED
OFFICE SPACE AND FEE AGREEMENT
THIS OFFICE SPACE AND FEE AGREEMENT (this "Agreement") is entered into by
and between the City of Corpus Christi, a municipal corporation having home rule
powers under the laws of the State of Texas (the "City") and Conquest Airlines
Corporation, a Delaware corporation doing business in Texas ("Conquest");
WHEREAS, the City owns and operates the City of Corpus Christi
International Airport, located at 1000 International Drive, Corpus Christi,
Nueces County, Texas ("Airport"); and,
WHEREAS, Conquest is providing airline services at the Airport and is in
need of office space, ticket counter space, and use of security services and
baggage claim services.
NOW, THEREFORE, in consideration of the premises, and the charges, fees,
rentals, covenants and agreements contained herein, the parties agree as
follows:
LEASED PREMISES
The City leases to Conquest, and Conquest takes from the City, office space
and ticket counter space allocated in the Airport Terminal Building,
respectively identified in Exhibit "A" and Exhibit "B" both of which are
attached hereto and made a part hereof for all purposes. Conquest also is
granted joint use of the security services and baggage handling services and
claim areas.
TERM OF AGREEMENT
The term of this Agreement shall be for one year, commencing upon June 1,
1989 and expiring May 31, 1990, provided, however, that this Agreement may be
terminated upon a thirty (30) day written notice of cancellation.
I1I.
RENT
The minimum office space rent is 521.47 per square foot annually or $449.98
a month for 251.5 square feet (17'3" x 14'7".) This rate is subject to change
pending the outcome of on-going airline rates and fee negotiations for
comparable and like space. A standardized rate is applied to all tenants for
like space. Any new rate negotiated will become effective on the first day of
the month after the new rates are effective.
The minimum ticket counter space rent is 521.47 per square foot annually or
5200.39 a month for 112 square feet (10 linear feet.) This rate is subject to
change pending the outcome of on-going airline rates and fee negotiations for
comparable and like space. A standardized rate is applied to all tenants for
502AG005.1se 1
like space. Any new rate negotiated will become effective on the first day of
the month after the new rates are effective.
Rent is required one month in advance and is due on the 1st of each month.
Payments shall be made at Corpus Christi International Airport, 1000
International Drive, Corpus Christi, Texas 78406 or at such other place in the
City as the City may hereafter notify Conquest, and shall be made in legal
tender of the United States.
All unpaid fees due the City shall bear a service charge of one and
one-half percent per month if same are not paid and received by the City by the
30th day of the month in which payments are due, and Conquest agrees that it
shall pay and discharge all costs and expense, including reasonable attorney's
fees, incurred or expended by the City in collection of such delinquent amounts
due.
IV.
MAINTENANCE, USE, AND OCCUPANCY OF LEASED PREMISES
Conquest shall at all time maintain its Leased Premises and all furnishings
or equipment thereon in a neat, orderly, sanitary and presentable condition and
provide its own janitor service. Conquest shall permit no damage to existing
improvements; no spikes, hooks, nails or any other device shall be driven or
screwed into the walls or other surfaces of the Leased Premises. Leased
Premises shall be free from all danger of fire and personal injury and Conquest
shall refrain from activities which may destroy or damage the Leased Premises.
No flammable material shall be stored, nor will the Leased Premises be used for
any purpose which will increase the rate of insurance thereon. At the
expiration of this Agreement, Conquest agrees to deliver the Leased Premises to
the City in the same condition as when rented, normal wear and tear excepted.
The City shall furnish heating and air conditioning to the Leased Premises
in such degrees as is furnished to other tenants in the same building area, and
the City shall not be liable for any failure to supply the same when such
failure is not due to negligence on its own part. General area light will be
furnished by the City through the Fixtures involved for the general lighting of
the area.
Conquest shall promptly observe, comply with and execute the provisions of
any and all present and future rules and regulations, requirements, orders and
directions of the City which may pertain or apply to the operations in or on its
Leased Premises.
V.
