2009-043\\codad\departmentsVegal\our documents\ordinances\09\airport fans assignment of lease.doc
ORDINANCE NO. ,VN-a~l
AN ORDINANCE APPROVING AN ASSIGNMENT OF A LEASEHOLD INTEREST IN A
COMMERCIAL OPERATOR AIRPORT LEASE AGREEMENT AT DENTON MUNICIPAL
AIRPORT FROM JACK FASS TO PLANES OF HISTORY, INC. LOCATED AT 4665
SPARTAN LANE AT THE DENTON MUNICIPAL AIRPORT AND PROVIDING FOR
CHANGES TO INDEMINIFICATION AND INSURANCE REQUIREMENTS OF THE
LEASEHOLD; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, Jack Faas has requested that his Airport Lease Agreement Commercial
Operator at 4665 Spartan Lane dated March 27, 2001 and approved by Ordinance No. 2001-134
be assigned to Planes of History, Inc., and
WHEREAS, the City and Jack Faas wish to amend that certain Airport Lease Agreement
Commercial Operator approved by Ordinance No. 2001-134 to make certain other amendments
to Indemnification and Insurance requirements of the Lease; and
WHEREAS, the Airport Board recommends approval of the Assignment and
Amendment; and
WHEREAS, the City Council deems it in the public interest to approve this Assignment
of the Lease Agreement and the Amendment; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager, or his designee is hereby authorized to execute an
Assignment of a leasehold interest in an Airport Lease Agreement Commercial Operator at the
Denton Municipal Airport from Jack Faas to Planes of History, Inc. in substantially the form of
the Assignment attached to and made a part of this Ordinance for all purposes, to evidence the
City's consent to the Assignment.
SECTION 2. The City Manager, or his designee, is hereby authorized to execute an
Amendment to the Commercial Operator Airport Lease with Planes of History, Inc that provides
for changes to Section V. Rights and Obligations of Lessee, Paragraph B., Indemnity and Section
XII, Insurance, in substantially the form of the Amendment attached to and made a part of this
Ordinance for all purposes.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of , 2009.
MARK A. BURROLJGHSi MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
r
BY:
Page 2 of 2
%0dad\departrnentsUega1\our documentskonuwu\09kairport fags amendmcadoc
FIRST AMENDMENT TO
AIRPORT LEASE AGREEMENT
COMMERCIAL OPERATOR
THE STATE OF TEXAS
COUNTY OF DENTON
KNOW ALL MEN BY THESE PRESENTS
This First Amendment to that certain Airport Lease Agreement Commercial Operator
which was made and executed on March 27, 2001 at Denton, Texas, by and between the City of
Denton, Texas, a municipal corporation, hereinafter referred to as "Lessor," and Mr. Jack Faas
with principal offices at 6621 Brentwood Lane, The Colony, Texas 75056, hereinafter referred to
as "Lessee" which lease is simultaneously with this Amendment being assigned to Planes of
History, Inc. "Assignee".
WITNESSETH:
WHEREAS, the Assignee and the Lessor have agreed to amend the Lease to expand
requirements for Indemnification and Insurance as part of the Lease and the City Manager and
the Airport Advisory Board support the expanded rights and obligations of the Lease;
NOW, THEREFORE, in consideration of the promises and the mutual covenants
contained in this Agreement, the parties agree as follows:
SECTION 1. Section V. "Rights and Obligations of Lessee" is hereby amended to
provide for the following:
14 INDEMNITY. LESSEE MUST INDEMNIFY, HOLD HARMLESS AND
DEFEND THE LESSOR, ITS OFFICERS, AGENTS AND EMPLOYEES,
FROM AND AGAINST LIABILITY FOR ANY AND ALL CLAIMS LIENS
SUITS, DEMANDS AND/OR ACTIONS FOR DAMAGES, INJURIES TO
PERSONS (INCLUDING DEATH), PROPERTY DAMAGE, (INCLUDING
LOSS OF USE), AND EXPENSES, INCLUDING COURT COSTS,
ATTORNEYS' FEES AND OTHER REASONABLE COSTS OCCASIONED
BY OR INCIDENTAL TO THE LESSEE'S OCCUPANCY OR USE OF THE
LEASED PREMISES OR THE AIRPORT AND/OR ACTIVITIES
CONDUCTED IN CONNECTION WITH OR INCIDENTAL TO THIS
LEASE AGREEMENT, INCLUDING ALL SUCH CAUSES OF ACTION
BASED ON COMMON, CONSTITUTIONAL OR STATUTORY LAW OR
BASED IN WHOLE OR IN PART UPON THE NEGLIGENT OR
INTENTIONAL ACTS OR OMISSIONS OF LESSEE OR LESSOR. OR
THEIR OFFICERS, AGENTS EMPLOYEES INVITEES OR OTHER
PERSONS. LESSEE MUST AT ALL TIMES EXERCISE REASONABLE
PRECAUTIONS ON BEHALF OF AND BE SOLELY RESPONSIBLE FOR
THE SAFETY OF ITS OFFICERS EMPLOYEES AGENTS CUSTOMERS
VISITORSSIIWITEES, LICENSEES AND OTHER PERSONS, AS WELL AS
THEIR PROPERTY WHILE IN, ON, OR INVOLVED IN ANY WAY WITH
THE USE OF THE LEASED PREMISES. THE LESSOR IS NOT LIABLE
OR RESPONSIBLE FOR THE NEGLIGENCE OR INTENTIONAL ACTS
OR OMISSIONS OF THE LESSEE OR LESSOR, THEIR OFFICERS
AGENTS, EMPLOYEES, AGENTS, CUSTOMERS, VISITORS AND OTHER
PERSONS. LESSOR ASSUMES NO RESPONSIBILITY OR LIABILITY
FOR HARM, INJURY, OR ANY DAMAGING EVENTS WHICH ARE
DIRECTLY OR INDIRECTLY ATTRIBUTABLE TO PREMISE DEFECTS.
