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HomeMy WebLinkAboutRES 90-049 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 a facilities lease agreement in substantially the form attached hereto as Exhibit "A" with Beaumont Air Service, Inc. , for commercial aeronautical services and activities to be provided as a fixed base operator at the Beaumont Municipal Airport. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of ��i ,1990. - Mayor - 90- 7 / b ilt C t We COMMERCIAL AERONAUTICAL SERVICES AND ACTIVITIES (FBO) FACILITIES LEASE AGREEMENT THIS LEASE AGREEMENT, made this 26th day of March 1990, between the City of Beaumont, Texas (hereinafter called "City") and Beaumont Air Service Company, a corporation organized and existing under the laws of the State of Texas and authorized to do business in the State of Texas (hereinafter called "Lessee". WHEREAS, City owns the Beaumont Municipal Airport (hereinafter called "Airport"), located in the City of Beaumont, Jefferson County, Texas; and WHEREAS, Lessee is a corporation engaged in the business of providing certain commercial aeronautical services and activities; and WHEREAS, City has right, title and interest in and to the facilities and privileges hereinafter granted, and has full power and authority to enter into this Agreement in respect thereof; and WHEREAS, Lessee desires to lease certain facilities thereon upon the terms and conditions hereinafter stated; NOW, THEREFORE, in consideration of the mutual covenants and considerations herein contained, City lets and demises to Lessee and Lessee takes from City the following described leased premises, and all described rights incident thereto, subject to the following: 1.0 LEASED PREMISES The term "leased premises", as used in this Agreement, shall include at Beaumont Municipal Airport, in Jefferson, County, only those properties as shown on the attached Exhibits B,C and D; and further limited as follows: 1.1 Terminal Building Office Space (Exhibit B). 1.2 North Hangar/Office Building (Exhibit C) . 1.3 Fuel Storage Farm (Exhibit C) . 1.4 South Hangar Building (Exhibit D) . 1.4.1 Facility to be leased on an "as is basis". 2.0 OBJECTIVES AND PURPOSE OF LEASE 2.1 Use of Leased Premises. Lessee shall use the leased premises for the conduct of lessee's business at the Airport, and for no other purpose. Lessee shall comply with the Minimum Standards and Requirements for the Conduct of Commercial Aeronautical Services and Activities of the City (hereinafter called "Minimum Standards") , which are attached hereto as Exhibit E, and made a Exhibit "A" A 0: part hereof, for FBO services, including but not limited to those services stated below, in consideration of this lease agreement. 2.1.1 Aircraft Line Services; 2.1.2 Primary Flight Instruction and Training; 2.1.3 Aircraft Airframe and Engine Repair, and Maintenance; 2.1.4 Ramp parking and tie-down. Leased Premises may also be used in providing "Specialized Aviation Operations", in compliance with and defined by the City's Minimum Standards. 2.2 Prohibited Uses. The following activities are expressly prohibited: 2.2.1 Automobiles and trucks are prohibited from parking on the ramp, except for fuel truck. However, this shall not be interpreted to prohibit cars and trucks from being on the ramp for the purpose of loading and unloading aircraft. 2.2.2 Lessee shall not conduct any commercial activity on the airport not defined in the Minimum Standards, without prior written consent from City. 2.2.3 Lessee shall not use leased premises for any illegal acts. 2.2.4 Lessee shall not, in any manner, restrict access or use of public facilities by improvements or operation of its leased premises. 2.2.5 It is agreed by the parties hereto that the sale of beer, wine and other liquors is prohibited on said premises. 3.0 ALTERATIONS OR REPAIRS TO LEASED PREMISES Lessee shall not construct, install , remove and/or modify any of the buildings or premises leased hereunder without prior written approval of the city. All improvements must be made in compliance with all City of Beaumont codes. In the event that Lessee makes improvements or alterations to or on the Leased Premises, the use thereof shall be enjoyed by Lessee during the term hereof without the additional rental therefore, but such additions, alterations or improvements shall become the property of the City upon the completion of the term. 4.0 TERM OF AGREEMENT 4.1 The primary term of this agreement shall be ten (10) years, subject to a reopener on rental , as set out herein, beginning April 1, 1990, unless terminated sooner as herein provided. After completion of i the primary term, the agreement may be extended for additional 'five (5) year terms , when done at least one month prior to termination of any term or extension. All extensions must be in writing and signed by both parties. Lessee further agrees that upon the expiration of the term or extension of this Agreement or sooner cancellation thereof, the leased premises will be delivered to City in good condition, reasonable wear and tear excepted. Reasonable wear and tear shall be determined at the sole discretion of City upon inspection of the leased premises from time to time. 4.2 Six months prior to the end of the first f i ve (5) years of the initial ten (10) year term, the payments set out in paragraph 5.0 R shall be renegotiated by the parties. 5.0 RENTALS, FEES AND RECORDS 5.1 Rentals for Leased Premises. During the term hereof, Lessee shall pay to City the amount of $9,360 annually. The foregoing rentals shall be payable in equally monthly installments in advance, on or before the tenth (10th) business day of each calendar month of the term, at the City. 5.2 Fuel Flowage Fee. During the term hereof, Lessee shall pay to City the herein provide fees per gallon of fuel delivered into aircraft. Payment shall be rt-mitted to City on or before the tenth (10th) business day following the calendar month delivered. 5.2.1 $.02 per gallon for first 8,000 gallons each month. 5.2.2 $.03 per gallon for second 8,000 gallons each month. 5.2.3 $.05 per gallon for third 8,000 gallons each month and every gallon therafter. 5.3 Audit and Financial Regulations. The City shall have the right through its agents and employees to audit and examine at all reasonable times, the Lessee's books and financial and operational records which may be reasonably required by the City in order to enforce the terms of this agreement or to evaluate the Lessee's performance thereof. Financial records will be maintained with such adequacy so as to allow identification of the source of all revenue related to this agreement. 8 I } f e 5.4 Delinquent Rentals and Fees. There shall be added to all sums due City and unpaid, as may be established by City, an interest charge of one and one-half percent (1 1/2%) of the principal sum for each full calendar month of delinquency computed as simple interest. No interest shall be charged upon that portion of any debt which, in good faith, is in dispute. No interest shall be charged upon any account until payment is thirty (30) days overdue. 6.0 OBLIGATIONS OF LESSEE 6.1 Contract Administration. It is understood that City presently has contracts for mowing and maintenance on portions of the leased premises. If requested by Lessor, Lessee agrees to oversee such contracts and assure compliance with the terms of such contracts. If Lessee is unable to obtain compliance, Lessee agrees to immediately notify City of such deficiency and coordinate with the City in obtaining compliance. 6.2 Maintenance and Operation. Lessee shall maintain the leased premises at' all times in a safe, neat and attractive condition, and shall not permit the accumulation of any trash, paper, or debris on the Airport premises. Lessee shall repair or reimburse City for all damages to the leased premises caused by its employees, patrons, or its operation thereon; shall be totally responsible for the maintenance and repair any new building constructed by Lessee, unless otherwise specified in writing. Lessee shall be responsible for and perform maintenance to leased premises, including but not limited to: 6.2.1 For leased premises, Lessee shall provide janitorial services, supplies, window washing, interior painting and replacement of light bulbs. 6.2.2 Cleaning of stoppages in plumbing fixtures and drain lines. 6.2.3 Maintenance of hangar doors and door operating systems. 6.2.4 Lessee shall perform all maintenance on Lessee-constructed structures, pavement, and equipment. 6.2.5 Lessee shall advise City and obtain City's consent in writing before making changes involving structural changes to leased premises, modifications or additions to plumbing, electrical or other utilities. ' 1 C 6.2.6 Lessee is responsible for maintaining electric loads, within the designed capacity of the system. Prior to any change desired by Lessee in the electrical loading which would exceed such capacity, written consent shall be obtained from the City. 6.2.7 Lessee shall provide and maintain hand fire extinguishers for the interior of all leased premises in accordance with applicable safety codes. 6.2.8 Lessee shall maintain pumps, meters, hoses and nozzles associated with the distribution of fuel into fuel truck or aircraft. City, at its discretion, shall be the sole judge of the quality of maintenance, as specified in this agreement; and Lessee, upon written notice by City to Lessee, shall be required to perform the maintenance deemed necessary. If said maintenance is not undertaken by Lessee within thirty (30) days after receipt of written notice, City shall have the right to enter upon the leased premises and perform the necessary maintenance, the cost of which shall be borne by Lessee. No waste shall be committed or damage done to the property of the City. 6.3 Utilities. Lessee shall assume and pay for all costs or charges for utility service furnished to Lessee during the term hereof; provided, however, that Lessee shall have the right to connect to any and all storm and sanitary sewer and water and utility outlets at its own cost and expense; and Lessee shall pay for any and all service charges incurred therefore. Utility cost for the Terminal Building Office Space, excluding telephone service, shall be the responsibility of City. 6.4 Trash, Garbage, Etc. Lessee shall pick up, and provide for, a complete and proper arrangement for the adequate sanitary handling and disposal , away from the Airport, of all trash, garbage, and other refuse caused as a result of the operation of its business. Lessee shall provide and use suitable covered receptacles for all such garbage, trash, and other refuse. Piling of boxes, cartons, barrels, pallets, debris, or similar items in an unattractive or unsafe manner, on or about the leased premises, shall not be permitted. No oils, greases, detergents, or other insoluble substance shall be placed in the sewage or drainage systems or on the ground. All local , state, and federal laws regulations, and ordinances governing the disposal of waste materials shall be complied with by the Lessee. 6.5 Signs. Lessee shall not erect, maintain, or display upon the outside of leased premises any billboards, or advertising sign; provided, however, Lessee may maintain on the outside of said buildings, its own name(s) , and services on signs, the size, location and design of which shall be subject to prior written approval by City. 6.6 Nondiscrimination. The Lessee in the operation 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. The Lessee for himself, his heirs, personal representatives, successors, and assignees, 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, City of Beaumont Minority Business Enterprise Program as outlined in the Minority Business Utilization Commitment (Exhibit F) , and as said regulations may be amended. In the event of breach of any of the above discrimination 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. The Lessee, for himself, his personal representatives, successors in interest, and assignees 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 thereon, 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 Lessee shall use the premises P b e in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations. Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, effectuation of Title V of the Civil Rights Act of 1964, and as said regulations may be amended. In the event of breach 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 hold the same as if this agreement had never been made or issued. The Lessee in exercising any of the rights or privileges herein granted to it shall not on the grounds of race, color, or national origin discriminate or permit discrimination against any person or group of persons in any manner prohibited by Part 21 of the Regulations of the Secretary of Transportation. The Lessee is hereby granted the right to take such action, anything to the contrary herein notwithstanding, as the United States may direct to enforce this nondiscrimination covenant. With respect to the leased premises, Lessee agrees to furnish services on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit of service; provided, that the Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. 6.7 Affirmative Action. With respect to the leased premises, the Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. The Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. The Lessee assures that it will require that its covered suborganizations provide assurances to the Lessee that they similarly will undertake affirmative action programs and that they will require assurances from their suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect. µ @ e 6.8 Management of T-Hangers. The City presently has existing contracts for the rental of T-hangars that exist on the leased premises hereunder. The City also has guidelines and rules and regulations for the use and rental of such units including maintenance of a waiting list. Lessee shall manage the T-hangars on the leased premises. This management shall include, but not be limited to, the following activities: 6.8.1 Billing and collection of monthly rental . 6.8.2 Payment of monthly rental to the City. Payment shall be remitted to City on or before the tenth (10th) business day following the calendar month collected. 6.8.3 Monthly report of payments received and reporting delinquencies to the City showing such delinquencies on an aging schedule. 6.8.4 Maintenance of the waiting list for rental of T-hangars. 6.8.5 Enforcement of the guidelines and rules and regulations for the use of such,T-hangars. 6.8.6 Notification to the city of violations of lease terms or guidelines and rules and regulations and all enforcement efforts taken by Lessee. 6.8.7 Lessee's management responsibilities with reference to the T-hangars shall not include maintenance or upkeep of the T-hangars. 6.8.8 Lessee's management of the T-hangars shall not include a responsibility on the part of Lessee to force those persons who are leasing T-hangars to vacate such T-hangars. However, enforcement efforts, short of forcing such vacation, shall be required as part of the management of the T-hangars. 7.0 OBLIGATIONS OF CITY 7.1 Operations as a Public Airport. City covenants and agrees that it will operate and maintain the Airport facilities, as defined hereinabove, as a public Airport consistent with and pursuant to the Sponsor' Assurances given by the City to the United States Government under the Federal Airport Act. 7.2 Ingress and Egress. Upon paying the rental hereunder and performing the covenants of this Agreement, Lessee shall have the right of ingress to and egress from the leased premises for the Lessee, its officers, employees, agents, servants, customers, vendors, suppliers, patrons, and invitees over the roadways servicing the leased premises. 7.3 Maintenance of Leased Premises. 7.3.1 All building maintenance on the Terminal Building shall be borne by the City, except for custodial maintenance in leased office area. 7.3.2 All other maintenance, other than that described as Obligations of Lessee in 6.2 hereof, shall be provided by City. 7.3.3 South Hangar Building is included in Leased premises on an "as is basis". City shall make no claim as to when, if any, repairs or improvements will be made. City shall retain the right to determine need for and ability to provide repairs, maintenance or improvements. 7.4 Underground Fuel Storage Tanks. City shall be responsible for the existing underground fuel storage tanks complying with local , state and federal laws governing such. 8.0 CITY'S RESERVATIONS 8.1 Improvements, Relocation, or Removal of Structures. City, at its sole discretion, reserves the right to further develop or improve the aircraft operation area and other portions of the Airport, including the right to remove or relocate any structure on the Airport, as it sees fit, and to take any action it considers necessary to protect the aerial approaches of the Airport against obstructions, together with the right to prevent Lessee from erecting or permitting to be erected, any buildings or other structure on the Airport which, in the opinion of City would limit the usefulness of the Airport or constitute a hazard to aircraft. 8.2 Inspection of Leased Premises. City, through its duly authorized agent, shall have at any reasonable time, the full and unrestricted right to enter the leased premises for the purpose of periodic inspection for fire protection, maintenance and to investigate compliance with the terms of this Agreement. 8.3 Subordination to U.S. Government. This Agreement shall be subordinate to the provisions of any existing or future agreement(s) between the City and the United States, relative to the operation and maintenance of the Airport, the terms and execution of which have been or may be required as a condition precedent to the expenditure or reimbursement to City for Federal funds for the development of the Airport. 8.4 War or National Emergency. During the time of war or national emergency, City shall have the right to lease the Airport or any part thereof to the United States Government for military use, and if any such lease is executed, the provisions of this Agreement, insofar as they are inconsistent with the lease to the Government, shall be suspended, and in that event, a just and proportionate part of the rent hereunder shall be abated. 9.0 INDEMNITY AND INSURANCE 9.1 Indemnification. Operator shall indemnify, defend, and hold harmless City, its officers; agents and employees from any and all liabilities, claims demands, actions, losses, damages and costs, including all costs of defense thereof, caused by or arising out of, or in any way related to Lessee's use or occupancy of the leased premises or occurring on the leased premises during the term of the lease or any time of occupancy of the premises by inverse condemnation, and including claims, liabilities and actions based upon acts, omissions or negligence of the City, its officers, agents, and employees. Upon demand, Lessee shall , at its own expense, defend City, its officers, agents, and employees against any and all liabilities, claims demands, actions, losses, damages and costs. 9.2 Insurance Coverages. Insurance coverage shall be provided and paid for by the Lessee in the following amounts with the city, and all other personnel as additional insured. A Certificate of Insurance or a copy of the insurance policies involved will be furnished to the City and ten (10) day's advance written notice of any change to any policy or cancellation of any policy shall be given to the City. The City shall retain the right to waive any insurance requirements or limits. 9.2.1 Aircraft Liability: Bodily Injury (Each Accident) 100,000 each person 300,000 for more than one person Property Damage 100,000 each accident 9.2.2 Comprehensive Public Liability and Property Damage including Contractual Liability: Bodily Injury 300,000 each accident Property Damage 100,000 each accident Broad form liability endorsement form G222 shall be included. 9.2.3 Hangar Keeper's Liability: 250,000 each accident 9.2.4 Product's and Completed Operations: 300,000 Bodily Injury 100,000 Property Damage 9.2.5 Student and Renter's Liability: 25,000 per accident excluding passengers. 9.2.6 Motor Vehicle Liability: Bodily Injury (Each Accident) 250,000 each person 500,000 per occurrence Property Damage 100,000 each accident 9.2.7 Worker's Compensation and Employer's Liability: Up to Statutory Limit 9.2.8 Should any insurance required by this agreement lapse, the Lessee shall immediately cease all operations at the airport as of the time and date of such lapse, and shall not resume any operations until authorized in writing by the City. If the lapse period extends fifteen (15) days, the agreement may be terminated and the Lessee shall be in breach of this agreement. 9.2.9 Should the City receive notices of insurance cancellation three (3) or more times within a twenty-four (24) month period, the City may cancel this agreement. 10.0 TERMINATION 10.1 Termination by City. The City, besides all other rights or remedies it may have, shall have the right to terminate this agreement upon fifteen (15) days written notice from the City to the Lessee of its election to do so, and shall have the right of re-entry and may remove all persons and property from the premises and may store such property at a public warehouse or elsewhere at the expense of, and for the account of the Lessee, if the Lessee abandons the premises or breaches this agreement, including the following: 10.1.1 By failing to pay insurance premiums, liens, claims, or other charges. 10.1.2 By failing to pay any payments due the City, State, or Federal Government from the Lessee or its principals, including, but not limited to, payments identified in this agreement or any taxes, fees, assessments, or liens. 10.1.3 By assigning or subletting the leased premises without consent of the City. 10.1.4 On the institution of voluntary or involuntary bankruptcy proceeding against the Lessee. 10.1.5 By death of the Lessee, or dissolution of the Lessee's firm or business. 10.1.6 By violation of any provision of the agreement identified as a covenant on the part of the Lessee. 10.1.7 By the abandonment of the premises or any portion thereof and discontinuance of the Lessee's operations, or any portion thereof. Should this occur, the City shall not be responsible for the custodial protection of merchandise, fixtures, or equipment abandoned, even though it is necessary for the City to remove the same from the airport for storage or disposal . 10.1'.8 In •the event of the need for the airport by the City for purposes of national defense. 10.1.9 In the event the airport is no longer operated as an aeronautical facility. 10.2 Termination by Lessee. The Lessee, besides all other rights or remedies it may have, shall have the right to terminate this agreement upon fifteen (15) days written notice of its election to do so if the City breaches this agreement, including failure to pay the Lessee amounts due under terms of this agreement after the expiration of a thirty (30) day period following notice of payment due is given by the Lessee. 10.3 Rights After Termination. In the event of termination for default for unsatisfactory performance by the Lessee, the City shall have the right (unless otherwise specified in the termination notice), at once and without further notice to the Lessee, to enter and take possession of vehicles, equipment, supplies, or any premises occupied by the Lessee, by 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 agreement, and any and all goods and chattels belonging to the Lessee or his associates which may be found in or upon same without being liable for prosecution or to any claim for damages therefore. Upon such termination by the City, all rights, powers and privileges of the Lessee shall cease, and the Lessee shall immediately vacate any and all space occupied by the Lessee under this agreement, and shall make no claim of any kind whatsoever against the City, its agents or representatives by reason of such termination, or any act incident thereto. 11.0 ASSIGNMENT AND SUBLETTING 11.1 Successors and Assignment. Lessee shall not assign this Agreement or any part thereof in any manner whatsoever or assign any of the privileges recited herein without the prior written consent of City. In the event of such assignment, Lessee shall remain liable to City for the remainder of the term of the Agreement to pay to City any portion of the rental and fees or damages, as provided for herein, upon failure of the assignee to pay the same when due. All covenants, stipulations and provisions in the agreement to be entered into shall extend to and bind the legal representative, successors and assigns. Said assignee shall not assign said Agreement except with the prior written approval of the City and the Lessee herein, and any assignment by the Lessee shall contain a clause to this effect. 