HomeMy WebLinkAboutC2005-732 - 11/15/2005 - Approved
LEASE AGREEMENT
STATE OF TEXAS
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KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES
This Lease Agreement is made and entered into by and between the City of Corpus
Christ, Texas, a municipal corporation ("City") and the Lady Lex Museum on the Bay
Association, a nonprofit corporation ("Association"), on the terms and conditions
hereinafter set forth.
1. LEASE PREMISES: The City, in consideration of the Association's faithful
performance of the covenants described herein, leases to the Association the following
described land, hereinafter called the "Leased Land":
That certain portion of the submerged lands of Corpus Christi Bay patented by
the State of Texas to the City of Corpus Christi by Patent No. 86, Volume 21-A,
dated January 4, 1924, together with a certain portion of Corpus Christi Beach
adjacent thereto, all of which is described, on Exhibit A, which is attached to and
Incorporated into this lease for all purposes.
2. TERM: The term of this Lease shall commence at 12:01 a.m., January 16, 2006, and
shall continue until midnight, January 15, 2021.
3. REPLACEMENT LEASE: This Lease extends, amends, and replaces that prior lease
dated February 24, 2000, authorized by Ordinance No. 023949 of the City Council of
the City
4. RENTAL: The Association agrees to pay to the City, or its designated agent, rentals
In the amount of ONE DOLLAR ($1.00) per year. then, in advance, on the first day of
the Lease. This consideration is given in addition to the other covenants and
obligations of the Association provided under this Lease Agreement.
5. PERMITTED USE: The Leased Land shall be used for the berthing of the U.S.S.
Lexington. its operation by the Association as a museum, construction and maintenance
of a pier and small accessory buildings, such as ticket booths, together with any and all
related uses authorized for organizations exempt from Federal income taxation under
Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The Association
shall endeavor to operate the facility as a first-class naval museum and meet all
requirements of the U.S Navy for maintaining the U.S.S. Lexington. The Association
shall maintain hours of operation open to the public and admission fees similar to
comparable attractions.
6. LIMITATION OF LEASEHOLD: The City does not warrant its title to the Leased
Premises. This Lease and the rights and privileges granted the Association in and to
the Leased Premises are subject to all covenants, conditions, restrictions, and
2005- 732
11/15/05
Ord026548
Lady Lt!x Museum no the Bav
Mu,,-,ulll.jnc
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exceptions of record or apparent. Nothing contained in this Lease may be construed to
Imply the conveyance to the Association of rights in the Leased Premises that exceed
those owned by City
7 CITY USE: The City retains the right to use or cross the Premises with utility lines
and easements. City may exercise these rights without compensation to me
Association for damages to the Premises from installing, maintaining, repairing, or
removing the utility lines and easements. City must use reasonable judgment in
locating the utility lines and easements to minimize damage to the Premises.
8 COMPLIANCE WITH LAWS: The Association agrees to comply with all laws,
ordinances, orders, rules, regulations, and requirements of Federal, State, and local
govemments, and of all of their departments, applicable to the Leased Land. This
Lease is also subject to applicable provisions of the City Charter.
9 WETLANDS: The Leased Land may contain officially designated wetlands, and the
Association agrees that said wetland areas will not be altered, damaged, or constructed
upon unless the proper permit has been obtained from the appropriate regulating
entities. The Association shall be responsible for obtaining all such necessary permits
and completing any required mitigation. Any such mitigation project shall be considered
a necessary and related construction project for the improvements contemplated to be
constructed under this Lease Agreement.
10. MAINTENANCE: The Association accepts the Leased Land in its present
condition, AS IS and WITH ALL FAULTS. The Association shall throughout the term of
this Lease Agreement take good care of the Leased Land, including the mooring, piers,
ticket booths and all other improvements, located thereon, keep them free from waste or
nuisance of any kind. and shall be responsible for and shall perform, or cause to be
performed. maintenance. including custodial maintenance, and repair of the Leased
Land and the facilities located thereon.
