INTERLOCAL LEASE AGREEMENT BETWEEN KERR COUNTY AND THE MOUNTAIN HOME VOLUNTEER FIRE DEPARTMENT THE STATE OF TEXAS § THE COUNTY OF KERR § This agreement, made and entered into by and between the Mountain Home Volunteer Fire Department, aduly-organized volunteer fire department under the laws of the State of Texas, hereinafter called "MHVFD" and Kerr County, a body corporate and politic under the laws of the State of Texas, hereinafter sometimes referred to as "Kerr," as follows: WHEREAS, Kerr County is aduly-organized political subdivision of the State of Texas, engaged in the administration of county government and related services for the benefit of the citizens of Kerr County; and WHEREAS, MHVFD is adult'-organized, not-for-profit, 501 (c)(4) volunteer fire department under the laws of the State of Texas and under the laws of the United States of America, engaged in providing fire protection and related services for the benefit of the citizens of a designated area of Ken• County; and WHEREAS, pursuant to Chapter 352, Texas Local Government Code, Ken has the duty, obligation and ability to furnish fire protection to azeas of Kerr outside county municipalities by contract with incorporated volunteer fire departments; and WHEREAS, the improvement in services and property improvements contemplated by this agreement would enhance MHVFD's ability to provide such fire protection services; and WHEREAS, Kerr owns a certain tract of land which is located in the MHVFD district; and WHEREAS, MHVFD desires to keep secure the approximately 2.1 acre tract of land by erecting and extending fencing, desires to construct a new fire department building upon said land, desires to have a location for an office, meeting place and restroom facilities, desires for its fire fighting equipment to be stored and protected in said new building, desires to have a location upon which it may park and store its additional fire fighting equipment, desires to maintain their own fuel tanks on said property for MHVFD purposes, desires to supply water to said tract of land, and keep full as possible a 15,000 gallon water tank located upon said property, all on a long term basis; and WHEREAS, Kerr desires to have its land secured, desires to have occasional access to an ample supply of water for road purposes, desires to have the use of the Kerr County 10,000 gallon asphalt tank located on said property, desires to have improved fire fighting capabilities and desires to have a dependable supply of water furnished to the premises, all on a long term basis; and WHEREAS, MHVFD and Kerr find that it would be in the best interests of the citizens of Kerr County and MHVFD to improve the efficiency and effectiveness of local governments and governmental entities by authorizing the intergovernmental contracting at the local level for all or part of the functions and services of fire protection and protection of citizens of Kerr and their property, therefore, Kerr and MHVFD mutually desire to be subject to the provisions of Chapter 791, Texas Government Code, the Interlocal Cooperation Act; and NOW, THEREFORE, in consideration of the mutual promises, benefits, consideration, and covenants contained herein, MHVFD and Kerr agree as follows: I. Basic Terms The term of this agreement shall begin on the day of , 20 and continue in full force and effect until the day of , 20 ,with renewal options as stated herein. Landlord: Kerr County, Texas Landlord Address: Kerr County C/O County Judge 700 Main Street, Suite 101 Kerrville, Texas 78028 Tenant: Mountain Home Volunteer Fire Department Tenant's Address: Mountain Home Volunteer Fire Department C/O Board of Directors P.O. Box 191 Mountain Home, Texas 78058 Premises: Approximately 2.17 acres out of John Billings Survey No. 656, Abstract No 89 located at the intersection of State Highway 27 and State Highway 41. Lease Term: 25 years Definitions: "Landlord" means landlord and its agents, employees, invitees, licensees, or visitors. "Tenant" means tenant and its agents, contractors, employees, invitees, licensees, or visitors. "Essential Services" means utility connections reasonably necessary for occupancy Of the premises for the permitted use. II. Clauses and Covenants A. Tenant agrees to: 1. Lease the premises for the entire term beginning on the commencement date and ending on the termination date. 2. Accept the premises in their present condition "AS IS". 3. Obey all applicable laws relating to the use, condition, and occupancy of the premises. 4. Obtain and pay for all essential services including but not limited to water and electricity. 5. Allow Landlord to enter premises to perform landlord's obligations and to inspect the premises, to access restroom facilities, to access water for Road and Bridge use, and to access stored Road and Bridge materials. 6. Repair, replace, and maintain any improvements to premises. 7. Repair any damage to premises caused by tenant. 8. To operate the premises in an efficient and reputable manner. 9. Vacate the premises on the last day of the term unless renewed and extended as provided by the extension option attached herein. 10. Indemnify, defend, and hold landlord harmless from any loss, attorney's fees, court and other costs, or claims arising out of tenant's use of premises. 11. Provide landlord access to MHVFD restroom facilities and asphalt tank located on premises. 12. Provide a portion of premises, as agreed between the parties, for Kerr County Road and Bridge to fence and store materials. 14. Obtain and maintain a continuous supply of potable water to premises. B. Tenant agrees not to: 1. Use the premises for any purpose other than the permitted use. 2. Create any nuisance. 3. Permit any waste. 4. Alter the premises in any other way other than provided herein without the prior written consent of landlord. 5. Allow a lien to be placed on the premises. 6. Assign this lease or sublease any portion of the premises without landlord's prior written consent. 7. Interfere with landlord's operations on premises. 