HomeMy WebLinkAboutC2015-369 - 8/11/2015 - Approved LEASE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI
AND
STERLING AIR SERVICE
This lease agreement (the "Lease") is made by and between the City of Corpus Christi
("City"), acting by and through its City Manager or his designee ("City Manager"), and Sterling
Air Service, LLC ("Lessee"), a Texas limited liability company.
WHEREAS, the City owns the Corpus Christi International Airport ("Airport") located in
the city of Corpus Christi, Nueces County, Texas, and has authority to lease land and
improvements at the Airport;
WHEREAS, the Airport is managed by the Director of Aviation ("Aviation Director");
WHEREAS, the parties desire to enter into this Lease for land and improvements, to
include use of office space, hangar space, and parking spaces for the purpose of facilitating the
provision of Lessee's aeronautical services; and,
NOW, THEREFORE, in consideration of the terms, conditions, and mutual covenants
contained in this Lease, the Parties agree as follows:
Section 1. Premises. City leases to the Lessee the real property and existing improvements
as depicted in the attached Exhibits A and B ("Premises"), such exhibits being incorporated by
reference into this Lease, and physically located at 514 Hangar Lane, Corpus Christi, Nueces
County, Texas. The Premises is generally described as follows: approximately 2,000 square
feet of office space; approximately 5,000 square feet of hangar space; and approximately 7991
square feet including 10 parking spaces of uncovered parking located closest to the office
space. The Premises is designated and known, for the sole purpose of locating and identifying
the leased area granted by this instrument, as the"Sterling Air Service Facility."
Section 2. Term. The term of this Lease is for one year and six months and commences upon
final approval by the City's City Council and execution of this instrument by the City Manager
("Effective Date"). The term may be extended by mutual consent on a month-to-month basis not
to exceed 18 months unless written notice is provided by either party to the other at least 60
days prior to the expiration of the then-current occupancy term.
Section 3. Intentionally deleted.
Section 4. Rent.
A. So long as Lessee continually uses the entire Premises solely for Lessee's
aeronautical use, annual rent for the Premises is as shown in Exhibit B, with the initial monthly
payment being due on the Effective Date of this Lease and subsequent rental payments of
1112th the annual amount due on the 1st of each month following the expiration of the initial
month of the Lease. Lessee may choose to pay the rent due for the term in advance at any
time. Notwithstanding the rent rates set out in Exhibit B, the rent amounts are subject to
adjustment under subsections B and C of this section.
2015-369
8/11/15
Ord. 030575
Sterling Air Service
• INDEXED
B. Rental rates for all Airport real properties are adjusted on a five-year cycle and based
on a fair market appraisal conducted by the City. The next appraisal is scheduled to be
completed on or about November 18, 2016. The City reserves the right to adjust the rent in
accordance with its adopted policy or Federal Aviation Administration ("FAA") requirements. For
purposes of determining the fair market value by appraisal, the values determined by the
appraiser will be final.
C. Adjusted rental rates are effective sixty (60) days from completion of the final
appraisal.
D. Notwithstanding Section 12 of this Lease, Lessee has agreed to repair the roof of the
Premises within the first month of occupancy. Repair costs are presently unknown but estimated
to be approximately $11,626. Should roof repairs exceed $12,000, Lessee must obtain advance
approval from the Aviation Director prior to incurring any additional costs related to the roof. If
roof repairs are completed by Lessee, the City agrees to abate monthly rent payments in lieu of
City reimbursement until final cost of repairs are recovered by Lessee.
E. If Lessee desires to make additional repairs affecting the structural integrity of the
Premises in lieu of the monthly rent amount due, Lessee must make an advance request prior
to any work being performed and provide justification in writing, along with a written estimate, to
the Aviation Director for written approval.
Section 5. City and Lessee Representatives. The City Manager designates the Aviation
Director as agent to receive all rent, notices, and reports due under this Lease. The contact
person for the Lessee is Shawn Morgan.
Section 6. Use of Premises.
A. Lessee shall have the right to use and occupy the Premises solely for the operation
of Lessee's aeronautical services and shall use the Premises for no other purpose without the
express written consent of the Aviation Director.
B. Lessee may not use or occupy, permit the Premises to be used or occupied, nor do or
permit anything to be done in, on, or at the Premises in a manner that would, in any way, void or
make voidable any insurance then in force with respect to the Premises or operations at the same
or that would make it impossible to obtain the insurance required to be furnished by Lessee under
this Lease.
C. Lessee will not make any unlawful use of the Premises nor permit any unlawful use
thereof and will not commit, or permit anyone else to commit, any act which is a nuisance or
annoyance to the City or adjacent property owners or tenants, or which might, in City's sole
judgment, appreciably damage City's goodwill or reputation or tend to injure or depreciate the value
of the Premises or any improvements located thereon.
D. City Temporary Use. Lessee acknowledges that the City reserves the right to
temporarily use the Premises, at no cost to the City, as a pre- or post-emergency evacuation,
storage, or operations facility if deemed necessary by the City Manager. The Lessee also
agrees to allow the City to temporarily use the Premises for special events as may be requested
in advance and in writing by the Aviation Director.
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E. City is not required to make any expenditure nor incur any obligation or liability of any
kind whatsoever in connection with the financing, construction, maintenance, or repair of the
Premises.
F. Partial Destruction. If the Premises is partially damaged due to acts of God, fire, or other
casualty to the extent that Lessee cannot use that portion of the Premises for its intended purpose,
then, at Lessee's option, this Lease may be suspended or terminated until the damage is repaired.
If the Lease is suspended, Lessee and City will mutually agree on a time period for Lessee to
repair the damages to the Premises. If the Lease is terminated, the rent will be abated from the
date of the casualty, provided, however, that Lessee must use its insurance proceeds to repair or
replace the damaged Premises. Any remaining insurance proceeds after all repair costs have
been expended and the Premises restored will be paid to Lessee. The City Manager is the sole
judge of the extent of damage to the Premises.
