HomeMy WebLinkAboutC2013-131 - 4/23/2013 - ApprovedPage 1 of 13
LEASE AGREEMENT
THE STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This Lease Agreement is by and between the City of Corpus Christi, Texas, a
municipal corporation (hereinafter "City "), and the Corpus Christi Area Council for the
Deaf, Inc., a non - profit corporation (hereinafter "Lessee ").
WITNESSETH:
WHEREAS, the Lessee is organized exclusively for the charitable purpose of providing
services to deaf persons;
WHEREAS, in 1991 Lessee requested a revision of its 1983 Lease agreement in order
to incorporate Housing and Urban Development's (HUD) Community Development
Block Grant (CDBG) regulations;
WHEREAS, the City originally leased the Premises to Lessee for a -ten (10) year term
beginning March 1, 1983, by lease dated February 4, 1983 ( "1983 Lease");
WHEREAS, the City by "Lease Agreement Amendment" dated December 29,1991
( °1991 Lease's (authorized by City Council Ordinance No. 021272 dated October 29,
1991), revised and extended the 19833 Lease for a period of ten (10) years beginning
December 29, 1991, and ending on July 14, 2001;
WHEREAS, the City found and determined that the lease amendment dated December
29, 1991, would further the popular enjoyment of the park property and was consistent
with the goals for public recreation established by the City to extend these services to a
broad spectrum of the population;
WHEREAS, the City has found and determined in the ordinance authorizing this lease
that the 1991 Lease should be extended by this lease; and the Premises stall be
considered to have been continuously leased to Lessee under the terms of the 1991
Lease from the beginning cf the 1991 Lease until the beginning of this lease;
WHEREAS, the City Council held a public hearing on the 13 day of January 2004, and
complied with the requirements of Chapter 26 of the Texas Parks and Wildlife Code
regarding the use of park lands;
WHEREAS, the City approved a lease amendment dated January 13, 2004 to extend
the term until April 10, 2014, with an automatic renewal for an additional ten year term;
WHEREASE, the Lessee desires to expand its leased premises for new construction;
2013 -131
4123113
Ord. 029800
CC Area Council for Deaf Inc.
INDEXED
Page 3 of 13
Section 4. Construction.
a. Lessee constructed the building on the Premises in 1983. Lessee constructed
improvements to the building in 1991 and 2 001 using CDBG funds allocated to
Lessee.
b. Lessee desires to construct new improvements at the Premises. Lessee agrees
to add to, maintain, and operate a public service and recreation center
(hereinafter the Project) designed to primarily benefit the deaf and hard of
hearing persons of the community. Lessee agrees to construct. certain
improvements on the Premises in the furtherance of said Project, which
improvements shall be constructed' in accordance with plans and specifications
approved by the City Director of Parks and Recreation and the City Director of
Engineering Services. Lessee shall have full and complete responsibility for the
preparation of such plans and specifications, obtaining all required Federal,
State; and local permits, and supervision of construction of the Project.
c. Lessee agrees that the entire costs of construction of the Project, including initial
site work, architect's and engineer's fees, inspection, installation of utilities, and
all other costs related to completing , equipping, and stocking the facility, shall be
bome entirely by Lessee. The City does not assume nor will it in any way be
responsible for any of the financial obligations incurred or created by the Lessee
in connection with the construction, equipping and operation of the Project.
Section 5. Furnishings.
Lessee shall be responsible for furnishing and equipping the building and City has no
obligation to furnish any. equipment or furnishings for Lessee. All personal property
furnished by Lessee or donated by others on behalf of Lessee shall remain the property
of Lessee unless specifically donated to City.
Section 5. Maintenance and Utilities.
Lessee agrees to maintain the Premises during the term of this Lease in a clean and
attractive appearance. Lessee shall be responsible for all costs of maintenance, utilities
and the collection and removal of any trash or rubbish from the Leased Premises,
Section 7. Duties at Termination or Expiration of lease.
At the expiration of the team of this Lease, or any extension thereof, Lessee shall
release and deliver unto the City the Premises and all facilities included thereon in .
reasonably sound condition, normal wear and tear excepted.. Lessee may remove at its
own expense any supplies, furniture or equipment which are not classified as fixtures
and which may be removed without damaging the remaining improvements.
