CITY OF DEL RIO, TEXAS REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS - CITY HALL 109 WEST BROADWAY TUESDAY, MAY 24, :30 P.M.

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1 CITY OF DEL RIO, TEXAS REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS - CITY HALL 109 WEST BROADWAY TUESDAY, MAY 24, :30 P.M. AGENDA ITEM NO. DESCRIPTION 1. CALL TO ORDER 2. ROLL CALL 3. INVOCATION- Pastor Martin Seca, Living Stone Worship Center 4. PLEDGE OF ALLEGIANCE 5. Administer the Oath - Susan Corp, City Secretary 6. CITIZEN COMMENTS (NO ACTION WILL BE TAKEN) This is the opportunity for visitors and guests to address the City Council on any issue. City Council may not discuss any presented issue, nor take any action on any issue. A sign-up sheet is available for citizens who wish to address the Council. Please limit remarks to three minutes. Topics of operational concerns shall be directed to the City Manager. Comments should not personally attack other speakers, Council or staff. 7. MAYOR'S COMMENTS 8. PUBLIC HEARING a. Conduct a Public Hearing for Plat Abner Martinez, P.E., Representing Carlos Enriquez Valdez is requesting a Replat Establishing Lot 13-A, Block NFG-1, Cienegas Terrace and being the middle 50' of Lot 13, Block NFG-1 Cienegas Terrace. (155 Fir Street) b. Conduct a Public Hearing and Consider a Request for a Plat Abner Martinez, P.E., Representing Benjamin & Elsa Contreras is requesting a Replat Establishing Lots A & B, Block 58, 1st Railroad Addition. (201 West 7th Street and 902 Avenue B) O: An Ordinance Approving a Certain Replat Establishing Lot A and Lot B, out of Lot 5 and a Portion of Lot 4, Block 58 of the 1st Railroad Addition in the Val Verde County Map Records, Del Rio, Texas. - Janice Pokrant, City Planner 9. INFORMATION ITEMS 1

2 b. Update on the San Felipe Springs Golf Course - Jose Elias Castañeda, Golf Course Superintendent 10. CONSENT AGENDA (ACTION MAY BE TAKEN ON THESE MATTERS) This is a procedure to help facilitate the meeting with a CONSENT AGENDA. One motion will approve all action items, noted as consent. These are routine matters which are repeated on the agenda. Approval means they will be implemented as recommended by the administration. Prior to acting on the consent agenda, any Councilmember may have a consent item withdrawn from this portion of the agenda so that it may be discussed prior to action. a. Quarterly Investment Report Ending September 30, Gilbert E. Sanchez, Interim Finance Director b. Unaudited Financial Statements for October 31, Gilbert E. Sanchez, Interim Finance Director 11. ORDINANCES (ACTION MAY BE TAKEN ON THESE MATTERS) a. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-4, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager b. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute An Addendum To The Lease Agreement For Hangar C-5 - Juan C. Onofre, Airport Manager c. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-6, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager d. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-7, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager e. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-8, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager f. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-10, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager g. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-11, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager h. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-13, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager 2

3 i. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-14, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager j. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-15, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager k. O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar E-1, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager l. O: An ordinance by the City Council of the Del Rio Texas authorizing and directing City Manager Henry Arredondo to appropriate necessary funds to facilitate the settlement of the agreement with Pat Ellis and the associated expert witness services. Matthew A. Rector, Assistant City Engineer. m. O: Ordinance of the City of Del Rio Authorizing and Directing City Manager to execute a lease agreement with Aguila Express to rent a portion of the City of Del Rio Transportation Center. Aguila Express provides shuttle services to San Antonio, Texas - Elsa Reyes, Transportation Director n. O: An Ordinance in Accordance with State and Local Laws Providing for the Approval of a Certain Plat Designated as Buena Vista Hills Unit 10 Del Rio, Texas. - Janice Pokrant, City Planner 12. RESOLUTIONS (ACTION MAY BE TAKEN ON THESE MATTERS) a. R: A Resolution in Accordance with State Law and the Del Rio Code of Ordinances Providing for the Appointment of the Following Positions for the Policy Committee for the City of Del Rio s Subdivision and Land Development Ordinances Revisions - Janice Pokrant, City Planner 13. OTHER BUSINESS (ACTION MAY BE TAKEN ON THESE MATTERS) a. Update on the City of Del Rio's 4th of July Celebration - Eva Escobar, Civic Center Director b. Update on Boys and Girls Club - Esmeralda Meza, Community Services Director c. Discuss Continued Approval of Engagement of Denton, Navarro, Rocha, Bernal, Hyde & Zech Law Firm for Limited Special Counsel for City Attorney Services - Suzanne West, City Attorney c. Presentation and discussion of the formal process of establishing a Type A Economic Development Corporation (EDC). d. Personnel Matters Relating to the Performance Evaluation of Henry Arredondo, City Manager, Including Review of Salary Information, and Salary Increase as Appropriate - Mary Canales, Human Resources Director 3

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5 City Council Regular 5. Meeting Date: 05/24/2016 Submitted By: Amelia Moreno, Executive Secretary Subject Administer the Oath - Susan Corp, City Secretary Information No file(s) attached. Attachments 5

6 City Council Regular 8. a. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Janice Pokrant, City Planner, Engineering Department Information Conduct a Public Hearing for Plat Abner Martinez, P.E., Representing Carlos Enriquez Valdez is requesting a Replat Establishing Lot 13-A, Block NFG-1, Cienegas Terrace and being the middle 50' of Lot 13, Block NFG-1 Cienegas Terrace. (155 Fir Street) SUMMARY: Only a public hearing will be conducted for this plat at this time as this property is located outside of the City limits, but within the extraterritorial jurisdiction (ETJ) and as such the Val Verde Commissioners Court will need to vote on this item prior to the City Council's consideration. BACKGROUND: Not applicable, this item is for a public hearing only. DISCUSSION: Not applicable, this item is for a public hearing only. PROS: Not applicable, this item is for a public hearing only. CONS: Not applicable, this item is for a public hearing only. RECOMMENDATION: Not applicable, this item is for a public hearing only. FISCAL IMPACT: Not applicable, this item is for a public hearing only. Fiscal Impact Plat Attachments 6

7 FINAL PLAT FEBRUARY 1, 2016.dgn 3/21/2016 2:15:39 PM 7

8 City Council Regular 8. b. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Janice Pokrant, City Planner, Engineering Department Information Conduct a Public Hearing and Consider a Request for a Plat Abner Martinez, P.E., Representing Benjamin & Elsa Contreras is requesting a Replat Establishing Lots A & B, Block 58, 1st Railroad Addition. (201 West 7th Street and 902 Avenue B) O: An Ordinance Approving a Certain Replat Establishing Lot A and Lot B, out of Lot 5 and a Portion of Lot 4, Block 58 of the 1st Railroad Addition in the Val Verde County Map Records, Del Rio, Texas. - Janice Pokrant, City Planner SUMMARY: Mr. and Mrs Contreras are requesting a replat of the property as they have already illegally sold a portion of the property without platting it first. BACKGROUND: Mr. & Mrs. Contreras is the original property owner of all of lot 5 and the east half of Lot 4. Within the last year they sold the half of this property without legally replatting the property. All of the dwellings on the lot are connected to the same water and sewer meter. The new property owners requested a separate meter which the city can't do unless the property is legally replatted. Planning and Zoning Commission recommended (pending recommendation at the 4/20/2016 meeting) DISCUSSION: The proposed lots A & B will comply with the minimum lot size requirements within the City of Del Rio Code of Ordinances. However, this proposed plat will leave a substandard portion of land being 30 feet wide on the west side of Lot 4 facing 7th Street. PROS: Approving this plat will allow the owner of the proposed lots to have a legally platted lot and will allow them to get their owner water and sewer meters. CONS: Approving this plat will allow for a substandard lot to be created having a 30' wide frontage. RECOMMENDATION: Staff recommends denial of the requested replat until such time as the remaining 30 of Lot 4 can be platted accordingly. FISCAL IMPACT: Fiscal Impact There is no fiscal impact associated with this agenda item. Attachments 8

9 O st Railroad Addition 7th st. and Avenue B Replat 9

10 ORDINANCE NO. O: AN ORDINANCE APPROVING A CERTAIN REPLAT ESTABLISHING LOT A AND LOT B, OUT OF LOT 5 AND A PORTION OF LOT 4, BLOCK 58 OF THE 1 ST RAILROAD ADDITION IN THE VAL VERDE COUNTY MAP RECORDS, DEL RIO, TEXAS. WHEREAS, this replat is located within the City of Del Rio and as such requires the final approval of the Del Rio City Council WHEREAS, Chapter 212 of the Local Government Code requires that the Del Rio City Council grant its approval of a plat that has fully complied with all applicable state and local regulations governing that platting and subdividing of real property; and WHEREAS, this replat is located within the City of Del Rio s city limits and as such requires the final approval of the Del Rio City Council; and WHEREAS, establishing Lot A and Lot B out of Lot 5 and a portion of Lot 4, Block 58 of the 1 st Railroad Addition in the Val Verde County Map Records and, Del Rio Texas; and WHEREAS, Planning and Zoning Commission have heretofore recommended approval of that certain replat amending Lot 5 and a portion of Lot 4 previously recorded in Volume 1, Page 49 in the Val Verde County Map Records, establishing Lots A and B, Block 58 of the 1 st Railroad Addition in Del Rio, Texas; and WHEREAS, the Del Rio City Council has found and determined that the aforesaid replat fully complies with all applicable regulations of the City of Del Rio, Texas. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS, THAT: Section 1. Approval A certain replat amending Lot 5 and a portion of Lot 4, Block 58, of the 1 st Railroad Addition previously recorded in Volume 1, Page 49, in the Val Verde County Map Records, establishing Lots A and B, Block 58 of the 1 st Railroad Addition in Del Rio, Texas Section 2. Certification and Endorsement Mayor, Robert Garza, is hereby authorized and directed to endorse the approval of the Del Rio City Council on the foresaid plat by the execution of an appropriate certification duly attested by the City Secretary. 10

11 PASSED AND APPROVED on this 24 th day of May ROBERT GARZA Mayor ATTEST: SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO City Manager SUZANNE WEST City Attorney 11

12 REPLAT ESTABLISHING LOTS A & B, BLOCK 58, 1ST RAILROAD ADDITION OUT OF LOT 5, BLOCK 58, 1ST RAILROAD ADDITION, DEL RIO, TEXAS. REPLAT ESTABLISHING LOTS A & B, BLOCK 58, 1ST RAILROAD ADDITION, OUT OF LOT 5 AND THE EAST HALF OF LOT 4, BLOCK 58, 1ST RAILROAD ADDITION, DEL RIO, TEXAS. P:\STORAGE\Surveys by Subdivision ACS\1ST RAILROAD\902 Ave B Replat Lots A and B Blk 58 1st RR\autocad \201 W. 7th Street Apr 14, 2014.dwg, 4/8/2016 3:33:42 PM, WS-2 12

13 City Council Regular 9. b. Meeting Date: 05/24/2016 Information Subject Update on the San Felipe Springs Golf Course - Jose Elias Castañeda, Golf Course Superintendent No file(s) attached. Attachments 13

14 City Council Regular 10. a. Meeting Date: 05/24/2016 Submitted By: Gilbert Sanchez, Finance Information Subject Quarterly Investment Report Ending September 30, Gilbert E. Sanchez, Interim Finance Director September 2015 Quarterly Investment Attachments 14

15 15

16 Summary Quarter End Results by Investment Category: September 30, 2015 June 30, 2015 Asset Type Ave. Yield Book Value Market Value Book Value Market Value Pool/MMMF 0.09% $ 23,539,852 $ 23,539,852 $ 27,617,846 $ 27,617,846 Bank CDs/Securities 0.35% 2,438,638 2,438,638 2,438,638 2,438,638 Totals $ 25,978,490 $ 25,978,490 $ 30,056,484 $ 30,056,484 Average Yield (1) Fiscal Year-to-Date Average Yield (2) Total Portfolio 0.11% Total Portfolio 0.11% Rolling Three Mo. Treas. Yield 0.04% Rolling Three Mo. Treas. Yield 0.03% Rolling Six Mo. Treas. Yield 0.13% Rolling Six Mo. Treas. Yield 0.09% Quarterly TexPool Yield 0.06% (1) Average Yield calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees. (2) Fiscal Year-to-Date Average Yields calculated using quarter end report yields and adjusted book values and does not reflect a total return analysis or account for advisory fees. Valley View Consulting, L.L.C. Page 1 16

17 Economic Overview 9/30/2015 The Federal Open Market Committee (FOMC) maintained the Fed Funds target range between % and 0.25% (actual Fed Funds traded +/-10 bps). The FOMC met 9/16 & 17 and chose to delay "lift-off" citing global economic concerns for the first time. The September new payroll numbers were a disappointing +142k and included downward Aug and July revisions. The overall unemployment rate remained 5.1%. US stock markets experienced volatility, but did stem the decline and advanced slightly. Chinese stock market and economic concerns continue. Continuing to ladder provides strategic advantage. Municipal bonds and financial institution deposits generally provide the best interest earnings opportunity, if available. Short to medium term US Government security yields fell on the non-fomc action and, then again, on the September payroll weakness Treasury Yield Curves US Treasury Historical Yields September 30, 2014 June 30, 2015 September 30, 2015 Six Month T-Bill Two Year T-Note Ten Year T-Note US Treasury Historical Yields 2,250 2,000 1,750 1,500 1,250 1, S&P 500 Six Month T-Bill Two Year T-Note Ten Year T-Note Valley View Consulting, L.L.C. Page 2 17

18 Detail of Investment Holdings September 30, 2015 Security Coupon/ Maturity Settlement Book Market Market Life Description Ratings Discount Date Date Par Value Value Price Value (Days) Yield TexPool AAAm 0.09% 10/01/15 09/30/15 $ 21,214,890 $ 21,214, $ 21,214, % TexasDaily AAAm 0.13% 10/01/15 09/30/15 2,324,962 2,324, ,324, % Texas Community CD 0.35% 12/17/15 12/17/14 2,438,638 2,438, ,438, % $ 25,978,490 $ 25,978,490 $25,978, % (1) (2) (1) Weighted average life - For purposes of calculating weighted average maturity bank, pool, and money market balances are assumed to have a one day maturity. (2) Weighted average yield to maturity - The weighted average yield to maturity is based on adjusted book value, realized and unrealized gains/losses and investment advisory fees are not considered. The yield for the reporting month is used for bank, pool, and money market balances. Valley View Consulting, L.L.C. Page 3 18

19 Portfolio Composition CDs/Securities 9% Pools/MMMF 91% $60 Total Portfolio (Millions) $50 $40 $30 $20 $10 $0 Quarter End Book Value Valley View Consulting, L.L.C. Page 4 19

20 Book Value Comparison June 30, 2015 September 30, 2015 Coupon/ Maturity Original Face\ Purchases/ Sales/ Original Face\ Description Discount Date Par Value Book Value Accretion Maturities Par Value Book Value TexPool 0.09% 10/01/15 $ 25,293,546 $ 25,293,546 $ $ (4,078,656) $ 21,214,890 $ 21,214,890 TexasDaily 0.13% 10/01/15 2,324,300 2,324, ,324,962 2,324,962 Texas Community CD 0.35% 12/17/15 2,438,638 2,438,638 2,438,638 2,438,638 TOTAL $ 30,056,484 $ 30,056,484 $ 663 $ (4,078,656) $ 25,978,490 $ 25,978,490 Market Value Comparison June 30, 2015 September 30, 2015 Coupon/ Original Face\ Market Qtr-to-Qtr Original Face\ Market Description Discount Par Value Price Market Value Change Par Value Price Market Value TexPool 0.09% $ 25,293, $ 25,293,546 $ (4,078,656) $ 21,214, $ 21,214,890 TexasDaily 0.13% 2,324, ,324, ,324, ,324,962 Texas Community CD 0.35% 2,438, ,438,638 2,438, ,438,638 TOTAL $ 30,056,484 $ 30,056,484 $ (4,077,994) $ 25,978,490 $ 25,978,490 Valley View Consulting. L.L.C. Page 5 20

21 Fund Allocation September 30, 2015 Book & Market Investment Total General Fund TexPool $ 21,214,890 12,192,834 Special Revenue Debt Service $ 2,228,989 Capital Projects Gas Operating $ 147,946 $ $ 1,510,754 $ 6,802,980 4,205,539 TexasDaily 2,324,962 1,529,580 Bank CDs 12/17/15-Texas Community Bank 2,438,638 2,438,638 Water Operating Bridge Operating Airport $ $ (3,482,406) $ (119,696) Totals $ 25,978,490 $ 12,192,834 $ 147,946 $ 2,228,989 $ 1,510,754 $ 6,802,980 $ 8,173,757 $ (3,482,406) $ (119,696) Valley View Consulting. L.L.C. Page 6 21

