Res 1693 8/5/1975RESOLUTION NO.
Mr/
RESOLUTION APPROVING LEASES AT WICHITA FALLS
MUNICIPAL AIRPORT WITH HERTZ , AVIS AND NATIONAL
RENTAL CAR AGENCIES.
BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF
WICHITA FALLS, TEXAS , THAT:
Leases at Wichita Falls Municipal Airport, on the lease
agreement form attached hereto, with Robert M. Moore (Hertz
licensee) , W. B. Owen (Avis licensee) and C. O. Morgan (National
licensee) , providing for space for the operation of rental car
agencies , are hereby approved, and the City Manager is authorized
to execute such leases for the City of Wichita Falls .
PASSED AND APPROVED this the 5th day of August, 1975.
M A Y O
ATTEST:
CZ: y
CITY CLERK
THE STATE OF TEXAS
C
KNOW ALL MEN BY THESE PRESENTS:COUNTY OF WICHITA
RENTAL CAR LEASE AGREEMENT
THIS AGREEMENT entered into this day of
1975, by and between the City of Wichita Falls, Texas , hereinafter called
City or Lessor, and
hereinafter called Lessee.
W I T N E S S E T H :
WHEREAS, Lessor is the operator of an Airport located in Wichita
Falls , Wichita County, Texas, known as the Wichita Falls Municipal Airport;
hereinafter called Airport; and,
WHEREAS, passenger automobile rental services at the Airport are
essential for proper accommodation of passengers arriving and departing
from said Airport; and,
WHEREAS, the City desires to make said services available at the
Airport; and,
WHEREAS, Lessee is desirous of operating a rental car concession
at the Airport; and, in connection therewith , proposes to furnish clean,
late model cars to be kept at the Airport for the use of airline passengers
and others.
NOW, THEREFORE, in consideration of mutual covenants , promises,es,
and agreements herein contained, the said parties hereby convenant, promise
and agree with each other as follows :
ARTICLE I.
Premises
1 . Lessor does hereby grant to Lessee a non-exclusive rental car
concession, along with others, at the airport and does demise and lease
to Lessee the space in the Terminal Building at the Airport outlined in
red on the plat attached hereto and designatedg as Exhibit A The parties
covenant and agree that the City, at its sole expense, after giving sixty
60) days notice in writing, may relocate the Lessee' s premises in the
in the Terminal Building if, in the opinion of the Airport Manager, overall
service to the public shall be improved by such relocation.
2. Lessor leases to Lessee two ready car parking spaces, which
shall be used by Lessee for the parking of cars which are ready for delivery
to its car rental atrons.p Lessee shall provide markers for these ready car
parking spaces. The Airport Manager will assign these spaces to Lessee.
3. Lessor leases to Lessee certain rental car storage spaces in
the storage area at the Airport. There are forty (40) storage spaces located
north of the terminal parking area. Ten storage spaces are allocated to a
Lessee. The assigned location will be decided by the four Lessees concerned,
through mutual agreement.
4. The location of the ready car parking spaces and the rental car
111 storage-spaces -are-shown on Exhibit "B".
5. Included in the rights granted is that of arranging at the Air-
port for reservation services for outgoing passengers using the airport for
use of such passengers in making reservations at a destination where automobile
rental service is furnished by Lessee or members of the system to which Lessee
belongs.
ARTICLE II.
Term
Subject to earlier termination as hereinafter provided, the term of
this agreement shall be for a period of three (3) years , commencing on the
first day of July, 1975, and terminating on the 30th day of June, 1978.
ARTICLE III .
Surrender of Possession
No notice to cease operations or to quit possession of the leased
premises at the expiration date of the Term of this Agreement shall be neces-
sary. Lessee convenants and agrees that at the expiration date of the Term
of this Agreement, or at the earlier termination thereof, it will peacefully
surrender possession of the Leased Premises and any improvements thereon, in
good condition, reasonable wear and tear, acts of God, and other casualties
excepted, and the City shall have the right to take possession of the Leased
Premises with or without due process of law.
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ARTICLE IV.
