HomeMy WebLinkAboutC2018-368 - 7/17/2018 - Approved FARM LEASE AGREEMENT
STATE OF TEXAS §
KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This farm lease agreement ("Lease") is entered into this by and between the City of Corpus Christi, a
Texas home-rule municipal corporation ("City"), and S & S Farms Partnership ("Lessee"), a Texas
general partnership, in consideration of the mutual covenants contained in this Lease.
1. PREMISES. The City leases to Lessee 590.46 acres (the "Premises"), portions of the land
outside the airport perimeter fence, west of Kelly Ditch, east of Highway 53, and north of Old
Brownsville Road, running near adjacent to the eastern and south-eastern portions of the airport
perimeter fence, Bear Lane, FM 763, and the drainage ditch adjacent to the southeast portion of the
perimeter fence, excluding a ten-foot section along the airport perimeter fence and drainage system,
more particularly described as shown as Parcel No. 2 on the map referenced as "Attachment B",
which is attached to this Lease and incorporated by reference in this Lease as if it were set out here in
its entirety. The Premises is limited to the description provided in and the restrictions shown in
"Attachment A," which is attached to this Lease and incorporated by reference in this Lease as if it
were set out here in its entirety.
2. PURPOSE. The purpose of this Lease, between City and Lessee, is to enable Lessee to utilize
the Premises for the farming of crops and for no other purpose. The use of the Premises shall be
limited as laid out in this Lease and as shown in Attachment A. The Lessee shall use the Premises in
accordance with "Exhibit 1," the Request for Proposals (RFP) No. 1507, and "Exhibit 2," the Lessee's
submitted proposal, which exhibits are incorporated by reference in this Lease as if set out here in their
entirety.
3. LEASE TERM. This Lease is for a five-year term beginning October 1't,2018, and ending at
midnight on September 30th.2023, subject to prior termination as set out in this Lease. For annual
lease payment purposes, October 1 of every succeeding calendar year following the execution of this
Lease is deemed the anniversary date of the Lease("Anniversary Date").The Lease may be renewed
for one additional three-year term upon agreement of the Parties. If the Lease is renewed,the Lease
Payment, as defined below, will be adjusted upward by the percentage change in the Consumer Price
Index-All Urban Consumers (CPI-U)for the Houston-The Woodlands-Sugarland,TX area-All Items,
during the one-year period immediately preceding the most recent available information at the time of
such renewal, as published by the Bureau of Labor Statistics of the U.S. Department of Labor,or of any
revised or successor index hereafter published by the Bureau of Labor Statistics.
4. LEASE PAYMENT.
•
A. Upon Lessee's execution of this Lease and the City Council's approval, Lessee must pay the
City an annual lease payment of $64,950.6 which is based on $110 per acre x 590,46 acres
("Lease Payment"). Any one-time bonus payment that was included in a bid by Lessee and
accepted as consideration for this Lease must also be remitted with the initial Lease Payment.
The Lease Payment is due at the beginning of the Lease and on or before each Anniversary Date.
B. The Lease Payment must be delivered or mailed to:
r h,of ^rims
02018-368 tion A/R
7/17/18
Ord. 031475
S & S Farms Partnership
1000 international Drive
Corpus Christi,Texas 78406
C. Lease Payments are not refundable if this Lease is terminated prior to completion of its full
five-year term.
D. In the event Lessee holds over beyond the expiration of the term herein provided with the
consent, express or implied, of the City, any such holdover is a tenancy at sufferance and such
holdover period will only be from month-to-month and subject to the conditions of this Lease.
Lessee acknowledges and agrees in advance that any such holdover does not constitute a
renewal of this Lease, and any holdover period is subject to Lessee's payment of a monthly rental
amount equal to 1/12 of the last annual Lease Payment.
5. 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, UPON LESSEE'S REQUEST PRIOR
TO THE EXECUTION OF THIS LEASE, 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, IF ANY, EXISTING ON THE PREMISES ON THE COMMENCEMENT DATE
OF THIS LEASE 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 TO SUCH STRUCTURES AND IMPROVEMENTS. 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 LESSEE'S EXAMINATION OF THE SAME.
