HomeMy WebLinkAboutC2018-058 - 3/20/2018 - Approved LEASE AGREEMENT BETWEEN THE CITY OF CORPUS CHRISTI AND
THE CORPUS CHRISTI BALLET
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 Ballet, a Texas non-profit
corporation ("Lessee").
WHEREAS, the City is the owner of real property known as the Sid Richardson Building,
located at 1621 N. Mesquite Street, Corpus Christi Texas, Lots 5 and 6, Block 69, Beach Addition,
together with all improvements thereon ("Premises");
WHEREAS, Lessee has occupied the Premises as a tenant since 1996 and has invested
over$250,000 in improvements. Lessee has requested the continued use of the Premises for the
purpose of for its operations as The Corpus Christi Ballet, 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 or Lessor 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) Director means the City's Director of Park and Recreation or the Director of Park and
Recreation's designee.
(D) Lease means this lease document, including all attached and incorporated exhibits.
(E) Lessee or Tenant means The Corpus Christi Ballet.
(F) Parks means the City's Park and Recreation Department.
(G) Premises means the Sid Richardson Building, located at 1621 N.Mesquite Street, Corpus
Christi Texas, Lots 5 and 6, Block 69, Beach Addition, Corpus Christi Texas, together with
all improvements thereon.
Section 2. Purpose.
The purpose of this Lease, between City and Lessee, is to enable Lessee to utilize Premises for
advancement of knowledge, appreciation and enjoyment of the dance arts including but not
limited to programs, exhibits, performances, promotions, classes, training, and education in the
dance arts. Lessee may maintain its administrative offices within the Premises and provide
2018-058
3/20/18
Ord. 031390
The Corpus Christi Ballet
INDEXED
2
meeting rooms for the activities of Lessee or any of its support groups. Lessee shall not operate
the Premises for any other purpose without Director's prior written approval.
Section 3. Term.
The City leases the Premises, subject to all terms and conditions of this Lease, to the Lessee for
an initial five (5) year term which begins upon last signature after final City Council approval, and
continues for five years unless sooner terminated as set out herein. This Lease may be extended
for up to one additional five(5)year term upon written agreement of the City Manager and 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.
D. THE PROVISIONS OF THIS Section 4 SHALL SURVIVE THE EXPIRATION OR
EARLIER TERMINATION OF THIS LEASE.
Section 5. Lease Payments.
(A) For and in consideration of the rights and privileges herein granted, Lessee agrees to pay
the City, as follows monthly rents as follows: $400 per month.
(B) The monthly rent increases by 10% at the beginning of each five-year extension term.
(C) 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.
3
Section 6. Construction of Improvements.
Tenant will not make, or permit to be made, any structural improvements to the Premises without
the prior written consent of the City Manager or designee which consent shall not be unreasonably
withheld. Any structural improvements to the Premises made by Tenant will become the property
of Lessor. Prior to commencing structural improvements to the Premises, Lessee shall coordinate
with the Director of Parks and Recreation to verify that Lessee has sufficient funds on hand to
complete any planned improvements, ("Improvements"), will comply with City permitting process,
and will obtain prior approval from the Director of Parks and Recreation regarding any work at the
Premises. The Director of Parks and Recreation shall timely review the request and approve,
modify or deny within 30 days of Lessee's request.
Tenant, at Tenants expense, shall have the right to make minor (non-structural) enhancements
to the Premises from time to time as Tenant may deem desirable, provided the same are made
in a workmanlike manner and utilizing good quality materials. Tenant shall have the right to place
and install personal property, equipment, dance flooring and other temporary installations (such
items shall not be deemed fixtures) in and upon the Premises, and fasten the same to the
premises. All such personal property, equipment, dance flooring, trade fixtures and temporary
installations, whether acquired by Tenant at the commencement of the Lease term or placed or
installed on the Premises by Tenant thereafter, shall remain Tenant's property free and clear of
any claim by the City. Tenant shall have the right to remove the same at any time during the term
of this Lease provided that all damage to the Premises caused by such removal shall be repaired
by Tenant at Tenant's expense.