11.2 Subletting The Lessee may rent or sublease the leased premises or portions thereof for the purpose of providing space to meet the required services as stated herein, but shall be required to obtain prior written permission from the City. Lessee shall not rent or sublease all or any part of such premises or the improvements located thereon, for any non-airport aviation activity or other purpose, without the prior written consent of the City. Subleases shall be subject to all of the conditions and provisions to which the Lessee is bound, under terms of this agreement. 12.0 GENERAL PROVISION 12.1 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 co-partners between the parties hereto, or as constituting the Lessee as an agent or representative of the City for any purposes or in any manner whatsoever. 12.2 Non-exclusive Rights. It is hereby specifically understood and agreed between the parties that nothing herein contained shall be construed as granting or authorizing the granting of exclusive rights to Lessee or others, as defined in Section 308 of the Federal Aviation Act of 1958, as amended. 12.3 Waivers. No waiver by either party of a breach by the other shall be construed or held to be a waiver by such party of any succeeding or preceding breach by the other party of the same or any covenant, condition, or restriction herein contained. 12.4 Modifications. Where changes to activities or areas included in this agreement are made, such modifications must be in writing. The City shall have the right to require modifications in scope of work. 12.5 Lessee Inspection. The Lessee acknowledges it responsibility for inspecting of the airport and the leased premises prior to signing of this agreement and to inform itself regarding local conditions. 12.6 Lessee Provision of Labor, Etc. Unless otherwise specifically indicated, the Lessee shall furnish all services, supplies, and equipment necessary to perform all activities and covenants of this agreement. 12.7 Conditions Beyond Control . Neither the City nor the Lessee shall be required to perform any term, condition or covenant of this agreement so long as performance is delayed or prevented by force majeure, which shall mean acts of God, drought, floods, material or labor restrictions by any governmental authority, and any other cause not reasonably within the control of either party in :which, by the exercise of due diligence, the City or Lessee is unable or in party, to prevent or overcome. 12.8 Sale of Interest. The Lessee may not sell or assign all or part interest in activities of the Airport to another party or parties without written approval of the City of such sale or assignment. The City may require any records or financial statements necessary in its opinion to insure such sale or assignment will be in the best interest of the City. 12.9 Service Levels. Lessee and sublessees agree to conduct said business in a proper and courteous manner and to furnish good, prompt and efficient commercial aeronautical services at all times, and in compliance with City's Minimum Standards. 12.10 Aircraft Service by Owner or Operator of Aircraft. It is clearly understood and agreed by the Lessee that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the Airport form performing any services on its own aircraft with its own regular employees, including, but not limited to, maintenance and repair that it may choose to perform. 12.11 Subordination. This agreement shall be subordinate to the provisions of any existing or future agreement between City and the United States, relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the Airport. This subordination includes, but is not limited to, the right of the City, during times of war or national emergency, to lease the landing area, or any part thereof, to the United States Government for military or naval use, and if any such lease is executed, the provisions of this instrument, insofar as they ar inconsistent with the provisions of the lease to the Government, shall be suspended. 12.12 No-sham Affidavit. All terms and conditions with respect to this lease are expressly contained herein, and the Lessee agrees that no representative or agent of the City has made any representation or promise with respect to this lease no expressly contained herein. 12.13 Compliance With Laws, Etc. The Lessee shall at all times comply with the Airport Rules and Regulations, Federal , State, and Municipal laws, ordinances, codes, and other regulatory measures now in existence or, as may be hereafter modified or amended, applicable to the specific type of operation contemplated by him. The Lessee shall procure and maintain during the term of the agreement all licenses, permits, and other similar authorizations required for the conduct of his business operations. 12.14 Severability. If any term or provision of this lease shall , to any extent, be invalid or unenforceable, the remainder of this lease shall not be affected thereby and each other term and provision of this lease shall be valid and be enforced to the fullest extent permitted by law. 12.15 Binding Effect. This lease, including all of its covenants, terms, provisions, and conditions, shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, successors and assigns. 12.16 Duty to be Reasonable. Wherever in this agreement the City is to give its consent, approval or otherwise exercise discretion in judgement, such consent, approval or judgment shall not be unreasonably exercised or unreasonably withheld. 12.17 Paragraph Headings. The paragraph headings contained herein are for convenience in reference and are not intended to define or limit the scope of any provision of this agreement. 12.18 Notices. Whenever any notice or payment is required by this agrement to be made, given or transmitted to the parties hereto, such notice or payment shall be enclosed in an envelope with sufficient postage attached to insure delivery and deposited in the United States Mail , addressed to: Airport Management City of Beaumont P. 0. Box 3827 Beaumont, Texas 77704 and notices, consents and approvals to Lessee addressed to: Beaumont Air Service Companuy 455 Keith Road Beaumont, Texas 77713 or such place as either party shall , by written directive, designate in the manner herein provided. Approvals and consents required herein may be given and executed by City Manager of City. 12.19 Exhibits. The Exhibits A,B,C,D,E and F attached hereto are hereby made a part of this agreement. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the date first above mentioned at Beaumont, Texas. CITY OF BEAUMONT, TEXAS LESSEE Ray Ri ey, City Mana er Lessee ATTEST: \ 0 NI I �•i l I , r I J it 1 I^ y C, o� - i LEGEND I QI TERMINAL BLDG NORTH HANGER/ OFFICE BLDG. 1 ~ c.1 ® SOUTH HANGER 34 • • U S. AoRMWliv I • BEAUMONT MUNICIPAL AIRPORT EXHIBIT A Z. AIRCRAFT APRON ......................... W: :. ...................... X.N m 2 r & a cr 0 3 ac U W_� Z a ° a a f-r 9� WO cn H c PARKING TER MAL BLDG. OFFICE SPACE TERMINAL BLDG. . EXIBIT B 120.61 A/C UPtiIAIRti - A/C 4 1 PARTS A/C 1 RAINING ROOM ai ROOM SIG u DOWN I OFFICE OFFICE �,P Pa OFFICE a O O OFFICI 0 —— P to SERVICE u 0 U O� UP OfI1Ct (� - COFFEE DRS 1 2 0 O O Z F U 0. pc U 0 W d or PILOTS Q 0 tOUNGf U DOOR HEIGHT 19' [AVE OVERHANG HEIGHT 2• nu V 90'IWOLD ME1At DOOR 36' L Zn 0 NORTH HANGER/OFFICE BLDG, EXHIBIT C GAS PUMPS "' SCALE 1':20 Z 126@ ISO 102' DOORWAY DOOR HEIGHT 21' SOUTH SIDE EAVES OVERHANG 23' Pad P PAN �► P O a a NORTH SIDE EAVES OVERHANG OVER HANGER 23' NORTH SIDE EAVES OVERHANG OVER OFFICE 11' 126' SOUTH HANGER EXHIBIT D SCALE 10:20' EXHIBIT E MINIMUM STANDARDS AND REQUIREMENTS FOR THE CONDUCT OF COMMERCIAL AERONAUTICAL SERVICES AND ACTIVITIES SECTION I GENERAL SECTION 1 GENERAL A. I ntroduction The City of Beaumont, Urban Transportation Department (hereinafter referred to as the City), responsible for the administration of Beaumont Municipal Airport, Jefferson County, Texas (hereinafter referred to as the "Airport"), and in order to foster, encourage, and insure the economic growth and orderly development of aviation and related aeronautical activities at the Airport, has established certain standards and requirements for Commercial Aviation Operators (hereinafter referred to as the "Operator") at the Airport, as herein provided: The following Sections set forth the Minimum Standards and Requirements for a person or persons, partnership, company, trust, or corporation (hereinafter referred to as "Person"), based upon and engaging in one or more Commercial Aeronautical services and activities operations at the Airport. These Minimum Standards and Requirements are not intended to be all-inclusive as the Operator of a commercial venture who is based on the Airport will be subject additionally to applicable federal, state, and local laws, codes and ordinances, and other similar regulatory measures, including the Airport Rules and Regulations pertaining to all such activities. A written agreement, properly executed by the City and the Operator, is a prerequisite to tenancy on the Airport, and both the written agreement and tenancy are prerequisites to the commencement thereon of any of the Commercial Aeronautical services and activities operations herein contained and specified. The contract provisions, however, will be compatible with the Minimum Standards herein contained and will not change or modify the standards and requirements themselves. These Minimum Standards and Requirements may be included in whole, in part, or by reference as part of all leases between the City and any Person desiring to be based on the Airport and engage in any commercial aeronautical services and activities. Information relative to rentals, fees, and charges applicable to the aeronautical services included herein will be made available to the prospective commercial application or during the contract negotiations. These Minimum Standards and Requirements are not retroactive and do not bear on or affect any written agreement, properly executed prior to the date of adoption and approval of these same Minimum Standards and Requirements. These Minimum Standards may be revised as conditions may require. Verify with the City that you have a complete and current document. These Minimum Standards may be supplemented and amended by the City, from time to time, and in such manner and to such extent as is deemed proper, provided that prior to any amendment or supplement to these Minimum Standards, all Operators at the Airport will be given written notice of the proposed amendments and/or supplements and a hearing will be had, not less than ten (10) nor more than fifteen (15) days after the date of said written notice, at which time any Operator may appear, in person or by counsel, and state his objection, if any, to such I-1 proposed amendments and/or supplements; provided further that no such amendments or supplements shall affect any contractual relationship presently existing between the City and operators; provided finally that any lease, contract or agreement, entered into with applicant after the amended or supplemented Minimum Standards are adopted by the City, shall be terminated or cancelled in the event of failure to comply with any modification or amendments to these Minimum Standards, after notice thereof shall have been given. B. Statement of Policy A fair and reasonable opportunity, without unjust discrimination, shall be accorded to all applicants to qualify, and compete in a public bid process, for available airport facilities and the furnishing of selected aeronautical services, subject however to the Minimum Standards and Requirements as established by the City and set forth herein for Commercial Aeronautical Services and activities at the Airport. In all cases where the words "standards" or "requirements" appear, it shall be understood that they are modified by the word "minimum". All Operators will be encouraged to exceed the "minimums". No Operator will be allowed to operate or provide services less than the "minimums". These "minimums" are established herein as a means of governing