HomeMy WebLinkAboutPACKET JUL 10 2001 P* IL
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City of Beaumont
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS JULY 10, 2001 1:30 P.M.
AGENDA
OPENING
• Invocation Pledge Roll Call
• Presentations and Recognition
• Public Comment: Persons may speak on scheduled agenda items
• Consent Agenda
GENERAL BUSINESS
1. Consider authorizing the City Manager to execute two Ground Lease Agreements
for property located at the Beaumont Municipal Airport
WORK SESSION
* Review and discuss FY 2002 Budget proposals
COMMENTS
• Councilmembers comment on various matters
• City Manager Report - FY2002 Budget Preparation Process; The New Executive
Director of Southeast Texas Arts Council; Landfill Expansion Project; Recycling
Drop Off Center; Beaumont Police Department's Youth Academy For Law
Enforcement
• Public Comment (Persons are limited to 3 minutes)
EXECUTIVE SESSION
* Consider matters related to contemplated or pending litigation in accordance with
Section 551.071 of the Government Code:
James R. Hucker v. City of Beaumont
Persons with disabilities who plan to attend this meeting and who may need auxiliary aids
or services are requested to contact Kyle Hayes at 880-3716 a day prior to the meeting.
1
Council approval to authorize the City Manager to execute two (2) Ground Lease Agreements for
property located at the Beaumont Municipal Airport
Cit y of Beaumont
QIE! Council Agenda Item
�
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: July 10, 2001
AGENDA MEMO DATE: July 2, 2001
REQUESTED ACTION: Council approval to authorize the City Manager to execute two (2)
Ground Lease Agreements for property located at the Beaumont
Municipal Airport.
RECOMMENDATION
Administration recommends authorizing the City Manager to execute two thirty(30)year Ground
Lease Agreements for the construction of aircraft storage hangars on property located at the
municipal airport.
BACKGROUND
Two requests have been received to lease property at the municipal airport for the construction of
personal aircraft storage hangars. Due to the large size of the aircraft to be stored and the lack of
available hangar space at the airport, the individuals would like to construct their own storage
facilities.
Mr. Gary Giarraputo proposes to lease approximately 10,500 square feet of property located east of
the large south hangar along T-hangar C's taxiway. Mr. Giarraputo plans to construct a 60'x75'
metal aircraft storage hangar with asphalt approaches. The hangar will be used to store at least two
aircraft which Mr. Giarraputo uses to operate as the airport's fixed-based operator (FBO). The
aircraft are used for public rentals.
The second lease has been requested by Conn's Appliance,L.P.(Conn's). Conn's proposes to lease
approximately 21,380 square feet east of the north hangar building ramp. The firm's twin engine
corporate aircraft will be stored in the 60'x80'metal hangar constructed at this location. Currently,
there is no available hangar space on the airport to store an aircraft of its size.
Beaumont Municipal Airport Ground Lease Agreements
July 2, 2001
Page 2
The lease agreement, which is used for both entities, provides for a thirty(30) year term. In order
to attract aircraft to be based at the airport, an attractive rental rate is proposed. During the first five
(5)years of the agreement, an annual fee of$.15 per square foot is recommended. Every five years
thereafter, the rate will increase by five cents until the end of the term. Property at the Southeast
Texas Regional Airport currently leases for $.16 per square foot and property at the Kountze
municipal airport leases for$.22 per square foot.
All costs associated with the construction of the hangar facilities and their asphalt approaches are
the responsibility of the lessee. Plans and specifications must be approved by the City prior to
commencement of construction. These plans must meet all Federal Aviation Administration(FAA)
guidelines and local building requirements. Within two(2)months of the agreements effective date,
the lessee must furnish detailed plans and specifications for approval. Construction is required to
begin within six(6)months of the effective date and be complete within one(1)year. Any utilities
and future maintenance of the hangar will be the responsibility of the lessee.
Also, the lessee's are required to provide the City with commercial general liability insurance
coverage in the amount of$300,000 for bodily injury and$100,000 for property damage. They are
also required to indemnify and hold the City harmless for any cause arising from the use or
occupancy of the leased area. Upon termination of the agreement, the lessee must remove the
structure and return the leased premises to its original condition. Subleasing is permitted with the
City's approval.
Both lease agreements were reviewed and approved by the Airport Advisory Committee on June 27,
2001.
A copy of the basic agreement and maps indicating the location of the leased property is provided
for review
BUDGETARY IMPACT
Revenues received from the two lease agreements will be deposited into the Airport Fund. The first
five years will be at an annual rate of$1,575 for the property leased to Mr. Giarraputo and $3,207
for the property leased to Conn's.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director and Airport Advisory Committee.
Beaumont Municipal Airport Ground Lease Agreements
July 2, 2001
Page 3
RECOMMENDED ACTION
Approve/Deny authorizing the City Manager to execute Ground Lease Agreements with Mr. Gary
Giarraputo and Conn's Appliance, L. P. for the construction of aircraft storage hangars at the
Beaumont Municipal Airport.
STATE OF TEXAS §
KNOW ALL MEN BY THESE PRESENTS
COUNTY OF JEFFERSON §
GROUND LEASE AGREEMENT
THIS AGREEMENT is made and entered into by and between the City of Beaumont,
Texas,a municipal corporation,hereinafter called"Lessor," and
hereinafter called "Lessees."
Lessor and Lessees, for and in consideration of the rents, covenants and agreements
herein contained, mutually covenant and agree as follows:
1. LEASED PREMISES
1.1 Lessor leases to Lessees and Lessees hires from Lessor, for the purposes of
constructing and operating Aircraft Storage Hangar as provided herein and for no other purpose,those
certain premises located on the Beaumont Municipal Airport in the County of Jefferson, State of Texas,
containing square feet of land, and being more particularly described in Exhibit "A"
attached hereto and made a part hereof.
