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Min 03/19/1974 925 i Wichita Falls, Texas Memorial Auditorium Building March 19, 1974 Items 1 & 2 The Board of Aldermen of the City of Wichita Falls, Texas, met in regular session on the above date in the Council Room of the Memorial Auditorium Building at 10:00 o'clock A.M. , with the following members present: J. Winston Wallander Mayor Harry Campsey X Harrison E. Taylor Lonny Morrison Willard Still X J. C. Boyd, Jr. X Peggy McCullough Gerald Fox City Manager H. P. Hodge, Jr. City Attorney Wilma J. Thomas City Clerk The invocation was given by Alderman Taylor. Mayor Wallander recognized a group of Provisionals of the Junior Service League. Mrs. Rita Rucker expressed their pleasure of being in attendance. Item 3 Moved by Alderman Still that minutes of the meeting held March 5, 1974, be approved. Motion seconded by Alderman Campsey, and carried unanimously. Item 4a A proposed ordinance was presented setting refuse rates on certain properties q , J abutting alley paving projects. 1. i'�• ORDINANCE NO. 2858 ORDINANCE SETTING REFUSE RATES ON CERTAIN PROPERTIES ABUTTING ALLEY PAVING PROJECTS. Moved by Alderman Morrison that Ordinance No. 2858 be passed. Motion seconded by Alderman Campsey, and carried by the following vote: Ayes:Ald.-Campsey, Taylor, Morrison, Still, Boyd, and McCullough Nays: None. Item 4b r A proposed ordinance was presented establishing rates for Texas Electric Service Company. This proposed rate increase had previously been filed with the City Clerk on January 2, 1974. This rate increase would provide a 5.8% increase in revenues for the Wichita Falls system, with a 6.07% rate of return. ORDINANCE NO. 2859 AN ORDINANCE APPROVING CERTAIN RATE SCHEDULES FILED BY TEXAS ELECTRIC SERVICE COMPANY IN THE CITY OF WICHITA FALLS, TEXAS , AND PROVIDING CONDITIONS UNDER WHICH SUCH RATE SCHEDULES MAY BE CHANGED, MODIFIED, AMENDED OR WITHDRAWN. Moved by Alderman Still that Ordinance No. 2859 be passed. Motion seconded by Alderman Campsey, and carried by the following vote: Ayes : Aldermen Campsey, Taylor, Morrison, Still, Boyd, and McCullough Nays : None. 926 Item 4c A proposed ordinance was presented changing the date of the second regular meeting in April. of the Board of Aldermen. ✓ ORDINANCE NO. 2860 ORDINANCE CHANGING THE TIME OF THE SECOND REGULAR MEETING OF THE BOARD OF ALDERMEN IN APRIL TO APRIL 23, 1974. Moved by Alderman Campsey that Ordinance No. 2860 be passed. Motion seconded by Alderwoman McCullough, and carried by the following vote: Ayes : Aldermen Campsey, Taylor, Morrison, Still, Boyd, and McCullough Nays : None. Item 5a r� A proposed resolution was presented approving appraisals to property owners on Kell Freeway project. RESOLUTION NO. 1514 RESOLUTION APPROVING APPRAISAL OF PROPERTIES ON KELL FREEWAY AND AUTHORIZING THEIR PURPOSE OR CONDEMNATION. WHEREAS, it is necessary to acquire the properties hereinafter described for construction of the listed project in the 1967 Capital Improvements Program, and, WHEREAS, such properties have been appraised by independent appraisers em- ployed for this purpose by the Texas State Highway Department, and the amount of the state approved values, as determined from the appraisals, have been studies by the Board of Aldermen, and copies are now in the possession of the Director of Public Works and/or Assistant City Manager. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS , TEXAS , THAT: SECTION NO. 1 The project and properties to be purchased by Warranty Deed are as follows : Kell Freeway - Project 52-380 Warranty Deed Lot 7, Block H, Grainger & Ballow's Addition Part of Lots 12 & 13, Block 2, Boyd 's S/D of Grainger Park Addn. Lot 11, Block 5, Boyd 's S/D of Grainger Park Addn. N. 36 2/3 ft. of Lots B, 25 & 26, Block 8, Bateson Second Addn. N. z of Lots 1, 2 & A, Block 8, Bateson Second Addition Lot 11, Block H. Grainger & Ballow's Addition Lot 11, Block H. Grainger & Ballow's Addition Lot 9, Block H. Grainger & Ballow's Addition Part of Lots 4, 5 & 6, Block 5, Boyd 's S/D of Grainger Park Addn. Pt. of Lots 5 & 6, Block 6, Boy's S/D Grainger Park Lot 3, Block 6, Boyd 's S/D Grainger Park Addn. Combined total of values approved in this resolution ---------------------$22,450.00 SECTION NO. 2 The values of such properties are hereby approved and the City Manager is hereby authorized to purchase in the name of the Texas State Highway Department or the. City of Wichita Falls, by Warranty Deed, such tracts of land as 927 I Item 5a, cont'd. shown on the project right-of-way map. The authorized price to be paid for such tracts are the State approved values as determined from appraisals made by the independent real estate appraisers employed by the Texas State Highway Department. SECTION NO. 3 In the event the City Manager is unable to purchase any such tracts for such approved values, he is hereby authorized and directed to cause to be instituted condemnation proceedings to obtain such tracts in the name of the Texas State Highway Department or the City of Wichita Falls. Moved by Alderman Taylor that Resolution No. 1514 be passed. Motion seconded by Alderman Campsey, and carried by the following vote: Ayes : Aldermen Campsey, Taylor, Morrison, Still, Boyd, and McCullough Nays : None. Alderman Boyd asked if this appraisal information is used for any other pur- pose. The City Manager stated that it is presented to the Tax Department for their use. r Item 5b A proposed rental car lease agreement at Municipal Airport with Budget Rent-A- � Car was discussed. A motion was made by Alderman Still and seconded by Alderman Morrison that Resolution No. 1515 be passed, approving the lease by inserting two alternate pages prepared by the City Attorney in the appropriate places in the contract. Joe Mayo stated that he is in agreement with the proposal authorized by the Council, and that they would like to begin operation on April 1. He explained that they have encountered an insurance problem regarding a fence. They have an agreement with them that they will install dawn to dusk lighting at the six spaces until the fence is installed. Also, this is a partnership, and the names on the lease should be Joe M. Mayo and Joe M. Mayo, Jr. He also stated that if vandalism is excessive then they will not be able to use these spaces, and they would request that they be permitted to move into the employee parking lot in that event. (This portion will not be included in the contract) . RESOLUTION NO. 1515 RESOLUTION APPROVING RENTAL CAR LEASE AGREEMENT AT MUNICIPAL AIRPORT WITH JOE M. MAYO AND JOE M. MAYO, JR. , A COPARTNERS D/B/A BUDGET RENT-A-CAR of WICHITA FALLS. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS, TEXAS, THAT: That certain Rental Car Lease Agreement at Municipal Airport, a copy of which agreement is attached hereto, between the City of Wichita Falls and Joe M. Mayo and Joe M. Mayo, Jr. , copartners, d/b/a Budget Rent-A-Car of Wichita Falls, is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. Moved by Alderman Still that Resolution No. 1515 be passed, inserting the two alternate pages prepared by the City Attorney in the appropriate places in the contract, and to include the names of Joe M. Mayo and Joe M. Mayo, Jr. Also, with the cooperation of the staff that Mr. Mayo be permitted to install insurance re- quired lighting. Motion seconded by Alderman Morrison, and carried by the following vote: Ayes : Aldermen Campsey, Taylor, Morrison, Still, Boyd, and McCullough Nays : None Item 5c A proposed resolution was presented requesting the Corps of Engineers to con- demn flowage easement at Lake Kemp on Gleghorn property. 1 928 Item 5c, cont 'd. ( % RESOLUTION NO. 1516 RESOLUTION REQUESTING THAT UNITED STATES CONDEMN FLOWAGE EASEMENT FOR LAKE KEMP ON LAND OWNED BY WILMER GLEGHORN IN BAYLOR COUNTY, TEXAS. WHEREAS, on October 31st, 1972 the Board of Aldermen adopted Resolution No. 1360, determining the necessity of acquiring a flowage easement from elevation 1,153 feet above mean sea level to elevation 1,163 feet above mean sea level on those certain tracts of land out of the B. R. Milam Survey, Abstract No. 275 and the B. R. Milam Survey, Abstract No. 276, in Baylor County, Texas, being the same land conveyed by Finis J. Hulse and wife to Wilmer Gleghorn by deed recorded in Volume 118, Page 29, Baylor County Deed Records. