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City Council |
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Agenda Request |
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Agenda Of: |
May 20, 2008 |
Agenda Request No: |
V-F |
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Initiated By: |
Adam Scott airport business manager |
Responsible Department: |
aviation |
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Presented By: |
phillip w. savko director of aviation |
Department Head: |
phillip w. savko director of aviation |
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Additional Department. Head (s): |
n/a |
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Subject / Proceeding: |
lease of northwest i hangar to western airways |
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Exhibits: |
northwest i hangar lease |
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Clearances |
Approval |
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Legal: |
meredith wilganowksi, assistant city attorney |
Executive Director: |
joe esch bus & intergov
relations |
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Purchasing: |
Linda Symank Director of Fiscal Services |
Asst. City Manager: |
n/a |
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Budget: |
Jennifer brown assistant fiscal services director |
City Manager: |
Allen Bogard |
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Budget |
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Expenditure Required: $ |
N/A |
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Current Budget:
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N/A |
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Additional Funding:
$ |
N/A |
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Recommended Action |
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Authorize the City Manager to execute the lease between City of Sugar Land and Western Airways. |
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Executive Summary |
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The City acquired
the Northwest hangar complex in 2005 for $250,762 as part of a lease
termination agreement with the Friedkin companies. Since that time, the two hangars have been
leased to a number of aircraft on a month-to-month basis until a long-term
tenant could be identified. Last
summer, Western Airways expressed an interest in leasing both hangars in
order to expand its operations. Despite
the fact that an aircraft owned by the Shaw Group was damaged upon landing at
the airport in November and is still undergoing repairs in the Northwest II
hangar, Western desires to execute a lease of the Northwest I hangar and
offices at this time. Western would
also like to lease the Northwest II hangar when it becomes available. Western Airways,
an aircraft charter and management company, is a long-time tenant of the
airport. The company currently owns
two large hangars constructed on land leased from the airport; and its annual
fuel purchases are the highest among based tenants. Airport management
met with the Western’s president, Mr. George Dodge, to work out details of a
possible lease agreement. This
information was presented to the Business Incentives Committee, which expressed
approval of the lease agreement. Details of the lease include the following:
Western’s monthly lease rate for the entire Northwest Complex (once Northwest II becomes available) will be $8,795 per month. Airport management anticipates this lease rate coupled with additional fuel sales will exceed the original $123,541 in revenues projected when the hangars were purchased. |
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Exhibits |
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CITY OF SUGAR LAND
WESTERN AIRWAYS
TERM LEASE
FOR IMPROVED AIRPORT PROPERTY
(NW I)
This Lease is made between the CITY OF SUGAR LAND, (the City), a municipal corporation of the State of Texas, and Lessee. In consideration of the mutual covenants contained in this Lease, the parties agree as follows:
1. Definitions and Exhibits.
1.1. Definitions. The following words as used in this Lease have the following meanings unless the context clearly indicates otherwise:
Airport means the Sugar Land Regional Airport.
Aviation Director means the City's Aviation Director or the person, by whatever title, designated by the City to be responsible for operation of the Airport.
City
means the City of Sugar Land, Texas.
City Council or Council means the City Council of the City.
City Manager means the City Manager for the City.
F.A.A. means the United States Federal Aviation Administration or its successor agency.
Initial Improvements mean the initial air conditioning, electrical, water, and other associated repairs to serve the building on the Premises undertaken by Lessee as provided for in this Lease.
Lease means this agreement.
Lessee
means Western Airways, Inc.
Premises means the improved real property described in Exhibit A, located at the Airport.
1.2. Exhibits. This Lease includes the following exhibits, attached to and incorporated into this Lease by reference. Any amendment of any Exhibit to this Lease approved by the City Council shall be attached to this Lease as a modification of this Lease. The amendment to the Exhibit is effective when the City gives Lessee written notice of the amendment.
Exhibit A is a drawing of the Premises.
Exhibit B is the Sugar Land Regional Airport Minimum Requirements and Standards as approved by and amended from time-to-time by the City Council (Minimum Requirements and Standards).
Exhibit C is the Airport Rules as approved by and amended from time-to-time by the City Council (Airport Rules).
Exhibit D is the FAA requirements.
Exhibit E is the City's insurance requirements applicable to Lessee under this Lease (PU-111F-6 Insurance for Airport Fixed Base Operator).
Exhibit F shows the adjusted monthly lease rental payments as they are established for each subsequent five-year term, or portion thereof, of this Lease.
2. Leased Premises and Airport Use.
2.1. The City leases to Lessee and Lessee leases from the City the improved real property describe in Exhibit A.
2.2. Lessee may use the Leased Premises only for the purpose of conducting aviation related operations that comply with the Minimum Standards and Requirements applicable to Commercial Operator Group Two (Exhibit B), and for no other purpose, unless approved by the City's aviation director. Lessee must comply with the Airport Rules (Exhibit C) and the requirements of the Federal Aviation Administration (Exhibit D), and any amendments to Exhibits C or D hereafter made by the City, copies of which are kept on file by the City's Aviation Director.
2.3. Lessee is granted the non-exclusive use of all portions of the Airport that are open for use by the public for the purpose of landings, takeoffs, and taxiing of aircraft, on the same terms and conditions as are applicable to the public.
2.4. Lessee must not store any hazardous materials or toxic substances on the Leased Premises, except those materials and substances necessary and related to the performance of activities permitted on the Leased Premises. If any hazardous material spills or leaks are discharged on or from the Leased Premises arising from the acts or omissions of Lessee or Lessee's invitees or agents, Lessee must immediately make all repairs necessary to prevent further spills, leaks, or discharges and must immediately clean up the spill, remove any contaminated soil and promptly dispose of the same in accordance with the applicable law.
2.5. The Lessee must not place or permit the placement of any sign, banner, flag, placard, or similar advertising devise on the Leased Premises so as to be visible outside of an enclosed building located on the Leased Premises, unless approved in writing in advance by the Aviation Director. Any sign approved by the Aviation Director that is governed by the City's sign regulations must comply with those regulations, including the requirement to obtain a permit from the City.
3. Term, Termination, and Default.
3.1. Subject to the other termination provisions contained in this Lease, this Lease begins on _______________, 2008 and continues for an initial term of five-years. Thereafter, the Lessee may extend the term of this Lease two times, in five-year terms, by giving the City written notice of each five-year extension at least 180 days prior to the date the Lease would otherwise terminate.
3.2. Should Lessee default in the performance of any provision of this Lease, the City will give written notice to Lessee of the default and what must be done to correct the default. If the default is not corrected within 30 days after the City gives the Lessee written notice of the default, the City may immediately terminate this Lease by delivering notice of termination to Lessee.
