HomeMy WebLinkAboutContract 49161 34567
CITY SECRETARY
4 '� CONTRACT NO.
RECENE� FORT WORTH MEACHAM INTERNATIONAL AIRPORT
a Mgi 2017 V HANGAR AND GROUND LEASE AGREEMENT
CIV 0 �Offf
R\jvomu a LEASE SITES 10S
(r
O
X68 9 S 4 is HANGAR AND GROUND LEASE AGREEMENT ("Lease") is made and entered
into by and between the CITY OF FORT WORTH ("Lessor"), a home rule municipal
corporation organized under the laws of the State of Texas, acting by and through Fernando Costa,
its duly authorized Assistant City Manager, and MONTEX DRILLING COMPANY ("Lessee"),
a TEXAS CORPORATION, acting by and through CHARLES B. MONCREIF, its duly
authorized Vice President.
AGREEMENT
In consideration of the mutual covenants, promises and obligations contained herein, the
parties agree as follows:
1. PROPERTY LEASED.
Lessor hereby demises to Lessee 51,736 square feet of ground space ("Ground Space"),
including a 16,500 square foot hangar ("Hangar"), known as Lease Site 10S ("Premises"),
at Fort Worth Meacham International Airport ("Airport"), as shown in Exhibit "A",
attached hereto and made a part of this Lease for all purposes.
2. TERM OF LEASE.
2.1. Initial Term.
The initial term of the Lease ("Initial Term") shall commence at 12:00 a.m. on
June 7,2017 ("Effective Date") and expire at 11:59 P.M. on May 31,2027, unless
terminated earlier as provided herein.
2.2 Renewal Term.
If Lessee performs and abides by all provisions and conditions of this Lease, upon
expiration of the Initial Term of this Lease, Lessee shall have two (2) consecutive
options to renew this Lease for an additional successive term of ten (10) years each
(each a "Renewal Term") at a rental rate calculated in accordance with Section 3.1
of this Lease and on terms and conditions that may be prescribed by Lessor at the
time. Lessee shall notify Lessor in writing of its intent to exercise a respective
option not less than ninety (90) and not more than one hundred eighty (180) days
prior to the expiration of the term then in effect. If Lessee does not exercise its
option for a first Renewal Term within the time frame provided herein, Lessee shall
automatically and simultaneously forfeit its second option to lease the Premises for a
second Renewal Term, and Lessee shall no longer have any rights or interest in the
MONTEX DRILLING COMPANY -—
Hangar and Ground Lease
Lease Site 1 OS
�'®
Fort Worth Meacham International Airport OFFICIO
Pagel of 21 C'.ry
SECRETARY
FT.Wo
Premises following the expiration of the Initial Term, except as specifically set forth
in this Lease.
2.3. Holdover.
If Lessee holds over after the expiration of the Initial Term or any Renewal Term,
this action will create a month-to-month tenancy. In this event, for and during the
holdover period, Lessee agrees to pay all applicable rentals, fees and charges at the
rates provided by Lessor's Schedule of Rates and Charges or similarly published
schedule in effect at the time of the Holdover. The hangar rate will be adjusted to
equal the then Fair Market Value, as determined by Lessor's market analysis. In no
case shall the hangar rate be less than the value assessed upon completion of a
property appraisal completed by a third party vendor that has been approved and
secured by Lessor. A ten percent (10%) increase will be added to the Fair Market
Value rate until a new lease agreement is approved and executed. The holdover
period will not exceed six (6) months from the time the Lease expires. Upon the
expiration of the holdover period,the City may exercise all legal rights and remedies
available, including but not limited to eviction.
3. RENT.
3.1. Rates and Adjustments
The rental rates under this Lease are based on Lessor's current published Schedule
of Rates and Charges. Rental rates are subject to increase beginning October 1,
2018, and on October 1St of any subsequent year during the Initial Term ("Annual
Rent Adjustments"), to reflect any upward change in the Consumer Price Index for
the Dallas/Fort Worth Metropolitan Area, as announced by the United States
Department of Labor or successor agency (i) for the first increase, since the
Effective Date of this Lease and(ii) for each subsequent increase, since the effective
date of the last increase; provided, however, that Lessee's rental rates shall not
exceed the then-current rates prescribed by Lessor's published Schedule of Rates
and Charges for the type or types of property similar to the type or types of property
that comprise the Premises.
3.1.1 Hangar Rate
Lessee shall commence the payment of rent for the Hangar on the Effective
Date. Lessee hereby promises and agrees to pay Lessor, as annual rent for
the Hangar, Seventy Thousand One Hundred Twenty-Five Dollars and
00/100 ($70,125.00), at a rate of Four Dollars and 25/100 ($4.25)per square
foot, payable in equal monthly installments of Five Thousand Eight Hundred
Forty Three Dollars and 75/100 ($5,843.75).
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site 10S
Fort Worth Meacham International Airport
Page 2 of 21
3.1.2 Ground Rate
Lessee shall commence the payment of rent for the Ground Space on the
Effective Date. Lessee hereby promises and agrees to pay Lessor, as annual
rent for the Ground Space, Twenty Thousand Six Hundred Ninety Four
Dollars and 40/100 ($20,694.40), at a rate of Forty cents ($0.40) per square
foot, payable in equal monthly installments of One Thousand Seven
Hundred Twenty-Four and 53/100 ($1,724.53).
3.2. Five-Year Adiustments, Ground Rate.
In addition to the Annual Rent Adjustments, on October 1,2022, and every fifth
(5th)year thereafter for the remainder of the Initial Term(i.e. on October 1 st of
2027,2032, and 2037),the Ground rate shall automatically be adjusted to equal the
then-current rates prescribed by the Schedule of Rates and Charges for the type or
types of property at the Airport similar to the type or types of property that comprise
the Premises.
3.3. Ten-Year Adjustments,Hamer Rate.
In addition to the Annual Rent Adjustments, on October 1, 2027, and every tenth
(10th) year for the remainder of the Initial Term and any Renewal Term, the Hangar
rate shall automatically be adjusted to equal the then appraised Fair Market Value,
as prescribed by the Schedule of Rates and Charges for the type or types of property
at the Airport similar to the type or types of property that comprise the Premises.
3.4 Payment Dates and Late Fees.
Monthly rent payments are due on or before the first (1st) day of each month.
Payments must be received during normal business hours by the due date at the
location for Lessor's Aviation Department set forth in Section 15. Rent shall be
considered past due if Lessor has not received full payment by close of business the
tenth (10th) day of the month for which payment is due. Without limiting Lessor's
termination rights as provided by this Lease, Lessor will assess a late penalty charge
of ten percent(10%)per month on the entire balance of any overdue rent that Lessee
may accrue.
4. CONSTRUCTION AND IMPROVEMENTS.
4.1 Mandatory Improvements
As additional security for this Lease, Lessee covenants and agrees that it shall
construct the improvements on the Premises owned by the City of Fort Worth.
Lessee may not initiate any improvement on or to the Premises unless it first
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site I OS
Fort Worth Meacham International Airport
Page 3 of 21
submits all plans, specifications and estimates for the costs of same to Lessor in
writing,and also requests and receives in writing approval from Lessor's Director of
Airport Systems or authorized representative ("Director"). The improvements
approved shall be referred to as "Mandatory Improvements", as referenced in
Exhibit"B".