D. THE CITY, HAVING FEE SIMPLE RIGHTS TO THIS LAND, DOES NOT WARRANT ITS
TITLE TO THE PREMISES AND DOES NOT GUARANTEE LESSEE'S QUIET POSSESSION
OF SAME. LESSEE ACKNOWLEDGES AND IS AWARE THAT THE PREMISES IS
CONTAINED WITHIN A LARGER AREA OF LAND OWNED BY THE CITY AND CURRENTLY
USED FOR ACTIVE AIRPORT OPERATIONS AND RELATED PURPOSES. THIS LEASE AND
THE RIGHTS AND PRMLEGES GRANTED LESSEE IN AND TO THE PREMISES ARE
SUBJECT TO ALL COVENANTS, CONDITIONS, RESTRICTIONS, AND EXCEPTIONS OF
RECORD OR APPARENT. LESSEE ACKNOWLEDGES THAT LESSOR DOES NOT OWN ALL
MINERAL AND GAS RIGHTS TO THE PREMISES, AND LESSEE IS SUBJECT TO ANY
EXPLORATORY AND PRODUCTION RIGHTS OF THE MINERAL OWNERS AND WHICH
COULD PRODUCE DAMAGES TO LESSEE'S LEASEHOLD. NOTHING CONTAINED IN THIS
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LEASE MAY BE CONSTRUED TO IMPLY THE CONVEYANCE TO LESSEE OF RIGHTS IN
THE PREMISES THAT EXCEED THOSE OWNED BY THE CITY.
E. THE PROVISIONS OF THIS SECTION 5 SURVIVE THE EXPIRATION OR EARLIER
TERMINATION OF THIS LEASE.
6. USE AND MAINTENANCE.
A. Lessee shall use the Premises for agricultural purposes only and cannot make any other
use of the Premises without the prior written consent of the City. Lessee shall take good care of
the Premises and its appurtenances and suffer no waste. Lessee shall keep the Premises in
good repair at Lessee's own expense. Lessee shall observe and obey all applicable federal,
state, and local laws, rules, and regulations and all rules set out by the City for the operation of
the Premises. At the expiration of this Lease, Lessee shall surrender the Premises in as good
condition as the same are now in, natural wear and tear and damage from the elements only
accepted. Lessee will not permit any alcoholic beverages on the Premises. Lessee agrees to
conduct all of Lessee's operations on the leased premises in a reasonable, efficient and prudent
manner.
B. In compliance with the Federal Aviation Administration ("FAA") restriction on the types of crops
grown on the Airport and pursuant to Section 18 herein,except as provided in Attachment A,
Lessee shall not plant sunflower, seeded crops or cereal grain crops on the Premises. Lessee
may not construct any improvements on the Premises. Lessee may not use the Premises for
storage of equipment or supplies
C. Without limiting the foregoing, Lessee specifically agrees:
1) Chemical Notification. The use of all agricultural chemicals, fertilizers, and pesticides
will be in a lawful, safe, and a prudent manner. The City's Director of Aviation or designee
("Aviation Director) will determine and approve the time and place any aerial or ground
chemicals, fertilizers, and pesticides will be used due to the proximity of the airport and its
employees and the public. Under normal circumstances, the notice of intent to use
agricultural chemicals, fertilizers and pesticides must be provided in writing no less than fire
business days prior to use and addressed to:
City of Corpus Christi
Director of Aviation
1000 International Drive
Corpus Christi,TX 78406
Fax: (361)-826-4533
In the event of crop destruction due to midge insects and under an emergency
situation only, Lessee will be allowed to, instead, give a 24-hour notice of crop
spraying to the Aviation Director by calling (361)-289-0171.
2) Growth Control. Lessee will prevent the growth of and keep the Premises (including
cultivated fields, turn rows, ditches, fence rows, and lands adjacent to the Premises) free
from Johnson grass, Bermuda grass, cockleburs, burdock plants, and other noxious weeds
and undesirable vegetation, and keep the cultivated portion of the Premises free from all
sprouts and stumps.
7. REQUIRED MODIFICATION OR AMENDMENT OF LEASE. If the FAA or its successor requires
modifications or amendments to this Lease as a condition precedent to granting funds for Airport
improvements, Lessee agrees to consent to the modifications or amendments to this Lease as may be
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reasonably required for the City to obtain the funds; provided, however, that Lessee will not be required
to pay increased Lease Payments, change the use of the Premises, or accept a relocation or reduction
in size of the Premises until Lessee and the City have fully executed an amendment to this Lease that
is mutually satisfactory to all parties regarding any terms or conditions of this Lease affected by said
required actions.