INSURANCE AND INDEMNIFICATION
5.1 Liability Insurance. Conquest at its expense at all times during the
term hereof, shall cause Conquest to be insured on an occurrence basis, under
policies no more restrictive than the standard form of comprehensive liability
policy, against the claims of any and all persons for personal or bodily injury
in a sum of not less than one million dollars for any one person or occurrence
occurring on the Leased Premises or incidental to the operations of Conquest
502AG005.lse 2
hereunder, and not less than two hundred thousand dollars each occurrence for
property damage. Such insurance shall specifically ensure the obligations of
Conquest to indemnify the City. Insofar as the insurance provides protection
against liability for damages to third party for personal or bodily injury,
death and property damage, the City shall be included as named insured;
provided, however, such liability insurance coverage shall also extend to
damage, destruction and injury to City owned or leased property and City
personnel and caused by, or resulting from work, acts, operations or omission of
Conquest, its officers, agents and employees. The City shall have no liability
for any premiums charged for such coverage, and the inclusion of the City as a
named insured is not intended to, and ghall not, make the City a partner or
joint venturer with Conquest in its operations at the Leased Premises.
5.2 Limitation as to Policies. All policies of insurance required herein
shall name the city as additional insured and be in form and with a company or
companies approved by the City, and qualified to do insurance business in the
State of Texas. Each such policy shall provide that the policy may not be
materially changed, altered, not renewed or cancelled by the insured or insurer
during its term without first giving thirty (30) days written notice to the
City.
5.3 Evidence of Insurance. Certificates, or other evidence of insurance
coverage required of Conquest in this Article, shall be delivered to the City in
form and content satisfactory to the City. At least thirty (30) days prior to
the expiration of any such policy, Conquest shall submit to the City a
certificate showing such insurance has been renewed or replaced. If such
coverage is cancelled or reduced, Conquest shall, within fifteen (15) days after
the date of such written notice from the insurer of such cancellation or
reduction of coverage, file with the City a certificate showing that the
required insurance has been reinstated or provided through another insurance
company or companies.
5.4 Adjustment of Claims. Conquest shall provide for the prompt and
efficient handling of all claims for bodily injury, property damage or theft
arising out of the activities of Conquest under this Agreement. Conquest agrees
that all such claims, whether processed by Conquest or its insurer either
directly or by means of an agent, will be handled by a person or representative
of Conquest.
5.5 Condition of Insurance Default. If at any time Conquest shall fail to
obtain the insurance as required herein, the City niay obtain such insurance by
taking out policies with companies satisfactory to the City. The amount of the
premiums paid for such insurance by the City shall be payable by Conquest to the
City with the installment of rent thereafter next due under the terms of this
Agreement, with interest thereon at the rate of eight percent per annum.
5.6 Indemnification. Conquest agrees to indemnify and save harmless the
City, its officers, agents and employees, from and against any and all loss of
or damage to property of third persons, or injuries to, or death of any persons,
and from any and all claims, damages, suits, costs, expenses, liabilities,
actions or proceedings of any kind whatsoever, in any way resulting from, or
arising out of the acts and omissions of officers and employees of Conquest or
the City arising out of this Agreement or the use and occupancy of the Leased
Premises and said Airport.
502AG005.1se 3
VI.
GENERAL PROVISIONS
6.1 Assignment and Subletting. Conquest agrees not to sublet the Leased
Premises, or any part thereof, or any of the facilities described herein, nor
assign this Agreement or any portion of the term hereof, without the prior
written consent of the City. Such consent shall not be arbitrarily withheld,
provided however any successor, sublessee or assign, in interest in this
Agreement must meet all pertinent requirements as outlined herein.
6.2 Agreements with the United States. This Agreement is subject and
subordinate to the provisions of any agreements heretofore made between the City
and the United States, relative to the operation or maintenance of said Airport,
the execution of which has been required as a condition precedent to the
expenditure of Federal funds for the extension, expansion or development of said
Airport.
6.3 Modification for Granting FAA Funds. In the event that the Federal
Aviation Administration requires, as a condition precedent to granting of funds
for the improvement of said Airport, modifications or changes to this Agreement,
Conquest agrees to consent to such reasonable amendments, modifications,
revisions, supplement or deletions of any of the terms, conditions or
requirements of this Agreement, as may be reasonably required to enable the City
to obtain said Federal Aviation Administration funds.
