HomeMy WebLinkAboutC2014-352 - 11/18/2014 - Approved LEASE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND
CORPUS CHRISTI CHAMBER OF COMMERCE
STATE OF TEXAS §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This lease agreement ("Lease") is entered into by and between the City of
Corpus Christi, a Texas home-rule municipal corporation ("City"), acting through its duly
authorized City Manager, or his designee ("City Manager"), and the Corpus Christi
Chamber of Commerce.
WHEREAS, the City owns the McCampbell House located in Heritage Park at
1501 North Chaparral Street, Lot 2, Block 61, Beach Portion, Corpus Christi, Nueces
County, Texas, together with all Improvements thereon; ("Premises");
WHEREAS, Lessee has requested the use of the Premises for the purpose of
office space for its operations as the Corpus Christi Chamber of Commerce, upon the
conditions and covenants contained in this Lease; and,
WHEREAS, City desires to allow Lessee to use the Premises for this purpose.
NOW, THEREFORE, City and Lessee, in consideration of the mutual promises
and covenants contained herein, agree as follows:
Section 1 Definitions.
(A) City means the City of Corpus Christi, Nueces County, Texas, a home rule
municipal corporation.
(B) City Manager means the City's City Manager or the City Manager's designee.
(C) Council means the City's City Council.
(D) Director means the City's Director of Park and Recreation or the Director of Park
and Recreation's designee.
(E) Finance Director means the City's Director of Finance or the Director of
Finance's designee.
(F) Lease means this lease document, including all attached and incorporated
exhibits.
(G) Lessee means Corpus Christi Chamber of Commerce.
(H) Parks means the City's Park and Recreation Department.
2014-352
11/18/14
Ord. 030343
CC Chamber of Commerce INDEXED
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(I) Premises means Lot 2, Block 61, Beach Portion, Corpus Christi, Nueces
County, commonly known as the McCampbell House, located at 1501 North
Chaparral Street, in the City.
(J) Risk Manager means the City's Director of Risk Management or the Director of
Risk Management's designee.
Section 2. Purpose. The purpose of this Lease, between City and Lessee, is to enable
Lessee to utilize Premises for office space for its business operations. Lessee shall not
operate the Premises for any other purpose ' o t Director's prior written approval.
Section 3. Term. The City leases thejremi es, subject to all terms and conditions of
this Lease, to the Lessee on a tJ 'year term beginning October 10, 2014, effective
upon final City Council approval, unless sooner terminated as set out herein. Lessor
agrees Lessee may, after occupying Premises for not more than six months, terminate
this Lease and vacate the Premises if conditions at Premises are unsuitable for
purposes of Lessee.
Section 4. Acceptance of Premises Disclaimer:
A. LESSEE ACKNOWLEDGES THAT IT IS LEASING THE PREMISES "AS
IS" WITH ALL FAULTS AS MAY EXIST ON THE PREMISES, AND THAT NEITHER
LESSOR, NOR ANY EMPLOYEE OR AGENT OF LESSOR, HAS MADE ANY
REPRESENTATIONS OR WARRANTIES AS TO THE CONDITION OF SUCH
PREMISES. LESSEE HEREBY WAIVES ANY AND ALL CAUSES OF ACTION,
CLAIMS, DEMANDS, AND DAMAGES BASED ON ANY WARRANTY, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF
SUITABILITY FOR A PARTICULAR PURPOSE, ANY AND ALL WARRANTIES OF
HABITABILITY, AND ANY OTHER IMPLIED WARRANTIES NOT EXPRESSLY SET
FORTH IN THIS LEASE.
B. LESSEE ACKNOWLEDGES AND AGREES THAT LESSEE HAS BEEN
PROVIDED, TO ITS SATISFACTION, THE OPPORTUNITY TO INSPECT THE
PREMISES FOR ANY DEFECTS AS TO THE SUITABILITY OF SUCH PROPERTY FOR
THE PURPOSE TO WHICH LESSEE INTENDS TO USE THE PREMISES, AND IS
RELYING ON ITS OWN INSPECTION.
C. LESSEE ACKNOWLEDGES THAT ANY AND ALL STRUCTURES AND
IMPROVEMENTS EXISTING ON THE PREMISES ON THE COMMENCEMENT DATE,
IF ANY, ARE ACCEPTED "AS IS" WITH ANY AND ALL LATENT AND PATENT
DEFECTS AND THAT THERE ARE NO WARRANTIES, EXPRESS OR IMPLIED, BY
LESSOR WITH RESPECT THERETO. LESSEE ACKNOWLEDGES THAT IT IS NOT
RELYING UPON ANY REPRESENTATION, STATEMENT OR OTHER ASSERTION BY
LESSOR WITH RESPECT TO ANY EXISTING STRUCTURES OR IMPROVEMENTS,
BUT IS RELYING ON ITS EXAMINATION THEREOF.