8. FEES, TAXES & UTIUTIES. Lessee shall pay, if applicable to Lessee's leasehold interest and
Lessee's use and business operations at the Premises, all ad valorem taxes, personal property taxes,
licenses, utility fees and charges, and all other fees and taxes required to be paid during this Lease.
Lessee shall pay, at its sole cost and expense, all taxes, fees, utilities, and charges on or prior to the
due date. Within three business days of approval of this Lease and remittance of the initial Lease
Payment, Lessee shall ensure that the water utility account and any electrical account, if electricity is
available and connected at the Premises, and all other utility account(s) for the Premises are
transferred and/or set up in the Lessee's name and all required deposits paid. Payment by Lessee of
all utility charges must be timely paid when such charges become due and are not permitted to become
delinquent at any time during the term of the Lease.
9. SUBORDINATION TO U.S. AND FAA REQUIREMENTS. This Lease is subordinate to the
provisions of any existing or future agreement between the City and the government of the United
States 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 9 or under Section 7 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.
10. RECORDKEEPING. Lessee will keep an accurate book of accounts regarding all business
matters pertaining to the cultivation of the Premises, and these account books must be open to
inspection by the Aviation Director upon reasonable demand during the City's normal business hours.
11. INSURANCE.
A. Coverages. Lessee must obtain and keep in force during the term of this Lease insurance
policy or policies in the amounts and with the types of insurance coverages set out in the attached
"Attachment C," which attachment is incorporated by reference as if fully set out here in its
entirety.
B. Failure of Lessee. Failure of Lessee to procure and maintain in force the required insurance
coverages constitutes a material breach of the Lease upon which the City may immediately
terminate this Lease if Lessee does not furnish proof of the required insurance coverages to the
City within 10 days of written notice to Lessee.
C. Insurance Coverage Adjustments. The types and amounts of insurance coverage specified
in the Lease is subject to adjustment by the City's Risk Manager on the Anniversary Date of the
Lease. Notice of any such required adjustment(s) will be provided to Lessee not less than 30
days prior to the Anniversary Date.
12. FINANCING. The City recognizes that Lessee may borrow funds for agricultural purposes, or for
other purposes, secured by a first lien security interest in Lessee's leasehold estate in the Premises.
The fee simple estate of City in the surface estate, burdened by Lessee's leasehold estate,must not be
subject to any liens, and any security lien instrument to which Lessee is a party must contain the
following language,or other similar language approved in advance by the City Attorney:
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"Lender agrees that the lien created by this instrument is effective only as
to the leasehold estate of Lessee created under that certain Lease
effective on October 1, 2018, by and between the City of Corpus Christi
and Lessee, and that this instrument does not affect the fee simple
interest in the Premises owned by the City of Corpus Christi. In the event
of any foreclosure by any lender of a lien or liens on the Lessee's
leasehold estate in the Premises or Lessee's improvements, if any, such
lender or other purchaser at foreclosure, its successors and assigns, will
succeed to all rights, privileges, and duties of Lessee including, without
limitation, the duty to pay rent."
13. DAMAGE TO CITY OR FRANCHISEE IMPROVEMENTS. Lessee must pay for all damages to
any City or franchisee utility lines and equipment located on the Premises caused by Lessee's farming
and agricultural operations and must replace all lines or equipment injured or destroyed as a result of
Lessee's farming and agricultural operations. If damage occurs to any gas,storm, wastewater, or water
line ("City Improvements"), or to any City equipment located on the Premises, the City's representative
will determine the extent of damage and amount of repairs and/or replacement needed to the City
Improvements, and, as determined by the City's representative, a City gas, storm,wastewater, or water
division crew will be brought in and immediately allowed to make all necessary repairs and/or
replacements. For purposes of calculating time, a half-day of four hours or more constitutes a whole
working day; any work time in excess of eight hours a day or which occurs on a Saturday, Sunday, or a
holiday will be calculated at a daily rate of$53.77 an hour. An additional fee will be due for the cost of a
City inspector at a daily rate of $286.80 for any portion of a day spent inspecting construction,
maintenance, repair, replacement, or relocation of said utility lines and equipment pursuant to this
paragraph. A franchisee whose franchisee improvements are damaged will follow the same process as
set out for damage to City Improvements. All costs incurred by City (including labor and materials)
associated with the repairs and/or replacement of the lines and equipment must be paid by Lessee.
