HomeMy WebLinkAboutContract 25667 CITY $ECR ,4
CT
R,e
CONTRACT No. Jf-T& , 11
---D-Z--4--
FORT WORTH MEACHAINI INTERNATIONAL AIRPORT
TANK FARM LEASE AND PUBLIC FUELING AGREEMENT
This TANK FARM LEASE AND PUBLIC FUELING AGREEMENT ("Agreement")
is made and entered into by and between the CITY OF FORT WORTH ("Lessor"), a home rule
municipal corporation situated in Tarrant County, Texas acting by and through its duly authorized
Assistant City Manager, and RICHARDSON AVIATION ("Lessee"), acting by and through W.
Robert Cotham, Vice President of SRCG Aviation, Inc., Lessee's General Partner.
WHEREAS, Lessor is the owner of certain real property and improvements known as Fort
Worth Meacham International Airport, ("Airport") located in the City of Fort Worth, Texas and
operated as a public airport; and
WHEREAS, pursuant to the terms and conditions of City Secretary Contract ("CSC") No.
11142, styled "Fixed Base Operator Lease," Lessee is authorized to operate as a Fixed Base
Operator("FBO") at the Airport; and
WHEREAS, Lessee wishes to store and sell aviation fuel to aircraft at the Airport and to
lease certain real property at the Airport for such purposes; and
WHEREAS, Lessor is willing to grant Lessee the privilege to store and dispense aviation
fuel at the Airport and to lease certain real property thereon for such purposes;
NOW, THEREFORE, in consideration of the benefits, promises and mutual covenants
contained herein, and for other good and valuable consideration, the receipt and adequacy of which
is hereby acknowledged by both Lessor and Lessee, the parties agree as follows:
I TANK FARM PREMISES.
Lessor demises and leases to Lessee 3,600 square feet of improved land referred to as Fuel
Farm Site No. 3 (the "Tank Farm Premises") and shown in the map on Exhibit "A", attached
hereto and hereby made a part of this Agreement for all purposes. Lessee agrees that it will use the
Tank- Farm Premises for the sole purpose of aircraft fuel storage and that it will not store such fuel
or receive deliveries of such fuel at any location at the Airport other than the Tank Farm Premises
or the premises leased for those purposes under CSC No, 11142, as amended, and any other sites at
the Airport that Lessee may lease exclusively subsequent to the effective date of this Agreement
(collectively the "Leased Premises"). Lessee may also sell and dispense such items on (0 the
public use transient apron and (1i) at hangars and on other aprons at the Airport, subject to
perniission from the respective parties in control of those properties. Lessee shall not in any
manner sell or dispense fuel on the Tank Farm Premises, Lessee accepts the Tank Farm Premises
and the Leased Premises in their present condition(s) as satisfactory for all purposes set forth in this
Agreement.
I ank Farm Lease-Richardson Aviation
Page 1
2. TERM OF AGREEMENT.
2.1. Initial Term.
The Initial Tenn of this Agreement shall commence on the date of its execution and
expire either (i) on September 30, 2004 or (ii) upon expiration or termination of City
Secretary Contract No. 11142, as amended, whichever occurs first("Expiration Date").
2.2. Renewals.
If Lessee performs and abides by all provisions and conditions of this Agreement,
Lessee shall have a right of first opportunity to renew this Agreement for two additional
terms of five (5) years each (each a "Renewal Term"), subject to (i) fee structures which,
on the effective date of a Renewal Tenn, comply with the Schedule of Rates and Charges
approved by the City Council of the City of Fort Worth ("City Council"), which may be
adjusted on October 1st of each year in a Renewal Tenn to comply with the Schedule of
Rates and Charges in effect at that time, and (ii) on terms and conditions that may be
prescribed by Lessor. In order to exercise its rights of first opportunity, Lessee must notify
Lessor in writing of its desire to renew this Agreement no less than ninety (90) days and no
more than one hundred and eighty (180) days prior to the expiration of the term then in
effect.
2.3. Holdover.
If Lessee holds over after the Expiration Date, this action will create a month-to-
month tenancy. In this event, Lessee agrees to pay, as monthly rent for the Tank Farm
Premises, the rental amount set by the Schedule of Rates and Charges for the month-to-
month lease of property comparable to the Tank Farm Premises.
3. RENT, FEES AND OTHER CHARGES.
3.1. Rent on Tank Farm Premises.
Lessee shall pay a monthly rental amount of Three Hundred Five Dollars (5305,00)
for its lease of the Tank Farm Premises, Prior to the commencement of this Agreement, and
for any Renewal Term, Lessee shall pay the first and last months' rent in advance. Rent is
due on the first (I st) day-of each month. Rent shall be considered past due if Lessor has not
received full pa,,yrnent after the tenth (10th) day of the month for which the payment is due.
