Res 112-82 7/6/1982r
RESOLUTION NO. /2 _ )
RESOLUTION APPROVING FIRST AMENDMENT TO FIXED
LASED OPERATOR' S AGREEMENT AND AIRCRAFT FUEL
SERVICING CONTRACT.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS , TEXAS , THAT:
That certain First Amendment to Fixed Base Operator ' s
Agreement and Aircraft Fuel Servicing Contract , a copy of which
is attached hereto , between the City of Wichita Falls and
Southern Aviation of Texas , Inc. , is hereby approved, and the
City Manager is authorized to execute the same for the City
of Wichita Falls. '
PASSED AND APPROVED this the 6p2X av of
1982 .
M A Y O R
ATTEST :
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3/5/82
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FIRST AMENDMENT TO FIXED BASE OPERATOR'S AGREEMENT
AND AIRCRA_'T FUEL SEI:VICING CONTRACT
This First Amendment to Fixed Base Operator's Agreement
and Aircraft Fuel Servicing Contract made and entered into
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this the day of 1982, 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 first 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:
444042,0040 .0000044, •
1. Article II of said Contract is amended to read as
follows:
ARTICLE II: Term
The term of this lease shall be for a period of two years,
commencing October 1, 1977 and ending September 30, 1979; if
Lessee fulfills its obligation for the two year period, Lessee
shall have an option to extend the lease for an additional three
years; thereafter, Lessee shall have a series of five options to
renew the lease for additional five year terms, and a final
option to renew the lease for a term beginning October 1, 2007
and ending May 14, 2009. Each option shall be conditioned upon
Lessee's having fulfilled its obligations under the Contract,
4pd Lessee may exercise such options by giving City notice thereof
in writing not less than sixty days prior to the end of the
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follows:
ARTICLE III: Rental
Lessee agrees to pay City for the use of the above described
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3/5/32
premises, rights and easements herein provided for an annual
rental of $5,102.30, which rental shall be payable in monthly
installments of $425.23 per month for cacti month during the
term of the lease hereunder, the first payment to be made on
or before November 15, 1977, and successive payments to be made
on or before the 15th day of each succeeding month thereafter.
In addition, Lessee agrees to pay City annual ground rent for
the use of the ground on which will be located the new hangars,
which are to be built by Lessee, at $.02 per square foot of
hangar space.
On October 1, 1987, and at the beginning of each new option
period, all of the rentals set out above shall be subject to
change; such rentals will be increased or decreased in the same
ratio that the costs to the City of operating those portions
of the airport utilized by Lessee are increased or decreased.
At these same times, any additional cost to the City for furnish-
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ing utilities to the Administration Building, as required in
Article XI, will be charged to and paid by Lessee to City.
In addition to the above rental payments, Lessee further
covenants and agrees to pay to City a fuel flowage fee of $.04
per gallon, which shall apply to all aircraft fuel sold by Lessee
to all aircraft, except such fuel as is actually delivered by
Lessee to regularly scheduled commercial airlines operating under
contract with City and the first 2,000 gallons of fuel per month
used in Lessee's business aircraft. The fuel flowage fee for
fuel sold during each calendar month shall be paid to City on or
before the 15th day of the succeeding month. This fuel flowage
t s3`#?t*t!a te xi i`fee will increase to $.045 orl Rptoher 1, 1982, to $.05 on
October 1, 1987, to $.055 on October 1, 1992, to $.06 on
October 1, 1997, to $.065 on October 1, 2002 and to $.07 on
In addition to the above rental payments and fgel. fees,
Lessee shall pay to City the following payment: Lessee shall
pay City $35,463.66 over a sixty month period, with interest at
8 1/2 per cent, in accordance with the amortization schedule
5. 32
attached, the first payment being due on or before November 15,
1977, and succeeding payments due on or uerore the 15th day of
each month thereafter. "
3. As part of the consideration for this amendment,
Lessee agrees that it shall build at least 4,800 square feet of
new hangars, at a location to be mutually agreed upon between
Lessee and City. These hangars shall be equal to or better in
quality than the T-hangars which are now located at the airoort.
If Lessee fails to complete the construction of such hangars
by September 30, 1987, this First Amendment shall be voided, and
the Contract shall terminate. Even though this First Amendment
is so voided, all fuel flowage fees theretofore received by
City under paragraph 2 above shall be and remain the property
of City.
4. The plans and specifications for such hangars must be
approved by City prior to construction. Upon completion of con-
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struction of such hangars, the parties will amend the Contract
to include the land under such hangars as part of the Leased Areas. •
5. Upon termination of the Contract on May 14, 20-09, these
hangars will become the property of City. If the Contract is
sooner terminated for any reason, City shall have the election of
either purchasing the hangars for their depreciated book value,
or requiring Lessee to remove them and restore the ground to a
satisfactory condition.
IN WITNESS WHEREOF, the parties hereto have caused this
agreement to be executed as of the day and year first above written.
r tiur :• CITY OF WICHITA FALLS
By:
City Manager
ATTEST:
City Clerk
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4 • ..' fy
3, 5
APPROVED AS TO rOIL'1:
City Attorney
SOUTHERN AVIATION OF TEXAS, INC.
By:
Pres icent
ATTEST:
Secretary