2. TERM
2.1 This lease shall be for a term of thirty (30) years, referred to as the "lease term,"
commencing on the 1st day of September, 2001, the "effective date," which is 30 days after passage
of the resolution authorizing this lease, and ending on the 31 st day of August, 2031; subject, however,
to earlier termination as hereinafter provided.
2.2 This lease shall terminate and become null and void without further notice on the
expiration of the term specified, and any holding over by Lessees after expiration of said term shall not
constitute a renewal hereof or give Lessees any rights hereunder in or to the leased premises.
3. RENT
3.1 Lessees agree to pay Lessor as rental for the use and occupancy of the leased premises
the following sums, subject to adjustment as hereinafter provided: Fifteen cents ($.15) per square foot
per year, payable in advance on or before the 1st day of September of each year during the term of
this lease. The minimum annual rental during the term of the agreement shall be one hundred dollars
($100).
3.1.1 For the sixth (6th) through tenth (10th) years of the term hereof, the annual
rental shall increase to twenty cents ($.20) per square foot per year.
3.1.2 For the eleventh (11th) through fifteenth (15th) years of the term hereof, the
annual rental shall be increased to twenty-five cents ($.25) per square foot per
year.
3.1.3 For the sixteenth (16th) through twentieth (20th) years of the term hereof, the
annual rental shall be increased to thirty cents ($.30) per square foot per year.
3.1.4 For the twenty-first (21 st)through twenty-fifth (25th) years of the term hereof,
the annual rental shall be increased to thirty-five ($.35) per square foot per
year.
3.1.5 For the twenty-sixth (26th) through thirtieth (30th) years of the term hereof,
the annual rental shall be increased to forty cents ($.40) per square foot per
year.
3.2 All installments of rent hereunder, when and as the same become due and payable,shall
be paid to the City of Beaumont, Central Services Department, P. O. Box 3827, Beaumont, Texas
77704, or to such other office or officer of Lessor as the City Manager may designate in writing in
advance.
4. CONSTRUCTION BY LESSEES
4.1 Lessees shall be required to erect on the leased premises permanent Hangar(s)
containing a minimum of square feet of space and paved driveways accessing taxiways.
Lessor shall have the right of reasonable approval of plans and specifications for the construction of
said building and appurtenances. The building and its appurtenances shall be constructed in
accordance with all applicable city, state and federal laws, ordinances, rules and regulations.
4.2 Lessees shall comply with the following construction schedule:
4.2.1 Within two (2) months from the effective date of this agreement, Lessees shall
furnish the City Manager or his designee detailed plans and specifications for
construction of the building and its appurtenances. The City Manager or his
designee shall approve or disapprove same. The City Manager or his designee
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may not unreasonably withhold his approval of the construction plans and
specifications. If the City Manager or his designee disapproved the
construction plans and specifications, he shall provide Lessees a written
statement of reasons for his disapproval.
4.2.2 Within six (6) months from the effective date of this agreement, Lessees shall
commence construction of said building under a general construction contract
requiring completion within twelve (12) months of the date of execution of this
agreement.
4.3 No structure, or other improvement, shall be placed on the leased premises which does
not comply with the plans, specifications and locations approved by Lessor. Lessees shall make no
material addition to or alteration of any structure erected on the leased premises unless and until plans
and specifications of the proposed addition or alteration shall have first been submitted to and approved
by the City Manager or his designee.
4.4 Construction shall be performed by a contractor(s) licensed by the City of Beaumont
to provide the required services. All construction shall adhere to all appropriate federal, state and local
laws, regulations, standards, codes and ordinances.
4.5 The approval by Lessor of any plans and specifications refers only to the conformity
of such plans and specifications to the general architectural plan for the leased premises and such
approval shall not be withheld unreasonably. Such plans and specifications are not approved for
architectural or engineering design and Lessor, by approving such plans and specifications, assumes
no liability or responsibility for any defect in any structure constructed from such plans or
specifications. All plans and specifications must be submitted to the City's Building Code Enforcement
Division for review and approval. All applicable permits must be obtained.
5. TAXES
5.1 In addition to the rental, Lessees shall pay and discharge all taxes, general and special
assessments, and other charges of every description which during the term of this agreement may be
levied on or assessed against the leased premises and all interests therein and all improvements and
other property thereon. Lessees shall pay all such taxes, charges and assessments to the public officer
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charged with collection thereof before same shall become delinquent, and Lessees agrees to indemnify
and save harmless Lessor from all such taxes, charges and assessments.
6. UTILITIES
6.1 Lessees shall pay all charges for water, heat, gas, electricity, telephone, sewers, and
any and all other utilities used on the leased premises throughout the term of this lease, including any
connection fee and pro-rata charges.
7. USE OF PREMISES
7.1 Lessees shall use the leased premises only for the storage of personal or business
aircraft. No other use is permitted without the prior written consent of the City Manager or his
designee. The sale or use of alcoholic beverages is prohibited without the prior written consent of the
City Manager or his designee. Additionally, Lessees will be allowed to sublet the premises, subject to
approval by Lessor. Approvals required hereunder will not be unreasonably withheld.
8. ENCUMBRANCE OF LEASEHOLD ESTATE
8.1 Lessees may, at any time, encumber the leasehold interest, by deed of trust, mortgage,
or other security instrument, without obtaining the consent of Lessor, but no such encumbrance shall
constitute a lien on the fee title of Lessor, and the indebtedness secured thereby shall at all times be
and remain inferior and subordinate to all the conditions, covenants, and obligations of this agreement
and to all rights of Lessor hereunder.