Lessor will assess a late penalty charge often percent (10%) per month on top of the entire
month's rent for each month in which rent is past due,
3.2. Adiustment of Rent.
The rates for rent under this Agreement are in accordance with the Schedule of
Rates and Charges approved by the City Council., These rates axe subject to an autonnatic
Tank Farm Lease-Richardson Aviation
Page 2 40-
s-
increase on October 1st of each year, beginning October 1, 2000, to reflect the upward
percentage change in the Consumer Price Index for the Dallas/Fort Worth Metropolitan
Area, as announced by the United States Department of Labor during the respective
preceding twelve-month period ("CPI Change"); provided, however, that the adjusted
rental rates under this Agreement shall not exceed the then-current rates prescribed by
Lessor's published Schedule of Rates and Charges for similar types of property at the
Airport. In the event that there is no CPI Change or the CPI Change is downward, the rental
rates hereunder shall remain constant until the following October Ist. In no event shall the
rental rates under this Agreement ever be decreased.
3.3. Fuel Flowne,Fees.
As consideration for the privilege allowed Lessee by Lessor to dispense aircraft
fuels at the Airport, Lessee shall pay Lessor fuel flowage fees based on the number of
gallons of fuel delivered to the Tank Farm Premises and calculated in accordance with the
Schedule of Rates and Charges in effect at the time of the calculation. By way of example,
as of the Effective Date of this Agreement, fuel flowage fees for the period between the
Effective Date of this Agreement and September 30, 2000 shall be calculated as follows:
0-1,000,000 gallons (annually) = 50.11/gallon
1,000,001-1,500,000 gallons(annually) = $0.09/gallon
1,500,001-2,000,000 gallons (annually) = $0.06/gallon
over 2,000,000 gallons (annually) = 50.05/gallon
In other words, during the first twelve (12) months of this Agreement, for the first
one million (1,000,000) gallons of fuel delivered to the Tank Farm Premises, Lessee shall
pay Lessor a fuel flowage fee of$0.11 per gallon. Thereafter, Lessee shall pay Lessor 50.09
per gallon until the time 1,500,000 gallons of fuel have been delivered to the Tank Farm
Premises; thereafter, Lessee shall pay Lessor $0.06 per gallon until the time 2,000,000
gallons of fuel have been delivered to the Tank Farm Premises; thereafter, Lessee shall pay
Lessor$0.05 for each gallon of fuel delivered to the Tank Farm Premises.
Payments of the fuel flowage fees are due on the tenth (10th) day of each month
succeeding that in which aircraft fuels were delivered to the Tank Farm Premises. This fee
shall be considered past due if Lessor has not received full payment after the fifteenth (15th)
day of that month. Lessor will assess a late penalty charge of ten percent (10%) per month
on top of the entire month's fee for each month in which a fee is past due.
3.4. Annual Nature and Adjustments of Fuel Fl Ewa gi-
The fuel flowage fee rate scale is based on the number of gallons of fuel delivered to
the Tank Farm Premises annually. Therefore, on the anniversary date of this Agreement,
Lessee will resume a fuel flowage fee payment of $0.11 per gallon, and the above
calculations will begin anew until the next anniversary date; provided, however, that the
City Council may, in its discretion, adjust fuel flowage fees and rate scales for all providers
of F senices at th--Airport, in which case the adjusted rates shall be applied,
-4 Y
,g
U
Tank Farm Lease-Richardson Aviation
----------
Page 3
3.5. Other Fees and Charles.
Lessee agrees to pay all other fees and charges stipulated in the Lessor's published
Minimum Standards for Fixed Base Operators and Other Airport Tenants ("Minimum
Standards") as they exist or may hereafter be amended and as they apply to the specific
operations of Lessee. The Minimum Standards is a public document adopted by the City
Council on June 16, 1992, on file and available for public inspection in the City Secretary's
Office, and incorporated herein by reference for all purposes.
3.6. Delivery by Lessee of Rent, Fees and Other Payments.
I All fees and charges must be delivered during normal working hours to the location
for Lessor provided in Section 18.
4. REPORTS AND AUDITS.
Lessee shall keep true and accurate books reflecting all fuel deliveries to the Tank Farm
Premises. Lessee shall furnish monthly fuel delivery reports and fuel sales reports to the Airport
Systems Director or authorized representative ("Director"). Within thirty (30) days following the
end of Lessor's fiscal year, Lessee shall submit to Lessor a detailed statement of the total number of
gallons of fuel delivered to the Tank Farm Premises. This statement shall be prepared at Lessee's
sole cost and expense by an independent Certified Public Accountant satisfactory to Lessor. Any
adjustment to the fuel flowage fee payments made during the preceding fiscal year shall be made at
this time.
At any time during the term of this Agreement, the City shall have the right to authorize an
audit of Lessee's records as they pertain to its fueling operations at the Airport. These audits shall
be prepared at Lessor's expense by an independent Certified Public Accountant selected by Lessor.
5. MINIMUM STANDARDS.
Unless otherwise specifically provided herein, all terms, conditions and covenants of
Lessee's FBO Permit, CSC No. 11142, as amended, shall apply in full force and effect to this
Agreement for the duration of the Initial Tenn and of any Renewal Term,
Lessee covenants and agrees that as an FBO it will, at all times, comply with the Minimum
Standards. Lessee further agrees that as a condition precedent to the effectiveness of this
agreement, it will for the duration of the Initial Tenn and of any Renewal Ter r. comply with the
requirements for dispensers of public aircraft fuels set forth in Article 11 of the Minimum Standards,
If Lessee wishes to be exempt from any specific requirements of the Minimum Standards, Lessee
must first submit a written request to and receive written approval from the Director and receive the
consent of the City Council. Any such exerriptions granted to Lessee are or shall be specifically set
forth iln Exhibit "11", attached hereto and hereby made a part of this Agreement for all purposes,
Tank Far ri Lease-Richardson Aviation
Page 4
Lessee's failure to otherwise abide by the Minimum Standards shall result in the immediate
termination by Lessor of this Agreement.