8. Deny Kerr County Road and Bridge a supply of water, subject to immediate MHVFD fire-fighting needs. 9. Remove existing structures until tenant has provided documentation to landlord affirming tenant's financial capability to remove existing structures and complete construction of new structures in a timely manner. C. Landlord agrees to: 1. Lease to tenant the premises for the entire term beginning on the commencement date and ending on the termination date. 2. Tenant shall be entitled to remove existing structures only after providing documentation to landlord that tenant has sufficient assets to timely complete the project of removing existing structures and constructing new structures as agreed between the parties. 3. Not to interfere with MHVFD's access to water and access to fire-fighting Equipment. 4. Leave premises facilities in same or better shape as existed prior to any landlord use. D. Landlord and Tenant agree to the following: 1. Alterations -Any physical additions or improvements to the premises made by tenant will become the property of landlord. 2. Insurance -Tenant will maintain death/bodily injury and property insurance in an amount sufficient to cover statutory limits and value of facilities. 3. Subject to paragraph A-11 herein, landlord and tenant release each other from all claims or liabilities, by subrogation or otherwise, for damage to the premises by reason of fire or other elements, regardless of cause, including negligence of landlord and tenant. This release only to the extent that it is permitted by law, the damage is covered by insurance proceeds, and the release does not affect any insurance coverage. 4 4. Default by landlord/events -Defaults by landlord are failing to comply with any provision of this lease within thirty days after written notice. 5. Default by tenant/events -Defaults by tenant are abandoning or vacating a substantial portion of premises, and failing to comply within thirty days after written notice with any provision of this lease. 6. Remedy - It is agreed between the parties that prior to filing suit for damages, the parties will negotiate with each other in a timely manner and failing negotiation, mediate in good faith any disputes at the Hill Country Alternative Dispute resolution Center. 7. Default/Waiver/Mitigation - It is not a waiver of default if the non-defaulting Party fails to declare immediately a default or delays in taking any action. Pursuit of remedies set forth in this lease does not preclude pursuit of other remedies applicable at law. Landlord and tenant have a duty to mitigate damages. 8. Holdover - If tenant does not vacate this the premises following termination of this lease, unless lease extension is exercised, tenant will become a tenant at will and must vacate the premises on receipt of notice from the landlord. No holding over by tenant, whether with or without consent of landlord, will extend the term. 9. Venue -Exclusive venue is in Kerr County. 10. Entire Agreement -This lease is the entire agreement of the parties, and there are no oral representations, warranties, agreements, or promises pertaining to this lease not incorporated in this lease in writing. 11. Amendment -This lease may only be amended in writing signed by landlord and tenant. 12. Notices -Any notice required or permitted under this lease must be in writing. Any notice required by this lease will be deemed to be delivered when deposited with the United States Postal Service, postage prepaid, certified mail, return receipt requested, and addressed to the intended recipient at the address shown on this lease. Notice may also be given by personal delivery. Any address for notice may be changed by written notice delivered as provided herein. 13. Abandoned Property -Landlord may retain, destroy, or dispose of any property left on the premises at the end of the term. 14. Extension Option - At end of the lease term, tenant has the option to extend this lease upon the same terms and conditions for another twenty-five(25) year term. Upon expiration of the second lease term, tenant has the option to extend this lease upon the same terms and conditions for an additional twenty- 5 five (25) year term. To exercise either option tenant must give written notice to landlord on or before thirty days prior to end of lease term. SEVERABILITY: In the event that one or more of the provisions contained in the agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability of the agreement shall be construed as if such invalid, illegal or unenforceable provision has never been contained herein, but shall not affect the remaining provisions of this agreement, which shall remain in force and effect. The Mountain Home Volunteer Fire Department has executed this agreement pursuant to duly authorized resolution dated the day of , 20 Kerr County has executed this agreement pursuant to Commissioners Court Order No. 29626 ,passed on the loth day of April 20 05 APPROVED AS TO FORM AND CONTENT: KERB COUNTY Pat Tinley g10NER Kerr County Judge ~~``'1~'O ,. G O ~9~ ~' ' ~ AT T: ~~ ., ~ Q- ~9~c0UN1~~} Jame Pieper, Kerr County Cle ATTEST: By: MHVFD Secretary Mountain Home Volunteer Fire Department By: Stephen J. Goebel, President MHVFD Board of Directors ORDER AUTHORIZING EXECUTION OF INTERLOCAL LEASE AGREEMENT BETWEEN KERR COUNTY AND THE MOUNTAIN HOME VOLUNTEER FIRE DEPARTMENT THE STATE OF TEXAS § COUNTY OF KERR § On this the loth day of April . 20 05 ,the Commissioners Court, sitting as the governing body of Kerr County, at a regulaz meeting, upon motion of Commissioner Nicholson ,seconded by Commissioner Baldwin duly put and carried. IT IS ORDERED that County Judge Pat Tinley is hereby authorized to execute an Interlocal Lease Agreement between the Mountain Home Volunteer Fire Department fora 25 year term allowing use of the approximately 2.1 acre tract of land described herein by both parties a set forth, supra. SIGNED AND EXECUTED this loth day of ~\~S~pNERS~ O~ 't -~ i~ ~{ ( { y! ~~~~ %,-1Qf.~ ~ouN~y 2006 . at Ti.,nley, herr unty Judge f 7