11. INSURANCE:
a The Association shall secure and maintain at the Association's expense, during the
term of this Lease. insurance of the type and with the amount of coverage shown on the
attached Exhibit S, which is incorporated in this Lease by reference. The Association
shall use an insurance company or companies acceptable to the Risk Manager. Failure
to maintain the insurance during the term of this Lease. at the limits and requirements
shown on Exhibit S, constitutes grounds for termination of this Lease.
b. The Certificate of Insurance must be sent to the Risk Manager prior to occupancy of
and operations at the Premises. The Certificate of Insurance must provide that the City
wilt have thirty (30) days advance written notice of cancellation, intent to not renew,
material change, or termination of any coverage required in this Lease.
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c The Association shall provide, during the term of this Lease, copies of all insurance
policies to the Risk Manager upon written request by the City Manager.
d The Risk Manager retains the right to annually review the amount and types of
Insurance maintained by the Association, to require increased coverage limits, if
necessary in the interest of public health, safety, or welfare, and to decrease coverage,
If so warranted. In the event of any necessary increase, the Association must receive
thirty (30) days written notice prior to the effective date of the requirement to obtain
Increased coverage
e. In the event alcoholic beverages are to be served on or in any Premises covered by
this Lease, the Association shall additionally obtain or cause to be obtained alcoholic
beverage liability insurance in the amount of one million dollars ($1,000,000.00)
covering the event or time period when alcoholic beverages are to be served.
f The Association shall maintain workers compensation insurance covering any
employee on the Premises as governed by the laws of the State of Texas and
employer's liability insurance with minimum limits of liability of $500,000. The workers'
compensation insurance must be endorsed to waive any rights of subrogation the
insurance company may acquire by reason of the payment of any claim against the City
and any of its respective Council members, officers, employees, agents, or attorneys.
As an alternative to workers' compensation insurance, the Association may establish
one or more employee benefit plans providing for the payment of medical expenses and
lost wages in the event of an on-the-job injury suffered by an employee.
12. UTILITIES: The Association shall be responsible for obtaining water, sewer,
electricity. and gas service connections for use on the Leased Land; and the
Association shall pay all utility connection charges related thereto. During the term of
this Lease Agreement, the Association shall further pay when due all charges and costs
for utilities consumed on the Leased Land.
13. TAXES OR OTHER IMPOSITIONS:
a The Association shall timely pay any and all ad valorem taxes or other impositions, if
any, which may be levied, assessed or otherwise imposed pursuant to its occupancy of
the Leased Land and the improvements located thereon during the term of this Lease.
b The Association shall promptly remit to the Comptroller for the State of Texas all
sales taxes collected from its activities on the Lease Land.
14. INSPECTION: The City, and its employees and designated agents, shall have the
right to enter upon the Leased Land at all times for the purposes of inspection, for
emergency repairs to utility systems, and to otherwise protect its interests as Landlord
hereunder, Nothing herein shall be construed to restrict the City in the exercise of any
of its police powers.
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15. CITY MANAGER'S RIGHT TO ACCESS PREMISES IN EMERGENCY:
a The Association shall provide the City Manager access to premises, and a current
list of contact names and phone numbers for use by the City Manager in the event of an
emergency.
b The City Manager has the right to enter the premises during the regular hours of
operation normal or at anytime in an emergency.
16. SIGNS: The Association shall not place any advertising signs on the Leased Land
without compliance with all City codes and regulations. All such signs shall be kept, in a
continual State of good repair, and failure to do so may result in removal of said signs
from the Leased Land.
17. NO DEBTS: The Association may not incur any debts or obligations on the credit
of the City during the term of this Lease, and including during any Holdover Period that
may occur
18. LIENS: The Association shall not permit any mechanic's, materialman's, or other
liens to be fixed or placed against the Leased Land and agrees to immediately
discharge (either by payment or by filing the necessary bond, or otherwise) any such
liens which are allegedly fixed or placed against the Leased Land. The Association
reserves the right to contest with due diligence the reasonableness of any such charges
or impositions against the Leased Land, and the City agrees not to interfere with such
contested proceedings or otherwise to declare a default under this Lease due to such
proceedings.
