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1999-468AN ORDINANCE AUTHORIZING THE THIRD AMENDMENT TO AIRPORT LEASE AGREEMENT FOR FIXED BASE OPERATION (FBO) ACTIVITY BETWEEN THE CITY OF DENTON AND TEXAS AIR CENTER, INC, AND PROVIDING FOR AN EFFECTIVE DATE WHEREAS, certain real property upon the Denton Municipal Airport was leased to Texas Air Center, Ine, a Texas Corporation, by an Airport Lease Agreement for FBO Activity effective August 30, 1988 and amended on June 7, 1994 and October 6, 1998, and WHEREAS, the City of Denton and the lessee desare to amend the lease agreement again in accordance with Section H of Artlale IV of the Restated Lease of November 15, 1988, and WHEREAS, the Airport Advisory Board for the Caty of Denton has recommended approval of the Tbard Amendment, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS ~ That the attached Tlurd Amendment to Aarport Lease Agreement for FBO Activity between the City of Denton and Texas Air Center, Inc as approved SECTION 2 That the City Manager is authorized to execute the attached lease amendment on behalf of the City and the C~ty Secretary is d~rected to affix this ordinance with the executed lease amendment to the Airport Lease Agreement for FBO Activity effective August 30, 1988, mscnbmg on the original agreement the fact it has been amended and the effective date of this tlurd amendment ~ That this ordinance shall become effective immediately upon its passage and approval PASSED AND APPROVED thls the ~ dayof ~~ ,1999 JA~ ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY THIRD AMENDMENT TO AIRPORT LEASE AGREEMENT FOR FIXED BASE OPERATING ACTIVITY BETWEEN CITY OF DENTON AND TEXAS AIR CENTER, INC. STATE OF TEXAS § COUNTY OF DENTON § WHEREAS, the Tinrd Amendment to A~rport Lease Agreement For Fixed Base Operating (FBO) Activity ("Amendment") is entered into by and between the City of Denton ("Lessor") and Texas Air Center, Inc (formerly Air Denton, Inc ) ("Lessee") WHEREAS, on or about August 30, 1988, a lease agreement for FBO Activity ("Airport Lease") by and between the Lessor and Lessee became effective, and WHEREAS, Lessee and Lessor Restated lease on November 15, 1988 and Lessee and Lessor first amended the gnrport Lease on June 7, 1994, adopted a Second Amendment on October 6, 1998 and now desire to amend the Airport Lease agmn in order to comply with Section H of Article V of the Restated Lease regarding operations of the City's fuel farm at the mrport, and WHEREAS, this Third Amendment will also provide that tenants at the mrport selling fuel are treated m a non-discriminatory manner, NOW, THEREFORE, in consideration of the mutual promises and agreements contained in this Amendment, including the recitals set forth above, the parties agree as follows 1 That Article III, Section C of the Airport Lease as previously amended relating to "Fuel Fees" is hereby amended by repealing such Section C and in lieu thereof adchng the terms and conditions set forth in the Letter dated November 17, 1999 to the attention of Jim Huff from Mark Nelson identified as Exhibit "A", which is attached hereto and made a part hereof for all purposes 2 Tins Tinrd Amendment is intended to amend the provisions of the gnrport Lease and the First and Second Amendments thereto only to the extent expressly set forth above All of the terms, covenants, provisions, and conditions set forth in the Airport Lease and First Amendment and Second Amendment are ratified and confirmed except as expressly modified by tins Third Amendment This Agreement shall be bmdlng upon and shall inure to the benefit of the respective successors and asmgus of Lessor and Lessee Page 1 of 2 ~C~IN WITNESS WHEREOF, the parties have executed this Thtrd Amendment as of the dayof ._,~d~P/')'l.~(4/I , 1999 CITY OF DENTON, LESSOR ATTEST JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY TEXAS MrlI t~, INC, LESSEE THE STATE OF TEXAS § COUNTY OF DENTON § Thts instrument was acknowledged before me on this the ,~..,a[ day of__~~ 1999 by James W Huff, Jr Il '~1//.~""' ...... - a. 1,,.03 /I ~ ~'~ N°~a~Y ~ubhc,~ t ~'[~ ~f ~[~-- ' Commlss,on Etplms ~]1~ JO~ Page 2 of 2 EXHIBII. _,,,.. CITY OF DENTON, TEXAS DENTON MUNICIP,4L AIRPORT TERMIN.4 L ,B UIL D.,r ~\ G November 17, 1999 $O00AIRPO~TJVO DENTON, TX 76207 Mr Jim Huff, President Texas A~r Center, Inc 5007 Airport Road Denton, Texas 76207 Dear Mr Huff This letter ~s a follow up to our phone conversation on November, 9 concermng negottatlons on the operatmn of the above ground fuel system and the adjustment of your fuel flowage fee Pursuant to our agreement of May 1998, the lease agreement between the C~ty of Denton and Texas A~r Center, Inc will be amended to reflect the negotiated fuel flowage rate and operating responsibilities of the new fueling system The ~ntent of the fullow~ng agreements will be made to the appropriate sections of your lease Texas A~r Center will have the right of ~ngress and egress and use of the fueling system through August 30, 2019 Texas Air Center will ensure that the fuel level m any tank shall not fall below 2,000 gallons for more than sixty (60) days Ifth~s should occur, the Qty may take over use of smd tank, upon reimbursement for the wholesale cost of fuel then m the tank The fueling system shall be operated in comphance with all federal, state, and local regulations Begum~ng January I, 2000 Texas A~r Center shall pay the City of Denton slx percent (6%) of the wholesale price per gallon of fuel dehvered to Texas A~r Center Commencing September 1, 2009 and continuing through August 30, 2019, Texas A~r Center shall pay the City of Denton 7% of the wholesale price per gallon of all fuel delivered to the Lessee Texas Au' Center will ensure that the faclhty will be mamtmned m a safe, clean and attractive condition Texas A~r Center shall be responsible for all general maintenance of said fuel farm including, but not hmlted to replacement of fuel filters and hoses, repair and general maintenance of plpmg and electncal service, repmr and general mmntenance of pumps, recharge of fire extmgmshers, grass cutting, repairs to perimeter fencing, trash collection and removal Telephones (940) 349-7736 or 349-7702 Far (940) 383-7289 Web Address. http.//www, dentonatrport com "Dedwated to Quahty Serwce" The City of Denton shall be responsible for the replacement of fuel pumps and piping when required due to normal wear and tear Texas Air Center shall be responsible for the replacement of fuel pumps if it is determined that Texas Air Center's employees or representatives acted in negligence The City of Denton shall be responsible for reg~stratlon fees as reqmred by Federal or State agencies The City of Denton shall be responsible for the calibration of meters as required by Federal or State regulations The City of Denton shall reserve adequate land to provide for the future expansion of said fueling system to an aggregate capacity of 40,000 gallons Please review these proposed amendments to ensure that there is no misunderstanding concemmg the rights and obhgatlons of Texas 3ar Center, Inc and the City of Denton This information has been submitted to the City Attorney's office for final review The amendment IS scheduled for City Council consideration on Tuesday, December 7, 1999 Should you have any questions, please do not hesitate to contact me at 349-7702 Sincerely, Mark Nelson Airport Manager PC Mark Huff, Operations Manager, Texas Air Center Linda Rathff, Director of Eeonorme Development