for the public the quality and level of services that are offered to the public in connection with the conduct of a particular aeronautical activity on the Airport. Another purpose of these standards is to insure, in the public interest, the safe conduct of all aeronautical activities conducted at this Airport. These standards shall also educate and inform prospective operators as to the business environment, planned activities for the future and contractual requirements of the City. Contingent upon its qualifications, its meeting the established Minimum Standards, the execution of a written agreement with the City, and the payment of the prescribed rentals, fees and charges, the Operator shall have the right and privilege of engaging in and conducting the activity or activities selected by it on the Airport as specified by written contract. The granting of such right and privilege, however, shall not be construed in any manner as affording the Operator any exclusive right of use of the premises and facilities and the Airport, other than those premises which may be leased exclusively to it, and then only to the extent provided in a written agreement. The City reserves and retains the right for the use of the Airport by others who may desire to use the same, pursuant to applicable federal, state, and local laws, ordinances, codes, minimum standards, and other regulatory measures pertaining to such use. The City reserves the right to designate the specific Airport areas in which the individual, or a combination of, aeronautical services may be conducted. Such designation shall give consideration to the nature and extent of the operation and the lands and improvements available for such purpose, consistent with the orderly and safe operation of the Airport. C. Definitions Aeronautical Activity - Any activity which involves, makes possible, or is required 1-2 for the operation of aircraft, or which contributes to or is required for the safety of such operations. The following activities, commonly conducted on airports, are aeronautical activities within this definition: charter operations, pilot training, aircraft rental and sightseeing, aerial carrier operations, aircraft sales and services, sale of aviation petroleum products whether or not conducted in conjunction with other included activities, repair and maintenance of aircraft, sale of aircraft parts, and any other activities which because of their direct relationship to the operation of aircraft can appropriately be regarded as an "Aeronautical Activity". The following are examples of what are not considered aeronautical activities: ground transportation (taxis, car rentals, limousines), restaurants, barber shops, auto parking lots. Minimum Standards - The qualifications which may- be established by an airport owner as the minimum requirements to be met as a condition for the right to conduct an aeronautical activity on the airport. Commercial Aviation Operator - A Commercial Aviation Operator is defined as a Person engaging in an activity which involves, makes possible, or is required for the operation of aircraft, or which contributes to, or is required for the safe conduct and utility of such aircraft operations, the purpose of such activity being to secure earnings, income, compensation, or profit, whether or not such objective or objectives are accomplished. A Commercial Aviation Operator may be classified as either a Fixed Base Operator (FBO) or a Specialized Aviation Operator (SAO) . Fixed Base Operator - A Fixed Base Operator (FBO) is further defined as a person, firm, corporation or other recognized form of business organization which provides the minimum general aviation services required at Beaumont Municipal Airport. A Fixed Base Operator will provide the following minimum activities or services: 1 . Aircraft Line Services: a. Fueling, lubricating, and miscellaneous service. b. Ramp parking and tie-down. c. Crew and passenger lounge facilities. d. Public restrooms and telephone. e. Loading, unloading and towing. f. Office space. 2. Primary Flight Instruction and Training. 3. Aircraft Airframe and Engine Repair, and Maintenance and 9yerheal. In addition, the FBO is encouraged to provide any or all of the services listed below which maybe provided separately by a Specialized Aviation Operator, it will be necessary to meet the criterion and accept the requirements as set forth by the City for those activities specifically required of a Fixed Base Operator. 1-3 Specialized Aviation Operator - A Specialized Aviation Operator '(SAO) shall provide one or more of the following activities or services or shall provide one of the following and any of the preceding activities and services not included in the following: 1 . Specialized Aircraft Repair Services (radios, painting, upholstery, propellers, instruments, accessories, etc. ). 2. Specialized Commercial Flying Services. 3. Flight Training. 4. Aircraft Sales and Rental (new and/or used). 5. Aircraft, Airframe, and Engine Maintenance and Repair. 6. Aircraft Rental. 7. Aircraft Charter and Air Taxi Service. The City recognizes the need for hangar, shop and office facilities for Specialized Operators. The City recognizes also that some Operators may not want to offer the full line of services that a Fixed Base Operator must offer. Specialized Operators are encouraged to be tenants of Fixed Base Operators. If suitable facilities cannot be obtained in this manner, the Specialized Operator may construct his own facility in the area designated on the Airport upon land leased from the City. The terms of the lease will be determined and bids, plans, and specifications shall be approved by the City. Standards and Requirements for scheduled and non-scheduled air carrier, air taxi services, and air carrier charter flights, as defined by the Civil Aeronautics Board and the Federal Aviation Administration, or any other activities not specifically provided for in the Minimum Standards, will be subject to negotiation and are not a part of these Minimum Standards. D. Pre-qualification Requirements The prospective Operator shall submit, in written form, to the City at the time of his application, the following information and, thereafter, such additional information as may be requested by the City. 1. Intended Scope of Activities As a prerequisite to the granting of an operating privilege on the Airport, the prospective Operator must submit a detailed description of the scope of the intended operation, and the means and methods to be employed to accomplish the contemplated operating standards and requirements, in order to provide high-quality service to the aviation and general public in the Airport air service area, including, but not limited to, the following: 1-4 ' IP EM a. The name, address and telephone number of the applicant. b. The requested or proposed date for commencement of the activity and the term of conducting the same. C. The services to be offered. d. The amount, size and location of land to be leased. e. The size and position of the building space to be constructed or leased. f. The number of aircrafts to be provided (as applicable). g. The number of persons to be employed (including the names and qualifications of each person) . h. The hours of proposed operation. i. The number of types of insurance coverage to be maintained. 2. Financial Responsibility and Capability The prospective operator must provide a statement, satisfactory to the City in evidence of his financial responsibility, from an area bank or trust company or from such other source that may be acceptable to the City and readily verified through normal banking channels. The prospective Operator must also demonstrate financial capability to initiate operations and for the construction of improvements and appurtenances that may be required commensurate with the concept of the proposed operation, or operations, and shall also indicate his ability to provide working capital to carry on the contemplated operations, once initiated. 3. Experience The prospective Operator shall furnish the City with a statement of his past experience in the specified aviation services selected by him and to be supplied by him on the Airport, together with a statement that he has the ability to perform the selected services. E. Lease and Operations Agreement 1 . Requirement of a Written Agreement Prior to the commencement of operations, the prospective Operator will be required to enter into a written agreement with the City, which agreement will recite the terms and conditions under which he will operate his business on the Airport, including, but not limited to, the term of the agreement; fees and charges; the rights, privileges and obligations of the respective parties; and other relevant covenants. It should be understood, therefore, that neither the conditions therein 1-5 contained nor those set forth in these Minimum Standards and Requirements represent a complete recitation of the provisions to,be included in the written agreement. Such contract provisions, however, will neither change nor modify the Minimum Standards and Requirements, nor be inconsistent therewith. 2. Site Development Standards a. Physical Facilities (1 ) All areas leased from the Airport shall provide for auto parking and all buildings shall provide for an office and restroom facilities. (2) The Operator will be required to maintain his leased area. (3) For construction of any new facilities financed by the Operator not already on the Airport, the Operator will be subject to the standards of development as they are contained in the Airport Master Plan for the Airport. The City will approve the plans and specifications prior to construction, and the notice of proposed construction required by FAR 77 will be submitted to the appropriate FAA office. b. Personnel The Operator shall have in his employ, and on duty during operating hours, trained personnel in such numbers as are required to meet the Minimum Standards and Requirements set forth, in an efficient manner, for each aeronautical service being performed. The Operator shall also provide a responsible person in the office to supervise the operations in the leased area on the Airport and with authorization to represent and act for and on behalf of, the Operator during all business hours. All personnel hereinafter required to hold Federal Aviation Administration certificates and ratings shall maintain such certificates and ratings. C. Maintenance Maintenance of pavement constructed by the City shall be the responsibility of the City. Each Operator shall maintain the pavement constructed by the Operator. The City shall maintain the structure and exterior of buildings owned and/or operated by the City; except the hangar doors and windows, which shall be the responsibility of the Operator. Building maintenance on individually owned facilities shall be borne by the Operator. The maintenance of the interior of buildings leased from the City, utility costs, and each Operator's trash removal shall be his own responsibility. Utility line maintenance outside the 1-6 y Operator's delineated property boundary shall be the City's responsibility. Utility line maintenance inside the Operator's delineated property boundary shall be the responsibility of the Operator. 