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Res 162-94 10/18/1994ti RESOLUTION NO. I (D A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDMENT TO THE FIXED BASE OPERATOR'S AGREEMENT WITH SOUTHERN AVIATION OF TEXAS, INC. ; FINDING AND DETERMINING THAT THE MEETING AT WHICH THIS RESOLUTION WAS DISCUSSED WAS OPEN TO THE PUBLIC AS REQUIRED BY LAW. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS: SECTION 1. That the City Manager be and is hereby authorized to execute on behalf of the City of Wichita Falls a Second Amendment to the Fixed Base Operator's Agreement and Aircraft Fuel Servicing Contract with Southern Aviation of Texas, Inc. , in accordance with the terms and conditions of said amendment, attached hereto and made a part hereof for all purposes. SECTION 2 . It is hereby officially found and determined that the meeting at which this resolution was passed was open to the public as required by law. PASSED AND APPROVED this the 18th day of October, 1994. M A Y O R ATTEST: City Clerk SECOND AMENDMENT TO FIXED BASE OPERATOR'S AGREEMENT AND AIRCRAFT FUEL SERVICING CONTRACT This Second Amendment to Fixed Base Operator's Agreement and Aircraft Fuel Servicing Contract, made and entered into this the day of 1994, by and between the City of Wichita Falls, Texas, hereinafter called City, " and Southern Aviation of Texas, Inc. , hereinafter called "Lessee, " WITNESSETH: WHEREAS, heretofore the City and Lessee entered into a Fixed Base Operator's Agreement and Aircraft Fuel Servicing Contract, hereinafter called "Contract, " dated October 17, 1977, and effective as of October 1, 1977, and the parties desire to make a second amendment to such Contract. NOW, THEREFORE, for and in consideration of the mutual benefits to be derived by the parties hereto, City and Lessee do hereby agree as follows: 1. Article XI of said Contract is amended to read as follows: ARTICLE XI: Maintenance During the term of this lease, City will be responsible for all major structural maintenance and repair of buildings and fuel facilities. 2 Lessee shall pay for maintenance needed because of ordinary wear and tear, including painting of interior and exterior of buildings as required. Lessee will pay for any repairs needed on the buildings and fuel facilities due to its negligence or damages caused by Lessee's operations, but only to the extent such repairs are not covered by the fire and extended coverage insurance which is to be provided hereunder by the City. If Lessee does not perform the required maintenance and repairs within sixty (60) days of a written request made by the Airport Manager, the City reserves the right to enter upon the premises and perform the necessary work at Lessee's expense. City shall be responsible for payment of all utilities natural gas, electricity, water and sewer) applying only to the function of the Administration Building; however, Lessee shall bear the sole cost of natural gas and electric service to the hangar areas. Lessee shall not make or permit any additions, improvements or alterations to the property which constitute any structural change or changes without prior written consent of City. The request for such consent shall be in writing and shall have plans of the proposed changes attached. Any additions or improvements made with consent of City shall be solely at the expense of Lessee and, unless such consent provides otherwise, title to the addition or improvement shall 3 at all times remain in City and such additions and improvements shall be subject to all terms and conditions of this instrument. Lessee agrees to hold the City harmless from mechanic's and materialman's liens arising from any additions, improvements, repairs or alterations effected by Lessee. " 2. Article XVII of said Contract is amended to read as follows: ARTICLE XVII: Insurance City agrees to maintain fire and extended coverage on all buildings and fuel facilities based upon full replacement value. City agrees to provide said insurance at no cost to Lessee and name Lessee as coinsured on said policy of insurance, or arrange with its underwriters to provide a waiver of subrogation in favor of a Lessee under said policy. City agrees to provide a certificate of insurance to Lessee annually confirming such coverage and showing the deductible applicable. Lessee shall secure public liability and property damage insurance, including product liability insurance, in which City shall be named a joint assured with Lessee. Such policies of insurance shall protect City and Lessee against any and all liability for death, injury, loss or damage against which Lessee has elsewhere in this agreement undertaken to save and hold the City, and its authorized agents, officers, representatives and employees harmless from 4 and against any and all penalties, liability and annoyance and loss resulting from claims or court action of any nature and arising directly or indirectly out of the acts of Lessee, its agents, servants, guests, employees, business visitors or others under this agreement or by result of any act or omission of such persons. Such policies shall be placed with a company authorized to do business in the State of Texas and shall have not less than the following limits: Comprehensive Public Liability (including Products Liability) for Bodily Injury (each occurrence) $300, 000. 00 each occurrence/$300, 000. 00 aggregate. Property Damage $300, 000. 00 each occurrence aggregate. Aircraft Liability For owned aircraft, single limit Bodily Injury and Property Damage of $1, 000, 000.00, including passenger coverage. Student/Renter's Liability 100, 000. 00 each occurrence (required only if Lessee provides renting services and/or student training services. ) Hangar Keeper's Liability 100,000. 00 each occurrence. Motor Vehicle Liability Bodily Injury (each occurrence) $250, 000. 00 each person/$500,000. 00 each occurrence. Property Damage (each occurrence) $300, 000. 00. 5 The amounts of said insurance shall not be deemed a limitation of Lessee's agreement to save and hold the City harmless, and if Lessee becomes liability for an amount in excess of the insurance, Lessee will save and hold the City harmless as the holder thereof. Copies of all such policies of insurance shall be delivered to City. " 3 . Article XXVIII of said Contract is amended to read as follows: ARTICLE XXVIII: Cessation of Operations Lessee shall, in case of fire or other casualty, give immediate notice in writing to City who shall thereupon cause the damage to be repaired as soon as practicable consistent with contractual provisions with casualty insurance policies, provided materials, supplies and labor are reasonably available; if any portion of the premises is rendered unfit for occupancy, the rent shall be apportioned for the period of time required to make the repairs, according to the part of the premises, if any, which remains usable by Lessee. If a majority of the leased area is destroyed, the City's obligation to repair shall be limited to the fire or other casualty policy limit. If the cost of repair is able the policy limit and the Lessee is unable or unwilling to cover those additional costs, then the City shall have the right to cancel the lease. " r 6 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed as of the day and year first above written. City of Wichita Falls, Texas By: James Berzina, City Manager ATTEST: City Clerk Approved as to Form: City Attorney SOUTHERN AVIATION OF TEXAS, INC. By: President ATTEST: Secretary