22 Fund Allocation September 30, 2015 Book & Market TexPool TexasDaily Bank CDs 12/17/15-Texas Community Bank (continued) Refuse Municipal Facilities Wastewater Computer Service Health Claims Fund $ 658,347 $ 53,858 $ (3,031,094) $ 37,475 $ 9, , ,832 Totals $ 841,897 $ 53,858 $ (2,419,261) $ 37,475 $ 9,364 Valley View Consulting. L.L.C. Page 7 22

23 Fund Allocation June 30, 2015 Book & Market Investment Total General Fund TexPool $ 25,293,546 11,257,732 Special Revenue Debt Service $ 2,250,949 Capital Projects Gas Operating Water Operating Bridge Operating Airport $ $ (119,721) $ 147,928 $ $ 1,510,475 $ 6,802,017 $ 8,208,824 (2,492,319) TexasDaily 2,324,300 1,529,145 Bank CDs 12/17/15-Texas Community Bank 2,438,638 2,438,638 Totals $ 30,056,484 $ 11,257,732 $ 147,928 $ 2,250,949 $ 1,510,475 $ 6,802,017 $ 12,176,606 $ (2,492,319) $ (119,721) Valley View Consulting, L.L.C. Page 8 23

24 Fund Allocation June 30, 2015 (continued) Book & Market TexPool TexasDaily Refuse Municipal Facilities Wastewater Computer Service Health Claims Fund $ 658,243 $ 53,845 $ (3,031,262) $ 37,471 $ 9, , ,658 Bank CDs 12/17/15-Texas Community Bank Totals $ 841,740 $ 53,845 $ (2,419,604) $ 37,471 $ 9,362 Valley View Consulting, L.L.C. Page 9 24

25 Quarterly Year-to-Date Earnings and Returns 7/1/15-9/30/15 Quarterly Totals General Special Debt Capital Enterprise Internal Total Cumulative Earnings Fund Revenue Service Projects Funds Service All Funds TexPool $ 1,526 $ 17 $ 372 $ 278 $ 2,351 $ 6 $ 4,551 TexasDaily BBVA Compass CD's TX Community Bank CD's Wells Fargo Bank CD's Frost National Bank $ 1,526 $ 17 $ 372 $ 278 $ 3,014 $ 6 $ 5,214 Yearly Totals General Special Debt Capital Enterprise Internal Total Cumulative Earnings Fund Revenue Service Projects Funds Service All Funds TexPool $ 3,321 $ 36 $ 1,138 $ 781 $ 4,844 $ 13 $ 10,134 TexasDaily 1,989 1,989 BBVA Compass CD's TX Community Bank CD's 8,505 8,505 Wells Fargo Bank CD's Frost National Bank $ 3,321 $ 36 $ 1,138 $ 781 $ 15,338 $ 13 $ 20,628 Valley View Consulting, L.L.C. Page 10 25

26 City Council Regular 10. b. Meeting Date: 05/24/2016 Submitted By: Gilbert Sanchez, Finance Information Subject Unaudited Financial Statements for October 31, Gilbert E. Sanchez, Interim Finance Director Financials October 2015 Attachments 26

27 Unaudited Financial Reports For City of Del Rio For Month Ending October 31,

28 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 GENERAL FUND ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Advances Due From Other Funds Inventory TOTAL ASSETS LIABILITIES & FUND EQUITY LIABILITIES Accounts Payable Other Liabilities Accrued Liabilities Due To Other Funds Due To Other Governments Cable Franchise Deposit Deferred Revenues Cash Bonds Held TOTAL LIABILITIES 8,084, ,991, ,255, , , , ,122, , , , , , , ,885, , ,485, FUND EQUITY Reserved Fund Balance 1,212, Unreserved, Designated Fund Balance 2,875, Unreserved, Undesignated Fund Balance 9,548, TOTAL FUND EQUITY 13,637, TOTAL LIABILITY & FUND EQUITY 21,122, REVENUES AMENDED YTD PRIOR YR YTD BUDGET PERCENT % BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE REALIZED Taxes 12,895, , ,122, % Fines & Forfeitures 858,060 71, , % Charges for Services 419,570 20, , % Licenses & Permits 411,900 34, , % Intergovernmental 17,500 23, (5,830) % Miscellaneous 47,980 36, , % TOTAL REVENUES 14,650, , ,691, % EXPENDITURES Personal Services 16,105,159 1,186, ,918, % Supplies 744,275 50,798 9,806 18, , % Contractual & Other Costs 3,273, ,233 12,543 92,168 2,861, % Debt Service % Capital Outlay 300, ,576 41, , , % Reserves 50, ,000 % Intergovernmental 49,750 10, , % TOTAL EXPENDITURES 20,522,558 1,696,680 63, ,194 18,664, % Excess (Deficiency) of Revenue over Expenditures (5,872,032) (737,350) (63,419) (225,194) (4,972,906) OTHER FINANCING SOURCES (USES) Proceeds-Sale General Fix Assets/Fire Arms 7, ,500 % Proceeds-Insurance % Proceeds-Bonds Issued % Proceeds-Refunded Bonds % Operating Transfers In 8,498, , ,844, % Operating Transfers Out (2,542,705) (84,563) 0 0 (2,458,142) 3.33% Refunded Bond Issuance Costs % TOTAL OTHER FINANCING SOURCES (USES 5,963, , ,394, % Excess (Deficiency) of Revenue & Other Sources over Expenditures & Other Uses 91,193 (168,421) (63,419) (225,194) 421,390 28

29 ENTERPRISE FUNDS 29

30 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Inventory Other Current Assets Restricted Assets Property, Plant, & Equipment Non Current Assets TOTAL ASSETS GAS FUND 3,560, , , , , ,793, ,421, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities 823, Other Liabilities 264, Long-Term Liabilities 427, TOTAL LIABILITIES 1,515, FUND EQUITY Reserved Retained Earnings 1,783, Retained Earnings 3,122, TOTAL FUND EQUITY 4,906, TOTAL LIABILITY & FUND EQUITY 6,421, AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED REVENUES Sales % Service Charges 4,275, , ,055, % Intergovernmental % Interest Revenues 2, , % Other Revenues 10, , % Merchandise Sales % TOTAL REVENUES 4,288, , ,067, % EXPENDITURES Personal Services 842,866 62, , % Supplies 137,400 5, , , % Contractual & Other Costs 323,640 49,113 1,190 2, , % Purchase for Resale 1,304, , ,203, % Debt Service 114,641 2, , % Capital Outlay 100,000 2, , % Reserves & Other Expend % TOTAL EXPENDITURES 2,822, ,274 1,374 4,158 2,596, % Excess (Deficiency) of Rev. over Exp. 1,465,752 (2,053) (1,374) (4,158) 1,470,588 OTHER FIN SRCS (USES) Gain on Sale of Fixed Assets % Operating Transfers Out (1,357,069) (113,089) 0 0 (1,243,980) 8.33% Revenue Bond Proceeds % TOTAL OTHER FINANCING SOURCES (USES) (1,357,069) (113,089) 0 0 (1,243,980) 8.33% Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 108,683 (115,142) (1,374) (4,158) 226,608 30

31 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 WATER FUND ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Inventory Other Current Assets Restricted Assets Property, Plant, & Equipment Non Current Assets TOTAL ASSETS (4,872,364.28) 1,399, , , ,161, ,175, ,241, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 795, ,931, ,398, ,125, FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings TOTAL FUND EQUITY 52,087, (3,971,313.68) 48,116, TOTAL LIABILITY & FUND EQUITY 74,241, AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED REVENUES Sales % Service Charges 8,766, , ,919, % Intergovernmental % Interest Revenues 5, , % Other Revenues 15,000 1, , % Merchandise Sales % TOTAL REVENUES 8,786, , ,937, % EXPENDITURES Personal Services 2,036, , ,896, % Supplies 563,900 40,520 3,427 94, , % Contractual & Other Costs 1,624, ,210 13,814 72,278 1,341, % Debt Service 4,419,437 79, ,339, % Capital Outlay 0 175, ,000 (196,311) % Reserves & Other Expend % TOTAL EXPENDITURES 8,644, ,756 17, ,581 7,814, % Excess (Deficiency) of Rev. over Exp. 141, ,808 (17,240) (187,581) 122,970 OTHER FIN SRCS (USES) Proceeds from Long Term Debt % Settlement Proceeds % Gain on Sale of Fixed Assets % Transfers Out (758,510) (63,209) 0 0 (695,301) 8.33% TOTAL OTHER FINANCING SOURCES (USES) (758,510) (63,209) 0 0 (695,301) 8.33% Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (617,072) 125,599 (17,240) (187,581) (572,331) 31

32 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 BRIDGE FUND ASSETS Current Assets Cash & Cash Equivalents 2,533, Receivables 2,002, Due From Other Funds 46, Due From Other Governments 1, Restricted Assets 2,539, Property, Plant, & Equipment 3,270, Non Current Assets TOTAL ASSETS 10,393, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities 1,352, Other Liabilities 2, Long-Term Liabilities 60, TOTAL LIABILITIES 1,415, FUND EQUITY Reserved Retained Earnings 3,399, Unreserved, Designated Retained Earnings 1,076, Unreserved Retained Earnings 4,502, TOTAL FUND EQUITY 8,978, TOTAL LIABILITY & FUND EQUITY 10,393, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUBRANCES BALANCE EXPENDED Charges for Services 6,605, , ,023, % Intergovernmental % Interest Revenues 2, , % Facilities Rental % Other Revenues 10, , % TOTAL REVENUES 6,617, , ,035, % EXPENDITURES Personnel Services 464,262 34, , % Supplies 8, , % Contractual & Other Costs 145,951 10, , , % Debt Service 230, ,875 % Capital Outlay 0 9, (9,912) % Reserves 330, ,271 % TOTAL EXPENDITURES 1,180,281 54, ,485 1,110, % Excess (Deficiency) of Rev. over Exp. 5,437, ,730 (348) (15,485) 4,925,054 OTHER FIN (SRCS) USES Proceeds from Sale of Real Estate % Other Revenue % Proceeds of Long Term Debt % Operating Transfers In % Operating Transfers Out (5,438,430) (398,493) 0 0 (5,039,937) 7.33% TOTAL OTHER FINANCING (SOURCES) USES (5,438,430) (398,493) 0 0 (5,039,937) 7.33% Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (782) 129,238 (348) (15,485) (114,883) 32

33 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 AIRPORT FUND ASSETS Current Assets Cash & Cash Equivalents 193, Investments Receivables 13, Due From Other Funds 58, Due From Other Governments 7, Other Current Assets Restricted Assets 147, Property, Plant, & Equipment 19,381, Non Current Assets TOTAL ASSETS 19,802, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 45, ,00 7, , FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings TOTAL FUND EQUITY 20,290, (543,783.66) 19,747, TOTAL LIABILITY & FUND EQUITY 19,802, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services 48,000 3, , % Intergovernmental 1,096, ,096,200 % Interest Revenues % Facilities Rental 138,000 11, , % Other Revenues % TOTAL REVENUES 1,282,350 15, ,266, % EXPENDITURES Personal Services 219,637 14, , % Supplies 26,415 3,016 2,333 7,753 17, % Contractual & Other Costs 112,194 43,585 12, , % Debt Service % Capital Outlay 1,218,000 76,581 13, ,155, % Reserves % TOTAL EXPENDITURES 1,576, ,683 28,439 8,270 1,458, % Excess (Deficiency) of Rev. over Exp. (293,896) (122,077) (28,439) (8,270) (191,988) OTHER FIN SRCS (USES) Bond Proceeds % Operating Transfers In 294,724 31, , % Operating Transfers Out (1,759) (147) 0 0 (1,612) 8.33% TOTAL OTHER FINANCING SOURCES (USES) 292,965 31, , % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (931) (90,852) (28,439) (8,270) 69,753 33

34 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 REFUSE FUND ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Agencies Restricted Assets Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 554, , ,242, ,392, ,868, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 1,147, , ,310, ,679, FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings TOTAL FUND EQUITY 2,008, (819,287.98) 1,189, TOTAL LIABILITY & FUND EQUITY 4,868, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services 4,995, , ,572, % Intergovernmental Revenues % Interest Revenues % Facilities Rental % Other Revenues 28,700 2, , % TOTAL REVENUES 5,024, , ,598, % EXPENDITURES Personal Services 561,597 39, , % Supplies 49,121 2, , % Contract/Other Services 3,677, , ,305 3,348, % Purchase for Resale % Debt Service 192,457 2, , % Capital Outlay 0 463, ,725 0 (4,795) % Contingencies % TOTAL EXPENDITURES 4,480, , ,168 13,305 4,102, % Excess (Deficiency) of Rev. over Exp. 544,270 (397,159) (459,168) (13,305) 495,566 OTHER FIN SRCS (USES) Reserves (150,000) (150,000) % Proceed Sale of Fixed Assets/Bonds % Intergovernmental % Insurance Proceeds % Operating Transfers Out (510,000) (42,500) 0 0 (467,500) 8.33% TOTAL OTHER FINANCING SOURCES (USES) (660,000) (42,500) 0 0 (617,500) 6.44% Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (115,730) (439,659) (459,168) (13,305) (121,934) 34

35 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 ASSETS Current Assets Cash & Cash Equivalents 451, Investments Receivables 1, Due From Other Funds Due From Other Governments Prepayments Restricted Assets (16,198.92) Property, Plant, & Equipment 948, Non Current Assets TOTAL ASSETS FACILITIES FUND 1,385, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 40, , , , FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings TOTLA FUND EQUITY 1,018, , ,122, TOTAL LIABILITY & FUND EQUITY 1,385, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Intergovernmental % Interest Revenues % Facilities Rental 281,868 22, , % Other Revenues 25,000 1, , % TOTAL REVENUES 306,968 23, , % EXPENDITURES Personal Services 318,491 26, , % Supplies 28,507 9,063 7, , % Contractual & Other Costs 353,501 38, , , % Purchase for Resale % Debt Service 11,521 1, , % Capital Outlay 0 7, (7,849) % Contingencies % TOTAL EXPENDITURES 712,020 83,434 7,628 3, , % Excess (Deficiency) of Rev. over Exp. (405,052) (59,902) (7,628) (3,799) (345,150) OTHER FIN SRCS (USES) Operating Transfers In 431,337 34, , % Operating Transfers Out % Revenue Bond Proceeds % Insurance Proceeds % TOTAL OTHER FINANCING SOURCES (USES) 431,337 34, , % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 26,285 (25,530) (7,628) (3,799) 47,986 35

36 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 WASTEWATER FUND ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Governments Restricted Assets Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 930, , , ,916, ,705, , ,330, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 702, ,923, ,420, ,045, FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings TOTAL FUND EQUITY 15,850, ,434, ,284, TOTAL LIABILITY & FUND EQUITY 33,330, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Sales 3,939, , ,539, % Service Charges % Interest Revenues 2, , % Other Revenues 10, , % TOTAL REVENUES 3,952, , ,551, % EXPENDITURES Personal Services 885,706 70, , % Supplies 178,274 19,854 7,526 32, , % Contractual & Other Costs 828, ,482 1,275 7, , % Purchase for Resale % Debt Service 1,448,514 41, ,407, % Capital Outlay 0 51,345 5,074 5,674 (51,945) % Reserves & Other Expend % TOTAL EXPENDITURES 3,340, ,310 13,875 45,731 2,992, % Excess (Deficiency) of Rev. over Exp. 611,825 84,848 (13,875) (45,731) 558,834 OTHER FIN SRCS (USES) Bond Proceeds % Operating Transfers In % Operating Transfers Out (610,775) (50,380) 0 0 (560,395) 8.25% TOTAL OTHER FINANCING SOURCES (USES) (610,775) (50,380) 0 0 (560,395) 8.25% Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 1,050 34,468 (13,875) (45,731) (1,561) 36

37 SPECIAL REVENUE FUNDS 37

38 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 TRANSPORTATION ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS (445,480.87) 211,09 (234,390.87) LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities 353, Advances from Other Funds 648, Other Liabilities 50 Long-Term Liabilities TOTAL LIABILITIES 1,002, FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 1, (1,238,267.59) (1,236,544.15) TOTAL LIABILITY & FUND EQUITY (234,390.87) - REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services 364,872 8, , % Intergovernmental 698,951 57, , % Miscellaneous 12,000 1, , % TOTAL REVENUES 1,075,823 66, ,009, % EXPENDITURES Personal Services 830,041 57, , % Supplies 154,050 4, , % Contractual & Other Costs 155,372 18, , % Debt Service % Capital Outlay % Reserves % TOTAL EXPENDITURES 1,139,463 80, ,058, % Excess (Deficiency) of Rev. over Exp. (63,640) (14,276) 0 (893) (48,470) OTHER FIN SRCS (USES) Operating Transfers In 63, ,640 % Operating Transfers Out % Insurance Proceeds % TOTAL OTHER FINANCING SOURCES (USES) 63, ,640 % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 0 (14,276) 0 (893) 15,170 38