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D. THE PROVISIONS OF THIS Section 4 SHALL SURVIVE THE
EXPIRATION OR EARLIER TERMINATION OF THIS LEASE.
Section 5. Contact Person/Lease Administrator. For this Lease, the City's contact
person and lease administrator is the Director.
Section 6. Lease Payments.
(A) For and in consideration of the rights and privileges herein granted, Lessee
agrees to pay the City, on a monthly basis, one thousand five hundred dollars per
month.
(B) All rental fees are due and payable on or before the 10th day of each month for
the term of this Lease. Payment must be made to the order of the City of Corpus
Christi and mailed to the City Collections Department, P. O. Box 9257, Corpus
Christi, TX, 78469, or delivered to City Hall at 1201 Leopard Street, Corpus
Christi, TX, 78401.
Section 7. Quiet Enjoyment. Lessee shall have peaceful and uninterrupted
possession of the Premises, subject to Lessee's payment of rent and Lessee's
compliance with the terms of this Lease, except during City approved events at
Heritage Park scheduled in accordance with Section 12 (C ) below, and maintenance at
Heritage Park.
Section 8. Parking.
(A) Lessee is given, during the term of this Lease, the right to designate up to eight
(8) parking spaces within the general parking area of Heritage Park. If Lessee
chooses to designate the parking spaces, the Director shall determine and
approve Lessee's method and manner of designation of the spaces. Lessee
shall bear any and all expense associated with designation of the parking
spaces.
(B) Lessee's designated parking spaces are for use by customers of the Premises
during Lessee's hours of operation only. At all other times when Lessee is not
open under normal operating hours, any member of the public can utilize the
designated parking spaces.
(C) Lessee's designated parking spaces are for use by passenger vehicles only and
must not be unreasonably utilized for purposes, such as loading and unloading
of equipment or supplies, by Lessee or Lessee's vendors or suppliers.
Section 9. Utilities.
(A) It is understood by and between the parties that scheduled, regular garbage
collection service is available to the Premises and that the provision of this
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service shall be the responsibility of Parks under the City's present Heritage Park
maintenance program.
(B) The cost to Lessee, for the provision of garbage collection service by the City, is
included and made a part of Lessee's monthly lease payment.
(C) Lessee shall deposit, or cause to be deposited, all garbage and debris generated
at the Premises into the garbage dumpster provided by City at the Premises.
Any garbage needs Lessee may determine are required at Premises, beyond
regular service, or in addition to existing park dumpster capacity, shall be the
responsibility of, and at the sole expense of, Lessee. Lessee may request that
City Director obtain a larger container (6 cubic yard approximately) from City
contractor for Lessee's use, with Lessee to pay City the monthly rate of the
difference between a four (4) cubic yard container and a six (6) cubic yard
container.
(D) The Premises is wired for telephone service; however, Lessee shall contract
separately with a telephone service provider of Lessee's choice for the provision
of active telephone service, which service is to be incurred at Lessee's sole
expense.
(E) The Premises is wired for electrical service and has a separate electric meter.
Lessee shall contract for electric service to the Premises. Lessee shall bear the
cost of all electricity used at the Premises for the term of this Lease.
Additionally, Lessee shall bear the cost for the use and maintenance of the
existing security alarm system in the Premises for the term of this Lease. Lessee
is responsible to contract for security alarm system monitoring at the Premises.
(F) Water and sewage service is available at the Premises, and the cost to Lessee,
for the provision of water and sewage service by the City, is included and made a
part of Lessee's monthly lease payment.
(G) Should Lessee require any modification to the provision of the enumerated
utilities in this section or require any additional utility service not herein covered
during the term of this Lease, Lessee shall submit a request, in writing, to the
Director for consideration and possible amendment of this Lease.
(H) Lessee shall pay for all utilities related to usage of Premises, excluding water and
sewage service as herein provided for, prior to the due date. Failure to pay any
utility bill(s) prior to the due date constitutes grounds for termination of this
Lease.
Section 10. Abandonment, Interruption of Utilities, Removal of Lessee's Property,
and Lockout.