WHETHER REAL OR ALLEGED, WHICH MAY NOW EXIST OR WHICH
MAY HEREAFTER ARISE UPON THE LEASED PREMISES
RESPONSIBILITY FOR ALL SUCH DEFECTS. BEING EXPRESSLY
ASSUMED BY THE LESSEE. THE LESSEE AGREES THAT THIS
INDEMNITY PROVISION APPLIES TO ALL CLAIMS, SUITS DEMANDS
AND ACTIONS ARISING FROM ALL PREMISE DEFECTS OR
CONDITIONS.
THE LESSOR AND THE LESSEE EXPRESSLY INTEND THIS
INDEMNITY PROVISION TO REQUIRE LESSEE TO INDEMNIFY AND
PROTECT THE LESSOR FROM THE CONSEQUENCES OF THE
LESSOR'S OWN NEGLIGENCE, OF ANY KIND,' TYPE OR DEGREE,
INCLUDING, WITHOUT LIMITATION, LESSOR'S. SOLE NEGLIGENCE,
WHILE LESSOR IS PARTICIPATING IN THIS LEASE AGREEMENT
WHERE THAT NEGLIGENCE IS A CAUSE IN WHOLE OR IN PART OF
THE INJURY, DEATH, OR DAMAGE. NOTWITHSTANDING ANY
TERMS OF THIS AGREEMENT TO THE CONTRARY.
SECTION 2. Section XII "Insurance" is hereby amended to provide for the following:
A. REQUIRED INSURANCE: Regardless of the activities contemplated under this
Lease Agreement, Lessee shall maintain continuously in effect at all times during the term
of this agreement, at Lessee's sole expense, the following minimum insurance coverages:
Commercial (Public) General Liability covering the Lessee or its company, its employees,
agents, tenants and independent contractors, and its operations on the airport. Coverage
shall be in an amount not less than $1,000,000 per occurrence and provide coverage for
premises/operations and contractual liability, including without limitation, to indemnity
obligations of Lessee A ND where exposure exists, coverage for: products/completed
operations; explosion, collapse and underground property damage.
2. All risk property insurance on a replacement cost basis covering loss or damage to all
facilities used by the Lessee, either as a part of this agreement or erected by the Lessee
subsequent to this agreement. Under no circumstances shall the Lessor be liable for any
Page 2 of 6
damages to fixtures, merchandise or other personal property of the Lessee or its tenants.
3. Business Automobile Liability to include coverage for Owned/Leased Autos, Non-Owned
Autos and Hired Cars:
For operation in aircraft movement areas the limit of liability shall be $100,000 per
occurrence.
For other operations the limit of liability shall be consistent with the amount set by State
Law.
B. ADDITIONAL COVERAGES: In addition to the above referenced coverages, the
following insurance is required if the activity or exposure exists or is contemplated:
1. Aircraft Fuel/Oil Storage and Dispensing - Comprehensive Commercial (Public) General
Liability shall include coverage or separate coverage shall be provided for Environmental
Impairment Liability.
2. Aircraft Sales or Aircraft Charter and Air Taxi - Aircraft Liability in the amount of
$1,000,000 per occurrence to include Hull Coverage and Liability. In addition, Passenger
Liability in an amount of $100,000 per person (per passenger seat) shall be provided.