8.2 If at any time after execution and recordation in Jefferson County, Texas, of any such
mortgage or deed of trust, the mortgagee or trustee therein shall notify Lessor in writing that any such
mortgage or deed of trust has been given and executed by Lessees, and shall at the same time furnish
Lessor with the address to which it desires copies of notices to be mailed. Lessor hereby agrees that
it will thereafter mail to such mortgagee or trustee, at the address so given, copies of any and all
notices which Lessor may from time to time give or serve upon Lessees under and pursuant to the
terms and provisions of this agreement.
8.3 Any lender on the security of the leasehold shall have the right at any time during the
term of this agreement:
8.3.1 To do any act or thing required of Lessees hereunder and all such acts or things
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done and performed shall be as effective to prevent a forfeiture of Lessees's
rights hereunder as if done by Lessees; and,
8.3.2 To realize on the security afforded by the leasehold estate by foreclosure or
power of sale or other remedy afforded at law or in equity or by the security
documents and to transfer, convey, or assign the title of Lessees to the
leasehold estate created hereby to any purchaser at any such foreclosure sale,
and to acquire and succeed to the interest of Lessees hereunder by virtue of
any such foreclosure sale.
9. REPAIRS AND RESTORATION
9.1 Lessees, at Lessees's own cost and expense at all times during the term of this lease,
agrees to keep and maintain,or cause to be kept and maintained, all buildings and improvements which
may be erected on the leased premises in a good state of appearance and repair, reasonable wear and
tear excepted. Improvements are to include driveways, constructed ramps or taxiways on or off of
leased premises to provide access to public taxiways. Failure to maintain the buildings and
improvements in a good state of appearance and repair shall be considered a default in the performance
of the agreement and remedied as in accordance with the provisions of this lease.
9.2 The determination of whether the buildings and improvements are in compliance with
the maintenance requirements of this provision shall be the sole discretion of the Lessor.
9.3 In the event the building or any building or improvements thereafter constructed on the
leased premises is damaged by fire or any other casualty, the Lessees shall have the option to:
9.3.1 Repair, reconstruct or replace the damaged building or improvements, with
reasonable diligence, so that the building, to the extent originally constructed
by Lessees, is restored to substantially the condition it was in prior to the
happening of the casualty; provided, however, that if the commencement,
construction, or completion of said repair, reconstruction, or replacement work
shall be prevented or delayed by reason of war, civil commotion, acts of God,
strikes, governmental restrictions or regulations, or interferences, fire or other
casualty, or any other reason beyond the control of Lessees, whether similar
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to any of those enumerated or not, the time for the commencing or completing,
or both, of the construction of said building, as the case may be, shall
automatically be extended for the period of each such delay.
9.3.2 Remove all structures, improvements, debris and remains and return the leased
premises to its original condition within thirty (30) days of the casualty. If the
leased premises are not returned to its original condition within the time
specified, Lessor may remove or cause to be removed any remaining structures
or debris and return the leased premises to its original state. All costs shall be
borne by the Lessees. In addition, the lease shall terminate with no prorata
return of any rentals paid.
10. LIENS
10.1 Lessees shall not suffer or permit any mechanics' liens or other liens to be filed against
the fee of the leased premises nor against Lessees's leasehold interest in the land nor any buildings or
improvements on the leased premises by reason of any work, labor, services, or materials supplied or
claimed to have been supplied to Lessees or to anyone holding the leased premises or any part thereof
through or under Lessees.
10.2 If any such mechanics' liens or materialmen's liens shall be recorded against the leased
premises, or any improvements thereof, Lessees shall cause the same to be removed or, in the
alternative, if Lessees in good faith desires to contest the same, Lessees shall be privileged to do so,
but in such case Lessees hereby agrees to indemnify and save Lessor harmless from all liability for
damages occasioned thereby and shall, in the event of a judgment of foreclosure on said mechanics'
lien, cause the same to be discharged and removed prior to execution on such judgment.
11. INSURANCE AND INDEMNIFICATION
1 1.1 Lessees shall indemnify, defend, and hold harmless Lessor, its officers, agents and
employees from any and all liabilities,demands,actions,losses,damages and costs,including all costs
of defense thereof caused by or arising out of, or in any way related to Lessees's use or occupancy
of the leased premises or occurring on the leased premises during the term of the lease or caused by,
arising out of, or in any way related to operations conducted by Lessees including claims, liabilities and
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actions based upon acts, omission, or negligence of the Lessor, its officers, agents, and employees.
Upon demand, Lessees shall, at its own expense, defend Lessor, its officers, agents, and employees,
through counsel acceptable to Lessor,against any and all liabilities,claims,demand,actions,damages
and costs.
11.2 Lessees shall purchase and maintain in full force and effect insurance as provided
herein, with the City of Beaumont as a named insured. A certificate of insurance, or a copy of the
insurance policies, shall be furnished to Lessor and shall provide that the Lessor shall receive ten days'
prior written notice before any change or cancellation of any policy. The limits established herein may
be modified by prior written consent of the City Manager or his designee and shall be increased if the
Lessor's standards are amended to provide increased limits.
COMMERCIAL GENERAL LIABILITY COVERAGE:
Bodily injury (each accident): $300,000.00
Property damage (each accident): $100,000.00
12. SUBLEASES
12.1 Lessees may not sublease or assign any portion of the agreement or any of the premises
leased to Lessees, nor shall a foreclosing trustee, lien holder, or mortgagee do so, to any other person,
firm, or corporation without the prior consent, in writing, of Lessor, which consent shall not be
unreasonably withheld.