19. HAZARDOUS MATERIALS: With respect to any substances defined as or included
in the definition of "hazardous substances," "hazardous wastes," "hazardous materials,"
or 'toxic substances" under any applicable Federal, State or local laws, ordinances, or
regulations (including, without limitation, friable asbestos and asbestos deemed
hazardous by Federal or State regulations) (such substances collectively referred to
hereinafter as "Hazardous Materials" and such laws, ordinances, and regulations
together with all rules, orders, and permits pursuant thereto collectively referred to
hereinafter as "Hazardous Materials Laws"), the Association:
a. represents that the Association will not (i) store, bury, install, transport, treat, or
dispose, of any Hazardous Materials at, to or, from the Leased Land in violation of any
applicable Hazardous Materials Laws, or (ii) cause or allow the release, discharge,
emission. leak, spill, or dumping of any Hazardous Materials at or from the facilities on
the Leased Land, except for those releases allowed under applicable Hazardous
Materials Laws:
b. covenants to (i) comply with all applicable Hazardous Materials Laws with respect to
the manufacture, storage, transmission, presence, discharge and removal of Hazardous
Materials at or from the facilities on the Leased Land, (ii) pay promptly within thirty (30)
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days of when demand is made the costs of any required removal of any Hazardous
Materials from the Leased Land and keep the Leased Land free of any lien imposed
pursuant to any Hazardous Materials Laws, (iii) not locate nor allow location of any
underground storage tanks on the Leased Land, (iv) not locate any materials containing
asbestos of any type or nature on the Leased Land, and (v) notify Landlord promptly in
writing of the commencement of any legal or regulatory proceedings relating to
Hazardous Materials affecting the Leased Land; and
c represents that the Association will not cause or allow the release, discharge,
emission, leak, spill, or dumping of any Hazardous Materials or oil in harmful quantities
at or from the facilities on the Leased Land into the waters of the United States and
State of Texas, except for those releases allowed under applicable laws;
d agrees to indemnify and to hold harmless the City, its officers, employees, agents,
successors, and assigns from and against any and all claims, demands, causes of
action, loss, damage, liabilities, costs, and expenses (including attorneys fees and court
costs) of any and every kind or character, known or unknown, fixed or contingent,
asserted against or incurred by the City at any time or from time to time, by reason of or
arising out of any violation of any Hazardous Materials Laws or the release, discharge,
emission, leak, spill, or dumping of any Hazardous Materials or oil in harmful quantities
at or from the facilities on the Leased Land into the waters of the United States and
State of Texas occurring since the commencement of the Association's occupancy of
the Leased Land. The Association's obligations hereunder shall arise upon the
discovery of the presence of any Hazardous Materials, whether or not any Federal
agency or any State or local environmental agency has taken or threatened any action
In connection with the presence of any Hazardous Materials. The foregoing indemnity
shall survive the expiration of this Lease. In the event the Association fails, after
reasonable notice, to pay any amounts described in this provision, the City may, but
shall not be obligated to cause the Hazardous Materials to be removed from the Leased
Land and the cost of such removal shall be payable by the Association; provided,
however, that the Association may in good faith contest the reasonableness or
necessity of any requirement by any Federal, State or local environmental agency, and
upon the Association's providing reasonable security to assure its performance, the City
agrees not to interfere in the Association's proceedings with such agency
20. INDEMNITY: The Association hereby covenants and agrees to at all times
indemnify and save harmless the City, its officers, employees, agents, and
attorneys, and the Leased Land from and against any cost, liability, damages, or
expense arising out of any claim by any person or persons whatsoever by reason
of the use or misuse of the Leased Land and shall indemnity and save harmless
the City from any penalty, damage, or charge incurred or imposed by reason of
any violation of law or ordinance by the Association, and shall indemnify and
save harmless the City from any cost liability, damages, or expense arising out of
the death of or injury of any person or persons or damage to property arising out
of the Association's operations on the Leased Land. The Association specifically
agrees to indemnify and save harmless the City, its officers, employees, agents,
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and attorneys, and the Leased Land from and against any cost liability, damages,
or expense arising out of any claim due to the death or injury of any employee of
the Association or through a right of subrogation by an Insurance company.