Rental
1 . Lessee agrees to pay an annual concession fee for the rights
and privileges herein granted by the City, as follows:
A minimum concession fee of $268.00 per month for the first
year of the lease; for the second and third years such
minimum concession fee shall be adjusted in proportion to
the increase or decrease in the combined gross revenues of
all Airport rental car concessions over the preceding twelve
12) month period, provided that such increase or decrease
shall not exceed ten percent (10%) ; or, ten percent (10%) of
the Lessee's annual gross revenues as herein defined, which-
ever is greater.
2. Lessee shall submit by the twentieth (20th) day following each
month of operation hereunder, an accurate statement of the Gross Revenues
for the preceding month and simultaneously therewith shall pay the City the
greater of 1 ) Ten Percent of the Gross Revenues 2) 1/12th of the then
applicable Minimum Annual Concession Fee. The aforementioned statement of
Gross Revenues shall be certified by a responsible officer of the Lessee.
3. Within sixty (60) days after the close of each contract year
hereunder, Lessee shall furnish to City a sworn statement, certified by an
JIindependent Certified Public Accountant who shall not be a member of Lessee's
firm or staff, showing the total of Gross Revenue at the Airport for said
contract year. If the aggregate payments made for any contract year hereunder
shall exceed the greater of 1 ) the Minimum Annual Concession Fee, or 2) ten
percent (10%) of said Gross Revenues during such contract year, the excess
balance shall be credited to Lessee's account and applied against one or more
of the next succeeding monthly payments during the next ensuing contract year,
if there is one, as City may elect. The City shall repay such excess Conces-
sion Fee payments in cash to the Lessee if this Agreement shall be terminated.
4. Definition of Gross Revenue: "Gross Revenue" as used herein,
shall mean all time and mileage charges due and payable to the Lessee from
the operation of its automobile rental service at the Airport, but shall not
include sums recovered from insurance or otherwise for damage to automobiles
or other property, nor any amounts paid by customers to Lessee and separately
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billed as additional charges for waiver by Lessee of its rights to recover
damages from its customers for damages to or destruction of the vehicle
rented, nor any tax levied by any competent governmental authority which
is separately stated and collected from Lessee' s customers. Except as
otherwise provided herein, Gross Revenues shall include all time and mileage
charges due and payable to the Lessee on all vehicles which are rented at
or taken by a customer from the Airport regardless of what9t section or estab-
lishment of Lessee may receive the automobile or the rent therefor upon return
of the automobile by the customer including vehicles taken by a customer in
exchange for a vehicle originally rented at or taken by customer from the
Airport.
5. It is understood that Lessee may possess a U-Drive-ItPt franchise
to operate from other locations within the City and that revenues from such
operation are excluded from Lessee's Gross Revenues. It shall be expressly
understood, however, that revenues derived from the rental of any vehicle
taken from the Airport and delivered to a customer off the Airport shall be
included in Lessee' s Gross Revenues , regardless of the location at which such
vehicle is delivered if the rental contract is consummated at the Airport.
6. The Lessee shall have the right to conduct part of its operation
on a credit basis ; provided, however, the risk of such operation shall be
borne solely by the Lessee; and the Lessee shall report all income, both cash
and credit, in its monthly statements of Gross Revenue. Credit given to
Lessee's customers for such things as out-of-pocket purchase for gas , oil , or
emergency services , and deposits regardless of where made, shall be included
in computing Gross Revenues.
7. The term "Gross Revenues" , as used herein, shall also include, in
addition to the above, amounts which would be due to the Lessee on the basis
of furnishing an automobile to the user complete with motor fuel , normal
primary liability insurance coverage, and other items customarily supplied by
other automobile rental agencies at the Airport.
8. Any moneys recovered from insurance companies by Lessee for
damage to Lessee's property, or sums recovered through insurance or otherwise
Ifor damage to vehicles , shall be excluded from Gross Revenues. Federal , State,
County, and municipal sales taxes or other similar taxes separately stated and
collected from customers now or hereafter levied or imposed shall likewise be
excluded from "Gross Revenues". No deductions shall be allowed from "Gross
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Revenues" for the payment of State franchise taxes or taxes levied on con-
cession activities, facilities, equipment or real or personal property of
Lessee nor for the payment of such City ad valorem taxes and license fees
as required by the operation of a Rental Car franchise at a location other
than the Airport. The Lessee may grant local or national discounts to
customers.