6. DEPOSIT.
Lessee has remitted to Lessor a fuel flowage fee deposit ("Deposit") in the form of a Three
Thousand Dollar($3,000) bond. If Lessee's payment of a fuel flowage fee to Lessor is at any time
delinquent for more than fifteen (15) calendar days, Lessor may draw upon such Deposit to secure
the payment due. The amount of the Deposit is subject to increase at any time as reasonably
determined by the Director. Within thirty(30) days following any such determination, Lessee shall
increase its bond or provide Lessor with a cash deposit in the amount of the difference between the
current Deposit and the higher Deposit.
7. UTILITIES.
Lessee covenants and agrees that it will pay all costs and expenses for any use, extension,
installation, maintenance or repair of any and all utilities serving the Tank Farm Premises,
including, but not limited to, water, sanitary sewer, electric and gas utilities. In addition, Lessee
agrees that all equipment which may be used on the Tank Farm Premises shall fully comply with
the City of Fort Worth Mechanical, Electrical, Plumbing, Building and Fire Codes, as they exist or
may hereafter be amended ("Codes").
8. MAINTENANCE AND REPAIRS.
8.1. General Maintenance and Repairs by Lessee.
Lessee agrees and covenants that it will maintain all fuel storage tanks underground
and in compliance with City of Fort Worth Mechanical, Electrical, Plumbing, Building and
Fire Codes, as amended, any recommendations of the National Fire Protection Association
and all requirements of the Environmental Protection Agency, the United States
Occupational Safety and Health Administration, the Texas Natural Resource Conservation
Commission, the Texas Department of Health and the Federal Aviation Administration.
Lessee agrees to keep and maintain the Tank Farm Premises in a good, clean and
sanitary condition at all times. Lessee covenants and agrees that it will not make or suffer
any
waste of the Tan1k Fa nn Premises. Lessee will, at its own expense, make all repairs
necessan,, to prevent the deterioration in condition or value of the Tank F Premises,
including, but not limited to, the maintenance of and repairs to all aircraft fuel storage tanks
Z:� storage
and other structures, facilities, equipment, appurtenances and pavement on the Tank Farn-�
Premises. Lessee also agrees promptly to make any changes, at its own expense, in
plumbing, wiring or other similar installations on the Tank Farm Premises as they become
necessary, subject to Prior -%--fitten approval from Lessor and in accordance ,-vith all
applicable federal, state and local laws or regulations.
"A
Tank Fa n-n Lease-R ch and son Aviation
Y,
Page 5
Lessee shall be responsible for all damages caused by the negligence or
misconduct of Lessee, its agents, servants, employees, contractors, subcontractors,
licensees or invitees, and Lessee agrees to fully repair or otherwise cure to the existing
standard all such damages at Lessee's sole cost and expense. Lessee agrees that, except as
may otherwise be expressly provided herein, all improvements, trade fixtures, furnishings,
equipment and other personal property of any kind or description which may at any time be
on the Tank Farm Premises shall be at Lessee's sole risk or at the risk of those claimin4:1 c,
under Lessee.
8.2. Inspection.
Lessor shall have the night and privilege, through its officers, agents, servants or
employees, to inspect the Tank Farm Premises at any time. Lessor shall have he right to
perform any and all duties or obligations which Lessor is authorized or required to do under
the terms of this Agreement or to perforin, its governmental duties under federal, state or
local laws, ordinances, rules or regulations. Lessor shall provide Lessee with advance
notice of inspection when reasonable under the circumstances.
8.3. Performance.
If Lessee is responsible under this Agreement for any maintenance or repairs, Lessor
shall notify Lessee in writing. Lessee agrees to undertake such maintenance or repair work
within thirty (30) calendar days of receipt of notice. If Lessee fails to undertake the
recommended maintenance or repairs within this 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 payment will be due on the
date of Lessee's next monthly fee payment following completion of the repairs.
9. ENVIRONMENTAL CONDITION AND REMEDIATION.
9.1. Compliance With Environmental Laws.
To the best of Lessor's knowledge, the Tank Farm Premises comply with all
applicable federal, state and local environmental laws, rules and regulations (collectively
"Environmental Laws"), Lessee has thoroughly inspected the Tank Farm Premises and is
fully advised of its own rights without reliance upon any representation made by Lessor
conceming the environmental condition of the Tank Fa mi Premises. Lessee shali notice
Lessor immediately upon the occurrence of any violation of Environmental Laws on the
Tank Farm Premises or any event that may affect the environmental condition of the Tank
Farm Premises.