21. BUDGET: The Association shall submit to the City's Director of Finance a copy of
Its annual budget adopted each year showing anticipated revenues and expenses for
the new year with a comparison to the actual revenues and expenses for the previous
year Such budget shall be formulated according to generally accepted accounting
practices and in a form approved by the City's Director of Finance.
22. RECORDS AND REPORTS: The Association shall keep strict and accurate books
of account of all receipts collected and other revenues received. The Association
agrees to furnish to the City's Director of Finance quarterly financial statements, to
Include balance sheets and statements of revenues and expenditures concerning its
operations within thirty (30) days from the end of each quarter. Such Statements shall
be formulated according to generally accepted accounting practices and in a form
approved by, the City's Director of Finance. The Association's books of account shall
be Open for inspection by the City during business hours. All underlying documentation
for the Association's quarterly statements shall be preserved by the Association for at
least five (5) years The Association additionally shall furnish to the City a copy of its
annual audited financial report within 120 days of the end of each, fiscal year of the
Association.
23. DEFAULT: The following events shall be considered events of default under the
terms of this Lease:
a. Failure of the Association to deliver to the City at least thirty (30) days prior to the
bond payment due date. the amount of any payment required under those City of
Corpus Christi, Texas Combination Tax and Municipal Hotel Occupancy Tax Revenue
Certificates of Obligation, Series 1992 in the original principal sum of $3,000,000 (the
"Sonds").
b. Failure of the Association to deliver to the City at least thirty (30) days prior to the
due date, the amount of any mandatory sinking fund deposit required under the Bonds.
c Failure of the Association to maintain in its restricted reserve accounts an amount
equal to one years debt service on the Bonds, inclusive of any mandatory sinking fund
deposits, at all times during the term of this Lease or any extension hereof.
d. In the event that for any fiscal year the Association reports a net operating loss. In
this regard, the amount of gain or loss shall be calculated without regard to depreciation
as an operating expense.
e. In the event that the annual U.S. Navy inspection report of the ship shows a material
condition deficiency which has not been addressed by the following inspection report.
The Association agrees to forward to the City Manager of the City a copy of the
H LEG-DIR,OI;(aR\Malv Kay Lady I, \ Muscumd()(
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Inspection report each year within thirty (30) days of receiving such and a copy of the
Association's response
f. In the event the Association fails to comply with any other covenant or condition of
this Lease after thirty (30) days written notice of same, with an opportunity to cure
during such period
24. REMEDIES: In the event of any default in the performance of this Lease by the
Association, the Association may submit to the City, within twenty (20) days of such
default, a remediation plan showing the manner in which the Association plans to
remedy the default, a detailed budget supporting the plan, the parties involved, in
remedying such default. and a detailed timeline for the implementation of such plan.
Upon any such default, the City shall have the right to:
a Approve the remediation plan submitted by the Association and continue to monitor
compliance with the plan. In such case, any default by the Association in the
remediation plan shall constitute a new default under this Lease.
b. Require that changes be made in the remediation plan submitted by the Association.
In such case, if the Association concurs with such changes, the remediation plan shall
proceed as provided above. If the Association does not concur in such changes, the
City shall have the right to exercise any of the remedies provided below.
c. Adopt a remediation plan, in the event one is not submitted by the Association. In
such case. if the Association fails to comply with the requirements of such plan, the City
shall have the right to exercise any of the remedies provided below.
d. Require a change in any or all of the members of the board of directors of the
Association or the management of the Association, including the appointment by the
City of a new board of directors to govern the Association in accordance with its articles
of incorporation and bylaws.
e. Notify the Association of the termination of this Lease and direct the Association to
vacate the Leased Land. subject to making any necessary arrangements for the
maintenance or relocation of the U.S.S. Lexington consistent with the requirements of
the United States Navy. In such event, the Association shall proceed with due diligence
In completing such relocation, and if the Association fails to diligently complete such
relocation. the City may exercise its rights in (d) above.
