~~~ upon the minutes of the Court, unless necessary maintenance rand/or repairs are provided. P•'fotion made by Commissioner Stone, seconded by Commissioner Schwethelm, with Co~.~mis- sinners Schwethelm, Burney and Stone and Judge Neunhoffer voting "AYE" and Commissioner Bartel voting "NO", said motion carrying by a majority vote. o-o-o-o-o-o-o-o-o-o COURT ADJOURNED September 8, ly6y at 2:45 o'clock: P.M. o-o-o-o-o-o-o-o-o-o The foregoing minutes from page 101% thru 104 were read in open Court and found correct snd are hereby approved this 13th day of October 1969. AT't'ES'1'~~1?r .J r~oun y~~ rI-, Kerr Coun y, exas o-o-o-o-o-o-o-o- CITY OF KERRVILLE, 'TEXAS ODINANCE N0. 69-12 AN ORDINAD?CE BY '1 HE CIi'Y OF KERRVILLE, 'TEXAS, A?iTHORI~IPIG THE CITY OF KERI2VII,LE '1'0 LEASE 1C DUGOSH AIRCRAFT SERVICE CO. I*TC., A CER'iAIN 3.35 ACRE TRACT' OF LAND OUT OF AND A PARt OF THE C. V. ROBIN SON SURVEY N0. 44, ABSYRACi' N0. 282, 'rIIE SAI•IE BEING A PART OF 1H1' LOUIS SCHREIPIE'R AIP. FIELD, KERPVILLE P1UN1^,IPAL ATRPORT, LOCA'T'ED IN KERR COUNTY, TEXAS, OJTVED BY T'gE CI1Y OF KERRVILLE AD?D THE COUNTY CF KERR, AND ENAC'1'ING O'1'RER PFtOVISIO~'S INCIDENT AND RELATING TO THE SUBJECT AND PURPOSE OF THIS ORDINANCE. ~rJ'r?EREAS, Dugosh Aircraft Service Co. Inc., submitted a proposed lease agreement to lease a 3.37 acre tract of land located at the City-County owned Airport upon terms and conditions and charges set forth in said lease sgreemcnt; and WHEREAS, the City of Kerrville has authority generally to pass this ordinance and in particular is authorized by the Municipal airports Act (Articles 46d-1 to 46d-22, V. T. C. ~,), to enter into said lease agreement; and 5/?iEREA5, it is necessary and proper that the City Council. of the City of Kerrville, Texas, enter into ±he lease agreement, of said property and 30 other things incident thereto; now, therefore, BE TT 0:4DAINI;D BY 'THB' CI'T"! COUD!CIL :-;F T~iE CITY OF KERRVILLE, KERR COUP~TY, ':.EXAS: SECTION 1.: That the City of Kerrville, Texas, .lease to Dugosh Aircraft Service Co., Inc., a Texan Corporation of Kerr County, Texas, all that certain tract or parcel of land lyi.rg and being situated in the County of Kerr, State of Texas, and more particularly described hereinafter in paragraph 1, upon the terrris and conditions contained in such lease agreement hereinafter set forth. SECTION 2: The Mayor i.s authori.zed to execute snd trre City Clerk to attest and affix the corporate seal of the City of Kerrville, Texas upon tha following lease agreement, which is substarr,iaily in the following form, to-wit: -1- SECTION 3: That soy and all other necessary and related instrur:reuts or documents incident to the carrying out of the purpose of this ordinance shall be signed by the Mayor and attested by the City Clerk, and the corporate seal of the City of Kerrville, shall be impressed upon each of such instruments, and, further, the :Mayor, the officers and employees of the City of Kerrville be, snd they are hereby authorized and directed to do all. things l-. necessary and proper to carry out the terms and purposes of this ordinance. PASSED AND APPROVED 0_T? FIRST READING this the 12th day of August, 1969• PASSED AND APPROVED ON SECOND READING this the 26th da,y of August 1969. PASSED AND APPROVED 0^? THIRD A?;D FINAL READING this the 9th day of Septe*riber, 1969. ~~~ /s% John M. Mosty it/ John M. Mosty, Mayor AT'rES'1' /s/ Kenneth Loyd (Seal) %t/ Kenneth Loyd, City Clerk THE S'1'A'1'E OF Y'EXAS KNOW ALL MEN BY 1HESE YRESEiulS: COUNTY OF KL'RR ~ 1'H IS LEASE AGREET~~EPd'1', made and entered into by and between the Lessors as composed of the CITY OF KERRViLLE, which is a municipal corporation under the laws of the State of Texas and is the County Seat of Kerr County, Texas, acting herein by and through its Mayor and City Clerk, duly authorized to execute this instrument by ordinance heretofore proper- ly passed by the City Council of said City of Kerrville, and the County of Kerr, State of Texas, which is a governmental subdivision of the State of Texas, acting herein by and through its County