6.4 Governing Law. This Agreement shall be deemed to have been made in,
and be construed in accordance with the laws of the State of Texas, venue shall
be in Corpus Christi, Nueces County, Texas.
6.5 Compliance With Laws and Regulations. Conquest shall comply with all
statutes, laws, ordinances, orders, judgments, decrees, regulations, directions
and requirements of all federal, state, city and other governmental authorities
now or hereafter applicable to the Leased Premises or to any Leased Premises and
Conquest's improvements thereon or of adjoining public ways.
6.6 Non -Discrimination. Conquest in exercising any of the rights or
privileges herein granted, shall not on the grounds of race, sex, creed or
national origin, discriminate or permit discrimination against any person or
group of persons in any manner prohibited by Part 21 of the Regulations of the
Secretary of Transportation. The City is hereby granted the right to take such
action, anything tc the contrary herein notwithstanding, as the United States
may direct to enforce this nondiscrimination covenant.
6.7 Notices/Address. Except as herein otherwise expressly provided, all
notices required to be given to the City hereunder shall be in writing and shall
be sent by certified mail, return receipt requested, to the Director of
Aviation, Corpus Christi International Airport, 1000 International Drive, Corpus
Christi, Texas 78406. All notices, demands and requests by the City to Conquest
shall be sent by certified mail, return receipt requested, addressed to Conquest
tc an address as designated by Conquest.
6.8 Successors and Assigns. All of the terns, provisions, covenants,
stipulations, conditions and considerations of this Agreement shall extend to
502AG005.1se 4
and bind the legal representative, successors, sublessees and assigns of the
respective parties hereto.
6.9 Waivers. No waiver of default by either party of any terms, covenants
and conditions hereof to be performed, kept and observed by the other party
shall be construed as, or operate as, a waiver of any subsequent default of any
terms, covenants or conditions herein contained, to be performed, kept and
observed by the other party.
6.10 Terminal Construction. It is recognized that conditions may change in
the Airport making it necessary and desirable for the benefit of the traveling
public to revise, move, rearrange, or reconstruct all or part of the Terminal.
In such event, it is agreed that the City shall have the right to move
Conquest's premises to another location, provided the substitute premises are
comparable to the premises described herein and provided further, that any such
move for the convenience of the City shall be at no expense to Conquest. In such
event, Conquest will not be required to close down its currently occupied
premises until it can move into the new facility.
6.11 Airlines Contract, Costs, and Fees. Conquest shall be subject to all
terms and conditions of any contract between the City and the major airlines at
the Airport, except with regard to the length of the contract term, which shall
be for one year from June 1, 1989, to May 31, 1990.
The monthly fee for use of security services, the baggage claim area
and conveyor shall be the industry standard of 20/80. Each airline shall pay an
equal amount of 20% of the total joint use charges. Each airline shall
participate in the remaining 80% of total joint use charges based on actual
enplanements per airline.
Should Conquest choose to use separate gate facilities, the charge
will be based on the standardized rate.
6.12 Entire Agreement. This Agreement, together with all exhibits attached
hereto, constitutes the entire Agreement between the parties hereto and all
other representatives of statement heretofore made, verbal or written, are
merged herein and this Agreement may be amended only in writing, and executed by
duly authorized representatives of the parties hereto.
IN WITNESS THEREOF, the parties nave execute° this Agreement to be
effective as of June 1, 1989.
ATTEST: CITY OF CORPUS CHRISTI
By: By:
Armando Chapa, City Secretary Juan Garza, City Manager
Approved this day of
1989, by Hal George, City Attorney
CONQUEST AIRLINES, INC.E
By: By: l!, + ( ;Yl,t 1 ' n
Assistant City Attorney its General Manager
502AG005.1se 5
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IMP
4
Corpus Christi, Texas
A day of , 1982
1
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
MANOR
THE CITY OF CORPUS CHRISTI, TEXAS
The above ordinance ,:las passed by the following vote:
Betty N. Turner 1 t
David Berlanga, Sr.
Leo Guerrero e�
Tom Hunt
Edward A. Martin
Joe McComb
Clif Moss l
Mary Rhodes
Frank Schwing, Jr.
99.045.01