Lessee shall require the contractors who are awarded contracts for construction of the structural
improvements to furnish performance and payment bonds as required by State law.
Lessee shall include in all construction contracts for the Improvements, in large, bold face text:
"Contractor does hereby agree to release, indemnify, defend and hold harmless City of
Corpus Christi, and all of its officials, officers, agents and employees, in both their public
and private capacities, from and against any and all liability, claims, losses, damages,
suits, demands or causes of action including all expenses of litigation and/or settlement,
court costs and attorney fees which may arise by reason of injury to or death of any person
or for loss of, damage to, or loss of use of any property occasioned by error, omission, or
negligent act of contractor, its officers, agents,employees,subcontractors, invitees or any
other person arising out of or in connection with the performance of the construction
contract, and contractor shall at his or her own cost and expense defend and protect the
City of Corpus Christi from any and all such claims and demands."
Lessee shall also require the contractors in all construction agreements over $50,000 for
structural improvements to furnish insurance in such amounts as specified in the attached
Exhinit_
Lessee agrees that the Director of Engineering Services or designee, as well as the Director of
Parks and Recreation or designee, will make visits to the Premises at intervals appropriate to
the various stages of construction, as they deem necessary.
Lessee agrees that the Director of Engineering Services or designee will have the authority to
reject Work believed to be defective. Lessee agrees to promptly correct all defective work.
4
Lessee agrees that all work performed shall be done in full compliance and in accordance with
all federal. state and local laws, ordinances, codes and regulations, including but not limited
to the Americans with Disabilities Act and the Americans with Disabilities Act Accessibility
Guidelines and such work shall be subject to City inspection during the performance thereof
and after it is completed.
Lessee shall discharge all obligations to contractors, subcontractors, materialmen, workmen
and/or other persons for all work performed and for materials furnished for or on account
of Lessee as such obligations mature. Lessee expressly agrees that it will neither give nor grant,
nor purport to give or grant any mechanic's or materialmen's lien upon the City's property or
upon any Improvements thereupon in the process of construction or repair, nor allow any
condition to exist or situation to develop whereby any party should be entitled, as a matter of
law, to a mechanic's or materialmen's lien against the City's property or the Improvements
thereon, and Lessee will discharge any such lien within thirty (30) days after notice of filing
thereof.
Lessee shall conduct its operations under this Agreement in an orderly and proper manner,
considering the nature of such operation, so as not to unreasonably annoy, disturb, or
endanger others.
The complete cost of developing all necessary plans and specifications, as provided in this
Agreement, and the cost of construction of the Improvements shall be borne solely by the Lessee
at no expense to the City whatsoever. Lessee shall pay all taxes, special assessments, or levies,
if any, assessed against the Premises or Improvements.
Upon completion of the Improvements, Lessee shall donate them to the City upon acceptance by
the-City-Director of Parks and Recreation. Any warranties given to Lessee regarding the
Improvements shall be transferred and assigned to the City at the same time as the Improvements
are accepted by the City.
Section 7. Utilities.
(A) Lessee shall be responsible to obtain and pay for all utilities to the Premises, including but
not limited to, telephone, internet, electricity, water, wastewater, and solid waste.
(B) Lessee shall pay for all utilities related to usage of Premises 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 8. Abandonment, Interruption of Utilities, Removal of Lessee's Property, and
Lockout.
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 9. Maintenance.
City will maintain the lawn of the Premises at its own expense, excluding any garden or
landscaping which will be maintained by Lessee. Lessee will repair and maintain, at its sole
expense, any structures and any other improvements on the Premises, all fixtures connected
therewith, all personal property thereon, exterior walks and driveways, and all other areas which
City has not agreed to maintain under this Lease. Maintenance shall be of such quality as to
maintain the Premises in a first-class condition, consistent and in harmony with the standard of
improvements on properties leased by City to other tenants in the area. Lessee shall not
undertake exterior construction, remodeling, redecorating, or signage beyond normal
maintenance without prior written consent of the City Director. Lessee shall obtain, at its own
expense, all building permits, all utility services, garbage collection,janitorial services, and similar
services.
