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2011-248s:llegallour documents\ordinances1111airportjet works Ist amendment arffvehicle.doc ORDINANCE NO. 2011-248 AN ORDINANCE AUTHORIZING THE CITY MANAGER TO APPROVE A FIRST AMENDMENT TO AN AIRPORT SAFETY EQUIl'MENT LEASE DATED OCTOBER 4, 2011 BETWEEN THE CITY OF DENTON, TEXAS AND JET WORKS AIR CENTER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, an Airport Rescue and Fire Fighting vehicle was leased to the City of Denton by Jet Worlcs Air Center in a Lease Agreement dated October 4, 201 l; and WHEREAS, the City of Denton and Lessor desire to amend the Lease Agreement; and WHEREAS, the City Council deems it in the public interest to approve a one hundred eighty (180) day extension of the Lease Agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS: SECTION 1. The City Manager or his designee is hereby authorized to execute a First Amendment to an airport lease agreement for an Airport Rescue and Fire Fighting vehicle between the City of Denton and Jet Worlcs Air Center in substantially the form of the Lease Agreement which is attached to and made a part of this ordinance for all purposes, SECTION 2. This ordinance shall become effective immediately upon its passage and approval. � PASSED AND APPROVED this the � day of � , 2011. MARK A. GHS AYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APP ED A O LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 1lcodadldepartmentsllegallour documentslcontracts1111airport jet works arff truck lease amendment.doc JET WORKS AIR CENTER FIRST AMENDMENT TO PROMOTIONAL VEHICLE LEASE AGREEMENT This First Amended Agreement is made this 13th day of December, 2011, between the City of Denton. ("LESSEE"), and Jet Worlcs Air Center ("Jet Worlcs") ("LESSOR"). 1. Equipment Covered. Jet Works agrees to lease to Lessee and Lessee agrees to lease from Jet Worlcs the following described equipment ("Vehicle"). Malce Model Vehicle Identification Number 1988-E-One Titan III 1F93BAA86J1037232 2. Term. This Agreement shall become effective on this date and shall continue in effect until June 12, 2012 unless terminated sooner as provided in paragraph 12. At the end of the term, the Vehicle shall be delivered to Jet Works without freight charges paid by Lessor, unless the term of the Agreement is extended by mutual agreement of the parties. 3. Charges. Lessee will pay Jet Works or its assignee, as rental for use of the Vehicle, a total amount of six hundred dollars ($600) payable in monthly installments of one hundred dollars ($100) beginning January 1, 2012, each month in advance during the term of this Agreement. 4. Warrantv. Jet Works makes no warranties, either express or implied and NO WARR�INTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE to the Lessee with regard to the Vehicle. Jet Works shall be liable for any special, incidental, or consequential damages arising out of Lessee's control, operation, use or maintenance of the Vehicle. 5. Maintenance and Repair. Lessor shall, at its own expense, keep the Vehicle in good condition and repair in accordance with the manufacturers' recommended procedures. In addition, Lessor shall maintain the Vehicle in compliance with applicable state and federal safety rules and regulations. Lessor shall furnish at its own expense, all necessary fuel, lubricants, grease, antifreeze, tires, tubes, and all other replacement parts and supplies necessary for maintenance and operation of the Vehicle. Jet Works will furnish or replace at its own expense components or replacement parts, if necessary, in accordance with the standard warranty policy for this vehicle. Lessee shall not alter or modify the Vehicle in any manner that would materially and adversely affect its value. 6. Taxes. Lessor shall pay any and all highway use, ton-mileage, axle-mileage, sales, revenue, use, or other type of tax, and all license fees, and any and a11 tolls, when such taxes, fees, and tolls are imposed on the Vehicle or by reason of the leasing thereof. Lessor sha11 also pay all costs of any inspection of the Vehicle required by any governmental authority. Lessor shall obtain all necessary fuel permits and/or bonds and shall keep or cause to be kept and made available to Lessee any necessary records relative to the use of the Vehicle and pertaining to such taxes. 7. Insurance. Lessor shall procure from insurance companies approved by City of Denton and maintain in full force during the term of this Agreement for each Vehicle such coverage as may be required by Lessee for each Vehicle. However, nothing contained in the following provisions shall prohibit the City from choosing, at its sole discretion, to self-insure one or more of the following coverages: (a) Liability insurance naming Jet Works Air Center., as an additional insured (if applicable) with limits for bodily injury and death resulting therefrom and damage or loss of property in not less than the following amounts: Comprehensive General Liability/ Bodily Injury and Property Damage $2,000,000 per occurrence/ $4,000,000 aggregate Automobile Liability $2,000,000 per occurrence (Jet Worlcs may be named under the City of Denton's automobile liability coverage) but in no event less than the amounts required by the authorities having jurisdiction for the use in which the Vehicle is engaged; (b) Lessor may procure and maintain in force workers compensation insurance in the amounts required by law in the state of Texas and all operation of the Vehicle will be performed by the Lessor's employees; (c) Physical damage insurance in an amount of $50,000 or cost to repair or replace basis covering the Vehicle insuring the respective interests of Jet Works, and its assigns, against loss or damage by collision, fire, theft and other hazaxds, commonly referred to as "comprehensive", subject to a deductible clause in an amount not more than $1000. Repair costs under the deductible amount shall be the responsibility of the Lessor. Each such policy sha11 provide that coverage shall not be canceled or materially changed unless the carrier shall give written notice to Jet Works and Lessee at least thirty (30) days prior to such cancellation or change. 