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HomeMy WebLinkAboutRES 83-376 37d R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby , authorized to execute an amended agreement, in the form attached hereto as Exhibit "A" , between the City of Beaumont and Professional Aviation Services Company with respect to fixed base operator activities at Beaumont Municipal Airport. PASSED BY THE CITY COUNCIL of the City of Beaumont this the -/—&& day of , 19,?3 . Mayor - M -/.r= I'3 STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON § FIXED BASE OPERATOR AGREEMENT THIS AGREEMENT is made and entered into by and between the CITY of Beaumont, Texas, a municipal corporation, hereinafter called "CITY", and Professional Aviation Services Company, a Texas Corporation, herein called "Fixed Base Operator" or "FBO". The CITY and the FBO, for and in consideration of the rents, covenants and agreements hereinafter contained, mutually covenant and agree as follows: 1. Term The terms of this agreement shall be effective until May 31, 1990. 2. Leased Premises and Rentals CITY does hereby lease unto FBO the following premises located at the Beaumont Municipal Airport: .A. FBO shall lease from CITY approximately six hundred forty-three (643) square feet of office space, as shown on Exhibit A attached hereto, in the terminal building at a rental of Six Hundred Forty-Three and No/100 ($643.00) Dollars per month. B. FBO hereby leases from CITY the large hangar building, as shown on Exhibit B attached hereto, as is on the effective date of this agreement, containing ninety-four hundred (9,400) square feet at a rental of Two Hundred and No/100 ($200.00) Dollars per month plus fifty percent (50%) of gross aircraft storage fees in excess of $300.00 per month. C. FBO hereby leases from CITY the parking ramp adjacent to the large hangar, as shown in Exhibit B attached hereto, containing twenty-one thousand three hundred (21,300) square feet, at a rental of one hundred six and and 50/100 ($106.50) Dollars per month. h;XhI3IT "A" D. The CITY may permit FBO to operate the tie-downs qr a portion thereof or the CITY may permit FBO to operate and maintain the tie-downs or a portion thereof. 1. If the CITY permits FBO to operate the tie-downs, or a portion thereof, FBO may retain fifty percent (508) of the V gross revenues received from the rental of the tie-downs. 2. If the CITY permits FBO to operate and maintain the tie-downs or a portion thereof, FBO may retain seventy-five (758) percent of the gross revenues received from the rental of the tie-downs. E. FBO shall have the right to use the flight training room in the new terminal building at an hourly charge of Two and 50/100 ($2.50) Dollars per hour. Upon thirty (30) days written notice to FBO, the CITY may modify the flight training room hourly charge. 3. Rentals All charges for office space, hangar building space and parking ramp space are subject to annual adjustment. Said annual adjustment shall commence on January 1, 1985 and each subsequent January 1 thereafter during the term of this lease. A. For the year 1985, the monthly rental for the office space may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental spucitiud in the ClTY's standards applicable to commercial aeronautical activities at the airport. 2. Six hundred forty-three and no/100 ($693.00) dollars per month increased by the percentage increase in the conswner price index nationally between May, 1982, and October of 1984; or 3. Seven hundred fifteen and no/100 ($715.00) collars per month. B. For the year 1936, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: - 2 - �-0 7� I. The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. , 2. The monthly rental effective during the year 1985 increased by the percentage increase in the consumer price index nationally between October, 1984, and October, 1985; or 3. Seven hundred seventy-five and no/100 ($775.00) dollars per month. C. For the year 1987, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1986 increased by the percentage increase in the consumer price index nationally between October, 1985, and October, 1986; or 3. Eight hundred forty and no/100 ($840.00) dollars per month. D. For the year 1988, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1987 increased by the percentage increase in the consumer price index nationally between October, 1986, and October, 1987; or 3. Nine hundred ten and no/100 ($910.00) dollars per month. E. For the year 1989, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 3 - 2. The monthly rental effective during the year' 1988 increased by the percentage increase in the consumer price index nationally between October, 1987, and October, 1988; or 3. Nine hundred eighty-five and no/100 ($985.00) dollars per month. F. For the year 1990, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in thy CITY'z standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1989 increased by the percentage increase in the consumer price index nationally between October, 1988, and October, 1989; or 3. One thousand seventy and no/100 ($1070.00) dollars per month. G. For the year 1985, the monthly rental for the hangar building space may be adjusted at the option of the CITY to the lowest of the following: 1. The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. Two hundred ($200.00) dollars per month plus fifty (508) percent of gross aircraft storage fees in excess of three hundred ($300.00) dollars per month increased by the percentage increase in the consumer price index nationally between May, 1982, and October of 1984; or 3. - Three hundred thirty-five and no/100 ($335.00) dollars per month. H. For the year 1986, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in the CITY's standaras applicable to commercial aeronautical activities at the airport. 