39 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 WIC ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 211, , , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 289, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 1, , , TOTAL LIABILITY & FUND EQUITY 330, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental 566,209 41, , % Miscellaneous % TOTAL REVENUES 566,209 41, , % EXPENDITURES Personal Services 469,005 31, , % Supplies 29,936 3,804 1, , % Contractual & Other Costs 67,093 38,843 29,155 1,072 56, % Debt Service % Capital Outlay % TOTAL EXPENDITURES 566,034 74,631 30,940 1, , % Excess (Deficiency) of Rev. over Exp. 175 (33,313) (30,940) (1,072) 3,619 OTHER FIN SRCS (USES) Operating Transfers In % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 175 (33,313) (30,940) (1,072) 3,619 39

40 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 NUTRITION ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 168, , , , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 418, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 48 (168,676.02) (168,196.02) TOTAL LIABILITY & FUND EQUITY 250, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental 355,866 20, , % Miscellaneous 35,000 4, , % TOTAL REVENUES 390,866 24, , % EXPENDITURES Personal Services 329,034 20, , % Supplies 175,300 10, , % Contractual & Other Costs 39,955 3, , % Debt Service % Capital Outlay % TOTAL EXPENDITURES 544,289 34, , % Excess (Deficiency) of Rev. over Exp. (153,423) (9,823) 0 (480) (143,120) OTHER FIN SRCS (USES) Proceeds-Sale General Fix Assets % Operating Transfers In 151,035 12, , % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) 151,035 12, , % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (2,388) 2,962 0 (480) (4,870) 40

41 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 ROOM TAX ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 212, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 38, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 173, , TOTAL LIABILITY & FUND EQUITY 212, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Taxes 650,000 48, , % Intergovernmental % Miscellaneous (6) % TOTAL REVENUES 650,000 48, , % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs 227,500 37, , % Intergovenmental 422,500 37, , % Capital Outlay % TOTAL EXPENDITURES 650,000 75, , % Excess (Deficiency) of Rev. over Exp. 0 (27,154) ,154 OTHER FIN SRCS (USES) Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 0 (27,154) ,154 41

42 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 PEG CHANNEL ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 104, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 5, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 98, , TOTAL LIABILITY & FUND EQUITY 104, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Taxes 48, ,000 % Intergovernmental % Miscellaneous (0) % TOTAL REVENUES 48, ,000 % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs % Intergovenmental % Capital Outlay 150, ,000 % TOTAL EXPENDITURES 150, ,000 % Excess (Deficiency) of Rev. over Exp. (102,000) (102,000) OTHER FIN SRCS (USES) Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (102,000) (102,000) 42

43 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 LOAN REPAYMENT ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 147, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 147, , TOTAL LIABILITY & FUND EQUITY 147, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCES BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous (6) % TOTAL REVENUES (6) % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs % Intergovenmental % Capital Outlay % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp (6) OTHER FIN SRCS (USES) Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (6) 43

44 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 PROPERTY & FORFEITURE ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 49, , , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 53, , TOTAL LIABILITY & FUND EQUITY 53, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental 4, ,000 % Miscellaneous (3) % TOTAL REVENUES 4, , % EXPENDITURES Personal Services % Supplies 41, ,849 % Contractual & Other Costs % Intergovenmental % Capital Outlay % TOTAL EXPENDITURES 41, ,849 % Excess (Deficiency) of Rev. over Exp. (37,849) (37,852) OTHER FIN SRCS (USES) Sale of General Fix Assets % Proceeds From Lease Agreemnt % Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (37,849) (37,852) 44

45 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 LAW ENFORCEMENT EMPLOYEE CO ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Inventory Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 13, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 13, , TOTAL LIABILITY & FUND EQUITY 13, AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED REVENUES Charges for Services % Intergovernmental % Miscellaneous % TOTAL REVENUES % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp OTHER FIN SRCS (USES) Operating Transfers In % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses

46 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 TEXAS DEPARTMENT OF TRANSPORTATION GRANT - VCR ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Inventory Property, Plant, & Equipment Non Current Assets TOTAL ASSETS (9,692.79) 12, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 2, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY (575.91) (231.15) TOTAL LIABILITY & FUND EQUITY 2, AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED REVENUES Charges for Services % Intergovernmental 0 3, (3,325) % Miscellaneous % TOTAL REVENUES 0 3, (3,325) % EXPENDITURES Personal Services % Supplies 0 3,325 1, (2,207) % Contractual & Other Costs % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES 0 3,325 1, (2,207) % Excess (Deficiency) of Rev. over Exp. 0 0 (1,463) (345) (1,118) OTHER FIN SRCS (USES) Operating Transfers In % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 0 0 (1,463) (345) (1,118) 46

47 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 TXDOT SECTION 5310 ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 18, , , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 28, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY (4,186.77) (4,186.77) TOTAL LIABILITY & FUND EQUITY 24, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Service % Intergovernmental % TOTAL REVENUES % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs (14) % Debt Service % Capital Outlay % Reserves % TOTAL EXPENDITURES (14) % Excess (Deficiency) of Rev. over Exp. 0 (14) OTHER FIN SRCS (USES) Sale of General Fix Assets % Proceeds From Lease Agreemnt % Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 0 (14)

48 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 TXDOT JARC COLONIAS GRANT ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets TOTAL ASSETS (15,451.34) (15,451.34) LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY (15,451.34) (15,451.34) TOTAL LIABILITY & FUND EQUITY (15,451.34) - REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Service % Intergovernmental % TOTAL REVENUES % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs % Debt Service % Capital Outlay % Reserves % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp OTHER FIN SRCS (USES) Sale of General Fix Assets % Proceeds From Lease Agreemnt % Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses

49 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 ECONOMIC COMMUNITY AND HOUSING DEVELOPMENT ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS (15,543.89) (15,543.89) LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 33, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY (48,672.45) (48,672.45) TOTAL LIABILITY & FUND EQUITY (15,543.89) REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous % TOTAL REVENUES % EXPENDITURES Personal Services 93,687 7, , % Supplies 28, , % Contractual & Other Costs 4,300 2, , % Capital Outlay 0 1,147 1,042 0 (104) % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES 126,143 10,777 1, , % Excess (Deficiency) of Rev. over Exp. (126,143) (10,777) (1,592) 0 (116,958) OTHER FIN SRCS (USES) Operating Transfers In 126, ,233 % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) 126, ,233 % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 90 (10,777) (1,592) 0 9,275 49

50 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 COMMUNITY DEVELOPMENT BLOCK GRANT ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS 10,00 10,00 LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 10,00 10,00 TOTAL LIABILITY & FUND EQUITY 10,00 - REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous % TOTAL REVENUES % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp OTHER FIN SRCS (USES) Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses

51 DEBT SERVICE FUNDS 51

52 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 DEBT SERVICE ASSETS Current Assets Cash Investments Receivables Due From Other Funds Due From Other Governments Property, Plant, & Equipment Non Current Assets-Restricted Assets TOTAL ASSETS 3,678, , ,449, ,153, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Deferred Revenues TOTAL LIABILITIES 44, ,678, ,722, FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 2,431, ,431, TOTAL LIABILITY & FUND EQUITY 6,153, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Taxes 3,029, , ,879, % Intergovernmental % Miscellaneous 1, , % TOTAL REVENUES 3,030, , ,880, % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs % Debt Service 4,462, ,462,009 % Capital Outlay % TOTAL EXPENDITURES 4,462, ,462,009 % Excess (Deficiency) of Rev. over Exp. (1,431,423) 149, (1,581,413) OTHER FIN SRCS (USES) Proceeds From Lease Agreemnt % Operating Transfers In 1,445, ,445,145 % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) 1,445, ,445,145 % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 13, , (136,268) 52

53 CAPITAL PROJECTS FUNDS 53

54 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 QUALIA RELIEF ROUTE ASSETS Current Assets Cash Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS (19,830.16) 233, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 214, , TOTAL LIABILITY & FUND EQUITY 214, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental 2,050, ,050,000 % Miscellaneous % TOTAL REVENUES 2,050, ,050,000 % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Debt Service % Capital Outlay 2,564, ,564,652 % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES 2,564, ,564,652 % Excess (Deficiency) of Rev. over Exp. (514,652) (514,652) OTHER FIN SRCS (USES) Bond Proceeds % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (514,652) (514,652) 54

55 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 PARKING LOT/GARAGE ASSETS Current Assets Cash Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY TOTAL LIABILITY & FUND EQUITY REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous % TOTAL REVENUES % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Debt Service Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp OTHER FIN SRCS (USES) Bond Proceeds % Operating Transfers In % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses

56 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 CITY HALL BUILDING ASSETS Current Assets Cash Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS 69, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 69, , TOTAL LIABILITY & FUND EQUITY 69, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous (3) % TOTAL REVENUES (3) % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Debt Service Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp (3) OTHER FIN SRCS (USES) Bond Proceeds % Operating Transfers In % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (3) 56

57 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 ANIMAL SHELTER ASSETS Current Assets Cash Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS (55,315.95) (55,315.95) LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 21, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY (77,292.05) (77,292.05) TOTAL LIABILITY & FUND EQUITY (55,315.95) - REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous (7) % TOTAL REVENUES (7) % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp (7) OTHER FIN SRCS (USES) Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (7) 57

58 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 BICYCLE & WALKING TRL ASSETS Current Assets Cash Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS 13, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 13, , TOTAL LIABILITY & FUND EQUITY 13, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental 0 129, (129,533) % Miscellaneous (2) % TOTAL REVENUES 0 129, (129,535) % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Debt Service % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp , (129,535) OTHER FIN SRCS (USES) Bond Proceeds % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 0 129, (129,535) 58

59 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 C.P. POLICE STATION ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS 68, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 322, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY (254,794.93) (254,794.93) TOTAL LIABILITY & FUND EQUITY 68, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENUCMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous (158) % TOTAL REVENUES (158) % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Debt Service % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp (158) OTHER FIN SRCS (USES) Proceeds From Bonds % Operating Transfers In % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (158) 59

60 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 C.P. FIRE STATION ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS 1, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 10, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY (8,800.90) (8,800.90) TOTAL LIABILITY & FUND EQUITY 1, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENUCMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous (16) % TOTAL REVENUES (16) % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Debt Service % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp (16) OTHER FIN SRCS (USES) Proceeds From Sale of Bonds % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (16) 60

61 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 EMERGENCY OPERATIONS CENTER ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS 159, , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 65, , FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 93, , TOTAL LIABILITY & FUND EQUITY 159, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENUCMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous (8) % TOTAL REVENUES (8) % EXPENDITURES Personnel Services % Supplies % Contractual & Other Costs % Debt Service % Capital Outlay % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES % Excess (Deficiency) of Rev. over Exp (8) OTHER FIN SRCS (USES) Proceeds From Sale of Bonds % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (8) 61

62 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 STREETS & DRAINAGE ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Due From Other Governments Non Current Assets TOTAL ASSETS 9,408, , , ,843, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 4,977, ,977, FUND EQUITY Reserved Fund Balance Unreserved Fund Balance TOTAL FUND EQUITY 4,865, ,865, TOTAL LIABILITY & FUND EQUITY 9,843, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services % Intergovernmental % Miscellaneous (633) % TOTAL REVENUES (633) % EXPENDITURES Personal Services % Supplies % Contractual & Other Costs % Debt Service % Capital Outlay 2,500, , ,048, % Repairs & Replacement % Buyout Properties % TOTAL EXPENDITURES 2,500, , ,048, % Excess (Deficiency) of Rev. over Exp. (2,500,000) (450,736) 0 0 (2,049,264) OTHER FIN SRCS (USES) Proceeds from Sale of Bonds % Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses (2,500,000) (450,736) 0 0 (2,049,264) 62

63 INTERNAL SERVICE FUNDS 63

64 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 UTILITY BILLING ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Restricted Assets Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 308, , , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 30, , , FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings TOTAL FUND EQUITY 36, , , TOTAL LIABILITY & FUND EQUITY 343, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services 751,897 62, , % Interest Revenues (7) % TOTAL REVENUES 751,897 62, , % EXPENDITURES Personal Services 587,598 38, , % Supplies 22,600 4, , % Contractual & Other Costs 138,682 4, , % Debt Service % Capital Outlay (95) % Contingencies % TOTAL EXPENDITURES 748,880 48, , % Excess (Deficiency) of Rev. over Exp. 3,017 14,576 0 (218) (11,341) OTHER FIN SRCS (USES) Operating Transfers Out (2,596) (2,596) % Operating Transfers In % TOTAL OTHER FINANCING SOURCES (USES) (2,596) (2,596) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses ,576 0 (218) (13,937) 64

65 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 COMPUTER SERVICES ASSETS Current Assets Cash & Cash Equivalents Investments Receivables Due From Other Funds Restricted Assets Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 140, , , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 57, , , , FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings TOTAL FUND EQUITY TOTAL LIABILITY & FUND EQUITY 108, , , , REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services 468,086 39, , % Interest Revenues (3) % Miscellaneous Income % TOTAL REVENUES 468,086 39, , % EXPENDITURES Personal Services 264,914 19, , % Supplies 7,100 2,115 1, , % Contractual & Other Costs 238,013 63, , , % Debt Service 105, ,802 % Capital Outlay 0 17,255 17,216 0 (39) % Contingencies % TOTAL EXPENDITURES 615, ,228 19,134 7, , % Excess (Deficiency) of Rev. over Exp. (147,743) (63,218) (19,134) (7,550) (96,109) OTHER FIN SRCS (USES) Operating Transfers In 150,540 13, , % Bond Proceeds/ Transfers Out (2,544) (2,544) % TOTAL OTHER FINANCING SOURCES (USES) 147,996 13, , % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 253 (49,393) (19,134) (7,550) 38,062 65

66 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 FLEET SERVICES ASSETS Current Assets Cash & Cash Equivalents Receivables Due From Other Funds Restricted Assets Property, Plant, & Equipment Non Current Assets TOTAL ASSETS 5, , , , LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 365, , , FUND EQUITY Reserved Retained Earnings 7, Designated Unreserved Retained Earnings 429, Unreserved Retained Earnings (651,469.17) TOTAL FUND EQUITY (214,902.35) TOTAL LIABILITY & FUND EQUITY 181, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services 760, , , % Interest Revenues (18) % Other Revenues % TOTAL REVENUES 760, , , % EXPENDITURES Personal Services 330,343 24, , % Supplies 291,341 56,914 9,600 8, , % Contractual & Other Costs 138,548 39,514 11,072 4, , % Debt Service % Capital Outlay (129) % Contingencies % TOTAL EXPENDITURES 760, ,004 20,672 13, , % Excess (Deficiency) of Rev. over Exp ,486 (20,672) (13,269) (13,502) OTHER FIN SRCS (USES) Operating Transfers (Out) % Operating Transfers In 89,781 6, , % Sale of Fixed Assets 25,000 3, , % TOTAL OTHER FINANCING SOURCES (USES) 114,781 9, , % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 115,168 16,444 (20,672) (13,269) 91,321 66

67 CITY OF DEL RIO FINANCIAL REPORT FOR THE MONTH ENDING OCTOBER 31, 2015 HEALTH CLAIMS ASSETS Current Assets Cash & Cash Equivalents 1,006, Investments Receivables Due From Other Funds Restricted Assets Non Current Assets TOTAL ASSETS 1,006, LIABILITIES & FUND EQUITY LIABILITIES Current Liabilities 165, Other Liabilities Long-Term Liabilities TOTAL LIABILITIES 165, FUND EQUITY Reserved Retained Earnings Unreserved Retained Earnings 840, TOTAL FUND EQUITY 840, TOTAL LIABILITY & FUND EQUITY 1,006, REVENUES AMENDED YTD PRIOR YR YTD BUDGET % REALIZED BUDGET ACTUAL ADJ ENCUMBRANCE BALANCE EXPENDED Charges for Services 3,320, , ,068, % Interest Revenues % Other Revenues (0) % TOTAL REVENUES 3,320, , ,068, % EXPENDITURES Contractual & Other Costs % Debt Service % Purchase for Resale 3,320,579 32, ,288, % Reserves % TOTAL EXPENDITURES 3,320,579 32, ,288, % Excess (Deficiency) of Rev. over Exp , (220,169) OTHER FIN SRCS (USES) Sale of General Fix Assets % Other Revenue % Proceeds of Long Term Debt % Operating Transfers In % Operating Transfers Out % TOTAL OTHER FINANCING SOURCES (USES) % Excess (Deficiency) of Rev. & Other Sources over Exp. & Other Uses 0 220, (220,169) 67