3. Indemnity and Insurance a. Indemnity. Lessee shall indemnify, defend, and hold harmless City, its officers, agents and employees from any and all liabilities, claims, demands, actions, losses, damages and costs, including all costs of defense thereof, caused by or arising out of, or in any way related to Lessee's use or occupancy of the leased premises or occurring on the leased premises during the term of the lease or any time of occupancy of the premises by inverse condemnation, and including claims, liabilities and actions based upon acts, omissions or negligence of the City, its officers, agents, and employees. Upon demand, Lessee shall, at its own expense, defend City, its officers, agents, and employees against any and all liabilities, claims, demands, actions, losses, damages and costs. b. Insurance Coverage shall be provided and paid for by the FBO in the following amounts with the City of Beaumont, and all other personnel as additional insured. A Certificate of Insurance or a copy of the insurance policies involved will be furnished to the City and 10 days' advance written notice of any change to any policy or cancellation of any policy shall be given to the City. 1 . Aircraft Liability: Bodily Injury (Each Accident) 100,000 each person 300,000 for more than one person Passenger Liability 75,000 each passenger, each accident Property Damage 100,000 each accident 2. Comprehensive Public Liability and Property Damage Including Contractual Liability: Bodily Injury (Each Accident) $300,000 1-7 Property Damage 100,000 each accident Broad form liability endorsement form G222 shall be included 3. Hangar Keeper's Liability: 250,000 each accident 4. Products' and Completed Operations 300,000 Bodily Injury, 100,000 Property Damage 5. Student and Renter's Liability: 25,000 per accident excluding passengers 6. Motor Vehicle Liability: Bodily Injury (Each Accident) 250,000 each person 500,000 per occurrence Property Damage 100,000 each accident 7. Workmen's Compensation and Employer's Liability: Up to Statutory Limit 4. Motor Vehicles on the Airport The Operator will control the transportation of pilots and passengers of transient aircraft (using Operator's facilities and services and in the conduct of the Operator's business) to and from the Operator's office to the Operator's aircraft apron tie-down areas. If the Operator performs this service with motor vehicles driven on the Airport runway-taxiway system proper, he shall do so only in strict accordance with Airport Rules and Regulations, applicable federal, state and municipal laws, ordinances, codes, or other similar regulatory measures now in existence or as may be hereinafter modified or amended. The Operator shall procure and maintain for any motor vehicles which are operated on the Airport proper, Motor Vehicle Liability Insurance in the minimum limits specified by Texas law. 5. General Lease Clauses Operators shall be required to contribute to the operation of the 1-8 Airport. No operator may perform or provide any aeronautical activity or service upon this Airport without a fully executed lease agreement. All lease agreements hereafter executed shall contain the following assurances verbatim: a. Non-Discrimination The (grantee, licensee, lessee, permittee, etc., as appropriate) for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree (in the case of deeds and leases add "as a covenant running with the land") to operate the premises leased for the benefit of the public, and: 1 . No person on the grounds of race, color, or national origin shall be excluded from participation in, 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, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination; 3. That the (grantee, licensee, lessee, permittee, etc. ) shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally assisted programs of the Department of Transportation--Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended; 4. That said service will be furnished on a fair, equal, and not unjustly discriminatory prices for each unit or service will be charged; provided, that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. b. Lessee, its tenants, and sublessee shall have the right to and shall conduct a first-class commercial aviation service adequate at all times to meet the demands for such service on the Airport. Lessee, its tenants, and sublessee agree to conduct said business in a proper and courteous manner and to furnish good, prompt and efficient commercial aeronautical services at all times. 1-9 C. Aircraft Service by Owner or Operator of Aircraft It is clearly understood and agreed by the Lessee that no right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the Airport from performing any services on its own aircraft with its own regular employees (including, but not limited to, maintenance and repair) that it may choose to perform. d. Non-Exclusive Rights It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right. e. Subordination This lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States, relative to the operation or maintenance of the Airport, the, execution of which has been or may be required as a condition precedent to the expenditures of federal funds for the development of the Airport. This subordination includes, but is not limited to, the right of the City, during times of war or national emergency, to lease the landing area, or any part thereof, to the United States Government for military or naval use, and if any such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the lease to the Government shall be suspended. f. Airport Obstructions Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstructions, together with the right to prevent Lessee from erecting or permitting to be erected, any building or other structure on or adjacent to the airport which, in the opinion of the Lessor, would limit the usefulness of the Airport or constitute a hazard to aircraft. g. City's Rights 1 . Lessor reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the landing area of the Airport and all publicly-owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard. 2. In the event of breach of any of the above nondiscrimination covenants, the City of Beaumont, shall have the right to terminate the (license, lease, permit, 1-10 etc. ) and to re-enter and repossess said land and the facilities thereon, and hold the same as if said (license, lease, permit, etc. ) had never been made or issued. 3. The City reserves the right to further develop or improve the landing area of the Airport as it sees fit, and without unreasonable interference or hindrance. If the physical development of the Airport requires the relocation of Operator-owned facilities, the City agrees to provide a comparable location without any unreasonable interruption to the Operator's activities, and agrees to relocate all Operator-owned buildings or provide similar facilities for the Operator at no cost to the Operator. h. Compliance with Laws, etc. The Operator shall at all times comply with the Airport Rules and Regulations, federal, state, and municipal laws, ordinances, codes, and other regulatory measures now in existence or, as may be hereafter modified or amended, applicable to the specific type of operation contemplated by him. The Operator shall procure and maintain during the term of the agreement all licenses, permits, and other similar authorizations required for the conduct of his business operations. i. Right of Entry The City may enter upon the premises leased to the Operator at any time, and for any purpose necessary, incidental to, or connected with, the performance of the Operator's obligations under the agreement or in the exercise of their function as City. j. No-Sham Affidavit All terms and conditions with respect to this lease are expressly contained herein, and the Operator agrees that no representative or agent of the City has made any representation or promise with respect to this lease not expressly contained herein. k. Termination Upon the expiration or other termination of any agreement, the Operator's rights to the premises, facilities, other rights, licensed services and privileges granted in the agreement shall cease, and the Operator shall, upon such expiration or termination, immediately and peacefully surrender such. 1 . Assignment All covenants, stipulations and provisions in the 1-11 agreement to be entered into shall extend to ,and bind the legal representative, successors and assigns. 6. Subleases No Operator shall be afforded the right to sublease or assign an agreement or any portion thereof, between himself and the City except upon the express written permission of the City. Regarding this permission, the overriding concern of the City shall be that the aeronautical service activities performed by the Operator, seeking the permission to assign his agreement, will not conceivably be interrupted, abrogated, compromised or diminished in order that good quality services be maintained in the public interest. 1-12 SECTION II FIXED BASE OPERATOR SECTION 11 FIXED BASE OPERATOR A. Fixed Base Operator (FBO) shall provide the following minimum activities or services: 1 . Aircraft Line Services: a. Fueling, lubricating, and miscellaneous service. b. Public lounge facilities. C. Public restrooms and telephone. d. Loading, unloading and towing. e. Office space. 2. Primary Flight Instruction and Training. 3. Aircraft Airframe and Engine Repair, and Maintenance. B. Fixed Base Operator (FBO) may provide the following activities & services: 1 . New and used aircraft sales and rental. 2. Aircraft charter. 3. T-hangar storage. 4. Ramp parking and tie-down. C. Fixed Base Operator (FBO) shall meet the following Minimum Standards and Requirements: 1 . Aircraft Line Services activities shall provide: a. Fueling and lubricating oil sales and service (1 ) The Operator shall demonstrate, to the satisfaction of the City, that satisfactory arrangements or agreements have been made, with a reputable aviation gasoline and lubricant distributor who will provide the Operator with an enforceable agreement, to purchase fuel and oil in such quantities as are necessary to meet the requirements set forth herein. Aviation fuels and oils delivered to the Operator under the purview of the minimum rental rates established as a part hereof. Fueling and lubricating sale, and into-plane delivery of aviation fuels, lubricants and other related petroleum II-1 products shall be available to the public from, 7:00 a.m. to 7:00 p.m., or thirty minutes after sunset 7 `days a week. FBO shall maintain an adequate inventory of at least one (1 ) brand and two (2) generally accepted grades of aviation fuel, engine oil and lubricants. FBO shall provide a primary mobile fuel dispensing unit, with reliable metering devices subject to an independent inspection of the Department of Weights and Measures, capable of servicing, in an efficient and safe manner, all types of general aviation aircraft. FBO shall have two metered filter-equipped dispensers, fixed or mobile, for dispensing two grades of fuel from storage tanks having a minimum capacity of 6,000 gallons each. Mobile dispensing trucks shall have a total of 300 gallons capacity for each grade of fuel. Separate dispensing pumps for each grade of fuel are required. In conducting refueling operations, FBO shall install and use adequate electrical grounding facilities at fueling locations to eliminate the hazards of static electricity and shall provide approved types of fire extinguishers or other equipment commensurate with the hazard involved with fueling, defueling, and servicing aircraft. All FBO fueling services and systems shall be subject to inspection for fire and other hazards by the Airport Superintendent and the appropriate state and local fire agency. FBO shall meet all applicable fire codes; federal, state, and local laws, statutes, ordinances, rules, and regulations pertaining to fire safety. All fuel stationary storage tanks will be installed underground. Only non-contaminated fuel shall be pumped into the aircraft serviced. Fuel delivered shall be bright, clean, pure and free and microscopic organisms, water or other contaminants. Quality control of the fuel is the responsibility of the FBO. The Operator shall maintain current fuel reports on file and available for auditing at any time by the City of the Federal Aviation Administration. Fueling service by the FBO shall be in full compliance with good safety practices, including proper fire protection and electrical grounding of aircraft, such as cleaning of the interior and exterior of aircraft. FBO shall provide a minimum of 500 square feet of lobby/customer waiting area. (2) FBO servicing of aircraft, such as cleaning of the interior and exterior of aircraft: FBO shall provide proper equipment for repairing and inflating aircraft tires, servicing oleo struts, changing engine oil, washing aircraft and aircraft windows, and II-2 recharging or energizing discharged aircraft batteries and starters. (3) FBO shall provide for the adequate and sanitary handling and disposal, away from the Airport, of his trash, waste and other materials, including but not limited to used oil, solvents, and other waste. The piling or storage of crates, boxes, barrels, and other containers will not be permitted within the leased premises. 