13. DEFAULT AND REMEDIES
13.1 Should Lessees default in the performance of any covenant, condition, or agreement
in this lease, and such default is not corrected within ten (10) days after receipt of written notice from
Lessor to Lessees and any lender as required by Section 8, Lessor may declare this lease, and all rights
and interests created by it, to be terminated. Upon Lessor electing to terminate, this lease shall cease
and come to an end as if that were the day originally fixed herein for the expiration of the term hereof,
and including payment of ground rental beyond that date. Upon such event, Lessees must remove
building and improvements constructed and return the leased premises to its original condition within
thirty (30) days. Failure to so remove the structure and improvements results in the Lessor's right to
obtain possession and ownership of the building and improvements. Lessor, its agent or attorney, may
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resume possession of the premises and by such action obtain ownership of the building constructed
on the leased premises and may at its option relet the same for the remainder of the term.
13.2 Any termination of this lease as herein provided shall not relieve Lessees from the
payment of any sum or sums that shall then be due and payable to Lessor hereunder, or any claim for
damages then or theretofore accruing against Lessees hereunder, and any such termination shall not
prevent Lessor from enforcing the payment of any such sum or sums or claim for damages by any
remedy provided for by law, or from recovering damages from Lessees for any default thereunder. All
rights, options, and remedies of Lessor contained in this lease shall be construed and held to be
cumulative, and no one of them shall be exclusive of the other, and Lessor shall have the right to
pursue any one or all of such remedies or any other remedy or relief which may be provided by law,
whether or not stated in this lease. No waiver by Lessor of a breach of any of the covenants,
conditions, or restrictions of this lease shall be construed or held to be a waiver of any succeeding or
proceeding breach of the same or any other covenant, condition, or restriction herein contained.
14. GENERAL PROVISIONS
14.1 Lessees may not conduct any other aeronautical activities within or upon the leased
premises without the prior written consent of the City Manager or his designee.
14.2 The Lessees for himself, his personal representatives, successors in interest, and
assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running
with the land that:
14.2.1 No person on the grounds of race, color, or national original shall be excluded
from participation in, denied the benefits of, or be otherwise subjected to
discrimination in the use of said facilities.
14.2.2 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 be otherwise subjected to discrimination.
14.2.3 That the Lessees shall use the premises in compliance with all other
requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in
Federally Assisted Programs of the Department of Transportation, and as said
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Regulations may be amended.
14.3 That in the event of breach of any of the preceding nondiscrimination covenants,Lessor
shall have the right to terminate the license, lease, permit, etc., and to reenter and repossess said land
and the facilities thereon, and hold the same as if said lease had never been made or issued.
14.4 During the time of war or national emergency, Lessor shall have the right to lease the
landing area or any part thereof to the United States Government for military or naval use, and, if 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.
14.5 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, repair, and fueling) that it may
choose to perform.
14.6 It is understood and agreed that nothing herein contained shall be construed to grant
or authorize the granting of an exclusive right forbidden by Section 308(a) of the Federal Aviation Act
of 1958 or for aeronautical activities.
14.7 Lessor reserves the right, in a reasonable and nondiscriminatory manner, to further
develop or improve the area of the Airport as it sees fit, regardless of the desires or views of Lessees
and without interference or hindrance.
14.8 Lessor shall have the right, but not the obligation, 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 Lessees in this regard.
14.9 All hangars, buildings, properties or land on the Airport, shall be maintained in a clean,
attractive, weed free, well painted, junk free condition. Lessor shall ensure that all debris and trash
are removed from within and around the leased premises in accordance with all applicable laws or
requirements. Lessor is responsible for providing proper trash receptacles and storing such within the
hangar. Lessees shall not allow the accumulation of materials, goods, trash or equipment around the
exterior of the hangar. Lessees shall maintain cultivated areas in accordance with airport regulations.
14.10 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 the erection of any
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building or other structure on or adjacent to the Airport which would limit the usefulness of the Airport
or constitute a hazard to aircraft.
14.11 This agreement 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.
14.12 Incorporated into this agreement, by reference and as though set forth herein verbatim,
are the Minimum Standards and Requirements for the Conduct of Commercial Aeronautical Services
and Activities adopted by the Lessor. Such minimum standards shall be lawful, reasonable and
nondiscriminatory. Further, all parties hereto agree to comply with all rules and regulations of the
Federal Aviation Administration and the laws of the United States of America,the State of Texas, and
all laws, regulations, rules and ordinances of the City of Beaumont as they now exist or may hereafter
be enacted or amended, and will not permit the premises covered by this agreement to be used for any
unlawful or improper purpose.
14.13 The standards and regulations enacted by the governmental agency responsible for the
operation of the Airport, now or in the future, may provide for use charges to be paid by those using,
occupying, or conducting operations at the Airport. Such charges may be based upon square footage,
receipts or other reasonable basis,to be established by such standards and regulations. Lessees agrees
to pay such charges as same are due and owing under any such standards or regulations now or
hereafter in effect. Any such use charges shall be lawful, reasonable and nondiscriminatory.
14.14 Lessor may, on account of the breach of any provision hereof, including the standards
and regulations incorporated herein by reference, terminate this agreement and eject the party in
violation in accordance with the provisions of this lease.
14.15 The purpose of the lease and the operations to be conducted by Lessees or sublessees,
and the identity of the premises to be occupied, are set forth in this lease. No other operations,
business, or occupancy may be had or done without the additional written consent of the Lessor.
14.16 It is mutually understood and agreed that nothing in the 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 Lessees as an agent or representative of the Lessor for any
purposes or in any manner whatsoever.
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14.17 Lessees shall permit Lessor's agents, representatives, or employees to enter on the
leased premises for the purpose of inspection, to determine whether Lessees is in compliance with the
terms of this lease, for purposes of maintaining, repairing, or altering the premises, or for the purpose
of showing the leased premises to prospective Lessees,purchasers,mortgagees, or beneficiaries under
trust deeds.