9.2. Remediation.
Lessee, at Lessee's sole cost and ewpense, shall be fully responsible for the
Tank Farm Lease-Richardson Aviation
Page 6
violation of any Environmental Laws caused, in whole or in part, by Lessee, its officers,
agents, servants, employees, contractors, subcontractors or invitees, whether such
violation occurs during the Term or any Renewal Term of this Agreement or during a
previous period in which Lessee leased or occupied the Tank Farm Premises. As
assurance to Lessor that Lessee is reasonably able to comply with this requirement, Lessee
shall procure and maintain an Environmental Impairment and Pollution Liability insurance
policy ("Environmental Insurance") in a form specified by Section 13 and that provides
coverage in the amount of One Million Dollars ($1,000,000.00) per occurrence for any
incidents involving any tanks on the Tank Farm Premises and any fueling vehicles operated
on the Tank Farm Premises.
10. CONSTRUCTION AND IMPROVEMENTS.
10-1. In General.
Lessee may, at its sole expense, modify, renovate, improve or otherwise perform
construction work (collectively "Improvements") only in accordance with this Section 10.
Prior to the initiation of any Improvements, Lessee shall first submit all plans and estimates
for the costs of the proposed Improvements. Lessee must receive written approval from the
Director as to the proposed Improvements and written approval from the Director and the
Directors of Lessor's Departments of Development, Engineering, and Transportation and
Public Works as to the plans and specifications relating to the Improvements. All plans,
specifications and work on the Improvements shall fully comply with and conform to all
federal, state and local laws, ordinances, rules and regulations, now in effect or hereafter
adopted.
10.2. Documents.
Lessee shall supply the Director with comprehensive sets of documentation relative
to any Improvement, including, at a minimum, as-built drawings of each project. As-built
drawings shall be new drawings or red-line changes to drawings previously supplied to the
1D
Director. Lessee shall supply the textual documentation in computer format as requested by
Lessor.
10.3. Bonds Required of Lessee.
Prior to the commencement of any hriprovement whose cost is equal to or exceeds
(i) $25,000-00 or(ii) any arnount less than$25,000.00, if required by the Texas Govemment
Code. Chapter 2253, as amended, or other state law applicable to a goverm-nental entity that
enters into a Public Work Contract, Lessee shall deliver to Lessor surety performance and
payment bonds in accordance with the Texas Government Code, Chapter 225338, as
amended, in the full amount of each construction contract or project. The bonds shall
guarantee (i) satisfactory compliance by Lessee with all terms and conditions of this Lease,
including, but not limited to, the satisfactory completion of the respective Improvements
and (ii) full paymients to all Persons, firrmns, corporations or other entities %vith whom Lessee
Tank Farm Lease-R:chardson Aviation nz
Page 7
has a direct relationship for the performance of the respective Improvements. For purposes
of this Agreement, "Public Work Contract" shall have the same meaning as that provided by
the Texas Government Code, Chapter 2253, as amended.
In lieu of bonds, Lessee may furnish Lessor with a cash deposit or an assignment of
a certificate of deposit in an amount equal to one hundred twenty-five percent (125%) of the
full amount of the construction contract or project. Lessor will maintain cash deposits in a
non-interest bearing account. 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 carried on any 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 on or to the Tank Farm Premises, Lessor shall be entitled to
drawn down the fall amount of Lessee's cash deposit or certificate of deposit.
10.4. Bonds Required of Lessee's Contractors.
If Lessee uses a third party contractor to undertake any Improvements on or to the
Tank Farm Premises, prior to the commencement of any Improvement on or to the Tank
Farm Premises, Lessee shall require such contractor to 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 that contractor's contract
for such Improvements. The bonds shall guarantee (1) the faithful performance and
completion of all construction work in accordance with the final plans and specifications
approved by Lessor and (ii) full payments of 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 Lessor and Lessee as dual obligees.
10.5. Releases by Lessor Upon Completion of Improvements.
Lessor shall allow Lessee a dollar-for-dollar reimbursement from its cash deposit
account or reduction of its claim on Lessee's certificate of deposit upon (i), where Lessee
serves as its own contractor, verification that Lessee has completed the Improvements or
(11), where Lessee uses a third party contractor, receipt of the contractor's invoice and
verification that the contractor has completed its worked and released Lessee to the extent
of Lessee's payment for such work, including bills paid, affidavits and waivers of liens. In
the event of construction or contractor payment default, Lessor shall be entitled to draw
down, the full amount of Lessee's cash deposit,or certificate of deposit.
it. SIGNS.
Lessee shall not erect or maintain on the Tank Farm Premises any signs or billboards except
those that, without advertising Lessee's operations at the Airport, identify the fuel stored on the
Tank Fann Premises. All signs permitted by this Agreement shall be subject to prior written
approval by the Director as to placement, appearance, construction mid conformity with applicable
Tank Fami Lease-Richardson Aviation
Pau 8
qp!;
City Code restrictions.
12. RIGHTS AND RESERVATIONS OF LESSOR.
Lessor hereby retains the following rights and reservations:
12.1. Lessee's rights hereunder shall be subject to all existing and future utility 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. Lessee's rights shall additionally be
subject to all rights granted by all ordinances or statutes which allow such utility
companies to use publicly-owned property for the provision of utility services.