4.2. Discretionary Improvements
Lessee may, at its sole discretion, perform modifications, renovations,
improvements or other construction work on any tract of the Premises. Lessee may
not initiate any Discretionary Improvement on or to the Premises unless it first
submits all plans, specifications and estimates for the costs of same to Lessor in
writing, and also requests and receives in writing approval from Lessor's Director of
Airport Systems or authorized representative ("Director"). Lessee covenants and
agrees that it shall fully comply with all provisions of this Section 4 in the
construction of any such Discretionary Improvements. Lessor shall promptly
review, consider and make a decision on approval of such plans, specifications and
estimates. Upon completion of any such Discretionary Improvements or the
termination of this Lease, Lessor shall take full title to any Discretionary
Improvements on the Premises, provided that trade fixtures shall remain the
property of Lessee and may be removed so long as Lessee repairs any damage
caused thereby.
4.3. Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to any Discretionary Improvement, including, at a minimum, a copy of the
Certificate of Occupancy, a complete set of record drawings and/or as-built
drawings in Adobe PDF and AutoCAD formats, and a summary of the total
cost/value of the Discretionary Improvements.
4.4. Bonds Required of Lessee.
Prior to the commencement of any Mandatory or Discretionary Improvement
(collectively, "Improvements"), Lessee shall deliver to Lessor a bond, executed by
a corporate surety in accordance with Texas Government Code, Chapter 2253, as
amended, in the full amount of each construction contract or project. The bonds
shall guarantee (i) satisfactory compliance by Lessee with all applicable
requirements, terms and conditions of this Lease, including, but not limited to, the
satisfactory completion of the respective Improvements, and (ii) full payments to all
persons, firms, corporations or other entities with whom Lessee has a direct
relationship for the construction of such Improvements.
In lieu of the required bond, Lessee may provide Lessor with a cash deposit or an
assignment of a certificate of deposit in an amount equal to 125%of the full amount
of each construction contract or project. If Lessee makes a cash deposit, Lessee
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 4 of 21
shall not be entitled to any interest earned thereon. Certificates of deposit shall be
from a financial institution in the Dallas-Fort Worth Metropolitan Area which is
insured by the Federal Deposit Insurance Corporation and acceptable to Lessor. The
interest earned on the certificate of deposit shall be the property of Lessee and
Lessor shall have no rights in such interest. If Lessee fails to complete the
respective Improvements, or if claims are filed by third parties on grounds relating
to such Improvements, Lessor shall be entitled to draw down the full amount of
Lessee's cash deposit or certificate of deposit and apply the proceeds to complete
the Improvements or satisfy the claims, provided that any balance shall be remitted
to Lessee.
4.5 Bonds Required of Lessee's Contractors.
Prior to the commencement of any Discretionary Improvement, each of Lessee's
contractors shall execute and deliver to Lessee surety performance and payment
bonds in accordance with the Texas Government Code, Chapter 2253, as amended,
to cover the costs of all work performed under such contractor's contract with
Lessee. Lessee shall provide Lessor with copies of such bonds prior to the
commencement of such Discretionary Improvement. The bonds shall guarantee (i)
the faithful performance and completion of all construction work in accordance with
the final plans and specifications as approved by Lessor, and (ii) full payment for all
wages for labor and services and of all bills for materials, supplies and equipment
used in the performance of the construction contract. Such bonds shall name both
Lessor and Lessee as dual obligees. If Lessee serves as its own contractor, Section
4.5 shall apply.
4.6 Releases by Lessor Upon Completion of Construction Work.
Lessor will allow Lessee a dollar-for-dollar reimbursement from its cash deposit
account or reduction of its claim upon Lessor's certificate of deposit to the extent of
construction costs paid through that date upon (i) where Lessee serves as its own
contractor, verification that Lessee has completed construction work, or (ii) where
Lessee uses a contractor, receipt of the contractor's invoice and verification that the
contractor has completed its work and released Lessee to the extent of Lessee's
payment for such work, including bills paid affidavits and final waivers of liens.
Any unused amounts in the cash deposit account will be refunded to Lessee upon
final completion of the construction work.
5. USE OF PREMISES.
Lessee hereby agrees to use the Premises solely for aviation-related purposes only and
strictly in accordance with the terms and conditions of this Lease. Lessee shall have the
right, without the consent of Lessor, to sublease portions of the Premises to various third
parties ("Sublessees") for aviation-related purposes only under terms and conditions
acceptable to and determined by Lessee. All written agreements executed by Lessee to
Sublessees for any portion of the Premises shall contain terms and conditions that(i) do not
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 5 o1`21
conflict with Lessee's duties and obligations under this Lease; (ii) incorporate the terms and
provisions of this Lease; (iii) restrict the use of the Premises to aircraft storage or other
aviation or aviation-related purposes acceptable to Lessor; and(iv)treat users of the same or
substantially similar facilities in a fair and non-discriminatory manner. Lessee shall use a
standard lease form for all Sublessees and shall submit a copy of such standard lease form
to the Director prior to Lessee's execution of its first lease and from time to time thereafter
following any material changes to such lease form. Lessee may make non-material
modifications to its standard lease to the extent that such are not contrary to Lessor's
Sponsor's Assurances(as defined below)without the prior written consent of Lessor.
6. REPORTS,AUDITS AND RECORDKEEPING.
Upon the request of Lessor, within thirty(30) days following the end of each calendar year,
Lessee shall provide Lessor with a written annual report, in a form acceptable to the
Director, that reflects Lessee's rental rates for the immediately preceding calendar year.
Lessor may request, and Lessee shall promptly provide, similar reports on a more frequent
basis that reflect Lessee's rental rates on the Premises for the period requested by Lessor.
These reports shall be delivered to Lessor's Department of Aviation at the address provided
in Section 15. In addition, Lessee shall keep and maintain books and records pertaining to
Lessee's operations at the Airport and other obligations hereunder in a manner satisfactory
to Lessor's Internal Auditor and at a location within the City of Fort Worth. Upon Lessor's
request and following reasonable advance notice, Lessee will make such books and records
available for review by Lessor during Lessee's normal business hours. Lessor, at Lessor's
sole cost and expense, shall have the right to audit such books and records in order to ensure
compliance with the terms of this Lease and, to the extent applicable, the Sponsor's
Assurances made by Lessor to the Federal Aviation Administration. For purposes of this
Lease,the term"Sponsor's Assurances"shall mean the assurances provided by Lessor as an
airport sponsor in connection with Lessor's application for, or acceptance of, FAA
administered airport financial assistance programs.
7. UTILITIES.
Lessee, at Lessee's sole cost and expense, shall be responsible for the installation and use of
all utility services to all portions of the Premises and for all other related utility expenses,
including, but not limited to, deposits and expenses required for the installation of meters.
Lessee further covenants and agrees to pay all costs and expenses for any extension,
maintenance or repair of any and all utilities serving the Premises. In addition, Lessee
agrees that all utilities, air conditioning and heating equipment and other electrically-
operated equipment which may be used on the Premises shall fully comply with Lessor's
Mechanical, Electrical,Plumbing, Building and Fire Codes("Codes"), as they exist or may
hereafter be amended.