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Chapter 93 of the Texas Property Code governs the rights and obligations of the parties
with regard to: (a) abandonment of the leased premises; (b) interruption of utilities; (c)
removal of Lessee's personal property; and (d) lock out of Lessee.
Section 11. Maintenance.
(A) The City will maintain the exterior of the Premises and adjacent park grounds,
including buildings and public parking lots in the vicinity of the Premises, subject
to sufficient annual budget appropriations. The City shall be responsible for
major repairs to the exterior of the Premises, subject to sufficient annual budget
appropriations, unless damage occasioned to the exterior is or was caused by
Lessee's negligence. It is further understood and agreed that the City shall
maintain the utility lines serving the Premises, subject to sufficient annual budget
appropriations.
(B) The City will repair and maintain the heating and cooling systems at the
Premises, subject to sufficient annual budget appropriations.
(C) The City will repair and maintain the electrical wiring system at the Premises,
subject to sufficient annual budget appropriations.
(D) Lessee covenants and agrees to maintain the interior of the Premises during the
term of this Lease, such maintenance to include, but not be limited to, interior
painting (in a neutral color preapproved by the Director) and keeping in good
repair the plumbing and light fixtures.
(E) Lessee shall be responsible for cleaning the interior of the Premises and will
supply paper goods and chemicals necessary for cleaning.
(F) During Lessee's normal business hours, City may, upon reasonable notice,
enter the Premises for any reasonable purpose, including but not limited to,
repairs, maintenance, alterations and showing the premises to prospective
tenants. City may access the Premises at any time for emergency repairs.
(G) City maintenance to the Premises is subject to sufficient annual budget
appropriations.
Section 12. Furniture, Fixtures, and Equipment.
(A) It is understood that Lessee will be responsible for furnishing and equipping the
Premises and that the City has no obligation to furnish any equipment or
furnishings for Lessee.
(B) All capital construction to the premises, such as installation of plumbing fixtures
remain the property of the City.
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Section 13. City Use and Special Events.
(A) City retains the right to use or cross the Premises with utility lines and
easements. City may exercise these rights without compensation to Lessee 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.
(B) Lessee acknowledges that Heritage Park premises are used for special events
which may occasionally interfere with Lessee's access to the Leased Premises
and parking space availability. Lessee shall not be entitled to any compensation,
in whatever form, either tangible or intangible, for such non-Lessee use. Lessor
agrees to provide Lessee with at least five (5) days notice of special events at
Heritage Park.
Section 14. Laws Affecting Operation of Premises and Performance.
(A) Lessee shall ensure that purpose of its use of the Premises is in accordance with
all applicable Federal, State, and local laws, ordinances, rules and regulations.
(B) Lessee shall bear the expense and responsibility of meeting all requirements for
acquiring all applicable licenses and permits related to its operations. Lessee
shall also bear the expense of meeting and complying with all health regulations
and Certificate of Occupancy requirements.
Section 15. Inspection. Any officer or authorized employee of the City may enter upon
the Premises, at all reasonable times and notice, to determine whether Lessee is
providing maintenance in accordance with and as required by above, or for any other
purpose incidental to City's retained rights of and in the Premises.
Section 16. Relationship of Parties. This Lease establishes a landlord/tenant
relationship, and none other, and this Lease must be construed conclusively in favor of
that relationship. In performing this Lease, both City and Lessee 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 shall
not be, nor be construed to be, the employees or agents of the other party for any
purpose whatsoever.
Section 17. Insurance.
(A) Lessee shall secure and maintain at Lessee's expense, during the term of this
Lease, insurance of the type and with the amount of coverage shown on the
Attachment, which is incorporated in this Lease by reference.
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(B) The Certificate of Insurance must be sent to the Risk Manager prior to occupancy
of and operations at the Premises. Lessee agrees to notify Lessor of any
substantive change to its insurance coverage.
(C) Lessee shall provide, during the term of this Lease, copies of all insurance
policies to the Risk Manager upon written request by the City Manager. The Risk
Manager shall retain the right to annually review the amount and types of
insurance maintained by Lessee, to require increased coverage limits, if
reasonably necessary in the interest of public health, safety, or welfare, and to
decrease coverage, if so warranted.
(D) In the event of any necessary increase, Lessee shall receive ninety (90) days
written notice prior to the effective date of the requirement to obtain increased
coverage. In the event alcoholic beverages are to be served or consumed on
any Premises covered by this Lease, the Lessee 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 or consumed.