25. NONDISCRIMINATION: The Association shall be responsible for the fair and just
treatment of all of its employees and patrons. The Association warrants that it is and
will continue to be an equal opportunity employer and it hereby covenants that no
employee or customer shall be discriminated against because of race, creed, color, sex,
national origin or disability.
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26. DRUG POLICY: The Association must adopt a Drug Free Workplace and Drug
testing Policy.
27. VIOLENCE POLICY: The Association must adopt a Violence in the Workplace
Policy.
28. ASSIGNMENT: The Association may not assign this Lease nor sublease the
Leased Land. or any part thereof, without the written consent of the City Council, which
consent shall not be unreasonably withheld. Such assignment shall not relieve the
Association from its obligations hereunder unless such release is expressly granted by
the City in approving such assignment.
29. FORCE MAJEURE If by reason of force majeure either party hereto shall be
rendered wholly or in part unable to carry out its obligations under this Lease, then
except as otherwise expressly provided in this Lease, if such party shall give notice and
the full particulars of such force majeure in wilting to the other party, within a reasonable
time after the occurrence of such event or cause. the obligations of said party giving
such notice, so far as they are affected by such force majeure, shall be suspended, and
such party, shall endeavor to remove or overcome such inability with all reasonable
dispatch. The term "force majeure" shall mean acts of God, strikes, industrial
disturbances, acts of public enemy. orders of any kind of the government of the United
States or the State of Texas, riots, epidemics. hurricanes, fires, floods, civil
disturbances, explosions, or other accidents or causes not reasonably within the control
of the party claiming such inability.
30. MODIFICATIONS No changes or modifications to this Lease shall be made, nor
any provisions waived, unless in writing, signed by a person authorized to sign
agreements on behalf of each party
31. LEASE RELATIONSHIP: It is specifically agreed and understood by the parties
hereto that a landlord-tenant relationship is created under the terms of this Lease
Agreement. Nothing herein contained shall be deemed or construed by the parties
hereto, nor by any third party, as creating the relationship of partnership or of joint
venture between the parties
32. CITY AUTHORITY: Except as specifically provided herein, the Association shall
not have any authority to bind the City to any contract. indebtedness, or obligation in
any manner without the express written consent of the City. The City reserves the sole
and exclusive right to exercise its police powers and other governmental authority
concerning any matters related to this Lease.
33. NOTICES: Any notices or other communications relating to this Lease shall be
made in writing and may be given by (a) depositing same in the United States mail;
postage prepaid, certified mail, with return receipt requested, addressed as set forth in
this section, or (b) delivering the same to the party to be notified. Notice given in
accordance with (a) hereof shall be effective upon deposit in the United States mail.
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The notice addresses of the parties hereto shall, until changed in the manner of giving
notices as provided herein, be as follows:
CITY:
City of Corpus Christi, Texas
1201 Leopard Street
P.O. Box 9277
Corpus Christi, Texas 78469
Attention: City Manager
ASSOCIA TION:
Lady Lex Museum on the Bay Association
2914 N. Shoreline Drive
P.O. Box 23076
Corpus Christi, Texas 78403
Attention: Executive Director
34. ALTERATIONS: The Association may make alterations to the permanent
Improvements located on the land areas comprising the Leased Premises with the
consent of the City Manager or the City, or the City Managers designee.
35. RELATIONSHIP OF PARTIES: This Lease establishes a landlord/tenant
relationship, and no other relationship. This Lease must be construed conclusively in
favor of that relationship. In performing this Lease, both the City and the Association will
act in an individual capacity and not as agents, representatives, employees, employers,
partners, Joint-venturers. or associates of one another. The employees or agents of
either party may not be. nor be construed to be, the employees or agents of the other
party for any purpose.
36. NOT FOR BENEFIT OF THIRD PARTIES: This Lease is only for the benefit of the
City and the Association. and no third party has any rights or claims under this Lease or
against the City
37. PUBLICATION COSTS: The Association shall pay for the cost of publishing the
Lease description and related ordinance, as required by the City's Charter, in the legal
section of the local newspaper.]