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF THE CITY OF WICHITA FALLS, TEXAS , THAT: The United States of America, acting through the Army Corps of Engineers is hereby requested to condemn such flowage easement on the above described prop- erty of Wilmer Gleghorn; the City of Wichita Falls and the Wichita County Water Improvement District No. 2 shall together pay all compensation and damages re- covered by the said Wilmer Gleghorn in said condemnation suit, together with all of the costs of such suit; the City of Wichita Falls shall be responsible for 66.11% of such compensation, damages and costs, and it is understood that Wichita County Water Improvement District No. 2 will be responsible for 33.89'/ of same. Moved by Alderman Morrison that Resolution No. 1516 be passed, inserting the percentages of 66.11 as the pro rata share for the City of Wichita Falls , and 33.89 with respect to Wichita County Water Improvement District No. 2. Motion seconded by Alderwoman McCullough, and carried by the following vote: Ayes : Aldermen Campsey, Taylor, Morrison, Still, Boyd, and McCullough Nays : None. Item 5d C1` A proposed resolution was presented approving a water purchase contract with Wichita Valley Water Supply Corporation. The City Manager explained what has happened since February 1972 when the request for raw water was first made. The corporation would construct all-facilitiesneeded for purchase of the raw water. The City Manager stated that he feels it would be in our interest to approve this contract. Alderman Morrison pointed out that he had abstained from participation in the discussion of this matter, and will not vote, because he owns land in this area, and owns stock in Wichita Valley Water Supply Corporation. "RESOLUTION NO. 1517 RESOLUTION APPROVING WATER PURCHASE CONTRACT WITH WICHITA VALLEY WATER SUPPLY CORPORATION. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS , THAT: That certain water purchase contract, a copy of wichita is attached hereto, between the City of Wichita Falls and Wichita Valley Water Supply Corporation, whereby the City will sell raw water from Lake Kickapoo to the Wichita Valley Water Supply Corporation, is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. Moved by Alderman Campsey that Resolution No. 1517 be passed. Motion seconded by Alderman Taylor, and carried by the following vote: Ayes : Aldermen Campsey, Taylor, Still, Boyd, and McCullough Nays : None. 929 r Item 5e ` A proposed resolution was presented approving a lease with Tricon International ii' `/ Airlines, Inc. RESOLUTION NO. 1518 i RESOLUTION APPROVING AGREEMENT AND LEASE AT MUNICIPAL AIRPORT WITH TRICON INTERNATIONAL AIRLINES , INC. BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY OF WICHITA FALLS , TEXAS, THAT: That certain agreement and lease of premises at Municipal Airport, a copy of such agreement and lease being attached hereto, between the City of Wichita Falls and Tricon International Airlines, Inc. is hereby approved, and the City Manager is authorized to execute the same for the City of Wichita Falls. Moved by Alderman Morrison that Resolution No. 1518 be passed. Motion seconded by Alderman Still. The question was brought up as to why this matter was mentioned to the Chairman of the Aviation Advisory Board, and not to the whole board. The City Manager explained that it was done as a matter of courtesy, since we have the authority to handle these matters administratively. The motion was carried by the following vote: Ayes : Aldermen Campsey, Taylor, Morrison, Still, Boyd, and McCullough Nays : None. j Item 6e Permission was requested to advertise for an estimated annual supply of the following chemicals for Water Purification Department. f, a. 100,000 lbs. sodium hexametaphosphate b. 580 tons .�(;errous sulphate (copperous) c. 464,000 lbs. silicate of soda d. 1,680 tons quicklime Moved by Alderwoman McCullough that authority be granted to advertise for bids as requested. Motion seconded by Alderman Morrison, and carried unanimously. i Item 7 �r ` Moved by Alderman Still that minutes of the meetings of the following boards be received. a. Plumbing Advisory Board - March 6, 1974 b. Board of Electrical Examiners - March 12, 1974 c. Aviation Advisory Board - February 20, 1974 Motion seconded by Alderman Boyd, and carried unanimously. r Item 8 Moved by Alderman Campsey that the firm of Jarratt, Cocke, and Tillery be appointed as independent auditors of the City of Wichita Falls for the fiscal year ending September 30, 1974. Motion seconded by Alderman Taylor, and carried unanimously. Alderman Boyd mentioned that a portion of our street lights are alternately off, and that someone had suggested that we use some of these fixtures on new streets V 930 when they are constructed, rather than purchase others. Eddie Watson, with Texas Electric Service Company, stated that of the 310 street lights turned off, Texas Electric owns 200, and the remaining 110 are owned by the State. Most of these fixtures could be used elsewhere. He and the City Manager agreed that it was im- portant to try to determine if this situation is of a short or long term nature before anything is done. The City Manager mentioned that some of these standards have dual lights, and one of them may be on. J — — — — — — — — — I Alderman Boyd commented on the morale report concerning the police and fire departments. He congratulated each member of the committee, stating that he accepted their :findings as true and valid, and urged all other citizens to do so. He stated that he had previously believed that the position of Director of Public Safety was an organizational mistake. The committee report does not point out any connection between the Department of Public Safety and the morale problem. He urged that they seek out and eliminate the real problem. He feels that the Chairman of the committee should be consulted as to whether he has any views on how to handle the morale problem. Alderman Morrison pointed out that the committee is in no position to address themselves to that problem. He suggested that it be placed on the agenda at the April 23 meeting, or as soon thereafter as possible, for a full discussion. Alderwoman McCullough thanked Alderman Boyd for his remarks, and stated that she concurs with Alderman Morrison's suggestions. Alderman Morrison urged citizens to appear at the hearing tonight on a bi- centennial activities center, and to share their views on the design and uses to be satisfied. The meeting adjourned at 11 :05/A.M. PASSED AND APPROVED this day of 1974. Mayor - ATTEST: -� City Clerk . t „ . - AGREEMENT AND LEASE OF PREMISES AT WICHITA FALLS MUNICIPAL AIRPORT THIS AGREEMENT, made and entered into as of the 19th day of March 1974 by and between the City of Wichita Falls, a municipal corporation of the State of Texas (hereinafter referred to as the 'City') and Tricon International Airlines, Inc. , a corporation organized and existing under the laws of the State of Texas (hereinafter referred to as the 'Airline') . W I T N E S S E T H WHEREAS, the United• States Air Force owns and operates a military air field known as Sheppard Air Force Base located in the County of Wichita, State of Texas which Air Force Base depicted in Exhibit A; and WHEREAS, the City leases a tract of land on Sheppard Air Force Base on' which Wichita Falls Municipal Airport is located, which airport is shown in Exhibit I3. WHEREAS, the City has entered into an Agreement with the United States Air Force which permits upon specified terms and under specified conditions the use by civil aircraft of Sheppard Air Force Base and necessary appurtenances at the Air Force Base; and WHEREAS, the Airline is engaged in the business of Interstate air transportation with respect to cargo, freight and property; and WHEREAS, the parties hereto desire to enter into an agreement for the use of premises and facilities on said Air Force Base and into an agreement for the lease and use of premises and facilities at said Airport all as more fully hereinafter set forth; NOW, THERE1,0103, the parties hereto, for and in consideration of the rents, covenants and agreements contained herein, agree as follows: ARTICLE I - Premises City does hereby demise and let unto Airline, and Airline does hereby hire and take from City, the following premises and facilities, rights, licenses and privileges on and in connection with the property and improvements specified at said Air Force Base and Airport, as more particularly hereinafter set forth: (A) Use of Air Force Base and Airport Areas : The use, as authorized by that certain "Department of the Air Force Lease of Property on Sheppard Air Force Base, T-exas" between the Secretary of the Air Force and the City of Wichita Falls, Texas, effective May 1S, 1959 and designated Contract DA-41-443-eng-5551 which is incorporated herein by reference, in common with others authorized so to do, of said Air Force Base and Airport, which use shall consist of: (1) The operation of a transportation system by aircraft for the carriage of cargo, freight and property hereinafter referred to as 'air transportation' . (2) The repairing, maintaining, conditioning, servicing and parking of aircraft or other equipment of Airline. (3) The training at the Air Force Base and Airport of person- nel in the employ of or to be employed by Airline, and the testing of air- craft and other equipment, it being understood that such training and testing shall be incident to the operation by Airline of its air transportation system; (4) The right to load and unload cargo, freight and property at said Airport by such motor cars, trucks or other means of conveyance as Airline may desire or require in the operation of its air transportation system, with the right to designate the particular carrier or carriers