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 6 of 21
8. MAINTENANCE AND REPAIRS.
8.1. Maintenance and Repairs by Lessee.
Lessee agrees to keep and maintain the Premises in a good, clean and sanitary
condition at all times, reasonable wear and tear expected. Lessee covenants and
agrees that it will not make or suffer any waste of the Premises. Lessee, at Lessee's
sole cost and expense,will make all repairs or replacements necessary to prevent the
deterioration in condition or value of the Premises, including, but not limited to, the
maintenance of and repairs to all hangars and other structures, doors, windows and
roofs, and all fixtures, equipment, hangar modifications and surrounding pavement
on the Premises. Lessee shall be responsible for all damages caused by Lessee, its
agents, servants, employees, contractors, subcontractors, licensees or invitees, and
Lessee agrees to fully repair or otherwise cure all such damages at Lessee's sole cost
and expense.
Lessee agrees that all improvements, trade fixtures, furnishings, equipment and
other personal property of every kind or description which may at any time be on the
Premises shall be at Lessee's sole risk or at the sole risk of those claiming under
Lessee. Lessor shall not be liable for any damage to such property or loss suffered
by Lessee's business or business operations, which may be caused by the bursting,
overflowing or leaking of sewer or steam pipes, from water from any source
whatsoever, or from any heating fixtures, plumbing fixtures, electric wires, noise,
gas or odors,or from causes of any other matter.
8.2. Compliance with ADA.
Lessee, at its sole cost and expense, agrees to keep and maintain the Premises in full
compliance at all times with the Americans with Disabilities Act of 1990, as
amended ("ADA"). In addition, Lessee agrees that all improvements it makes at
the Airport shall comply with all ADA requirements.
8.3. Inspections.
8.3.1. Lessor shall have the right and privilege, through its officers, agents,
servants or employees, to inspect the Premises. Except in the event of an
emergency, Lessor shall conduct such inspections during Lessee's ordinary
business hours and shall use its best efforts to provide Lessee at least four
(4)hours'notice prior to any inspection.
8.3.2. If Lessor determines during an inspection of the Premises that Lessee is
responsible under this Lease for any maintenance or repairs, Lessor shall
notify Lessee in writing. Lessee agrees to begin such maintenance or repair
work diligently within thirty (30) calendar days following receipt of such
notice and to then complete such maintenance or repair work within a
reasonable time, considering the nature of the work to be done. If Lessee
fails to begin the recommended maintenance or repairs within such time or
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 7 of 21
fails to complete the maintenance or repairs within a reasonable time, Lessor
may, in its discretion, perform such maintenance or repairs on behalf of
Lessee. In this event, Lessee will reimburse Lessor for the cost of the
maintenance or repairs, and such reimbursement will be due on the date of
Lessee's next monthly rent payment following completion of the
maintenance or repairs.
8.3.3. During any inspection, Lessor may perform any obligations that Lessor is
authorized or required to perform under the terms of this Lease or pursuant
to its governmental duties under federal, state or local laws, rules or
regulations.
8.3.4. Lessee will permit the City's Fire Marshal or his or her authorized agents to
inspect the Premises and Lessee will comply with all requirements of the
Fire Marshal or his or her authorized agents that are necessary to bring the
Premises into compliance with the City of Fort Worth Fire Code and
Building Code provisions regarding fire safety, as such provisions exist or
may hereafter be amended. Lessee shall maintain in proper condition
accessible fire extinguishers of a number and type approved by the Fire
Marshal or his or her authorized agents for the particular hazard involved.
8.4. Environmental Remediation.
To the best of Lessor's knowledge, the Premises comply with all applicable federal,
state and local environmental regulations or standards. Lessee agrees that it has
inspected the Premises and is fully advised of its own rights without reliance upon
any representation made by Lessor concerning the environmental condition of the
Premises. LESSEE,AT ITS SOLE COST AND EXPENSE,AGREES THAT IT
SHALL BE FULLY RESPONSIBLE FOR THE REMEDIATION OF ANY
VIOLATION OF ANY APPLICABLE _FEDERAL, STATE OR LOCAL
ENVIRONMENTAL REGULATION OR STANDARD THAT IS CAUSED BY
LESSEE, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRACTORS,SUBCONTRACTORS OR INVITEES.
9. SIGNS.
Lessee may, at its sole expense and with the prior written approval of the Director, install
and maintain signs on the exterior of the Premises related to Lessee's business operations.
Such signs, however, must be in keeping with the size, color, location and manner of
display of other signs at the Airport. Lessee shall maintain all such signs in a safe, neat,
sightly and physically good condition.
10. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site I OS
Fort Worth Meacham International Airport
Page 8 of 2l
10.1. Lessor reserves the right to take any action it considers necessary to protect the
aerial approaches of the Airport against obstruction, including, but not limited to,
the right to prevent Lessee from erecting or permitting to be erected any building or
other structure which, in the opinion of Lessor, would limit the usefulness of the
Airport, constitute a hazard to aircraft or diminish the capability of existing or future
avigational or navigational aids used at the Airport.
10.2 Lessor reserves the right to develop and improve the Airport as it sees fit, regardless
of the desires or view of Lessee, and without interference or hindrance by or on
behalf of Lessee. Accordingly, nothing contained in this Lease shall be construed to
obligate Lessor to relocate Lessee as a result of any such Airport developments or
improvements.
10.3 This Lease shall be subordinate to the provisions of any existing or future agreement
between Lessor and the United States Government,which relates to the operation or
maintenance of the Airport and is required as a condition for the expenditure of
federal funds for the development, maintenance or repair of Airport infrastructure.
In the event that any such existing or future agreement directly causes a material
restriction, impairment or interference with Lessee's primary operations on the
Premises ("Limitation") for a period of less than seven (7) calendar days, this
Lease shall continue in full force and effect. If the Limitation lasts more than seven
(7) calendar days, Lessee and Lessor shall negotiate in good faith to resolve or
mitigate the effect of the Limitation. If Lessee and Lessor are in good faith unable
to resolve or mitigate the effect of the Limitation, and the Limitation lasts between
seven (7) and one hundred eighty (180) days, then for such period (i) Lessee may
suspend the payment of any rent due hereunder, but only if Lessee first provides
adequate proof to Lessor that the Limitation has directly caused Lessee a material
loss in revenue; (ii) subject to ordinary wear and tear, Lessor shall maintain and
preserve the Premises and its improvements in the same condition as they existed on
the date such Limitation commenced; and (iii) the term of this Lease shall be
extended,at Lessee's option, for a period equal to the duration of such Limitation. If
the Limitation lasts more than one hundred eighty (180) days, then (i) Lessor and
Lessee may, but shall not be required to, (a) further adjust the payment of rent and
other fees or charges, (b)renegotiate maintenance responsibilities and (c) extend the
term of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days'
written notice to Lessor.