9. In addition to the annual concession fee, Lessee shall pay City
for rental of its car storage spaces at the rate of $3.00 per space per
month, which shall be paid monthly by the 20th day following each month of
JIthe lease.
JI ARTICLE V.
Records
1 . Lessee shall at all times during the term hereof keep true,
accurate, complete and auditable records, books and accounts, in a form
satisfactory to the City, of all business conducted by it at the Airport,
and Lessee further agrees that the City shall have the right, through its
li duly authorized agents or representatives, to examine and audit all perti-
nent books, accounts and records at any and all reasonable times for the
purpose of determining the accuracy of the reports required to be made by
the Lessee under the provisions of this Agreement. All airport rental con-
Ailtracts shall be executed on appropriately marked and numerically sequenced
forms of Lessee.
2. Articles or services furnished to any person in payment of ex-
change for value received from such other person, shall be deemed to be a
cash sale at market value within the meaning of this Article. The making of
any willfully false reports on revenue by Lessee shall be grounds for the
immediate cancellation and termination of this Agreement at the option of
the City.
ARTICLE VI .
Taxes , Fees, Licenses
Lessee covenants and agrees to pay promptly all lawful general
ill 'taxes , special assessments, excises , license fees , permit fees , and utility
service charges of whatever nature, applicable to its operation at the Air-
port and to take out and keep current all licenses , municipal , state or
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federal , required for the conduct of its business at and upon the Airport,
and further covenants and agrees not to permit any .of said taxes, assess-
ments , excises, fees or charges to become delinquent.
ARTICLE VII.
Late Rental Penalty
All unpaid rent and fee money due the City hereunder shall bear a
service charge of one and one-half percent (12%) per month if same is not
paid and received by the City within ten (10) days after its due date, and
Lessee agrees that it shall pay and discharge all costs and expenses includ-
ing attorney's fees incurred or expended by the City in collection of said
delinquent amounts due.
ARTICLE VIII.
Performance Bond
Lessee agrees to furnish a bond to the City in the principle
amount of Two Thousand Dollars ($2,000.00) . Such bond shall guarantee the
payment of the concession fee, rent and Lessee's other obligations to pay
as provided herein. The bond shall be in a form agreeable to the City and
shall be kept in full force and effect during the term hereof.
ARTICLE IX
Exclusive Rights
1 . It is understood and agreed that nothing herein contained shall
be construed to grant or authorize the granting of an exclusive right,
except that Lessee has the exclusive right to use the premises leased herein.
2. City further agrees that during the life of this Agreement it
will not execute a similar Agreement for like services and facilities with
any other company or organization on terms more advantageous than those
accorded to Lessee. This covenant not to grant more favorable terms to
others is hereby acknowledged by the City and Lessee to be limited to 1 ) the
percentage of gross revenues to be paid as a concession fee, 2) the minimum
annual concession fee established by this Agreement, and 3) the number and
size of counter areas in the Terminal Building.
ARTICLE X.
Minimum Standards
1 . Lessee covenants and agrees it shall be open for and shall conduct
business and furnish services at the Airport during the hours of regularly
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scheduled air service to the Airport or at such lesser times that Lessee
and the Airport Manager shall mutually agree upon as being sufficient to
properly serve the needs of the public.
2. Lessee shall furnish high quality, prompt and efficient ser-
e
i
vice hereunder adequate to meet all reasonable demands therefor at the Air-
port; shall furnish said services on a fair, equal and non-discriminatory
ii
basis to all categories of qualified users thereof; and shall charge fair,
reasonable and non-discriminatory prices charged by concessionaires at
airports of comparable passenger enplanements .
3. Lessee shall prepare a schedule of prices and rates. Such
schedules shall be filed in the office of the Airport Manager and printed
copies of such schedule shall be available at the Airport at all times for
k.
the use of Lessee' s customers.