4 - e 5 2. The monthly rental effective during the year 1985 increased by the percentage increase in the consumer price index nationally between October, 1984, and October of 1985; or 3. Three hundred sixty-five and no/100 ($365.00) dollars per month. I. For the year 1987, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1. The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1986 increased by the percentage increase in the consumer price index nationally between October, 1985, and October of 1986; or 3. Four hundred and no/100 ($400.00) dollars per month. J. For the year 1988, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1. The monthly rental specified in the CITY's , standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1987 increased by the percentage increase in the consumer price index nationally between October, 1986, and October of 1987; or 3. Four hundred thirty-five and no/100 ($435.00) .dollars per month. K. For the year 1989, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 5 - 2. The monthly rental effective during the year 1988 increased by the percentage increase in the consumer price index nationally between October, 1987, and October of 1988; or 3. Four hundred seventy and no/100 (S470.00) dollars per month. L. For the year 1990, the monthly rental may be I adjusted at the option of the CITY to the lowest of the following: 1. The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1989 increased 'by the percentage increase in the consumer price index nationally between October, 1988, and October of 1989; or 3. Five hundred ten and no/100 ($510.00) dollars per month. M. For the year 1985, the monthly rental for the parking ramp space may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in the CITY's , standards applicable to commercial aeronautical activities at the airport. 2. One hundred six and fifty/100 ($106.50) dollars per month increased by the percentage increase in the consumer price index nationally between May, 1982, and October of 1984; or 3. One hundred twenty and no/100 ($120.00) dollars per month. N. For the year 1986, the monthly rental may be adjusted at the option of the CITY to-the lowest of the following: 6 - 1. The monthly rental specified in the C1TY'S standards applicable to commercial aeronautical activities at the a i rport. 2. The monthly rental effective during the year 1985 increased by the percentage increase in the consumer price index nationally between October, 1984, and October of 1985; or 3. One hundred thirty and no/100 ($130.00) dollars per month. O. For the year 1987, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1 . The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1986 increased by the percentage increase in the consumer price index nationally between October, 1985, and October of 1986; or 3. One hundred forty and no/100 ($140.00) dollars per month. P. For the year 1988, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1. The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1987 increased by the percentage increase in the consumer price index nationally between October, 1986, and October of 1987; or 3. One hundred fifty-five and no/100 (5155.00) dollars per month. Q. For the year 1989, the monthly rental may be adjusted at the option of the CITY to the la-west of the following: 1. The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the • airport. 2. The monthly rental effective during the year 1988 increased by the percentage increase in the consumer price index nationally between October, 1987, and October of 1988; or 3. One hundred seventy and no/100 ($170.00) dollars per month. R. For the year 1990, the monthly rental may be adjusted at the option of the CITY to the lowest of the following: 1. The monthly rental specified in the CITY's standards applicable to commercial aeronautical activities at the airport. 2. The monthly rental effective during the year 1989 increased by the percentage increase in the consumer price index nationally between October, 1988, and October of 1989; or 3. One hundred eighty-five and no/100 ($185.00) dollars per month. 4. Payments Except as otherwise provided, all payments shall be made no later than the 10th day of the month following the month for which the payments are due. If said FBO payment, or any portion thereof, is not paid by the 10th day of the month, FBO shall pay a late charge of one and one-half percent (1 1/28) per month on the outstanding balance. 