who shall or may transport said cargo, freight and property to and from the Airport; provided, however, that such carrier or carriers may be required by City to comply with rules and regulations of City and to pay to City such fees as are provided for in Article V hereof; and provided further that the foregoing shall not be construed as imposing upon City any obligation other than the granting of such right. All such loading and unloading operations shall be conducted in accordance with rules and regulations of the City; (5) The right to install and operate advertising signs on the leased premises, the general type, quantity and design of such signs to be subject to the approval of City's Airport Manager. (6) The rights and privileges granted Airline under this Article I with respect to the performance of ground services and activity -2- in connection with its air transportation operations at the Air Force Base and Airport may be exercised by Airline for and on behalf of any other air transportation company or companies authorized by City to use the Air Force Base and Airport. Such rights and privileges shall be deemed to include all activities incidental to the receipt, dispatch, loading, un- loading and storage of cargo, freight and property, and all ramp, repair, maintenance and dispatching services incidental to the operation of air- craft at the Air Force .Base and Airport and such storage and fuel servicing as shall be authorized or furnished by Fixed Base Operators having a contract with City. Such rights and privileges shall be deemed to include all air- line aircraft operated, as well as, owned by Airline, subject to the limita- tions specified in Article VII , provided however that the provisions of this contract shall not be construed as authorizing Charter services by Airline and such services are expressly prohibited from the Airport except , those Charter services by Airline utilizing aircraft used in Airlines' regularly scheduled cargo services to the Airport and such Charter services as authorized above shall be limited to Cargo only. (B) Cargo Loading Dock: The use, in common with other scheduled airlines of the outside loading dock. (C) Space in Freight Building: Tile, use of approximately 342 square feet of space within said building as depicted on Exhibit C. Airline shall be authorized to provide a fenced area within its authorized space, however, Airline understands and agrees that vehicular and pedestrian access will be provided to users of such Freight Building. Plans and speci- ficiations for such fencing as Airline shall desire to erect shall be subject to the approval of the Airport Manager. (D) Parking Space: The use by Airline employees, in common with others, of such vehicular parking space as is provided for employees subject to the Rules and Regulations as are applicable to parking at said Airport. (E) Right of Access, Ingress and Egress : The full, free and un- restricted access and ingress to and egress from the premises outlined in (A) through (D) above for Airline, its employees, guests patrons, invitees, suppliers of materials and furnishers of service, its or their aircraft, equipment, vehicles, machinery and other property. -3- ARTICLE II - Term Airline shall have and hold said premises , facilities, rights, licenses and privileges set forth. in Paragraphs (A) to (E) inclusive of ARTICLE I for an initial term of five (5) years, beginning April 1, 1974 and ending March 30, 1979, except that the rents and fees hereinafter provided in ARTICLE: III , Paragraphs (A) thru (B) shall be subject to renegotiation upon thirty (30) days written notice by City after March 30, 1976. On expiration of this initial five (5) year term, Airline shall have two successive one (1) year options to extend this lease agreement. ARTICLE III - Landing, Ramp and Terminal fees (A) Landing Fees : Airline shall pay City $2. 50 per scheduled 'trip landing as reflected in the schedule published by City provided that should airline utilize aircraft of over 30,000 pounds in such service, Airline, in lieu of the above specified fee, shall pay to City a landing fee at the rate currently charged other airlines serving the Airport. This fee shall further be subject to renegotiation, if requested by City in writing, at any time that the United States terminates use of Sheppard Air Force Base as a military installation, as provided for in section 25g of Contract DA-41-443-eng-5551. In this event, the parties agree to attempt, in good faith and immediately, to reach an agreement as to the landing fee to be paid by Airline, effective from and after, the date City assumes responsibility for control and maintenance of the land rig areas, runways, taxiways and necessary appurtenances. In the event the parties are unable to reach such agreement within sixty (60) days from the date of receipt by Airline of City's request for renegotiation, City may cancel and terminate this agreement by thirty (30) days written notice to Airline. The Airline shall, at least five (5) days in advance of any schedule change, submit to City a published schedule showing the numbers of Airline's scheduled trip landings , as outlined above at the Air Force Base. City shall, following the cnd of each month, transmit to Airline a statement of rentals, fees and charges incurred by Airline during said month as above and hereinafter provided and same shall be paid by Airline within ten (10) days following receipt of such statement. All unpaid monies due the City hereunder shall bear a service charge of one and one-half (V2%) percent -4- per month if same is not paid and received by City within ten (10) days after receipt of City's monthly statement. Airline agrees that it shall pay and discharge all costs and expenses including attorney's fees incurred or expended by the City in collection of said delinquent amounts due. (B) Rental With Respect to Terminal Freight Building Airline will pay the City a monthly rental for the interior cargo space .cited in Article I (C) above at the rate of $3.47 per square foot per annum; which rental shall be paid monthly. Terminal Freight Building Monthly Rental : Monthly Monthly Charges Charges Effective Effective Apr 1, 1974 Jul 1 , 1974 Freight Space (342 sf @ $2.50/sf/a) $71. 25 - (342 sf @ $3.47/sf/a) - $98.89. ARTICLE 1V - Right To Lease Property City represents that it has the right, power and authority to enter into this agreement with respect to said property specified herein as the Air Force base and Airport, together with all the facilities. ARTICLE V - Other Charges or Ices It is agreed that no charges, fees, or tolls, other than herein expressly provided for, shall be charged or collected by City or by any other person, firm or corporation presently or in the future having any interest in said Air Force Base and Airport or any part thereof, except as to the right of Fixed Base Operators operating under contract with City to charge for storage, gasoline, fuel or services from Airline; provided however, that the City may levy a reasonable charge against any taxi, limousine' or other company or operator carrying cargo, property or freight to and from the Airport. It shall be expressly understood, however, that no charge shall be assessed against Airline for .its transportation of cargo, property or freight by its own vehicles. -S- 1. ARTICLE VI - Maintenance and Operation of Airport City agrees that it will maintain the said Airport and appurtenances in such manner as to comply with all appropriate local , State and Federal regulatory authorities having jurisdiction thereof. City agrees (luring the' term of this agreement to maintain .and operate and to keep in good repair said airport, including Terminal Freight Building and the appurtenances, .facilities and services now or hereafter connected therewith, including all appurtenances and facilities which the City should undertake to construct, furnish or supply and to keep said Airport free from obstructions for the safe convenient and proper use thereof by Airline. It is expressly understood that City will provide and supply adequate heat, lights and electricity within the Terminal Freight Building. ARTICLE VII - Rules And Regulations Airline covenants and agrees to observe and obey and to require all its employees to observe and obey, all reasonable rul.es, and regulations which may from time to time during the term hereof be promulgated and en- forced by City for the conduct and operation of the Air Force Base and Airport. Airline shall park, load and unload its aircraft at the extreme east side of the Public Ramp provided that should Airline utilize air- craft over 25,000 pounds, the adjacent portion of the commercial ramp may be utilized. Airline shall provide its own personnel to transport, load and unload cargo, freight and property to/from and between the Freight Building and its aircraft. ARTICLE VII1 - Damage Or Destruction Of Building If any building in which Airline occupies exclusive space here- under shall be partially damaged by fire or other casualty but not rendered