14. ASSIGNMENT AND SUBLEASING. Lessee shall not at any time, without the express prior
written consent of the City Manager, assign, sublease, or transfer, or permit or participate in any
assignment, sublease, or transfer, of this Lease or any of the rights, powers,or privileges granted under
this Lease. Consent to an assignment or sublease shall not be unreasonably withheld by City. In the
event of an approved assignment or sublease, Lessee shall notify any assignee or sublessee that they
shall be liable under all terms, conditions, and obligations of this Lease. Lessee further acknowledges
and agrees that,notwithstanding any approved assignment or sublease, Lessee shall also remain liable
under all terms, conditions,and obligations of the Lease unless released in writing by the City Manager.
15. HUNTING. This Lease does not grant Lessee any rights to hunt on the Premises, and Lessee
may not hunt nor allow any other party to hunt on the Premises without the express written consent of
the City Manager.
16. SECURITY.
A. 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.
B. Each of Lessee's employees needing access to a restricted area (including the area outlined
in Section 17 of this Lease) must wear a security badge while in the restricted area. Lessee will
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pay an issuance fee for each badge and a replacement fee for each lost security badge. The
Aviation Director may also require the payment of a reasonable deposit fee for each security
badge issued consistent with fees charged to other tenants at the Airport. Lessee must notify the
Aviation Director immediately after any employee of Lessee who was issued a security badge is
terminated or loses a badge. Lessee and Lessee's employees must comply with all City and
federal security regulations and requirements.
17. ACCESS TO AIRCRAFT OPERATING AREA.
A. Lessee and its respective contractors, suppliers of materials, furnishers of services,
employees, agents, and business invitees must comply with all present and future laws, rules,
regulations, and ordinances promulgated by the City, the Airport, the federal Transportation
Security Administration ("TSA"), the FAA, or other governmental agencies to protect the security
and integrity of the Airport's aircraft operating area ("AOA"), as shown on the attached
"Attachment B", which is incorporated in this Lease as if fully set out herein. Subject to the
approval of the Aviation Director, Lessee must adopt procedures to control and limit access to the
AOA by Lessee and its respective contractors, suppliers of materials, furnishers of services,
employees, agents, and business invitees in accordance with all present and future City, Airport,
TSA, and FAA laws, rules, regulations, and ordinances.
B. Lessee must pay all FAA and TSA fines associated with security breaches or infractions
committed by Lessee's employees, agents, contractors, suppliers, and business invitees in the
AOA, regardless of whether the fine is assessed to the City or the Airport, as set out in the City
Code of Ordinances,Sec. 9-31.
C. Lessee agrees to indemnify, hold harmless, and defend the City, its officers, employees,
agents, and representatives against the risk of legal liability for death, injury, or damage to
persons or property, direct or consequential, arising from entry of persons into the AOA where
permitted, allowed, or otherwise made possible by Lessee, its employees, contractors, suppliers
of materials, furnishers of services, business invitees, agents, or any other person under the
direction of Lessee in violation of City, Airport, TSA, and FAA laws, rules, regulations, or
ordinances or Lessee's approved procedures for controlling access to the AOA.
D. Lessee will have access to the Premises, subject to compliance with all applicable Airport,
TSA, and FAA security procedures. Movement of all persons in the AOA and Premises must be
cleared in accordance with Airport, TSA, and FAA rules and regulations. Lessee is primarily
responsible for opening and closing any security gates and doors permitting access between the
Premises and the AOA.
E. No vehicles owned or operated by Lessee may operate within the movement or non-
movement areas of the AOA except those in compliance with Airport, TSA, and FAA rules and
regulations.
18. OPERATION WITHIN AIRPORT CERTIFICATION. Lessee must comply with all rules that are
applicable to its operations at the Airport under the Airport Certification Rules of the Federal Aviation
Regulations("FAR"), Part 139, as amended[14 CFR Part 139,as amended].
19. FEDERAL CODE REQUIREMENTS FOR EQUIPMENT USE. Lessee covenants to comply with
the notification and review requirements set out in the FAR, Part 77, as amended [14 CFR Part 77, as
amended], if Lessee plans to use equipment in its operation that requires notification as outlined in this
regulation.
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20. CONTROL OF STRUCTURES AND EQUIPMENT. 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 fifteen percent(15%).
21. 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.
22. RIGHT OF OVERFLIGHT. The City hereby reserves, for the use and benefit of the public, a right
of flight for the passage of aircraft above the surface of the Premises together with the right to cause in
the airspace noise as may be inherent in the operation of aircraft now known or hereafter used for
navigation thereof or flight in the air, and using the airspace for landing at or taking off from, or
operating on,the Airport.