4. Lessee shall provide and maintain the rental automobiles made
IIavailable hereunder at its sole expense, in good operative order, free from
ill known mechanical defects , and in a clean, neat and attractive condition
Jil inside and outside.
5. Lessee shall base at the Airport only new or late model auto-
mobiles in such number as is required by the demand for same.
il6. A co py of the rental agreementent form covering the use of Lessee's
automobiles rented at or delivered to the Airport shall at all times be kept
on file in the office of the Airport Manager.
III7. Lessee covenants that it shall take all reasonable measures in
every proper manner to maintain, develop and increase the business conducted
by it hereunder, the Lessee shall not divert or cause or allow any business
to be diverted from the Airport. Any action taken by Lessee to induce its
patrons to rent or receive vehicles in such a manner and at such places so
illas to diminish the Gross Revenue of the Lessee under this Agreement shall
constitute a material breach hereof and a cause for the termination of this
IIIAgreement by the City.
III8. Lessee' s personnel performing services hereunder shall be dis-
tinctively uniformed, neat, clean and courteous. The Lessee's oral solicita-
tion of business at the Airport shall be confined to its leased area and
Lessee shall prohibit and restrain its agents , servants and employees from
Ililoud, noisy, boisterous or otherwise objectionable promotion of the services
offered, and upon objection from the Airport Manager concerning the conduct
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or appearance of any such persons , shall immediately take all steps
necessary to remove the cause of the objection.
9. Lessee shall not commit any nuisance on the Leased Premises
or Airport nor do or permit to be done anything which may result in the
creation or commission of a nuisance thereon; nor install , maintain or
operate or permit the installation, maintenance or operation on the Leased
Premises of any vending machine or devices to dispense any products whatso-
ever without the written permission of the Airport Manager.
ARTICLE XI .
Maintenance and Improvements
1 . Lessee shall make no material removals, additions or alterations
to its Terminal Building leased premises without the prior written approval
of the Airport Manager. Lessee shall maintain in good repair and in neat
and clean condition all improvements, construction or furniture, furnish-
ings or equipment placed on such premises. Lessee shall be responsible for
the care of the area designated for its use and shall permit no damage to
existing improvements. No spikes, hooks , nails, or any other devices shall
be driven or screwed into the walls , woodwork or other surfaces of the Terminal
Building leased premises.
2. Lessee agrees , at its own expense, to maintain the Terminal Build-
ing leased premises in a neat and orderly condition , free from all danger of
fire and personal injury and to refrain from doing anything to destroy or
damage the Terminal Building leased premises.
3. No sign or advertisement of the Lessee or others shall be affixed,
kept_.or distributed on any part of the Terminal Building leased premises
except only if such color, size, wording, style and material and method of
filattachment
shall be first approved in writing by the Airport Manager. The
City reserves the right to remove, without notice to Lessee and at the expense
of Lessee, all signs or advertisements not having prior approval in writing.
All signs shall be in good taste and shall be for the purpose of either iden-
tifying the premises as being those of the Lessee or providing directions for
Lessee's patrons. No advertisements or rate schedules of the Lessee shall be
posted to public view on the Terminal Building leased remisesP except that
this prohibition shall not prevent the Lessee from displaying for distribution
its ocke -p t sized printed brochures of rate schedules for distribution to the
8-
public. At the expiration of this Agreement, the Lessee shall remove all
its signs or advertisements and restore all points of attachment to conform
to the appearance and condition of the surrounding surfaces.
ARTICLE XII.
Heating, Air Conditioning and Janitorial Services
1 1 . City shall furnish heating and air-conditioning to the Terminal
Building leased premises in such degree as it is furnished to other tenants
in the Terminal Building, provided that the City shall not be liable for any
failure to supply the same when such failure is not due to negligence on its
part. General area light will be furnished by the City through the fixtures
installed for the general lighting of the area of the Terminal Building
leased premises.
2. City shall provide janitor service for the leased premises in the
Terminal Building and shall provide for removal of trash and will keep such
area clean, neat and attractive.
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ARTICLE XIII.