68 CITY OF DEL RIO 1.5% SALES TAX REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT. N/A 397, % 381, % 361, % 363, % 386,902 NOV. N/A 450, % 450, % 456, % 441, % 462,632 DEC. N/A 357, % 318, % 397, % 368, % 371,040 JAN. N/A 378, % 384, % 366, % 345, % 408,798 FEB. N/A 537, % 562, % 536, % 532, % 565,219 MAR. N/A 351, % 389, % 366, % 343,843 1% 378,227 APR. N/A 384, % 365, % 364, % 379, % 354,209 MAY N/A 498, % 484, % 441, % 507, % 501,779 JUN. N/A 361, % 374, % 390, % 377, % 409,336 JUL. N/A 393, % 389, % 354, % 376, % 413,474 AUG. N/A 471, % 471, % 470, % 475, % 507,379 SEP. N/A 386, % 431, % 378, % 386, % 388,656 N/A 4,967, % 5,005, % 4,883, % 4,898, % 5,147,650 BUDGET N/A 4,900, % 5,100,000 % 5,100, % 5,000, % 4,800,000 % of BUDGET RECD. YTD % 98.14% 95.75% 97.98% % AVERAGE MONTHLY 413, % 417, % 406, % 408, % 428,971 CITY OF DEL RIO 1.5% SALES TAX REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT % 440, % 475, % 447, % 499, % 445,150 NOV % 456, % 468, % 478, % 463,503 DEC. 4.49% 387, % 439, % 438, % 467,339 JAN. 2.79% 420, % 451, % 456, % 460,600 FEB % 552, % 621, % 595, % 653,412 MAR % 374, % 428, % 412, % 430,713 APR % 424, % 429, % 440, % 451,973 MAY 2.25% 513, % 517, % 532, % 569,736 JUN. 2.90% 421, % 440, % 499, % 470,086 JUL. 1.61% 420, % 436, % 462, % 446,347 AUG % 499, % 517, % 555, % 597,723 SEP % 454, % 453, % 489, % 490, % 5,364, % 5,679, % 5,809, % 6,001, % 445,150 BUDGET 4.17% 5,000, % 5,300, % 5,500, % 5,775, % 5,876,000 % of BUDGET RECD. YTD % % % % 7.58% AVERAGE MONTHLY 447, % 473, % 484, % 500, % 445,150 68

69 CITY OF DEL RIO GAS SALES REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT. N/A 233, % 208, % 252, % 172, % 231,276 NOV. N/A 213, % 245, % 266, % 215, % 229,380 DEC. N/A 469, % 382, % 315, % 298, % 323,497 JAN. N/A 657, % 667, % 506, % 524, % 482,332 FEB. N/A 572, % 495, % 400, % 547, % 502,835 MAR. N/A 504, % 360, % 255, % 450, % 326,267 APR. N/A 139, % 329, % 201, % 319, % 251,248 MAY N/A 429, % 293, % 183, % 228, % 208,697 JUN. N/A 251, % 292, % 165, % 213, % 214,530 JUL. N/A 244, % 325, % 167, % 216, % 201,125 AUG. N/A 238, % 335, % 154, % 199, % 199,609 SEP. N/A 190, % 309, % 147, % 216, % 220,119 N/A 4,145, % 4,244, % 3,017, % 3,603, % 3,390,918 BUDGET N/A 4,208, % 3,897, % 4,182, % 4,099, % 3,860,601 % of BUDGET RECD. YTD 98.50% % 72.16% 87.91% 87.83% AVERAGE MONTHLY 345, % 353, % 251, % 300, % 282,576 CITY OF DEL RIO GAS SALES REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT % 219, % 231, % 248, % 239, % 212,320 NOV. 4.57% 239, % 263, % 257, % 276,723 DEC % 362, % 348, % 419, % 400,892 JAN % 481, % 612, % 618, % 499,237 FEB % 399, % 436, % 616, % 564,400 MAR. 5.85% 345, % 351, % 522, % 438,335 APR. 8.57% 272, % 286, % 375, % 321,786 MAY 14.88% 239, % 277, % 307, % 256,531 JUN % 214, % 274, % 276, % 248,375 JUL. 8.32% 217, % 250, % 268, % 240,948 AUG % 229, % 248, % 252, % 234,890 SEP. 9.42% 240, % 292, % 210, % 225, % 3,463, % 3,871, % 4,372, % 3,946, % 212,320 BUDGET -0.06% 3,858, % 3,477, % 3,713,443 1% 4,084, % 4,171,874 % of BUDGET RECD. YTD 89.78% % % 96.62% 5.09% AVERAGE MONTHLY 288, % 322, % 364, % 328, % 212,320 69

70 CITY OF DEL RIO WATER REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT. N/A 553, % 531, % 546, % 570, % 625,531 NOV. N/A 539, % 477, % 495, % 485, % 610,962 DEC. N/A 488, % 418, % 443, % 437, % 554,219 JAN. N/A 439, % 425, % 485, % 404, % 450,896 FEB. N/A 345, % 389, % 455, % 406, % 434,670 MAR. N/A 503, % 438, % 493, % 390, % 572,948 APR. N/A 292, % 540, % 542, % 521, % 672,800 MAY N/A 665, % 683, % 595, % 532, % 858,532 JUN. N/A 418, % 776, % 679, % 588, % 876,262 JUL. N/A 470, % 835, % 796, % 697, % 994,922 AUG. N/A 521, % 733, % 837, % 708, % 988,981 SEP. N/A 470, % 579, % 1,138, % 673, % 1,038,511 N/A 5,707, % 6,830, % 7,508, % 6,417, % 8,679,234 BUDGET N/A 6,714, % 6,890, % 6,154, % 6,758, % 7,600,000 % of BUDGET RECD. YTD 85.00% 99.13% % 94.95% % AVERAGE MONTHLY 475, % 569, % 625, % 534, % 723,270 CITY OF DEL RIO WATER REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT % 727, % 732, % 607, % 676, % 817,121 NOV. 7.97% 659, % 548, % 470, % 679,701 DEC % 531, % 541, % 490, % 540,982 JAN % 447, % 560, % 437, % 513,617 FEB % 426, % 429, % 430, % 494,009 MAR % 443, % 538, % 463, % 464,465 APR % 578, % 617, % 547, % 515,592 MAY % 622, % 661, % 709, % 543,596 JUN % 678, % 679, % 752, % 521,852 JUL % 882, % 721, % 742, % 560,789 AUG % 914, % 717, % 752, % 813,455 SEP % 867, % 1,024, % 551, % 958, % 7,779, % 7,772, % 6,956, % 7,282, % 817,121 BUDGET 7.28% 8,152, % 8,450, % 8,345, % 8,675, % 8,375,000 % of BUDGET RECD. YTD 95.42% 91.99% 83.36% 83.95% 9.76% AVERAGE MONTHLY 648, % 647, % 579, % 606, % 817,121 70

71 CITY OF DEL RIO BRIDGE REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT. N/A 452, % 433, % 411, % 358, % 422,427 NOV. N/A 452, % 416, % 389, % 344, % 404,404 DEC. N/A 488, % 446, % 413, % 365, % 441,029 JAN. N/A 411, % 386, % 353, % 325, % 392,878 FEB. N/A 409, % 400, % 352, % 322, % 372,379 MAR. N/A 469, % 420, % 373, % 364, % 427,178 APR. N/A 436, % 407, % 368, % 338, % 410,915 MAY N/A 450, % 438, % 348, % 334, % 420,270 JUN. N/A 431, % 417, % 332, % 343, % 412,051 JUL. N/A 427, % 412, % 360, % 336, % 426,925 AUG. N/A 433, % 415, % 347, % 360, % 415,892 SEP. N/A 404, % 390, % 332, % 348, % 410,919 N/A 5,268, % 4,986, % 4,385, % 4,143, % 4,957,266 BUDGET N/A 5,308, % 5,453, % 5,336, % 4,429, % 4,370,291 % of BUDGET RECD. YTD 99.25% 91.44% 82.18% 93.54% % AVERAGE MONTHLY 439, % 415, % 365, % 345, % 413,105 CITY OF DEL RIO BRIDGE REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT % 415, % 407, % 433, % 545, % 582,400 NOV % 400, % 412, % 427, % 507,503 DEC % 420, % 434, % 443, % 562,829 JAN % 390, % 388, % 402, % 490,870 FEB. 6.29% 395, % 382, % 391, % 489,021 MAR % 426, % 417, % 441, % 550,227 APR % 403, % 413, % 442, % 548,558 MAY 1.24% 425, % 450, % 456, % 553,282 JUN % 411, % 408, % 435, % 546,499 JUL % 408, % 421, % 446, % 567,264 AUG. 9.58% 455, % 442, % 466, % 546,144 SEP % 376, % 391, % 428, % 537, % 4,929, % 4,971, % 5,215, % 6,445, % 582,400 BUDGET 2.61% 4,484, % 4,740, % 4,890, % 6,037, % 6,605,429 % of BUDGET RECD. YTD % % % % 8.82% AVERAGE MONTHLY 410, % 414, % 434, % 537, % 582,400 71

72 CITY OF DEL RIO SEWER REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT. N/A 299, % 284, % 290, % 289, % 279,493 NOV. N/A 353, % 280, % 287, % 302, % 285,018 DEC. N/A 296, % 273, % 285, % 300, % 265,117 JAN. N/A 305, % 283, % 297, % 303, % 273,864 FEB. N/A 290, % 280, % 288, % 305, % 255,478 MAR. N/A 255, % 276, % 298, % 282, % 297,076 APR. N/A 171, % 283, % 296, % 271, % 284,194 MAY N/A 388, % 294, % 303, % 269, % 307,986 JUN. N/A 277, % 294, % 305, % 273, % 318,076 JUL. N/A 278, % 313, % 314, % 283, % 323,541 AUG. N/A 282, % 295, % 309, % 285, % 323,656 SEP. N/A 284, % 284, % 431, % 209, % 391,286 N/A 3,484, % 3,442, % 3,708, % 3,378, % 3,604,787 BUDGET N/A 2,855, % 3,291, % 3,009, % 3,369, % 3,913,376 % of BUDGET RECD. YTD % % % % 92.11% AVERAGE MONTHLY 290, % 286, % 309, % 281, % 300,399 CITY OF DEL RIO SEWER REVENUE HISTORY MONTH % +/ % +/ % +/ % +/ % +/ OCT % 327, % 307, % 328, % 361, % 399,942 NOV. 9.45% 311, % 298, % 313, % 403,633 DEC % 315, % 294, % 311, % 381,846 JAN. 8.21% 296, % 300, % 317, % 363,514 FEB % 287, % 292, % 307, % 360,540 MAR % 285, % 297, % 313, % 351,096 APR. 0.23% 284, % 321, % 296, % 362,004 MAY -5.33% 291, % 332, % 307, % 367,257 JUN % 299, % 323, % 362, % 369,517 JUL % 303, % 324, % 310, % 364,351 AUG % 313, % 333, % 308, % 388,177 SEP % 291, % 402, % 247, % 420, % 3,609, % 3,829, % 3,724, % 4,494, % 399,942 BUDGET -0.34% 3,900, % 3,732, % 4,150, % 4,663, % 3,909,853 % of BUDGET RECD. YTD 92.56% % 89.74% 96.38% 10.23% AVERAGE MONTHLY 300, % 319, % 310, % 374, % 399,942 72

73 City Council Regular 11. a. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Juan Onofre, Airport Manager, Economic Development Information O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-4, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Del Clayton, leasing a parcel of land consisting of approximately 784 square feet located beneath Hangar C-4, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Mr. Clayton is the owner of hangar C-4 and is interested in entering into a Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Mr. Clayton has complied with all applicable rules and regulations imposed at the Del Rio International Airport and is current on his obligations on his two other hangars at the Airport. PROS: If this Ordinance is passed the City of Del Rio will continue to collect revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Del Clayton, for approximately 784 square feet of land located beneath Hangar C-4 at the Del Rio International Airport. FISCAL IMPACT: Fiscal Impact The fiscal impact will be Annual revenue for the City of Del Rio of $ O C-4 Del Clayton Lease C-4 Attachments 73

74 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-4, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Mr. Del Clayton of 760 Windmill Trail, Del Rio, Texas 78840, acquired Hangar C- 4 in August 2015: and WHEREAS, Mr. Clayton is interested in entering into Noncommercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Mr. Del Clayton, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Mr. Del Clayton for approximately 784 square feet of land located beneath Hangar C-4 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 74

75 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-4 Hangar lease C-4 Del Clayton,

76 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar lease C-4 Del Clayton,

77 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND DEL CLAYTON * KNOW ALL MEN BY 760 WINDMILL TRAIL * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and DEL CLAYTON of 760 WINDMILL TRAIL Del Rio, Texas 78840, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 784 square feet of land, more particularly described as follows: Hangar C-4 That land beneath that building detailed on Attachment 1 and identified as Hangar C-4 for a total of approximately 784 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 th day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 784 square feet at the annual rate of $0.32 per square foot for the land beneath Hangar C-4. This amount Hangar lease C-4 Del Clayton,

78 is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar lease C-4 Del Clayton,

79 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-4 Storage of Aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar lease C-4 Del Clayton,

80 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar lease C-4 Del Clayton,

81 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar lease C-4 Del Clayton,

82 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar lease C-4 Del Clayton,

83 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or un-enforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager DEL CLAYTON C-4 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar lease C-4 Del Clayton,

84 Hangar lease C-4 Del Clayton,

85 ATTACHMENT 1 Hangar C-4 Hangar lease C-4 Del Clayton,

86 City Council Regular 11. b. Meeting Date: 05/24/2016 Submitted By: Juan Onofre, Airport Manager, Economic Development Information SUBJECT: O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute An Addendum To The Lease Agreement For Hangar C-5 - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, an addendum to the Non-Commercial Lease Agreement between the City of Del Rio and Mr. Gary Mead, for a parcel of land beneath hangar C-5 of approximately 1,200 square feet, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: After conducting a review of the lease for Hangar C-5 and comparing historical data and Valverde County appraisal district online information staff found that sometime between March and October 2013 hangar C-5 was improved from 850 sq. ft. to a 1,200 sq. ft. structure; such change was never logged in the lease between the City and hangar owner. DISCUSSION: It is necessary to modify the lease between the City and Mr. Mead to reflect the correct area occupied by hangar C-5. PROS: If this Ordinance is passed the City of Del Rio will increase its collected revenue by $ annually and the actual land been used by Hangar C-5 will be reflected in the current lease. CONS: None. RECOMMENDATION: Staff recommends the approval of an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, an addendum to the Non-Commercial Lease Agreement between the City of Del Rio and Mr. Gary Mead, for a parcel of land beneath hangar C-5 of approximately 1,200 square feet, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. Fiscal Impact FISCAL IMPACT: The fiscal impact to the City of Del Rio is an increase to the annual revenue of $ O C-5 Gary Mead C-5 Amendment Attachments 86

87 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE AND ATTEST TO, RESPECTIVELY, AN ADDENDUM TO THE LEASE AGREEMENT WITH GARY MEAD, LEASING A PARCEL OF LAND CONTAINING APPROXIMATELY 1148 SQUARE FEET LOCATED BENEATH HANGAR C-5, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Mr. Gary Mead and the City of Del Rio entered into a written lease on June 12, 2012, for the premises commonly known as Hangar C-5, and WHEREAS, the City and Mr. Mead wish to modify the Lease because the original lease shows square footage of 850 sq. ft., when in actuality the size of the hangar space, and therefore airport space rental is 1200 sq. ft.; and WHEREAS, it is in the City of Del Rio s best interest to amend this ground lease agreement with Mr. Mead, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute an addendum to the lease agreement with Mr. Gary Mead, leasing a parcel of land containing approximately 1200 square feet located beneath hangar C-5, to conduct storage of and minor maintenance of aircraft PASSED AND APPROVED on this the 24 th day of May ATTEST: SUSAN CORP City Secretary ROBERT GARZA Mayor REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 87