Section 7. Parking. Parking space is available adjacent to the office space, is as shown in
Exhibit B, on an exclusive basis and may be used for parking cars and other passenger motor
vehicles used by the Lessee and its customers, guests, and patrons and persons or companies
doing business with Lessee. Lessee acknowledges that use of the parking space shall fully
comply with all of the Airport's rules and regulations for parking and vehicle usage at the
Premises and adjacent parking areas and shall require users, customers, patrons, and guests of
Lessee to do so as well.
Section 8. Signs. Lessee may install City ordinance compliant signs on the Premises at its
sole cost; provided, however, that the Lessee has obtained the Aviation Director's prior written
consent as to the size, type, design and location of these signs or other corporate identification,
which consent shall not be unreasonably withheld or delayed.
Section 9. Right to Amend. If the FAA or its successor agency requires modifications or
amendments to this Lease as a condition precedent to the granting of funds to the City for
Airport improvements, Lessee agrees to consent to the modifications or amendments to the
Lease as may be reasonably required, provided, however, Lessee will not be required to pay
any increased rent, change the use of the Premises, or accept a relocation or reduction in size
of the Premises until Lessee and Airport have fully executed an amendment to this Lease that is
mutually satisfactory to both parties regarding any terms or conditions of this Lease affected by
said actions of the FAA.
Section 10. Subordination to US/FAA Requirements. This Lease is subordinate to the
provisions of any existing or future agreement between the City, acting through the Airport, and
the United States of America relating to the operation or maintenance of the Airport, where the
execution of said agreement(s) is required as a condition to the expenditure of federal funds for
the development of the Airport. If the effect of said agreement(s) with the United States, either
under this Section 10 or under Section 9 above, is to remove any or all of the Premises from the
control of Airport or to substantially destroy the value of the Premises, then this Lease shall
terminate immediately without any further obligation on part of City to Lessee.
Section 11. Development of Improvements.
A. Lessee shall not construct improvements upon the Premises without the prior written
approval of the Aviation Director and the City's Director of Engineering Services. Where
required by law, approval of the City is subject to the concurrence of the FAA. Any additional
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improvements must substantially comply with the plans and specifications approved by the City
and FAA, if applicable.
B. The parties acknowledge that the City has plans to construct improvements adjacent
to the Premises that might include office spaces, hangars, wash racks, and self-fueling tank
areas but makes no claims or promises as to size or completion date of the improvements.
C. ANY APPROVALS BY CITY UNDER THIS ARTICLE INCLUDING, BUT NOT
LIMITED TO, APPROVALS OF PLANS AND SPECIFICATIONS, INSPECTION OF WORK,
DESIGN, OR CONSTRUCTION ARE NOT TO BE CONSTRUED AS A REPRESENTATION,
WARRANTY, OR STATEMENT AS TO THE QUALITY, SOUNDNESS, OR SAFETY OF THE
DESIGN AND CONSTRUCTION OF ANY OF THE IMPROVEMENTS (INCLUDING, WITHOUT
LIMITATION, THE EXISTING IMPROVEMENTS) OR FACILITIES RELATED THERETO.
D. When required by the City, Lessee will furnish to the City two sets of complete plans
and specifications for improvements proposed to be placed or constructed on the Premises, and
no work will be done without prior written approval of such plans by the City, acting through its
Aviation Director and its Director of Engineering Services.
E. Upon termination of this Lease, ownership of the improvements constructed by
Lessee on the Premises reverts to the City free and clear of all liens, claims, and other
encumbrances or adverse interest in the Premises or the Improvements located thereon.
Section 12. Lessee's Repair and Maintenance Obligations.
A. Premises. Lessee, at its own expense, shall maintain the Premises and
improvements in good appearance and in a first-class, safe condition. Lessee shall maintain all
leasehold improvements on the Premises (including, without limitation, parking lots, sidewalks,
roofs, walls, partitions, floors, ceilings, windows, doors, and glass, and all furnishings, fixtures,
and equipment therein). Lessee shall provide janitorial service and maintenance to keep the
interior and exterior of the Premises and improvements in a clean, attractive, and sanitary
condition at all times. Any landscaping must be well-maintained and kept in a neat and tidy
condition by the Lessee. Lessee shall repair any and all damage caused to real and personal
property of City occurring on the Premises as a result of the willful or negligent acts or
omissions of Lessee, its officers, employees, agents, guests, or invitees.
B. Quality of Maintenance. It is the intent of the City and Lessee that the Premises
and improvements will be repaired and maintained in a manner that shall keep the
Improvements intact, in good repair, and in a condition so that said Improvements will be usable
at the end of the Lease. Lessee must comply with the maintenance obligations and with all-
applicable governmental laws, rules, or regulations. The Aviation Director is the sole judge of the
quality of Lessee's maintenance, which must be reasonable and consistent with other
properties. The Aviation Director may at any time, during City's normal business hours, upon
prior notice unless an emergency exists, enter upon the Premises to determine if the
maintenance requirements of this Lease are being complied with by Lessee. The Aviation
Director must notify Lessee in writing of any default in maintenance or repair. If the required
maintenance or repair in the Aviation Director's notice to Lessee is not commenced within 10
business days after receipt of such written notice, or is not diligently prosecuted to completion,
the Aviation Director may, but is not obligated to do so, enter upon the Premises and perform
the subject maintenance or repair. Lessee agrees to reimburse the Airport for its cost plus a
15% administrative fee within 30 days after the Aviation Director's written demand therefore,
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together with copies of all paid receipts for such repairs and maintenance. Lessee will develop,
within 30 days of execution of this Lease, a preventative maintenance plan regarding the
improvements and provide a copy to the Aviation Director.
C. Correct Hazards. Lessee must immediately correct or cause to be corrected any
hazardous or potentially hazardous condition on the Premises upon knowledge thereof, or after
receipt of notice from the Aviation Director. At the Aviation Director's reasonable discretion, the
operations in the Premises, or affected portion of the Premises, may be restrained or stopped
until the hazardous or potentially hazardous condition is removed or corrected.
Section 13. Security. Lessee, its officers, employees, agents, contractors, and invitees must
comply with all applicable federal and local security regulations, as the same may be amended.