14.18 No waiver by Lessor of any default or breach of any covenant, condition, or stipulation
herein contained shall be treated as a waiver of any subsequent default or breach of the same or any
other covenant, condition, or stipulation hereof.
14.19 This agreement shall be construed under and in accordance with the laws of the State
of Texas,and all obligations of the parties created hereunder is performable in Jefferson County,Texas.
14.20 In case anyone or more of the provisions contained in this agreement shall for any
reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or
unenforceability shall not affect any other provision thereof and this agreement shall be construed as
if such invalid, illegal, or unenforceable provision had never been contained herein.
14.21 This agreement constitutes the sole and only agreement of the parties hereto and
supersedes any prior understandings or written or oral agreements between the parties respecting the
within subject matter.
14.22 No amendment, modification, or alteration of the terms hereof shall be binding unless
the same be in writing, dated subsequent to the date hereof and duly executed by the parties hereto.
14.23 Lessees shall not erect, paint or place any exterior signs on the leased premises or the
structure placed thereon.
14.24 Only aircraft may be stored in Hangars. No other non-aeronautical equipment,
combustible products, or items may be placed there for use or storage.
14.25 Lessees are granted the right to operate from temporary facilities on the leased premises
pending occupancy of his permanent structure.
15. OWNERSHIP BUILDING
15.1 Lessor, upon expiration of the term hereof or upon earlier termination of this agreement
as provided herein, shall remove or cause to be removed the existing structure and any improvements
from the leased premises and return said leased premises to its original condition within sixty(60) days.
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Lessees may negotiate a ground lease renewal for the leased premises, although, the Lessees is not
obligated to enter into any subsequent agreement.
16. APPROVAL OF FFA
16.1 The parties recognize that location of Lessees's operation may require amendment of
the airport master plan and approval by the Federal Aviation Administration and the Texas Department
of Transportation. Lessor agrees to make such amendment as may be necessary and to submit same
to said agencies for approval. This agreement is contingent upon such approval, and in the event the
amendment shall not be approved, this agreement shall terminate and both parties shall be released
from all obligations herein contained.
17. NOTICES
17.1 All notices provided to be given under this agreement shall be given by certified mail
or registered mail, addressed to the proper party at the following address:
LESSOR
City of Beaumont
Central Services
801 Main Street, Room 315
Beaumont, Texas 77701
LESSEES
EXECUTED this day of , 2001.
LESSOR:
By:
Stephen J. Bonczek, CITY MANAGER
LESSEES:
By:
(name) , OWNER
By:
(name) , OWNER
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City of Beaumont
REGULAR MEETING OF THE CITY COUNCIL
COUNCIL CHAMBERS JULY 10, 2001 1:30 P.M.
CONSENT AGENDA
* Approval of minutes
Confirmation of committee appointments
A) Approve the purchase of 10,000 feet of polyethylene pipe
B) Approve the purchase of one diesel engine generator set and transfer switch for the
wastewater handling system and all pumps at the Beaumont Fire Training Grounds
C) Approve the purchase of promotional items for the Clean Community Department
D) Authorize the City Manager to execute an agreement with C. L. Sherman and Sons
Lumber Dealers, Inc. for the lease of property for the operation of Emergency
Medical Services (EMS)Medic 1
CONSENT AGENDA JULY 10, 2001
* Committee Appointments
A) Approve the purchase of 10,000 feet of polyethylene pipe
Administration recommends approval of the purchase of 10,000 feet of 8-inch polyethylene pipe at
the unit cost of$3.59 per foot, for a total expenditure of$35,900, from ACT Pipe and Supply of
Houston. The pipe will be used in the replacement of sewer lines throughout the City which have
deteriorated into poor condition. The quantity specified will provide an inventory sufficient to
sustain approximately three to six months of sewer line replacement projects by the Water Utilities
Division. Funds are available for this expenditure in the Water Utilities Fund. A copy of the staff
memorandum is attached for your review.
B) Approve the purchase of one diesel engine generator set and transfer switch for the
wastewater handling system and all pumps at the Beaumont Fire Training Grounds
Administration recommends approval of the purchase of one diesel engine generator set and
transfer switch from Emergency Power Service of Beaumont in the amount of$20,440. The system
will protect the facility's primary water source from fuel contamination during periods of prolonged
power outages. Funds are available for this expenditure in the Capital Improvements Fund. A copy
of the staff memorandum is attached for your review.
C) Approve the purchase of promotional items for the Clean Community Department
Administration recommends approving the purchase of 35,000 promotional items, specifically,
refrigerator magnets from Weisenbach Specialty Printing of Columbus, Ohio in the amount of
$17,696.20. The 4" x 4" magnets contain information about Beaumont's residential trash collection
program. Funds are available for this expenditure through a grant provided by the Southeast Texas
Regional Planning Commission. A copy of the staff memorandum is attached for your review.
D) Authorize the City Manager to execute an agreement with C. L. Sherman and Sons
Lumber Dealers, Inc. for the lease of property for the operation of Emergency
Medical Services (EMS) Medic 1
Administration recommends authorizing the City Manager to execute a three-year lease agreement
beginning July 1, 2001 and expiring June 30, 2004, for the lease of 2510 North I I' Street, Suite A.
The City would pay $1,276 per month during the three-year lease. Funds for this lease are available
in the Public Health EMS operating budget. A copy of the staff memorandum is attached for your
review.
A
......
City of Beaumont
•�• Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: July 10, 2001
AGENDA MEMO DATE: June 27, 2001
REQUESTED ACTION: Council approval to award a bid for the purchase of 10,000 feet of
polyethylene pipe.