5. Fuel CITY shall assign and FBO shall assume the current fuel contract with Tech-Jet, Inc. , P. O. Box 4, Lovefield Terminal Building, Dallas, Texas 75235, and shall pay any and all penalties, if any, for assignment of said fuel contract. FOB may provide facilities for dispensing jet fuel. FBO shall obtain and maintain an aviation fuel allocation agreement from an aviation fuel supplier. FBO shall pay CITY a sum of three cents ($.03) - 8 - per gallon for each gallon delivered to FBO at Beaumont Municipal Airport. City shall provide a minimum of one fixed, metered, filter-equipped dispenser and two, eight thousand (8,000)- gallon underground tanks, as shown on Exhibit B attached hereto, for. providing standard grades of aviation gasoline. FBO shall maintain gasoline tanks, pumps and all other equipment used in the delivery of gasoline. All fuel services shall comply with all federal, state and local laws, ordinances, regulations and standards. For the term of the agreement following April 10, 1985, the fuel fee shall be the lowest of the following: 1. The per gallon flowage fee established by the CITY's standards applicable to fuel services to the Beaumont Municipal Airport; or 2. Six cents (6je) per gallon; or 3. Three cents (31e) per gallon increased by the percentage increase in the consumer price index nationally between April, 1980, and March, 1985. 6. Services to be Performed by FBO FBO shall perform the following services at reasonable charges: A. FBO shall provide petroleum lubricant, oil and other items necessary for the normal operation of aircraft using the facilities; B. FBO shall provide equipment to wash aircraft, inflate tires, change aircraft engine oil, and conduct minor repairs and services not requiring a certified mechanic's rating; C. FBO shall maintain listening watch and operate the Aeronautical Advisory Radio (UNICOM) , provided by and maintained by CITY, subject to any radio operating procedures established by the City Manager or his designee; D. FBO shall have installed at its expense in the new terminal building a telephone available to the public at all times; 9 ' E. F130 shall provide loading, unloading and towing 's-ervices; F. FBO shall provide primary flight instruction and training services; G. FBO shall provide aircraft, airframe and engine repair, maintenance and overhaul services. 7. Optional Services to be Performed by FBO FBO may perform the following services: A. Sales and rental of new and used aircraft; b. Aircraft charter services; C. T-Ha nga r storage; D. Ramp parking and tie-down services. 8. Standards to be met by FBO FBO shall meet the following minimum standards and requirements: A. Aircraft Line and Miscellaneous Services 1 ) Fueling and Lubricating oil Sales and Service. FBO shall demonstrate, to the satisfaction of the CITY, that satisfactory arrangements or agreements have been made with a reputable aviation lubricant distributor who will proviue FbO an enforceable agreement, to purchase lubricants in such quantities as are necessary to meet the requirements set forth herein. Fueling and lubricant sales, and introplane delivery of aviation.fuels, lubricants and other related petroleum products shall be available to the public a minimum of twelve (12) hours per day from 7:00 a.m. to 7:00 p.m. each day. However, no service shall be required on the 25th day of December and the 1st day of January 0 10 - on the odd-numbered years. F'BO shall maintain an emergency call out service at all other hours. 2) Loading, Unloading and Towing FBO shall provide adequate loading, unloading, and towing equipment to move aircraft safely and efficiently. B. Primary Flight Instruction and Training. FBO shall provide the following: 1) At least one (1) properly certified flight instructor to instruct student pilots at dual and solo flights in fixed wing aircraft; 2) Such related ground school instruction as is necessary for and preparatory to a student's licensing; 3) Training to meet the continuing requirements for certification by the Federal Aviation Administration; 4) Certified pilots and instructors in sufficient numbers, never less than one (1) , to meet the demands of the students engaged in flight + training. ' i C. Aircraft, Airframe and Engine Repair, Maintenance and overhaul. FBO shall provide Federal Aviation Administration approved airframe, power plant and accessory over-haul and repair services on genera-1 aviation aircraft, including the following services: 1) Sufficient hangar space to house any aircraft upon which airframe or engine repairs are being performed; 2) Suitable inside and outside storage space for aircraft before and after repair and maintenance have been completed; - 11 - 3) Adequate shop space to 11Ol1Se equi(+nent anti ade- quate equipment and machine tools, jacks, lifts, and testing equipment to perform overhauls as required for FAA certification and repair of parts not needing replacement on general aviation aircraft; 4) An inventory of readily expendable spare parts, or adequate arrangements for securing spare parts, required for the type and model of aircraft sold by FBO; 5) At least one (1) FAA certified airframe and power plant mechanic available at least eight (8) hours per day Monday through