3.3. The City may terminate this Lease at any time during its term by giving the Lessee written notice of termination at least 120 days prior to the termination date, if:
(a) The City decides to relocate all or part of any building or other improvements located on the Leased Premises to any land not included in the Leased Premises;
(b) Demolish all or part of any building or other improvements located on the Leased Premises;
(c) Lessee terminates or fails to renew any other lease with the City; or
(d) Lessee fails to enter into a lease with the City for Northwest Hangar II within one year from the beginning date of this lease.
3.4. If the improvements on the Leased Premises are so damaged or destroyed so that they may not be used for their intended purpose, as determined by the City, this Lease terminates on the date of the damage or destruction.
3.5. If Lessee remains in possession of the Leased Premises after the termination date of this Lease with the City's consent, the Lessee's holding over will be considered a month-to-month tenancy beginning on the termination date of this Lease, and not a renewal or extension of the term of this Lease, at the monthly rental rate provided in this Lease.
3.6. Upon termination of the Lease, the Lessee must immediately remove all personal property from the Leased Premises and must surrender the Leased Premises in substantially the same condition as existed at the beginning of the Lease, normal wear and tear excepted.
3.7. Subject to the this paragraph and notwithstanding any other provision of this Lease, Lessee shall be entitled to terminate this Lease early by giving at least one hundred twenty (120) days prior written notice to the City. If the Lessee terminates the Lease under this paragraph:
(a) Lessee will not be entitled to a reimbursement of that portion of Lessee’s expenses for the initial improvements that have not been recovered through a credit against Lessee’s monthly rent under Section 5.1;
(b) If the Lease is terminated within the first three years of the Lease, prior to vacating the Leased Premises Lessee will pay to the City the then unamortized balance of the costs of the repairs made by the Airport within the first three years under Section 5.4;
(c) If the Lease is terminated after the first three years of the Lease, prior to vacating the premises the Lessee will pay to the City the then unamortized cost of the improvements made by the City that otherwise would have been paid by Lessee through the rental charge under Section 5.4; and
(d) Lessee will not be entitled to receive any
reimbursement of the costs of repairs made by Lessee under Section 5.3.
4. Rentals and Payments.
4.1. Lessee will pay to the City each month a rental payment of $7,031.00 for Northwest Hangar I.
4.2. Beginning on the third anniversary date of this Lease, Lessee will pay to the City each month any amortized repair costs per section 5.4 of this lease.
4.3. Beginning on the fifth anniversary date of this Lease and at the beginning of each subsequent five-year anniversary date, the amount of the monthly rent automatically increases by 10%. The adjusted monthly rent established for each subsequent five-year term, or portion thereof, of this Lease will be reduced to writing, signed by each parties' representative, and attached to this Lease as Exhibit F.
4.4. Each monthly rental payment is due on the first City business day of each month without notice or billing from the City and will be delivered to the City's Finance Department, P.O. Box 5029, Sugar Land, Texas 77487-5029, or to the department and address as specified by the City in writing from time-to-time.
4.5. Any monthly rental payment not paid by the 15th day of the month due is delinquent and shall include an additional monetary amount, as a penalty, equal to five percent of the monthly rental due for that month. All rental payments which are past due more than 30 days will accrue simple interest at the rate of 18 percent annually on the overdue amount.
5. Improvements, Repairs, and Maintenance.
5.1. Prior to making or constructing any initial improvements to the Leased Premises, Lessee must submit the improvements to the City Manager for approval. The Lessee must prepare its plans and perform all work to comply with governing statutes, ordinances, regulations, codes and insurance rating boards and apply for and obtain required permits from the City prior to commencement of the improvements. Lessee must complete construction of the initial improvements on or before ____________, 2008, unless the City Manager grants an extension. All costs and expenses related to the construction of the initial improvements will be paid by Lessee. Within 30 days from the completion of the initial improvements, Lessee will submit receipts showing the costs and expenses of the initial improvements to the Aviation Director. The Aviation Director will authorize a credit to Lessee’s next monthly rental payment in an amount equal to the costs and expenses of the approved initial improvements.
5.2. The Lessee must not make any structural or permanent modifications or improvements to the Leased Premises without the prior written consent of the City. The Lessee must obtain required permits from the City prior to commencement of structural or permanent modifications or improvements to the Leased Premises. Any structural or permanent improvements or modifications of the Leased Premises approved by the City become the property of the City upon termination of the Lease.
5.3. After completion of the initial improvements, Lessee must make any repairs to the Leased Premises arising from normal wear and tear that do not cost more than $3000.
5.4. After completion of the initial improvements, Airport will make any necessary repairs to the Leased Premises that exceed $3000. Airport will pay the full cost of these repairs during the first 3 years of this Lease. Costs related to any such repairs required after the first 3 years of this Lease will be amortized over the expected life of the repair at the airport’s investment rate for the period and added to Lessee’s monthly rental charge.
5.5. Lessee must, to the satisfaction of the Aviation Director, keep and maintain the Leased Premises in a clean and sanitary condition. The Lessee must provide or pay for the cost of removing and disposing of solid waste from the Leased Premises. The Aviation Director may issue and Lessee must comply with any written directive regarding the type, location, and screening of trash containers maintained by the Lessee or its contractor outside any building.
6. Taxes,
Utilities, and Insurance.
6.1. Lessee must pay, before they become delinquent, all taxes, assessments, and fees assessed or levied upon Lessee’s property, the Leased Premises, or leasehold interest.
6.2. Lessor must provide, maintain, and repair the facilities necessary to provide water and wastewater services to the rest room facilities within the Leased Premises. During the Lease term Lessor has the right to construct and install lines and equipment on the Lease Premises for the purpose of providing water supply and wastewater services to the Leased Premises from the Lessor's public water and wastewater systems. If the Lessor does provide those services to the Leased Premises, the Lessee must, within 30 days of the Lessor making the connection to the Leased Premises water supply and plumbing systems, begin receiving and paying for water and wastewater services in accordance with the rates, rules, and regulations applicable to other customers of the Lessor's water and wastewater system, including any deposits required for new customers.
6.3. Lessee must pay for all telephone, electric, cable television, gas and other telecommunication or utility services for the use and enjoyment of the Leased Premises. The City has the right, without charge by Lessee, to connect to power, gas, and communication lines or equipment as are now or later installed upon the Leased Premises and has the right of access to construct and maintain the connections. Lessee, however, is not liable for any additional service fees or charges imposed by the utility provider as a result of the connection.
6.4. Lessee must obtain and maintain during this Lease, at Lessee's expense, insurance for an Airport Fixed Base Operator (FBO) as set forth in PU-111F-6, attached as Exhibit E to this Lease.
7. Miscellaneous Provisions.
7.1. Entire Agreements and Amendments. This Lease sets forth all of the understandings of the parties. Any modification of this Lease must be written.