Judge, duly authorized to so aci; by order heretofore passed by the Commissioners Court of Kerr County, Texas, for such purpose as is recorded in the Minutes of said Court, and the said CITY and COUNTY being joint owners of the hereinafter described property and Dugosh Aircraft Service Co., Inc., a Texas corporation, hereinafter called Lessee. WITNESSE'1'E : 1. SUBJ'~C1 MATTER Lessors have this day leased and let, and by these presents do .lease, let and demise unto Lessee, upon the terms and conditions and subject to the matters hereinafter set fort_r,, all of the ~:ollowirg described real estate in Kerr County, Texas, to-wit; All. that certain tract or parcel of land lyin€i and being situated in the County of Kerr, State of Texas, comprising a total of 3.35 acres of land out of Original Survey No. 44, O. V. Robinson, Abstract No. 28~, being part of the Kerrville T~unicipai .'.irport and being more particularly described by metes and bounds, as follo~.,rs, to wit: BECI_T?T7ING at an iron stake for the Nartheas+, corner of that 4.1 acre tract previously leased. to Dugosh Aircraft Service Co. Inc. in the ';;pest line of a 70 foot wide strip reserved for an access road, said corner being 70 1'e et S. 88° 6V. fro.., the Tiorthwest corner of Lot No. 17 of Shady Grove Subdiv-ision as recorded in Volume 1 at Page 48 of the Plat Records of Kerr County, and a re-entrant corner of the said airport property; THENCti.'~.~ith the North line of aforesaid ~+.1 acre tract previously leased to Dugosh Aircraft Service Co. Inc., S. 8S° ~,~. 300 feet to an. iron stake marking the n?orthwest corner of the said 4.1 racre tract for the Southwest corner of *1:is tract; Tt1 E'~.?CE along the extension or cunt inuati on of the '~~;Je st line of aforesaid 4.1 acre tract, N. 2° ~tJ. 46.6 feet to ar. iron stake set for the Plorthwest corner of this tract; ..EitCE ":. Sti° E. 3'.0 feet to an iron st zl:e in the i,y'est line of aforesaid 70 fcot wide strip of land reserved for a roadway for the Northeast corner of this tract; "'.i^;'iC~, with the West line of said 70 fi;ot road~,~ay tract S. 2° E. 4~6.~ feet to the ,,,, place of Bu~GIDiP:IPiG. , 2' CGI`~SIDERATICN In consideration of the foregoing, Lessee is bound and o~ligated: (a) To pay to the Lessors at Kerrville, Kerr County, Texas, the sum of Thirty-three and 5Cj10O (:y~3.5O) and p-,yaole on the tenth. (iGth) day of each month. ~~J~ (b) To provide and maintain his own water supply witY: such water meeting the reciuire- :.rents for State approval. (c) To maintain all buildings constructed on said Lands in ~ state of good repair at all times daring +.he life of this lease. (d) To save snd keeY: harmless Lessors in all respects by reason of its occupancy snd use of any portion o£ +he airfield, and by reason of any acts of its agents, e?nployees, servants and rany o+her person or thing on said premises, to effectuate which Lessee shall carry liability insurance in the amounts of not less than yiG,000 each person, ~,lOC,000 each accident, 3nd ~5G,000 property damage, sY.owing Dugosh Aircraft Service Co., Inc. as Operator and Lessee, and the policy endorsed showing the City of Kerrville, Texas and Kem County, Texas, as collateral interest as Owners and Lessors. All insurance policies cover- ing all interest specified in this lease shall be sub;r.i+.ted to Lessors and shall be subject to acceptance by Lessors 'ay t'reir standards as to company snd; or group stability, (e) Lessee shall at all times daring the continuance of this agreement, at his own expense, provide for adequate and sanitary disposal of sew=age in accordance with State .- Health De partr,Ient recommendations; keep the said ,,remises free from tr:3sh, junk sand garbage, and provide for the off-airport pre.r~ises disposal of any such trash, junit and/or garbage. z J . 