untenantable, the same may be repaired by the City at its own cost and ex- pense. If the damage shall be so extensive as to render the premises un- tenantable the rent payable hereunder with respect to Airline's exclusive space and the services therewith shall be proportionately paid up to the time of such damage and shall thenceforth cease until such time as the I -6- 1 premises shall be in order or until suitable space be provided. In case said building is completely destroyed by fire or other casualty or so damaged that it will. remain untenantable for more than sixty (60) days, at the option of the City, either 1) said building shall be repaired or reconstructed and the rent payable hereunder with respect to Airline's exclusive space and the services therewith in said building shall be proportionately paid up to the time of such damage or destruction and shall thenceforth cease until such time as the premises shall be put in order; or 2) within sixty (60) days after the time of such damage or destruction and before the premises shall be put in order, the City may give notice of its intention to cancel this lease or to cancel such part of this lease as relates only to said building, in which case this lease or such part of this lease as relates only to said building, shall forth- with cease and terminate. ARTICLE IX - Cancellation 13y City This contract is entered into by City for the express purpose of furthering and promoting air commerce to the community and with the under- standing that Airline will provide its service in a mariner consistent with the development: of such air conmierce. It is Specifically understood by the parties hereto that Airline will operate its sclieduled service to the community by air as intended by its certification by the State and/or Federal Regulating Authorities. This contract is further entered into upon the warranty to City by Airline that it will promptly discharge all financial responsibilities which accrue under this contract to City; that it will promptly pay all accounts, if any, owing to Fixed Base and other operators at the Airport; and that it will, during the term of this lease, maintain a position of financial responsibility to its creditors, as well as to the City. The City reserves the right to cancel this agreement upon thirty (30) days written notice at any time the City Manager deems the continuance of the Airline is not in the best interest of the City or the public and to support such other airline as City deems appropriate in obtaining the necessary certificates to operate over the same or other routes served by Airline. -7- Failure on the part of Airline to pay the rent hereunder within fifteen days after same shall become due, time being of the essence, shall authorize City, at its option and without any legal proceedings , or notice, to declare this lease terminated, cancel the same, and re-enter and take possession of the premises an&,, to terminate the right of Airline to utilize Airport facilities and the Airport. Further, should Airline de- fault -in the performance of any of its other duties or covenants contained herein and fail to cure such default within fifteen days after written. notice thereon from City, then City may, at its option terminate all rights, privileges and interests of Airline and repossess all premises herein leased, and in such event, Airline agrees to deliver possession of the same peace- ably and relinquish all rights incident thereto. In the event that Airline shall file a voluntary petition in bank- ruptcy or that proceedings in bankruptcy shall be instituted against it or that the Court shall take jurisdiction of Airline and its assets pursuant to proceedings brought under the provisions of any Federal reorganization act, or that a receiver of Airline's assets shall be appointed, or that Airline shall be divested of its estate herein by other operation of law or that Airline shall fail to perform, keep and observe any of the terms, covenants or conditions herein contained on the part of Airline to be performed, kept or observed, the City may give Airline notice in writing of intent to terminate this lease and the term hereby demised shall thereupon cease. The acceptance of rental by City for any period or periods after a default of any term, covenant or condition herein contained to be per- formed, kept and observed by Airline shall not be deemed a waiver of any right on the part of City to cancel this lease for failure by Airline so to perform, keep or observe any of the terms, covenants or conditions hereof to be performed, kept and observed. No waiver of default by City of any of the terms , covenants or conditions hereof to be performed, kept and observed by, Airline shall be construed to be or act as a waiver of any subsequent default off any of the terms, covenants and conditions herein contained to be performed, kept and observed by Airline. City may also terminate this lease by written notice to Airline in the event of the assumption by the United States Government or any -8- ,authorized agency thereof of the operation, control or use of said Air Force Base, Airport and facilities or any substantial part or parts thereof in such manner as to prevent the. City, for a period of at least ninety (90) days, from performance of its obligations under the terms, covenants and conditions hereof to be performed, kept and observed by City. Issuance by any court of competent jurisdiction of an injunction r in any way preventing or restraining the use of said Air Force Base or Airport or any part thereof for airport purposes, and the remaining in force of such injunction for a period of at least fifteen (15) days; or any action of the Fedoral Aviation Administration, Civil Aeronautics Board or Texas Aeronautics Commission terminating the right of Airline to operate into, from or through said Air Force Base such aircraft as Airline may reason- , ably desire to operate thereon shall authorize City to terminate such lease on written notice to Airline. ARTICLE X - Cancellation by Airline Airline, in addition to any right of cancellation or any other right herein given to airline, may cancel this agreement, in whole or only insofar as it: relates to any building and ternunatc all or any of its obligations hereunder at any time, by thirty (30) days written notice to City, upon or after the happening of any one of the following events. (A) Issuance by any court of competent jurisdiction of an injunc- tion in any way preventing or restraining the use of said Air Force Base or Airport or any part thereof for airport purposes , and the remaining in force of such injunction for a period of at least fifteen (15) days; (B) The failure or refusal of the Federal Aviation Administration or the Texas Aeronautics Commission to continue to grant Airline the right to operate into and from said Air Force Base; (C) Any action of the Federal Aviation Administration, Civil Aeronautics Board or Texas Aeronautics Commission refusing to permit Air- line to operate into, from or through said Air Force Base such aircraft as Airline may reasonably desire to operate thereon; (D) The breach by City of any of the covenants or agreements herein contained and the failure of City to remedy such breach for a period of thirty (30) days after receipt of a written notice of the existence of such breach; -Q- (E) The :inability of Airline to use the Air Force Base or any of the premises, facilities , rights, licenses, services or privileges leased to Airline hereunder for a period in excess of thirty (30) days because of any law or any order, rule or regulation of any appropriate govern- mental authority having jurisd'i,ction over the operations of Airline, or because of war, earthquake or other casualty; (F) The assumption by the United States Government or any author- ized agency thereof of the use, maintenance or operation of said Air Force Base, Airport and facilities or any substantial part or parts thereof in such manner as to prevent the full use and enjoyment by the Airline of its rights under this lease; (G) The erection of any obstacle on or in the vicinity of said Air Force Base which would occasion a cancellation of Airline's operating certificate or similar authorization establishing minimum safety standards for the operations of Airline. (H) If by reason of any action or non-action of the Federal Aviation Administration or other governmental agency having jurisdiction to grant a certificate of convenience and necessity or similar document authorizing the Airline to operate aircraft in or out of the Air Force Base (including action in the nature of alteration, amendment, modification, suspension, cancellation or revocation of any such certificate or document) , the Airline shall cease to have authority to operate aircraft in or out of the Air Force Base pursuant to such certificate or document. ARTICLE XI - Indemnity Airline agrees to indemnify and hold City harmless from and against all liability for injuries to persons or damage to property caused by Air- line's negligent use or