To the extent allowed by law, Lessee covenants to indemnify and hold harmless
City, its officers, and employees from any charges, fines, or penalties that may be
assessed or levied by the FAA or Transportation Security Administration by
reason of the negligent or intentional failure of Lessee, its officers, employees,
agents, contractors, or invitees to comply with security regulations, regardless of
whether the fine, charge, or penalty is levied against the City or the Lessee.
Section 14. CFR Part 77 Requirements. Lessee covenants to comply with the notification
and review requirements set out in Part 77 of the FAA Regulations 14 CFR Part 77, as
amended, if Lessee plans to construct or modify any structure, antenna, or building located on
the Premises or to be constructed on the Premises as an Improvement.
Section 15. Control of Structures. Lessee shall not erect nor permit the erection of any
structure, antenna, or building, nor permit the growth of any tree on the Premises, which has its
highest point above a mean sea level elevation established by FAA and the City as a height
limitation on said structure, antenna, building, or object. The City may enter the Premises and
remove the encroaching structure, antenna, building, or object without notice and at Lessee's
expense plus an additional administrative charge of 15%.
Section 16. Aerial Approaches. The Aviation Director may take any action necessary to
protect the Airport's aerial approaches against obstruction, including the right to prevent Lessee
from erecting or permitting to be erected any building or structure on or adjacent to the Airport
which, in the Aviation Director's opinion, would limit the usefulness of the Airport or constitute a
hazard to aircraft.
Section 17. Hazardous Substances and Materials.
A. For the purposes of this Lease, "hazardous substance or material" means and refers to
one or more of the following:
1) Asbestos;
2) Any substance, material or waste defined as a "hazardous waste" pursuant to Section
1004 of the Resource Conservation and Recovery Act(42 U.S.C. Section 6901, et. seq.);
3) Any substance, material or waste defined as a "hazardous substance" pursuant to
Section 101 of the Comprehensive Environmental Response, Compensation and Liability
Act(42 U.S.C. Section 9601, et. seq.);
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4) Any substance, material or waste defined as a "regulated substance" pursuant to
Subchapter IX of the Solid Waste Disposal Act(42 U.S.C. Section 6991, et. seq.); and
5) Any substance, material or waste which is reasonably considered by the City to pose an
actual or potential threat to persons or property in, around, or on the Premises.
B. Lessee shall comply with all environmental laws, rules, regulations, orders and
permits applicable to the use of the Premises and improvements including, but not limited to,
required National Pollutant Discharge Elimination System Permits and all applicable laws
relating to the use, storage, generation, treatment, transportation, or disposal of hazardous or
regulated substances. Except for the hazardous substances governed by and transported in full
compliance with the transportation laws of the state or federal government, Lessee must not
knowingly use, store, generate, treat, transport, or dispose of any hazardous or regulated
substances, materials, or waste on or near the Premises without the Aviation Director's prior
written approval and without first obtaining all required permits and approvals from all authorities
having jurisdiction over the operations conducted on the Premises. No fuel storage tanks shall
be located or permitted on the Premises.
C. If Lessee determines that a threat to the environment including, but not limited to, a
release, discharge, spill or deposit of a hazardous substance or regulated substance has
occurred or is occurring which affects or threatens to affect the Premises or the persons,
structures, equipment, or other property upon the Premises or the Airport, Lessee must
immediately notify by oral report in person or by telephone, to be promptly confirmed in writing,
the Aviation Director as required by law or regulation. Lessee must cooperate fully with the
Aviation Director in promptly responding to, reporting, and remedying a threat to the
environment including, without limitation, a release or threat of release of a hazardous or
regulated substance into the drainage system, soil, ground or surface water, waters, or
atmosphere in accordance with applicable law or as authorized or approved by any federal,
state, or local agency having authority over environmental matters.
D. Lessee shall keep a readily accessible file of Materials Safety Data Sheets ("MSDS")
for each hazardous material or substance on the Premises or transported, in accordance with
federal and state transportation laws, which file must be posted and immediately available to
any Airport employee who responds to a report of a discharge of a hazardous substance or
material on the Premises. Lessee will require any operator of the facilities on the Premises to
use best efforts to determine which hazardous substance or material was accidentally
discharged and ensure that the MSDS sheet is available for the first responders to the
Premises.
E. Lessee will cause prompt remediation and the payment of all costs associated with
any action or inaction of Lessee that directly or indirectly prevents the City, acting through the
Airport, from materially conforming to all then applicable environmental laws, rules, regulations,
orders, or permits relating to the Premises. The rights and obligations set forth in this section
shall survive the expiration or earlier termination of this Lease.
F. Lessee shall furnish to the Aviation Director, within five days of receipt by Lessee,
copies of any and all notices or correspondence directed to Lessee or any other party at the
Premises from any governmental entity, other entity, or person indicating a violation or possible
violation of any laws, rules, or regulations including, without limitation, any law, rule, or
regulation regarding hazardous materials or substances (as such term is defined in this Lease).
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Section 18. Nondiscrimination/Affirmative Action.
A. Nondiscrimination—General. Lessee for itself, and as a requirement for any
sublessee, their personal representatives, successors in interest, and assigns, as a part of the
consideration hereof covenants that: (1) no person on the grounds of race, creed, color, religion,
sex, age, national origin, handicap, or political belief or affiliation will be excluded from
participation in, denied the benefits of or otherwise be subjected to discrimination in the use of
the Premises; (2) in the construction of any improvements on, over, or under the Premises and
the furnishing of services thereon, no person on the grounds of race, color, religion, sex, age,
national origin, handicap, or political belief or affiliation will be excluded from participation in,
denied the benefits of, or otherwise be subject to discrimination; (3) Lessee will cause to the
best of its ability the Premises and Improvements to be in compliance with all other
requirements imposed by or pursuant to 14 CFR Part 152, Subpart E Non Discrimination in Aid
Program and Title VI of the Civil Rights Act of 1964 and 49 CFR, Subtitle A, Part 21,
Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as
said Title and Regulations may be amended, and with other applicable state or federal laws or
regulations, as amended.