10.4 During any war or national emergency, Lessor shall have the right to lease any part
of the Airport, including its landing area, to the United States Government. In this
event, any provisions of this instrument which are inconsistent with the provisions
of the lease to the Government shall be suspended. Lessor shall not be liable for any
loss or damages alleged by Lessee as a result of this action. However, nothing in
this Lease shall prevent Lessee from pursuing any rights it may have for
reimbursement from the United States Government. If any lease between Lessor
and the United States Government executed pursuant to this Section 10.4 directly
causes a Limitation for a period of less than seven(7)calendar days,this Lease shall
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 9 of 21
continue in full force and effect. If the Limitation lasts more than seven (7)calendar
days, Lessee and Lessor shall negotiate in good faith to resolve or mitigate the effect
of the Limitation. If Lessee and Lessor are in good faith unable to resolve or
mitigate the effect of the Limitation, and the Limitation lasts between seven (7) and
one hundred eighty (180) days, then for such period (i) Lessee may suspend the
payment of any rent due hereunder, but only if Lessee first provides adequate proof
to Lessor that the Limitation has directly caused Lessee a material loss in revenue;
(ii) subject to ordinary wear and tear, Lessor shall maintain and preserve the
Premises and its improvements in the same condition as they existed on the date
such Limitation commenced; and (iii) the term of this Lease shall be extended, at
Lessee's option, for a period equal to the duration of such Limitation. If the
Limitation lasts more than one hundred eighty(180)days,then(i)Lessor and Lessee
may, but shall not be required to, (a) further adjust the payment of rent and other
fees or charges, (b) renegotiate maintenance responsibilities and (c) extend the term
of this Lease, or (ii) Lessee may terminate this Lease upon thirty (30) days' written
notice to Lessor.
10.5 Lessor covenants and agrees that during the term of this Lease it will operate and
maintain the Airport and its facilities as a public airport consistent with and pursuant
to the Sponsor's Assurances given by Lessor to the United States Government
through the Federal Airport Act; and Lessee agrees that this Lease and Lessee's
rights and privileges hereunder shall be subordinate to the Sponsor's Assurances.
10.6 Lessee's rights hereunder shall be, subject to all existing and future utility and
drainage easements and rights-of-way granted by Lessor for the installation,
maintenance, inspection, repair or removal of facilities owned or operated by
electric, gas, water, sewer, communication or other utility companies; provided,
however, that any such easements and rights-of-way granted by Lessor after the
Effective Date of this Lease shall not have a material adverse effect on Lessee's
rights under this Lease. Lessee's rights shall additionally be subject to all rights
granted by any ordinance or statute which allows utility companies to use publicly-
owned property for the provision of utility services.
10.7 Lessor agrees Lessee shall have the right of ingress and egress to and from the
Premises by means of roadways for automobiles and taxiways for aircraft including
access during the construction phase of airport improvements, unless otherwise
agreed to in writing by both parties. Such rights shall be consistent with the rules
and regulations with respect to the occupancy and use of airport premises as adopted
from time to time by the City of Fort Worth and by the Federal Aviation
Administration or any other state,federal or local authority.
11. INSURANCE.
Lessee shall procure and maintain at all times, in full force and effect, a policy or policies of
insurance as specified herein, naming the City of Fort Worth, its Officers, Employees and
Volunteers as additional insureds and covering all public risks related to the leasing, use,
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 10 of 21
occupancy, maintenance, existence or location of the Premises. Lessee shall obtain the
required insurance in accordance with Exhibit "C", the "City of Fort Worth Aviation
Insurance Requirements"attached hereto and made part of this Lease for all purposes.
In addition, Lessee shall be responsible for all insurance to construction, improvements,
modifications or renovations to the Premises and for personal property of its own or in its
care,custody or control.
11.1. Adjustments to Required Coverage and Limits.
Insurance requirements, including additional types of coverage and increased limits
on existing coverages, are subject to change at Lessor's option and as necessary to
cover Lessee's and any Sublessees' operations at the Airport. Lessee will
accordingly comply with such new requirements within thirty (30) days following
notice to Lessee.
11.2. Certificates.
As a condition precedent to the effectiveness of this Lease, Lessee shall furnish
Lessor with appropriate certificates of insurance signed by the respective insurance
companies as proof that it has obtained the types and amounts of insurance coverage
required herein. Lessee hereby covenants and agrees that not less than thirty (30)
days prior to the expiration of any insurance policy required hereunder, it shall
provide Lessor with a new or renewal certificate of insurance. In addition, Lessee
shall, at Lessor's request, provide Lessor with evidence that it has maintained such
coverage in full force and effect.
11.3. Additional Requirements.
Lessee shall maintain its insurance with insurers authorized to do business in the
State of Texas and which are reasonably satisfactory to Lessor. The policy or
policies of insurance shall be endorsed to cover all of Lessee's operations at the
Airport, to grant additional insured status to the City, its Officers, Employees and
Volunteers, and to provide that no material changes in coverage, including, but not
limited to, cancellation, termination, non-renewal or amendment, shall be made
without thirty (30) days' prior written notice to Lessor. Lessor shall be responsible
for notifying the City of any change to its insurance coverage that amends or alters
the coverage required by this Lease.
12. INDEPENDENT CONTRACTOR.
It is expressly understood and agreed that Lessee shall operate as an independent contractor
as to all rights and privileges granted herein, and not as an agent,representative or employee
of Lessor. Lessee shall have the exclusive right to control the details of its operations and
activities on the Premises and shall be solely responsible for the acts and omissions of its
officers, agents, servants, employees, contractors, subcontractors, patrons, licensees and
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page I I of 21
invitees. Lessee acknowledges that the doctrine of respondeat superior shall not apply as
between Lessor and Lessee, its officers, agents, employees, contractors and subcontractors.
Lessee further agrees that nothing herein shall be construed as the creation of a partnership
or joint enterprise between Lessor and Lessee.
13. INDEMNIFICATION.
LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR
PROPERTY LOSS, PROPERTY DAMAGE AND/OR PERSONAL INJURY OF ANY
KIND, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KIND OR
CHARACTER, WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN
CONNECTION WITH ITS USE OF THE AIRPORT UNDER THIS LEASE OR WITH
THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS
OFFICERS,AGENTS,SERVANTS OR EMPLOYEES.
DURING THE TERM OF THIS LEASE, LESSEE COVENANTS AND AGREES TO,
AND DOES TO THE EXTENT ALLOWED BY LAW, WITHOUT WAIVING ANY
DEFENSES PROVIDED BYLAW,HEREB Y INDEMNIFY,HOLD HARMLESS AND
DEFEND LESSOR, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES,
FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR EITHER
PROPERTY DAMAGE OR LOSS, INCLUDING ALLEGED DAMAGE OR LOSS TO
LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS, AND/OR
PERSONAL INJURY,INCLUDING DEATH, TO ANYAND ALL PERSONS, OFANY
KIND OR CHARACTER, WHETHER REAL OR ASSERTED,ARISING OUT OF OR
IN CONNECTION WITH LESSEE'S USE OF THE AIRPORT UNDER THIS LEASE
OR WITH THE USE, LEASING, MAINTENANCE, OCCUPANCY, EXISTENCE OR
LOCATION OF THE PREMISES, EXCEPT TO THE EXTENT CAUSED BY THE
GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF LESSOR, ITS
OFFICERS AGENTS,SERVANTS OR EMPLOYEES.
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR
ANY AND ALL INJURIES OR DAMAGES TO LESSOR'S PROPERTY WHICH
ARISE OUT OF OR IN CONNECTION WITHANYAND ALL ACTS OR OMISSIONS
OF LESSEE, ITS OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS,
SUBCONTRACTORS, LICENSEES OR INVITEES, EXCEPT TO THE EXTENT
CAUSED BY THE GROSS NEGLIGENCE OR INTENTIONAL MISCONDUCT OF
LESSOR,ITS OFFICERS,AGENTS,SERVANTS OR EMPLOYEES.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE, ANY
SUBLESSEES OR THEIR PROPERTY. LESSOR IS OBLIGATED ONLY TO
PROVIDE SECURITY ADEQUATE TO MAINTAIN LESSOR'S CERTIFICATION
UNDER FAA REGULATIONS. LESSEE SHALL COMPLY WITH ALL
APPLICABLE REGULATIONS OF THE FAA RELATING TO AIRPORT SECURITY.