8. Operation of Vehicle. Lessee agrees, at its own cost and expense, except as provided in paragraph 9, to use the Vehicle in a careful and prudent manner in the regular course of Lessee's business and to permit only qualified and licensed personnel to use the Vehicle, notifying each such person that he or she is not an employee of Jet Works or under Jet Works' direction or control. The Vehicle will not be used or operated in violation of any law, rule, regulation, statute, or ordinance applicable to the Vehicle or Lessee. Lessee shall indemnify and hold Jet Works harmless from and against any and all fines, forfeitures, seizures, confiscations, penalties, or damages and attorneys' fees related thereto arising out of the use and operation of the Vehicle in violation of any such law, rule, regulation, statute or ordinance. The Vehicle shall not be used contrary to any applicable insurance coverage specified herein. 9. Lessee Service Charges. Lessee is authorized by Lessor to charge for utilization of Standby Personnel requested by Lessor to operate the Vehicle for non-emergency purposes, such Standby Personnel to be qualified fire service personnel approved by the Denton Fire Chief, in an amount calculated at one and one-half (1.5) times the hourly wage rate for each individual so assigned. In addition, Lessor shall pay to the Denton Airport an amount of four hundred fifty dollars ($450) on the first day of each month during the term of this Lease beginning January 1, 2012, for the storage of the Vehicle on Airport property in an enclosed structure designed for such purpose. 10. Ownership. Lessee acknowledges that at all times during the term hereof, title and ownership of the Vehicle shall remain in Jet Worlcs and that the Lessee has not and does not by these presents acquire any proprietary rights or interests in the Vehicle. 11. Indemnification. To the extent permitted by the law, included but not limited to the limitations imposed by Article 3 Section 52 of the Texas Constitution, the City may indemnify Lessor. Lessee agrees to indemnify and hold Jet Worlcs harmless from and against any and all claims, causes of action, damages, demands, liabilities and expenses of any kind including, without limitation, attorneys' fees, fines and penalties relating to or arising out of the possession, maintenance, use, operation, releasing, control, or storage of any Vehicle covered by this Agreement, excluding claims solely from Jet Worlcs' negligence. The indemnity contained in this paragraph shall apply for the period of time the lease is effective and sha11 not be affected by the termination of this Agreement. 12. Termination. Jet Works may terminate this Agreement at any time upon ten (10) days written notice if, in its sole discretion, it considers the Vehicle not suitable for any proposed use, or if Lessee is in breach of any provision of this Agreement. Upon termination, the Vehicle shall immediately be removed from service and delivered, at Jet Worlcs' expense to Jet Works business location at Denton Airport. In addition, Lessee may terminate this Agreement for any reason upon ten (10) days written notice to Jet Works, and in such case shall return the Vehicle at its expense. 13. Additions and Accessories. Any additions, accessions, equipment or accessories added to Vehicle by Lessee shall become the property of Jet Worlcs upon termination or expiration of the Agreement. 14. Purchase Option. Prior to expiration of this lease agreement, Lessee may consider purchase of the Vehicle under terms and conditions negotiated between Lessee and Lessor. Lessee is under no obligation to purchase the Vehicle or to extend this lease agreement. Should Lessee fail to provide written notice of intent to purchase the Vehicle thirty (30) days prior to expiration of this lease agreement, then neither Lessee nor Lessor is under any obligation to continue providing this Vehicle for service at Denton Airport. 15. Assignment of Vehicle. Lessee shall not assign, transfer or sublet the Vehicle, this Agreement, or Lessee's interests hereunder without Jet Works' prior written consent (which may be withheld at Jet Worlcs's sole discretion), nor sha11 Lessee's interest hereunder inure to the 16. Return to Lessor. Upon expiration or termination of this Agreement, Lessee shall return the Vehicle to Jet Works in the same condition as when received by Lessee, excepting only reasonable wear and tear resulting from the normal and customary use thereof. Lessee shall provide at Lesse's expense the cost of any repairs necessary to place the Vehicle in the condition required by this Agreement at that time. 17. Limitation on Use. This Vehicle is leased to Lessee solely for use at Denton Airport to provide customary airport rescue and fire fighting services to any airport user or for service to any public infrastructure at Denton Airport. 18. Venue. Venue for any cause of action arising under this contract shall be Denton County, Texas. 19. Notices: All notices required under the terms of this lease shall be sent by normal mail delivery to the following: To Lessee: Quentin Hix Airport Manager City of Denton 5000 Airport Road Denton, Texas 76209 (940) 349-7744 To Lessor: Trey Bryson President Jet Works Air Center 5035 Warbird Drive Denton, Texas 76207 IN WITNESS WHEREOF, each of the parties hereto has caused their presence to be duly executed the day and year first above written by a person duly authorized. City of Denton B( --�_ Y George . Campbell City Manager APPROVED AS TO FORM: ANITA BURGES S, CITY ATTORNEY � � /i ._�� JET WORKS AIR CENTER By -�—� rey ryson President