B. Nondiscrimination—Business Owner. This agreement is subject to the
requirements of the U.S. Department of Transportation's regulations, 49 CFR Part 23. The
concessionaire or contractor (Lessee) agrees that it will not discriminate against any business
owner because of the owner's race, color, national origin, or sex in connection with the award or
performance of any concession agreement, management contract, or subcontract, purchase or
lease agreement, or other agreement covered by 49 CFR Part 23. The concessionaire or
contractor (Lessee) agrees to include the above statements in any subsequent concession
agreement or contract covered by 49 CFR Part 23 that it enters and causes those businesses to
similarly include the statements in further agreements.
C. Remedy for Breach. If the Lessee is found by a final verdict of a court of competent
jurisdiction to have deliberately breached a non-discrimination covenant, or to have permitted
any sublessee to deliberately breach a non-discrimination covenant, the City may immediately
enforce the remedies directed by the Court's decision, which may include the City's right to
reenter the Premises, retake possession thereof, and terminate the Lease. This provision is not
effective until the procedures of Title 49, Code of Federal Regulations, Part 21 are completed,
including exercise of any rights to appeal.
D. Affirmative Action. Lessee shall cause to be implemented an affirmative action
program as required by 14 CFR Part 152, Subpart E, to provide (i) that no person on the
grounds of race, creed, color, religion, sex, age, national origin, handicap, or political belief or
affiliation is excluded from participating in any employment activities covered in 14 CFR Part
152, Subpart E; (ii) that no person will be excluded on these grounds from participating in or
receiving the services or benefits of any program or activity covered by that subpart; (iii) that
third parties otherwise retained by Lessee shall provide similar assurances to Lessee to
undertake affirmative action programs and to require assurances from their sub-organizations,
as required by 14 CFR Part 152, Subpart E. Lessee, at no expense to the City, shall comply
with any applicable requirements of the Americans with Disabilities (ADA) as it may be
amended, with respect to the Premises and its improvements.
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Section 19. Compliance with Laws.
A. General. Lessee covenants to promptly observe, comply with and execute, and
shall cause any sublessee to promptly observe, comply with and execute, the provisions of any
and all present and future governmental laws, ordinances, rules, regulations, requirements,
orders and directions applicable to the use and occupancy of the Premises. A material breach
of this covenant, which is not remedied within any permitted cure period, may be cause for
City's exercising its rights under the Lease. During any period of Lessee's good faith challenge
to any such laws, ordinances, rules, regulations, requirements, orders and directions in a court
of competent jurisdiction, Lessee's inaction shall not be deemed a breach of this Lease.
B. Federal. Lessee shall comply and shall require any sublessee to comply with all
applicable federal laws, rules, and regulations including, without limitation, the Drug Free
Workplace Act, the Violence in the Workplace Act, the Americans with Disabilities Act, and any
other acts the U.S. Congress passes that apply to the uses and operations at the Premises.
C. State. Lessee shall comply with all applicable laws, rules, and regulations of the
State of Texas.
D. Local. Lessee shall comply with all applicable City ordinances, and rules and
regulations promulgated by the Aviation Director.
Section 20. Acceptance of Premises Disclaimer.
LESSEE ACKNOWLEDGES THAT IT IS LEASING THE PREMISES "AS IS" WITH
ALL FAULTS INCLUDING, BUT NOT LIMITED TO, ANY AND ALL POLLUTANTS,
ASBESTOS, UNDERGROUND STORAGE TANKS, AND ANY OTHER HAZARDOUS
MATERIALS AS MAY EXIST ON THE PREMISES AND THAT NEITHER CITY NOR
ANY EMPLOYEE OR AGENT OF CITY HAS MADE ANY REPRESENTATIONS OR
WARRANTIES AS TO THE CONDITION OF SUCH PREMISES. 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 PUT THE PREMISES AND IS RELYING ON ITS OWN
INSPECTION. THIS LEASE IS SUBJECT TO ALL COVENANTS, EASEMENTS,
RESERVATIONS, RESTRICTIONS, AND OTHER MATTERS OF RECORD AND NOT
OF RECORD APPLICABLE TO THE PREMISES.
Section 21. Fiscal Year. By execution of this Lease, Lessee acknowledges that the
continuation of any contract after the close of any fiscal year of the City, which fiscal year ends
on September 30 annually, is subject to budget approval and sufficient appropriations by the
City Council for such contract item as an expenditure in the next fiscal budget. The City does
not represent nor warrant to Lessee that a budget item providing for this Lease in any future
fiscal budget will be actually adopted, as that determination is within the sole discretion of the
City Council at the time of adoption of each fiscal budget.
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Section 22. City's Obligations.
A. City agrees to operate the Corpus Christi International Airport as a public airport
during the term of this Lease, subject to the assurances given by the City to the United States
Government.
B. In exchange for Lessee's promise to maintain the Premises, the City agrees to make
water and wastewater services available to the Premises property line on the same basis as it is
made available to all businesses operating at the Airport. Lessee must procure and pay for all
utility usage, such as gas, wastewater, cable, Internet, and telephone charges, that are supplied
to the Premises during the term of the Lease as the charges become due and payable. IN NO
EVENT WILL THE CITY BE LIABLE FOR ANY INTERRUPTION OR FAILURE IN THE
SUPPLYING OF ANY UTILITIES TO THE PREMISES, INCLUDING THOSE WHICH THE CITY
HAS AGREED TO FURNISH.
C. The City shall provide reasonable notice if ingress and egress to the Premises will
be interrupted due to maintenance. If City causes Lessee's ingress or egress to be interrupted
for more than 24 hours, the City will consider rent reduction for days of non-use.
Section 23. Insurance. Lessee must provide insurance in the amounts and types of
coverages required by the City's Risk Manager or the Risk Manager's designee ("Risk
Manager") as are set out in the attached Exhibit C, the content of which is incorporated into this
Lease as if set out herein in its entirety. Lessee must cause certificate(s) of insurance to be
provided to the Aviation Director and Risk Manager not less than 30 days prior to the annual
anniversary date of the Effective Date of this Lease. The Risk Manager will annually assess the
level and types of insurance required by the Lessee. The Risk Manager may increase or
decrease the level or types of insurance by giving Lessee notice not less than 60 days prior to
the annual anniversary date of the Effective Date of the Lease. Lessee shall have 30 days to
procure the changed insurance and provide written proof of insurance to the Aviation Director
and Risk Manager.
