HomeMy WebLinkAboutRES 20-138RESOLUTION NO. 20-138
BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BEAUMONT:
THAT the City Manager, or his designee, be and they are hereby authorized to execute
an Aircraft North Hangar Rental Agreement between the City of Beaumont and Modern
Industrial Services for property located at the Beaumont Municipal Airport for a month -
to -month term in the amount of $3,800.00 per month. The Rental Agreement is
substantially in the form attached hereto as Exhibit "A" and made a part hereof for all
purposes.
The meeting at which this resolution was approved was in all things conducted in
strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter
551.
PASSED BY THE CITY COUNCIL of the City of Beaumont this the 14th day of
July, 2020.
AIRCRAFT NORTH HANGAR RENTAL AGREEMENT
CITY OF BEAUMONT
BEAUMONT MUNICIPAL AIRPORT
455 KEITH ROAD
BEAUMONT, TEXAS
This HANGAR RENTAL AGREEMENT (this "Agreement") (entered into as of this
day of _ 520 by and between the City of Beaumont (the "City")
and Modern Industrial Services (the "Tenant"). In consideration of the mutual covenants
contained here, and for other good and valuable consideration, the parties hereby agree as follows:
1. Rental of the Hangar: City hereby rents to Tenant, North Hangar, located at the Beaumont
Municipal Airport, 455 Keith Road (the "Airport"), and described as follows: (see Exhibit "A").
The Hangar and office space shall be used and occupied by Tenant for the storage of the following
described aircraft:
Aircraft Type:
Registration No.
Aircraft Type:
Registration No.
Aircraft Type:
Registration No.
Aircraft Type:
Registration No.
Owner and Registration Number information will be verified.
2. Term: The term of this Agreement shall be month -to -month, commencing on the day of
Tenant does hereby acknowledge and consent to the City's right to terminate
this Agreement by giving thirty (30) days written notice if, in the sole judgment of the City, such
termination is necessary or desirable for any reason consistent with the Airport Master Plan
development and/or operational needs of the Airport. City reserves the right to terminate this
agreement for violation of any portion of agreement, including but not limited to, non-payment
and unauthorized use of hangar.
3. Rent and Deposit: Tenant agrees to pay City, as rent for the use and occupancy of the Hangar,
EXHIBIT "A"
3. Rent and Deposit: Tenant agrees to pay City, as rent for the use and occupancy of the Hangar,
the sum of Three Thousand Eight Hundred Dollars and No Cents ($3,800.00) per month. Upon
execution, Tenant must pay to the City the first month's rent and a sum equal to the monthly rental
to be held as a Deposit. For the second month and for each monthly term thereafter, Tenant must
pay the City, or its designee, the monthly rental each month payable in advance, on or before the
first (1st) day of each month. If that date falls on a Saturday or Sunday, the monthly rental is due
on the next business day.
Each month's rent must be paid on or before the due date to:
City of Beaumont
Central Collections Division
801 Main, Suite 110
Beaumont, Texas 77701
If any monthly rental is not paid on or before the tenth (1 Oth) day of each month, such payment
shall bear interest at ten percent (10%) per annum.
Tenant's right to possession and all of the City's obligations hereunder are expressly contingent on
the prompt payment of rent. Failure to pay rent on the first day of each month may result in
termination of the agreement. (See Item 6 of this Agreement.)
Upon termination of this Lease, the deposit paid by Tenant will be applied to any unpaid rental, the
cost to remove and store Tenant's aircraft or personal property, and the cost to remove and dispose of
any trash or debris left on the Leased Premises by Tenant. The Tenant is liable to the City for any
remaining rental due, storage costs, or cost of cleanup in excess of the amount of the deposit. Any
monies from the deposit remaining will be returned to the Tenant after keys have been returned to the
City and all lawful deducts are made by the City.
4. Premises and Services Provided: Tenant agrees to accept all facilities in an "as is" condition
and the City is responsible and will pay the expenses of maintaining and repairing the structural
components of the Hangar including doors and door mechanisms, and the Tenant shall be responsible
for repairing damages to the Hangar caused by the Tenant, other than normal wear and tear. Requests
for repairs shall be forwarded to the City's current Airport Manager. Water and electric is provided.
No trash service is provided. Internet and Wi-Fi service is the responsibility of Tenant.