Friday. Provided, however, that on the following holidays - the 1st day of January, the 4th day of July, Thanksgiving Day, Labor Day, and the 25th day of December - the mechanic may be available on an "on call" basis. D. New and Used Aircraft Sales and Rental Activity. If FBO provides new and used aircraft sales aqd rentals, the following services must be provided by FBO: 1 ) Suitable office space for consumating sales anu rentals and the keeping of proper records in connection therewith; 2) hangar storage space for at least one (1) aircraft to be used for sales or rentals; 3) For rentals, at least one (1 ) air worthy aircraft, properly maintained and certified; 4) For sales of new aircraft, a sales or distribu- torship franchise from a recognizes aircraft manufacturer and at least one (1 ) demonstrator model of such aircraft;, 5) Adequate facilities for servicing and repairin:;; 12 - 6) A certified pilot capable of demonstrating new aircraft for sale or for checking other pilots in rental aircraft. Said pilot shall be available eight (8) hours per day, Monday through Friday; 7) Current specifications and price lists for models of new aircraft sold; 8) Proper check lists and operating manuals on all aircraft rented and sold. E. Aircraft Charter Activity. If provided by the FBO, the following services must be provided: 1) Adequate table, desk or counter for checking in passengers, collecting fares, and handling luggage; 2) Properly certified aircraft with properly certified and qualified operating crews; 3) FBO shall comply with all Federal, State and local laws, ordinances, and regulations which relate to the provision of aircraft charter services. 9. Approval of Rates and Charges FBO shall maintain a schedule of rates and charges lut all'services provided. CITY reserves the right to regulate and require prior approval of any of said rates ana charges. 10. Taxes and Assessments Fbo shall pay, when due, all taxes, ad valorem or otherwise, and all special assessments assessed against any property owned by FBO or leased by FBO hereunder- 11. Utilities FbO shall provide at its expense all 'utilities servicing facilities leased by FBO hereunder, except in the new terminal building. i 12. Maintenance FBO shall, at its expense, maintain all facilities and premises leased to it hereunder, except in the new terminal building. 13. Subleases FBO may not sublease or sign any portion of this agreement or any of the premises leased to FBO hereunder to any other person, firm, or corporation without the prior consent, in writing, of CITY. 14. Indemnity and Insurance A. Indemnity FbO shall indemnify, defend, and hold harmless, CITY, its officers, agents and employees from any and all liabilities, demands, actions, losses, damages and costs, including all costs of defense thereof caused by or arising out of, or in any way related to FBO's use or occupancy of the leased premises or occurring on the leased premises during the term of the lease or caused by, arising out of, or in any way related to - operations conducted by FBO including claims, liabilities and actions based upon acts, omissions, or negligence of the CITY, its officers, agents, and employees. Upon demand, FBO shall, at its own expense, defend CITY, its officers, agents, and employees, through counsel acceptable to CITY, against any and all liabilities, claims, demands, actions, losses, damages and costs. B. Insurance LESSEE shall purchase and maintain in full force and effect insurance as provided herein, with the City of Beaumont as a named insured. A certificate of insurance, or a copy of the insurance policies, shall be furnished to CITY and shall provide that the CITY shall receive ten (10) days prior written notice before any change or cancellation of any policy. The limits established herein may be modified by prior written consent of the City Manager. { 14 - ' f 1) Aircraft Liability Bodily Injury (each accident): $100,000/$300,000 Passenger Liability:., $ 75,000 (each accident): per passenger Property Damage $100,000 (each accident): 2) Comprehensive Public-Liability and Property Damage, including cont-ractual liability Bodily Injury (each accident) : $300,000 Property Damage $100,000 (each accident): Broad from liability endorsement for G222 shall be included. 3) Hangarkeerer's Liability $250,000 per accident 4) Products and Completed Operations Bodily Injury - $300,000 Property Damage - $100,000 5) Student and Renter's Liability $25,000 per accident, excluding passengers 6) Motor Vehicle Liability Bodily Injury - $250,000 per person $500,000 per occurrence Property Damage - $100,000 per occurrence 7) Statutory worker's Compensation Should any insurance required by this contract lapse, the Fixed Base Operator shall immediately cease all operations as of the time and date of such lapse covered by such contract at the Airport and FBO shall not resume any operations until authorized by the City Manager. If the lapse period extends fifteen (15) days, the contract shall automatically terminate. 15. Compliance with Rules and Regulations FBO shall comply with all rules and regulations of the Federal Aviation Administration and the laws of the United States 15 - F, of America, the State of Texas, and all laws, regulations and ordinances of the City of Beaumont as they now exist or mdy hereafter be enacted or amended. 