LESSEE SHALL PAY ALL FINES IMPOSED BY THE FAA ON LESSOR OR
LESSEE RESULTING FROM LESSEE'S OR ANY SUBLESSEES' FAILURE TO
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 12 of 21
COMPLY WITH SUCH FAA REGULATIONS OR TO PREVENT UNAUTHORIZED
PERSONS OR PARTIES FROM OBTAINING ACCESS TO THE AIR OPERATIONS
AREA OF THE AIRPORT FROM THE PREMISES.
14. TERMINATION.
In addition to termination rights contained elsewhere in this Lease, Lessor shall have the
right to terminate this Lease as follows:
14.1. Failure by Lessee to Pay Rent,Fees or Other Charges.
If Lessee fails to pay any rent, fees or other charges due under this Lease, Lessor
shall deliver to Lessee a written invoice and notice to pay the invoice within ten(10)
calendar days. If Lessee fails to pay the balance outstanding within such time,
Lessor shall have the right to terminate this Lease immediately.
14.2. Breach or Default by Lessee.
If Lessee commits any breach or default, other than Lessee's failure to pay rent,
Lessor shall deliver written notice to Lessee specifying the nature of such breach or
default. Lessee shall have thirty (30) calendar days following such written notice to
cure, adjust or correct the problem to the standard existing prior to the breach. If
Lessee fails to cure the breach or default within such time period, Lessor shall have
the right to terminate this Lease immediately, unless such breach or default is not
susceptible to cure within thirty(30)calendar days, in which event Lessee shall have
such additional time to effect a cure as is determined by Lessor.
14.3. Abandonment or Non-Use of the Premises.
Lessee's abandonment or non-use of the Premises for any reason for more than thirty
(30) consecutive calendar days shall constitute grounds for immediate termination
of this Lease by Lessor, unless such non-use is caused by Force Majeure,as set forth
in Section 27 below.
14.4. Lessee's Financial Obligations to Lessor upon Termination,Breach or Default.
If Lessor terminates this Lease for any non-payment of rent, fees or other charges or
for any other breach or default as provided in Sections 14.1, 14.2 or 14.3 of this
Lease, Lessee shall be liable for and shall pay to Lessor all rent due Lessor for the
remainder of the term then in effect as well as all arrearages of rentals, fees and
charges payable hereunder. In no event shall a reentry onto or reletting of the
Premises by Lessor be construed as an election by Lessor to forfeit any of its rights
under this Lease.
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site 10S
Fort Worth Meacham International Airport
Page 13 of 21
14.5. Rights of Lessor Upon Termination or Expiration.
Upon termination or expiration of this Lease, all rights, powers and privileges
granted to Lessee hereunder shall cease and Lessee shall vacate the Premises.
Within twenty (20) days following the effective date of termination or expiration,
Lessee shall remove from the Premises all trade fixtures, tools, machinery,
equipment,materials and supplies placed on the Premises by Lessee pursuant to this
Lease. After such time, Lessor shall have the right to take full possession of the
Premises, by force if necessary, and to remove any and all parties and property
remaining on any part of the Premises. Lessee agrees that it will assert no claim of
any kind against Lessor, its agents, servants, employees or representatives, which
may stem from Lessor's termination of this Lease or any act incident to Lessor's
assertion of its right to terminate or Lessor's exercise of any rights granted
hereunder.
15. NOTICES.
Notices required pursuant to the provisions of this Lease shall be conclusively determined to
have been delivered (i) when hand-delivered to the other party at the address listed below,
or at such other address as the receiving party designates by proper notice to the sending
party, or (ii) three (3) days after it has been deposited in the United States Mail, postage
prepaid,addressed as follows:
To LESSOR: To LESSEE:
City of Fort Worth Montex Drilling Company
Aviation Department Attention: Charles B.Moncrief
201 American Concourse, Suite 330 950 Commerce Street
Fort Worth TX 76106 Fort Worth,Texas 76102
16. ASSIGNMENT AND SUBLETTING.
16.1. In General.
Lessee shall have the right to sublease portions of the Premises as provided by and
in accordance with Section 5 of this Lease. Otherwise, Lessee shall not assign, sell,
convey, sublease or transfer the entirety of its rights, privileges, duties or interests
granted by this Lease without the advance written consent of Lessor.
16.2. Conditions of Approved Assignments and Subleases.
If Lessor consents to any assignment or sublease, all terms, covenants and
agreements set forth in this Lease shall apply to the assignee or sublessee, and such
assignee or sublessee shall be bound by the terms and conditions of this Lease the
same as if it had originally executed this Lease. The failure or refusal of Lessor to
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 14 of 21
approve a requested assignment or sublease shall not relieve Lessee of its
obligations hereunder, including payment of rentals,fees and charges.
17. LIENS BY LESSEE.
Lessee acknowledges that it has no authority to engage in any act or to make any contract
which may create or be the foundation for any lien upon the property or interest in the
property of Lessor. If any such purported lien is created or filed, Lessee, at its sole cost and
expense, shall liquidate and discharge the same within thirty (30) days of such creation or
filing. Lessee's failure to discharge any such purported lien shall constitute a breach of this
Lease and Lessor may terminate this Lease upon thirty (30) days' written notice. However,
Lessee's financial obligation to Lessor to liquidate and discharge such lien shall continue in
effect following termination of this Lease and until such a time as the lien is discharged.
18. TAXES AND ASSESSMENTS.
Lessee agrees to pay any and all federal, state or local taxes or assessments which may
lawfully be levied against Lessee due to Lessee's use or occupancy of the Premises or any
improvements or property placed on the Premises by Lessee as a result of its occupancy.
19. COMPLIANCE WITH LAWS,ORDINANCES,RULES AND REGULATIONS.
Lessee covenants and agrees that it shall not engage in any unlawful use of the Premises.
Lessee further agrees that it shall not permit its officers, agents, servants, employees,
contractors, subcontractors, patrons, licensees or invitees to engage in any unlawful use of
the Premises and Lessee immediately shall remove from the Premises any person engaging
in such unlawful activities. Unlawful use of the Premises by Lessee itself shall constitute an
immediate breach of this Lease.
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of Lessor; all rules and regulations established by the Director; and all rules and
regulations adopted by the City Council pertaining to the conduct required at airports owned
and operated by the City, as such laws, ordinances, rules and regulations exist or may
hereafter be amended or adopted. If Lessor notifies Lessee or any of its officers, agents,
employees, contractors, subcontractors, licensees or invitees of any violation of such laws,
ordinances, rules or regulations, Lessee and its officers, agents, employees, contractors,
subcontractors, licensees or invitees shall immediately desist from and correct the violation.