Indemnification
Lessee shall be solely responsible for the conduct of its operators,
agents, employees and representatives, and agrees to indemnify, defend, hold
and save the City, its authorized agents, officers , representatives and em-
ployees , harmless from each and every claim and demand of whatever nature,
an'+ against any and all penalties, liability and annoyance or loss , resulting
from claims or court action of any nature claimed to have arisen directly or
iniirectly out of acts of Lessee, or its agents , servants or employees under
this Agreement or by reason of any act, omission or conduct of such person.
ARTICLE XIV.
Insurance
1 . Lessee agrees to maintain throughout the Term of this Agreement
the following motor vehicle liability insurance:
Bodily Injury 100,000 each person
300,000 each accident
Property Damage 25,000 each accident
2. Lessee shall provide such insurance at its own expense and such
insurance shall be placed with a company authorized to do business in the
state of Texas . 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 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,9 servants,
guests , employees , business visitors or others under this agreement or by
result of any act or omission of such persons.
3. The amounts of such insurance as specified above shall not be
deemed a limitation of Lessee's agreement to save and hold the City harm-
less and if Lessee becomes liable 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.
ARTICLE XV.
City Agent
JI
City hereby designates its Airport Manager, as well as its City
Manager and such official as he may designate, as its official representa-
tive, with the full power to represent City in all dealings with Lessee in
connection with the premises herein leased.
ARTICLE XVI .
Compliance with Rules & Regulations
Lessee shall , at its own expense and cost, comply with all Federal ,
State and local laws , rules , regulations or ordinances, now or hereafter in
effect, which are applicable to its operation at the Airport. Lessee recog-
nizes that the Airport Manager is the representative of the City, and agrees
to cooperate fully with such official to promote the efficient conduct of
operations at the Airport.
ARTICLE XVII.
Inspection
City reserves the right to enter upon the leased premises at any
reasonable time for the purpose of making any inspection of the physical
premises it may deem expedient to the proper enforcement of any of the
covenants or conditions of this Agreement.ement.
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ARTICLE XVIII .
Assignment
Lessee shall not assign or transfer this agreement nor any priv-
ileges hereunder and shall not assign or sublet or mortgage all or any part
Iof the premises leased hereby, whether voluntarily or involuntarily, with-
1 out the prior written consent of the City. If Lessee, without securing
prior written approval of the City, attempts to effect such a transfer,
gassignment, sublease or mortgage, or if a transfer occurs by operation of
law, City may terminate this agreement upon written notice to Lessee. If
Icontrol of Lessee's business or corporation is transferred to other parties
Iby virtue of the sale of stock, without the prior written consent of City,
this shall be considered an assignment of the lease, and City may terminate
Ithis agreement upon written notice to Lessee.
ARTICLE XIX.
Suspension/Termination
1 1 . Lessee understands and agrees that all rights , privileges and
Iinterests acquired herein, following written notice of sixty (60) days ,
may be altered or finally terminated upon payment of just compensation to
ILessee, if such suspension or termination is found by City, acting in good
faith, to be necessary to secure federal financial aid for the development
Iof the Airport.
II2. Should Lessee fail to pay the rent due hereunder within fifteen
15) days after same shall become due, or permit any insurance coverage
required under this agreement to lapse, City shall have the option, without
any legal proceedings or notice, to declare this lease terminated, cancel the
Isame and re-enter and take possession of the premises , and in such event,
ILessee agrees to deliver possession of the same peaceably and relinquish all
rights incident thereto.
3. City shall have the right, but not the obligation, to terminate
this Agreement in its entirety immediately upon the happening of any of the
alfollowing events :
a. Filing of a petition, voluntarily or involuntarily, for
adjudication of Lessee as a bankrupt.
IIb. The making by Lessee of any general assignment for the
benefit of creditors.
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c. The failure by Lessee to perform, keep and observe any
and all of the terms , covenants, and conditions herein
ill
contained on the part of the Lessee to be performed,
JA
kept, or observed after the expiration of fifteen (15)
days from the date written notice has been given to
Lessee by City to correct such default or breach (except,
however, failure of Lessee to provide insurance as re-
quired herein will give City the rightght to terminate this
illlease immediately without the necessity of giving Lessee
15 days written notice) .