RECOMMENDATION
Administration recommends award of a bid for the purchase 10,000 feet of 8-inch polyethylene pipe at the
unit cost of$3.59 per foot, for a total expenditure of$35,900,to ACT Pipe and Supply of Houston,
Texas.
BACKGROUND
The pipe specified in the bid will be used in the replacement of sewer lines throughout the City which have
deteriorated into poor condition. The quantity specified in this bid will provide an inventory sufficient to
sustain approximately three(3)to six(6)months of sewer line replacement projects by the Water Utilities
division. The City has sought to procure a contract arrangement to purchase this material,but vendors are
unable to guarantee pricing for more than 30 to 60 days due to the market volatility of polyethylene pipe.
Bid notices were provided to ten(10)vendors,with nine(9)responding with bids. The bids received were
as follow:
Vendor Delivery Pipe Unit Price Total Bid Amount
ACT Pipe and Supply 4 weeks $3.59/ft. $35,900
Houston,Texas
Moore Supply 4 weeks $3.64/ft. $36,400
Beaumont, Texas
Purchase of 10,000 Feet of Polyethylene Pipe
June 27, 2001
Page 2
Vendor Delivery Pipe Unit Price Total Bid Amount
Rural Pipe and Supply 1-2 weeks $3.65 /ft. $36,500
Jasper, Texas
Maskell Robbins, LLC 2 weeks $3.72 /ft. $37,200
Webster, Texas
Coburn Supply 4-6 weeks $3.74/ft. $37,400
Beaumont, Texas
Hughes Supply 2 weeks $3.75 /ft. $37,500
Lufkin, Texas
Industrial Utility Sales Co., Inc. 3-4 weeks $3.84/ft. $38,400
Houston, Texas
Gajeske, Inc. 2 weeks $3.98 /ft. $39,800
Houston, Texas
Golden Triangle Pipe 2 weeks $4.05 /ft. $40,500
Beaumont, Texas
Local sales tax impact analysis was applied to the local vendors'bids,but failed to alter the bid standings.
BUDGETARY IMPACT
Funds are available for this expenditure in the Water Utilities Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director and Public Works Director.
RECOMMENDED MOTION
Approve/Deny accepting a bid from ACT Pipe and Supply for the purchase of 10,000 feet of 8-inch
polyethylene pipe at the unit cost of$3.59 per foot, for a total expenditure of$35,900.
B
. Cit y of Beaumont
•�• Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: July 10, 2001
AGENDA MEMO DATE: June 22, 2001
REQUESTED ACTION: Council approval to award a bid for the purchase of one (1) diesel
engine generator set and transfer switch.
RECOMMENDATION
Administration recommends award of a bid for the purchase of one(1) diesel engine generator set
and transfer switch to Emergency Power Service of Beaumont in the amount of$20,440.
BACKGROUND
Bids were requested for one(1) diesel engine generator set and transfer switch for use by the Fire
Department, Training Division. The generator set will provide emergency backup power for the
wastewater handling system and all pumps at the Beaumont Fire Training Grounds. The system
protects the facility's primary water source from fuel contamination during periods of prolonged
power outage.
Bid notifications were provided to 28 vendors, with five (5) responding with bids. The bids
received are as follow:
Vendor. Generator Transfer Switch Delivery Total Bid
Model Model Time Amount
Stewart&Stevensen Services Generac SD080 Generac GTS030W* 8-10 weeks $17,500
Nederland, TX
Emergency Power Service Generac SD080 Generac GTS060W 70 days $20,440
Beaumont,TX
Purchase of One (1) Diesel Engine Generator Set and Transfer Switch
June 22, 2001
Page 2
Vendor Generator Transfer Switch Delivery Total Bid
Model Model Time Amount
Waukesha-Pearce Ind., Inc. Kohler Model Kohler Model GLS- 8 weeks $21,535
Houston, TX 80ROZJ 164341
Cummins Southern Plains Cummins/Onan Cummins/Onan 45-50 days $22,218
Houston, TX Model 80DGDA Model OTPC600
Emergency Power Service Kohler Model Kohler Model ZCS- 64 days $23,646
Beaumont, TX(alt. bid#1) 80ROZJ 164341
Emergency Power Service Cummins/Onan Cummins/Onan 60 days $23,995.44
Beaumont, TX(alt. bid#2) 80DGDA Model OTPC600
Reily Wesco Simpower Model GE/Zenith Model 70 days $32,865
Beaumont,TX 80C ZTGK60EC
*Transfer switch quoted does not meet 600 amp minimum specification, quoted item rated 300 amp.
The unit is warranted for parts and labor for one (1) year.
BUDGETARY EMPACT
Funds are available for this expenditure in the Capital Improvements Fund.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager and Central Services Director.
RECOMMENDED MOTION
Approve/Deny accepting a bid from Emergency Power Service for the purchase of one(1) Generac
generator set and transfer switch in the amount of$20,440.
c
City of Beaumont
N
�• Council Agenda Item
W
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: July 10, 2001
AGENDA MEMO DATE: July 3, 2001
REQUESTED ACTION: Council consider award of a bid for the purchase of promotional
items.
RECOMMENDATION
Administration recommends the award of a bid to Weisenbach Specialty Printing of Columbus,Ohio
in the amount of$17,696 for the purchase of 35,000 promotional items, specifically, refrigerator
magnets for the Clean Community Department.
BACKGROUND
Six(6)bids were received on Monday,June 4,2001,for the purchase of 35,000 refrigerator magnets
to be distributed to Beaumont residents. The 4"x 4"magnets contain information about Beaumont's
residential trash collection program. The bid includes printing in two colors,attaching to a postcard
and mailing to 32,000 Beaumont households. The City will furnish an electronic file of names and
addresses of residential households to the vendor for mailing. The balance of the magnets will be
forwarded to the Clean Community Department.