12.2. All aircraft fuel storage tanks, structures, fixtures and items permanently attached to
any structure on the Tank Farm Premises shall belong to Lessor, and any additions
or alterations made thereon shall become the property of Lessor immediately upon
their completion.
12.3. 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 firture
avigational or navigational aids used at the Airport.
1�
12.4. Lessor reserves the right to close temporarily the Airport or any of its facilities for
maintenance, improvements, safety or security of either the Airport or the public, or
for any other cause deemed necessary by Lessor. In this event, Lessor shall in no
way be liable for any damages asserted by Lessee, including, but not limited to,
damages from an alleged disruption of Lessee's business operations.
12.5. This Agreement 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.
12.6. During any war or national emergency, Lessor shall have the right to lease any part,
W Y
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 Agreement shall prevent Lessee from pursuing any rights it may halve for
reimbursement from the United States Government-
'E
'rank Far. Lease
Rwhardson Aviation
Page 9
12.7. Lessor covenants and agrees that during the term of this Agreement 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 Agreement
and Lessee's rights and privileges hereunder shall be subordinate to the Sponsor's
Assurances.
13. INSURANCE.
13.1. Types of Coverage and Limits.
In addition to insurance coverage requirements imposed upon Lessee by the
Minimum Standards, Lessee shall (i) procure and maintain at all times, in full force and
effect, a policy or policies of insurance as specified herein, or(ii) endorse existing insurance
policies to comply with the requirements specified herein. Such insurance policies shall
name the City of Fort Worth as an additional insured and cover all public risks related to the
leasing, use, occupancy, maintenance, existence or location of the Tank Farm Premises as
well as all of Lessee's fueling operations on the Leased Premises. Coverage under such
insurance policies shall be on an occurrence basis and at the limits specified herein:
• Commercial General Liability:
51,000,000 per occurrence;
• Automobile Liability:
$1,000,000 per accident,
including,but not limited to, passenger automobiles, utility vehicles and fueling trucks;
C�
• Environmental Impairment Liability:
$1,000,000 per accident,
including, but not limited to, incidents caused by aircraft fuel storage tanks and fueling
trucks.
In addition, Lessee shall be responsible for all insurance to Improvements on or to the Tank
Farm Premises and for personal property of Lessee or in Lessee's care, custody or control.
13.2. Adiustments to Required Coverage and Limits.
Insurance requirements, including additional t-Mes and limits of coverage and
increased 'limits on existing coverages, are subject to reasonable change at Lessor's option,
ZD -
and Lessee will accordingly comply with such new requirements within thirtN, (30) days
following notice to Lessee.
13.3. Certificates.
As a condition precedent to the effectiveness of this Agreement. 11-else e shall furnish
Tank Farm Lease-Richlardson Aviation
Paae 10
Lessor with a certificate of insurance signed by the underwriter as proof that it has obtained
the types and amounts of insurance coverage required herein. Lessee shall, on demand,
provide Lessor with evidence that it has obtained and is maintaining such coverage in fall
force and effect.
13.4. Additional Requirements.
Lessee shall maintain its insurance with underwriters authorized to do business in
the State of Texas and which are satisfactory to Lessor. The policy or policies of insurance
shall be endorsed 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.
14. 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 Tank Farm Premises and Leased Premises and shall be solely responsible for the acts and
omissions of its officers, agents, servants, employees, contractors, subcontractors, patrons, licensees
and invitees. Lessee acknowledges that the doctrine of respondent 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.
15. LIABILITY AND INDEMNIFICATION.
LESSEE HEREBY ASSUMES ALL LIABILITY AND RESPONSIBILITY FOR
PROPERTY LOSS, PROPERTY DAMAGE ANDIOR PERSONAL INJURY OF ANY KIN9,
11-Y CL VDING DEA TH, TO ANY AND ALL PERSONS, OF ANY KIND OR CHARA CTER,
WHETHER REAL OR ASSERTED, ARISING OUT OF OR IN CONNECTION WITH THE
USE OF THE AIRPORT UNDER THIS AGREEMENT OR WITH THE LEASING,
MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION OF THE TANK FARM
PREMISES OR LEASED PRE1111SES, EXCEPT TO THE EXTENT CA USED DIRECTL Y B Y
THE NEGLIGENCE OF LESSOR, ITS OFFICERS, AGENTS, SER VANTS, EMPLOYEES,
CONTRACTORS, SUR CONTRA CTORS, LICENSEES OR IN VITEES.
LESSEE COVENANTS AND AGREES TO, AND DOES HEREBY, 1NI F,,TFVJF-Y
HOLD HAR111LESS A AD DEFEND LESSOR, ITS OFFICERS, AGE IS, SER"NIS AND
EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR LAWSUITS FOR
EITHER PROPERTY DAITIAGE OR LOSS (INCLUDING ALLEGED DAA1AGE OR LOSS
TO LESSEE'S BUSINESS AND ANY RESULTING LOST PROFITS) AJVD/OR PERSONAL
INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF ANY KlArD OR
C11ARACTER, WHETHER RE,4L OR ASSERTED, ARISING OUT OF OR IN
Tank Far Lease-Richardson Aviation
o"' 1
Page 11
R
CONNECTION' Wt1H THE USE OF THE AIRPORT UNDER THIS AGREEMENT OR
If ITH THE LEASING, MAINTENANCE, USE, OCCUPANCY, EXISTENCE OR LOCATION
OF THE TANK FARM PREMISES OR LEASED PREMISES, EXCEPT TO THE EXTENT
CAUSED DIRECTLY BY THE NEGLIGENCE OF LESSOR, ITS OFFICERS, AGENTS,
SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES OR
INVITEES.