38. MEMORANDUM OF LEASE: The City will execute and deliver to the Association a
short form memorandum of this Lease in recordable form. The Association shall pay all
costs of preparing and recording the Memorandum of Lease.]
39. INTERPRETATION: This Lease will be interpreted according to the Texas laws
which govern the interpretation of contracts. Venue lies in Nueces County, Texas,
where this Lease was entered into and will be performed.
40. SURVIVAL OF TERMS: Termination or expiration of this Lease for any reason
does not release either party from any liabilities or obligations under this Lease that (a)
iI LEG-DIR'OlgaRMarv Ka\L,dv [v MuscumJpc
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the parties have expressly agreed survive any the termination or expiration; (b) remain
to be performed; or (c) by their nature would be intended to be applicable following any
the termination or expiration of this Lease.
41. CAPTIONS: The captions utilized in this Lease are for convenience only and do
not in any way limit or amplify the terms or provisions of this Lease.
42. SEVERABILITY
a. If for any reason, any section, paragraph, subdivision, clause, provision, phrase, or
word of this Lease or the application of this Lease to any person or circumstance is, to
any extent, held illegal, Invalid, or unenforceable under present or future law or by a
final judgment of a court of competent jurisdiction, then the remainder of this Lease, or
the application of the term or provision to persons or circumstances other than those as
to which it is held illegal invalid, or unenforceable, will not be affected by the law or
Judgment for it is the definite intent of the parties to this Lease that every section,
paragraph. subdivision, clause, provision, phrase, or word of this Lease be given full
force and effect for its purpose.
b To the extent that any clause or provision is held illegal, invalid, or unenforceable
under present or future law effective during the term of this Lease, then the remainder of
this Lease is not affected the law, and in lieu of any illegal, invalid, or unenforceable
clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Lease automatically.
43. VENUE: Venue lies in Nueces County, Texas, where this lease was entered into
and will be performed.
44. ENTIRETY CLAUSE: This Lease and the attachments and exhibits incorporated
Into this Lease constitute the entire agreement between the City and the Association for
the purpose granted. All other agreements, promises, representations, and
understandings, oral or otherwise, with reference to the subject matter of this Lease,
unless contained in this Lease are expressly revoked, as the parties intend to provide
for a complete understanding within the provisions of this Lease and its exhibits of the
terms, conditions, promises, and covenants relating to the Association's operations and
the Premises to be used in the operations.
45. BINDING LEASE: It is further mutually understood and agreed that the covenants
and agreements contained in the Lease, to be performed by the respective parties, are
binding on the parties, and their respective successors and assigns.
46. ACKNOWLEDGEMENT: Each party expressly agrees that it has independently
read arid understood this Lease. By the Association's execution of this Lease, the
H LEG-DIR{)igaR\-laIY Ka\ Lady L, MUS~UIll.d"~
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Association acknowledges and understands that this Lease is not binding on the City
until properly authorized by the Council and executed by the City Manager or by his
designee
E);(ECUTED IN DUPLICATE, each of which shall be considered an original, on the
.: ~ n day of A ',-< , 2006.
LADY LEX MUSEUM ON
THE SAY ASSOCIATION
By:
~~
+-1 .
F. W ontesano
Executive Director
STATE OF TEXAS 9
9
COUNTY OF NUECES 9
This instrument was acknowledged before me on /J~~ J ~ , 2006, by
F, W. Montesano, Executive Director, for Lady Lex Mus on the Bay ASSOCiation, a
Texas domestic nonprofit corporation, on behalf of the corporation.
OLGA DELACRUZ
Notary Public. State of Texas
My CommisSIon Expires
Augutt 19, 2009
2k~
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ATTEST:
CITY OF CORPUS CHRISTI
~
Armando Chapa '.
City Secretary
k
City Manager
APPROVED AS TO LEGAL FORM: This //-f ,,~ day of October, 2005.