occupancy of the Air Force Base and Airport or negligent operation of aircraft, provided that City shall give to Airline prompt and timely notice of any claim made or suit instituted which in any way, directly or indirectly, contingently or otherwise, affects or might affect Airline. Airline shall maintain during the term of this lease, at its own expense, standard form policies of insurance which shall name the -10- City as co-insured and copies of which shall be provided City as follows : Comprehensive General Liability for Premises and Operations : Bodily Injury (each accident) 100,000 each person 300,000 each accident Property Damage 300,000 each accident Aircraft Liability: Bodily Injury (each accident) 100,000 each person 300,000 each accident Property Damage 300,000 each accident Motor Vehicle Liability: Bodily Injury (each accident) 100,000 each person 300,000 each accident Property Damage 300,000 each accident Limits as required above are considered to be minimum requirements only and Airline in the public weal is encouraged to carry higher limits. ARTICLE XII - Quiet Enjoyment City agrees that, on payment of the rent and performance of the covenants and agreements on the part of the Airline to be performed here- under, Airline shall peaceably have and enjoy the leased premises and all the rights and privileges of said Air Force Base and Airport, its appurtenances and facilities, as herein provided. ARTICLE XIII - Surrender of Possession Airline agrees to yield and deliver to City possession of the premises leased herein at the termination of this lease, by expiration or otherwise, or of any renewal or extension thereof, in good condition in accordance with its express obligations hereunder only, except for damage due to reasonable wear and tear, fire and other casualty. ARTICLE XIV - Assignment, Tra.nfer, and Compliance (A) Airline shall not assign or transfer this agreement nor any privileges hereunder and shall not assign or sublet or mortgage all or any part of the premises hereby leased, whether voluntarily or involuntarily, I without the prior written consent of the City. If Airline, without securing prior writtenn approval of City, attempts to effect such a transfer, assign- ment or mortgage, or if a transfer occurs by operation of law, City may -11- terminate this agreement upon written notice to Airline. Foreclosure of a mortgage, whether pre-existing or hereafter created, on controlling interest in stock of Airline shall be considered a transfer by operation of law. (B) Operation of Premises for Use and Benefit of Public: Airline agrees to furnish good, prompt and efficient service adequate to meet all demands for its service at the airport and to furnish said service on a fair, equal and non-discriminatory basis to all users thereof, and to charge fair, reasonable, and non-discriminatory prices for such service. (C) Non-Discrimination: Airline, its agents and employees will not discriminate against any person or class of persons by reason of sex, race, color, creed or national origin in providing any services or in the use of any of its facilities provided for the public, in any manner pro- hibited by Part 21 of the Federal Transportation Regulations. Airline further agrees to comply with such enforcement procedures as the United States might demand that- the City take in order to comply with the sponsor's assurances. (D) Non-Exclusive Rights Clause: Airline understands and agrees that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right. ARTICLE XV - Improvements Airline shall not make or permit any additions, improvements or alterations to the leased area without prior written consent of the City of Wichita Falls. Any such additions, improvements or alterations made with consent of the City shall be solely at the expense of Airline and, unless such consent specifically provides that title to the addition or improvement so made shall vest with Airline, title thereto shall at all times remain with the City and such additions or improvements shall be subject to all terms and conditions of this instrument.. ARTICLE XVI - Performance Bond Prior to commencement of this lease, Airline shall deliver to City a Corporate Performance Bond with a surety satisfactory to the City in the amount of Two Thousand Dollars ($2,000) , conditioned on the full and faithful performance of all the terms, conditions and covenants of I this lease and shall be kept in full force and effect for the complete term of this lease. At Airline's option, in lieu of said Performance -12- Bond, Airline may pledge with City securities acceptable and payable to City in an amount equal to Two Thousand Dollars ($2,000) . The income from such securities shall be payable to Airline. ARTICLE XVII - City Agent City hereby designates its Airport Manager, as well as its City Manager and such official as he may designate, ,as its- official representative, with the full power to represent City in all dealings with the Airline in connection with the premises herein leased. ARTICLE XVIII - Notices Notices to the City provided for herein shall be sufficient if sent by registered or certified mail, postage prepaid, addressed to the Airport Manager, Wichita Fal- s Municipal Airport, Route 4, Box 72-E, Wichita Falls, 'Texas 76301; and notices to the Airline if sent by reg- istered or certified mail, postage prepaid, addressed to Joe Bill Bennett, Vice President-General Manager, Tricon International Airlines, Inc. , P. 0. Box 7169, Dallas, Texas 75209 or to such other respective addresses as the parties may designate in writing from time to time. ARTICLE X1X - Aircraft Service by Owner or Operator of Aircraft It is clearly understood by the Airline that no right or priv- ilege has been granted which would operate to prevent any person, firm, or corporation operating aircraft on the Airport from performing any services on its own aircraft with its own regular employees (including, but not limited to,' maintenance and repair) that it may choose to perform. ARTICLE XX - Development of Wichita Falls Mt.inicipal Airport City reserves the right to .further develop or improve the Airport as it sees fit, regardless of the desires or view of the Airline, and with- out interference or hindrance. If the physical development of the Airport requires the relocation of the Airline, the City agrees to provide a com- parable location and agrees to relocate all buildings or provide similar facilities for the Airline at no cost to the Airline. -13- ARTICLE XXI - War or National Emergency During the time of war or national emergency, City shall have the right to return the Airport or any part thereof to the United States Government for military or naval use, and, if such right is executed, the provisions of the lease with tale Government shall be suspended. ARTICLE XXII - Subordination This lease shall be subordinate to the provisions of any exist- ing or future agreement between City and the United States, relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of Federal Funds for the development of the Airport. ARTICLE XXIII - hold harmless Airline shall be solely responsible for the conduct of its air transportation operations at Airport and shall hold City and its Agents harmless from all liability in connection with its operation. ARTICLE XXIV - 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 and intent of any provisions of this lease. ARTICLE" XXV - Invalid Provisions 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 juris- diction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained; provided however, that the invalidity of any such covenant, condition or provision does not materially prejudice either City or Airline in their respective rights and obligations contained in the valid covenants, conditions or provisions in this agreement. -14- 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 : Gerali G. Fox, Cit�jMana er� ATTEST: Wilma J. Thomas, City Clerk TRICON INTERNATIONAL AIRLINES, INC. Jo Bill Bennett, Vice President- General Manager APPROVED AS TO FORM: B H. P. dodge, J� Ci Attorney � � I - y It Filial ., . r `\�.' `(\�,f✓� l�l�-i. � ' rl � � / ��./ f 0 _I fit 1 I � �<S,•�1 1- U fii� t, 7 wl t y� i �• � ��inr lr � III >l..) �� ��T, `� I � r,�t 1 ' "� _1 >� a — _ a ,. 1 � '. �t 1, t•a�, t'�- lll{I ryC_ � 1f�� � ' � \ 1 ��� I �� W '1_,R��ilyt��fJ����� ��La t .�'�til�h h}� j'I�;i�i� �Xi� i t rt �• � m `� S��� 1 � �P � QO 1 � 1 ,tJ. li..�. '� `�wl�,��� .'I�i �'�\.���� I ltl i..k��...1 ! �•� 7+ lr .�� J. ( 1AF CAI - In It, on t p l ' g a EXHIBIT A w f�. •wJ 1q ,I i S F F a b L 6 y Jf WICHITA FALLS ,TEXAS L MUNICIPAL AIRPORT SCALE EXHIBIT B AI y — • " c ri A .. .. .A m r. .•.. ..,r. q f, M'..G m A D akr.0 PT r, F 4 A.l;rc_-1ti ---1 i3 �.F d-o' 11'•G'a �2'•0' IZ-lo'A id -io LIF4F F(�6i P- I VIA J. i3'•E�"n �d•o' �Z•o•n i4'�b' Z A' I Tei co> t z JQ ro Z.t!1. QO 39.3 L7 C C K T I C K E T L O PS R5 Y N �f•t • ��Ivri ITi� FA---LL.