LESSEE ASSUMES ALL RESPONSIBILITY AND AGREES TO PAY LESSOR FOR
ANY AND ALL IIVJUR Y OR DAMAGE TO LESSOR'S PROPERTY WHICH ARISES OUT
OF OR IN CONVECTION WITH ANY AND ALL ACTS OR OMISSIONS OF LESSEE, ITS
OFFICERS, AGENTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS,
LICENSEES, INVITEES, PATRONS OR TRESPASSERS, EXCEPT TO THE EXTENT
CAUSED DIRECTLY BY THE NEGLIGENCE OF LESSOR, ITS OFFICERS, AGENTS,
SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES OR
INVITEES. LESSEE SHALL COMPLY W[TH ALL APPLICABLE REGULATIONS OF
THE FEDERAL AVIATION ADMINISTRATION ("FAA 1) PERTAINING TO AIRPORT
SECURITY ON THE TANK FARM PREMISES ANDIOR LEASED PREMISES WHICH
ARE RELATED TO LESSEE'S OPERATIONS THEREON AND SHALL COOPERATE
WITH LESSOR IN THE IMPLEMENTATION AND ENFORCEMENT OF LESSOR'S
SECURITY PLAN AT THE AIRPORT LESSEE SHALL PAY ALL FINES IMPOSED BY
THE FAA ON LESSOR OR LESSEE RESULTING FROM LESSEE'S FAILURE To
COMPLY WITH SUCH FAA REGULATIONS RELATING To THE TANK FARM
PREMISES OR LEASED PREMISES OR To PREVENT UNAUTHORIZED PERSONS OR
PARTIES FROM THEIR OBTAINING ACCESS TO THE AIR OPERATIONS AREA OF
THE.AIRPORT.
LESSOR DOES NOT GUARANTEE POLICE PROTECTION TO LESSEE OR ITS
PROPERTY LESSOR SHALL NOT BE RESPONSIBLE FOR INJURY TO ANY PERSON
ON THE TANK FARM PREMISES OR LEASED PREMISES OR FOR HARM TO ANY
PROPERTY WHICH BELONGS TO LESSEE, ITS OFFICERS, AGENTS, SERVANTS,
EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES OR
PATRONS, AND WHICH MAYBE STOLEN, DESTROYED OR IN ANY WAY DAMAGED;
AND LESSEE HEREBY INDEMNIFIES AND HOLDS HARMLESS LESSOR, ITS
OFFICERS, AGENTS, SERVANTS AND EMPLOYEES FROM AND AGAINST ANY AND
ALL SUCH CLAIMS, EXCEPT TO THE EXTENT CAUSED DIRECTLY BY THE
NEGLIGENCE OF LESSOR, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES,
CONTRA CTORS, S UB CONTRA CTORS, LICENSEES OR INVITEES
16. WAIVER OF CHARITABLE IMMUNITY OR EXEMPTION,
If Lessee, as a charitable association, corporation, partnership, individual enterprise or
entity, claims immunity to or an exemption from liability for any kind of property damage or
personal damage, injury or death, Lessee hereby expressly waives its rights to plead defensively any
such immunity or exemption as against Lessor.
................................"I�""Ill""I—I'l—I'llIll""—""""""
5,
...........
Tank Farm Lease-Richardson Aviation
Page 12
17. TERMINATION.
In addition to its termination rights contained elsewhere in this Agreement, Lessor shall
have the right to terminate this Agreement as follows:
17.1. Failure by Lessee to Pay Rent, Fees or Other Char es.
If Lessee fails to pay any rent, fees or other charges due under this Agreement,
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 Agreement immediately.
17.2. 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. If Lessee fails to cure the breach or default within the time period
prescribed, Lessor shall have the right to terminate this Agreement immediately.
17.3. Lessee's Financial Obligations to Lessor upon Termination, Breach or Default.
If Lessor terminates this Agreement as provided herein, Lessee shall for the remainder of
the unexpired term of this Agreement remain liable to Lessor for all arrearages of rentals,
fees and charges payable hereunder and for all preceding breaches, defaults or failures. In
no event shall a reentry onto or reletting of the Tank Farm Premises by Lessor be construed
as an election by Lessor to forfeit any of its rights under this Agreement.
17.4. Rights of Lessor Upon Termination or Expiration.
Upon termination or expiration of this Agreement, all rights, powers and privileges
granted to Lessee hereunder shall cease and Lessee shall vacate the Tank Farm Premises.