(E) Lessee shall, prior to any addition or alteration to, in, on, or about the Premises,
obtain prior clearance, in writing, from the Risk Manager that the proposed
addition or alteration will not necessitate a change or modification in the existing
insurance coverage maintained by Lessee. This clearance is in addition to the
prior consent required by Section 19(a), as contained herein.
(F) The City carries the property and flood insurance on the building. Lessee is
responsible for insuring its own contents.
Section 18. Indemnity. In consideration of allowing Lessee to use the Premises,
Lessee ("Indemnitor") covenants to fully indemnify, save and hold harmless the
City, its officers, agents, representatives, and employees (collectively,
"Indemnitees") from and against any and all liability, loss, damages, claims,
demands, suits, and causes of action of any nature whatsoever asserted against
or recovered from City on account of injury or damage to person including,
without limitation on the foregoing, premises defects, workers'compensation and
death claims, or property loss or damage of any other kind whatsoever, to the
extent any injury, damage, or loss may be incident to, arise out of, be caused by,
or be in any way connected with, either proximately or remotely, wholly or in part:
(1) Lessee's performance pursuant to this Lease; (2) Lessee's use of the
Premises and any and all activities associated therewith pursuant to this Lease;
(3) the violation by Lessee, its officers, employees, agents, or representatives or
by Indemnitees or any of them, of any law, rule, regulation, ordinance, or
government order of any kind pertaining, directly or indirectly, to this Lease; (4)
the exercise of rights under this Lease; or (5) an act or omission on the part of
Lessee, its officers, employees, agents, or representatives or of Indemnitees, or
any of them, pertaining to this Lease, regardless of whether the injury, damage,
loss, violation, exercise of rights, act or omission is caused or is claimed to be
caused by the contributing or concurrent negligence of Indemnitees, or any of
them, but not if caused by the sole negligence of Indemnitees, or any of them,
unmixed with the fault of any other person or entity and including all expenses of
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litigation, court costs, and attorneys' fees, which arise, or are claimed to arise,
out of or in connection with the asserted or recovered incident.
Lessee covenants and agrees that, if City is made a party to any litigation against
Lessee or in any litigation commenced by any party, other than Lessee relating to
this Lease, Lessee shall, upon receipt of reasonable notice regarding
commencement of litigation, at its own expense, investigate all claims and
demands, attend to their settlement or other disposition, defend City in all actions
based thereon with legal counsel satisfactory to City, and pay all charges of
attorneys and all other costs and expenses of any kind whatsoever arising from
any said liability, injury, damage, loss, demand, claim or action.
Such indemnity provisions contained in this Section 18 herein apply to the extent
insurance (as approved by City in Section 17) may apply for protection of the City
and Lessee.
Section 19. Alterations.
(A) Lessee shall not make any alterations, additions, or improvements to, in, on, or
about said Premises, without the prior written consent of the City Director of
Parks and Recreation. Lessee must also obtain clearance from the Risk
Manager as required above.
(B) Lessee agrees not to harm the Premises beyond normal wear and tear.
(C) All approved alterations, improvements, and additions made by the Lessee upon
said Premises, which are permanent in nature, even if made at Lessee's own
expense, shall, if not removed by Lessee at any termination or cancellation
hereof, become the property of the City in fee simple without any other action or
process of law. Lessee agrees to be contractually and financially responsible for
repairing any and all damage caused by such removal. If items are installed in
such a manner as to become fixtures, such fixtures shall not be removed by
Lessee upon termination and shall become the property of the City.
Section 20. Signs.
(A) Lessee shall not exhibit, inscribe, paint, erect, or affix any signs, advertisements,
notices, or other lettering ("Signs") at, on, or about the Premises, or any part
thereof, without the Director's prior written approval.
(B) City may require Lessee to remove, repaint, or repair any Signs allowed. If
Lessee does not remove, repaint, or repair the Signs within ten (10) days of
Director's written demand, City may do or cause the work to be done, and
Lessee will pay City's costs within thirty (30) days of receipt of Director's invoice.
If payment is not timely made, the City may terminate this Lease upon ten (10)
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days written notice to Lessee. Alternatively, City may elect to terminate this
Lease after ten (10) days written notice to Lessee.
Section 21. Sublease and Assignment. Lessee understands and agrees that Lessee
shall not sublease the Premises or any part thereof without obtaining the prior written
consent of the City. Lessee shall not, in whole or in part, assign or transfer directly or
indirectly this Lease unless prior written approval has been obtained from the City.
Written consent or approval shall not be unreasonably withheld by Lessor.
Section 22. Default.