Section 24. Indemnification.
A. LESSEE SHALL INDEMNIFY, HOLD HARMLESS, AND DEFEND
THE CITY OF CORPUS CHRISTI AND ITS OFFICERS, EMPLOYEES,
REPRESENTATIVES, AND AGENTS (COLLECTIVELY, "INDEMNITEES")
FROM AND AGAINST ANY AND ALL LIABILITY, LOSS, CLAIMS, DEMANDS,
LIENS, JUDGMENTS, FINES, PENALTIES, AWARDS, LAWSUITS, CAUSES
OF ACTION, AND EXPENSES OF ANY NATURE WHATSOEVER INCLUDING,
BUT NOT LIMITED TO, STRICT LIABILITY CLAIMS AND ALL EXPENSES OF
LITIGATION (INCLUDING MEDIATION AND ARBITRATION), COURT COSTS,
REASONABLE ATTORNEYS' FEES, AND EXPERT WITNESS FEES, ON
ACCOUNT OF PERSONAL INJURIES (INCLUDING WORKERS'
COMPENSATION AND DEATH CLAIMS), PROPERTY LOSS OR DAMAGE,
OR ANY OTHER KIND OF DAMAGES, WHICH ARISE OR ARE CLAIMED TO
ARISE OUT OF OR IN CONNECTION WITH THIS LEASE OR THE
PERFORMANCE OF THIS LEASE, REGARDLESS OF WHETHER THE
INJURIES, DEATH, OR DAMAGES ARE CAUSED OR ARE CLAIMED TO BE
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CAUSED BY THE CONCURRENT OR CONTRIBUTORY NEGLIGENCE OF
INDEMNITEES, BUT NOT IF BY THE SOLE NEGLIGENCE OF INDEMNITEES
UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR PARTY. LESSEE
MUST, AT ITS OWN EXPENSE, INVESTIGATE ALL CLAIMS AND DEMANDS,
ATTEND TO THEIR SETTLEMENT OR OTHER DISPOSITION, DEFEND ALL
ACTIONS BASED THEREON WITH COUNSEL SATISFACTORY TO
INDEMNITEES, AND PAY ALL CHARGES OF ATTORNEYS AND ALL OTHER
COSTS AND EXPENSES OF ANY KIND ARISING FROM OR OUT OF ANY OF
SAID LIABILITY, LOSS, CLAIMS, DEMANDS, SUITS, CAUSES OF ACTION,
OR DAMAGES. THE INDEMNIFICATION OBLIGATIONS OF LESSEE UNDER
THIS SECTION SURVIVE THE EXPIRATION OR EARLIER TERMINATION OF
THIS LEASE.
B. Notice of Claim or Action. Notwithstanding the above indemnifications, Lessee
must give the Aviation Director and Risk Manager written notice of any accident or other matter
covered under this section and forward to the Aviation Director and Risk Manager copies of
every notice, demand, claim, summons, or other process communication received within 10
days of Lessee's receipt of same.
Section 25. Assignment and Sublease.
A. Lessee shall not assign this Lease or sublease the Premises or any part thereof or
mortgage, pledge, or hypothecate its leasehold interest, or grant any concession or license
within the Premises without the express prior written consent of the City, such consent being
within the sole discretion of the City, and any attempt to do any of the foregoing shall be void
and of no effect. In the event of any such assignment or sublease, attempted assignment or
sublease, or should Lessee, in any other nature of transaction, allow or attempt to allow anyone
to occupy the Premises or any portion thereof, City shall upon such occurrence have the right
and option to terminate and cancel this Lease effective upon 10 days written notice to Lessee
given by City at any time thereafter, and City may terminate and cancel either as to the entire
Premises or as to only the portion thereof which Lessee assigned, subleased, attempted to
assign or sublease, or otherwise allowed some other party's occupancy. Lessee shall be liable
for payment of the fair market value of rents for the portion of the Premises used without
consent of the City, such fair market value to be determined by resort and review of the Airport's
current property appraisal report. In the event the City elects to terminate this Lease as to the
aforesaid portion of the Premises, then the rent as to the remainder of the Premises may
thereafter be reduced as appropriate and as determined by the City. This prohibition against
assigning, subletting, attempting to assign or sublet, and allowing or attempting to allow
occupancy by another without the City's consent is to be construed to include a prohibition
against any assignment, subletting, or occupancy by operation of law.
B. In any case where the City consents to a sublease of the leasehold, Lessee will remain
liable for the performance of all terms, conditions, covenants, duties, and obligations of this Lease
including, without limitation, the obligation to pay any and all sums required by this Lease to be
paid and faithful adherence and performance of all indemnity provisions provided in this Lease.
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Section 26. Termination.
A. Termination by Lessee. Without limiting any other rights and remedies to which
Lessee may be entitled by common law, statutory law, or as elsewhere provided in this Lease, this
Lease may be terminated by Lessee at any time upon the occurrence of one or more of the
following events:
1) The City's permanent abandonment of the Airport;
2) The lawful assumption by the U. S. Government, or any authorized agency thereof, of
the operation, control, or use of the Airport, or of any substantial part or parts thereof, which
substantially restricts the Lessee from operating at the Premises for a minimum of 180
calendar days;
3) The issuance by any court of competent jurisdiction of an injunction that prevents or
restrains the use of the Airport or the Premises that continues for at least 180 days; or
4) The default by the City in the performance of any covenant or obligation to be performed
by the City and such failure to remedy the default continues for a period in excess of 60
days after receipt from Lessee of written notice to remedy the same.