-, L)M C 10 '-r-PT '71 f t• s .._; `e ra, a. L T .iOE f3. Pr42p =rzT.. Ar�CyZ ILNG EXHIBIT C WATER PURCHASE CONTRACT THIS CONTRACT for the sale and purchase of water is entered into as of the day of 1974, between the City of Wichita Falls, Texas, hereinafter referred to as the "City", and Wichita Valley Water Supply Corporation, hereinafter referred to as "Corporation". WITNESSETH: WHEREAS, Corporation is organized and established under provisions of the laws of the State of Texas. One of the duties of Corporation is the con- struction and operation of a water supply and distribution system serving water useres within the area described in plans now on file in the office of Corporation and to accomplish this purpose, Corporation will require a supply of raw water; and, WHEREAS, the City owns Lake Kickapoo, a water reservoir with ca- pacity capable of serving the present customers of the City system and the , estimated number of water users to be served by Corporation as shown on plans of the system now on file in the office of Corporation; and, WHEREAS, by Resolution No. 1517 enacted on the 19th day of March , 1974, by City, (Attached hereto as Exhibit "A"), which authorized the City to sell raw water to Corporation; and, WHEREAS, the Corporation will operate a water supply and distribution system, and serve the area of Lake Kickapoo, the town of Mankins and the Town of Dundee, and the present service area of the Corporation lying south of 287 Ex- pressway, except for a small area north of the Expressway and east of F.M. 1814, and east, south and west of Iowa Park, all in Texas; and, WHEREAS, by resolution of the Board of Directors of Corporation (Attached hereto as Exhibit "B"), enacted on the day of -2- 1974, such Board of Directors authorized purchase of raw water by the Corporation from the City in accordance with the terms set forth in the said resolution and further authorized execution of this contract. NOW THEREFORE, KNOW ALL MEN BY THESE PRESENTS, THAT for value received, the City and Corporation mutually agree to the following,. to-wit: Section 1. 0: City will allow water (RAW WATER) to be diverted from Lake Kickapoo at the diversion point shown on the plans and approved by the City, in sufficient quantities to Meet Corporation's needs for resale to consumers, subject only to terms and provisions of this contract. Section 1. l: Diversion point shall be at the water line and at an intake structure at Lake Kickapoo, Texas, at a location mutually acceptable to the City and Corporation. Section 1. 2: Maximum amount of water to be diverted by Corporation from Lake Kickapoo shall not exceed one million (1, 000,000) gallons per day un- less a greater amount is approved in writing by the City. Section 1. 3: Corporation shall furnish, install, operate and maintain at its own expense at the diversion point or treatment plant, the necessary meter- ing equipment, including a meter house or pit, and required devices of standard type for properly measuring and recording the quantity of water diverted from Lake Kickapoo. Type and location of meter shall be agreed to by City and Corp- oration prior to diversion of water. Corporation shall calibrate such metering equipment whenever requested by City but not more frequently than once every twelve (12) months. A meter registering not more than two percent (2%) above or below the test result of the rated capacity of the meter shall be deemed ac- curate. The previous reading of any meter disclosed by test to be inaccurate shall be corrected for the twelve (12) months previous to such test in accordance with the percentage of inaccuracy found by such tests and existing records. If -3- any meter fails to register for any period, the amount of water furnished during such period shall be deemed to be the amount of water diverted in the corres- ponding period immediately prior to the failure, based on existing records unless City and Corporation shall agree on a different amount. Section 1.4: Thirty days prior to estimated date of completion of con- struction of Corporation Water Supply and Distribution System, Corporation will notify City in writing the date of initial diversion of water. Section 1.5: When requested by Corporation after metering equipment has been installed, the City will agree to diversion of sufficient water for test- ing, flushing, and trench filling the system during construction for which Cor- poration will pay City at the rate set out of seven and one half cents ($0. 075) per one thousand (1000) gallons. However, minimum rate will not apply to this water used for testing the system. Section 1.G: Location and Easements - The location of the proposed pump station, intake structure and treatment plant shall be approved by the City, and the pump station and plant site acquired or obtained by long term lease at an agreed upon price from the City before detailed plans and specifications are made. Easements for the pipe lines shall be acquired from the City before any pipe lines are constructed. Section 1. 7: Treatment Process Approval - Treatment process, treat- ment facilities and pipe lines must be approved by Texas State Health Department before any construction. Section 1.8: Plans and Specifications Approval - Plans and Specifications shall be approved by the City before advertising for construction of any facilities. Section 2. 0: The cost of water purchased by Corporation shall be based on the following schedule: $0. 075 per 1000 gallons MINIMUM MONTHLY BILL $250. 00 -4- This water rate is subject to modification every five (5) years on the basis of demonstrated increase or decrease in the cost to provide raw water. Section 2.1: The City will read the Corporation meter on the first day of each month during the term of this Contract. Corporation and City shall have free access to read meters daily if they so desire. The City will provide Corp- oration no later than the loth day of each month, with an itemized statement of the amount of water metered to Corporation during the preceding month. Corporation shall pay to the City the amount of itemized statement for any month no later than 20th day for the preceeding month's usage. Section 3. 0: This Contract shall extend for a term of forty (40) years from the date of the initial metering of any water to Corporation. Unless water is taken within three (3) years from date hereof, this Contract shall be void. At the expiration of the term of this Contract, same may, be renewed or extended for such term or terms, as may be agreed upon by the City and Corporation. City may cancel this Contract at any time during the life of the Contract in the event YPY Corporation fails to make an payment due hereunder within sixty (60) � days after same becomes due; or, if Corporation breaches any covenant herein other than payment of the monthly statement, and such breach continues for sixty (60) days after City gives Corporation written notice thereof. Section 4. 0: Corporation shall not be required to furnish water to any resident of City. If City extends its city limits to include any_consumer of water from Corporation, Corporation will continue to provide water to such consumer. When City is able to extend its own water distribution system which could provide such consumer with City's water, such consumer shall be allowed the choice of remaining on Corporation system or tying into City's system. Provided however, it is understood and agreed the foregoing Section is subject to the restriction of 7U.S. C. Section 1926 (b) as amended. Section 5. 0: Corporation shall permit the water to be used only for -5- normal residential, commercial and municipal purposes. Unless written per- mission is obtained from City, water shall not be used for agricultural irrigation, cattle feed lots, or any processing or manufacturing concern which uses such water in other than normal residential or commercial quantities. Corporation shall not permit water to be used by other municipalities or for commercial or residential subdivisions not in existence at the date of executing this Contract. Corporation shall not sell any water to any private party for resale by such private parties to third parties. The service area of the Wichita Valley Water Supply Corporation shall be restricted to the area as indicated in Exhibit "C" attached and conditioned by the other restrictions in this section. Any extension of the service area and system must be approved in writing by the City. Section 5. 1: It is distinctly understood between parties hereto that City owes its primary obligation and duty to the citizens of Wichita Falls; in the event of an extended shortage of water, or the supply of water available to City is otherwise diminished over an extended period of time so that it becomes necessary to ration the water sold to citizens of Wichita Falls, the supply of water to Corporation's consumers shall be reduced or diminished in the same ratio or proportion as the supply to the citizens of Wichita Falls is reduced or diminished. Section 6. 0: This Contract is subject to such rules, regulations, or laws, as may be applicable to similar agreements in the State of Texas; the City and Corporation will collaborate in obtaining such permits, certificates, or the like, as may be required to comply herewith. Section 7. 