5. Use of Hangar: Hangar shall be used for the storage of Tenant's aircraft for private use.
a) Tenant may not store any other items, goods, or equipment on the rented premises
except those that are necessary for and used in the storage or routine pre-flight owner
maintenance of aircraft. If Tenant uses the Hangar for "non -aviation" purposes, defined
as "not having any airplane or aircraft stored in said Hangar for ten (10) days" and the
City Manager or his/her agent ("Agent") reserves the right to terminate the Agreement
upon thirty (30) days' notice to Tenant.
b) No commercial activity (activity for profit) of any kind shall be conducted by Tenant, in,
from or around the Hangar.
c) In addition, Tennant agrees to grant the City as deemed necessary, the opportunity to
utilize a small area of the hangar in case of emergency as directed by either the City or
FAA for use as a maintenance area. If this option has to be used, Modern Group will be
notified as soon as possible of the need and to arrange use of the space.
d) Maintenance or repair of an aircraft in any hangar shall be performed by a licensed
mechanic. Such maintenance shall not include any spark producing equipment however,
such minor maintenance as would normally be performed by an aircraft owner without
the benefit of an aircraft mechanic is permissible.
e) Under no circumstances, will spray -painting of aircraft or any other property be allowed
in Hangar.
f j Tenant assures that he will not store gasoline and other aviation fuels in Hangar, other
than that fuel stored in the fuel tanks of any operational aircraft. Tenant shall control the
conduct and demeanor of its employees and invitees and those doing business with it, in
and around Hangar and shall take all necessary steps to remove persons whom the City,
for good and sufficient cause, deem objectionable.
g) Tenant shall always keep the Hangar clean and free of debris.
h) Tenant may not keep an inoperable aircraft on the Leased Premises for more than sixty
(60) consecutive days, unless undergoing repair for return to use.
i) Tenant may not make alterations to the Leased Premises or place or permit the
placement of any signs or similar devices on the Leased Premises.
6. Termination:
(a) Either party may terminate this Lease at any time by giving 3 0 days written notice to the
other party, except as otherwise provided for in this lease. Upon termination of this Lease
for any reason, the Tenant must immediately remove all personal property from the
Leased Premises and must surrender the Leased Premises in substantially the same
condition as existed at the beginning of the Lease, normal wear and tear excepted. If
Tenant fails to give the thirty (30) days written notice, Tenant will be liable for all rent
accrued through the end of the month at which time the City receives notice of agreement
termination.
(b) If the Tenant fails to pay all or part of the rental as required by this Lease and
the failure continues twenty (20) days past the date the rental is due, the City may remove
or alter Tenant's lock or place a new lock on the Leased Premises and deny Tenant the right
of.access thereto until Tenant has paid the rental due. The City will place a written notice
on the front door of the Leased Premises stating the name, address, and telephone
number of the person from which the new key may be obtained upon payment of the
delinquent rent. If the failure to pay rent continues more than twenty (20) days past the
date the rental is due, the City may immediately terminate this Lease by giving notice
to Tenant.
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(c) In the event of any default due to the non-payment of rent specified in this contract, the City
may take possession of and sell all fixtures, chattels and personal property of every kind and
description now or hereafter to be placed, installed or stored by tenant on the Leased
Premises; said sales may be made by any manner prescribed by law, with the City crediting
the net proceeds upon any indebtedness due or damage sustained by Airport, without
prejudice, to fiurther claims to arise later under the terms of this Agreement.
(d) Tenant shall comply with all laws, ordinances, and federal regulations and with any
direction of any public officer pursuant to law, which shall impose any duty on the Tenant
with respect to the aircraft or the occupation of the North Hangar. In addition, Tenant
shall comply with all standards and policies of the City relating to the Beaumont
Municipal Airport or operations on the airport premises. Tenant and guests must not
knowingly allow any other person to use the Leased Premises in violation of any Federal,
State, or County law or regulation or City ordinance. Failure to comply with all laws,
ordinances, regulations, standards, and policies may result in notice from the City and
subsequent termination of the lease.
(e) Tenant shall maintain a valid airworthiness certificate on the aircraft stored
in the North Hangar in confortruty with FAA regulation 91.203. Any Tenant whose
annual inspection of said aircraft is three (3) months past due shall be deemed in breach
of this rental agreement unless undergoing maintenance for return to use (which must be
proven upon request). Upon such occurrence, this agreement shall automatically
terminate. Tenant grants the City, or its designee, the authority to enter the North Hangar
and remove the aircraft and all property belonging to the Tenant.
7. Sublease/Assignment: Tenant shall not assign this lease nor sublet the Leased Premises. In the
event a Tenant sells the aircraft being stored in the Leased Premises, the Tenant shall notify the City
within three (3) working days that the sale has occurred. The Tenant has sixty (60) days following
the sale to provide the City with information regarding a replacement aircraft. Should the Tenant fail
to provide information regarding a, replacement aircraft, for any reason, the lease shall terminate and
the City shall take possession of the Hangar. The vacated Hangar will be offered for lease to
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individuals on the waiting list maintained by the City.
8. Right of Inspection: Tenant shall permit the City and the City's agents, representative or
employees to enter into or on the Leased Premises at all times for the purpose of inspecting the Leased
Premises. Tenant will be given forty-eight (48) hours written notice in advance of inspection date.