3. Aircraft Airframe and Engine Repair, and Maintenance An aircraft engine and accessory maintenance and repair operator is a person, firm or corporation engaged in a business capable of providing one or a combination of Federal Aviation Administration approved airframe, power plant and accessory repair services on general aviation aircraft. Activities which shall be provided include: a. Sufficient hangar space to house any aircraft upon which airframe or engine repairs are being performed. b. Suitable inside and outside storage space for aircraft before and after repair and maintenance have been accomplished. C. Adequate shop space to house the equipment and adequate equipment and machine tools, jacks, lifts, and testing equipment to perform repairs as required for FAA certification and repair of parts not needing replacement on general aviation aircraft. d. The minimum stock of readily expendable spare parts, or adequate arrangements for securing spare parts required for the type of aircraft and models sold. e. At least one FAA certified airframe and power plant mechanic available during eight hours of the day, five days per week. f. Parts and manufacturer's repair or shop manuals shall be on hand for each type aircraft maintained. 4. New and Used Aircraft Sales and Rental activity is not required as a Fixed Base Operator minimum service; however, if provided, the Fixed Base Operator shall provide: a. Suitable office space for consummating sales and rentals and the keeping of the proper records in connection therewith. b. Hangar storage space for at least one aircraft to be used for sales or rentals. C. For rental, at least one airworthy aircraft properly maintained and certificated. II-3 and certificated. d. For sales activity of a new aircraft, a sales or distributorship franchise from a recognized aircraft manufacturer of new aircraft and at least one demonstrator model of such aircraft. e. Adequate facilities for servicing and repairing the aircraft. f. A certified pilot capable of demonstrating new aircraft for sale or for checking out other pilots in rental aircraft. He shall be available for eight hours during the working day. g. Current up-to-date specifications and price lists for types and models of new aircraft sold. h. Proper checklists and operating manuals on all aircraft rented and aircraft sold. 5. Aircraft Charter activity, although not required of the Fixed Base Operator, if provided, shall consist of providing: a. Adequate table, desk or counter for checking in passengers, handling fare collection, and handling of luggage as well as crew and passenger lounge facilities. b. Suitable, properly certificated aircraft with properly certificated and qualified operating crew. C. The FBO shall comply with all Federal, State and Local laws, ordinances and regulations which relate to the provision of this activity. 6. T-Hangar Storage is not required, however, if provided; a. The FBO will comply with all relevant city codes and procedures governing construction. b. Hangar floors will be of asphalt or concrete, with City approval of material type and quantity. C. An amended agreement between the City and the FBO will be required prior to the commencement of construction should the FBO desire to construct hangar facilities. 7. Ramp Parking and .Tie-Down is presently available, however, if the FBO desires to construct additional space, City approval of construction type and location must be obtained. D. Lease Terms and Conditions shall be as follows: 1 . It is the intention of the City to write a lease requiring the Fixed Base Operator to provide the preceding services. It is also the intention II-4 of the City that all leases be "net" leases. That is, that total costs for amortizing the investment and maintenance costs be borne by the FBO. For the purpose of maintaining and operating the Airport and providing the public facilities thereon, certain charges are made. The following lease terms and conditions outline this policy: a. If the City constructs and finances the improvement, amortization is based on the existing rate of financing cost plus 1% for 20 years. b. Land and existing facilities rent shall be re-evaluated and changed every five years. The current undeveloped land rent is 3.04 per square foot per year. C. The rates or charges for aircraft parking, tie-down and storage made by operators shall be determined by the FBO, subject to the prior written approval of the City first obtained and subject, further, to the requirement that all such rates or charges shall be reasonable and be equally and fairly applied to all users of the services. All rates and charges shall be filed with the City. d. The Operator shall pay to the City the following fees per gallon of fuel delivered into aircraft: 1 . $.02 per gallon for the first 8,000 gallons each month. 2. $.03 per gallon for second 8,000 gallons each month. 3. $.05 per gallon for third 8,000 gallons each month. e. All payments, made by the FBO to the City shall be paid on or before the tenth of the month following the month in which the costs are incurred. f. The Operator shall at its own expense, pay all taxes and assessments against any building or any other structures placed on the premises and owned by them. g. All utilities are to be paid directly by the Operator. h. All building maintenance on City owned and operated facilities shall be borne by the City. Maintenance of the entire leased area including interior maintenance of City owned facilities leased by the FBO shall be that of the FBO. Interior maintenance shall include windows and hangar doors. i. Maintenance on individually owned facilities and pavements shall be borne by the owner or lessee throughout the lease period. II-5 j. All sublease agreements must receive prior written approval, of the City. k. FBO shall be required to carry public liability insurance for his sublessee or provide a certificate of insurance which shows the lessee and the City as named insured, in amounts commensurate with sublessee's individual activities and services. I. No oils, greases, detergents, or other insoluble substance shall be placed in the sewage or drainage systems or on the ground. All local, state, and federal laws, regulations, and ordinances governing the disposal of waste materials shall be complied with by the FBO. M. These Minimum Standards shall be an integral part of the lease agreement and may be included by reference. n. FBO's, in their operation and use of the Airport, will not, on the grounds of race, color, sex or national origin, discriminate, or permit discrimination against any person or group of persons in any manner prohibited by the Federal Aviation Regulations. (FAR Part 15). o. Since many of the facilities required by these standards are in existence at the Airport and could be leased by the FBO, the term of the lease negotiated will depend on the investment made by the FBO. For example, if the FBO leases all the facilities required from the City the lease term shall not be longer than ten years. If, however, the FBO constructs the needed facilities the lease term will be accordingly longer to allow for amortization of the FBO's investment. The lease term shall in no case exceed twenty years. 2. Insurance Coverage shall be provided and paid for by the FBO in the following amounts with the City of Beaumont, and all other personnel as additional insured. A Certificate of Insurance or a copy of the insurance policies involved will be furnished to the City and 10 days' advance written notice of any change to any policy or cancellation of any policy shall be given to the City. a. Aircraft Liability: Bodily Injury (Each Accident) 100,000 each person 300,000 for more than one person Passenger Liability . 75,000 each passenger, each accident 11-6 Property Damage 100,000 each accident b. Comprehensive Public Liability and Property Damage Including Contractual Liability: Bodily Injury (Each Accident) 300,000 Property Damage 100,000 each accident Broad form liability endorsement form G222 shall be included. C. Hangar Keeper's Liability: 250,000 each accident d. Products' and Completed Operations 300,000 each accident, 100,000 Property Damage e. Student and accident excluding passengers f. Motor Vehicle Liability: Bodily Injury (Each Accident) 250,000 each person 500,000 each occurrence Property Damage 100,000 each accident g. Workmen's Compensation and Employer's Liability: Up to Statutory Limit II-7 SECTION 111 SPECIALIZED AVIATION OPERATOR SECTION III SPECIALIZED AVIATION OPERATOR Specialized Aviation Operators shall consist of one or more of the following services and activities and comply with the Minimum Standards described in this Section. 1 . Specialized Aircraft Repair Services (Radios. Painting, Upholstery, Propellers, Instruments, Accessories, etc. ) a. Statement of Concept A specialized aircraft repair services operator is a person or persons, firm or corporation engaged in a business capable of providing a shop, or a combination of Federal Aviation Administration certificated shops for the repair of aircraft radios, propellers, instruments and accessories for general aviation aircraft. This category shall include the sale of new and/or used aircraft radios, propellers, instruments and accessories, but such is not an exclusive right. b. Minimum Standards ( 1 ) The Operator shall lease from the City an area of not less than 5,000 square feet of ground space on which shall be erected a building providing at least 1,200 square feet of floor space to hangar at least one ( 1 ) aircraft, to house all equipment, and to provide an office, shop, restrooms, customer lounge and telephone facilities for customer use. Hard surfaced, on-site auto parking space with sufficient accommodations for automobiles, and a paved aircraft apron, all within the leased area and sufficient to accommodate the Operator's activities and operations shall be provided. The avionics portion of the services offered must maintain current the qualifications of Class I and Class II FAA designated repair stations. (2) The Operator shall obtain and maintain, as a minimum, the repair station certificates as required by the Federal Aviation Administration, which are applicable to the operation or operations contemplated. The Operator may furnish one or, if desired, any combination of the services mentioned above. (3) The Operator shall have his premises open and services available eight (8) hours daily, five (5) days each week, one of which may be on Saturday or Sunday. (4) The Operator shall have in his employ, and on duty during the required operating hours, trained personnel in such numbers as are required to meet the minimum standards set forth in this category in an efficient manner, but never less than one (1 ) person currently certificated as a Federal Aviation Administration-rated radio, instrument or propeller repairman, and one (1 ) other employee not necessarily rated. III-1 2. Specialized Commercial Flying Services a. Statement of Concept A specialized commercial flying services operator is a person or persons, firm or corporation engaged in air transportation for hire for the purpose of providing the use of aircraft for the activities listed below: (1 ) Nonstop sightseeing flights that begin and end at the same airport within a 25-mile radius of the airport. (2) Crop-dusting, seeding, spraying, bird chasing, fish spotting, etc. (3) Banner towing and aerial advertising. (4) Aerial photography or survey. (5) Fire fighting. (6) Power line or pipeline patrol. (7) Any other operations specifically excluded from Part 135 of the Federal Aviation Regulations. b. Minimum Standards (1 ) The Operator shall lease adequate space and/or land area to meet the requirements of the operation at the Airport subject to the approval of the City. Banner towing is not required to lease space but may if desired. In.the case of crop-dusting or aerial application, the operator shall demonstrate that he will make suitable arrangements and have such space available in his leased area for safe loading and unloading and storage and containment of noxious chemical materials. In case of crop-dusting, aerial application or other commercial use of chemicals, the Operator shall provide a paved area having a single drainage outlet for all aircraft loading and unloading. This area must be built and operated in full compliance with the Environmental Protection Agency regulations governing such activities. The Operator shall also provide for the