Page 2 of 13
WHEREAS, the City Council held a public hearing on the day of
, and complied with the requirements of Chapter 26 of the Texas Parks
and Wildlife Code regarding the use of additional park lands;
NOW, THEREFORE, in consideration of the premises, covenants and conditions in this
Lease, the City and Lessee mutually agree as follows;
Section I. Premises.
The City grants, leases and demises unto Lessee and Lessee rents and leases from the
City the following parcel of real property located in Corpus Christi, Nueces County,
Texas ( "Premises
A site having the dimensions of approximately 242.5 feet by 120 feet, located on the
north and east portion of a tract known as Mt. Vernon Park along McArdle Road. The
site and park are more fully described in the attached Exhibit "A ".
Section 2. Term.
a. The primary term of this Lease shall be ten (10) years beginning sixty one (61) days
after final adoption by City Council of the ordinance authorizing this Lease and ending
on the day of I ; and when the primary term begins the
Premises shall be deemed continuously leased under the 1991 Lease from the
beginning of the 1991 Lease until the beginning of this lease.
b. At the end of the primary-term, this Lease shall be automatically extended for an
additional ten (10) year term; provided, however, that either party may terminate this
Lease at any time upon giving the other party one years written notice in advance of
intention to terminate.
Section 3. Purpose.
Lessee shall operate the Premises exclusively for the following purpose and uses
incidental thereto: To operate a public service and recreation center (hereinafter the
Project) designed to primarily benefit the deaf and hard of hearing persons of the
community. Should Lessee ever receive Community Development Block Grant
Funding subsequent to the effective date of this Lease, then the following purpose shall
apply to this Lease: To further the primary objective of the Act as outlined in Federal
Register 24CFR 570.200 and to provide safe and sanitary public facilities for
handicapped individuals; and to further provide additional services to help the deaf and
hearing impaired person to live as independently as possible in the hearing world and at
all times in accordance with Housing and Urban Development's (HUD) Community
Development Block Grant (CDBG) regulations.
Page 4 of 13
Section 8. Records.
Should Lessee receive CDBG funds subsequent to the effective date of this lease, then
the following provisions shall apply:
a. Operation Records Lessee will provide access to the documentation of clientele
being benefited by the Facilities and the activities being carried out in the Facilities
which pertain to the operations of the Facilities and all obligations pursuant to this
Agreement, including all information on matching funds, if any, during regular business
hours for the'purpose of City /or HUD conducted audits or monitoring.
b. Equal Participation Documentation Lessee shall also keep and provide access to
records documenting compliance with Section 109 of the Housing and Community Act
which requires that no person shall on the grounds of race, color, national origin or sex,
be excluded from participation in, be denied the benefits of, or be subjected to
discrimination under, any program or activity funded in whole or in part with community
development fends made available pursuant to the Act.
c. Information and Reports Lessee shall provide any information, reports, data and/or
forms pertinent to this Agreement as the Director of Housing and Community
Development for the City may from time to time request for the proper administration of
this Agreement,
d. OMB Circular A-110 Lessee shall comply with the following attachment to OMB
Circular number A -110:
Attachment G, "Retention and Custodial Requirements for Records ", except, in lieu
of the provisions in paragraph 4, the retention period for records pertaining to
individual CDBG activities starts from the date of submission of the annual
performance and evaluation report, as prescribed in Section 570.507, in which the
specific activity is reported on for the final time;
e. Compliance Documentation Lessee shall keep and provide access to records
documenting compliance with the following sections of the Housing and Community Act
24 CFR 570, et seq 5770.610 Uniform Administrative Requirements and Cost
Principles; and 570.611 Conflict of Interest. If there is a conflict of interest with any
employee, agent, consultant, officer or member of the Board of Directors of lessee,
identify by name and title the person with the conflict and the nature of the conflict.
Section 9. Compliance with Laws.
Lessee agrees that in operation of the Premises and all programs offered by Lessee at
the Premises it will promptly comply with and fulfill all laws, ordinances, regulations and
codes of Federal, State, County, City and other governmental agencies applicable to
the Premises and all programs offered by Lessee at the Leased Premises, and all
ordinances or regulations imposed by the City for the correction, prevention and
abatement of nuisances or code violations in or connected with the Premises during the
term of this Lease Agreement, at Lessee's sole expense and cost.
Page 5 of 13
Section 10, Non - discrimination policy.
Lessee agrees that in the conduct of programs a non - discrimination policy will apply,
and that the Premises may be utilized by the public in accordance with reasonable
scheduling requirements on a first come, first served basis.