3. Aircraft Rental or Flight Training - Aircraft Liability in the amount of $1,000,000 per
occurrence to include Hull Coverage and Liability, Passenger Liability in the amount of
$100,000 per person (per passenger seat) and Student/Renter Liability covering all users in
the amount of $500,000 per occurrence.
4. Specialized Commercial Flying (including crop dusting, seeding, and spraying, banner
towing and aerial advertising, aerial photography and surveying, fire fighting, power line or
pipe line patrol) - Aircraft Liability in the amount of $1,000,000 per occurrence to include
Hull Coverage and Liability. In addition, Passenger Liability in an amount of $100,000 per
person (per passenger seat) shall be provided.
Aircraft Storage, Maintenance and/or Repair - Aircraft Liability in the amount of
$1,000,000 per occurrence to include Hull Coverage and Liability.. In addition, Hanger
Keepers Liability in the amount of $500,000 per occurrence shall be provided. The
requirement for Hangar Keepers Liability shall not apply to individual owner/operators
whose primary use of the hangar space is the storage of their own aircraft. The
requirement does not apply to such individuals notwithstanding the fact that they may,
from time to time, permit the storage of non-owned aircraft in the hangar space and
charge a fee for the storage of such aircraft so long as such use is in the nature of a
rent-sharing agreement rather than a commercial aircraft storage business.
C. COVERAGE REQUIREMENTS: All insurance coverages shall comply with the
following requirements:
Page 3 of 6
1. All liability policies shall name the City of Denton, and its officers and employees as an
additional named insured and provide for a minimum of 30 days written notice to the City
of any cancellation or material change to the policy.
2. All insurance required by this Lease Agreement must be issued by a company or
companies of sound and adequate financial responsibility and authorized to do business in
the State of Texas. All policies are subject to the examination and approval of the City's
office of Risk Management for their adequacy as to content, form of protection and
providing company.
3. Required insurance naming the City as an additional insured must be primary insurance
and not contributing with any other insurance available to the City whether from a third
party liability policy or other. Said limits of insurance shall in no way limit the liability of
the Lessee hereunder.
4. The Lessor shall be provided with a copy of all such policies and renewal certificates.
Failure of Lessee to comply with the minimum specified amounts or types of insurance as
required by Lessor shall constitute Lessee's default of this Lease Agreement.
5. During the Lease Term, or any extension thereof, Lessor herein reserves the right to, with
60 days notice, adjust or increase the liability insurance amounts required of the Lessee,
and to require any additional rider, provisions, or certificates of insurance, and Lessee
hereby agrees to provide any such insurance requirements as may be required by Lessor;
provided however, that any requirements shall be commensurate with insurance
requirements at other public use airports similar to the Denton Municipal Airport in size
and in scope of aviation activities, located in the southwestern region of the United States.
D. MATERIAL BREACH: Failure to maintain any insurance required by this agreement
or otherwise comply with Article )(II shall constitute a material breach of this agreement.
E. LESSOR'S RIGHTS: If at any time during the term of this agreement, any insurance
required by this agreement shall lapse or Lessor becomes aware of a pending or potential lapse,
Lessor in its sole discretion shall have the right but not the obligation to purchase applicable
insurance at Lessee's sole expense, or take any other action permitted by applicable law which
Lessor, in its sole discretion, determines is necessary to protect its interests pursuant to this
agreement.
SECTION 3. Save and except as amended hereby, all the remaining clauses, sentences,
paragraphs, sections and subsections of the Lease shall-remain in full force-and effect.
Page 4 of 6
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and
year above first written. cg 41
1'71 a g
BY LESSOR:
GEOR E C. CAMPBELL
CITY MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
BY LESSEE:
JAG F~S, PRESIDENT
PLANES OF HISTORY, INC.
Page 5 of 6
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
STATE OF TEXAS
COUNTY OF DENTON
This instrument was acknowledged before me on the -5 day of ,
20 0 9, by Jack Faas.
+!o~~• JULIE ANN MULLINS
Notary Public, State of Texas
[SEAL] a My Commission Expires
May 27, 2009
STATE OF TEXAS
COUNTY OF DENTON
Notary Public, State of Texas
My Commission Expires
(or Notary Stamp)
This instrument was acknowledged before me on the j day of,
20Q~, by George Campbell, City Manager on behalf the City of Denton, Texas, a municipal
corporation.
,0PY►~i
R K. WALTERS
• s
Notary pu lic, State of Texas
My Commission Expires
December 19, 2010
toary P lic, State-of Texas
o fission Expires
(or Notary Stamp)
Page 6 of 6