Section 10. Furniture, Fixtures, Equipment and Parking.
(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 electrical or plumbing
fixtures, remains the property of the City.
( C) Lessee and the City shall share in the utilization of the parking lot directly behind the
Premises.
Section 11. City Use.
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, -
Section 12. Laws Affecting Operation of Premises and Performance.
(A) Lessee shall ensure that 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 13. 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 14. 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 15. 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 attached Exhibit,
which is incorporated in this Lease by reference.
(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 structural improvements, 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 6, as contained herein.
(F) The City carries the property insurance including windstorm and flood insurance on the
building. City reserves the right to determine the insurance coverage amounts and also
the deductible amounts. Lessee is responsible for insuring its own contents.
Section 16. 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
againstor 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 and including all expenses of 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 except to the
extent of City's own negligence.
Section 17. Alterations.
(A) Lessee agrees not to harm the Premises beyond normal wear and tear.
B) All 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 18. Signs.
(A) Other than signs already existing as of the date of this Lease, 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. City Director shall review such requests and respond within 30 days of
Lessee's request. Notwithstanding the above, City recognizes that Lessee utilizes a
marquis at the front of the building to advertise its upcoming productions and Lessee is
not required to seek City's consent to continue to do so so long as any signage does not
block the public use of the sidewalk.
(B) City may require Lessee to remove, repaint, or repair any Signs allowed. If Lessee does
not remove, repaint, or repair the Signs within thirty(30)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 thirty (30) days written notice to Lessee.
Section 19. 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.
8
Section 20. Early Termination of Lease.
(A) The following constitute Events of Default under this Lease: failure to keep, perform, and
observe any provisions contained in this Lease. Upon an event of default, the City may
provide written notice of the default and provide Lessee 30 days' notice to cure the default.
(B) Upon the occurrence of any uncured Event of Default, the City may, at its option, in
addition to any other remedy or right given hereunder or by law, give notice to Lessee that
this Lease terminates upon the date specified in the notice. Such notice period shall be a
minimum of 30 days, unless the default is uncurable or represents a danger to health and
safety.
(C) In the event that Lessee determines in its best interest to relocate, then Lessee shall
provide written notice of early termination of the lease to the City. Lessee agrees to
provide at least 90 days' advance written notice to the City of early termination of the
lease. Such early termination shall not be considered an event of default.
(D) In the event the City Manager determines in City's best interest to sell the Premises prior
to the expiration of the Lease, then City Director of Parks and Recreation shall provide
Lessee with written notice when the property is for sale. This Lease may be terminated
early by the City, without penalty or obligation to Lessee, upon minimum of 90 days'
advance written notice of early termination due to sale of the Premises. If the City receives
a bona fide offer to purchase the Premises, the City shall give Tenant written notice of the
offer to purchase. Such notice shall state the terms and conditions under which the City
intends to sell its interest. For sixty (60) business days following the giving of such notice,
Lessee shall have the option to offer to purchase the Premises at the same price and
under the same terms as stated in the notice subject to acceptance by the City, in
accordance with applicable law.
Section 21. No debts.
Lessee shall not incur any debts or obligations on the credit of the City during the term of this
Lease.
Section 22. 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 The Corpus Christi Ballet
9
Park and Recreation Department Attn: Executive Director
P. O. Box 9277 1621 N. Mesquite Street
Corpus Christi, Texas 78469-9277 Corpus Christi, TX 78401
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 23. 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 24. 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 25. 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 26. 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.-27. 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 28. Interpretation.
I0
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 28. 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.
Section 29. Casualty.
If the Premises become damaged due to any event including but not limited 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 all 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 30. Removal of Property upon 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 31. Disclosure of Interests. Lessee agrees to comply with City of Corpus Christi
Ordinance No. 17112 and complete the Disclosure of Interests form as part of this contract.