(A) The following constitute Events of Default under this Lease:
(i) failure to keep, perform, and observe any other promises, covenants and
conditions contained in this Lease.
(B) Upon the occurrence of any Event of Default, the City may, at its option, in
addition to any other remedy or right given hereunder or by law:
(i) give notice to Lessee that this Lease terminates upon the date specified in
the notice, which date will be no earlier than thirty (30) days after the
giving of such notice.
Section 23. No debts. Lessee shall not incur any debts or obligations on the credit of
the City during the term of this Lease.
Section 24. Notice.
(A) All notices, demands, requests or replies provided for or permitted under this
Lease by either party must be in writing and must be delivered by one of the
following methods: (i) by personal delivery; or (ii) by deposit with the United
States Postal Service as certified or registered mail, return receipt requested,
postage prepaid.
(B) Notice deposited with the United States Postal Service in the manner described
above will be deemed effective two (2) business days after deposit with the
United States Postal Service.
(C) All these communications must only be made to the following:
IF TO CITY: IF TO LESSEE:
City of Corpus Christi Corpus Chr ti Chpmber of Coxnmerce��
Park and Recreation Department Attn: J V r r 4.,A q
P. O. Box 9277 /5D / /l! , Cl 4 A44.4,4/
Corpus Christi, Texas 78469-9277 Corpus Christi, Texas 78401
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Attn: Director of Park and Recreation
(D) Either party may change the address to which notice is sent by using a method
set out above. Lessee shall notify the City of an address change within ten (10)
days after the address is changed.
Section 25. Nondiscrimination. Lessee covenants and agrees that it shall not
unreasonably discriminate nor permit discrimination against any person or group of
persons, with regard to employment and the provision of services at, on, or in the
Premises, on the grounds of race, religion, national origin, marital status, sex, age,
disability, or in any manner prohibited by the laws of the United States or the State of
Texas. The City hereby reserves the right to take such action as the United States may
direct to enforce this covenant.
Section 26. Modifications. No changes or modifications to this Lease may be made,
nor any provisions waived, unless the change or modification is made in writing and
signed by persons authorized to sign agreements on behalf of each party.
Section 27. Force Majeure. No party to this Lease shall be liable for delays or failures
in performance due to any cause beyond their control including, without limitation, any
delays or failures in performance caused by strikes, lock outs, fires, acts of God or the
public enemy, common carrier, severe inclement weather, riots or interference by civil or
military authorities. These delays or failures to perform shall extend the period of
performance until these exigencies have been removed.
Section 28. Surrender. Lessee acknowledges and understands that the lease of the
Premises to Lessee is expressly conditioned on the understanding that the Premises
must be surrendered, upon the expiration, termination, or cancellation of this Lease, in
as good a condition as received, reasonable use and wear, acts of God, fire and flood
damage or destruction where Lessee is without fault, excepted. Any reasonable costs
incurred for repairs or corrections for which Lessee is responsible under this Lease are
payable by Lessee to City as additional rental on the next rental payment date, or within
30 days written demand.
Section 29. Publication Costs. Lessee shall pay for the cost of publishing the Lease
description and related ordinance, if required by the City Charter, in the legal section of
the local newspaper.
Section 30. Interpretation. This Lease will be interpreted according to the Texas laws
that govern the interpretation of contracts. Venue lies in Nueces County, Texas, where
this Lease was entered into and will be performed.
Section 31. Captions. The captions utilized in this Lease are for convenience only and
do not in any way limit or amplify the terms or provisions hereof.
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Section 32. Casualty. If the Premises become damaged due to weather event, fire, or
other natural or man-made disaster, such that the Premises are not deemed safe for
occupation by the City Building Official, and repairs are not completed within 30 days of
the event of disaster, then either party may terminate this lease upon 30 days written
notice to the other party, without penalty.
Section 33. Termination. It is Lessee's responsibility to remove its personal property
from the Premises prior to termination or expiration of the Lease. Lessee agrees that
any of personal property remaining on the Premises after the termination or expiration
of the Lease automatically becomes City property without any notice, action, or process
of law, for disposition by the City as City deems appropriate in City Manager sole
discretion, with no compensation to Lessee. Lessee shall be invoiced for City's costs to
remove property from the Premises after termination or expiration of the Lease, and
Lessee shall pay said invoice within thirty (30) days of receipt.
Section 34. Entirety Clause. This Lease and the incorporated and attached exhibits
constitute the entire agreement between the City and Lessee for the purpose granted.