20. NON-DISCRIMINATION COVENANT.
Lessee,for itself, its personal representatives, successors in interest and assigns, as part of
the consideration herein, agrees as a covenant running with the land that no person shall be
excluded from participation in or denied the benefits of Lessee's use of the Premises on the
basis of race, color, national origin, religion, disability, sex, sexual orientation,transgender,
gender identity or gender expression. Lessee further agrees for itself, its personal
representatives, successors in interest and assigns that no person shall be excluded from the
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site 10S
Fort Worth Meacham International Airport
Page 15 of 21
provision of any services on or in the construction of any improvements or alterations to the
Premises on grounds of race, color, national origin, religion, disability, sex, sexual
orientation,transgender, gender identity or gender expression.
Lessee agrees to furnish its accommodations and to price its goods and services on a fair
and equal basis to all persons. In addition, Lessee covenants and agrees that it will at all
times comply with any requirements imposed by or pursuant to Title 49 of the Code of
Federal Regulations, Part 21, Non-Discrimination in Federally Assisted Programs, of the
Department of Transportation and with any amendments,to these regulations which may
hereafter be enacted.
If any claim arises from an alleged violation of this non-discrimination covenant by Lessee,
its personal representatives, successors in interest or assigns, Lessee agrees to indemnify
Lessor and hold Lessor harmless.
21. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary
for the operation of its operations at the Airport.
22. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Lease, Lessor does not waive or
surrender any of its governmental powers.
23. NO WAIVER.
The failure of Lessor to insist upon the performance of any term or provision of this Lease
or to exercise any right granted herein shall not constitute a waiver of Lessor's right to insist
upon appropriate performance or to assert any such right on any future occasion.
24. VENUE AND JURISDICTION.
If any action, whether real or asserted, at law or in equity, arises on the basis of any
provision of this Lease or of Lessee's operations on the Premises, venue for such action
shall lie in state courts located in Tarrant County, Texas or the United States District Court
for the Northern District of Texas, Fort Worth Division. This Lease shall be construed in
accordance with the laws of the State of Texas.
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 16 of 21
25. ATTORNEYS' FEES.
In the event there should be a breach or default under any provision of this Lease and either
party should retain attorneys or incur other expenses for the collection of rent, fees or
charges, or the enforcement of performance or observances of any covenant, obligation or
agreement, Lessor and Lessee agree that each party shall be responsible for its own
attorneys'fees.
26. SEVERABILITY.
If any provision of this Lease shall be held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
27. FORCE MAJEURE.
Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations
as set forth in this Lease, but shall not be held liable for any delay in or omission of
performance due to force majeure or other causes beyond their reasonable control,
including, but not limited to, compliance with any government law, ordinance or regulation,
acts of God, acts of omission, fires, strikes, lockouts, national disasters, wars, riots, material
or labor restrictions, transportation problems or any other cause beyond the reasonable
control of Lessor or Lessee.
28. HEADINGS NOT CONTROLLING.
Headings and titles used in this Lease are for reference purposes only and shall not be
deemed a part of this Lease.
29. ENTIRETY OF AGREEMENT.
This written instrument, including any documents attached hereto or incorporated herein by
reference, contains the entire understanding and agreement between Lessor and Lessee, its
assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in
conflict with any provisions of this Lease. The terms and conditions of this Lease shall not
be amended unless agreed to in writing by both parties and approved by the City Council of
Lessor.
[Signature Pages Follow]
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site 10S
Fort Worth Meacham International Airport
Page 17 of 21
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiples
on this the r�� day of 1;; 1' : ,2017.
CITY OF FORT WORTH:
By:
Fernando Costa
Assistant City Manager
Date: 6L9/i7
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on
this day personally appeared Fernando Costa, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the
City of Fort Worth and that he executed the same as the act of the City of Fort Worth for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this l day
e ,2017.
TRIKINYA L JOHNSON
Notary Public. state of Texas -
Comm.Expires 04-17-2018 Notary Pidblicio
for the State of Texas
Notary IG 1238832-0 7
"nm�a`•
APPR RM ATTES
AND ITY:
By: y_:/
P ge Meban , Assistan City Attorney A� ity Secretary
� It
A
M&C:
U; 0
Approval Date: * `�
1295 Certificate No.2017-178408
MONTEx DRILLING COMPANY OFFICIAL RECORD
Hangar and Ground Lease CI'T'Y SECRETARY
Lease Site IOS
Fort Worth Meacham International Airport WORTH,TX
Page 18 of 21
Contract Compliance Manager:
By signing, I acknowledge that I am the person responsible for the monitoring and administration
of this co . t, inclu ing ensuring all performance and reporting requirements.
Anne- arie Stowe
Title
LESSEE:
MONTEX DRILLING COMPANY ATTEST:
By: By: ` QhPCL
Charles B.Moncrief,Vice President
Date:
STATE OF TEXAS §
COUNTY OF 7-ARRi9A)7— §
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day
personally appeared Charles B. Moncrief, known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that the same was the act of Montex Drilling
Company and that he executed the same as the act of Montex Drilling Company for the purposes
and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this &/ day
52017.
KATHY A. WRIGHT
My CorrMetwy iis Expos
1,2020 Notary Public in for the State of as
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 19 of 21
EXHIBIT A
REAL PROPERTY DESCRIPTION AND MAP
FOR
LEASE SITE 10S
(Survey to be inserted)
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 20 of 21
,. Euv.T,Sr a .o a n:s EotJ}p•E, arw aRv .o
' , alar. afeeSeE
ru.fx. alf5ta �
• ) 'S? CCOKI✓FlE
F ..
1.188 oc—o/bnd hetg Leoee Me N. I I RoWsed Yti CL
/ AIRPORT,C''fy J Fod Worth,Tomont Count'Toro;oean M nth
lAeoeham AiryorL oM batrg more po tic."deft bed,os to#.—
/ a Beginning a1 on r cut rn concrete/the southeast owner o/
/ /Moo• sold Loose St.Na 1 t Reaised./w the sooMeost came/o/Lmse
$te He. 12-A said YEACHAW AIRPORT,and far the south tamer
/ of Loose Ste Na 12-1,said YFACINY AIRPORr,•
1HEWE N 01'19'J9'&oheg the common bra of sad Loose Ste
He. II Rented ord Lease Me No. I2-1,pos 4V the
nwthemmoet tamer o/said Lmse Site No.12-1 and the
southeust comer of Leosa Sita No. 12-Z said YFACNIY AMVW..
continuing obrq the common bn.of said Loom Ste No.11
RehseO and Lm S.Site
No. 12-2,posseg the natheost comer o/
.raid Lease M.Na 12-2 one the.-theost comer of Loose Ste
No. 12-4-1%said YEACLLW AIRPORT,cool—ft abrg Me common
Fra of sold Lmse We h/ it Ron'sed ood Loose Sita Na
12-4-f;hr oq o distanm of 313.56 feel to m'r rot in
concrete/or the mrtheast owrr.r o/said Laos.V.No. II
RW..d;
N (HENCE S 80'IJbO'F bn9 the north rine f m;d Leos.STe No.