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Maryl<ay ~~cher
City Attorney
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STATE OF TEXAS S
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COUNTY OF NUECES S
This instrument was acknowledged before me on
George K. Noe, City Manager of the City of Corpus Christi, a
municipal corporation, on behalf of the corporation.
,2006, by
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Notary Public, State of Texas
F ti"~ Pv.
[i 0-*' ~ Connie Parks
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!,' ">-,' " ,,~ My Commission Expires
. ~~Of~ November 09,2007
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Exhibit B
INSURANCE REQUIREMENTS
1. Lessee's Liability Insurance
A. Lessee must not commence work under this agreement until all insurance required
herein has been obtained and such insurance has been approved by the City. Lessee
must not allow any subcontractor to commence work until all similar insurance required
of the subcontractor has been obtained.
B. Lessee must furnish to the City's Risk Manager, two (2) copies of Certificates of
Insurance, showing the following minimum coverage by insurance company(s)
acceptable to the City's Risk Manager. The City must be named as an additional
insured for the Liability policies, and a blanket waiver of subrogation is required on all
applicable policies.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-Day written notice of cancellation, non-renewal, Bodily Injury and Property Damage
material change or tennination and a 10 day written
notice of cancellation for non-payment of premium is Per Occurrence Aggregate
required on all certificates
COMMERCiAl GENERAL LIABILITY including: $1,000,000 COMBINED SINGLE LIMIT
1 Commercial Form
2. Premises - Operations
3. Productsl Completed Operations Hazard
4. Contractual Liability
5. Independent Contractors
6. Persona/Injury
7. Broad Form Property Damage
AUTOMOBILE LIABILITY -OWNED. NON-QWNED OR $1,000,000 COMBINED SINGLE LIMIT
RENTED
LIQUOR LIABILITY $1,000,000 COMBINED SINGLE LIMIT
When liquor is being sold or served
WORKERS COMPENSATION INSURANCE WHICH COMPLIES WITH THE TEXAS WORKER'S
COMPENSATION ACT and Section 2 of this exhibit
EMPLOYERS LIABILITY INSURANCE $500,000*
*Note: Under ~ 11.f. of the Agreement, the Associat;c
authorized to establish one or more employee benefi
plans providing for the payment of medical expenses
and lost wages in the event of an on-tha-job injury
suffered by an employees as an alternative to workel
compensation insurance.
R50503C6.doc
13
C. In the event of accidents of any kind, the Lessee must furnish the Risk Manager
with copies of all reports of such accidents within 10 days of the accident.
2. ADDITIONAL REQUIREMENTS
A. Lessee must obtain workers' compensation coverage through a licensed
insurance company in accordance with Texas law. The contract for coverage must
be written on a policy and endorsements approved by the Texas Department of
Insurance. The coverage provided must be in amounts sufficient to assure that all
workers' compensation obligations incurred by the Lessee will be promptly met. As
an alternative to workers' compensation insurance, the Association may establish
one or more employee benefit plans providing for the payment of medical expenses
and lost wages in the event of an on-tha-job injury suffered by an employee.
8. Certificate of Insurance:
(1 ) The City of Corpus Christi must be named as an additional insured
on the Liability poliCies and a blanket waiver of subrogation is required on all
applicable policies.
(2) If your insurance company uses the standard ACORD form, the
cancellation clause (bottom right) must be amended by adding the
wording "changed or" between "be" and "canceled", and deleting the words,
"endeavor to", and deleting the wording after "left". In the alternative, a copy
of the endorsement evidencing that the policy was endorsed with required
cancellation provisions is mandatory.
(3) The name of the project must be listed under "Description of
Operations"
(4) At a minimum, a 30-day written notice of material change, cancellation,
non-renewal or termination and a 10-day written notice of cancellation for
non-payment of premium is required.
C. If the Certificate of Insurance on its face does not indicate the existence of the
coverage required by items 1.8 (1 )-(7), an authorized representative of the
insurance company must include a letter specifically stating whether items 1.8. (1)-
(7) are included or excluded.
R50503C6.doc
14