safe storage and containment of all chemical materials. Such facilities will be in a location on the Airport which will provide the greatest safeguard to the public. Aircraft washing and spray tank flushing must be accomplished in accordance with local, State, and Federal regulations. (2) The Operator shall provide and have based on his leasehold, III-2 a 9 either owned or under written lease to the Operator, not less than one ( 1 ) airworthy aircraft, suitably equipped for, and meeting all the requirements of the Federal Aviation Administration and applicable regulations of the State of Texas with respect to the type of operations to be performed. In the case of crop-dusting or aerial application, the Operator shall provide tank trucks for the handling of liquid spray and mixing liquids. The Operator shall also provide adequate ground facilities and equipment for the safe containment, storage, handling and safe loading of all noxious chemicals and materials. (3) The Operator must provide, by means of an office or a telephone, a point of contact for the public desiring to utilize Operator's services. (4) The Operator shall have in his employ, and on duty during the required operating hours, trained personnel in such numbers as may be required to meet the minimum standards herein set forth in an efficient manner, but never less than one (1 ) person holding a current Federal Aviation Administration commercial certificate, properly rated for the aircraft to be used and the type of operation to be performed, and one (1 ) other person to assist in the loading, servicing and handling of aircraft. (5) Itinerant Specialized Commercial Flying Services Operator desiring to utilize the airport for a period less than 30 days will operate in accordance with City Policy. Minimum requirements will include proof of insurance of the proper type and in the amounts called for at the end of these standards and such other fees as may be negotiated between the City and the Operator. 3. Flight Training a. Statement of Concept A flight training operator is a person or persons, firm, or corporation engaged in instructing pilots in dual and solo flight training, in fixed and/or rotary wing aircraft, in land or sea aircraft, and provides such related ground school instruction as is necessary preparatory to taking a written examination and flight check ride for the category or categories of pilots' licenses and ratings involved. Flight training is a Fixed Base Operator requirement and any operator wishing to provide only this service must meet the following standards: b. Minimum Standards (1 ) - The Operator shall lease from the City an area of not less than one-eighth acre of ground space, on which shall be erected a building providing at lease 1,500 square feet of floor space for office, classroom, restrooms, and telephone facilities for III-3 customer use. Hard-surfaced auto parking space and a paved aircraft apron all within the leased area sufficient to accommodate the Operator's activities and operations shall also be provided. (2) The Operator shall have available for use in flight training, either owned or under written lease to Operator, a sufficient number of aircraft properly certificated to handle the proposed scope of his student operation, but not less than one (1 ) properly certificated aircraft. (3) The Operator shall have his premises open and services available eight (8) hours daily, five (5) days a week. (4) The flight training operator shall have on a full-time basis currently certificated pilots and instructors in sufficient numbers (never less than one) to meet the demands of the number of students expected to be engaged in such flight training. 4. Aircraft Sales (New and/or Used) a. Statement of Concept An aircraft sales operator is a person engaged in the sale of new and/or used aircraft through franchises, or licensed dealership or distributorship (either on a retail or wholesale basis) of an aircraft manufacturer or otherwise; and provides such repair, services, and parts as necessary to meet any guarantee or warranty on new and/or used aircraft sold by him. b. Minimum Standards (1 ) If provided as the only service provided by an Operator, the Operator shall lease from the City an area of not less than one- eighth acre of ground space to provide for outside display and storage of aircraft on which shall be erected a building providing at lease 1,000 square feet of floor space for office, restrooms, customer lounge and telephone facilities for customer use. Hard-surfaced auto parking space and a paved aircraft apron all within the leased area and sufficient to accommodate the Operator's activities and operations shall also be provided. (2) The Operator shall provide necessary and satisfactory arrangements for the repair and servicing of aircraft, but only for the duration of any sales guarantee or warranty period. Servicing facilities may be provided through written agreement with a repair shop operation at the Airport. The Operator shall provide an adequate inventory of spare parts for the type of new aircraft for which sales privileges are granted. The Operator who is engaged in the business of selling new aircraft shall have available at least one fully-assembled and certificated- III-4 airworthy demonstrator aircraft for each category or class of aircraft sold. (3) The Operator shall have his premises open and services available eight (8) hours daily, five (5) days a week. (4) The Operator shall have in his employ (and on duty during the required operating hours) trained personnel in such numbers as are required to meet the requirements in an efficient manner, but never less than one (1 ) person having a current commercial pilot certificate with single-engine rating and instructor rating, or be so rated himself. 5. Aircraft Airframe and Engine Maintenance and Repair a. Statement of Concept An aircraft and airframe engine maintenance and repair operator is a person or persons, firm or corporation providing one (or a combination of) airframe and power plant repair services, with at least one (1 ) person currently certified by the Federal Aviation Administration with ratings appropriate to the work being performed. This category of aeronautical services shall also include the sale of aircraft parts and accessories, but such is not an exclusive right. This service is a Fixed Base Operator requirement and any operator wishing to provide only this service must meet the following standards: b. Minimum Standards ( 1 ) The Operator shall lease from the City an area of not less than one-half (1/2) acre of ground space on which shall be erected a building providing at least 2,400 square feet of floor space for airframe and power plant repair services including a segregated painting area (meeting all local and State industrial code requirements) and space for office, restrooms, customer lounge and telephone facilities for customer use. Hard-surfaced, on- site auto parking space and a paved aircraft apron all within the leased area sufficient to accommodate the Operator's activities and operations shall also be provided. (2) The Operator shall provide sufficient equipment, supplies, and availability of parts equivalent to that required for certification as a Federal Aviation Administration-approved repair station. (3) The Operator shall have his premises open and services available eight (8) hours daily, five (5) days a week. (4) The Operator shall have in his employ (and on duty during the required operating hours) trained personnel in such numbers as are required to meet the minimum standards and requirements set forth in an efficient manner, but never less than one (1 ) III-5 person currently certified by the Federal Aviation Administration with ratings appropriate to the work being performed and who holds an airframe, power plant, or an aircraft inspector rating. 6. Aircraft Rental a. Statement of Concept An aircraft rental operator is a person or persons, firm, or corporation engaged in the rental of aircraft to the public. b. Minimum Standards (1 ) If applicable, the Operator shall lease from the City an area of not less than one-fourth ( 1/4) acre of ground space on which shall be erected a building providing at least 2,000 square feet of floor space for aircraft storage, office, restrooms, customer lounge and telephone facilities for customer use. Hard- surfaced, on-site auto parking space and a paved aircraft apron all within the leased area and sufficient to accommodate the Operator's activities and operations shall also be provided. (2) The Operator shall offer for hire certified and currently airworthy aircraft commensurate with the scope of this operation, and shall have at least one current commercial pilot with the appropriate ratings for the leasing of aircraft. The aircraft rental operator may, at his option, provide a pilot for an aircraft check ride. The operator shall, in a proposal, specify the minimum number of aircraft, and types thereof, that he will maintain and have available for lease and/or rental. (3) The Operator shall have his premises open and services available eight (8) hours daily, five (5) days a week. (4) The Operator shall have in his employ (and on duty during the required operating hours) trained personnel in such numbers as are required to meet the minimum standards set forth in an efficient manner, but never less than one (1) person currently certified by the Federal Aviation Administration with ratings appropriate to the work being performed. 7. Aircraft Charter and Air Taxi Service a. Statement of Concept An aircraft charter (Commercial Operator) and an air taxi operator is a person or persons, firm or corporation engaged in the business of providing air transportation (person or property) to the public for hire, either on a charter basis or as an air taxi operator, as defined in the Federal Aviation Act of 1958, or as said Act may be supplemented or amended from time to time. 111-6 b. Minimum Standards (1 ) If applicable, the Operator shall lease from the City an area of not less than one-half (1/2) acre of ground space on which shall be erected a building providing at least 2,000 square feet of floor space for aircraft storage and space for office, restrooms, customer lounge and telephone facilities for customer use. Hard-surfaced, on-site auto parking space and a paved aircraft apron all within the lease area and sufficient to accommodate the Operator's activities and operations shall also be provided. (2) An Operator shall have and maintain during the term of the tenancy at the Airport, an Air Taxi license and shall operate in conformance with all appropriate Federal Aviation Regulations. (3) The Operator shall provide not less than one (1 ) single-engine (four-place) aircraft equipped for and capable of use under instrument conditions, either owned or under written lease to Operator, all of which must meet the requirements of the Federal Aviation Administration Air Taxi Commercial Operator Certificate held by the Operator. (4) An Operator shall demonstrate that he: (a) Will hold out for hire, to provide aircraft charter service, as defined in Part.135 of the Federal Aviation Regulations as amended; or (b) Is an Air Taxi Operator subject to Part 135 of the Federal Aviation Regulations as amended. (5) The Operator shall meet the requirements of Part 135 of the Federal Aviation Regulations. (6) The Operator shall provide at least one FAA certified commercial pilot rated for air taxi service. (7) The Operator shall have his premises open and services available eight (8) hours daily, five (5) days per week; and shall provide on-call service during hours other than the aforementioned. (8) The Operator shall have in his employ and on duty during the required operating hours, trained personnel in such numbers as are required to meet the minimum standards set forth in this category in an efficient manner, but never less than one (1 ) Federal Aviation Administration currently certificated commercial pilot and otherwise appropriately rated to permit the flight activity offered by the Operator. The Operator shall have available sufficient qualified operating crews or satisfactory III-7 number of personnel for checking in passengers, handling of luggage, ticketing, and for furnishing or arranging for suitable ground transportation. The prospective Operator shall provide reasonable assurance of a continued availability of qualified operating crews and approved aircraft within a reasonable or specified maximum notice period. C. Air Taxi Companies Not Based on Beaumont Municipal Airport Non-scheduled air carrier companies, not based on Beaumont Municipal Airport, but who are providing service to and from the Airport, are subject to these minimum standards and requirements. 