It R.WsaC, 171.69/eel fo eiy o/fart North monument bb Med
9.900 for the nwtheost comer of soAY Lease Ste No.t 1 Raais.d.
for the.thea comer of Lease Ste Na 10-A said Y£ACHW
AIRPPRr,'
7H£NCE S 01'18'09'W,.bug the common No,of sad Cease S•t.
ft. I t RW,.d and Loose Sla Na IO-A J/0.16/Bet to o PX
NO for the southeast comer of said Lmse SPI.Na I I Ran}M
Md for the souM.esl comer a/sad Loose Ste No. IO-A at the
begkWnq of o curve to the bit chose rvd-b 174.00 feet and
chefv bug ciw'd boors N 74'/7:53'W,87.J7 feet.
u 7H£NCE obnq sod evrro,in o eestody dArw6wn,through o cooW
gte o1 29'0454;o d;stonce of ea J2 feet to on x cut in
\ b rate of the end o/said eueve;
/HENCE N W'J4'19'W,Mmq the south Fero of said Lmsa Ste
la aanloioin 1.188 ares/51,7JO squcre WQ o lmd. aM
9 ( sQ
- \ S
rro.,ra '\ nae
rr asNYs'e
BH>1!O.Po,
GULFSTREAM DRIVE
yw \
W E
5 q Es
ff e�mAlm m(EASE 91E Irt f l/]El0
0 20 40 60 M16 CNL N Or'199'E HpA ee3r LeE of 9rG qf,OF TF
FILMIR76 ATAAQt BISFD fel C3 ew ODegAYW1t1Y6 �P�p\STER�.'I' �s�m`�a m
mrucr mnrasri wo rr`�on u�rpxi Topographic SLltvey
ams oanc amnea ae eaAxas,G STEPHEN NIZELL ,rases f([v r� 412 Gull9tr'eem Drive
TEXAS GEOSPATIAL aEx p1E w s �9< 6165a a Lease Site No. 11 Revised
nu5vra'cEocau y sao aru AA1E1Ot M1SACHAM AIRPORT,
acre eENaaruuemNRo. Au aw'ronars swx awwnwrs sw+e SURV smeTan oa»c eaaun am�r r nus
Fr..-m rxrstn an ervm.aaaXaee o rzawwr ar,nus RE1a NarhJ City of Fort Worth,
errmrerss
reasfrawL:o raxsz+af Tarrant COvnty, Texas.
EXHIBIT "B"
MANDATORY IMPROVEMENTS
LEASE SITE 10S
All Mandatory Improvements for Lease Site IOS, as detailed below, must be completed in accordance
with Section 4 of the Lease and must be completed within nine(6)months of the execution of the Lease
and approved by the Aviation Department in its reasonable discretion.
Mandatory Improvements to be completed are as follows:
a. Painting of the entire hangar exterior; a new color must be selected and should be in line with
other surrounding hangars,i.e.white,eggshell,grey,etc.
b. Upgrade and/or replace all building signage; current signage has faded. Signage should be of a
quality that will withstand various weather conditions.
c. Mortar bricks on the southwest corner of the hangar need to be removed or painted.
MONTEX DRILLING COMPANY
Hangar and Ground Lease
Lease Site IOS
Fort Worth Meacham International Airport
Page 21 of 21
FORT H
rk\ISI ION EXHIBIT C -MINIMUM INSURANCE REQUIREMENTS
Property
Commercial Hangarkeepers Environmental Aircraft and Passenger Automobile Liability (To
Category General Impairment Include Hired&Non-owned
Insurance Liability Liability Liability Liability Vehiclees) 6
Fixed Base Operators(FBO's) Yes $5,000,000 $5,000,000 $1,000,000 $ 1,000,000
Aircraft Maintenance Operator and
Avionics or Instrument Maintenance .5 $1,000,000 $1,000,000 $ 1,000,000
Operator-Piston
Aircraft Maintenance Operator and
Avionics or Instrument Maintenance 'S $5,000,000 $1,000,000 $ 1,000,000
Operator-Turbine
Avionics or Instrument Maintenance
'5 $1,000,000 $ 1,000,000
Operator (Bench work Only)
Aircraft Rental or Flight Training 5 $1,000,000 z $1,000,000/occurrence $ 1,000,000
Operator •5 $100,000/passenger
Aircraft Charter or Aircraft 5 $1,000,000 $5,000,000/occurrence
Management Operator -5 $500,000/passenger $ 1,000,000
Aircraft Sales Operator 5 $1,000,000 $1,000,000/occurrence $ 1,000,000
'S $100,000/passenger
'5 $1,000,000 $1,000,000
Aircraft Storage Operator
'5 $5,000,000 3 $5,000,000 3 $ 1,000,000
Aviation Service Sole Proprietor 'S $1,000,000 2 $1,000,000/occurrence $ 250,000
$100,000/passenger
Other Commercial Aeronautical $1,000,000 $300,000/occurrence $ 1,000,000
Activities
Temporary Specialized Aviation
$1,000,000 $300,000/occurrence $ 1,000,000
Service Operator
Non-Commercial Hangar Lessee 'S $300,000/occurrence $ 1,000,000
Non-Commercial Flying Club •5 $1,000,000/occurrence $ 1,000,000
$100,000/passenger
Non-Commercial Self-Fueling .5 $ 1,000,000 $1,000,000 $300,000/occurrence $ 1,000,000
Permitee Jet Fuel and/or Av as
Non-Commercial Self-Fueling
Permitee 5 $500,000 $300,000/occurrence $ 250,000
Alternative Fuels e. .m as
T-Hangar or Community Hangar 5 $300,000/occurrence $ 250,000
Other `Insurance requirements subject to determination by Aviation Department and Risk Management.
Additional Insurance Requirements
-Lessee's policies are to be primary to any other valid and collectible insurance available to the City
-All policies shall include a Waiver of Subrogation in favor of the City(Temporary SASO must also include Airport Lessee)
-The City of Fort Worth shall be named as Additional Insured(Temporary SASO must also include Airport Lessee)
-Policies shall have no exclusions by endorsement,which,neither nullify or amend the required lines of coverage,nor decrease the limits of said coverage
Coverage per aircraft should be equivalent to the average aircraft value at one time and coverage per occurrence should be equivalent to the average of the
maximum value of total aircraft at one time,but not less than the amount noted above
2 Must include Negligent Instruction Coverage
3 If aircraft storage operator is providing subleasing space for aircraft storage
°Only required for those providing flight instruction
5 Depends on terms of the lease agreement
6 If vehicle parked landside-State minimums would apply
Aviation Minimum Standards, City of Fort Worth Aviation Department(06/03/2014)
DEFINITIONS:
Coverage for the Building includes(but is not limited to)the building and structures,completed additions to covered
buildings,outdoor fixtures, permanently installed fixtures,machinery and equipment. The building material used to
maintain and service the insured's premises is also insured. Business Personal Property owned by the insured and
used in the insured's business is covered for direct loss or damage. The coverage includes(but is not limited to)
furniture and fixtures,stock, improvements and betterments, leased property for which you have a contractual
obligation to insure and several other similar business property items when not specifically excluded from coverage.
The policy is also designed to protect the insured against loss or damage to the Personal Property of Others while
in the insured's care, custody and control.
PROPERTY INSURANCE
Business Income(sometimes called Business Interruption)affords protection against the loss of earnings of a
business during the time required to rebuild or repair covered property damaged or destroyed by fire or some other
insured cause of loss.
Extra Expense allows coverage for those additional expenses over and above normal operating expenses paid due
to damage to covered property from a covered cause of loss. These expenses could include rent, utilities, moving
expenses, telephone, advertising and labor.