16. Nondiscriminatory Service to Public FBO promises and agrees that if a service such as the furnishing or sale of any aeronautical parts, materials or supplies essential to the operation of aircraft at the beaumont Municipal Airport is rendered to the public, FBO shall furnish said service and repair, on an equal, and not unjustly discriminatory, basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, however, FBO may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. 17. Surrender of Possession At the expiration of this agreement FBO promises and agrees to deliver unto CITY the leased premises in as good condition as of the date of execution of this agreement, reasonable wear and tear excepted. 18. National Emergency CITY reserves the right during the time of war or national emergency to lease the landing area or any part thereof to the United States Government for military or any such use provided that if any such lease is executed, provisions of this agreement shall be suspended insofar as they are inconsistent with the provisions of the lease to the United States Government. 19. Subordination This agreement shall be subordinate to and subject to the provisions of any existing or future agreement between the CITY and the United States relative to the operation or maintenance of the airport, the execution of which has been or may 16 - be required as a condition precedent to the expenaiture of federal funds for the development of the airport. 20. Nondiscrimination FBO, in the operations to be conducted pursuant to the provisions of this agreement and otherwise, shall not discriminate against any person or group of persons in any manner prohibited by Part 15 of the Federal Aviation Regulations or any amendments thereto. FBO for himself, his heirs, personal representatives, successors, and assigns, does hereby covenant and agree to maintain and operate all facilities and services authorized hereunder in compliance with all the requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination of Federally-Assisted Programs of the Department of Transportation, effectuation of Title 6 of the Civil Rights Act of 1964, and as said regulations may be amended. In the event of breach of any of the above nondiscrimination covenants, CITY shall have the right to terminate this agreement and to re-enter and repossess said land and the facilities thereon, and to hold the same as if this agreement had never been made or issued. F130, for himself, his personal representatives, successors in interest, and assigns does hereby covenant and agree that (1) no person on the grounds of race, sex, color, or national origin, shall be excluded from participation, denied the benefits of or be otherwise subjected to discrimination in the use of said facilities; (2) that in the construction of any improvements on, over and under such land and the furnishing of services theeon, no person on the grounds of race, sex, color or national origin shall be excluded from participation in, or denied the benefits of such improvements or services, or otherwise be subjected to discrimination; and (3) that FBO shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Deparrment of Transportation, Subtitle A, Office of 17 - r the Secretary, Part 21, Nondiscrimination in Yedetally-Assiste.o Programs of the Department of Transportation, effectuation of Title VI of the Civil Rights Act of 1964, and as said regulations may be amended. In the event of breach of any of the above nondiscrimination covenants herein, CITY shall have the right to terminate this agreement, and to re-enter and to repossess said premises and facilities, and hold the same as if this agreement had never been made or issued. 21. Audit and Financial Regulations CITY shall have the right through its agents and employees to audit and examine at all reasonable times each of FBO's books and financial records which may be reasonably requited by CITY in order to enforce the terms of this agreement or to evaluate FBO's performance thereof. FBO shall maintain fuel inventory records on a daily basis. Financial records will be maintained with such adequacy so as to allow identification of the source of all revenue. Monthly rentals and fuel payments will be made to the CITY accompanied by a remittance form as provided by the CITY. 22. Airport Certification ' FBO shall comply with all rules that pertain to this operation under the Airport Certification Rules of the FAA. 23. Inspection The CITY shall be permitted to enter and view the premises at any and all times for the purpose of inspecting or maintaining such premises and doing any and all things with reference thereto which the CITY is obligated to do or which may be deemed necessary or desirable for the proper conduct and operation of the Beaumont Municipal Airport. 