The following bids were received:
Vendor Location Price
Weisenbach Specialty Printing Columbus, Ohio $17,696.20
Fastsigns Beaumont, TX $21,440
Balboa Company Beaumont, TX $21,559
Abracadabra Beaumont, TX $23,290
Purchase of Promotional Items
July 3, 2001
Page 2
Vendor Location Price
L.A.S. Promotions Lumberton, TX $24,645
Area Impressions Beaumont, TX $29,881
The sales tax impact analysis was applied to the local bidder's bid but failed to alter the bid standings.
The magnets will be distributed to residential households in August.
BUDGETARY IMPACT
Funds are available for this expenditure through a grant provided by the Southeast Texas Regional
Planning Commission.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director and Clean Community Director.
RECOMMENDED ACTION
Approve/Deny the purchase and distribution of 35,000 refrigerator magnets from Weisenbach
Specialty Printing in the amount of$17,696.20.
D
City of Beaumont
W Council Agenda Item
TO: City Council
FROM: Stephen J. Bonczek, City Manager
PREPARED BY: Kirby Richard, Central Services Director
MEETING DATE: July 10, 2001
AGENDA MEMO DATE: July 2, 2001
REQUESTED ACTION: Council consider authorizing the City Manager to execute an
agreement with C. L. Sherman and Sons Lumber Dealers, Inc. for
the lease of property for the operation of Emergency Medical
Services (EMS) Medic 1.
RECOMMENDATION
Administration recommends authorizing the City Manager to execute a three (3) year lease
agreement with C. L. Sherman and Sons Lumber Dealers, Inc., beginning July 1, 2001 and
expiring June 30, 2004, for the lease of 2510 North 1 Vh Street, Suite A, for the operation of
EMS Med 1.
BACKGROUND
The City has leased a portion of the building located at 2510 North 11' Street since 1991 for the
operation of the EMS Med 1 branch. One supervisor, one paramedic specialist, two paramedics,
an ambulance and supervisor vehicle are stationed at this location on a 24 hour, 7 days per week
basis. The unit provides emergency medical response to the central and northeast portions of the
City.
EMS currently pays $911 per month for leasing the 1,964 square foot facility. The City has paid
this amount since July 1998. The property owner informed the City that he completed a survey
of market rents and found that the current fee is substantially below the market. Market rent,
including water and garbage pick up, is approximately 95 cents per square foot, which would
equate to $1,865 per month for this particular location. Mr. Sherman indicates he will not ask
for market rent; however, he proposes to increase the rental payment to 65 cents per square foot.
This equates to $1,276 per month, for a three-year lease.
The terms of the new lease agreement will remain the same as for the original lease. The property
owner will maintain the major building components, such as the roof and foundation, exterior
EMS Med 1 Lease Agreement
July 2, 2001
Page 2
doors and walls, electrical and plumbing systems, and major components of the heating and air
conditioning systems. The City will be responsible for paying telephone and electricity services,
and for miscellaneous painting, minor repairs, air conditioner filters and minor plumbing repairs.
A copy of the proposed lease agreement, in its substantial form, is provided for your review.
BUDGETARY IMPACT
Funds for this lease are available in the Public Health EMS operating budget.
PREVIOUS ACTION
None.
SUBSEQUENT ACTION
None.
RECOMMENDED BY
City Manager, Central Services Director and Public Health Director.
RECOMMENDED MOTION
Approve/Deny authorizing the City Manager to execute a three (3) year lease agreement with C.
L. Sherman and Sons Lumber Dealers, Inc. for the rental of 2510 North I Ith Street, Suite A, at
the rate of$1,276 per month.
cAFavorites\Leases\EMS:MedI\Agendalt=62801.wpd
THE STATE OF TEXAS §
LEASE AGREEMENT
COUNTY OF JEFFERSON §
This Lease Agreement is made and entered into by and between C. L. Sherman and Sons
Lumber Dealers, Inc., of Jefferson County, Texas, hereinafter called "Landlord," and The City of
Beaumont, Jefferson County, Texas, hereinafter called "Tenant."
In consideration of the mutual covenants and agreements herein set forth,and other good and
valuable consideration, Landlord does hereby demise and lease to Tenant, and Tenant does hereby
lease from Landlord, certain real property and improvements thereon at 2510 North 11th Street,
Suite`A' and one-third(1/3)of the adj acent parking lot,located in the City of Beaumont,hereinafter
called the "leased premises."
ARTICLE 1. TERM OF LEASE
1.1 The term of this Lease shall be three(3)years, commencing on the first(1 st)day of
July 2001, and ending at 11:59 p.m. on the thirtieth (30th) day of June 2004, unless sooner
terminated as herein provided.
ARTICLE 2. RENT
2.1 Tenant agrees to pay to Landlord rent in monthly installments of Twelve Hundred
Seventy-Six($1,276.00)each,with the first such installment being due and payable on July 1,2001
and a like installment of rent being due and payable on the first (1st) day of each calendar month
thereafter.
2.2 All rent payable hereunder shall be paid to Landlord by mailing or delivering
payment to 2970 Washington Blvd., Beaumont, Texas 77705 or such other place or places as
Landlord may from time to time designate in writing to Tenant.
ARTICLE 3. BUSINESS
3.1 Tenant shall operate the leased premises only for the use and purposes for which it
is let,to-wit:Municipal uses. Tenant will comply,and will cause its employees,agents and invitees
to comply, with all applicable laws and ordinances and with all rules and regulations of
governmental agencies.