0: Any amendment to this Contract shall be in writing and executed by both City and Corporation. Section 8. 0: This contract shall not be assignable without the approval of the City: however, in the event of any occurrence rendering the Corporation incapable of performing under this Contract, any successor of Corporation, whether the result of legal process, assignment, or otherwise, shall succeed to the rights of Corporation hereunder. -6- Section 8. 1: The construction of the water supply distribution system by the Purchaser is being financed by a loan made or insured by, and/or a grant from, the United States of America, acting through the Farmers Home Admin- istration of the United States Department of Agriculture, and the provisions hereon pertaining to the undertakings of the Purchaser are conditioned upon the approval, in writing, of the State Director of the Farmers Hoene Administration. IN WITNESS WHEREOF, the parties hereto, acting under authority of.their respective governing bodies, have caused this Contract to be duly exe- cuted in three counterparts, each of which shall constitute an original. ATTEST: CITY OF WICHITA FALLS, TEXAS BY: City Clerk CITY MANAGER ATTEST: WICHITA VALLEY WATER SUPPLY CORPORATION BY Secretary PRESIDENT THE STATE OF TEXAS X . KNOW ALL MEN BY THESE PRESENTS: COUNTY OF WICHITA X RENTAL CAR LEASE AGREEMENT THIS AGREEMENT entered into this 26 day of March 1974 by and between the City of Wichita Falls, Texas, hereinafter called City or Lessor, and Joe M. Mayo and Joe M. Mayo, Jr. , copartners D/B/A Budget Rent-A-Car of Wichita Falls, 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, and agreements herein contained, the said parties hereby covenant, promise and agree with each other as follows: ARTICLE I. PREMISES 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 designated as Exhibit "A". The parties covenant and agree that the City, at its sole expense, after giving sixty 1 (60) days notice in writing, may relocate the Lessee's premises in the Terminal Building if, in the opinion of the Airport Manager, overall service to the public shall be improved by such relocation. Lessee shall, at its sole expense, install the necessary counter at its leased space in the Terminal Building, which counter shall be instal- led in, a good and workmanlike manner, shall be neat in appearance, shall be compatible with the Hertz and airline counters, and must be approved by the Airport Manager. At the termination of this 'lease, title to such counter shall remain in Lessee, who may remove same, but Lessee shall restore such leased space to the same condition that it was in at the beginning of this lease. Lessor leases to Lessee two ready car parking spaces at the location shown on the plat attached hereto and designated as Exhibit "B", which shall be used by Lessee for the parking of cars which are ready for delivery to its car rental patrons. Lessee shall provide markers for these ready car parking spaces similar to the markers which designate the ready car parking spaces used by other rental car agencies at the Airport. Lessor leases to Lessee six (6) rental car storage spaces at that location south of the Terminal Building and west of Hangar No. 1 as shown on the plat attached hereto and designated as Exhibit "B". Included in the rights granted hereunder is that of arranging at the Airport 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 the period from April 1, 1974 through June 30th 1975 The provisions of this lease shall be subject to renegotiation by the parties on July 1st, 1974. -2- 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 necessary. Lessee covenants 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. ARTICLE IV. Rental Lessee agrees to pay City a minimum concession fee for the rights and privileges herein granted by the City, as follows: $221.66 per month from the time Lessee commences operations hereunder through June 30th, 1974; for the year beginning July 1st, 1974 and ending June 30th, 1975, such fee shall be adjusted on the basis of the proportional increase or decrease in the combined gross revenues of all airport rental car concessions over the preceding twelve month period, provided that such increase or decrease shall not exceed ten percent; or, ten percent of Lessee's annual gross revenues as herein defined, whichever is greater. Lessee shall submit by the 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 of (2) the then applicable mini- mum monthly concession fee. Such statement of gross revenues shall be certified by a responsible officer of the Lessee. -3- Within sixty .(60) days after the termination of this lease agree- went, Lessee shall furnish to City a sworn statement, certified by an independent certified public accountant who shall not be a member of Lessee's firm or staff, showing the total of gross revenues at the Airport during the term of this lease agreement. If the aggregate payments made hereunder shall exceed the greater of (1) the minimum concession fee, or (2) ten percent of said gross revenues, the excess balance shall be paid to Lessee by City in cash. 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 auto- mobiles or other property, nor any amounts paid by customers to Lessee and separatedly 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 theAirport, regardless of what section or establishment of Lessee may receive the automobile or the rent therefore 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 a customer from the Airport. It is understood that Lessee may possess a U-Drive-It 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 or the rental contract is consummated. -4- 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. 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 concessionaires at the Airport. Any moneys recovered from insurance companies by Lessee for damage to Lessee's property, or sums recovered through insurance or other- wise for 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 Revenues" for the payment of State franchise taxes or taxes levied on concession 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. Rental car storage fee; Lessee shall additionally, by the 20th day following each month of operation hereunder, pay City for rental of its six (6) rental car storage spaces the sum of $6.00, being $1.00 per storage space per month; if the rental car storage fee charged to the other rental . car agencies at the Airport is increased on July 1st, 1974, this fee pay- able by Lessee shall be increased at the same rate. -5- ARTICLE V. Records Lessee shall at all times during the term hereof keep true, accu- rate, complete and auditable records, books and accounts, in a form satis- factory 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 duly authorized agents or representatives, to examine and audit all pertinent 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 contracts shall be executed on appropriately marked and numerically sequenced forms of Lessee. Articles or services furnished to any person in payment of exchange 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 will- fully false reports or 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 taxes, special assessments, excises, license fees, permit fees, and utility service charges of whatever nature, applicable to its operation at the Airport and to take out and keep current, all licenses , municipal, state or federal, required for the conduct of its business at and upon the Air- port, and further convenants and agrees not to permit any of said taxes, assessments, 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 (1-1/2%) 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 including attorney's fees incurred or expended by the City in collection of said delinquent amounts due. -6- ARTICLE VIII. Performance Bond Lessee agrees to furnish a bond to the City in the principle amount of TWO THOUSAND DOLLARS ($2,000) . 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 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. 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 Lessee convenants and agrees it shall be open for and shall con- duct business and furnish services at the Airport during the hours of regularly 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. Lessee shall furnish high quality, prompt and efficient service hereunder adequate to meet all reasonable demands therefor at the Airport; shall furnish said services on a fair, equal and non-discriminatory 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. -7- 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 the use of Lessee's customers. Lessee shall provide and maintain the rental automobiles made available hereunder at its sole expense, in good operative order, free from known mechanical defects, and in a clean, neat and attractive condi- tion inside and outside. Lessee shall base at the Airport only new or late model automobiles in such number as is required by the demand for same. A copy of the rental agreement form covering the use of Lessee's automobiles shall at all times be kept on file in the office of the Air- port Manager. Lessee covenants that it shall take all reasonable measures in every proper manner to maintain, develop and increase the business con- ducted by it hereunder, and 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 as 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 Agreement by the City. Lessee's personnel performing services hereunder shall be distinc- tively 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 it agents, servants and employees from loud, noisy, boisterous or otherwise objectionable promotion of the services offered, and upon objection from the Airport Manager concerning the conduct or appearance of any such persons, shall immediately take all steps necessary to remove the cause of the objection. 