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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 - • 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