ORDER N0. 17635 LEASE OF PROPERTY AT 323 EARL GARRETT, BETWEEN A, P. ALLISON AND KERR COUNTY APPROVED, SUBJECT TO THE APPROVAL OF THE FINAL DRAFT BY COUNTY ATTORNEY, GARY E. KERSEY On this the 29th day of December 1987, upon motion made by Commissioner Ray, seconded by Commissioner Holland, the Court unanimously approved a lease of property at 323 Earl Garrett, between A. P. Allison and Kerr County, subject to approval of final draft by County Attorney, Gary E. Kersey. It is further ordered by the Court that County Judge Danny R. Edwards be authorized to execute said Contract on behalf of Kerr County. ORDER N0. 17635 LEASE OF PROPERTY AT 323 EARL GARRETP BETiaEEN A. P. ALLISON AND KERB COUN'T'Y APPROVED, SUBJECP TO THE APPROVAL OF THE FINAL DRAFT BY COUNTY ATPORNEY, GARY E. KERSEY 12-29-1987 Vol. Q, Page 521 LEASE AGREEMENT STATE OF TEXAS $ COUNTY OF KERR § This lease agreement is made and entered into this 30th day of December, 1987, at Kerrville, Kerr County, Texas, by and between A. P. ALLISON, hereinafter called Lessor, and the COUNTY OF KERR, a political subdivision of the State of Texas, acting herein through its duly authorized representative, Danny R. Edwards, in his capacity as County Judge of Kerr County, Texas, hereinafter called Lessee. ARTICLE I DEMISE, DESCRIPTION, USE, TERM AND RENT Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, that certain property, hereinafter called the leased premises, situated in Kerr County, Texas, and described as follows: All that certain tract or parcel of land lying and bEinq situated in the County of Kerr, State of Texas, more particularly described in EXHIBIT "A" attached hereto and incorporated herein by reference for all intents and purposes as if copied herein verbatim. to be used as County business offices and uses normally incident thereto, for the term of two (2) years commencing on the earlier of (i) February 1, 1988 or (ii) upon the expiration of ten (10) days from the date of final completion of the alterations and repairs prescribed in Article IX hereof and ending two (2) years from date of commencement, at the total rental of THIRTY SIX THOUSAND AND NO/200 DOLLARS ($36,000.00), payable as specified in Article III. ARTICLE II OPTION TO RENEW OR EXTEND 2.01 Terms of Option - Lessee is hereby granted and shall, if not at the time in default under this lease, have an option to renew and/or extend this lease for an additional period of two E:~W/js/Allison/Kerr 'ounty Lease/12-29-II %,~J$!•1J (2) years from the termination date hereof on the same terms, covenants, anti conditions, and subject to the same exceptions and reservations, herein contained, except that the rental may be renegotiated by the parties, but shall in no event increase more than five percent (58). 2.02 How Exercised - This option shall be exercised by Lessee's delivering to Lessor in person or by United States mail on or before sixty (60) days prior to the end of initial lease term, written notice of its election to renew and/or extend the term of this lease as herein provided. 2.03 Execution of New Lease - In the event the Lessee shall elect to renew this lease and shall serve notice of such election, the parties hereto shall, on expiration of the term hereof, execute a new lease whereby Lessor shall lease to Lessee, and Lessee shall lease from Lessor, the leased premises herein- before described for the term of two (2) years from the date of expiration of the term hereof at the new rental fixed, but otherwise on the terms, covenants, and conditions herein con- tained, and subject to the exceptions and reservations herein set forth. ARTICLE III RENT 3.01 General Rent - Lessee agrees to and shall pay Lessor at 1214 Jackson Road, Kerrville, Kerr County, Texas 78026, or at such other place as the Lessor shall designate from time to time in writing, as rent for the leased premises, the total sum of Thirty-Six Thousand Dollars ($36,000.00), payable in equal monthly installments of ONE THOUSAND FIVE HUNDRED AND NO/100 DOLLARS ($1,500.00) each in advance beginning on the date of commencement of this lease as specified in ARTICLE I hereof and on the same day of each month thereafter until said total rental shall be paid. ARTICLE IV TAXES AND ASSESSMENTS 4.01 Payment by Lessor - Lessor shall pay and discharge -2- EAW/js/Allison/Xerr ^~unty Lea:;e/12~~~--'~7/JSS11 all ad valorem real property taxes, genl and special assess- lemsa<~~'~ee«~s<~s f 3fi th hi h d' e term o ur g c ments in regard to the ram r ~ ~ , w ,fey- °rG ~~~F ;~i`J !~ . .4 this lease may be levied on or assessed against the , ~,,d~ ti~ and all, interests therein and all permanent improvements theretol w io Clor,4 to j,e s>o4 G ~.~ 4 .02 Hold Harmless Clause - Lessor agrees to and shall protect and hold harmless Lessee from liability for any and all such taxes, assessments, and charges, together with any interest, penalties, or other sums thereby imposed, and from any sale or other proceeding to enforce payment thereof. ARTICLE V INSURANCE 5.01 and 5.02 Lessor's Obligation - Lessor agrees to and shall continue to maintain the existing insurance coverage on the building for fire and casualty during the lease term. The existing insurance coverage is in the amount of Fifty Nine Thousand Five Hundred and No/100 Dollars ($59,500,00) with One Hundred and No/100 Dollars ($100.00) deductible and covers property damage only. The coverage is carried through the Royce Cotten Agency with Farmer's Insurance-Truck Exchange Policy No. 75877701. 5.03 Lessee Obligations - Lessee agrees to and shall, within ten (10) days from the date hereof, secure a good and responsible company or companies doing insurance business in the State of Texas, and maintain during the entire term of this lease, the following coverage: (1) Public liability insurance in the minimum amount of THREE HUNDRED THOUSAND AND NO/100 DOLLARS ($300,000.00) for loss from an accident resulting in bodily injury to or death of one person, and ONE HUNDRED THOUSAND AND NO/100 DOLLARS ($100,000.00) for loss from an accident resulting in damage to or destruction of property (or such amounts as the parties may otherwise agree to in writing hereafter). 