7.2. Unlawful Use. Lessee and its employees and agents must not use or knowingly allow any other person to use the Leased Premises in violation of any federal, state, county, or local regulation, order, law, or ordinance that applies to the Leased Premises.
7.3. Notices. Any notice given under this Lease must be in writing and may be sent by mail; be delivered in person to the Lessee, its officers, employees, or agents; be posted on the Leased Premises; or be sent by telecopier; addressed as follows, or as the City or Lessee may hereafter designate by written notice:
To the City: Director of Aviation
City of Sugar Land
12888 Highway 6 South
Sugar Land, Texas 77487
To Lessee: Western Airways, Inc.
200 Jim Davidson Drive
Sugar Land, Texas 77478-5706
Attn: George A. Dodge, President
7.4. Assignment and Subleases. Lessee must not assign this Lease or sublease any portion of the Leased Premises to any other person without the prior written consent of the City.
7.5. Right of Entry. The City has the right at any time to enter onto the Leased Premises for the purpose of inspecting the Leased Premises, making necessary repairs, additions or alterations as may be necessary for the safety, improvement, or preservation of the Leased Premises.
LESSEE
By:____________________________
Title: __________________________
Date:_________________________
CITY OF SUGAR LAND, TEXAS
By: ___________________________
Date:__________________________
ATTEST: Reviewed for legal compliance:
____________________________
Glenda Gundermann, City Secretary
EXHIBIT
A
Northwest
I Hangar
400
Hull Lane
Offices
400-A Hull Lane
Sugar
Land, TX 77478
EXHIBIT B
SUGAR LAND MUNICIPAL AIRPORT
MINIMUM STANDARDS AND REQUIREMENTS
(As Amended August
17, 1999 by Resolution No. 99-42)
The following minimum standards and requirements have been established by the City of Sugar Land, owner of the Sugar Land Municipal Airport, for aeronautical activities on the Airport. The purposes of these standards and requirements is to protect the public interest in the safe and efficient operation of the Airport; to enhance its orderly growth; to establish development guidelines; and to insure compliance with all federal, state, and local laws and regulations.
I. DEFINITIONS
A. AERONAUTICAL ACTIVITY means any activity relating to the operation of aircraft or which contributes to the safety of such operations.
B. AIRCRAFT means any airplane, glider, airship, balloon, helicopter or other device licensed by the Federal Aviation Administration for flight through the air.
C. Persons who want to make regular use of the Airport for commercial or non-commercial aeronautical activity under a permit or written agreement are classified as follows:
1. COMMERCIAL OPERATOR, GROUP ONE -- Any person providing goods or services to the public relating to authorized aeronautical activity, except those activities reserved to the City, from permanent improvements meeting the Standards and Requirements for a commercial operator, group one.
2. COMMERCIAL OPERATOR, GROUP TWO -- Any person providing goods or services to the public relating to authorized aeronautical activity, except those activities reserved to Commercial Operator, Group One or the City, from permanent improvements meeting the Standards and Requirements for a commercial operator, group two.
3. SPECIALIZED COMMERCIAL OPERATOR -- Any person authorized by permit to conduct specific commercial aeronautical activity of a limited or part time nature which does not require permanent facilities.
4. AIRPORT TENANT, GROUP ONE -- Any person constructing or leasing airport facilities or land for more than one year for non-commercial aeronautical activity.
5. AIRPORT TENANT, GROUP TWO -- Any person leasing existing airport facilities for one year or less for aircraft tiedown or storage.
II. GENERAL PROVISIONS
A. Permit or Agreement Required. No person shall carry on any aeronautical activity on the Airport without first receiving a written permit or entering into an agreement with the City authorizing the activity. All permits and leases shall comply with these Standards and Requirements.
B. Existing Tenants. Existing airport tenants, commercial operators and flying clubs as of the effective date of these Standards and Requirements shall have one year or until the termination of any existing agreements to comply with these Standards and Requirements.
C. Application. Any person desiring to lease Airport property must complete a standard application and submit the application and required fee to the Airport Director.
D. Activities Reserved to City. The following activities are reserved exclusively to the City and no person shall engage in any of the listed activities on the Airport, except as specifically authorized in writing by the City:
1. The sale of aviation fuel on the Airport or dispensing or supplying aviation fuel for consideration on the Airport.
2. The construction or operation of hangars under 2500 square feet and tiedown aprons for the month-to-month storage of propeller driven based aircraft.
3. The construction and operation of all facilities for airfreight or scheduled air service, including associated service facilities such as restaurants, bars, auto rental agencies and gift shops.
E. Activities Authorized by Permit or Lease. Other persons may by permit or lease engage in one or more of the following aeronautical activities on the airport.
1. Aircraft sales
2. Aircraft rental
3. Flight training
4. Storage or aircraft and parts
5. Routine maintenance, inspection and repair of reciprocating powered aircraft, engines and airframes including gliders
6. Routine maintenance, inspection and repair of turbo prop and turbo jet powered aircraft, engines and airframes
7. Air taxi service
8. Radio, instrument, or propeller repair service
9. Specialized commercial services
10. Flying clubs
11. Storage or tiedown of transient aircraft
12. Storage or tiedown of based aircraft
13. Air Freight
14. Scheduled air service
15. Aircraft Fabrication
III. COMMERCIAL OPERATOR GROUP ONE
A. Aeronautical
Activities Authorized
The Commercial Operator Group One may perform any authorized aeronautical activity not reserved to the City. Aviation activities reserved solely for Commercial Operators, Group One are as follows:
1. Storage or tiedown of transient aircraft; and
2. Routine maintenance, inspection and repair of turbo prop and turbo jet aircraft engines and airframes.
B. Minimum Requirements
1. A lease of a minimum of two acres of land within the area identified for suitable development by the approved airport master plan.
2. The operator shall be staffed with adequate personnel to provide services eight hours each and every weekday.
3. The operator shall perform aircraft arrival and departure guidance on the ramp including transient aircraft parking and tiedown services and transient hangar space.
4. The operator must provide a passenger lounge and a public telephone available to customers during normal business hours.
5. Minimum permanent improvements required are:
(a) 2,000 square feet of combined offices and lobby space.
(b) Onsite auto parking facilities at a rate of one space per every 1,000 square feet of hangar area and 15 spaces per every 1,000 square feet of office/lobby.
(c) Aircraft ramps and automobile parking lots lighted during hours of darkness.
(d) One metal or concrete hangar with a minimum of 10,000 square feet of interior clear space capable of handling a 60,000 pound gross weight aircraft.
(e) A minimum of 20,000 square feet of concrete aircraft parking apron designed and constructed for at least a 60,000 pound gross weight aircraft.
(f) Premises shall be landscaped.