Lessee agrees that it will return the Tank Farm Premises in the same condition as existed at
the time this Agreement was entered into and all appurtenances and improvements thereon
in good order and repair, subject to ordinary wear and tear. Upon termination or expiration,
Lessor shall have the right to take full possession of the Tank Farm Premises, by force if
necessary, and to remove any and all parties and property remaining on any part of the Tank-
Farm Premises. Lessor shall also have the right to take full title to any fixtures or
eqwpment remaining on the Tank Farm. 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 ten-nination of this Agreement or any act incident to Lessor's assertion of
its right to terminate.
Q rX
S
Tank Farm Lease-Richardson Aviation
Page 13
I8. NOTICES.
Notices required pursuant to the provisions of this Agreement shall be conclusively
determined to have been delivered when (1) hand-delivered to the other party, its agents,
employees, servants or representatives, or(2) deposited in the United States Mail, postage prepaid,
addressed as follows:
To LESSOR:
City of Fort Worth
Aviation Department
Meacham International Airport
4201 North Main Street. Suite 200
Fort Worth, Texas 76106-2749
To LESSEE:
Richardson Aviation
Attention: Charles C. Bond
Meacham International Airport
Hangar 45-5
3800 Lincoln Avenue
Fort Worth, Texas 76106-3601
19. ASSIGNMENTS AND SUBLEASES.
19.1. In General.
Lessee shall not assign, sell, sublease, convey, or otherwise transfer any of its rights,
privileges, duties or interests granted by this Agreement without the advance written
consent of Lessor. Any such transaction attempted by Lessee without prior written consent
by Lessor shall be null and void.
19.2. Conditions of Approved Assignments and Subleases.
If Lessor consents to any such assignment, sale, sublease, conveyance or other
transfer of interest, all tlerms and conditions set forth in this Agreement shall apply to the
assignee, sublessee or other successor in interest. and the assignee, sublessee or successor in
interest shall be bound by the terms and conditions of this Agreement the same as if it had
originally executed this Agreement. The failure or refusal of Lessor to approve a requested
assignment, sale, conveyance or sublease shall not relieve Lessee of its obligations
hereunder, including payment of rentals, fees and other charges,
k11--,
no_
F
Tank Farm Lease-Richardson Aviation
Page 14
20. 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 Agreement and Lessor may
terminate this Agreement immediately. However, Lessee's financial obligation to Lessor to
liquidate and discharge such lien shall continue in effect following termination of this Agreement
and until such a time as the lien is discharged.
21. 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 Tank Farm Premises or
Leased Premises or any improvements or property placed on the Tank Farm Premises or Leased
Premises by Lessee as a result of its occupancy or fueling operations at the Airport.
22. COMPLIANCE WITH LAWS, ORDINANCES,RULES AND REGULATIONS.
Lessee covenants and agrees that it shall not engage in any unlawful use of the Tank Farm
Premises or Leased 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 Tank Farm Premises or Leased Premises and Lessee immediately shall remove
from such Premises any person engaging in such unlawful activities. Unlawful use of such
Premises by Lessee itself shall constitute an immediate breach of this Agreement.
Lessee agrees to comply with all federal, state and local laws; all ordinances, rules and
regulations of the City of Fort Worth and the City of Fort Worth Police, Fire and Health
Departments; all rules and regulations established by the FAA and 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 (collectively "Laws"). Lessee hereby assumes full responsibility for the
violation of any Law by Lessee, its officers, agents, employees, contractors, subcontractors,
licensees or invitees and shall pay or fully indemnify the City for any fines or other lawful penalties'
assessed for any such violation. If Lessor notifies Lessee or any of its officers, agents, employees,
contractors, subcontractors, licensees or invitees of any violation of such laws, ordinances, miles or
regulations, Lessee shall irnmediately desist from and correct the violation,
23. NON-DISCRIMINATION COVENANT.
Lessee, for itself, its personal representatives, successors in interest and assigns, as part of
the consideration her n, agrees as a coveerna' t ninmna with the land that no person shall be
Kill
Z� OIL
1 ank Farm Lease-Richardson Aviation
Page 15
A
excluded from participation in or denied the benefits of Lessee's use of the Tank Farm Premises or
fueling operations at the Airport on the basis of race, color, national origin, religion, handicap, sex,
sexual orientation or familial status. Lessee further agrees for itself, its personal representatives,
successors in interest and assigns that no person shall be excluded from the provision of any
services on or in the construction of any improvements or alterations to the Tank Farm Premises on
grounds of race, color, national origin, religion, handicap, sex, sexual orientation or familial status.
Lessee agrees to provide its services 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 this regulation 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.
24. LICENSES AND PERMITS.
Lessee shall, at its sole expense, obtain and keep in effect all licenses and permits necessary
for the operation of its aviation fuel sales business and other aviation-related activities at the
Airport.
25. GOVERNMENTAL POWERS.
It is understood and agreed that by execution of this Agreement, the City of Fort Worth does
not waive or surrender any of its governmental powers.
26. NO WAIVER.
The failure of Lessor to insist upon the performance of any term or provision of this
Agreement 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.