24. Use of Premises FbO shall not use the leased premises or any portion thereof for any purposes other than the operation of an airport_ - 16 - 25. Co-Partnership Disclaimer It is mutually understood and agreed that nothing in this agreement is intended or shall be construed as in any way creating or establishing the relationship of partners or cc-partners between the parties hereto, or as constituting the Fbo as an agent or representative of the CITY for any purposes or in any manner whatsoever. 26. Notices Any notice to the CITY shall be sufficient it sent by certified mail, postage prepaid, addressed to the City Manager, City of Beaumont, Texas, P. O. Box 3827, Beaumont, Texas 77704. Any notice to FBO shall be sufficient if hand delivered or sent by certified mail, postage prepaid, addressed to FBO at the following address: Professional Aviation Services, Co.., P. 0. Box 7719, Beaumont, Texas 77706. 27. Time of Essence Time is of the essence of each and all the terms and provisions of this agreement, and theterms and provisions of this agreement shall extend to and be binding upon and inure to the benefit of the heirs, executors, administrators, successors and assigns of the respected parties hereto. 28. Sale of Alcoholic Beverages It is specifically agreed by the parties hereto that the sale of beer, wine, and other liquors is prohibited on said premises without prior written consent of the City Manager of CITY. 29. Signs FbO shall not erect or place any exterior signs on the premises without the prior written approval of the CITY. 19 - 1<,4 f 30. Termination Prior to Ex ,iralic,n A. Termination CITY shall have the right to terminate this lease in i whole or in part on the occurrency of any of the following events: 1 ) Failure on the part of the FBO to pay rent wt-eri due unless such failure is corrected within a 30-day period; 2) The failure of the FBO to perform substantially or to keep or observe any of the terms, covenants and conditions which he is obligated to perform, keep or observe under this lease, after the expiration of a 15-day period of warning or ultimatum given by the City Manager or Director of Urban Transportation to the Lessee to correct any such deficiency or default. 3) The abandonment of the premises or any portion thereof or discontinuance of the FBO's business operations, or any portion thereof. Should this occur, CITY shall not be responsible for the custodial protection of merchandise, fixtures, or equipment abandoned, even though it is necessary for CITY to remove the same from the leased premises for storage or disposal; 4) In the event of need for the premises by the CITY for purposes of national defense; 5) In the event of need for the premises by the CITY for any other municipal purpose. b. Rights After Termination In the event of termination for default or unsatisfactory performance by the FBO, the CITY shall have the right (unless otherwise specified in the termination notice) , at once and without further notice to the Lessee or surety, to enter - 20 - and take possession of the premises occupied by the FbO, t)y force or otherwise, and expel, oust and remove any and all parties who occupy any portion of the premises of the airport covered by this lease, and any and all goods and chattels belonging to the FBO or his associates which may be found in or upon same without being liable for prosecution or to any claim for damages therefor. Upon such termination by the CITY, all rights, powers and privileges of the Lessee shall cease, and the FBO shall immediately vacate any and all space occupied by him under this lease, and shall make no claim of any kind whatsoever against the CITY, its agents or representatives by reason of such termination, or any act incioent thereto. C. FBO shall have the option to terminate this agreement on giving fifteen (15) days' written notice to CITY, if at any time during the term hereof, aviation fuel shall, for any reason, become unavailable to FBO and said unavailability shall materially interfere with the conduct of FBO's business at Beaumont Municipal Airport. 31. sale of Interest FBO may not sell all or part interest in activities of the Beaumont Municipal Airport to another party or parties without written approval of the CITY of such sale. CITY may require any records or financial statements necessary in its opinion to insure such sale will be in the best interest of the CITY. 32. Right to Renegotiate The CITY may, at its option, require Fb0 to provide records or financial statements necessary in its opinion to determine FBO revenues, expenses and profits. Should revenues or profit increase by fifty percent (50%) or more in a 12-month period, the CITY may require renegotiation of this agreement. 21 - EXECUTED in duplicate originals this the day of 15 CITY OF bEAUMONT by: City Manager ATTEST: City Clerk PROFESSIONAL AVIATION bERV10E5 COMPANY by: ATTEST: by: 22 - 7 WORK ROOM PILOT'S v t x LOUNGE IFR PASSAGE z 0 Ir CL _z a VENDING PUBLK;LOBEFY Y ROAM ROOM LL Q Q U cr Q FLIGHT TRAINING OFFICE EXHIBIT "A AIRPORT TERMINAL BLDG. LEASED AREA Urh n Trv.spo ,n Dept 8/3/83 B.C.K- - ,3 2� jy-1100 GAL.U'll � ,nSQ� FUEL PUMPS SQe 7 � � O k I ti Few SPP inspi ' LOCATION PLAN ^^ "AYPR�ON• ti,3W YQ. FT' 3"N'��� '•' � !'!` r iS^�-� f^. fir',. LEASED AREA S^ .n x^ 9400 50-F ti, EXHIBIT "B ,v APRON & HANGAR SEAUMONT MUNICIPAL AIRPORT BEAUMONT, TEXAS 6-14-85