B. Termination by City. Without limiting any other rights and remedies to which City may
be entitled at common law, statutory law, or as elsewhere provided in this Lease, this Lease may
be terminated by the City if Lessee:
1) Is in arrears in paying the rent, fees, or other charges due under the Lease for 10
business days after written notice;
2) Becomes insolvent; takes the benefit of any present or future insolvency statute; makes
a general assignment for the benefit of creditors; files a voluntary petition in bankruptcy or
a petition or answer seeking a reorganization or the readjustment of its indebtedness
under the federal bankruptcy laws or under any other law or statute of the United States
or of any state thereof; or consents to the appointment of a receiver, trustee, or
liquidator of all or substantially all of its property;
3) Has a petition filed under any part of the federal bankruptcy laws, or an action sought
under any present or future insolvency law or statute, against Lessee and which is not
dismissed within 30 days after the filing date;
4) Abandons the Premises ["abandon" shall mean failing to use the Premises for
aeronautical activities and services as defined in current FAA Order 5190.68 FAA Airport
Compliance Manual]for a period in excess of 90 days; or
5) Otherwise defaults in the performance of any of other material covenant of this Lease
and continues the default for thirty (30) days, or such other time as may be provided herein,
after receipt of written notice from the Aviation Director of the default. If the default cannot
reasonably be cured within said 30 days or within any other time as set out in the notice of
default, Lessee shall not be deemed in default if Lessee commences the remedy process
within the applicable period and thereafter diligently prosecutes the same to completion
within a reasonable time period as agreed to by the Aviation Director; otherwise, Lessee
will be determined to be in default.
Page 11 of 15
C. City's Right to Entry upon Termination. If the Lease is terminated, the City may enter
upon the Premises. In the event of termination, the Aviation Director may enter onto the Premises
to remove any and all persons or property from the Premises and place any property in storage for
the account of and at the expense of Lessee. Excluding personal property provided at the
Premises by the City which forms part of the granted use under this Lease, all personal
property on the Premises is hereby subjected to a contractual landlord's lien to secure
payment of delinquent rent and other sums due and unpaid under this Lease, any and all
exemption laws are hereby expressly waived in favor of said landlord's lien; and it is agreed
that said landlord's lien is not a waiver of any statutory or other lien given, or which may be
given,to City but is in addition thereto. In the case of termination by either party, if Lessee fails
to remove any of its furniture, fixtures, equipment, or other personal property from the Premises
within ten (10) days following the termination of this Lease, Aviation Director may, at his option,
take title to said personal property, remove the same, and sell the property found on the Premises
at a public or private sale with proceeds of the sale applied first to the cost of the sale, then to the
cost of storage of the property, if any, and then to the indebtedness of Lessee, with the surplus, if
any, to be mailed to Lessee at the address herein designated. To the extent allowed by law,
Lessee further agrees to hold harmless and indemnify City, including its officers,
agents, and employees, against, from any loss or damage or claim arising out of
City's action in collecting monies owed to it under this paragraph, except for any
loss, damage, or claim caused by the gross negligence or willful misconduct of City
or its employees.
D. Notice of Termination. If an event of material default occurs, and after due written
notice identifying the default the defaulting party has failed to cure or failed to commence to cure,
the complaining party may at any time after the expiration of any such cure period terminate this
Lease by providing written notice of termination to the defaulting party. The Lease will be
terminated on the date specified in the notice but not sooner than 10 business days after the
postmarked date of the notice.
E. Improvements Revert to City. Except for the right of Lessee to remove personal
property at the expiration of the Lease, ownership of all improvements placed or constructed on the
Premises by Lessee revert to the City upon the expiration or earlier termination of this Lease.
Section 27. Re-delivery of Premises. Upon the expiration or earlier termination of this Lease,
Lessee shall deliver the Premises to the City peaceably, quietly, and in as good condition as the
same now are or may be hereafter improved by Lessee or City, normal use and wear excepted.
Section 28. Holdover. Any holding over by Lessee of the Premises after the expiration of this
Lease will be on a month-to-month tenancy at sufferance not to exceed 18 months, at the then
current monthly rent and subject to surrender upon 30 days' prior written notice. Failure to timely
surrender the Premises following such written notice subjects Lessee to a monthly holdover fee
of 125% of the then fair market value for the Premises.
Section 29. Notices.
A. With the exception of immediate notices to be provided to the City under the
hazardous materials/substances provision of Section 17 and the indemnification provisions of
Section 24 of this Lease, all notices required to be sent under this Lease are deemed sufficient
if in writing and sent by certified mail, return receipt requested, postage prepaid, or by overnight
delivery service with proof of delivery, or delivered in person, and as properly addressed below:
Page 12 of 15
If to City: Director of Aviation
Corpus Christi International Airport
1000 International Drive
Corpus Christi, TX 78406
If to Lessee: Sterling Air Service, LLC
514 Hangar Lane
Corpus Christi, TX 78406
B. Either party may change the address to which notice must be addressed under this
section by providing the other party with notice of the new address under any of the methods set
out in this section.
Section 30. Disclosure of Interest. The City's Code of Ordinances, Section 2-349, as
amended, requires all persons seeking to do business with the City to complete and provide a
"Disclosure of Interest" form of the type attached to this Lease as Exhibit D. The content of the
completed Exhibit D by Lessee is incorporated into this Lease by reference as if fully set out in
this section. Lessee is obligated to provide an updated Disclosure of Interest should any
information submitted in Exhibit D and incorporated into this Lease by reference change during
the pendency of this Lease for approval by the City Council and prior to the City's execution of
the same.
Section 31. General Provisions.
A. Mineral Rights. The City expressly reserves all water, gas, oil, and mineral rights in
and under the soil beneath the Premises in which it holds an interest and reserves the right to
conduct or provide for testing and removal of any such City-owned water, gas, oil, or minerals
from the Premises.
B. No Waiver of Forfeiture. Any failure or neglect of the City or Lessee at any time to
declare a forfeiture of this Lease for any breach or default whatsoever hereunder does not
waive City's or Lesseess right thereafter to declare a forfeiture for like or other or succeeding
breach or default.
C. Force Majeure. Neither City nor Lessee will be deemed to be in breach of this
Lease if either is prevented from performing any of its obligations under this Lease by reason of
force majeure. "Force Majeure" for the purposes of this Lease means any prevention, delay, or
stoppage due to strikes, lockouts, labor disputes, acts of God to include severe inclement
weather and sustained periods of rain or snow, civil commotion, fire or other casualty, and other
causes beyond the reasonable control of the party obligated to perform and claiming the force
majeure. All of the foregoing events excuse the performance by either party for a period equal
to any prevention, delay, or stoppage, including the obligations imposed with regard to
commencement or payment of rental and other charges to be paid by Lessee pursuant to this
Lease and the obligation of City to deliver the Premises.