5.04 Additional Insureds - Lessor and Lessee agree that the other shall be named as an additional insured on the afore- mentioned policies o£ insurance. -3- EAW/'js/Allison/Kerr county Lease/12-29-87/JSS11 5.05 Proof of Coverage - On securing the foregoing cover- ages, the parties shall each give the other written notice thereof together with a copy of the appropriate policies. 5.06 Protection Against Cancellation - Proof must also be given by each party to the other, pursuant to Paragraph 5.04 that each of the policies provided for in this article expressly provides that the policy shall not be cancelled or altered without thirty (30) days prior written notice to the other party. 5.07 Failure to Secure - If either party at any time during the term hereof should fail to secure or maintain the foregoing insurance, the other party shall be permitted, after expiration of ten (10) days prior written notice without cure, to obtain such insurance in the defaulting party's name or as the agent of the defaulting party and shall be compettsated by the defaulting party for the cost of the insurance premiums. The defaulting party shall pay the other party interest on paid insurance premiums at the rate of ten (10) percent per annum computed from the date written notice is received that the premiums have been paid. 5.06 Proceeds - Proceeds from any such policy or policies of Fire and Extended Coverage insurance shall be payable to Lessor, who shall use such proceeds to make repairs as provided below. 5.09 Fire and Casualty Damage - If the building or other improvements on the leased premises should be damaged or de- stroyed by fire, tornado, or other casualty, Lessee shall give immediate written notice thereof to Lessor. 5.10 Total Destruction - If the building on the leased premises should be totally destroyed by fire, tornado, or other casualty, this lease shall terminate and rent shall be abated for the unexpired portion of this lease, effective as of the date of total destruction. 5.11 Partial Damage - If the building or other improve- ments on the leased premises should be damaged by fire, tornado, or other casualty, but not to such an extent that rebuilding or -4- EAW/js/Allison/Kerr "aunty Lease/1~-~9-87/JSS11 repairs cannot reasonably be completed within forty-five (95) working days from the date of written notification by Lessee to Lessor of the occurrence of the damage, this lease shall not terminate, but Lessor shall, at his sole cost and risk proceed forthwith to rebuild or repair such building and other improve- ments to substantially the same condition in which they existed prior to such damage. If the building and other improvements are to be rebuilt or repaired and are untenantable in whole or in part following such damage, the rent payable hereunder during the period in which they are untenantable shall be adjusted equi- tably. In the event that Lessor should fai^?~r'to co plete such Fo f+ ~~~~ cNS ) W~ rebuilding or repairs within cia~{6~}- working days from the date of written notification by Lessee to Lessor of the occur- rence of the damage, Lessee may at its option, terminate this lease by written notification at such time to Lessor, whereon all rights and obligations hereunder shall cease. Lessee shall pay any and _all damages caused by fire or other casualty in excess of , any amounts recovered from insurance which are proven~to be Tv+~xlm+~~•~ caused by the negligence of Lessee or Lessee's agents, employees, guests, or invitees, and in such event no adjustment of rent shall be made. ARTICLE VI UTILITIES 6.01 Lessee shall during the term hereof pay all charges for telephone, gas, electricity, and water used in or on the leased premises and for the removal of rubbish therefrom before they shall become delinquent and shall hold Lessor harmless from any liability therefor. ARTICLE VII WASTE AND NUISANCE 7.01 Lessee shall not commit, or suffer to be committed, any waste on the leased premises, nor shall he maintain, commit, or pezmit the maintenance or commission of any nuisance on the leased premises or use the leased premises for any unlawful purpose. -5- EAW/js/Allison/Kerr County l.easei~L-ZS7-~'; „u3ii ARTICLE VIII REPAIRS 8.01 Lessor's and Lessee's Duties to Repair - Lessor shall maintain and repair the leased premises in accordance with Lessor's requirements found hereafter and Lessee shall maintain and make all other repairs of the leased premises with the exception of casualty losses which are covered by Lessor's fire and extended coverage policy. 8.02 Lessor's Duty - Lessor shall repair and maintain the exterior walls and roof of the premises to include all exterior glass and doors. 8.03 Lessee's Right to Repair for Lessor or Vacate - If within thirty (30) days after Lessee's notice to Lessor of the need for repairs or maintenance which Lessor has a duty to repair, Lessor neglects to make such repairs, Lessee may repair the same himself and deduct the expenses of such repairs from the rent; or Lessee may vacate the premises, in which case he shall be discharged from further payment of rent or performance of other conditions. For purposes of this Paragraph 6.03, if Lessee makes repairs at Least thirty (30) days followi~.g his giving notice to Lessor, he will be presumed to have acted after a reasonable time. 8.04 Heating and Air-Conditioning. Maintenance - Upon commencement of the lease Lessor warrants that the heating and air-conditioning system will be in good operating order. Lessee has inspected and accepts plumbing and electrical "as is". Lessee's obligation to maintain the heating and airconditioning systems shall be limited to routine maintenance up to and including Two Hundred Fifty and No/100 Dollars ($250.00) per repair call. Expenses for heating and air-conditioning maintenance incurred in excess of $250.00 per repair call shall be paid by Lessor. 8.OS Other Interior Maintenance - Lessee shall pay all other repair and maintenance for the interior of the leased premises at Lessee's expense, exce~'t F