(g) Outside equipment or parts storage areas and trash bins screened from public view.
(h) Adequate fencing and other controls to deter the inadvertent access of persons and vehicles onto the aircraft operating areas of the premises.
(i) Public rest rooms.
IV. COMMERCIAL OPERATOR, GROUP TWO
A. Aeronautical
Activities Authorized
The Commercial Operator Group Two may perform any authorized aeronautical activity, except those reserved for Commercial Operators, Group One.
B. Minimum Requirements
1. Leases shall be a minimum of one acre of land within the area identified for suitable development by the approved airport master plan.
2. The Commercial Operator must be staffed with adequate personnel to provide aircraft services totaling 40 hours each and every week.
3. The minimum improvements required are:
(a) 1,000 square feet of office/shop space.
(b) Onsite paved auto parking facilities at a rate of one space per every 1,000 square feet of common hangar area and 10 spaces per every 1,000 square feet of office/shop.
(c) Premises shall be landscaped.
(d) Outside storage areas and trash bins screened from public view.
(e) Aircraft ramps and automobile parking lots lighted during all hours of darkness.
(f) One metal or concrete hangar of a minimum of 5,000 square feet in size capable of handling a 20,000 gross weight aircraft.
(g) A concrete aircraft parking apron at least equal in size and adjoining each hangar used for the operation.
(h) Adequate fencing and other controls to deter the inadvertent entry of persons and vehicles onto the aircraft operating areas of the premises.
(i) Public rest rooms.
V. SPECIALIZED COMMERCIAL OPERATOR
A. Aeronautical
Activities Authorized
The following aeronautical activity of a limited or part time nature as authorized by permit issued by the City, including.
Flight Services Mobile
Freelance Flight Instruction Aircraft Cleaning
Banner towing and aerial advertising Airframe and Engine Repair
Aerial photography or survey
Any other operations specifically excluded from Part 135 of the Federal Aviation Regulations which do not require facilities or are of a temporary or part time nature.
B. Minimum Requirements
1. Issuance of a use permit issued by the Airport Director specifying a particular authorized aeronautical activity. The permit will be for a period of not greater than one year, require the advance payment of fees, and will be cancelable for any reason with thirty days notice.
2. The location for conducting the operations shall be from the premises of a Commercial Operator Group One or Two, or from an area of the airport determined acceptable for the operations by the City Manager.
VI. AIRPORT TENANT GROUP ONE
A. Aeronautical Activities Authorized
The storage of wholly owned or leased aircraft and service and maintenance of those aircraft limited to that authorized by the lease agreement. The tenant may not hangar aircraft owned by others, nor offer, nor provide, for financial gain, any services whatsoever to others, except, however, other's aircraft may be temporarily hangared without compensation. "Temporarily" means less than 60 days in any one calendar year.
B. Minimum Requirements
The requirements of Commercial Operator, Group Two apply, with the exception of the minimum requirement topics of B, 2, staffing of personnel; B, 3, (b) parking requirements and B, 3, (i) public restrooms; to be negotiated in the lease..
VII. AIRPORT TENANT GROUP TWO
A. Aeronautical Activities Authorized
The storage or tiedown of wholly owned or leased aircraft and minor service and maintenance of those aircraft.
B. Minimum Requirements
Execute rental agreement and pay fees.
VIII. FLYING CLUBS
A. Aeronautical Activities Authorized
In an effort to foster and promote flying for pleasure, develop skills in aeronautics, including pilotage, navigation, and an awareness and appreciation of aviation requirements and techniques, Flying Clubs may use the Airport subject to these Standards and Requirements.
B. Minimum Requirements for Flying Clubs
1. The club shall be an entity (corporation, association or partnership) organized for the express purpose of providing its members with aircraft for their personal use and enjoyment. The aircraft must be vested in the name of the flying club through a Lease, Lease Purchase, or Direct Purchase. The club may not derive greater revenue from the use of its aircraft than the amount necessary for the operations, maintenance and replacement of its aircraft.
2. Flying clubs may not offer nor conduct charter, air taxi, or rental of aircraft. They may not conduct aircraft flight instruction except for regular members, and only members of the flying club may act as pilot in command of the aircraft. No flying club shall permit its aircraft to be utilized for the giving of flight instruction to any person other than a regular member of the club.
3. The flying club shall furnish the City a copy of its charter and by‑laws; a roster, or list of members, including names of officers and directors; a certificate of insurance in the form and amounts specified from time to time by the City with said certificate naming the "City of Sugar Land" as additional insured with a ten (10) days prior notice of cancellation; number and type of aircraft; evidence that the aircraft are vested in the club; and operating rules of the club. In addition, the club shall maintain a set of books showing all club income and expenses. Said books shall be available for inspection by airport management to determining compliance with this provision.
4. A flying club which violates any of the foregoing, or permits one or more members to do so, will be notified in writing of the violation and given 10 days in which to correct said violation. Should such violation not be corrected within 10 days the City may terminate the clubs tenancy on the airport.
SUGAR LAND MUNICIPAL AIRPORT
AVIATION LEASE POLICY
The City of Sugar Land desires to promote the economic growth of the community by developing the Sugar Land Municipal Airport as a full service general aviation/corporate and business commuter airport. Airport revenues are dedicated to the continued operation and development of airport facilities. This policy is adopted to insure that activities permitted by lease of airport property enhance the City's ability to fund airport operation and development programs.
I. GROUND LEASES
A. TERM - CORPORATE DEVELOPMENT AREA
For the Corporate Development Area (which is any Airport real property that connects to Taxiway Hotel or will connect to future Taxiways Golf and India) the maximum lease term is 30 years, with the lessee having the right to extend the lease for two additional five year terms. The lessee must make real property improvements of at least $600,000.
B. TERM - ALL OTHER AREAS
1. For a FBO or commercial operator the minimum lease term is five years and the maximum lease term is twenty-five years, depending on the amount the lessee is willing to spend for permanent improvements to the leased property. A minimum investment of $100,000 in real property improvements is required for a five year lease. Generally, the lessee may be given an additional one year on the term for each $20,000 of construction cost spent for each acre leased, in excess of a required minimum expenditure of $100,000.
2. For a ground lease whose sole purpose is to provide for the storage and maintenance of the lessee’s own aircraft, (i.e., that are not FBO or commercial operators) the minimum lease term is five years and the maximum lease term is thirty years. A minimum expenditure of $75,000 in real property improvements is required for a five year lease. Generally, the lessee will be given an additional one year on the term for each $15,000 of construction cost spent for each acre leased, in excess of a required minimum expenditure of $75,000.
C. IMPROVEMENTS
Improvements used to determine the lease term must be completed within the first two years of the lease term, be permanent to the land, and shall revert to the City upon termination of the Lease.