All other agreements, promises, representations, and understandings, oral or otherwise,
with reference to the subject matter hereof, 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 Lessee's operations and the Premises to be used in the
operations.
Section 35. Severability.
(A) If, for any reason, any section, paragraph, subdivision, clause, provision, phrase,
or word of this Lease or the application hereof 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 said term or provision to persons or circumstances
other than those as to which it is held illegal, invalid, or unenforceable, will not be
affected thereby, for it is the definite intent of the parties to this Lease that every
section, paragraph, subdivision, clause, provision, phrase or word hereof 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 thereby, and in lieu of each such illegal,
invalid, or unenforceable clause or provision, a clause or provision, as similar in
terms to such illegal, invalid, or unenforceable clause or provision as may be
possible and be legal, valid and enforceable, will be added to this Lease
automatically by the Court construing such clause or provision to be invalid.
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EXECUTED IN DUPLICATE, each of which shall be considered an original, on the 1\--
day of ipThkAotvc 2014.
ATTEST: CITY OF CORPUS CHRISTI
—24_!Zi2XX-C. `1: .L.12.7d-C"
Rebecca Huerta Ronald L. Olson
City Secretary City Manager
APPROVED AS TO LEGAL FORM this day of Se/9/e"? �`� , 2014.
By: AVA ket
Buck Brice t nu ice".
Assistant City Attorney
for City Attorney sY COUNCIL
--aPVSES
LESSEE: CORPUS CHRIS HAMBER troAMERCE
By: //-- M.1
Name: t---a• 3`74` ETC tA/A-4 elf
Title: iite 5 C 6-7-0
Date: SeP -Pwk --ejt / 2 20.4 y
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ATTACHMENT
INSURANCE REQUIREMENTS
I. LESSEE'S LIABILITY INSURANCE
A. Lessee shall not commence work under this agreement until all insurance required herein has been
obtained and approved by the City's Risk Manager or designee. Lessee must not allow any sub-
lessee to commence work until all similar insurance required of the sub-lessee has been so
obtained.
B. Lessee shall furnish to the Risk Manager or designee two (2) copies of Certificates of Insurance,
with applicable policy endorsements showing the following minimum coverage by an insurance
company(s) acceptable to the Risk Manager or designee. The City must be listed as an additional
insured for the General Liability policy, Liquor Liability policy and Business Auto Liability
policy, and a waiver of subrogation is required for all applicable policies.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-Day Notice of Cancellation required on all Bodily injury and Property Damage
certificates or by policy endorsement(s) Per Occurrence/ aggregate
COMMERCIAL GENERAL LIABILITY $1,000,000 Per Occurrence
1. Broad Form $2,000,000 Aggregate
2. Premises—Operations
3. Products/Completed Operations Hazard
4. Contractual Liability
5. Broad Form Property Damage
6. Independent Lessees
7. Personal and Advertising Injury
8. Professional Liability(if applicable)
9. Underground Hazard (if applicable)
10. Environmental (if applicable)
BUSINESS AUTOMOBILE LIABILITY $1,000,000 Combined Single Limit
1. Owned
2. Hired &Non-owned
3. Rented & Leased
LIQUOR LIABILITY $1,000,000 Per Occurrence
WORKERS' COMPENSATION Which Complies With The Texas Workers'
(For Paid Employees) Compensation Act And Paragraph II Of
This Exhibit.
EMPLOYER'S LIABILITY $500,000/ $500,000/ $500,000
PROPERTY INSURANCE Lessee shall be responsible for insuring all owned,
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rented or leased real and personal property for all perils.
C. In the event of accidents of any kind related to this project, Lessee shall furnish the Risk Manager
with copies of all reports of such accidents within ten (10) days of the accident.
II. 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 will be promptly met. An "All States endorsement shall be included
for Companies not domiciled in Texas.
B. 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. Best's rating of no less than A- VII.
C. Lessee shall be required to submit 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 Management and;
Director, Parks and Recreation Department
P.O. 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:
• List the City and its officers, officials, employees, volunteers, and elected representatives
as additional insured by endorsement, or comparable policy language, as respects to
operations, completed operations and activities of, or on behalf of, the named insured
performed under contract with the City.
• 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
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• 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. 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 subLessee's performance of the work covered under this
agreement.
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 and completed operations and activities under this
agreement.
I. It is understood and agreed that the insurance required is in addition to and separate from
any other obligation contained in this agreement.
2014 ins req.
Parks and Recreation Department
Lease Agreement with Corpus Christi, Chamber of Commerce, McCampbell House
7/21/2014 ds Risk Mgmt.