23. HAZARDOUS SUBSTANCES.
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.);
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.
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
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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).
24. NO DEBTS. Lessee shall not incur any debts or obligations on the credit of the City during the
term of this Lease.
25. NON-DISCRIMINATION/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
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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.
26. NOTICES.
A. All notices, demands, requests or replies provided for or permitted by this Lease must be in
writing and delivered by any one of the following methods: (1)by personal delivery; (2) by deposit
with the U.S. Postal Service as certified mail, return receipt requested, postage prepaid; or(3)by
deposit with an overnight express delivery service,and sent to the following address:
If to City:
City of Corpus Christi
Aviation Director
1000 International Drive
Corpus Christi,TX 78406
Phone: (361)-289-0171
If to Lessee:
S&S Farms Partnership
Attn: Shane Suggs
Address: 2475 C.R. 69
Robstown,Texas 78380
Phone: (361)-816-8811
B. Notice deposited with the U.S. Postal Service in the manner described above will be
deemed effective two business days after deposit, postage prepaid. Notice by overnight express
delivery service will be deemed effective one business day after delivery to the overnight express
carrier,with proof of receipt.
C. Either party may notify the other, in the manner described above, of a change of address.
Any such change of address must be sent within 10 days of the effective date of the change.
27. INDEMNITY. LESSEE WILL FULLY INDEMNIFY, HOLD HARMLESS, AND DEFEND
THE CITY, ITS OFFICERS, EMPLOYEES, AND AGENTS {"INDEMNITEES") FROM AND
AGAINST ANY AND ALL LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS AND ACTIONS
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OF ANY NATURE WHATSOEVER ON ACCOUNT OF PERSONAL INJURIES (INCLUDING,
WITHOUT LIMITATION ON THE FOREGOING, WORKERS'COMPENSATION AND DEATH
CLAIMS), OR PROPERTY LOSS OR DAMAGE OF ANY KIND WHATSOEVER WHICH MAY
ARISE OUT OF OR IN ANY MANNER BE CONNECTED WITH, OR IS CLAIMED TO ARISE
OUT OF OR BE IN ANY WAY CONNECTED WITH, THE PERFORMANCE OF THIS LEASE
BY LESSEE. LESSEE SHALL, AT LESSEE'S OWN COST AND EXPENSE, INVESTIGATE
ALL SUCH CLAIMS AND DEMANDS, ATTEND TO THEIR SETTLEMENT OR OTHER
DISPOSITION, DEFEND ALL ACTIONS BASED THEREON WITH COUNSEL
SATISFACTORY TO THE CITY ATTORNEY, PAY ALL CHARGES OF ATTORNEYS, AND
PAY ALL OTHER COSTS AND EXPENSES OF ANY KIND, INCLUDING EXPERT WITNESS
FEES, ARISING FROM ANY SUCH LIABILITY, DAMAGE, LOSS, CLAIMS, DEMANDS, AND
ACTIONS.
28. DEFAULT AND TERMINATION.
A. If Lessee defaults in performance of any of the promises or covenants contained herein, City
may terminate this Lease following written notice to Lessee of the default and a reasonable
opportunity to cure. 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. Once terminated, the City has
the right, without further notice to Lessee, to re-enter the Premises and remove all persons
therefrom without being deemed guilty in any manner of trespass and also without prejudice to
any remedies against Lessee for arrears of rent or breach of covenant.
B. In the event that any rent is due and unpaid under the Lease, the City may resume
possession of the Premises and relet the same for the remainder of this Lease term at the best
rent the City may obtain, for the account of the Lessee, who must pay any resulting deficiency;
and the City will have a lien as security upon all crops, goods, wares, chattels, implements,
fixtures, furniture, tools, and other personal property which are located or were placed on the
Premises, which lien is cumulative of and in addition to any statutory landlord's lien created by
law.
C. In the event Lessee has paid the full cash rent at the start of the Lease or any applicable
annual Anniversary Date, Lessee shall have the right to harvest any existing crops that have been
planted prior to the termination of the Lease.
D. The failure of City or Lessee to insist on strict performance of any of the terms, covenants, or
conditions of this Lease is not a waiver of any right or remedy that City or Lessee may have and is
not a waiver of the right to require strict performance of all the terms, covenants and conditions of
the Lease thereafter nor is deemed to be a waiver of any remedy for the subsequent breach or
default of any term, covenant or condition of the Lease.