D. RENT
The value of the Lessee's proposed improvements shall not be included in determining rents until the improvements revert to the city. Rent shall be adjusted every five years during the term of the lease. Monthly rent shall be not less than 1% of the land value (excluding the value of the improvements). An FBO or Commercial Operator shall also pay an additional commercial use fee of 25 % of the monthly rent.
E. OPTIONS
Present or prospective lessees may request an option to lease specified unimproved real property. Options shall be for a maximum of 24 months and a maximum of five acres. The option fee shall be 5% of the land value per year, paid in advance.
II. EXISTING FACILITIES AND IMPROVEMENTS
A. PURPOSE
Improvements owned by the City may be leased for aviation-related purposes only.
B. TERM
The lease term shall not exceed five years.
C. RENT
Monthly rent for City facilities shall be not less than 1% of the total replacement value of the land and improvement. FBO or Commercial Operators shall pay an additional commercial use fee equal to 25 % of the monthly rent.
III. LEASE PROCESSING FEES
Any person requesting a multi-year aviation lease shall pay the following nonrefundable fee in advance:
Lease preparation and review $1,500.00
Lease option $1,000.00
Survey and Legal Description Preparation $750.00
Adopted September 2, 1997 by Resolution 97-34.
Amended June 2, 1998 by Resolution 98-22.
Amended August 17, 1999 by Resolution 99-42.
EXHIBIT C
AIRPORT RULES
SUGAR LAND REGIONAL AIRPORT
Sugar Land, Texas
SECTION 1. DEFINITIONS. The following words have the meaning ascribed to them in this section unless otherwise apparent from the context:
(A) "Airport" means Sugar Land Regional Airport
(B) "Airport Director" means the Director of Aviation for the City of Sugar Land or the duly authorized representative.
(C) "City" means the City of Sugar Land, Texas.
(D) "Person" means any individual, state, political body, or any business, financial, social, recreational or athletic association of any form whatsoever, and includes any member, trustee, agent, employee, officer, receiver, assignee or other representative of any of these.
SECTION 2. APPLICABILITY. These rules apply to each and every person
and to each and every activity or operation of any kind whatsoever on, in or
about the property known as Sugar Land Regional Airport, Sugar Land, Texas.
SECTION 3. GENERAL RULES. The following rules shall be observed in the use, operation and conduct of the airport:
SECTION 3.1. CONDUCT OF BUSINESS. No person shall use the Airport or any part thereof, or any Airport facilities, for revenue producing or commercial activities without first securing an appropriate written lease, sublease or permit from the City or its duly authorized representative and, having obtained such document, without complying fully and completely with all of the terms and conditions thereof including the payment of rates and charges.
SECTION 3.2. NON-ASSUMPTION OF LIABILITY. Persons entering upon Airport grounds do so at their own risk. The City, its agents, officers, and employees, assume no liability or responsibility, and shall not be liable or responsible other than as required by law, for any loss, damage, destruction, injury or death to any person or persons or to any property by reason of any accident, incident, occurrence or mishap of any nature whatsoever or from any cause whatsoever.
SECTION 3.3. RATES AND CHARGES. Aircraft and business operations on the Airport shall be subject to the RATES AND CHARGES and USE CONTROL POLICY as adopted or revised by the City for the Sugar Land Regional Airport.
SECTION 3.4. FEDERAL AIR TRAFFIC REGULATIONS. Regulations of the Federal Aviation Administration for aircraft operated anywhere in the United States, and presently or hereafter effective, are hereby referred to, adopted and made a part hereof as though fully set forth and incorporated herein.
SECTION 3.5. DAMAGE TO AIRPORT. Any person, corporate or individual, and the owner of any aircraft causing damage of any kind to the Airport, whether through violation of any of these rules or through vandalism or any act of negligence, shall be liable therefore in and to the City.
SECTION 3.6. DAMAGE TO FIELD LIGHTS OR FIXTURES. Any person damaging any field light or Airport fixture by operation of an aircraft or otherwise shall immediately report such damage to the Airport Director. Persons causing damage to runway and taxiway lights or Airport fixtures will be liable for replacement cost of the light(s) and/or fixtures.
SECTION 3.7. AUTHORITY TO SUSPEND OPERATIONS. The Airport Director may suspend or restrict any or all operations whenever such action is deemed necessary in the interest of the public health, safety or welfare.
SECTION 3.8. SAFEGUARD OF PERSONS AND PROPERTY. The Airport Director shall at all times have authority to take necessary and legal actions to safeguard any person, aircraft, equipment or property at the Airport.
SECTION 3.9. LIEN FOR CHARGES. To enforce the payment of any charge made for repairs, improvements, storage or care of any personal property, made or furnished by the City or its agents, in connection with the operation of the Airport, the City shall have a lien upon such personal property, which shall be enforceable as provided by law.
SECTION 3.10. VEHICLES FOR HIRE. No person shall operate any vehicle for hire on the Airport unless the provisions of Sec. 3.1 above have been complied with.
SECTION 3.11. COMMERCIAL PHOTOGRAPHY. No person shall take still, motion or sound pictures or photographs for commercial purposes at the Airport without the written permission of the Airport Director and unless the provisions of Sec. 3.1 have been complied with.
SECTION 3.12. ADVERTISEMENTS. No person shall post, distribute, circulate or display any signs, posters, advertisements, circulars, or any other such printed, painted or written materials at the Airport without first obtaining the written permission of the Airport Director.
SECTION 3.13. SOLICITING. No person shall solicit funds, goods, donations or pledges on the Airport without first securing the written permission of the Airport Director.
SECTION 3.14. ANIMALS. No person shall enter the Airport property with a dog or other animal unless such dogs or other animals are restrained by a leash or cage and kept under complete control.
SECTION 3.15. RESTRICTED AREAS. No person shall enter any area on Airport property which is posted with signs reading "restricted", "closed to the public", or the like, except;
(A) Persons assigned to duty in such areas.
(B) Persons authorized by the Airport Director
(C) Passengers, under appropriate supervision, entering such areas for the purpose of embarkation or debarkation.
SECTION 3.16. UNAUTHORIZED SIGNS. No signs may be erected, moved in or installed on Airport property except as may be specifically authorized by the airport director.
SECTION 3.17. SURREPTITIOUS ACTIVITIES. Any person observing suspicious, unauthorized or criminal activities should report such activities immediately to the Airport Director, police, or officers of the Department of Public Safety, or other peace officer.
SECTION 3.18. LICENSED PILOTS. Only properly registered aircraft and persons holding current airman and medical certificates issued by the FAA shall be authorized to operate aircraft upon the Airport. This limitation shall not apply to students in training under licensed instructors nor to public aircraft of the Federal Government or of a state, territory or political subdivision thereof, or to aircraft licensed by a foreign government with which the United States has a reciprocal agreement covering the operation of such licensed aircraft.