27. VENUE AND JURISDICTION,
Should anv action, whether real or asserted, at law or in equity, arise out of the terms of this
Agreement or by Lessee's operations on the Tank Farm Premises or Leased Premises, venue for
such action shall lie in state courts located in Tarrant County, Texas or in the United States District
Court for the Northern District of Texas, Fort Worth Division. This Agreement shall be construed
in accordance with the laws of the State of Texas.
Tank Pam L s, Richardson Avian on
i ea
Page 16
28. ATTORNEYS' FEES.
In any action brought by Lessor for the enforcement of the obligations of Lessee, Lessor
shall be entitled to recover interest and reasonable attorneys' fees.
29. SEVERABILITY.
If any provision of this Agreement 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.
30. FORCE MAJEURE.
Lessor and Lessee shall exercise every reasonable effort to meet their respective obligations
as set forth in this Agreement, 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 by any
governmental authority, transportation problems and/or any other cause beyond the reasonable
control of the parties.
31. HEADINGS NOT CONTROLLING.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
32. ENTIRETY OF AGREEMENT.
This written instrurnent, including any documents 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 here-by declared null and void to the extent in conflict with any provisions of
this Agreement.
'Z 'c
-'j
Tank Farm Lease Richardson Aviation H
Page 17,
IN WITNESS WIER
EOF, the parties hereto have executed this Agreement in multiples
this day of 2000.
CITY OF FORT WORTH: RICHARDSON AVIATION:
By: SRCG Aviation, Inc., a Texas Corporation,
its General P�irtn�:
By. By:
Ram6n Guajardo W. Robert Cotham
Assistant City Manager Vice President
ATTEST: ATTEST:
1-12 By:
By. '�,KILJA
Gloria Pearson" 3- Fk-A) Name:
City Secretary Title:
APPROVED AS TO FORM AND LEGALITY:
By:
-
Peter Vaky
Assistant City Attorney
M&C: _9
01"
an Farm Lease-Richardson Aviation
Page 1 8
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 W. Robert Cotharn, 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
Richardson Aviation, and that he executed the same as the act of Richardson Aviation, for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this, day of
2000.
By:
ANN LOREY
NOTARY PUBLIC Notary Public in and for th tate of Texas
STATE OF TEXAS
My Comm.Exp.9-15-2002
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 Ram6n Guajardo, 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 thisQL4"day of 2000.
By:
Not Public in and,"fo'i the State of Texas
a PIAH JAIINIIE 001
A
NC ARY PUBLIC
we of T"mac
(Drz sl
Tank Farm Lease-Richardson Aviation
Page 19
Tvy
Co
WAY TM'3,677- loo. f 50'W
RUNWAY 09127
7W i) 50,w 70'. 0 C
cv, Z*as
sow
N
X
M
>
ZE
X
C3
jj0
V 0"
M
zo 0
0
z
>
r—
M 3�
Y, rq
t�
it 11
>
r"e,Form
J
FORT WORTH MEACHAM INTERNATIONAL AIRPORT
FUEL FARM LEASE AREA Az:,ANCE
RICHARDSON AVIATION, INC. x-f--\
FORT
WORTH
JDEPARTMENT OF
A VIA TION
EXHIBIT A
NOT TO SCALE
North Access Road
SITE Na. I
SITE No. 2 SITE No. 3
SITE No. 2A SITE No. 3A
South Access Road
Dimensions: 60'x 60'=3,600 sq. ft.
MAIN STREET
SITE NO. TANK SIZE IN GALLONS CONTENT
3 20,000 JET A
_ 100LL
20,0
MrOO AV(G--AS I OOLL
JrJA2V
'0
5,001 UNLEADED
Fuei Farm.Richardson Exhibit A,WPD - ----
March 3.2000
City of Fort Worth, Texas
"noor and Coun"R Communication
DATE REFERENCE NUMBER LOG NAME PAGE
2/15/00 **C-17854 1 55FARM � 1 of I
SUBJECT TANK FARM AND PUBLIC FUELING LEASE AGREEMENT WITH RICHKR-DSON
AVIATION FOR FUEL FARM SITE NO. 3 AT FORT WORTH MEACHAM
INTERNATIONAL AIRPORT
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute a tank farm and public
fueling lease agreement with Richardson Aviation at Fort Worth Meacham International Airport.
DISCUSSION:
The Aviation Department received a request from Richardson Aviation to lease Fuel Farm Site No. 3 at
Meacham International Airport.
The total revenue received from this lease will be $305 per month, or$3,660 per year.
The terms of the lease will commence on the date of execution of this M&C and end September 30,
2004. Richardson Aviation will have the right to renew this agreement for two additional terms of five
years each, subject to the prevailing rates in effect at that time. All terms and conditions of the lease
agreement will be in accordance with standard City and Aviation Department policies.
The property is located in COUNCIL DISTRICT 2.
FISCAL INFORMATION/CERTIFICATION:
The Revenue Section of the Finance Department will be responsible for the collection and deposit of
funds due to the City under this agreement.
RGJ
Submitted for City Manager's FUND ACCOUNT CENTER AINIOUNT CITY SECRETARY
Office by: (to)
--P7E40 1-491472 0552001 $3,660,00
Ramon Guajarddo 6140
Originating Department Head:
is A. Pyles 5400 (from)
------------
Additional Information Contact:
Vll