8. Aircraft Storage a. Statement of Concept An aircraft storage operation is a business operated by a person, firm or corporation engaged in the rental of convention and/or T-type hangars and tie-down areas to the general flying public. Aircraft storage is a Fixed Base Operator requirement. Any operator wishing to provide this service only must meet the following standards. b. Specific Standards of Operation (1 ) If applicable, the Operator who is to provide a conventional hangar and tie-down storage facilities or T-type hangars shall be in accordance with design and construction standards required and established by the Airport for the facility or activity involved. (2) If applicable, conventional hangars shall be of a size to be determined. However, as a minimum the operator must lease an area of not less than one-half (1/2) acre of ground space on which he shall construct a building-hangar(s) of at least 3,600 square feet, which must be used for aircraft storage. T- hangars shall be of such a size and number as determined by the City. All construction shall be in accordance with building code requirements. (3) The Operator shall demonstrate to the satisfaction of the City that he either presently owns the minimum equipment necessary to meet the requirements, or is financially able to and will purchase such equipment. The basic equipment for this type of operation is as follows: (a) Starting equipment; (b) Fire extinguishers; and (c) Towing equipment. I11-8 19. Lease Terms and Conditions shall be as follows: a. Land and existing facilities rent shall be re-evaluated and changed every five years. The current undeveloped land rent is 3.04 per square foot per year. b. The rates or charges for aircraft parking, tie-down and storage made by Operators shall be determined by the FBO, subject to the prior written approval of the City first obtained and subject, further, to the requirement that all such rates or charges shall be reasonable and be equally and fairly applied to all users of the services. All rates and charges shall be filed with the City. C. The Operator shall pay to the City the following fees per gallon of fuel delivered into aircraft: 1 . $.02 per gallon for first 8,000 gallons each month. 2. $.03 per gallon for second 8,000 gallons each month. 3. $.05 per gallon for third 8,000 gallons each month. d. All payment, made by the FBO to the City shall be paid on or before the tenth of the month following the month in which the costs are incurred. e. The Operator shall at its own expense, pay all taxes and assessments against any building or any other structures placed on the premises and owned by them f. All utilities are to be paid directly by the Operator. g. All building maintenance on City owned and operated facilities shall be borne by the City. Building maintenance on individually owned facilities shall be borne by the owner of lease. h. Maintenance of the entire leased area including interior maintenance of City owned facilities leased by the FBO shalt be that of the FBO. Interior maintenance shall include windows and hangar doors. FBO shall maintain all pavements constructed by him throughout the lease period. i. All sublease agreements must receive prior written approval of the City. j. FBO shall be required to carry public liability insurance for his sublessee or provide a certificate of insurance which shows the lessee and the City as named insured, in amounts commensurate with sublessee's individual activities and services. k. No oils, greases, detergents, or other insoluble substance shall be placed in the sewage or drainage systems or on the ground. All local, 111-9 state, and federal laws, regulations, and ordinances governing the disposal of waste materials shall be complied with by the,FBO, I. These Minimum Standards shall be an integral part of the lease agreement and may be included by reference. M. FBO's in their operation and use of the Airport, will not, on the grounds of race, color, sex or national origin, discriminate, or permit discrimination against any person or group of persons in any manner prohibited by the Federal Aviation Regulations (FAR Part 15) . 10. Insurance Coverage - The below listed insurance types and amounts apply to a full service fixed base operation. Specialized operators will be required to carry the same amounts but only the types of insurance which are relevant to the activities they perform at the airport. The insurance shall be provided and paid for by the FBO with the City of Beaumont, and all other personnel as additional insured. A Certificate of Insurance or a copy of the insurance policies involved will be furnished to the City and 10 days' advance written notice of any change to any policy or cancellation of any policy shall be given to the City. a. Aircraft Liability: Bodily Injury (Each Accident 100,000 each person 300,000 for more than one person Passenger Liability 75,000 each passenger, each accident Property Damage 100,000 each accident b. Comprehensive Public Liability and Property Damage including Contractual Liability: Bodily Injury (Each Accident) 300,000 Property Damage 100,000 each accident Broad form liability endorsement form G222 shall be included. C. Hangar Keeper's Liability: 250,000 each accident 111-10 d. Products' and Completed Operations: 300,000 each accident e. Student and Renter's Liability: 25,000 per accident excluding passengers f. Motor Vehicle Liability: Bodily Iniury (Each Accident) 250,000 each person 500,000 per occurrence Property Damage 100,000 each accident g. Workmen's Compensation and Employer's Liability: Up to Statutory Limit 11 . In the event an Operator desires to provide more than one service provided for in these standards the space requirements of his facilities shall be negotiable but will not be less than the largest space requirement of any single activity. Specialized operators desiring to provide a combination of activities may be required to meet the requirements applicable to full service fixed base operators. III-11 EXHIBIT F CITY OF BEAUMONT MINORITY BUSINESS UTILIZATION COMMITMENT PROFESSIONAL SERVICES The City of Beaumont has adopted a plan to assure minority involvement in City agreements for professional services. It is the goal of the City of Beaumont to award at least twenty percent (20%) of all professional services agreements (over $25,000 per agreement) to qualified local minority business enterprises each year. It is the ultimate goal of the City to have its letting of professional service agreements reflect the demographic make-up of the City. The term "minority business" means a business in which (a) at least fifty-one percent (51%) is owned by minority members or , in the case of a corporation, at least fifty-one percent (51%) of the stock is owned by minority members; and (b) the management and daily business operations are controlled by one or more such individuals. For the purposes of the preceding sentence, minority group members means those individuals who are citizens of the United States (or lawfully admitted permanent residents) who are Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, Asian- Indian Americans, women, or handicapped individuals. The local area includes Jefferson, Orange, and Hardin Counties in Texas. Formal definitions of the foregoing may be obtained in the Minority Business Enterprise Program Policy Manual and may be reviewed in the City Clerk's office located in Room 180 in City Hall. In order to obtain our goal, the City of Beaumont will use the following priorities. 1. The City of Beaumont will take every step to use a qualified minority business for professional services when available. 2. If a minority business cannot be utilized for professional services then a majority business who subcontracts with a minority firm for a percentage of the contract will be given priority. For the purpose of improving the chance of entrepreneurship of minority persons, the City of Beaumont will allow a minority person to be employed by a non-minority and still be utilized as a minority professional service. All rights of subcontracting will be observed between such a union as long as the following regulations are observed. (a) A bona fide agreement is drawn up and signed, subcontracting a portion of the work to the MBE. (b) The percentage amount and dollar value is presented before the contract is awarded. (c) The most feasible proposer agrees to provide, within six days of notification by the City that it is the most feasible proposer, a list of specific minority businesses it anticipates utilizing, the purpose 1 for which each minority business enterprise will be utilized, and the dollar amount to be expended for each minority business enterprise. The City will request information from the next feasible proposer. (d) If awarded a contract, the proposer further agrees to furnish a report listing minority business utilization and the dollar amount expended for each service or subcontract upon request by the City of Beaumont. (e) If it appears during the course of the project that less than the agreed MBE percentage will be expended to minority businesses, the agreement may be suspended, terminated, or the City may exercise any other remedies which it may have as a result of breach of the agreement. This provision shall not apply, however, provided the proposer can demonstrate to the City's satisfaction that; (1) the expenditure shortfall is not' the fault of the proposer, or (2) the proposer will make up the shortfall during the balance of the agreement period. 3. If a minority business firm cannot be utilized and the majority proposer cannot subcontract with a minority firm, a majority firm having an Affirmative Action Plan and furnishing such plan to the City will be given next priority. 4. If the steps above do not result in any minority participation or use of a firm with an Affirmative Action Plan, the City Manager may approve the use of a majority business which will provide an Affirmative Action Plan within six months after agreement execution or provide a development plan to meet the City's goals. 5. The City will institute a program to certify minority businesses who meet the criteria of this policy. The program will verify the minority status of the proposers and subcontractor selected under the policy and will assist new minority businesses in obtaining certification. The City Manager of the City of Beaumont (and/or his designee) will be responsible for administering these policies. A list of local minority business enterprises will be maintained at the office of the City Manager and the City Clerk and shall be available to all persons desiring such information. This list shall not be considered the sole source of identification of potential minority business enterprises. Where legal or ethical considerations prohibit specific dollar amounts to be provided with proposals, proposals shall only be required to indicate the anticipated MBE percentage when the anticipated agreement amount exceeds $25,000. SHould the final agreement amount exceed $25,000, all MBE requirements shall be met. 2 MINORITY BUSINESS UTILIZATION COMMITMENT I. DISCRIMINATION PROHIBITED Proposer, in the execution, performance or attempted performance of this agreement shall not discriminate against any person or persons because of sex, race, religion, color, or national origin; and proposer hereby covenants and agrees that it has fully complied with the provision of the .Minority Business Enterprises Policy of the City of Beaumont and that no employees or employee-applicant has been discriminated against by Proposer. The Proposer must be an equal opportunity employer. II.MINORITY BUSINESS ENTERPRISES The undersigned agrees to comply with priority number of the Minority Business Enterprises Policy as outlined in this document. It is understood that the City of Beaumont will utilize this priority system in the evaluation of all proposals. 7 Name of Compan Date Sign ture Title 3