SECTION 4. AIRCRAFT OPERATION.
SECTION 4.1 REGISTRATION. Every person owning an aircraft based at the Airport, shall register said aircraft with the City at the office of the Airport Director within 72 hours from the time the aircraft arrives on the Airport. Owners of based aircraft which are permanently removed or flown from the Airport shall notify the office of the Airport Director within 72 hours from the time the aircraft leaves the Airport. For the purpose of this section, the term BASED AIRCRAFT means any aircraft which is parked on the Airport Property for a duration exceeding 21 overnight periods in any year.
SECTION 4.2. WRECKED OR DISABLED AIRCRAFT. The owner, pilot or operator of any aircraft which becomes wrecked or disabled at the Airport shall be responsible for the prompt removal of the wrecked or disabled aircraft, and parts thereof, as directed by the Airport Director. In the event the owner, pilot or operator fails to comply with such directions, the wrecked or disabled aircraft, and parts thereof, may be removed by the Airport Director at the expense of the owner, pilot or operator.
SECTION 4.3. ACCIDENT REPORTS. Persons involved in or witnessing an aircraft accident at the Airport shall report such accident to the Airport Director’s office or to the nearest law enforcement officer as soon as it is reasonably possible to do so. Such persons shall make written reports as requested by the Airport Director.
SECTION 4.4. NOISE ABATEMENT. All persons operating aircraft from the Airport shall comply with all noise abatement procedures, traffic patterns and policies as may be established by the City and acceptable to FAA.
SECTION 4.5. REPAIRS AND MAINTENANCE TO AIRCRAFT. No aircraft shall be repaired on any part of the landing or take‑off area. No aircraft shall be repaired or maintained except in the locations designated by the Airport Director for such purpose.
SECTION 4.6. SUBSTANCE ABUSE. No person shall use or knowingly allow the use of the Airport for the purpose of unlawfully driving a motor vehicle or aircraft under the influence of an alcoholic beverage or any drug or for the purpose of unlawfully selling, serving, using, storing, transporting, keeping, manufacturing or giving away alcoholic beverages or any controlled substance, precursor or analog specified in Texas statutes.
SECTION 4.7. FOREIGN OBJECTS. No foreign objects, including bottles, cans, scrap or any object that may cause damage to an aircraft, shall be left upon the floor of any building or upon any part of the surface area of the Airport.
SECTION 5. GROUND OPERATIONS.
SECTION 5.1. PUBLIC VEHICULAR TRAFFIC. All public vehicular traffic shall be confined to avenues of passage designated and provided for that purpose by the Airport authority, and shall not be operated at a speed in excess of 25 miles per hour.
SECTION 5.2. AIRCRAFT MOVEMENT AREAS. No motorized equipment or vehicles shall be operated on the aircraft ramps, or on the taxiway or runway except by persons duly authorized to be in those areas by the Airport Director.
SECTION 5.3. PARKING. Vehicles shall be parked on Airport property in the manner and at the locations indicated by posted parking signs or painted markings.
SECTION 5.4. FUEL DISPENSING. All fuel dispensing activities, whether commercial or private, must be authorized by the Airport Director and performed in accordance with this section.
(A) No aircraft shall be fueled from any delivery truck, fuel pump or container unless the aircraft is located completely clear of any building or hangar.
(B) Smoking or open flame within fifty (50) feet of any aircraft or fuel truck is prohibited.
(C) In all matters related to aircraft fueling safety the provisions of NFPA Manual 407 "Aircraft Fuel Servicing, 1985" published and available from the National Fire Protection Association, Incorporated, 470 Atlantic Avenue, Boston, Massachusetts 02210, shall prevail.
(D) The pilot and passengers will exit the aircraft and the aircraft will be unoccupied during fueling operations.
(E) Aircraft shall not be fueled while the engine is running or while in a hangar or other enclosed place.
(F) All aircraft will be positively grounded when being serviced with fuel. Aircraft being serviced by a fuel truck will be grounded to the fuel truck and the fuel truck will be positively grounded.
(G) Aviation or auto fuels will not be stored within a hangar.
(H) Persons or aviation businesses wishing to supply and dispense aviation fuel for their private use must first obtain permission from the Airport governing authority.
(I) Dispensing automobile gas for use in aircraft will not be permitted on the Airport without approval of the Airport Director. Aircraft authorized by the FAA to use auto gas may be privately fueled by their owner only after compliance with established rules adopted by the City.
SECTION 5.5. TIE-DOWN AND SECURITY OF AIRCRAFT.
(A) All aircraft not hangared shall be tied down or secured at night and during inclement weather.
(B) All aircraft owners or their agents are responsible for the tie-down and security of their aircraft at all times.
SECTION 5.6. RUNNING AIRCRAFT ENGINES.
(A) On aircraft not equipped with brakes, the engine shall not be started until and unless the wheels have been set with blocks attached to ropes or other suitable means for removing them.
(B) No airplane will be propped, started or left running without qualified personnel in the cockpit at the controls.
(C) No engine shall be started or run inside any building.
(D) No engine shall be started, run or warmed up until and unless the aircraft is in such position that the propeller stream or jet blast will clear all buildings and groups of people within 100 feet.
SECTION 5.7. TAXIING AIRCRAFT.
(A) No person shall taxi an aircraft until he has ascertained there will be no danger of collision with any person or object in the immediate area.
(B) Aircraft will be taxied at a safe and prudent speed, and in such manner as to be at all times under the control of the pilot.
(C) Aircraft not equipped with brakes will not be taxied near buildings or parked aircraft unless an attendant is at a wing of the aircraft to assist the pilot.
(D) Aircraft shall not taxi onto the runway if there is an aircraft approaching to land, or on the ground in take‑off position.
(E) There shall be no taxiing of aircraft by engine power into or out of hangars.
SECTION 5.8. PARKING AIRCRAFT.
(A) Aircraft shall be parked or tied down only within areas so designated by the Airport Director for that purpose.
(B) Aircraft will not be parked within fifty (50) feet of an aircraft fuel pump except for the purpose of receiving fuel.
(C) Aircraft will not be parked in such a manner as to hinder the normal movement of other aircraft and traffic.
(D) It is the responsibility of the pilot when leaving a parked aircraft unattended to see that the plane is properly chocked and/or tied down.
SECTION 5.9. LOADING/UNLOADING AIRCRAFT. Pilots are prohibited from loading or unloading aircraft with the engine running.
SECTION 6. LANDING AND TAKE‑OFF RULES.
SECTION 6.1. ACTIVE RUNWAY. If the winds are calm or at a ninety (90) degree crosswind pilots shall take‑off and land on runway 35.