'PERM OF LEASE 'the Lease of the above described previses shall be for a term of twenty (~v) years, commencir_g from date of execution; provided, however, that on or before the expiration date of the primary term of t:_is lease that Lessee sha1LL have the right and option tc renew this lease 1'or an additional i.G years for the same rental •3nd under the ramie terms, covenants and agreements of this lease. Lessee shr171 have the right to exercise said option 'oy giving no+ice i.n wr:iting by Registered mail, addressed to Lessor at the same address rent :l checks are mailed to, on or before ninety (90) days of +he date of exc;irat:on of this lease. 4. PURPOa`Y: OP LEASE This lease is executed for the mutual advant.sge of the parties hereto and for the benefit of Lessors, their population and the general public. It is particularly stipulated by the parties to this lease agreement; that the buildings ar,.d nremiees ?nerain~,icve described and hereby leaved are to be us_3 for +hc purpose of maintenance, service, repair, modifics- Lion =nd testing o£ -:ircr3~t, ~iircrr3ft engines ~:nd po•.ver plants, and the z::anufacturin~ :nd 3irer•aft instruments, ~ae of aircr~~ft •;nd ,i.rcr;:ft parts, eoml,enents :anal. ccessrri.es,/ :ircr~i''. e!!gires and po•nrer slants, and such ct?:er purposes as :.:ay be ins_de-its]. hereto, servicing ~tnd =+crage of air- Cr?ft •;nd fOr 311 O+}Z C!r pl; r_iO Se F. 31~1nd W+Y: t3?rO::n3C e' Ur aV13tlOn, exCl'3ding, h0'NeVer, _'~ - herefrom +_h~ rlght tc eng3 -e ;n +he s'~ie Of pt>trole-Um prodUOts Used fOr 31rCraft fuel `3nd engine lubricants; and after August ?, 1)74, for tY_e fort-her purposes of flying _nstructions and c'n~rter service. ,, CGY:PLiAf~CE !l1TH REGULATIONS Lessee obl.-igates hl.m.self to ce;nply with all regul~;tions set up by the Federal Aviation Agency, federal, state and municip-il laws, :and will not, permit the ~;remises cowered by this lease agreer.:ent +o be used for any unlawful or i.mpreper purposes. E~ . '" ERi~i INA T ION ~4~ This lease '~ ~ b ~xgreemenu may be terminated y; (a) Lapse of brae; (b) after the expiration of one (1) year fro:~_ comrr.encea;ent of operations, forfeiture in the event Le:;see fail:: for -!ny cc,nsecutive six (6', mont:~;s to have on its payroll triree (3) regular employees employed either on the lease premises or on any pren:~ises leased by Lessee from Lessor heretofore, which condition cf afi'airs would render this lease agree- ::,ent subject to cancellation, and ir. which event Lessee agrees to deliver up said premises. S'-~:ould Lessee's operations be discontimaed for more than six (6) montrs rxs ~ result= of < strike or vis :rajor, such discontinuance s'r:all not be co::n,idered as ground for termination of this lease agreement. (~) The Lnited States Governor=ant rcrfuirirg the u.e of .;aid premise, .in t!ie event of •i national P,::ergency or for any defense program or defense purpose on the part of th~~ govern- mer?t, in whi.c_. event Lessee agrees tc deliver up L~ossession wit'rin ninety (9L) days sfter notice. After use by the United States Government has terminated, if in fact t.:: govern- " n:ent has taken over the airport, then. the said Les,=ee is er.+,itled to re-enter the lease pre;ai;;es covered by tti;_s lease agreement and resur:,e its operation, :nd suer. loss of time sha1.1 be added to the term of the lease agreement so that the full term may be enjo~red by Lessee wi.tYieut be~r.g penalized with tr,e occupancy of the United States Government. If the United States Governmient does take over said airport as here provided., then suer. tiL:e of occupancy by the goverr_ment would be construed as coming wi_thi.n tP.e previsions of subsec- tion (b) of this item 6, and sh~xll not be considered as a lapse of this agreement; (d) provided always, and these pre rents .are upon this condition, t'~iut i° Lessee does not or shall neglect er fail to perform and observe any or eitrier of +he covenants contained in this instrument ~Nnich on its part •~re to he performed, or shall be declared banxrupt according to law, or if any assignment shall be atter,~pted to be made of said prnperi:y for +he benefit cf creditors, then in Pither of said cases, but subject; tc subsection (e) hereinbelow, Lec;eors lawfully may ir;,;sedi.ately or ::t any ti;r!e thereafter, •xnd whilst such neglect cr default continues, and after t'r_irty (30) drys notice or demand, enter into and ,.