29. REMOVAL OF PERSONAL PROPERTY. It is Lessee's responsibility to remove its personal
property of every kind and type from the Premises prior to termination or expiration of the Lease.
Lessee agrees that any personal property remaining on the Premises after the termination or expiration
of the Lease automatically becomes the City's property without any further notice, action, or process of
law for disposition by the City as the City deems appropriate in the City Manager's sole discretion,
without compensation to Lessee. Lessee shall also be invoiced for the City's costs to remove Lessee's
personal property from the Premises after termination or expiration of the Lease, and Lessee shall pay
the invoice within 30 days of receipt.
30. CONDITION OF PROPERTY UPON EXPIRATION OR TERMINATION. Lessee covenants and
agrees that, upon expiration or any earlier termination of this Lease, however caused, Lessee shall quit
Page 10 of 16
and surrender the Premises and perform all repairs reasonably necessary to restore the Premises to
the same condition it was in at the time this Lease was entered into, reasonable wear and tear, acts of
God,fire and flood damage or destruction where Lessee is without fault, excepted.
31. RIGHTS OF THE CITY.
A. The City reserves the right to sell, use, or lease for a governmental or public use different
from the present use all or any part of the Premises at any time during the term of this Lease.
Should the Premises be sold, used, or leased before expiration of this Lease and the purchaser or
lessee is not willing to take the property subject to this Lease and demands immediate
possession, then the Lessee agrees to vacate within 30 days following receipt of the notice to
vacate. Should it become necessary for Lessee to vacate in case of a sale or lease,then,the City
will pay Lessee, for the Premises or portion thereof vacated, the following amounts, to-wit: a
proportionate share of the then-applicable annual Lease Payment paid,which share is determined
by dividing (i) the number of days of the term remaining after vacation by Lessee by (ii) the total
number of days in the term, and multiplying the resulting percentage by the annual Lease
Payment amount paid by Lessee.
B. The City reserves and excepts from this Lease those easements reasonably necessary for
the purpose of assigning, exploring, prospecting, mining, drilling, developing, producing, saving,
transporting, storing, treating, removing, and owning the reserved minerals and oil and gas in the
Premises to the extent such easements are implied under Texas common law to allow access to
severed estates.
C. 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.
D. It is understood and agreed by Lessee that the City retains sole authority to negotiate
settlement of any and all claims for damage by reason of activities in connection with the
operation, development, and exploration for oil, gas, and other minerals on the Premises. Lessee
shall promptly notify the City of any and all damages to the Premises and/or crops growing
thereon that may be occasioned by operation, development, or exploration for oil, gas, or other
minerals, or that may be occasioned by any other activity during the Lease term, which Lessee
observes, learns of, or has reason to be made aware of any such damage.
E. The City, by and through its officials, officers, employees, and agents, has the right at all
times during the Lease term to ingress and egress to the Premises for the purpose of conducting
any business incident to the activities of the City and for purposes of inspection, repair, fire or
police action, and enforcement of the terms of this Lease, and includes the regular and necessary
operation of vehicles and equipment on the shared roadways bisecting and crossing the
Premises.
32. CONDEMNATION. If the whole or a substantial part of the Premises are taken or condemned by
the City, or any entity with legal authority to exercise eminent domain rights, for any public use or
purpose, then and in that event, the term of this Lease shall cease and terminate from the date when
possession of the part or whole so taken or condemned is required for such use or purpose. If less
than a substantial part of the Premises are taken or condemned by the City and, as a result thereof,
Lessee believes the ability to continue the purpose of this Lease has been eliminated,the question of a
possible partial Lease Payment refund, if any, may be submitted in writing by Lessee to the City for
consideration.
Page 11 of 16
33. DISCLOSURE OF INTERESTS AND STATE OF TEXAS FORMS. Lessee agrees to comply with
City of Corpus Christi Ordinance No. 17112 and complete the Disclosure of Interests form as part of
this Lease contract. Lessee agrees to comply with Texas Government Code Section 2252.908 and
complete Form 1295 Certificate of Interested Parties as part of this Lease contract. For more
information. please review the information on the Texas Ethics Commission's website at
httos://www.ethics.state.tx.us. Lessee also 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, as Lessee, need to file a Form CIQ, please review the information on the City
Secretary's website at htto://www.cctexas.comfoovemmenticity-secretary/conflict-disclosurerndex.