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 per- mit the installation, maintenance or operation on the Leased Premises of any vending machine or devices to dispense any products whatsoever without the written permission of the Airport Manager. -8- ARTICLE XI. Maintenance and Improvements 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. 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. 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 attachment 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 identifying the premises as being those of the Lessee or provid- ing directions for Lessee's patrons. No advertisements or rate schedules of the Lessee shall be posted to public view on the Terminal Building leased premises, except that this prohibition shall not prevent the Lessee from displaying for distribution its pocket-sized printed brochures of rate schedules for distribution to the public. At the expiration of this Agree- ment, the Lessee shall remove all its signs or advertisements and restore all points of attachment to conform to the appearance and condition of the grounding surfaces. -9- ARTICLE XII. Heating, Air Conditioning and Janitorial Services 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. 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. ARTICLE XIII. Indemnification Lessee shall be solely responsible for the conduct of its opera- tors, agents, employees and representatives, and agrees to indemnify, defend, hold and save the City, its authorized agents, officers, representatives and employees, harmless from each and every claim and demand of whatever 'narure, and against any and all penalties, liability and annoyance or loss, result- ing from claims or court action of any nature claimed to have arisen directly or indirectly 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 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 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 -10- 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, servants, guests, employees, business visitors or others under this agreement or by result of any act or omission of such persons. 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 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 convenants or conditions of this Agreement. -11- ARTICLE XVIII. Assignment Lessee shall not assign or transfer this agreement nor any privi- leges hereunder and shall not assign or sublet or mortgage all or any part of the premises leased hereby, whether voluntarily or involuntarily, with- out the prior written consent of the City. If Lessee, without securing prior written approval of the City, attempts to effect such a transfer, assignment, sublease or mortgage, or if a transfer occurs by operation of law, City may terminate this agreement upon written notice to Lessee. If control of Lessee's business or corporation is transferred to other parties by 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 this agreement upon written notice to Lessee. ARTICLE XIX. Suspension/Termination Lessee understands and agrees that all rights, privileges and interests acquired herein, following written notice of sixty (60) days, may be altered or finally terminated upon payment of just compensation to Lessee, if such suspension or termination is found by City, acting in good faith, to be necessary to secure Federal financial aid for the development of the Airport. 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 same and re-enter and take possession of the premises, and in such event, Lessee agrees to deliver possession of the same peaceably and relin- quish all rights incident thereto. City shall have the right, but not the obligation, to terminate this Agreement in its entirety immediately upon the happening of any of the following events: -12- a. Filing of a petition, voluntarily or involuntarily, for adjudi- cation of Lessee as a bankrupt. i b. The making by Lessee of any general assignment for the benefit of creditors. c. The failure by Lessee to perform, keep and observe any and all of the terms, covenants, and conditions herein contained on the part of the Lessee to be performed, 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 required herein will give City the right to terminate this lease immediately without the necessity of giving Lessee 15 days written notice) . City may terminate this lease by written notice to Lessee in the event of the assumption by the United States Government or any authorized agency thereof of the operation, control or use of said Municipal Airport, 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 (90) days, from performance of its obligations under the terms, covenants and conditions hereof to be performed, kept and observed by City. No waiver by City at any time of any of the terms, conditions, or covenants 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 contained, nor of the strict and prompt performance thereof by Lessee. In the event that the United States Government or any of its agencies shall occupy the airport or any substantial part thereof to such an extent as to materially interfere with Lessee's operation, or in the event of destruction by fire or other cause of all or a material portion of the airport or airport facilities, or if Lessee's operations shall for any reason, similar or dis- similar, be materially interfered with for a period in excess of ninety (90) days, or in the event of any national emergency wherein there is a curtailment, either by executive decree or legislative action, of the use of motor vehicles or airplanes by the general public, or a limitation of the supply of gasoline available for general use, then, and in any of those events, Lessee shall have -13- the right upon written notice to Lessor to terminate this agreement and Lessee's further obligations hereunder, or at its option, to suspend this agreement for r the periods of such disability. 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 of the month in which such event occurs. ARTICLE XX. Untenantable Premises Lessee shall, in case of fire or other casualty, give immediate r notice in writing to City, who shall thereupon cause the damage to be repaired forthwith, 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, accordingto the P 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 this lease by notice in writing to the other, effective as of the date of the mailing of the written notice, except that the rent shall be apportioned as of the date of the fire or other casualty. ARTICLE XXI. Notification Notice to City as herein provided shall be sufficient if written notice is served in person or otherwise sent by registered mail to the Airport Manager, Wichita Falls Municipal Airport, Route 4, Box 72-E, Wichita Falls, Texas 76301, or to Lessee if written notice is served in person to Joe M. Mayo, Jr. or otherwise sent by registered mail to Lessee at P.O. Box P 5168, Wichita Falls, Texas 76307 or at such other places as the parties may designate in writing. K -14- ARTICLE XXII. Invalid Provision 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 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 convenant, 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. LESSOR: CITY OF WICHITA FALLS BY: GeraNt G. Fox, C1'Vy Manager ATTEST: Wilma J. Thomas, City Clerk LESSEE: 1 J �ek. Mayo, Copartn % J� Mayo, Jr. ,� p ner� -D/B/A Budget Rent-A-Car of Wichita Falls APPROVED AS TO FORM: G�7 C H. P. H ge, Jr i A torney • I k.. I I r�O iZ C�H' II U��j L1° SCUIIERYj , II O P' m � 1 1 u i I � N ENTRY3. - m � j D 11 i r. 77 N H L H A n Z 1 rF/I 2 � • I k, D + MEN a r Oo c -�•7 � WOMEN ' � al r I ♦ OS il hyi -� • • L___ /.- - l_ _.._.L �J A m Z AGE z l _ ""�4 0 ..� ----1 - � OFFICE 1 OFFICE Z D 0 :rZ w 4:�- rn x t Owbco5-: QQ (DW x rt rOt fm H (A t r ; A Z rt (D rt n W m ems O rt (D O to Z I-- CD v (D `< Qs 1. OFFICE `,..1" ul (D - k p �I n n N - (D O II A rh _ o o 0 r � � (D W � (D (D � ((DD c€FICE a rOt A. (; � l I� EXHIBIT A + Trash Container Rental Car Ready Spaces - 2 a s .ti .�� rti•� �e4• Rental Car Storage Spaces - �I I `I C i I I r (1' 1 WICIIITA PALLS,TEXAS MUNICIPAL AIRPORT SCALE .....tom;