2008-274ORDINANCE NO. 2008-
AN ORDINANCE AUTHORIZING AND APPROVING A FIRST EXTENSION TO THE
MASTER LEASE AGREEMENT ENTERED INTO BY AND BETWEEN THE CITY OF
DENTON, TEXAS AND THE DENTON COUNTY TRANSPORTATION AUTHORITY FOR
A PERIOD OF ONE-YEAR FOR TRACTS OF LAND LOCATED WITHIN THE CITY OF
DENTON LANDFILL; PROVIDING FOR RETROACTIVE APPROVAL THEREOF; AND
PROVIDING AN EFFECTIVE DATE;
WHEREAS, the City of Denton, Texas and the Denton County Transportation Authority
("DCTA"), a political subdivision and coordinated county transportation authority created
pursuant to Chapter 460 of the Texas Transportation Code, have previously entered into a Master
Lease Agreement (the "Master Lease") dated September 30, 2005 for certain real property that is
situated in the City's landfill; thereafter a First Amendment to Master Lease Agreement (the
"First Amendment") was entered into on December 4, 2006, but effective as of December 12,
2006, and which First Amendment added additional real property to the Master Lease; and the
Master Lease and the First Amendment to Master Lease have two one-year extension of lease
periods, with this renewal option being the first such period; and
WHEREAS, the term of both the Master Lease and the First Amendment expired on
September 30, 2008; DCTA has opted to exercise its one-year renewal option (from October 1,
2008 through September 30, 2009, and has properly notified the City of its intent to do so; and
WHEREAS, the City Council finds that the First Extension to the Master Lease
Agreement (the "First Extension") benefits the residents of the City and is for the public service
and convenience of the residents of the City; and that the one-year extension of the lease term to
September 30, 2009 should be approved; NOW THEREFORE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Manager or his designee is hereby authorized to execute a First
Extension to the Master Lease Agreement by and between the City of Denton, Texas as Lessor,
and The Denton County Transportation Authority, as Lessee on the real property described more
particularly in the Master Lease Agreement and the First Amendment to the Master Lease
Agreement situated within the City's landfill, in substantially the form of the First Extension to
the Master Lease Agreement which is attached hereto and made a part of this ordinance for all
purposes; as well as to exercise all rights and duties of the City of Denton, Texas under the First
Extension.
SECTION 2. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of /1Z 12008.
A. GHS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By: I , -
APP VEDA O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
By:l
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THE STATE OF TEXAS §
§ FIRST EXTENSION TO THE MASTER 17
COUNTY OF DENTON § LEASE AGREEMENT
THIS FIRST EXTENSION TO THE MASTER LEASE AGREEMENT (hereafter the
"First Extension") is made and entered into as of September 30, 2008, by and between THE CITY
OF DENTON, TEXAS, a Texas Municipal Corporation and a home-rule city (hereafter the
"Lessor''), and DENTON COUNTY TRANSPORTATION AUTHORITY, a political subdivision
and coordinated county transportation authority created pursuant to Chapter 460 Tex. Trans. Code
(hereafter the "Lessee").
WHEREAS, Lessor and Lessee are parties to that certain Master Lease Agreement dated
September 30, 2005 (hereafter, the "Master Lease") pertaining to certain leased Premises, more
particularly described in the Master Lease (the "Leased Premises"). The Leased Premises are located
in the City of Denton, Denton County, Texas; and
WHEREAS, Lessor and Lessee are also the parties to that certain First Amendment to
Master Lease Agreement dated December 4, 2006, but effective as of December 12, 2006, wherein
several provisions of the Master Lease were changed, to include without limitation, the leasing of
additional real property from Lessor by Lessee (hereafter the "Revised Leased Premises"); and
WHEREAS, Article 2.1 of the Master Lease provides that the initial term of the Master
Lease will expire on September 30, 2008; and
WHEREAS, Article 22 of the Master Lease provides for a procedure wherein the Lessee
may provide writtr.n notice to Lessor communicating its decision to extend the Master Lease and
First Amended Lease for an additional one-year Term, beginning on October 1, 2008 and ending on
September 30, 2009, unless further extended, as permitted in Section 2.2 of the Master Lease; and
WHEREAS, Lessee timely provided Lessor notice of its decision, by U.S. Mail to extend the
term of the Master Lease and the First Amended Master Lease for the first extension Term, provided
for in Article 2.2; and
WHEREAS, by this First Extension, Lessor hereby provides notice to Lessee that the 10,000
gallon fuel tank owned by Lessor, being more particularly described in Article 1.1(c) of the Master
Lease, and being located adjacent to the Service Bay Building, for which fuel tank Lessee shall have
the use of, to store fuel for Lessee's Vehicles during the Term of this Master Lease, will be replaced
during the extended Term of the Master Lease by an underground fuel storage tank of similar size;
once the replacement underground fuel tank is completed, then at that time, Lessee shall have the use
of it to store fuel for Lessee's vehicles during the remainder of the Term of this Master Lease;
NOW, THEREFORE, for and in consideration of the matters set forth herein and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Lessor and Lessee agree as follows:
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I . Effective as of the date of the last signature affixed hereto, and with proper execution
by both parties hereto, the Master Lease and the First Amendment shall reflect the following first
extension of Term:
(a) "The Term of the Master Lease and First Amended Lease is hereby extended, pursuant to
Article 2.2 of the Master Lease for a period of one-year, for the first extension of Term, from
October 1, 2008 through September 30, 2009."
(b) "The Rental in the first extension of Term shall be $10,607 per month until December 12,
2008; at that time the Rental will decrease for the remainder of the one-year extension Term
to $6,489 per month. The rental for the month of December, 2008 shall be prorated."
2. Except as amended by this First Extension to the Master Lease Agreement, the terms
and provisions of the Master Lease Agreement and the First Amendment to Master Lease Agreement
shall remain unchanged and shall remain in full force and effect.
3. This First Extension may be executed by facsimile signatures and in several
counterparts, and by the parties hereto in separate counterparts, and each counterpart, when so
executed and delivered, shall constitute an original agreement, and all such separate counterparts
shall constitute but one and the same agreement.
4. In the event of an inconsistency between this First Extension and the terms of either
the Master Lease Agreement or the First Amendment to Master Lease Agreement, this First
Extension shall govern.
5. This First Extension shall be binding upon and inure to the benefit of the parties
hereto, their representatives, successors and assigns.
[signature page to.followl
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IN WITNESS WHEREOF, this Agreement is executed as of the date first abov itten; but
shall be ra 'fied, confirmed and approved by the parties effective on the day of
2008.
"LESSOR"
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By:
I,,-
GEORG9 CAMPBELL, CITY MANAGER
ATTEST:
JENNIFER WALTEI S, CITY SECRETARY
By:
APP VED A O LEGAL FORM:
ANITA BURGESS, CITY TTORNEY
By.
U
"LESSEE"
DENTON COUNTY TRANSPORTATION
AUTHORITY
1660 South Stemmons Freeway., Suite 250
Lewisville, Texas 75067
By:
O HEDRICK, PRESIDENT
ATTa
(kk,~~ ~,I-
By:
APPROVED AS TO LEGAL FORM:
By:
PETE SMITH
GENERAL COUNSEL
(JJG/31959)
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