34. MODIFICATIONS. No changes or modifications to this Lease may be made, nor any provision
waived, unless in writing and signed by a person authorized to sign lease agreements on behalf of each
respective party.
35. 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.
36. RELATIONSHIP OF THE 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.
37. 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
Lessees right thereafter to declare a forfeiture for like or other or succeeding breach or default.
Page 12 of 16
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 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, RCA
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.
Page 13 of 16
38. SEVERABILITY. If, for any reason, any section, paragraph, subdivision, dause, provision,
phrase, or word of this Lease or the application hereof to any person or circumstance is,to any extent,
held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of
competent jurisdiction, then the remainder of this Lease, or the application of said term or provision to
persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will
not be affected thereby, for it is the definite intent of the parties to this Lease that every section,
paragraph, subdivision, clause, provision, phrase or word hereof be given full force and effect for its
purpose. 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.
39. BINDING AGREEMENT. It is mutually understood and agreed that the covenants, conditions,
and provisions contained in this Lease to be performed by the respective parties are binding on the
parties and their respective successors, assigns,and heirs.
40. ENTIRETY CLAUSE. This Lease and the exhibits incorporated and attached hereto constitute
the entire agreement between the City and Lessee for the use granted. All other agreements, promises
and representations with respect thereto, unless contained in this Lease, are expressly revoked, as it is
the intention of the parties to provide for a complete understanding within the provisions of this
document, and the exhibits incorporated and attached hereto, the terms, conditions, promises, and
covenants relating to Lessee's use of the Premises.
Executed in triplicate by the parties. By Lessee's execution below, Lessee acknowledges that
Lessee has read this Lease and understands that this Lease is not binding on the City until
properly authorized by the City Council and executed by the City Manager or designee.
[SIGNATURE PAGE TO FOLLOW]
Page 14 of 16
LESSOR: CITY OF C• " - S CHRISTI ATTEST:
A
Sy •la Carrillo Rebecca Huerta
Assistant City Manager City Secretary
APPROVED AS TO LEGAL FORM: SAL,/ 3 l , 20 LT
(MILES RISLEY, CITY ATTORNEY
115
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AJ A.4,4- 4, (IC-C4/14A 4 ..(a.-() . _ ...... wilv u.--
Assistant City Attorney IT NOWICIL--...... .11-r .
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SECRETW�
LESSEE: 416
Scott Ordner, Partner Date
(; ‘--.2 ,r--_A
a artner Date
;\,...._z WI- ,f yxu { b 2 } 1'
Nova Ordner, Partner Date
• 111/ ( fref
Lisa uggs, Pa ner� 0 Date
THE STATE OF TEXAS §
COUNTY OFlacLc.E, §
This instrument was acknowledged before me on c)S day of 3-ave,,, , 2018, by
Scott Ordner
1/Vitta9s,as .1
!, .
�' i 'hi;,s MICHELE HELPERT
Notary Public - MY COMMISSION EXPIRES
tk " November 26,2018
Page 15 of 16
THE STATE OF TEXAS §
COUNTY OF fit,cce. §
This instrument was acknowledged before me on 25 day of..),Axe— ,2018, by
Shane Suggs.
N��44
�1'•Mt- MICHELE NELPERT
,}; MY COMMISSION EXPIRES ,f
Notary Pubic v+• November 28,2019
THE STATE OF TEXAS §
COUNTY OF Na.CGcS §
This instrument was acknowledged before me on AS—day of Ju..n,t, , 2018, by
Nova Ordner. _
9 ,l fii MICHELE REVERT
• i MY COMMISSION EXPW ,
•tary Pu• 4"l November 28,2019
THE STATE OF TEXAS §
COUNTY OF 14,,or of §
This instrument was acknowledged before me on .D-5--day of Tu-wc.. , 2018, by
Lisa Suggs.
A M,ry
Nota MtCNELEHEIPERT
Notary Public ?'i MY COMMISSION EXPIRES
' p r} November 28,2018
Attached and Incorporated by Reference:
Attachment A-Scope of Lease
Attachment B-Map of Premises
Attachment C-Insurance Requirements
Incorporated by Reference Only:
Exhibit 1:RFP No. 1507
Exhibit 2: Lessee's Submitted Proposal
Page 16 of 16
Attachment A
Scope of Lease
1.1. General Requirements
The Corpus Christi International Airport (CCIA) possess agricultural and grazing land,
which is located at 1000 International Drive, Corpus Christi, Texas. A significant
portion of land remains unimproved and available for agricultural and grazing use.