88 ADDENDUM TO THE LEASE BETWEEN THE CITY OF DEL RIO, TEXAS AND GARY MEAD The following supplements modify the Lease Agreement between the City of Del Rio, Texas, and GARY MEAD for the land identified as Hangar C-5 at the Del Rio International Airport, Del Rio, Texas Where any article or section of the original lease is modified by these supplements, then the unaltered provisions of the article, paragraph, subparagraph or clause shall remain in effect except to the extent contrary to the following supplemental conditions: WHEREAS, City and Tenant entered into a written lease (the Lease ) on June 12, 2012, for the premises commonly known as Hangar C-5, which was shown on a map attached and labeled Attachment 1; WHEREAS, The Lease is attached as Exhibit A and is incorporated by reference; WHEREAS, City and Tenant wish to modify the Lease because the original lease shows square footage of 850 sq. ft., when in actuality the size of the hangar space, and therefore airport space rental is 1200 sq. ft.; and WHEREAS, Attachment 2 reflects the correct location of square footage, and is incorporated herein. THE PARTIES THEREFORE AGREE AS FOLLOWS: 1. Section 1 will be amended as follows: Section 1. Leased Area Land-Lessor does hereby lease to Lessee approximately 1200 sq. ft. of land more particularly described as follows: Hangar C-5 That land beneath that building detailed on Attachment 2 and identified as Hangar C-5 for a total of approximately 1200 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. 2. Section 3 will be amended as follows: Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay $0.32 a square foot, which is yearly the sum of $ The first year s payment shall be made in advance. Thereafter, all future payments shall be on or before the first working day of the year due for the term of this contract plus any extensions thereto. 1 88

89 ADDENDUM TO THE LEASE BETWEEN THE CITY OF DEL RIO, TEXAS AND GARY MEAD 3. Except for the modification made in Paragraph 1 of this agreement, all provisions of the Lease will continue in full force. 4. This modification will become effective on the 24 th day of May, The parties to the lease hereby agree to these modifications, as witnessed by the signatures of authorized representatives below: City of Del Rio: Signature Printed Name and Date Tenant: Signature Printed Name and Date 2 89

90 City Council Regular 11. c. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Juan Onofre, Airport Manager, Economic Development Information O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-6, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Rio Grande Aviation, leasing a parcel of land consisting of approximately 784 square feet located beneath Hangar C-6, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Rio Grande Aviation owns hangar C-6 and is interested in entering into a Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Rio Grande Aviation has complied with all applicable rules and regulations imposed at the Del Rio International Airport and is current on its obligations with the Airport. PROS: If this Ordinance is passed the City of Del Rio will collect a revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Rio Grande Aviation, for approximately 784 square feet of land located beneath Hangar C-6 at the Del Rio International Airport. FISCAL IMPACT: Fiscal Impact The fiscal impact will be Annual revenue for the City of Del Rio of $ O C-6 Rio Grande Aviation Lease C-6 Attachments 90

91 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-6, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Rio Grande Aviation of 1130 W. 10 th Street, Del Rio, Texas 78840, acquired Hangar C-6 in April 2016: and WHEREAS, Rio Grande Aviation is interested in entering into Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Rio Grande Aviation, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Rio Grande Aviation for approximately 784 square feet of land located beneath Hangar C-6 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 91

92 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-6 Hangar lease C-6 Rio Grande Aviation,

93 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar lease C-6 Rio Grande Aviation,

94 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND RIO GRANDE AVIATION * KNOW ALL MEN BY 1130 W 10 th Street * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and RIO GRANDE AVIATION of 1130 W 10 th Street, Del Rio, Texas 78840, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 784 square feet of land, more particularly described as follows: Hangar C-6 That land beneath that building detailed on Attachment 1 and identified as Hangar C-6 for a total of approximately 784 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 th day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 784 square feet at the Hangar lease C-6 Rio Grande Aviation,

95 annual rate of $0.32 per square foot for the land beneath Hangar C-6. This amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar lease C-6 Rio Grande Aviation,

96 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-6 Storage of Aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar lease C-6 Rio Grande Aviation,

97 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar lease C-6 Rio Grande Aviation,

98 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar lease C-6 Rio Grande Aviation,

99 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar lease C-6 Rio Grande Aviation,

100 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or un-enforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager RIO GRANDE AVIATION Tommy Mitchell C-6 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar lease C-6 Rio Grande Aviation,

101 Hangar lease C-6 Rio Grande Aviation,

102 ATTACHMENT 1 Hangar C-6 Hangar lease C-6 Rio Grande Aviation,

103 City Council Regular 11. d. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Juan Onofre, Airport Manager, Economic Development Information O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-7, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Rio Grande Aviation, leasing a parcel of land consisting of approximately 837 square feet located beneath Hangar C-7, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Rio Grande Aviation owns hangar C-7 and is interested in entering into a Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Rio Grande Aviation has complied with all applicable rules and regulations imposed at the Del Rio International Airport and is current on its obligations with the Airport. PROS: If this Ordinance is passed the City of Del Rio will collect a revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Rio Grande Aviation, for approximately 837 square feet of land located beneath Hangar C-7 at the Del Rio International Airport. FISCAL IMPACT: Fiscal Impact The fiscal impact will be Annual revenue for the City of $ O C-7 Rio Grande Aviation Lease C-7 Attachments 103

104 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-7, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Rio Grande Aviation of 1130 W. 10 th Street, Del Rio, Texas 78840, acquired Hangar C-7 in April 2016: and WHEREAS, Rio Grande Aviation is interested in entering into Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Rio Grande Aviation, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Hangar Keepers Lease Agreement between the City of Del Rio and Rio Grande Aviation for approximately 837 square feet of land located beneath Hangar C-7 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 104

105 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-7 Hangar lease C-7 Rio Grande Aviation,

106 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar lease C-7 Rio Grande Aviation,

107 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND RIO GRANDE AVIATION * KNOW ALL MEN BY 1130 W 10 th Street * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and RIO GRANDE AVIATION of 1130 W 10 th Street, Del Rio, Texas 78840, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 837 square feet of land, more particularly described as follows: Hangar C-7 That land beneath that building detailed on Attachment 1 and identified as Hangar C-7 for a total of approximately 837 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 th day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 837 square feet at the Hangar lease C-7 Rio Grande Aviation,

108 annual rate of $0.32 per square foot for the land beneath Hangar C-7. This amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar lease C-7 Rio Grande Aviation,

109 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-7 Storage of Aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar lease C-7 Rio Grande Aviation,

110 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar lease C-7 Rio Grande Aviation,

111 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar lease C-7 Rio Grande Aviation,

112 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar lease C-7 Rio Grande Aviation,

113 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or un-enforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager RIO GRANDE AVIATION Tommy Mitchell C-7 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar lease C-7 Rio Grande Aviation,

114 Hangar lease C-7 Rio Grande Aviation,

115 ATTACHMENT 1 Hangar C-7 Hangar lease C-7 Rio Grande Aviation,

116 City Council Regular 11. e. Meeting Date: 05/24/2016 Submitted By: Juan Onofre, Airport Manager, Economic Development Information SUBJECT: O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-8, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. James Osteen, leasing a parcel of land consisting of approximately 837 square feet located beneath Hangar C-8, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Mr. Osteen is the owner of hangar C-8 and has kept current with all fees associated to his lease, and is interested in entering into a new Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Mr. Osteen has has remained current in all payments in accordance with the previous lease agreement and additionally has complied with all applicable rules and regulations imposed at the Del Rio International Airport. PROS: If this Ordinance is passed the City of Del Rio will continue to collect revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. James Osteen, for approximately 837 square feet of land located beneath Hangar C-8 at the Del Rio International Airport. Fiscal Impact FISCAL IMPACT: The fiscal impact to the City of Del Rio is an annual revenue of $ O C-8 James Osteen Lease C-8 Attachments 116

117 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-8, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Mr. James Osteen of P.O. Box 55, Marfa, Texas 79843, had a noncommercial ground lease agreement for Hangar C-8 that began July 1 st 2005 for a term of 5 years: and WHEREAS, Mr. Osteen has continued to remain current in all fees associated with the previous lease agreement and is interested in entering into a new Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Mr. James Osteen, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Mr. James Osteen for approximately 837 square feet of land located beneath Hangar C-8 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 117

118 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-8 Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 118

119 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN i 119

120 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND JAMES OSTEEN * KNOW ALL MEN BY P.O. Box 55 * THESE, MARFA, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and JAMES OSTEEN of P.O. Box 55, Marfa, Texas 79843, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 837 square feet of land, more particularly described as follows: Hangar C-8 That land beneath that building detailed on Attachment 1 and identified as Hangar C-8 for a total of approximately 837 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 rd day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 837 square feet at the annual rate of $0.32 per square foot for the land beneath Hangar C-8. This Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 1 120

121 amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 2 121

122 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-8 Storage and minor Storage and Minor maintenance of aircraft Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 3 122

123 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 4 123

124 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 5 124

125 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 6 125

126 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or unenforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager JAMES OSTEEN C-8 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 7 126

127 Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 8 127

128 ATTACHMENT 1 Hangar C-8 Hangar Keepers Lease Agreement Hangar C-8 JAMES OSTEEN 8 128

129 City Council Regular 11. f. Meeting Date: 05/24/2016 Submitted By: Juan Onofre, Airport Manager, Economic Development Information SUBJECT: O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-10, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Rodolfo Rodriguez, leasing a parcel of land consisting of approximately 825 square feet located beneath Hangar C-10, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Mr. Rodriguez is the owner of hangar C-10 and has kept current with all fees associated to his lease, and is interested in entering into a new Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Mr. Rodriguez has has remained current in all payments in accordance with the previous lease agreement and additionally has complied with all applicable rules and regulations imposed at the Del Rio International Airport. PROS: If this Ordinance is passed the City of Del Rio will continue to collect revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Rodolfo Rodriguez, for approximately 825 square feet of land located beneath Hangar C-10 at the Del Rio International Airport. Fiscal Impact FISCAL IMPACT: The fiscal impact to the City of Del Rio is an annual revenue of $ O C-10 Rodolfo Rodriguez Lease C-10 Attachments 129

130 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-10, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Mr. Rodolfo Rodriguez of 222 Fox Drive, Del Rio, Texas 78840, had a noncommercial ground lease agreement for Hangar C-10 that began January 1 st 2009 for a term of 5 years: and WHEREAS, Mr. Rodriguez has continued to remain current in all fees associated with the previous lease agreement and is interested in entering into a new Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Mr. Rodolfo Rodriguez, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Mr. Rodolfo Rodriguez for approximately 825 square feet of land located beneath Hangar C-10 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 130

131 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-10 Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 131

132 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ i 132

133 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND RODOLFO RODRIGUEZ * KNOW ALL MEN BY 222 FOX DRIVE * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and RODOLFO RODRIGUEZ of 222 Fox Drive, Del Rio, Texas 78840, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 825 square feet of land, more particularly described as follows: Hangar C-10 That land beneath that building detailed on Attachment 1 and identified as Hangar C-10 for a total of approximately 825 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 rd day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 825 square feet at the annual rate of $0.32 per square foot for the land beneath Hangar C-10. This Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 1 133

134 amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 2 134

135 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-10 Storage and minor maintenance of aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 3 135

136 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 4 136

137 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 5 137

138 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 6 138

139 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or unenforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager RODOLFO RODRIGUEZ C-10 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 7 139

140 Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 8 140

141 ATTACHMENT 1 Hangar C-10 Hangar Keepers Lease Agreement Hangar C-10 RODOLFO RODRIGUEZ 8 141

142 City Council Regular 11. g. Meeting Date: 05/24/2016 Submitted By: Juan Onofre, Airport Manager, Economic Development Information SUBJECT: O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-11, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Jay Taylor, leasing a parcel of land consisting of approximately 825 square feet located beneath Hangar C-11, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Mr. Taylor is the owner of hangar C-11 and has kept current with all fees associated to his lease, and is interested in entering into a new Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Mr. Taylor has has remained current in all payments in accordance with the previous lease agreement and additionally has complied with all applicable rules and regulations imposed at the Del Rio International Airport. PROS: If this Ordinance is passed the City of Del Rio will continue to collect revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Jay Taylor, for approximately 825 square feet of land located beneath Hangar C-11 at the Del Rio International Airport. Fiscal Impact FISCAL IMPACT: The fiscal impact to the City of Del Rio is an annual revenue of $ O C-11 Jay Taylor Lease C-11 Attachments 142

143 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-11, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Mr. Jay Taylor of P.O. Box 1657, Del Rio, Texas 78841, had a noncommercial ground lease agreement for Hangar C-11 that began February 1 st 2009 for a term of 5 years: and WHEREAS, Mr. Taylor has continued to remain current in all fees associated with the previous lease agreement and is interested in entering into a new Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Mr. Jay Taylor, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Mr. Jay Taylor for approximately 825 square feet of land located beneath Hangar C-11 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 143

144 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-11 Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 144

145 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR i 145

146 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND JAY TAYLOR * KNOW ALL MEN BY P.O. Box 1657 * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and JAY TAYLOR of P.O. Box 1657, Del Rio, Texas 78841, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 825 square feet of land, more particularly described as follows: Hangar C-11 That land beneath that building detailed on Attachment 1 and identified as Hangar C-11 for a total of approximately 825 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 rd day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 825 square feet at the annual rate of $0.32 per square foot for the land beneath Hangar C-11. This Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 1 146

147 amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 2 147

148 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-11 Storage and minor maintenance of aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 3 148

149 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 4 149

150 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 5 150

151 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 6 151

152 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or unenforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager JAY M. TAYLOR C-11 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 7 152

153 Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 8 153

154 ATTACHMENT 1 Hangar C-11 Hangar Keepers Lease Agreement Hangar C-11 JAY TAYLOR 8 154

155 City Council Regular 11. h. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Juan Onofre, Airport Manager, Economic Development Information O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-13, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Justin Nulisch, leasing a parcel of land consisting of approximately 1,345 square feet located beneath Hangar C-13, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Mr. Justin Nulisch owns hangar C-13 and is interested in entering into a Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Mr. Justin Nulisch has complied with all applicable rules and regulations imposed at the Del Rio International Airport and is current on its obligations with the Airport. PROS: If this Ordinance is passed the City of Del Rio will collect a revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Justin Nulisch, for approximately 1,345 square feet of land located beneath Hangar C-13 at the Del Rio International Airport. FISCAL IMPACT: Fiscal Impact The fiscal impact will be Annual revenue for the City of Del Rio of $ O C-13 Justin Nulish Lease C-13 Attachments 155

156 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-13, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Justin Nulisch of 111 E. Gibbs Street, Del Rio, Texas 78840, acquired Hangar C- 13 in December 2014: and WHEREAS, Mr. Nulisch is interested in entering into Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Mr. Nulisch, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Justin Nulisch for approximately 1,345 square feet of land located beneath Hangar C-13 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 156

157 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-13 Hangar lease C-13 Justin Nulisch,

158 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar lease C-13 Justin Nulisch,

159 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND JUSTIN NULISCH * KNOW ALL MEN BY 111 E. Gibbs Street * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and JUSTIN NULISCH of 111 E. Gibbs Street, Del Rio, Texas 78840, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 1,345 square feet of land, more particularly described as follows: Hangar C-13 That land beneath that building detailed on Attachment 1 and identified as Hangar C-13 for a total of approximately 1,345 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 th day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 1345 square feet at the annual rate of $0.32 per square foot for the land beneath Hangar C-13. This Hangar lease C-13 Justin Nulisch,

160 amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar lease C-13 Justin Nulisch,

161 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-13 Storage of Aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar lease C-13 Justin Nulisch,

162 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar lease C-13 Justin Nulisch,

163 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar lease C-13 Justin Nulisch,

164 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar lease C-13 Justin Nulisch,

165 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or unenforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager JUSTIN NULISCH C-13 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar lease C-13 Justin Nulisch,

166 Hangar lease C-13 Justin Nulisch,

167 ATTACHMENT 1 Hangar C-13 Hangar lease C-13 Justin Nulisch,

168 City Council Regular 11. i. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Juan Onofre, Airport Manager, Economic Development Information O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-14, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Ted Bonds, leasing a parcel of land consisting of approximately 1,525 square feet located beneath Hangar C-14, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Mr. Ted Bonds owns hangar C-14 and is interested in entering into a Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Mr. Bonds has complied with all applicable rules and regulations imposed at the Del Rio International Airport and is current on its obligations with the Airport. PROS: If this Ordinance is passed the City of Del Rio will collect a revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Ted Bonds, for approximately 1,525 square feet of land located beneath Hangar C-14 at the Del Rio International Airport. FISCAL IMPACT: Fiscal Impact The fiscal impact is Annual revenue for the City of $ O C-14 Ted Bonds Lease C-14 Attachments 168