Section 11. Fees.
Lessee may charge fees for rooms and use of the Premises facilities and may conduct
.instructional classes for fees. All of the fees and charges shall be reasonable in
keeping with charges and fees assessed at other recreation centers within the City and
must be first approved by the City Director of Parks and Recreation.
Section 12. Changes in Programs.
Lessee agrees that no changes in programs, plans or fee schedules for activities at the
premises facilities may be implemented without first obtaining the prior approval of the
City Director of Parks and Recreation.
Section 13. Insurance.
Lessee agrees to secure and maintain throughout the term of this Lease, or any
extension, at Lessee's expense, the policies of insurance described on the attached
Exhibit.
The policies of insurance shall name the City as an additional insured by their terms and
shall contain provisions that they cannot be cancelled, allowed to lapse, or materially
changed unless ten (10) days' notice of shall first'have been served upon the Director of
Park and Recreation. Lessee shall promptly provide copies of all insurance policies
upon City's written request.
Certificates of insurance for all policies shall be furnished to the Director of Park and
Recreation prior to any construction. activities pursuant to this Lease Agreement and
maintained at all times throughout the term of this Lease Agreement.
Section 14. Indemnify.
Lessee shall indemnify the City of Corpus Christi against any and all
losses, claims, demands, and defend any suit or action for damage of
every kind and character made against the City of Corpus Christi based on
personal injury of any person, including death and for loss of or damage to
property of any person, whether caused by the City of Corpus Christi and
Lessee or however same may be caused, growing out of any act,
occurrence or omission, or incident to or resulting, from the performance, or
failure to perform the work or the provisions of this Agreement.
Page 6 of 13
Section 15. No assignment.
Lessee shall not sublet or assign this Lease, or any part thereof, without the prior written
consent from Lessor.
Section 16. Publication Costs.
Lessee agrees to pay the costs of newspaper publication of this Agreement and related
ordinance as required by the City Charter.
Section 17. Taxes and other assessments.
Lessee shall pay any ad valorem taxes associated with the Improvements or the
Premises which may be levied during the term of this Lease Agreement or any
extension hereof. Lessee shall not voluntarily create, cause, or allow to be created, any
debts, liens, mortgages, charges, or other encumbrances against the Leased Premises,
Lessee shall from time to time, duly pay and discharge or cause to be discharged or to
be paid, when the sum becomes due, all taxes, assessments, and other government
charges which are lawfully imposed upon the Premises and which, if unpaid, may by
law, become a lien or encumbrance upon such Premises and thereby impair or
otherwise adversely affect the holding such Premises for the use set out in this Lease
Agreement.
This Lease Agreement constitutes the entire agreement of the parties.
Page 7 of 13
EXECUTED IN DUPLICATE, each of which small be considered an original, on the
day of kh g -a,r a!
LESSEE: Corpus Christi Area Council for the Deaf, Inc.
By: lea r�
Name:
Executive Director
THE STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on QVIAX Y , 2013 by
, Executive Director of Corpus Christi Area Council4dr the Deaf, Inc., a
Texas nonprofit corporation, on behalf of the corporation.
0A L 4 ya L = 4,&dL ). .
19'a Pu I' , State of. T x s
Printed Name: - ' ud c r c
Seal: JACQUELINE I Mau wNOWr
Expiration Date:
ATTE
Armando Chapa
City Secretary
"I Mile, of 7"n
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CITY OF CORPUS CHRISTI
,� ` onald L. Olson JfV
City Manager
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Page 10 of 13
INSURANCE REQUIREMENTS
LESSEE'S LIABILITY INSURANCE
A. Lessee trust not commence work under this agreement until all insurance required
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 any subcontractor has been obtained.
B. Lessee must furnish to the City's Risk Manager, 2 copies of Certificates of Insurance
with applicable policy endorsements showing the following minimum coverage by an
insurance company(s) acceptable to the City's Risk Manager. The City must be
named as an additional insured on the General liability policy, and a blanket waiver
of subrogation is required on all applicable policies.