4. City may terminate this lease by written notice to Lessee in
Ili the event of the assumption by the United States Government or any author-
ized agency-thereof of the operation, control or use of said Municipal Air-
port, Civil Terminal Building and facilities or any substantial part or parts
thereof in such manner as to prevent the City, for a period of at least ninety
1 III 90) days, from performance of its obligations under the terms , covenants and
illconditions
hereof to be performed, kept and observed by City.
5. No waiver by City at any time of any of the terms, conditions , or
IIIcovenants of this Agreement shall be deemed or taken as a waiver at any time
thereafter of the same, or of any other terms , conditions , or covenants herein
IIIcontained, nor of the strict and prompt performance thereof by Lessee.
illi
6. In the event that the United States Government or any of its
agencies shall occupy the airport or any substantial artp thereof to such an
jillextent as to materially interefere with Lessee's operation, or in the event of
destruction by fire or other cause of all or a material portion of the airport
illor airport facilities , or if Lessee's operations shall for any reason, similar
or dissimilar, be materially interfered with for a period in excess of ninety
90) days , or in the event of any national emergency whey9Y ern there is a cur-
tailment, either by executive decree or legislative action, of the use of
motor vehicles ro airplanes by the general public, or a limitation of the
IIIsupply of gasoline available for general use, then, and in any of those events,
Lessee shall have the right upon written notice to Lessor to terminate this
agreement and Lessee' s further obligations hereunder,or at its option, to
INsuspend this agreement for the periods of such disability.
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7. Also, should Lessee lose his present franchise to operate a
Car Rental Service, or should his license or privilege of operating a rental
car service in the City of Wichita Falls be cancelled by the City, then
Lessee may, at its option, terminate this agreement as of the last day of1
i the month in which such occurs.
itARTICLE XX.
IUntenantable Premises
Lessee shall , in case of fire or other casualty, give immediate
notice in writing to City, who shall thereupon cause the damage to be re-
paired forthwith, provided materials, supplies and labor are reasonably
available; if any portion of the premises is rendered unfit for occupancy,
Ithe rent shall be apportioned for the period of time required to make the
repairs ,p according to the part of the premises, if any, which remains usable
by Lessee. If the entire building shall be destroyed, then within thirty
30) days after the fire or other casualty either Lessor or Lessee may cancel
iiithis lease by notice in writing to the other, effective as of the date of the
iimailing of the written notice, except that the rent shall be apportioned as
of the date of the fire or other casualty.
ARTICLE XXI.
Ill • Notification
Notice to City as herein provided shall be sufficient if written
illnotice. -is served in person or otherwise sent by certified mail to the Airport
IManager, Wichita Falls Municipal Airport, Route 4, Box 72-E, Wichita Falls,
Texas 76301 , or to Lessee if written notice is served in person to
II or otherwise sent by certified
mail to Lessee at
il-
VIor at such other places as the parties may designate in writing.
ARTICLE XXII.
IIInvalid Provision
1 i It is further expressly understood and agreed by and between the
parties hereto that in the event any covenant, condition or provision herein
contained is held to be invalid by any court of competent jurisdiction, the
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invalidity of any such covenant, condition or provision shall in no way
affect any other covenants , conditions or provisions herein contained;
provided, however, that the invalidity of any such covenant, condition or
provision shall not be construed so as to materially prejudice either
City or the Lessee in their respective rights and obligations contained in
the valid covenants, conditions or provisions in this agreement.
ARTICLE XXIII.
Headings
The article and paragraph headings are inserted only as a matter
of convenience and for reference and in no way define, limit or describe
the scope or intent of any provisions of this lease.
IN WITNESS WHEREOF, the parties have caused this agreement to be
executed as of the day and year first above written.
CITY OF WICHITA FALLS
BY:
Gerald G. Fox, City Manager
ATTEST:
I
Wilma J. Thomas, City Clerk
APPROVED AS TO FORM:
I
H. P. Hodge, Jr. , City Attorney
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