SECTION 6.2. HAZARDOUS OPERATIONS. No pilot shall operate an aircraft in such manner as to create a hazard to persons and property on the ground, nor land or take off any fixed wing aircraft and commence a turn over any taxiway or ramp or over hangars or other structures, automobile parking areas or groups of spectators at an altitude below 500 feet above ground level (AGL).
SECTION 6.3. USE OF RADIO. All pilots shall communicate on the published Common Traffic Advisory Frequency (CTAF) to determine the active runway and to announce their position and intentions for take‑off and landing.
SECTION 6.4. TAKE‑OFFS ON APRON, RAMPS AND TAXIWAY. No take‑offs or landings shall be made on the apron, parking ramp or taxiway except by special permission of the Airport Director.
SECTION 6.5. TAKE‑OFFS ALLOWED. All pilots shall complete landings to a full stop and taxi clear of the runway. Touch and Go Landings are not permitted without the written approval of the Airport Director. Pilots shall clear themselves from landing and take‑off traffic before taxiing into take‑off position.
SECTION 6.6. TAKE‑OFF CLIMB. On take‑off all aircraft shall climb straight out to an altitude above five hundred (500) feet above ground level (AGL) and clear airport boundary before executing a turn.
SECTION 6.7. TRAFFIC PATTERN ALTITUDE. The traffic pattern altitude is 1000 feet above ground level (AGL) for small aircraft and 1500 feet above ground level (AGL) for jets and large aircraft.
SECTION 6.8. TRAFFIC FLOW. All aircraft landing at the Airport shall fly a left hand traffic pattern.
SECTION 6.9. SPECIAL PROCEDURES. The Airport Director may, in the interest of safety, designate special traffic procedures for certain operations, such as air shows, agricultural operations, lighter than air operations, ultra-lights, etc.
SECTION 7. FIRE SAFETY.
SECTION 7.1. COMPRESSED GAS. Compressed flammable gas shall not be kept or stored upon the Airport, except at such place as may be designated by the Airport Director.
SECTION 7.2. FLAMMABLE SUBSTANCES. No flammable substance shall be used in cleaning motors or other parts of an aircraft inside a hangar or other building. The floors in all buildings shall be kept clean and free from oil. Volatile, flammable substances shall not be used for cleaning the floors.
SECTION 7.3. SMOKING. No one shall smoke, ignite a match or lighter in any aircraft tie-down area, storage or maintenance hangar or in any building posted no smoking.
SECTION 7.4. LITTER. No boxes, crates, cans, bottles, paper, tall grass/weeds or other litter shall be permitted to accumulate in or about a hangar.
SECTION 7.5. FIRE EXTINGUISHERS. At least one portable fire extinguisher will be available within 50 feet of any storage or maintenance hangar.
SECTION 8. KNOWLEDGE OF RULES IMPLIED. By publication of this resolution as required by law, all persons will be deemed to have knowledge of its contents. However, the Airport Director is directed to have copies of the resolution printed and posted where appropriate. Copies will be available at all times in the director's office, and copies will be furnished to owners and operators of aircraft based on the airport.
SECTION 9. CONFLICT IN RULES. If and where there is conflict in these and the Federal Aviation Regulations (FARs) the latter shall prevail.
SECTION 10. PENALTY FOR VIOLATION.
(A) Any person operating or handling an aircraft in violation of any of these rules or refusing to comply with all sections therewith, may, at once, be ejected from the airport, or may for any period of time, not exceeding fifteen (15) days, be denied use of the airport by the airport director, and, upon hearing by the city council, may be deprived of the further use of the airport and its facilities for such period of time as may appear necessary for the protection of life and property.
SECTION 11. SAVING CLAUSE. Should any part of this resolution be held invalid or unconstitutional, no other part shall necessarily be affected thereby.
SECTION 12. EMERGENCY ENACTMENT. The enactment of this resolution being necessary to the immediate preservation of public business, health and property, and to provide for the usual daily operation of a municipal department, it is declared to be an emergency measure, which shall have and take effect following its present reading and adoption.
Adopted September 18, 1991 by Resolution No. 91-43
EXHIBIT D
FEDERAL AVIATION ADMINISTRATION REQUIREMENTS
If there is any conflict between the provision in this Article and the other provisions in this Lease, the provisions in this Article shall take precedence.
A. Lessee for itself, its heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the Leased Premises for a purpose for which a United States Department of Transportation (DOT) program or activity is extended or for another purpose involving the provision of similar services or benefits, Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.
B. Lessee for itself, its personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of Lessee's facilities; (2) that in the construction of any Improvements on, over, or under such Leased Premises and the furnishing of services thereon, no person on the ground of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination; (3) that Lessee shall use the Leased Premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended.
C. That in the event of breach of any of the above nondiscrimination covenants, the City shall have the right to terminate this Lease and to re-enter and repossess said land and the facilities thereon, and hold the same as if said Lease had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21 are followed and completed including expiration of appeal rights.
D. Lessee shall furnish its accommodations and services on a fair, equal and not unjustly discriminatory basis to all users thereof and it shall charge fair, reasonable and not unjustly discriminatory prices for each unit or service; PROVIDED, THAT Lessee may be allowed to make reasonable and nondiscriminatory discounts, rebates or other similar type of price reductions to volume purchasers.
E. Non-compliance with Provision "D" above shall constitute a material breach thereof and in the event of such noncompliance the City shall have the right to terminate this Lease and the estate hereby created without liability therefore or at the election of the City or the United States either or both said Governments shall have the right to judicially enforce said Provisions.
F. Lessee agrees that it shall insert the above five (5) Provisions in any sublease, contract or agreement by which said Lessee grants a right or privilege to any person, firm, or corporation to render accommodations and/or services to the public on the Leased Premises herein leased.
G. Lessee assures that it will undertake an affirmative action program as required by 14 CFR Part 152, Subpart E, to insure that no person shall on the grounds of race, creed, color, national origin, or sex be excluded from participating in any employment activities covered in 14 CFR Part 152, Subpart E. Lessee assures that no person shall be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by this subpart. Lessee assures that it will require that its covered suborganizations provide assurances to Lessee that they similarly will undertake affirmative action programs and that they will require assurances from their suborganizations, as required by 14 CFR Part 152, Subpart E, to the same effect.
H. The City reserves the right to further develop or improve the landing area of the Airport as it sees fit, regardless of the desires or view of Lessee without interference or hindrance.
I. The City reserves the right, but shall not be obligated to Lessee, to maintain and keep in repair the landing area of the Airport and all publicly-owned facilities of the Airport, together with the right to direct and control all activities of Lessee in this regard.
J. This Lease shall subordinate to the provisions and requirements of any existing or future agreements between the City and the United States, relative to the development, operation or maintenance of the Airport.