169 ORDINANCE NO. R: AN ORDINANCE AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-14, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Ted Bonds of P.O. Box , Del Rio, Texas 78842, acquired Hangar C-14 in August 2015: and WHEREAS, Mr. Bonds is interested in entering into Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Mr. Bonds, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Ted Bonds for approximately 1,525 square feet of land located beneath Hangar C-14 as indicated on Attachment 1. ATTEST: PASSED AND APPROVED on this the 24 th day of May ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 169

170 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-14 Hangar lease C-14 Ted Bonds,

171 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar lease C-14 Ted Bonds,

172 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND TED BONDS * KNOW ALL MEN BY P.O. BOX * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and TED BONDS of P.O. BOX Del Rio, Texas 78842, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 1,525 square feet of land, more particularly described as follows: Hangar C-14 That land beneath that building detailed on Attachment 1 and identified as Hangar C-14 for a total of approximately 1,525 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 th day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 1525 square feet at the annual rate of $0.32 per square foot for the land beneath Hangar C-14. This Hangar lease C-14 Ted Bonds,

173 amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar lease C-14 Ted Bonds,

174 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-14 Storage of Aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar lease C-14 Ted Bonds,

175 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar lease C-14 Ted Bonds,

176 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar lease C-14 Ted Bonds,

177 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar lease C-14 Ted Bonds,

178 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or unenforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager TED BONDS C-14 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar lease C-14 Ted Bonds,

179 Hangar lease C-14 Ted Bonds,

180 ATTACHMENT 1 Hangar C-14 Hangar lease C-14 Ted Bonds,

181 City Council Regular 11. j. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Juan Onofre, Airport Manager, Economic Development Information O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar C-15, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Ted Bonds, leasing a parcel of land consisting of approximately 1,525 square feet located beneath Hangar C-15, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Mr. Ted Bonds owns hangar C-15 and is interested in entering into a Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Mr. Bonds has complied with all applicable rules and regulations imposed at the Del Rio International Airport and is current on its obligations with the Airport. PROS: If this Ordinance is passed the City of Del Rio will collect a revenue of $ annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Mr. Ted Bonds, for approximately 1,525 square feet of land located beneath Hangar C-15 at the Del Rio International Airport. FISCAL IMPACT: Fiscal Impact The fiscal impact is Annual revenue for the City of $ O C-15 Ted Bonds Lease C-15 Attachments 181

182 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR C-15, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Ted Bonds of P.O. Box , Del Rio, Texas 78842, acquired Hangar C-15 in August 2015: and WHEREAS, Mr. Bonds is interested in entering into Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Mr. Bonds, NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Ted Bonds for approximately 1,525 square feet of land located beneath Hangar C-15 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 182

183 CITY OF DEL RIO HANGAR KEEPERS LEASE AGREEMENT DEL RIO INTERNATIONAL AIRPORT HANGAR C-15 Hangar lease C-15 Ted Bonds,

184 Attachment 1 Table of Contents Page Section 1 Leased Area 1 Section 2 Lease Term 1 Section 3 Consideration 1 Section 4 Permitted Use 3 Section 5 Restricted Use 3 Section 6 Sublease, Assignment or Sale 4 Section 7 Termination 4 Section 8 Hold Harmless 6 Section 9 Maintenance of Landing Area 6 Section 10 Miscellaneous 6 Attachment 1 Leased Premises 8 Hangar lease C-15 Ted Bonds,

185 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND TED BONDS * KNOW ALL MEN BY P.O. BOX * THESE, DEL RIO, TEXAS * PRESENTS: This lease is entered into this 24 th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and TED BONDS of P.O. BOX Del Rio, Texas 78842, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 1,525 square feet of land, more particularly described as follows: Hangar C-15 That land beneath that building detailed on Attachment 1 and identified as Hangar C-15 for a total of approximately 1,525 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Lease Term This lease shall be for a term of twenty (20) years, beginning on the 24 th day of May, 2016 and ending and terminating on the 23 th day of May, Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ which sum is based upon the 1525 square feet at the annual rate of $0.32 per square foot for the land beneath Hangar C-15. This Hangar lease C-15 Ted Bonds,

186 amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum every year throughout the term of this lease, as hereinafter provided, to reflect any increase in the U.S. Department of Commerce s Consumer Price Index (CPI) during the twenty (20) year term of this lease. After each adjustment in the rent, Lessee shall pay the adjusted yearly rent until the time of the next rental adjustment called for in this section. Adjustments in the yearly rent shall be determined by multiplying the Minimum Yearly Rent set forth above by a fraction, the numerator of which is the index number for the last month of the calendar year that ended immediately before the date on which the adjustment is to be made and the denominator of which is the index number for the first month of the first year of the lease term. If the product is greater than the Minimum Yearly Rent specified above, Lessee will pay this greater amount as the yearly rent until the time of the next rental adjustment called for in this section. If the product is less than the Minimum Yearly Rent as set for above, the annual rent will not be adjusted at that time and the Lessee will pay the minimum yearly rent set forth above until the time of the next rental adjustment as called for in this section. In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. F. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. Hangar lease C-15 Ted Bonds,

187 ii. iii. iv. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. In the event of sublease the Lessee shall provide a business liability insurance with a policy limit of $1,000,00. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use C-15 Storage of Aircraft Storage and Minor Maintenance of Aircraft Section 5. Restricted Use A. Lessee shall abide by all applicable rules and regulations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, and the Texas Commission on Environmental Quality. B. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. C. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall Hangar lease C-15 Ted Bonds,

188 be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessor to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. D. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. E. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. F. The Land shall not be used for the storage of vehicles, non-aeronautical activities or for any other purposes other than as authorize in Section 4. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in Section 3 Paragraph; F iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of Hangar lease C-15 Ted Bonds,

189 required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall either (i) pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) require the removal of the Lessees improvements at Lessees expense, or,(iii) permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in Section 7 Paragraph D hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a Hangar lease C-15 Ted Bonds,

190 court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. Hangar lease C-15 Ted Bonds,

191 C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or unenforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager TED BONDS C-15 Hangar Owner ATTEST: SUSAN CORP City Secretary Hangar lease C-15 Ted Bonds,

192 Hangar lease C-15 Ted Bonds,

193 ATTACHMENT 1 Hangar C-15 Hangar lease C-15 Ted Bonds,

194 City Council Regular 11. k. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Juan Onofre, Airport Manager, Economic Development Information O: An Ordinance Authorizing And Directing City Manager Henry Arredondo To Execute A Hangar Keepers Lease Agreement For Hangar E-1, To Conduct Storage Of And Minor Maintenance Of Aircraft - Juan C. Onofre, Airport Manager SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Aeromaquila Inc., leasing a parcel of land consisting of approximately 7300 square feet located beneath Hangar E-1, to conduct storage of and minor maintenance of aircraft at the Del Rio International Airport. BACKGROUND: Aeromaquila Inc. is the owner of hangar E-1 and has kept current with all fees associated to its lease, and is interested in entering into a new Non-commercial lease agreement with the City of Del Rio. Staff presented this request for a lease to the Airport commission board and was approved to be presented to City Council. DISCUSSION: Aeromaquila Inc. has has remained current in all payments in accordance with the current lease agreement and additionally has complied with all applicable rules and regulations imposed at the Del Rio International Airport. PROS: If this Ordinance is passed the City of Del Rio will continue to collect revenue of $3,900 annually for this lease agreement as well as continue to encourage general aviation activities at Del Rio International Airport. CONS: None. RECOMMENDATION: Staff recommends approval of an ordinance authorizing and directing City Manager Henry Arredondo to execute and attest to respectively, a Non-Commercial Lease Agreement between the City of Del Rio and Aeromaquila Inc., for approximately 7300 square feet of land located beneath Hangar E-1 at the Del Rio International Airport. FISCAL IMPACT: Fiscal Impact The fiscal impact will be Annual revenue for the City of Del Rio of $3,90 O E-1 Aeromaquila Inflation data Lease E-1 Attachments 194

195 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO EXECUTE A HANGAR KEEPERS LEASE AGREEMENT FOR HANGAR E-1, TO CONDUCT STORAGE OF AND MINOR MAINTENANCE OF AIRCRAFT WHEREAS, Aero Maquila Inc. a Corporation of the State of Texas of 1100 West 10th Street Del Rio, Texas 78840, has a non commercial ground lease agreement for Hangar E-1 that began July 1 st 2011 for a term of 5 years: and WHEREAS, Aero Maquila Inc. has remained current in all fees associated with the previous lease agreement and is interested in entering into a new Non commercial Lease agreement for a term of twenty (20) years: and WHEREAS, it is in the City of Del Rio s best interest to enter into this ground lease agreement with Aero Maquila Inc., NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS THAT: The City Council of the City of Del Rio does here by authorize and direct City Manager Henry Arredondo to execute a Hangar Keepers Lease Agreement between the City of Del Rio and Aero Maquila Inc. for approximately 7,300 square feet of land located beneath Hangar E-1 as indicated on Attachment 1. PASSED AND APPROVED on this the 24 th day of May ATTEST: ROBERT GARZA Mayor SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 195

196 Department of commerce Consumer Price Index Lease rate from 2006 to 2016 $3, Cumulative rate of inflation 18.10% Equivalent buying power 2016 $3, *Data current for April 14, 2016 ( May 3, 2016) Next data release scheduled for May 17,

197 HANGAR KEEPER LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO, TEXAS AND AERO MAQUILA, INC. * KNOW ALL MEN BY THESE, 1100 WEST 10 TH STREET * PRESENTS: DEL RIO, TEXAS * This lease is entered into this 24th day of May, 2016, between the City of Del Rio, 109 West Broadway Del Rio, Texas hereinafter referred to as Lessor, the owner of the Del Rio International Airport, hereinafter referred to as Airport and Aero Maquila, Inc. a Corporation of the State of Texas of 1100 West 10 th Street Del Rio, Texas 78840, hereinafter referred to as Lessee who covenant and agree as follows: WHEREAS, Lessor and Lessee are committed to the proper operation, improvement and continued development of the Airport; and WHEREAS, Lessor deems it advantageous to itself and to the operation of the Airport to lease to Lessee certain land for the purpose and upon the terms and provisions stated herein; NOW, THEREFORE, in accordance of the terms, considerations and privileges listed herein, Lessor and Lessee covenant and agree as follows: Section 1. Leased Area Land Lessor does hereby lease to Lessee approximately 7300 square feet of land, more particularly described as follows: Hangar E-1 That land beneath that building as detailed on Attachment 1 and identified as Hangar E-1 for a total of approximately 7300 square feet and hereinafter referred to as the Land and located on the Airport. Lessee hereby leases the said Land from Lessor subject to the terms, considerations and privileges stated herein. Section 2. Term This lease shall be for a term of 20 years, beginning on the 1 st day of July, 2016 and ending and terminating on the 30 th day of June, Lessee will be given the option to renew this lease for an additional 10 years provided the terms and conditions are satisfactory to both the Lessor and Lessee. E-1 Hangar lease agreement

198 Section 3. Consideration A. In consideration for the lease of the Land referenced herein, Lessee hereby agrees to pay the sum of $ 3,90 for the 7300 square feet of land beneath Hangar E- 1. This amount is hereinafter referred to as the Minimum Yearly Rent. Lessee agrees to pay this yearly in advance. B. Lessee agrees that the annual rent shall be subject to review and adjustment minimum annually throughout the term of this lease, as to reflect any increases in the U.S. Department of Commerce's Consumer Price Index (CPI). In no event may any rental adjustments called for in this section result in an annual rent less than the minimum yearly rent set forth above. C. All rental fees shall be paid as the same become due, without demand, in lawful currency of the United States of America, made payable to the City of Del Rio, Texas, by mail or hand delivery to the Municipal Building Billing Department located at 109 West Broadway Street Del Rio, Texas D. In the event Lessee fails to remit any rental payments when the same are due, interest at the rate of ten percent (10%) per year shall be charged by Lessor beginning on the tenth day after the date the payment is due and such interest shall continue to accrue against such delinquent payment until the payment plus interest is received by Lessor. In the event Lessee shall become delinquent for more than thirty (30) days, this lease may be terminated by Lessor as provided in Section 7, Termination. E. Lessee agrees that it will at all times keep the premises of the Land clean and free of trash, litter, tall grass, weeds, junked automobiles and scrap aircraft parts. Lessee shall abide by all applicable rules and recommendations of the City of Del Rio, the Federal Aviation Administration, the Texas Department of Transportation, the Texas Commission on Environmental Quality, the Environmental Protection Agency, the Texas Natural Resources Conservation Commission, the Texas Department of Agriculture, and any other public agency concerning the use, storage and disposal of hazardous chemical, fuel and/or oil. Should Lessee fail to keep the Land clean as above provided, Lessor may after ten (10) days written notice, arrange for the cleanup of the area. Such clean up shall be charged to Lessee and shall be payable upon demand. Failure to render proper payment for such cleanup and/or general disregard of the considerations and restrictions listed in this lease agreement are grounds for Lessee to terminate this lease after thirty (30) days written notice by Lessor to Lessee, and upon failure of Lessee to cure his default within such thirty (30) day period of time. E-1 Hangar lease agreement

199 F. Taxes and Fees Lessee shall be liable for all taxes and fees owed in connection with the use and operation of its business on the Land. Under no circumstances shall Lessor be liable for or be required to pay any taxes or fees owed by Lessee. G. Insurance i. The Lessor shall not be held liable for any loss or damages to personal property. ii. Lessee shall provide its own general liability insurance policy coverage for any personal property located in or on the Land with a with a policy limit of $1,000,00. iii. In the event of sublease the Lessee shall provide business liability insurance with a policy limit of $1,000,00. iv. The Lessor shall be named on the liability insurance policies as additional insured. Certificates of required insurance shall be furnished by Lessee to Lessor and certificates presently then in effect shall be maintained on file at the Del Rio International Airport 1104 West 10 th Street Del Rio, Texas at all times. Any changes in those certificates must have the prior written approval of Lessor. v. Lessor shall provide insurance for all Lessor owned real property located at the Airport under Lessor s policy which shall be for the sole benefit and protection of Lessor. Section 4. Permitted Use A. The land is being leased by Lessor to Lessee for its activities as a Hangar Keeper. Lessee may perform the following activities on the Land at its discretion: aircraft storage and minor maintenance. Lessee represents that the use of the building situated on the Land is as follows: Building/Hangar Current Use Future Use E-1 Storage and Minor Storage and Minor Maintenance of Aircraft Maintenance of Aircraft B. All construction, remodeling and installation of facilities and improvements shall be in compliance with all applicable federal, state and local laws, rules and regulations. Lessee agrees and understands that any services provided will be in accordance with accepted standards; local, state and federal laws; to include Federal Aviation Administration regulations. Section 5. Restricted Use A. Lessee agrees to have a sufficient number of fire extinguishers of acceptable size as determined by the local fire marshal at the location. Such fire extinguishers shall be readily accessible in the event of a fire. E-1 Hangar lease agreement

200 B. Lessee agrees that it will not operate a non-aviation related business or activity on the Land without the expressed written consent of Lessor. Any such non-aviation related business or activity must be so established by a separate contract. C. The Land shall not be used for the storage of vehicles or for non-aeronautical activities. Section 6. Sublease, Assignment or Sale A. Lessee shall not sublease, assign or transfer this contract agreement or any right hereunder to any person, corporation, or association without proof of financial responsibility i.e. certificate business liability insurance policy as referred to in paragraph; G iii. B. Lessee shall not sublease, assign or transfer without prior written approval from Lessor. C. Lessee s sub lessee shall be held to all of the terms of Lessee s agreement with Lessor. D. Any sublease, assignment, or transfer without certificate of insurance, at the option of Lessor, shall be grounds for Lessor to immediately terminate this contract agreement. Section 7. Termination A. This contract may be prematurely terminated by Lessor or Lessee if either fails to abide by the terms and conditions expressed herein and due the complainant and so decreed by a court of competent jurisdiction. Should Lessee be declared bankrupt or insolvent, this contract shall immediately terminate. In the event Lessee fails to make timely payments of all taxes or fees, fails to provide proof of required insurance, uses the Airport property for any illegal or unauthorized purpose, files bankruptcy, abandons or leaves the leased property vacant or unoccupied for thirty (30) consecutive days, or violates any of the terms and conditions of this contract and fails to cure the default after thirty (30) days notice, Lessor has the right to terminate this contract and retake possession of any Airport property leased to or under the control of Lessee. Lessor shall not have the right to terminate this contract except upon thirty (30) days prior written notice of Lessee s default hereunder, and then only if Lessee fails to cure his default within such thirty (30) day period. B. Lessee agrees and understands that Lessor reserves the right to further expand, develop or improve the Airport, including the termination of this lease agreement, in such instance that the continued leasing of the Land would have a negative impact on any proposed development or improvements at the Airport. This contract may be terminated regardless of the desires, wishes or views of Lessee and without interference or hindrance from Lessee, but only so long as such expansion, development or improvements are shown on Federal Aviation E-1 Hangar lease agreement

