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HomeMy WebLinkAboutRES 21-137RESOLUTION NO. 21-137 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 Curtiss & Son for property located at the Beaumont Municipal Airport, 455 Keith Road. 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 15th day of June, 2021. - M16yor Becky Ames - 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 , 20 by and between the City of Beaumont (the "City") and Curtiss & Son (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, a portion of the South Hangar (the "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. 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 unless terminated earlier under the terms of the Agreement. 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, the sum of Two Hundred Thirty Dollars ($230)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. EXHIBIT "A" 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 (10") 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 Facilities Director. Water and electric are provided. No trash service is provided. 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. e) 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. d) Under no circumstances, will spray -painting of aircraft or any other property be allowed in Hangar. e) 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. i) Tenant shall always keep the Hangar clean and free of debris. g) 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. h) 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. 3 6. Termination: (a) Either party may terminate this Lease at any time by giving 30 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 time, 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. (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 further 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 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 4 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 Hangar in conformity 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. Upon such occurrence, this agreement shall automatically terminate. Tenant grants the City, or its designee, the authority to enter the 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 individuals on the waiting list maintained by the City. S. 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 Hangar at any reasonable hour to make inspections, replacements, repairs and restorations. The City shall notify the Tenant of intent to enter the leased premises for replacements, repairs or restorations to the premise. In order to allow the Tenant to secure the aircraft in a safe location if necessary. If, in the opinion of the City, an emergency exists requiring immediate action, the City may enter the Hangar to carry out any work or activities in connection with safety, protection or preservation of the Hangar or aircraft stored within 5 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. 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 parry 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: Chief Financial Officer 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 Phone: Cell Work Phone: Fax E-mail Billing address, if different from City: 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 patties have executed this Agreement as of the day and year written below. By: Tenant: Curtiss & Son Kyle Hayes, City Manager Printed Name By Signature