ARTICLE 4. MAINTENANCE AND SURRENDER
4.1 Landlord shall repair and maintain in good condition the roof, foundation, exterior
doors, exterior walls, electrical and plumbing systems, major components of the heating and air
conditioning systems, the adjacent driveways and parking lot of the leased premises; provided,
however,Landlord shall not be obligated to perform any maintenance,repairs or replacements made
necessary by the negligence of Tenant or Tenant's agents, employees or invitees, which
maintenance, repairs or replacements shall be performed by Tenant at Tenant's sole cost and
expense. All other repairs,maintenance and replacements necessary to maintain the leased premises
in good condition, not specifically allocated to the Landlord in this Article 4, shall be made by
Tenant at Tenant's sole cost and expense,including without limitation air conditioner filters,stopped
up plumbing lines,and janitorial services. All maintenance,repairs and replacements shall be made
promptly by the party responsible as and when necessary.
4.2 Tenant shall throughout the Lease term maintain the leased premises in an orderly
condition as provided above and keep them free from waste or nuisance. At the termination of this
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Lease, Tenant shall deliver up the leased premises in a clean and sanitary condition in good repair
and condition, reasonable wear and tear and damage by fire, tornado or other casualty, not caused
through the fault of Tenant or any of Tenant's agents, invitees or employees, only excepted.
4.3 Landlord will conduct a move-out inspection of the premises when Tenant vacates
and the cost of any damage repairs above reasonable wear may be billed to Tenant.
4.4 If Tenant fails to pay lease or other amount owed for a period of thirty(30)days,or
if Tenant abandons the building,then Landlord may terminate the Lease Agreement with or without
demand for performance by giving Tenant thirty (30) days written notice to vacate, and Landlord
may be entitled to possession by eviction suit. Notice may be mailed or personally delivered to
Tenant.
ARTICLE 5. OBLIGATIONS OF LANDLORD AND TENANT
5.1 The monthly rental amount stated in Article 2.1 above includes payments for water
and garbage services. Tenant shall be responsible for the payment of telephone and electricity
services.
5.2 Tenant shall pay all personal property taxes, if any, imposed on the equipment,
inventory, fixtures and other personal property located on the leased premises. Landlord shall pay
all real property taxes on the leased premises.
5.3 Landlord shall, at its expense,maintain such casualty insurance covering the leased
premises as it deems appropriate to cover its interest thereon. Tenant should maintain such insurance
as it deems appropriate to protect its property on the leased premises.
5.4 Tenant shall not create any openings in the roof or exterior walls, nor make any
alterations, additions or improvements to the leased premises without the prior written consent of
- 3 -
Landlord. Consent for nonstructural alterations, additions or improvements shall not be
unreasonably withheld or delayed by Landlord. Redecorating, refurnishing, painting and other
nonstructural renovations which do not decrease the value of the building may be made by Tenant
with Landlord's consent. Tenant shall have the right at all times to erect or install fixtures,provided
that Tenant complies with all applicable governmental laws, ordinances and regulations. Tenant
shall have the right to remove prior to termination of this Lease such fixtures so installed,provided
Tenant is not in default under any of the terms, covenants or conditions of this Lease; however,
tenant shall,not later than five(5)days after the termination of this Lease,repair any damage caused
by such removal. All alterations,additions or improvements made by Tenant,which are not actually
removed from the leased premises by Tenant,under the provisions of the preceding paragraph,shall
become the property of Landlord at the termination of this Lease.
5.5 Tenant shall have the right to install any signs on the leased premises; however,
Tenant shall be wholly responsible for any and all direct or consequential damage caused by the
placement,erection or removal of such signs. Tenant shall remove all signs at the termination of this
Lease and shall repair any damage and close any holes caused by such removal.
5.6 Landlord shall not be liable to Tenant for losses to person or property caused by other
Tenants or by theft,burglary, assault, vandalism or other crimes. Landlord shall not be liable for
personal injury or for damages to or loss of Tenant's personal property from fire, flood water, leaks
or other occurrences, unless such damage or injury is caused by negligence of Landlord.
5.7 Either party may cancel this contract after the initial three-year term by giving to the
other party ninety(90)days notice of said termination in writing. Any obligation to pay rent under
this lease will also terminate with such cancellation. Tenant shall within said ninety(90)days vacate
-4-
the space and remove all of Tenant's property therefrom. Any property belonging to Tenant not
removed within said ninety(90) day period shall become the property of the Landlord.
ARTICLE 6. MISCELLANEOUS
6.1 No amendment, modification or alteration of the terms of this agreement shall be
binding unless made in writing,dated after the execution date of this agreement and duly signed by
the Landlord and Tenant.
6.2 Should Tenant hold over on the leased premises, or any part thereof, after the
expiration of the initial term of this Lease or any extension thereof with the permission of Landlord,
unless otherwise agreed in writing,such holding over shall constitute and be construed as a tenancy
from month to month only. Rent for such month to month tenancy shall be at a monthly rate of
Twelve Hundred Seventy-Six Dollars($1,276.00),payable in advance on the first(1 st)day of each
calendar month during the term of such month to month tenancy. The inclusion of Section 6.2 shall
not be construed as Landlord's consent for Tenant to hold over.
6.3 Notwithstanding anything contained in this Lease to the contrary, in the event no
funds or insufficient funds are appropriated and budgeted or are otherwise unavailable by any means
whatsoever in any fiscal period for lease payments due under this Lease, Tenant will immediately
notify Landlord in writing of such occurrence and this Lease shall terminate on the last day of the
fiscal period for which appropriations have been received or made without penalty or expense to
Tenant.
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EXECUTED, this the day of 2001.
LANDLORD: TENANT:
C. L. SHERMAN AND SONS CITY OF BEAUMONT
LUMBER DEALERS, INC.
C. L. Sherman, Jr. Stephen J. Bonczek, City Manager
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