This coverage protects the insured for bodily injury or property damage to the third parties,for which they are legally
liable.The policy covers accidents occurring on the premises or away from the premises. Coverage is provided for
injury or damages arising out of goods or products made or sold by the named insured. Coverage is afforded for
the named insured and employees of the named insured; however,several individuals and organizations other than
the named insured may be covered depending upon certain circumstances specified in the policy. In addition to the
limits,the policy provides supplemental payments for attorney fees,court costs and other expenses associated with
a claim or the defense of a liability suit.
Coverage A-Bodily Injuryand Property Damage Liability
COMMERCIAL GENERAL Bodily Injury means physical injury,sickness or disease, including death. Property Damage means physical injury
LIABILITY to tangible property, including the resulting loss of use of that property.
Coverage B-Personal Injury and Advertising Injury Liability
Personal Injury means false arrest,malicious prosecution,wrongful entry or eviction, libel,slander and violations of
a person's right of privacy. Advertising Injury means libel,slander,disparagement,violations of a person's right of
privacy,misappropriation and copyright infringement.
Coverage C Medical Payments
Medical Payments means medical expenses for bodily injury caused by an accident.
HANGARKEEPERS Insures the hanger operator for legal obligations to pay damages due to loss to an aircraft that occurs when the
aircraft is in the care,custody or control of the insured for safekeeping,storage,service or repair.Coverage
LIABILITY extends to liability claims involving an aircraft's loss of use.
Insures the pollution exposure associated with the insured's property and operations, Including costs of cleanup and
remedial or corrective action due to a third-party demand or a government order. The Pollution exclusion in general
ENVIROMENTAL liability insurance effectively eliminates coverage for damages for bodily injury, property damage and cleanup costs
IMPIRMENT LIABILITY arising from most types of pollution events. Because of this, customized protection for the pollution exposure of
numerous insureds in this category is essential.
Coverage geared specifically to the operation of aircraft and the risks involved in aviation.Aviation insurance
policies are distinctly different from those for other areas of transportation and tend to incorporate aviation
AIRCRAFT AND terminology,as well as terminology, limits and clauses specific to aviation insurance. Passenger liability protects
PASSENGER LIABILITY passengers riding in the accident aircraft who are injured or killed. In many countries this coverage is mandatory
only for commercial or large aircraft. Coverage is often sold on a"per-seat"basis,with a specified limit for each
passenger seat.
The liability coverage of the Business Auto Policy provides protection against legal liability arising out of the
AUTOMOBILE LIABILITY ownership, maintenance or use of any insured automobile. The insuring agreement agrees to pay for bodily injury
(TO INCLUDE HIRED&, or property damage for which the insured is legally responsible because of an automobile accident. The policy also
NON-OWNED VEHICLES) states that, in addition to the payment of damages,the insurer also agrees to defend the insured for all legal
defense cost. The defense is in addition to the policy limits.
WAIVER OF An agreement between two parties in which one party agrees to waive subrogation rights against another in the
event of a loss. The intent is to prevent one party's insurer from pursuing subrogation against the other party.
SUBROGATION
Aviation Minimum Standards, City of Fort Worth Aviation Department(06103/2014)
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 6/6/2017
DATE: Tuesday, June 6, 2017 REFERENCE NO.: **C-28262
LOG NAME: 55FTW MONTEX10S LEASE
SUBJECT:
Authorize Execution of a Hangar and Ground Lease Agreement with Mandatory Improvements with Montex
Drilling Company for Lease Site I OS at Fort Worth Meacham International Airport (COUNCIL DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Hangar and Ground Lease
Agreement with mandatory improvements, with Montex Drilling Company, for Lease Site 10S at Fort
Worth Meacham International Airport.
DISCUSSION:
On March 6, 2007, Mayor and Council Communication (M&C C-21998) the City Council authorized City
Secretary Contract No. 35135, a renewal Agreement with Montex Drilling Company (Montex), for lease
Site I OS at Fort Worth Meacham International Airport. The renewal Agreement provided two consecutive
five year renewal terms. The second renewal term expires on May 31, 2017.
Montex has agreed to execute a new 10-year lease Agreement for lease Site I OS. The Lease Site is
comprised of approximately 51,736 square feet of ground space and includes a 16,500 square foot
hangar. Staff requests that the City Council authorize the execution of a Hangar and Ground Lease
Agreement for an initial term of 10 years, to commence on June 7, 2017 and expire on May 31, 2027. The
lease will include two 10-year options to renew for an additional 20 years, bringing the total lease term to
30 years.
The total revenue received from this lease will be approximately $90,750.00 annually or$7,562.50 per
month. These revenues are based on a hangar rate of$4.25 per square foot and a ground rental rate of
$0.40 per square foot, in accordance with the Aviation Department's Schedule of Rates and Lessor's
market analysis. Rental rates shall be subject to an increase on October 1 of any given year, based on the
upward percentage change in the Consumer Price Index for the Dallas-Fort Worth Metropolitan area. At
no time will the adjusted rate exceed the rate that is current in the Schedule of Rates and Charges. Five-
year rate adjustments will apply for the ground rate starting on October 1, 2022 and every fifth year
thereafter. The hangar rate will be adjusted every 10 years during the lease term, equal to the then Fair
Market Value, as determined by the Lessor's market analysis.
Fort Worth Meacham International Airport is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that the Aviation Department is responsible for the collection and deposit
of funds due to the City. Upon receipt, these funds will be deposited into the Municipal Airports Fund,
Hangar Lease Revenue Account, which has total estimated revenue in Fiscal Year 2017 of$1,126,105.00
and year-to-date receipts of$662,969.06. The Ground Lease Revenue Account, which has total
Logname: 55FTW MONTEXI OS LEASE Page 1 of 2
estimated revenue in Fiscal Year 2017 of$1,694,578.00 and year-to-date receipts of$920,514.77.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Accoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
FROM
Fund Department ccoun Project Program ctivity Budget Reference # moun
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Bill Welstead (5402)
Jeff Kloska (5406)
Additional Information Contact: Anne-Marie Stowe (5415)
ATTACHMENTS
1. Form 1295- Montex Drilling - City of Fort Worth.pdf (Public)
2. Map Montex 10S.pdf (Public)
Logname: 55FTW MONTEXI OS LEASE Page 2 of 2
C
- 456��
CERTIFICATE OF INTERESTED PARTIES
FORM 1295
l of l
Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number:
of business. 2017-178408
Montex Drilling Company
Fort Worth,TX United States Date Filed:
2 Name of governmental entity or state agency that is a party to the contract for which the form is 03/14/2017
being filed.
City of Fort Worth Department of Aviation Date Ackn I ge
il
3 Provide the identification number used by the governmental entity or state agency to track or identity the contract,and provide a
description of the services,goods,or other property to be provided under the contract.
Fort Worth Meacham Airport
New Ground and Hangar Lease/10S
Nature of interest
4
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I Intermediary
City of Fort Worth Fort Worth,TX United States X
5 Check only if there is NO Interested Party. O
6 AFFIDAVIT I swear,or affirm,under penalty of perjury,that the above disclosure is true and correct.
Signature of authoilized agent of contracting bu i ss entity
AFFIX NOTARY STAMP/SEAL ABOVE
Sworn to and subscribed before me,by the said ( , , /%Q/L/�JC /,F/':: ,this the /7 — day of
20_,2_L_,to certify which,witness my hand and seal of office.
Kathy A.Wright KATHY A WRIGHT
` . Nobry ID 25443043
Signature o fficer administeringo Printed name of officer administering oath f officer rl ,��
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.277