D. Rules and Regulations. Lessor has adopted minimum operational standards
("Minimum Standards") and rules and regulations ("Rules and Regulations"), which shall govern
Lessee in the use of the Premises and all common facilities, a copy of each of which has been
furnished to the Lessee and are incorporated herein by reference. Lessee agrees to comply
fully at all times with these governing documents. Lessor, in its sole discretion, shall have the
right to amend, modify, and alter these Minimum Standards and Rules and Regulations from
Page 13 of 15
time to time in a reasonable manner and may introduce other regulations as deemed necessary
for the purpose of assuring the safety, welfare, convenience, and protection of property of
Lessor, Lessee, and all other tenants and customers of the Airport; provided, however, that
Lessor shall give Lessee reasonable advance notice of any such amendments, modifications, or
alternations of the Minimum Standards and Rules and Regulations.
E. Venue. Venue for any action brought under this Lease lies in Nueces County, Texas,
where the Lease was executed and will be performed.
F. No Third Party Benefit. No provision of this Lease creates a third party claim
against the City or the Lessee beyond that which may legally exist in the absence of any such
provision.
G. Permits, Licenses, and Taxes. Lessee shall procure all permits and licenses, pay
all charges, fees, and taxes including, but not limited to, all payroll taxes, Medicare taxes, FICA
taxes, unemployment taxes, and all other related taxes according to Internal Revenue Circular E
"Employer's Tax Guide," Publication 15, as it may be amended, and give all notices and respond
to all communications that are necessary and incident to the due and lawful conduct of business
at and occupancy of the Premises by Lessee. Lessee must provide proof of payment of any tax
within 10 days after the City Manager's written request for the same.
H. Trash and Refuse. Lessee must arrange for the collection and lawful disposal of all
trash and other refuse resulting from operations on the Premises; must provide and use
suitable, sealed fireproof receptacles approved by the Aviation Director for all trash and other
refuse generated by the use of the Premises; must prohibit the piling of boxes, barrels, or other
similar items in or within view from a public area; and must pay, or cause to be paid, the costs
associated with trash removal and disposal.
I. Delegation. Any obligations of the Lessee required by this Lease may be delegated
to any approved sublessee by the terms of the sublease agreement between the parties,
provided, however, that any such delegation shall not relieve Lessee of its liability,
responsibilities, and obligations under this Lease.
J. Publication. Lessee must pay all newspaper publication costs, if any, for this Lease
as required by the City Charter.
(EXECUTION PAGE FOLLOWS)
Page 14 of 15
EXECUTED IN DUPLICATE ORIGINALS this 1 I I I day of i-t_. , 2015
ATTEST: CI OF CORP - I
R . 0
0,. _ ti
Rebecca Huerta ..0...e<Ronald L. •Isi,n
City Secretary City Mana•-
Approved as to legal form:
_ ►.' air. ../i „ ii2 7//11*--
Elizabet, Hundley, A,sistant City A • ney
for M I-. Risley, City Attorney
0(Ct. • 0160 SI
Sterling Air Service:
IT COMM.
SECRET
- Morgan, Pressid=nt
`7 (/
Date: / "5
ACKNOWLEDGMENT
STATE OF 14 kg,,5 §
§ KNOW ALL BY THESE PRESENTS:
COUNTY OF e'ta §
This instrument was acknowledged before me on U (, k , 2015, by Shawn
Morgan, President, on behalf of Sterling Air Service, LLC, exas limited liability company.
) buy/4i , ,
, *VII
N ifs:ry Public, State of ^il'O
ATTACHED AND INCORPORATED BY REFERENCE:
Exhibit A—Aerial Depiction of Premises ,,ry,
Exhibit B—Layout and Lease Rates of Premises i''?�'�' YVETEP.CAVAZOS
Exhibit C—Insurance Requirements ,f MY COMMISSION EXPIRES
Exhibit D—Disclosure of Interests, completed form F5.2019
Page 15 of 15
CORKS yifiti „ r4,.; ►i i*4:,1 ,i>4::.,_ -
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- CORPUS CHRISTI INTERNATIONAL AIRPORT
VPPrepared by
. A STERLING AIR SERVICE CDBehnoar
V►a, Q' s/� SITE LOCATION PLAN Approved by
FRED SEGUNDO
EXHIBIT A Scale !Date-
NTS OS 26 2015
OnTri 'TsRAC'1LAAi.ALL T
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PARKING
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MALE FEMALE
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WORKING ROOM H A l t VV A V I PARKING
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PANTRY STORAGE OFFICE STORAGE
EGA of6 ,
2,000 SF I
—` -1 Office
HANGAR-4
to
HANGAR-4 RAMP
EGA of 6 EGA H-4
Floor Area = 2,000 SqFt. 5.000 SF
Hangar
EGA Hangar 4/Office 6
/
Annual Rental Monthly Annual
Category Usage Type SqFt Rate per SqFt Total Total
Office Office Space 2,000 $6.25 $1,042 $12,500.00
Hangar Aircraft hangar 5,000 $1.65 $688 $8,250.00
Vehicle Parking-Asphalt Parking lot/Access Rd 7,991 $0.30 $200 $2,397.30 KEY PLAN
14,991 $1,929 $23,147.30
CORPUS CHRISTI INTERNATIONAL AIRPORT
Slitt0AILSTERLING AIR SERVICE LEASED PREMISES Prepared by CBELINO1r
71441141,
CC!w AND AREA CALCULATIONS Approved by.
4* EXHIBIT B FREDSEGUNDO
Date
Sheet No I oft 07-01-2015
EXHIBIT C
INSURANCE REQUIREMENTS
I. LESSEE'S LIABILITY INSURANCE
A. Lessee must not commence work under this contract until all insurance required has been obtained and
such insurance has been approved by the City. Lessee must not allow any sub-lessee to commence work
until all similar insurance required of any sub-lessee has been obtained.