~ upon. +he :aid nremi-es or any part thereof in the name of the w'.^_o;.e and repossess the sa,:,e as of +,e;eir former estate, and expel the Le~•see and remove his effects (forcibly, if - 3- necessary) without being taker. or deemed guilty of any manner of trespass, and wit'=out prejudice to any remedies 1•/hich might otherwise be used for possession or for arrears of rent, and that upon entry as aforesaid the rights of Lessee in this lease s'r_all cease and be ended; (el Should Lessee fail to perform end observe or neglect to perform for a period of ninety (yG) days within. which tame Lessee shay have the opportunity to correct such neglect or omission, after which period of time inspectior_ shall be had (to be made by competent engineers) to determine whether compliance has been met before such failure or neglect to perform may be considered as a ground for te-rmination. "7 . REPIOVAL CF It~IPItOVLP%ENT ^ Lessee will from time to time erect additional improvements upon the Leased premises sad it is specifically recognized that all such improvements so installed by Lessee are recognized as Lessee's property by Lessor and Lessors have heretofore and now recognize the yright of Lessee to remove all improve!;:ents placed on said pre;r;ises after the terr::inaticn of t':e lea.ae a~Yre err flit S. rlrov; ded twat :=1]('. YI Y'f'TIIn V~?~ S}1 (~~~ }1P :?t t}lP G(1~P PY I1Pn SP !1 {~ T,PC CPP_ lU~ ~. DE,IVEitY OF POS.:ESSIO^7 Lessee ebiigates himself' to deliver up possession of the precri.ses covered by this lease agreement in a good state o£ reY:air •it the tcru:inat,ion of this contract, v,^hether terminated by 1.spse of +ime, fvrfei+ure, demand of tI-ie governraert, or otherwise, normal wear and tear excepted. 9. SUB-LEASE Lessee shall. not be permi+ted to sublet the whole of the premisee hereby leased except with the written consent of Lessors, however, Leesee shall be permitted to hypo+i~ecate and mortgage +he pren;ises hereof without +he consent of she Le^sors. In the evcrrt of a fore- closure by such mortgagee, then the purchaser at any sucY. foreclosure sale (including the mortgagee i£ it to the purchaser} shall be substituted as Lessee under the terms cf this lease and this lease shall. continue in fall force and effect according to its terms; provided, however, that such substituted Lessee shall promptly pay to Lessor any arrears of rent, if any there be, and otherwise pr.operlp perfo.rrn any covenants of this lease which Lessee had theretofore failed er refused +,o perform. 10. SUPPLY OF MATERIALS, EYC. It is further agreed trat should a delay or d9scuntinuar.ce in Lessee's operations be occasioned as a result of inability to purchase materials, equipment or other essential components and parts required in Lessee's operations as a result of short supply, or should such materials, equipment or components and parts be classified by the United St~rtes Govern- inert as strategic and a priority be placed therecr. by the government thereby rendering it iripossible for the Lessee to obtain s•:rne for its operation, ti:en and in eiti~er of such events such period of time shall not be considered as a ground for +ermination under the one (1) year clause or otherwise. 11. . P1AI'~T'PP:NAN CE OF AIRFOR'1' Lessors agree and are hereby obligated to continue operations of Louis Schreiner Air Field, Kerrville ?'_unicipai Airt;ort, during +he per-od of this lease agreement, and to main- tair. said airfield in good, usable condition and repair, for which purpose it was created. 12. 3?d;' OR CE? II;N T Any cause of action arising out of and by virtue of the term of tk.is agreement shall be maintainable in Kerr County, Texas, only. 13. SUCCESSORS AND ASSIGNS Phis agreement shall be binding upor. the parties nereto, their successors, legal representatives ar.d assigns; and it is expressly agreed and understood that if cry portion of this lease agreement shall be declared invalid by the opera+.i.or. of any ate*ute or by any court decision, then and in either event, such partial inv=alidity shall never d