1.2. Scope of Lease
The Corpus Christi International Airport possess 1,311.54 acres of land on airport
property,which is available for lease. Out of 1,311.54 acres, approximately 1,282.81
acres is available for agricultural and approximately 28.73 is available for cattle
grazing. Parcel description shown in Exhibit A, Drainage ditch layout shown in Exhibit
B, and Airport Operating Area(AOA) shown in Exhibit C.
A.Farm land
The Farm Land is divided between two parcels.
1. Parcel 1
The first parcel as shown in Exhibit A is approximately 692.35 acres of land and all
acres of land are within the boundaries of the Airport security fence and will require
security backgrounds checks, airport badges and training in accordance with TSA
rules and regulations to access.The first parcel of land will also require the lessee to
undergo airport driver training in accordance with Federal Aviation Administration
rules and regulations.
2. Parcel 2
The second parcel as shown in Exhibit A is approximately 590.46 acres of land and
all the acres are outside the boundaries of Airport security fence.
B. Farm Land Lease Restriction
1. No crops shall be allowed along the side of runway 13-31 closer than 530' from the
runway centerline
2. No crops shall be allowed along the side of runway 18-36 closer than 530' from the
runway centerline.
3. No crops shall be allowed in the runway approach areas closer than 1000' from
the runway end.
4. No crops shall be allowed within 130' of the taxiway centerline.
5. Crops shall not be planted closer than 10 feet from the perimeter fence, access
roads, and drainage ditches.
6. Crops shall not block the line of sight between runways (mid-point to mid-point)
7. Aerial application of oil based product of any kind is prohibited. Automated
Weather Observation System(AWOS) sensors subject to contamination
RFP Template 09.13.17 Page 1 of 2
8. All equipment and hay bales must be moved back adjacent to the nearest
perimeter road at the end of each work day.
9. Cotton, Corn and Wheat are acceptable crops subject to harvesting prior to Bird
migration season. Bird Migration season generally runs from Mid-February through
May and early September through December.
C.Grazing Land-Parcel 3
The grazing land as shown in Exhibit A is available for lease is approximately 28.73
acres; and is outside the boundaries of the Airport security fence.
RFP Template 09.13.17 Page 2 of 2
CORPUS CI-IRISTI INTERNATIONAL AIRPORT
Attachment B
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Exhibit A
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INTERNATIONAL AIRPORT 2t11R ""+ iare
Attachment B
Exhibit B
Map of Premises: Drainage Ditch Layout
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RFP Template 09.13.17 Page 2 of 3
Attachment B
Exhibit C
Map of Premises:Airport Operating Area(AOA)
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RFP Template 09.13.17 Page 3 of 3
Attachment C
Insurance Requirements
LESSEES 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 subcontractor, to commence work until all similar insurance
required of any subcontractor has been obtained.
B. Lessee must furnish to the City's Risk Manager and Contract Administrator one (1)
copy 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 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 Per occurrence - aggregate
change or termination required on all
certificates and policies.
COMMERCIAL GENERAL LIABILITY $1,000,000 Per Occurrence
including: $1,000,000 Aggregate
1. Commercial Broad Form
2. Premises—Operations
3. Products/Completed
Operations
4. Contractual Liability
5. Independent Contractors •
6. Broad Form Property Damage
7. Personal Injury
REP Template 09.13.17 Page l of 3
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 statutory amounts
according to the Texas Department of Insurance, Division of Workers'
Compensation. 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 renewal 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
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
RFP Template 09.13.17 Page 2 of 3
• 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 hove the option to
suspend Lessee's performance should there be a lapse in coverage at any time
during this contract. Failure to provide and to maintain the required insurance shall
constitute a material breach of this contract.
F. In addition to any other remedies the City may have upon Lessee's failure to
provide and maintain any insurance or policy endorsements to the extent and
within the time herein required, the City shall have the right to order Lessee to stop
work hereunder, and/or withhold any payment(s) which become due to Lessee
hereunder until Lessee demonstrates compliance with the requirements hereof.
G. Nothing herein contained shall be construed as limiting in any way the extent to
which Lessee may be held responsible for payments of damages to persons or
property resulting from Lessee's or its subcontractor's performance of the work
covered under this 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.
2018 Insurance Requirements
Legal Dept.
Grazing and Farm Land Lease Insurance Requirements
01/18/2018 sw Risk Management
RFP Template 09.13.17 Page 3 of 3