201 Administration approved Airport Layout Plan or Master Plan and/or Texas Department of Transportation Plan. In the event that Lessor terminates this lease agreement as herein provided, then Lessor shall be obligated either (i) to pay Lessee for all improvements placed by Lessee upon the ground, based upon the fair market value of his improvements as of the date of termination; or (ii) to permit Lessee to relocate the improvements and other facilities pertaining to Lessee s business to another location on the airport acceptable to the parties under a lease agreement whose provisions are acceptable to the parties or substantially the same as the terms and provisions of this agreement. In the event that Lessor elects to relocate Lessee as above provided, then Lessor shall pay Lessee 100% of the cost of moving his improvements to the new location. C. This contract may be prematurely terminated by mutual agreement and consent of both parties in writing. Such termination by mutual agreement shall cause both Lessor and Lessee to be free of any and all requirements of this contract, except as contained in paragraph 7 D. hereunder, and neither Lessor nor Lessee shall have any derogatory remarks or entries made upon their resumes or upon any public or private records which would indicate failure to successfully fulfill the conditions of this contract. D. At the termination of this contract, either by normal expiration, premature termination or mutual agreement, Lessee shall peaceably vacate the premises. Should Lessee be in default of any rental or fuel flowage fees owed to Lessor, Lessor may take possession of any personal property owned by Lessee and located at the Airport and hold such until the monetary default is settled. In such case that Lessee cannot or will not settle any claims against him owed to Lessor, Lessor may liquidate any personal property seized, subject to the disposition of a court of competent jurisdiction. Lessee shall be liable for any and all expenses incurred by Lessor in such action. At the termination of this contract for any reason other than a termination by Lessor because of a default by Lessee and failure of Lessee to cure his default within the thirty (30) day period herein provided, Lessee shall have the right to remove all of the improvements constructed or installed and owned by Lessee upon the Land. If required by Lessor, Lessee shall remove any such improvements. Section 8. Hold Harmless Lessee agrees to save and hold harmless Lessor and its agents, servants and employees of and from any and all liabilities, expenses, causes of action, damages and/or attorney s fees resulting from or as a result of any of Lessee s businesses, operation, occupancy or use of the Airport or from any act or omission of Lessee s agents, servants, or employees. E-1 Hangar lease agreement

202 Section 9. Maintenance of Landing Area Lessee understands and agrees that Lessor reserves the right, but not the obligation, to maintain the Airport to at least the minimum standards as recommended by the Federal Aviation Administration, the Transportation Security Administration and/or the Texas Department of Transportation. Such right includes the right to maintain and keep in repair all public use areas at the Airport and the right to direct and control all activities as necessary at the Airport. Lessee also understands that Lessor is not obligated by this lease to continue operating the Airport as an airport and may close the Airport at any time and at its own discretion. Such closure shall immediately void this contract and no damages or monies or other compensation will be owed to Lessee by Lessor. Section 10. Miscellaneous A. This contract embraces the entire lease agreement of the parties mentioned herein pertaining to the Land and no statement, remark, agreement or understanding, either oral or written, not contained herein shall be recognized or enforced as it pertains to the lease of the Land, except that this contract may be modified by written addendum agreed to and signed by all pertinent parties and attached hereto. B. For the purpose of this contract, the singular number shall include the plural and the masculine shall include the feminine and vice versa, whenever the context so admits or requires. C. The Section captions and headings are inserted solely for the convenience of reference and are not part of nor intended to govern, limit or aid in the construction of any provision hereof. D. The parties to this contract hereby acknowledge and agree that they are the principals to this contract and have the power, right and authority to enter into this contract and are not acting as an agent for the benefit of any third party; except that Lessor is acting on behalf of the City of Del Rio, Texas. E. This contract shall be governed by the laws of the State of Texas and construed there under and venue of any action brought under this contract shall be in Val Verde County, Texas. F. If any section, paragraph, sentence or phrase entered in this contract is held to be illegal or unenforceable by a court of competent jurisdiction, such illegality or unenforceability shall not affect the remainder of this contract and, to this end, the provisions of this contract are declared to be severable. E-1 Hangar lease agreement

203 EXECUTED this 24 th day of May, HENRY ARREDONDO City Manager ANA VERONICA RAMON AGUIRRE Aero Maquila, Inc. ATTEST: SUSAN CORP City Secretary E-1 Hangar lease agreement

204 City Council Regular 11. l. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Celia Donez, Engineering Department Information O: An ordinance by the City Council of the Del Rio Texas authorizing and directing City Manager Henry Arredondo to appropriate necessary funds to facilitate the settlement of the agreement with Pat Ellis and the associated expert witness services. Matthew A. Rector, Assistant City Engineer. SUMMARY: Discussion and possible action on an ordinance to authorize and direct City Manager Henry Arredondo to appropriate necessary funds to facilitate the settlement of the agreement with Pat Ellis and the associated expert witness services. BACKGROUND: The City of Del Rio has agreed to a settlement with Mr. Pat Ellis for the acquisition of certain land. DISCUSSION: It is necessary to discuss the settlement agreement because it exceeds funds previously set aside, and the City of Del Rio has utilized the services of an "expert witness" during the legal proceedings to acquire said lands. PROS: If this Ordinance is passed the City will continue with the Qualia Relief Route project. CONS: None RECOMMENDATION: Staff recommends approval of an ordinance to authorize and direct City Manager Henry Arredondo to appropriate necessary funds to facilitate the settlement of the agreement with Pat Ellis and the associated expert witness services. FISCAL IMPACT: Fiscal Impact The total fiscal impact to the City of Del Rio is $276,500. The breakdown is as follows: $209,000 Settlement paid to a holding account on January 2016, an additional $60,500 for Settlement and $7,000 for expert witness services. O Settlement fees Pat Ellis Attachments 204

205 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS AUTHORIZING AND DIRECTING CITY MANAGER HENRY ARREDONDO TO APPROPRIATE NECESSARY FUNDS TO COVER COSTS OF SETTLEMENT AND THE ASSOCIATED EXPERT WITNESS SERVICES IN THE QUALIA RELIEF ROUTE ACQUISITION. WHEREAS, the City of Del Rio has agreed to a settlement with Mr. Pat Willis for the acquisition of certain lands; and WHEREAS, the City of Del Rio utilized the services of an appraiser during the legal proceedings to acquire said lands who testified and assisted in negotiations as an expert witness; and WHEREAS, the project budget has been depleted, therefore requiring the influx of additional moneys. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, THAT: City Manager Henry Arredondo is hereby authorized and directed to appropriate $69,500 from unallocated general funds to be used for acquisition of the property as per the settlement and expert witness fees as herein described. PASSED AND APPROVED on this 24 th day of May 2016, ATTEST: SUSAN CORP City Secretary ROBERT GARZA Mayor REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE WEST City Manager City Attorney 205

206 City Council Regular 11. m. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Elsa Reyes, Transportation Director, COMMUNITY SERVICE Information O: Ordinance of the City of Del Rio Authorizing and Directing City Manager to execute a lease agreement with Aguila Express to rent a portion of the City of Del Rio Transportation Center. Aguila Express provides shuttle services to San Antonio, Texas - Elsa Reyes, Transportation Director SUMMARY: Aguila Express is currently renting from the City of Del Rio and agreement is due to expire May 31, 2016 BACKGROUND: With Aguila Express located at an inter-modal facility it allows citizens to be able to have transportation options for their transportation needs. Some of the clients of Aguila Express also utilize the services that the City of Del Rio Transportation provides locally. DISCUSSION: The City of Del Rio Transportation has an opportunity to lease out the Transportation Bus Terminal facility to a commercial bus and shuttle service. PROS: Rental Agreement provides rental revenue of $12,000 to support public transportation services. CONS: Without the rental agreement the department would have to find other resources for revenue. RECOMMENDATION: City of Del Rio Transportation recommends the approval of the rental agreement with Aguila Express. FISCAL IMPACT: Fiscal Impact The fiscal impact to the City of Del Rio will be a Rental Agreement that will provide $12,000 per year in rental income. Ord Aguila Lease 2016 Lease Transp Aguila 2016 Attachments 206

207 ORDINANCE NO. O: AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS HEREBY AUTHORIZING AND DIRECTING THE CITY MANAGER HENRY ARREDONDO TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF DEL RIO AND AGUILA EXPRESS TO LEASE A PORTION OF THE TRANSPORTATION CENTER FOR THE PURPOSE OF PROVIDING SHUTTLE SERVICE TO THE CITIZENS OF DEL RIO AT 100 W OGDEN STREET (TRANSPORTATION CENTER) WHEREAS, The City of Del Rio has the opportunity to Lease out the Transportation Bus Terminal facility to a commercial Bus and Shuttle service ; and NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS, THAT: City Manager Henry Arredondo to execute a lease agreement between the City of Del Rio and Aguila Express for the purpose of providing shuttle service to the Citizens of Del Rio. A copy of said Lease Agreement is attached hereto and made a part hereof. PASSED AND APPROVED on this 24 th day of May ROBERT GARZA Mayor ATTEST: SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO City Manager SUZANNE WEST City Attorney 207

208 LEASE This Lease is entered into between the City of Del Rio, Texas ( City ), a Texas municipal corporation, and Aguila Express ( Tenant ). In consideration of the mutual covenants and agreements of this lease, and other good and valuable consideration, City demises and leases to Tenant, and Tenant leases from City, the leased premises, comprising 3,164 square feet of space at the Del Rio Transportation Center ( Building ), in Del Rio, Texas. Of the leased premises, 1, 336 square feet are for Tenant s exclusive use, with an additional 1, 728 square feet of common space. ARTICLE 1. TERM Term of Lease The term of this lease is one year, beginning on June 1, 2016, and ending on May 31, 2017, unless terminated sooner or extended as provided in this lease. Holdover If Tenant holds over and continues in possession of the premises after the lease term (or any extension of it) expires, Tenant will be considered to be occupying the premises at will, subject to all of the terms of this lease. ARTICLE 2. RENT Basic Rent Tenant will pay City $1,000 per month, from the beginning of the lease term and throughout the original lease term, in advance on the day of each month without deduction or setoff. This amount is the basic rent. Rent for any fractional month at the beginning or end of the lease term will be prorated on a per-day basis. ARTICLE 3. USE OF PREMISES Permitted Use Tenant will use the premises only for a transportation terminal, unless City gives Tenant prior written consent for a different use. Lessee shall have use of the storage and service porch for the loading and unloading of baggage. A lock box may be placed in this area for storage of baggage and freight dropped off after normal business hours. Design of lock box must be approved by City. Lock box must be maintained in good condition and appearance, and must not obstruct access to rail platform or mechanical room. Insurance Hazards 208

209 3.02. Tenant may not use, or permit using, the premises in any manner that will cause a cancellation of, or an increase in, the existing rates for fire, liability, or other insurance policies covering the premises or any improvements on them, or insuring City for any liability in connection with owning the premises. Compliance with Laws a. Tenant may not use, or permit using, the premises in any manner that results in waste of premises or constitutes a nuisance or for any illegal purpose. Tenant, at its own expense, will comply, and will cause its officers, employees, agents, and invitees to comply, with all applicable laws, ordinances, and governmental rules and regulations concerning the use of the premises. Use of Common Areas The common areas of the Building are for the joint use of Tenant and the other users of the Building. Tenant and its officers, employees, agents, and invitees will use the common areas in a reasonable, orderly, and sanitary manner in cooperation with all other tenants or users of the building and their officers, employees, agents, and invitees. Consideration for Other Tenants Tenant will conduct itself, and will cause its officers, employees, agents, and invitees to conduct themselves, with full regard for the rights, convenience, and welfare of all other tenants in the Building. Schedule Boards City will supply and install Arrival and Departure schedule boards in the vicinity of ticket counters. Lessee will maintain the boards in good working order, and will be responsible for replacement of any broken or missing components thereof. ARTICLE 4. SERVICES, MAINTENANCE, AND SURRENDER Services and Maintenance by City So long as Tenant is not in default under this lease, City will furnish the premises with the following services and maintenance at its sole expense: a. Heat and air conditioning from 8:00 a.m. until 5:00 p.m., every day except weekends and holidays, during the customary periods of the year when, and to the same extent, City furnishes heat and air conditioning for other portions of the Building. b. Electric service for lighting and equipment, and appliances. 209

210 c. Maintaining the structure of the Building, including but not limited to the roof, exterior walls (including windows), floors, and foundation. Maintenance and Surrender by Tenant Except as provided in 4.01, Tenant will maintain the premises and keep them free from waste or nuisance throughout the lease term and any extensions of it. When the lease terminates, Tenant must deliver the premises in as good a state of repair and condition as they existed when City delivered possession to Tenant, except for reasonable wear and tear and damage by fire, tornado, or other casualty. If Tenant neglects to reasonably maintain the premises, City may, but is not required to, cause repairs or corrections to be made. Any reasonable costs incurred for repairs or corrections for which Tenant is responsible under this section are payable by Tenant to City as additional rental on the next rental installment date. ARTICLE 5. TAXES ON TENANT S PROPERTY Tenant will pay all taxes levied or assessed against personal property, furniture, or fixtures it places in or on the premises. If any such taxes for which Tenant is liable are levied or assessed against City or City s property, and City elects to pay them, or if the assessed value of City s property is increased by including personal property, furniture, or fixtures placed by Tenant in the premises, and City elects to pay the taxes based on the increase, Tenant must, upon demand, pay City the part of the taxes for which Tenant is primarily liable under this article. ARTICLE 6. ALTERATIONS, ADDITIONS, IMPROVEMENTS, AND FIXTURES Consent of City Tenant may not make any alterations, additions, or improvements to the premises without City s prior written consent. City may not unreasonably withhold consent for nonstructural alterations, additions, or improvements. Property of City All alterations, additions, or improvements made by Tenant will become City s property when the lease terminates. However, City may, when the lease terminates, remove any alterations, additions, and improvements made by Tenant and any other property it placed in the premises, and charge Tenant the cost of removal plus interest. Trade Fixtures Tenant has the right at all times to erect or install furniture and fixtures, as long as Tenant complies with all applicable governmental laws, ordinances, and regulations. Tenant may remove such items when this lease terminates, if Tenant is not in default at that time and the fixtures can be removed without structural damage to the premises. Before this lease 210

211 terminates, Tenant must repair any damage caused by removing any fixtures. Any furniture or fixtures not removed by Tenant when this lease terminates are considered abandoned by Tenant and automatically become City s property. Alterations Required by Accessibility Laws a. Tenant is responsible for making any alterations, additions, or improvements to the premises that are mandated by accessibility legal requirements ( accessibility alterations ). The allocation of responsibility to Tenant for compliance with accessibility legal requirements with respect to the premises is a material inducement for the parties to enter this lease. ARTICLE 7. DAMAGE OR DESTRUCTION Notice to City If the premises or any structures or improvements on them are damaged or destroyed by fire, tornado, or other casualty, Tenant must immediately give City written notice of the damage or destruction, including a general description of the damage and, as far as known to Tenant, the cause of the damage. Total Destruction If the premises are totally destroyed by fire, tornado, or other casualty other than by the negligence, gross negligence, or intentional tort of Tenant or any person in or about the premises with Tenant s express or implied consent, or if they are so damaged that rebuilding or repairs cannot reasonably be completed within a reasonable time and at a reasonable cost, and the damage exceeds the insurance recovery, this lease will terminate, and rent will be abated for the unexpired portion of this lease, effective as of the date of written notification as provided in Partial Destruction If the premises are damaged by fire, tornado, or other casualty other than by the negligence, gross negligence, or intentional tort of Tenant or any person in or about the premises with Tenant s express or implied consent, and the damage exceeds the insurance recovery, this lease will terminate and rent will be abated for the unexpired portion of this lease, effective as of the date of written notification as provided in ARTICLE 8. CONDEMNATION Total Condemnation If, during the lease term or any extension or renewal of the lease, all of the premises are taken for any public or quasi-public use under any governmental law, ordinance, or 211