B. Lessee must furnish to the City's Risk Manager and Director of Aviation Dept. two (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 listed as an
additional insured on the General liability and Auto Liability policies, and a waiver of subrogation
is required on all applicable policies. Endorsements must be provided with Certificate of
Insurance. Project name and/or number must be listed in Description Box of Certificate of
Insurance.
TYPE OF INSURANCE MINIMUM INSURANCE COVERAGE
30-day advance written notice of Bodily Injury and Property Damage
cancellation, non-renewal, material change Per occurrence - aggregate
or termination required on all certificates
and policies.
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 Lessees
6. Personal Injury- Advertising Injury
AUTO LIABILITY (including) $1,000,000 Combined Single Limit
1. Owned
2. Hired and Non-Owned
3. Rented/Leased
WORKERS' COMPENSATION Statutory
All states endorsement required if Lessee
is not domiciled in State of Texas.
EMPLOYER'S LIABILITY $500,000/$500,000/$500,000
AIRCRAFT LIABILITY (including) $1,000,000 Per Occurence
1. Owned
2. Hired and Non-Owned
3. Rented/Leased
4.
In Air and On Ground
PERSONAL PROPERTY INSURANCE Lessee, at their own expense, shall be
responsible for insuring all owned, leased
or rented personal property.
C. In the event of accidents of any kind related to this contract, Lessee must furnish the Risk Manager with
copies of all reports of any accidents within 10 days of the accident.
II. 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. An All States Endorsement shall be required if Lessee is not domiciled in the State of 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 a copy of the Certificate of Insurance upon renewal dates to City for
the duration of the contract at the address provided below within 10 days of any change made by the
Lessee or as requested by the City. Lessee shall pay any costs incurred resulting from said changes. All
notices under this Exhibit shall be given to City at the following address:
City of Corpus Christi
Attn: Risk Manager
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, and volunteers, as additional insureds by endorsement
with regard to operations, completed 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, cancellation, non-
renewal, material change or termination 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 cancellation, non-renewal, material change or termination 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 sub-
lessee's performance of the work covered under this contract.
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 contract.
I. It is understood and agreed that the insurance required is in addition to and separate from any other
obligation contained in this contract.
2015 Insurance Requirements
Aviation Dept.
Sterling Air Service
6/30/2015 ds Risk Management
C21SUPPLIER NUMBER
TO BE ASSIGNED BY CITY
PURCHASING DIVISION
City of
Corpus EXHIBIT D
Christi
CITY OF CORPUS CHRISTI
DISCLOSURE OF INTEREST
Corpus Christi Code § 2-349, as amended, requires all persons or firms seeking to do business
with the City to provide the following information. Every question must be answered. If the
question is not applicable, answer with "NA". See next page for Filing Requirements,
Certification and Definitions.
COMPANY NAME: Sit cc v \sr c
STREET ADDRESS: 5 I y }-Icu,iet_r (Gwe P.O. BOX:
CITY: Corpus C_tne( 54 STATE: `( NC ZIP: 7g4/6 c,
FIRM IS: 1. Corporation ❑ 2. Partnership ❑ 3. Sole Owner ❑
4. Association ❑ 5. Other
If additional space is necessary, please use the reverse side of this page or attach separate sheet.
1. State the names of each "employee" of the City of Corpus Christi having an `ownership interest"
constituting 3% or more of the ownership in the above named "firm."
Name Job Title and City Department (if known)
1060E
2. State the names of each "official" of the City of Corpus Christi having an "ownership interest"
constituting 3% or more of the ownership in the above named "firm."
Name Title
N6w��
3. State the names of each "board member" of the City of Corpus Christi having an "ownership
interest" constituting 3% or more of the ownership in the above named "firm."
Name Board, Commission or Committee
NO>u
4. State the names of each employee or officer of a "consultant" for the City of Corpus Christi who
worked on any matter related to the subject of this contract and has an "ownership interest"
constituting 3% or more of the ownership in the above named "firm."
Name Consultant
N 6 Fv tc
FILING REQUIREMENTS
If a person who requests official action on a matter knows that the requested action will confer
an economic benefit on any City official or employee that is distinguishable from the effect that
the action will have on members of the public in general or a substantial segment thereof, you
shall disclose that fact in a signed writing to the City official, employee or body that has been
requested to act in the matter, unless the interest of the City official or employee in the matter is
apparent. The disclosure shall also be made in a signed writing filed with the City Secretary.
[Ethics Ordinance Section 2-349 (d)].
CERTIFICATION
I certify that all information provided is true and correct as of the date of this statement, that I
have not knowingly withheld disclosure of any information requested, and that supplemental
statements will be promptly submitted to the City of Corpus Christi, Texas, as changes occur.
Certifying Person: ��w� Title:
lvl a r�std✓ /����-�
Signature of Date:
Certifying Person:(-9 ._. V/ 7/F/2.6rs
f
DEFINITIONS
a. "Board member." A member of any board, commission, or committee of the city, including the board
of any corporation created by the city.
b. "Economic benefit". An action that is likely to affect an economic interest if it is likely to have an effect
on that interest that is distinguishable from its effect on members of the public in general or a
substantial segment thereof.
c. "Employee." Any person employed by the city, whether under civil service or not, including part-
time employees and employees of any corporation created by the city.
d. "Firm." Any entity operated for economic gain, whether professional, industrial or commercial, and
whether established to produce or deal with a product or service, including but not limited to, entities
operated in the form of sole proprietorship, as self-employed person, partnership, corporation, joint
stock company, joint venture, receivership or trust, and entities which for purposes of taxation are
treated as non-profit organizations.
e. "Official." The Mayor, members of the City Council, City Manager, Deputy City Manager, Assistant
City Managers, Department and Division Heads, and Municipal Court Judges of the City of Corpus
Christi, Texas.
f. "Ownership Interest." Legal or equitable interest, whether actually or constructively held, in a firm,
including when such interest is held through an agent, trust, estate, or holding entity. "Constructively
held" refers to holdings or control established through voting trusts, proxies, or special terms of
venture or partnership agreements.
g. "Consultant." Any person or firm, such as engineers and architects, hired by the City of Corpus
Christi for the purpose of professional consultation and recommendation.