K. There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Leased Premises herein leased. This public right of flight shall include the Leased Premises herein leased. This public right of flight shall include the right to cause in said airspace any noise inherent in the operation of any aircraft used for navigation or flight through the said airspace or landing at, taking off from or operation on the Airport.
L. Lessee agrees to comply with the notification and review requirements covered in Part 77 of the Federal Aviation Regulations in the event future construction of a building is planned for the Leased Premises, or in the event of any planned modification or alteration of any present or future building or structure situated on the Leased Premises.
M. Lessee, by accepting this, expressly agrees for itself, its successors and assigns that it will not erect nor permit the erection of any structure or object, nor permit the growth of any tree on the land leased hereunder that conflicts with Part 77 of the Federal Aviation Regulations. In the event the aforesaid covenants are breached, the City reserves the right to enter upon the land leased hereunder and to remove the offending structure or object and cut the offending tree, all of which shall be at the expense of Lessee.
N. Lessee, by accepting this Lease, agrees for itself, its successors and assigns that it will not make use of the Leased Premises in any manner which might interfere with the landing and taking off of aircraft from said Airport or otherwise constitute a hazard. In the event the aforesaid covenant is breached, the City reserves the right to enter upon the Leased Premises hereby leased and cause the abatement of such interference at the expense of Lessee.
O. Nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308a of the Federal Aviation Act of 1958 (49 U.S.C. 1349a).
P. This Lease and all the provisions hereof shall be subject to whatever right the United States Government now has or in the future may have or acquire, affecting the control, operation, regulation and taking over of said Airport or the exclusive or non-exclusive use of the Airport by the United States during the time of war or national emergency.
EXHIBIT E
PU-111F-6 Insurance for Airport
Fixed Base Operator
The FBO shall comply with each and every condition contained herein. The FBO shall provide and maintain the minimum insurance coverages set forth below during the term of its agreement with the City.
1. Commercial General Liability insurance at minimum combined single limits of $1,000,000 per-occurrence and $2,000,000 general aggregate for bodily injury and property damage, which coverage shall include products/completed operations ($1,000,000 products/ completed operations aggregate), and XCU (Explosion, Collapse, Underground) hazards. Coverage for products/completed operations must be maintained for at least two (2) years after the FBO agreement expires. Coverage must be written on an occurrence form. Contractual Liability must be maintained covering the FBOs obligations contained in the contract. The general aggregate limit must be at least two (2) times the each-occurrence limit.
2. Workers Compensation insurance at statutory limits, including Employers Liability coverage a minimum limits of $500,000 each-occurrence each accident/$500,000 by disease each-occurrence/$500,000 by disease aggregate.
3. Commercial Automobile Liability insurance at minimum combined single limits of $1,000,000 per-occurrence for bodily injury and property damage, including owned, non-owned, and hired car coverage.
4. Hangarkeepers Legal Liability, at minimum limits of $2,000,000 per-aircraft/$2,000,000 per-occurrence.
5. Umbrella Liability at minimum limits of $5,000,000 each-occurrence/$5,000,000 aggregate with respect to Primary Commercial General Liability, Automobile Liability, and Employers Liability.
Any Subcontractor(s) hired by the FBO shall maintain insurance coverage equal to that required of the FBO. It is the responsibility of the FBO to assure compliance with this provision. The City of Sugar Land accepts no responsibility arising from the conduct, or lack of conduct, of the Subcontractor.
A Comprehensive General Liability insurance form may be used in lieu of a Commercial General Liability insurance form. In this event, coverage must be written on an occurrence basis, at limits of $1,000,000 each-occurrence, combined single limit, and coverage must include a broad form Comprehensive General Liability Endorsement, products/completed operations, XCU hazards, and contractual liability.
With reference to the foregoing insurance requirement, FBO shall specifically endorse applicable insurance policies as follows:
1. The City of Sugar Land shall be named as an additional insured with respect to General Liability and Automobile Liability.
2. All liability policies shall contain no cross liability exclusions or insured versus insured restrictions.
3. A waiver of subrogation in favor of The City of Sugar Land shall be contained in the Workers Compensation and all liability policies.
4. All insurance policies shall be endorsed to require the insurer to immediately notify The City of Sugar Land of any material change in the insurance coverage.
5. All insurance policies shall be endorsed to the effect that The City of Sugar Land will receive at least thirty (30) days' notice prior to cancellation or non-renewal of the insurance.
6. All insurance policies, which name The City of Sugar Land as an additional insured, must be endorsed to read as primary coverage regardless of the application of other insurance.
7. Required limits may be satisfied by any combination of primary and umbrella liability insurances.
8. FBO may maintain reasonable and customary deductibles, subject to approval by The City of Sugar Land.
9. Insurance must be purchased from insurers having a minimum AmBest rating of A 7.
All insurance must be written on forms filed with and approved by the Texas Department of Insurance. Certificates of Insurance shall be prepared and executed by the insurance company or its authorized agent and shall contain provisions representing and warranting the following:
1. Sets forth all endorsements and insurance coverages according to requirements and instructions contained herein.
2. Shall specifically set forth the notice-of-cancellation or termination provisions to The City of Sugar Land.
Upon request, FBO shall furnish The City of Sugar Land with certified copies of all insurance policies.
A valid certificate of insurance verifying each of the coverages required above shall be issued directly to the City of Sugar Land within ten (10) business days after contract award by the successful contractor’s insurance agent of record or insurance company. The certificate of insurance shall be sent to:
City of Sugar Land
Finance / Purchasing
10405 Corporate Dr.
Sugar Land, TX 77478
Reduction or Waiver of Insurance Requirements
The City may at any time reduce or waive all or part of the insurance requirements established by this document for any contractor that has entered into an agreement with the City to provide the services for which this insurance applies, if the City determines that the reduction or waiver will not unreasonably expose the City to a risk of liability or loss. An authorized City representative must authorize any reduction or waiver of these insurance requirements in writing before the reduction or waiver is effective.
Signed by the insurance company, insurance agent, or
insurance broker only. This section must contain Additional Insured and Waiver
of Subrogation endorsement as shown Insurance Broker Hangarkeepers Liability coverage at the Limits shown
must be provided. Name of
Insured must match the Contractor name in the contract General
Liability - Claims
made or Modified Occurrence is not acceptable Minimum acceptable AmBest rating for
Insurers is A 7 A minimum of 30 days written notice of
cancellation or non-renewal must be provided. The AL Combined Single Limit must
total $1,000,000 minimum Current dates are required The totals in each box must be at least as shown and
the WC Statutory Limits box must be checked Certificate Holder must be City of Sugar Land with
proper address The GL Each Occurrence and General Aggregate Limits must
be at least as shown at left
SAMPLE
CERTIFICATE