Lessee agrees to comply with Texas Government Code section 2252.908 and complete Form
1295 Certificate of Interested Parties as part of this contract. For more information, please review
the information on the Texas Ethics Commission website at https://www.ethics.state.tx.us. Lessee
agrees to comply with Chapter 176 of the Texas Local Government Code and file Form CIQ with
the City Secretary's Office, if required. For more information and to determine if you need to file
a Form CIQ, please review the information on the City Secretary's website at
httb://www.cctexas.com/government/city-secretary/conflict-disclosure/index.
Section 31. 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 32. 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,
tt
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. 1
EXECUTED IN DUPLICATE, each of which shall be considered an original, on the 2 'day
of \.;1(AQUrCd , 2018.
ATTEST: CITY OF CORPUS CHRISTI
e-Lef(—(fA
Re ecca Huerta Margie C. Rose
City Secretary City Manager
APPROVED AS TO LEGAL FORM this 2D day of V-40-4'14--- , 2018.
By: Yi
Lisa Aguilar Assists ity Attorney
for City Attorney
zo4L,•ouscY.
SECRETARY
I
12
LESSEE: The Co s C n ti B Ilet ,,,,-/,, o/
By: /� I,.w _,at/l/er
Name: >4n, Spew/ 7 ' ✓AL-L//J "� /
Title: & 0,AfAha//G/ Al/dent
e L
Date: 3751/220/r
13
EXHIBIT
INSURANCE REQUIREMENTS
CONTRACTOR'S LIABILITY INSURANCE
A. Contractor must not commence work under this contract until all insurance required has
been obtained and such insurance has been approved by the City. Contractor must not
allow any subcontractor. to commence work until all similar insurance required of any
subcontractor has been obtained.
B. Contractor must furnish to the City's Risk Manager and Contract Administrator one (1)
copy of Certificates of Insurance with applicable policy endorsements showing the
following minimum coverage by an insurance companyls) acceptable to the City's Risk
Manager.The City must he listed as an additional insured on the General liability and Auto
Liability policies by endorsement, and a waiver of subrogation endorsement is required
on GL, AL and WC if applicable. 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 $1,000,000 Per Occurrence
including: $2,000.000 Aggregate
1. Commercial Broad Form
2. Premises—Operations
3. Products/ Completed Operations
4_ Contractual Liability
5. Independent Contractors
6. Personal Injury- Advertising Injury
AUTO LIABILITY (including) 51,000,000 Combined Single Limit
I. Owned
2_ Hired and Non-Owned
3. Rented/Leased
WORKERS'S COMPENSATION Statutory and complies with Part II of this
(All States Endorsement if Company is not Exhibit.
domiciled in Texas)
Employers Liability 5500,000/5500,000/$500,000
14
C. [n the event of accidents of any kind related to this contract, Contractor must furnish the
Risk Manager with copies of all reports of any accidents within 10 days of the accident.
I[. ADDITIONAL REQUIREMENTS
A. Applicable for paid employees. Contractor 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 statutory amounts according to the Texas
Department of Insurance,Division of Workers' Compensation. An All States Endorsement
shall be required if Contractor is not domiciled in the State of Texas.
B. Contractor shall obtain and maintain in full force and effect for the duration of this
Contract, and any extension hereof, at Contractor'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, Contractor shall be required to submit nnewal certificates of insurance throughout the term
of this contract and any extensions within 10 days of the policy expiration dates. All
notices under this Exhibit shall be given to City at the following address:
City of Corpus Christi
Ann: Risk Manager
P.O. Box 9277
Corpus Christi, TX 78469-9277
D. Contractor 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_
15
E. Within five (5) calendar days of a cancellation, non-renewal, material change or
termination of coverage, Contractor shall provide a replacement Certificate of Insurance
and applicable endorsements to City. City shalt have the option to suspend Contractor'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 Contractor'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 Contractor to stop work hereunder. and/or
withhold any payment(s) which become due to Contractor hereunder until Contractor
demonstrates compliance with the requirements hereof
G. Nothing herein contained shall be construed as limiting in any way the extent to which
Contractor may be held responsible for payments of damages to persons or property
resulting from Contractor's or its subcontractor's performance of the work covered under
this contract.
H. It is agreed that Contractor'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.
It is understood and agreed that the insurance required is in addition to and separate from
any other obligation contained in this contract.