TYPE OF INSURANCE
MINIMUM INSURANCE COVERAGE
30-written day notice of cancellation,
Bodily Injury and Property Damage
required on all certificates or by
applicable policy endorsements
Per occurrence - aggregate
Commercial General Liability including:
$1,000,000 Per Occurrence
1. Commercial Broad Form
$2,000,000 Aggregate
2. Premises -- Operations
3. Products/ Completed Operations
4. Contractual Liability
5. Independent Contractors
B. Personal Injury- Advertising Injury
AUTO LIABILITY (including)
$1,000,000 Combined Single Limit
I . Owned
2. Hired and Non -Owned
Lessee will be responsible for any and
Property Coverage
all damage to property or equipment
used regardless if owned, rented,
Page 11 of 13
leased or borrowed.
WORKERS' COMPENSATION Applicable for paid employees,
WHICH COMPLIES WITH THE
TEXAS WORKERS' COMPENSATION
ACT AND SECTION II OF THIS
EXHIBIT
EMPLOYERS' LIABILITY $500,000!$500,0001$500,000
C. In the event of accidents of any kind related to this lease agreement, Lessee must
furnish the Risk Manager with copies of all reports of any accidents within 10
days of the accident.
11. ADDITIONAL REQUIREMENTS
A. Applicable for paid employees, Lessee must obtain workers' compensation coverage
through a licensed insurance company. The coverage must be written on a policy
and endorsements approved by the Texas Department of Insurance. The workers'
compensation coverage provided must be in an amount sufficient to assure that all
workers' compensation obligations incurred by the Lessee will be promptly met.
B. Lessee's financial integrity is of Interest to the City; therefore, subject to Lessees
right to maintain reasonable deductibles in such amounts as are approved by the
City, Lessee shall obtain and maintain in full force and effect for the duration of this
Contract, and any extension hereof, at Lessee's sole expense, insurance coverage
written on an occurrence basis, by companies authorized and admitted to do
business in the State of Texas and with an A.M. Bests rating of no less than A- VII.
C. The City shall be entitled, upon request and without expense, to receive copies of
the policies, declarations page and all endorsements thereto as they apply to the
limits required by the 04, and may require the deletion, revision, or modification of
particular policy terms, conditions, limitations or exclusions (except where policy
provisions are established by law or regulation binding upon either of the parties
hereto or the underwriter of any such policies). Lessee shall be required to comply
with any such requests and shall submit a copy of the replacement certificate of
insurance to City at the address provided below within 10 days of the requested
change. Lessee shall pay any costs incurred resulting from said changes. All notices
under this Article shall be given to City at the following address:
City of Corpus Christi
Attn: Risk Manager and -
Page 12 of 13
Parks and Recreation Director
P.Q. Box 9277
Corpus Christi, TX 78469 -9277
D. Lessee agrees that with respect to the above required insurance, all insurance
policies are to contain or be endorsed to contain the following required provisions:
• Name the City and its officers, officials, employees, volunteers, and elected
representatives as additional insured by endorsement, as respects operations
and activities of, or on behalf of, the named insured performed under contract
with the City, with the exception of the workers' compensation policy;
• Provide for an endorsement that the "other insurance" clause shall not . apply to
the City of Corpus Christi where the City is an additional insured shown on the
policy;
• Workers' compensation and employers' liability policies will provide a waiver of
subrogation in favor of the City; and
• Provide thirty (30) calendar days advance written notice directly to City of any
suspension, cancellation, non - renewal or material change in coverage, and not
less than ten (10) calendar days advance written notice for nonpayment of
premium.
E. Within five (5) calendar days of a suspension, cancellation, or non - renewal of
coverage, Lessee shall provide a replacement Certificate of Insurance and
applicable endorsements to City. City shall have the option to suspend Lessee's
performance should there be a lapse in coverage at any time during this contract,
Failure to provide and to maintain the required insurance shall constitute a material
breach of this contract.
F, In addition to any other remedies the City may have upon Lessee's failure to provide
and maintain any insurance or policy endorsements to the extent and within the time
herein required, the City shall have the right to order Lessee to stop work hereunder,
and/or withhold any payment(s) which become due to Lessee hereunder until
Lessee demonstrates compliance with the requirements hereof.
G. Nothing herein contained shall be construed as limiting in any way the extent to
which Lessee may be held responsible for payments of damages to persons or
property resulting from Lessee's or its subcontractor's performance of the work
covered under this agreement:
Page 13 of 13
H. It is agreed that Lessee's insurance shall be deemed primary and non - contributory
with respect to any insurance or self insurance carried by the City of Corpus Christi
for liability arising out of operations under this agreement.
1. It is understood and agreed that the insurance required is in addition to and separate
from any other obligation contained in this agreement.