Tenant may be present during inspection. The City reserves the right to enter North Hangar at any
reasonable hour to make inspections, replacements, repairs and restorations. If, in the opinion of the
City, an emergency exists requiring immediate action, the City may enter the North Hangar to carry
out any work or activities in connection with safety, protection or preservation of the North Hangar
or aircraft stored within
9. Alterations: Tenant covenants and agrees not to install any fixtures or make any alterations,
additions or improvements to the Hangar without the prior written approval of the City and such
approval will not be unreasonably withheld. All fixtures installed or additions and improvements made
to the Hangar shall upon completion of such additions and improvements, become the City's property
and shall remain in the Hangar at the termination of this Agreement, however terminated, without
compensation or payment to Tenant.
10. Insurance: Tenant agrees to maintain, at its own expense, for the benefit of itself and the City
as an additional insured, liability insurance for property damage or personal injury or death arising
as a result of Tenant's occupation of the Leased Premises:
Amounts
$250,000.00 For each person
$500,000.00 For each single occurrence for bodily injury or
death
$100,000.00 For injury to or destruction of property for
each single occurrence
within the damage limits of Section 101.023(c) of the Texas Civil Practice and Remedies Code, with
one or more insurance companies authorized to transact business in Texas and approved by the City.
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This insurance shall be "occurrence" based. Prior to the commencement of this Agreement, Tenant
shall deliver to the City certificates or binders evidencing the existence of the insurance required
herein. Such policy or policies shall name both Tenant and the City as insured. The policy or policies
shall provide that any loss or damages to buildings, structures or improvements shall be payable to
the City of Beaumont.
11. Casualty: In the event the Hangar or the means of access thereto shall be damaged by any
cause, the rent payable hereunder shall not abate, provided that the Hangar is not untenantable, as
determined by the City's Building Official, and the rent shall abate for the period during which
such repairs are being made, provided the damage was not caused by the acts of omission of
Tenant, its employees, agents or invitees in which case the rent shall not abate. If the Hangar is
rendered untenantable and the City elects not to repair the Hangar, this Agreement shall terminate.
12. Indemnity: Tenant agrees to indemnify and hold the City, its officers and employees, harmless
from and against any and all claims, demands costs and expenses, including reasonable attorney's
fees for the defense of such claims and demands arising from the conduct or management of the
Tenant's activities on the Leased Premises or from any act of negligence of Tenant, its agents,
contractors, licensees or invitees in or about the Leased Premises, whether such damage or injury
arises from the acts of omission of Tenant, its agents, contractors, licensees or invitees solely or
in conjunction with any other person, including the City.
13. Force Majeure: The City shall not be liable for its failure to perform this Agreement or any
loss, injury, damage or delay of any nature whatsoever resulting therefrom caused by an Act of
God, fire, flood, accident, strike, labor dispute, riot, insurrection, war or any other cause beyond
the City's control.
14. Governing Law: This Agreement shall be construed in accordance with the laws of the State
of Texas. Venue of any disputes shall be in a court of competent jurisdiction in Jefferson County,
Texas.
15. Relationship of Parties: The relationship between the City and Tenant shall always and only
be that of the City and Tenant. Tenant shall never, at any time during the term of this Agreement,
become the agent of the City and the City shall not be responsible for the acts of omission of
Tenant, its employees or agents.
16. Remedies Cumulative: The rights and remedies, with respect to any of the terms and
conditions of this agreement, shall be cumulative and not exclusive, and shall be in addition to all
other rights and remedies available to either party at law or in equity.
17. Notices: Any notice given by one party to the other in connection with this Agreement shall be
in writing and shall be sent by certified or registered mail, return receipt requested:
a. If to the City, addressed to:
Beaumont Municipal Airport Manager
Finance Department
P.O. Box 3827
Beaumont, TX 77704
b. If to Tenant, addressed to:
Tenant:
Address:
City:
State:
Zip Code:
Notices shall be deemed to have been received on the date of receipt, as shown on the return
receipt.
Each Tenant shall provide the following additional contact information:
Home
Cell
Work Phone: Fax Phone:
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E-mail
Billing address, if different from above:
City:
State: ZIP:
18. Integration: This Agreement constitutes the entire Agreement between the parties, as of its
effective date, and supersedes all prior independent agreements between the parties related to the
leasing of the Hangar. Any change or modification hereof must be in writing, signed by both
parties.
19. Waiver: The waiver by either party of any covenant or condition of this Agreement shall not
thereafter preclude such party from demanding performance in accordance with the terms hereof.
20. Successors Bound: This Agreement shall be binding on and shall inure to the benefit of
heirs, legal representatives, successors and assigns of the parties hereto.
21. Severability: If a provision hereof shall be finally declared void or illegal by any court or
administrative agency having jurisdiction over the parties to this Agreement, the entire Agreement
shall not be void, but the remaining provisions shall continue in effect as nearly as possible in
accordance with the original intent of parties.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year
written below.
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Date:
Kyle Hayes, City Manager
Tenant: Modern Industrial Services
Printed Name
ma
Date:
H
Signature