212 regulation, or by right of eminent domain, or are sold to the condemning authority under threat of condemnation, this lease will terminate, and the rent will be abated during the unexpired portion of this lease, effective as of the date the condemning authority takes the premises. Partial Condemnation If less than all, but more than percent, of the premises is taken for any public or quasipublic use under any governmental law, ordinance, or regulation or by right of eminent domain, or is sold to the condemning authority under threat of condemnation, either party may terminate the lease by giving written notice to the other within 30 days after the entity exercising the power of condemnation takes possession of the condemned portion. In addition, if percent of the parking area, or all of the signage, of the premises is taken for any public or quasi-public use under any governmental law, ordinance, or regulation or by right of eminent domain, or is sold to the condemning authority under threat of condemnation, Tenant may terminate the lease by giving City written notice within 30 days after the entity exercising the power of condemnation takes possession of the condemned portion. If the premises are partially condemned and neither party elects to terminate the lease, or if less than percent of the premises is condemned, this lease will not terminate, but the rent will be adjusted equitably during the unexpired portion of this lease. ARTICLE 9. RULES AND REGULATIONS Tenant and its officers, employees, agents, and invitees will comply fully with all of the rules and regulations of the Building and related facilities. Tenant is responsible for compliance by its officers, employees, agents, and invitees with all such rules and regulations. ARTICLE 10. INSPECTION BY CITY City and its officers, agents, employees, and representatives may enter any part of the premises at all reasonable hours for purposes of inspection, cleaning, maintenance, repairs, alterations, or additions as City considers necessary (but without any obligation to perform any of these functions except as stated in this lease), or to show the premises to prospective tenants, purchasers, or lenders. Tenant is not entitled to any abatement or reduction of rent by reason of the entry of City or any of its officers, agents, representatives, or employees under this article, nor will such an entry be considered an actual or constructive eviction. ARTICLE 11. MECHANIC S LIEN Tenant will not permit any mechanic s lien to be placed on the premises or on improvements on them. If a mechanic s lien is filed on the premises or on improvements on them, Tenant will promptly pay it. If default in payment of the lien continues for 20 days after City s written notice to Tenant, City may, at its option, pay the lien or any portion of it without 212

213 inquiring into its validity. Any amounts City pays to remove a mechanic s lien caused by Tenant to be filed against the premises or against improvements on the premises, including expenses and interest, are due from Tenant to City and must be repaid to City immediately on rendition of notice, together with interest at percent annually until repaid. ARTICLE 12. INDEMNITY Tenant s General Indemnity Tenant will indemnify and hold City harmless against any claims, demands, damages, costs, and expenses, including reasonable attorney s fees, for defending claims and demands arising from the conduct or management of Tenant s business on the premises or its use of the premises, or from any breach on Tenant s part of any conditions of this lease, or from any act or negligence of Tenant, its officers, agents, contractors, employees, subtenants, or invitees in or about the premises. In case of any action or proceeding brought against City by reason of any such claim, Tenant, on notice from City, will defend the action or proceeding by counsel acceptable to City. ARTICLE 13. ASSIGNMENT AND SUBLEASE Assignment and Subletting by Tenant Tenant has no right to assign this lease, nor any interest in it, nor to sublet the premises, or any part of them, or any right or privilege pertinent to the lease or the premises, and in any attempt to do so Tenant will remain liable for each obligation under this lease. ARTICLE 14. DEFAULT Tenant s Default The following events are considered events of default by Tenant under this lease: a. Tenant fails to pay any installment of rent due under this lease, or any other amounts owing by Tenant to City, and the failure continues for 10 days. b. Tenant fails to comply with any term or covenant of this lease, other than the payment of rent or any other sum of money owing by Tenant to City, and does not cure the failure within 20 days after written notice of the failure to Tenant. c. Tenant makes an assignment for the benefit of creditors. 213

214 d. Tenant deserts or vacates any substantial portion of the premises for five or more consecutive days. City s Remedies In the event of any default specified in 14.01, City may pursue one or more of the following remedies: a. City may terminate this lease, in which event Tenant must immediately surrender the premises to City. If Tenant fails to do so, City may, without prejudice to any other remedy that it may have for possession or arrearages in rent, enter on and take possession and expel or remove Tenant and any other person occupying the premises or any part of them, by any lawful means, without being liable for prosecution or any claim of damages for the entrance and expulsion or removal. Tenant will, on demand, pay City the amount of all loss and damage that City suffers by reason of the termination, whether through inability to relet the premises on satisfactory terms, if City elects to relet, or otherwise. b. City may enter on and take possession of the premises and expel or remove Tenant and any other person occupying the premises or any part of them, by any lawful means, without being liable for prosecution or any claim for damages for the entrance and expulsion or removal; relet the premises on the terms City considers advisable; and receive the rent for the reletting. Tenant will, on demand, pay City any deficiency that may arise by reason of reletting. c. City may enter the premises, by any lawful means (and City is expressly reserving and retaining the right to so reenter the premises), without being liable for prosecution or any claim for damages for the entry, and do whatever Tenant is obligated to do under the terms of this lease to correct the default. Tenant will, on demand, reimburse City for any expenses that City incurs in effecting compliance with Tenant s obligations under this lease in this manner, and Tenant further releases City from liability for any damages resulting to Tenant from such an action. No reentry or taking possession of the premises by City may be construed as an election on its part to terminate this lease, unless a written notice of the intention is given to Tenant. Notwithstanding any such reletting or reentry or taking possession, City may at any time thereafter terminate this lease for a previous default. The loss or damage that City may suffer in terminating this lease, or the deficiency from any reletting as provided above, includes the expense of repossession. City s Lien City has, at all times, a valid security interest to secure payment of all rentals and other sums of money becoming due under this lease from Tenant and to secure payment of 214

215 any damages or loss that City may suffer by reason of Tenant s breaching any covenant, agreement, or condition contained in this lease. The security interest covers all goods, wares, equipment, fixtures, furniture, and other personal property of Tenant that is now on the premises or placed on the premises at some later date, and all proceeds from them. This property may not be removed from the premises without City s consent until all arrearages in rent and all other sums of money then due City under this lease have been paid and discharged, and all the covenants, agreements, and conditions of this lease have been fully complied with and performed by Tenant. If Tenant is in default, City may, in addition to any other remedies provided in this lease or by law, after giving reasonable notice of the intent to take possession and giving an opportunity for a hearing on the issue, enter on the premises and take possession of any goods, wares, equipment, fixtures, furniture, and other personal property of Tenant situated on the premises, without liability for trespass or conversion, and sell the property at public or private sale, with or without having the property at the sale, after giving Tenant reasonable notice of the time and place of any public sale or of the time after which any private sale is to be made. City or its assigns may buy any items to be sold at such a sale unless they are prohibited from doing so by law. Unless otherwise provided by law, and without excluding any other manner of giving Tenant reasonable notice, the reasonable notice requirement is met if notice is given at least 10 days before the time of sale. The proceeds from any such disposition, less any expenses connected with taking possession, holding, and selling the property (including reasonable attorney s fees and other expenses), will be applied as a credit against the indebtedness secured by the security interest granted in this section. Any surplus will be paid to Tenant or as otherwise required by law, and Tenant will pay any deficiencies immediately. When City requests, Tenant will execute and deliver to City a financing statement in sufficient form to perfect City s security interest in the property and proceeds under the provisions of the Business and Commerce Code in force in Texas. The statutory lien for rent is not waived as the security interest granted in this article supplements that lien. Cumulative Remedies City s or Tenant s pursuing any remedy provided in this lease will not preclude pursuing any other remedy provided in this lease. Either party s pursuing any remedy provided in this lease or by law will not constitute a forfeiture or waiver of any damages accruing to either party by reason of violating any term or covenant of this lease. Nor will City s pursuing any remedies provided in this lease constitute a waiver or forfeiture of any rent due under this lease. Waiver of Default Either party s waiving any default or violation or breach of any term or covenant of this lease does not waive any other violation or breach of any term or covenant of the lease. 215

216 Nor does either party s forbearing to enforce one or more of the remedies provided in this lease or by law on a default waive the default. City s accepting rent following default under this lease does not waive the default. Surrender of Premises No act done by City or its agents during the lease term may be considered an acceptance of a surrender of the premises, and no agreement to accept a surrender of the premises is valid unless in writing and subscribed by City. LESSOR: CITY OF DEL RIO Henry Arredondo, City Manager LESSEE: AGUILA EXPRESS Jorge Sierra, General Manager 216

217 City Council Regular 11. n. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Janice Pokrant, City Planner, Engineering Department Information O: An Ordinance in Accordance with State and Local Laws Providing for the Approval of a Certain Plat Designated as Buena Vista Hills Unit 10 Del Rio, Texas. - Janice Pokrant, City Planner SUMMARY: Discussion and possible action of the Buena Vista Hills Unit 10 Subdivision Plat. BACKGROUND: Applicant: Kenneth Dirksen, P.E., Representing, David Breeden, President Indian Hills Properties, LTD Requested Action: Approval of Final Plat #16-03 for the Buena Vista Hills Unit No. 10 Subdivision Location: The property is located off of White Dove and connects to a plat that was approved last year which connects to Amistad Blvd. Size of Development: 17 lots over 5.51 acres, having.32 acres per lot and 1,106.5 linear feet of street, water and sewer lines Flood Plain Clearance: This proposed subdivision is not located in the FEMA designate flood prone area. DISCUSSION: The final plat has been reviewed by Engineering, Public Works, Water, Waste Water, Streets, Fire and Planning and Zoning Departments who have found it to comply with all local and state regulations. PROS: Approving this final plat will allow for the developer to start selling the lots within the subdivision. CONS: There is not a "con" associated with this agenda item. RECOMMENDATION: Staff recommends approval of the request for a final plat for the Buena Vista Hills Unit No. 10 Subdivision. FISCAL IMPACT: Fiscal Impact There is no fiscal impact associated with this agenda item. O Final Plat Staff Checklist Buena Vista Hills Unit Checklist Buena Vista Hills Unit 10 Plat Attachments 217

218 ORDINANCE NO. O: AN ORDINANCE IN ACCORDANCE WITH STATE AND LOCAL LAWS PROVIDING FOR THE APPROVAL OF A CERTAIN PLAT DESIGNATED AS BUENA VISTA HILLS UNIT 10 DEL RIO, TEXAS. WHEREAS, this replat is located within the City of Del Rio s city limits and as such requires the final approval of the Del Rio City Council; and WHEREAS, Chapter 212 of the Local Government Code requires that the Del Rio City Council grant its approval of a plat that has fully complied with all applicable state and local regulations governing that platting and subdividing of real property; and WHEREAS, Planning and Zoning Commission have heretofore has recommended approval of that certain plat designated as Buena Vista Hills Unit 10 in Del Rio, Texas; and WHEREAS, the Del Rio City Council has found and determined that the aforesaid replat fully complies with all applicable regulations of the City of Del Rio, Texas. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS, THAT: Section 1. Approval The above described replat approval designated as Buena Vista Hills Unit 10 in Del Rio, Texas. Section 2. Certification and Endorsement Mayor, Robert Garza, is hereby authorized and directed to endorse the approval of the Del Rio City Council on the foresaid plat by the execution of an appropriate certification duly attested by the City Secretary. PASSED AND APPROVED on this 24 th day of May ROBERT GARZA Mayor 218

219 ATTEST: SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO City Manager SUZANNE WEST City Attorney 219

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226 ORDINANCE NO. O:2015- AN ORDINANCE IN ACCORDANCE WITH STATE AND LOCAL LAWS PROVIDING FOR THE APPROVAL OF A CERTAIN PLAT DESIGNATED AS BUENA VISTA HILLS UNIT 10 DEL RIO, TEXAS. WHEREAS, this replat is located within the City of Del Rio s city limits and as such requires the final approval of the Del Rio City Council; and WHEREAS, Chapter 212 of the Local Government Code requires that the Del Rio City Council grant its approval of a plat that has fully complied with all applicable state and local regulations governing that platting and subdividing of real property; and WHEREAS, Planning and Zoning Commission have heretofore has recommended approval of that certain plat designated as Buena Vista Hills Unit 10 in Del Rio, Texas; and WHEREAS, the Del Rio City Council has found and determined that the aforesaid replat fully complies with all applicable regulations of the City of Del Rio, Texas. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS, THAT: Section 1. Approval The above described replat approval designated as Buena Vista Hills Unit 10 in Del Rio, Texas. Section 2. Certification and Endorsement Mayor, Robert Garza, is hereby authorized and directed to endorse the approval of the Del Rio City Council on the foresaid plat by the execution of an appropriate certification duly attested by the City Secretary. PASSED AND APPROVED on this 24 th day of May ROBERT GARZA Mayor 226

227 ATTEST: SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO City Manager SUZANNE J. WEST City Attorney 227

228 City Council Regular 12. a. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Janice Pokrant, City Planner, Engineering Department Information R: A Resolution in Accordance with State Law and the Del Rio Code of Ordinances Providing for the Appointment of the Following Positions for the Policy Committee for the City of Del Rio s Subdivision and Land Development Ordinances Revisions - Janice Pokrant, City Planner SUMMARY: Discussion and possible action of a resolution to appoint members to the Policy Committee for the review of various land development ordinances. BACKGROUND: In 2008 the Mayor and Council commissioned the review of various land development ordinances and regulations. It was in this review they created a Policy Committee that would review the ordinances and proposed changes brought forward from Technical Committee that was made up of City, Laughlin and TxDOT staff. The Policy committee would then forward their recommendations to the Planning and Zoning Commission for review and then ultimately to Mayor and City Council for approval. The ordinances that were reviewed and approved during this process were the Landscape Ordinance, the parking Ordinance and Sign Ordinance. Due to limited staff resources and time there were some ordinances and regulations that are still pending final review. The following individuals were appointed to represent their corresponding agencies on the Policy Committee: Councilman Sotelo, City Council Commissioner Ramon, Val Verde Commissioner s Court Del Rio City Manager Kurt Lemp, Planning and Zoning Commission Tony Sotelo, Board of Adjustment Adrian Falcon, Val Verde Historical Commission George Salinas, Val Verde Board of Realtors Association Ron Burton, Neighborhood or civic representative Bill Nixon, Chamber of Commerce Sandra Fuentes, Border Organization Laughlin AFB representative Superintendent, or his designee, San Felipe Del Rio CISD Johnny Ruiz, Middle Rio Grande Council of Government Planning Department Dr. Mark Underwood, Southwest Texas Junior College Dr. Stitts, Sul Ross State University Antonio Perea, TxDOT Lewis Owens, home builder or developer Justin Burk, local rancher or agricultural producer Alan Cox, National Parks Service William Conner, International Boundary Commission Roger Cerny, Val Verde County Blake Lewis, Southwest Abstract DISCUSSION: 228

229 City staff is requesting the Mayor and Council reinstate the Policy Committee with new appointees selected by the Mayor and Council that will be responsible for reviewing and commenting on the type and extent of the new regulations and the policies that apply to the subdivision and land development ordinances. It is recommended that there be two members appointed to this committee by each of the City Council members and Mayor. Once appointed, staff will get with the new members to determine a meeting date and location. PROS: Adopting this resolution will allow for a committee to review the proposed regulations prior to the City Council approval. This should help ensure there is community support for the proposed regulations. CONS: Having the regulations reviewed by this committee will take some additional time for the proposed changes to be brought before the City Council for adoption. RECOMMENDATION: Staff recommends approval of the resolution for Mayor and Council to each appoint two new members to the Policy Committee for the review of various land development ordinances. FISCAL IMPACT: Fiscal Impact There is no fiscal impact associated with this agenda item. R Policy Committe Meeting Attachments 229

230 RESOLUTION NO. R: A RESOLUTION IN ACCORDANCE WITH STATE LAW AND THE DEL RIO CODE OF ORDINANCES PROVIDING FOR THE APPOINTMENT OF THE FOLLOWING POSITIONS FOR THE POLICY COMMITTEE FOR THE CITY OF DEL RIO S SUBDIVISION AND LAND DEVELOPMENT ORDINANCES REVISIONS WHEREAS, the City of Del Rio believes responsible planning, zoning, and land development is important to the growth of the city; and WHEREAS, the city is working on the revision of the zoning and land development ordinances; and WHEREAS, the Policy Committee will serve as a tool in this ordinance revision process by reviewing and commenting on the types and extent of the new regulations and the policies that apply to the subdivision and land development ordinances; and WHEREAS, it is important the Mayor and City Council appoint the following individuals to this committee to ensure the revised ordinances that are brought forward for Mayor and City Council approval have been thoroughly vetted and are in the best interest of the City of Del Rio and its citizens. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DEL RIO, TEXAS, THAT: The following individuals are appointed to the City of Del Rio s Policy Committee which was created to review and comment on the types and extent of the new regulations during the revision of the land development ordinance revision process. Mayor Garza s Appointees and Council Person Salgado s Appointees and Council Person Garza s Appointees and Council Person Contreras s Appointees and Council Person Luna s Appointees and Council Person Sheedy s Appointees and Council Person Elizalde s Appointees and PASSED AND APPROVED on this 24 th day of May

231 ROBERT GARZA Mayor ATTEST: SUSAN CORP City Secretary REVIEWED FOR ADMINISTRATION: REVIEWED AS TO FORM AND LEGALITY: HENRY ARREDONDO SUZANNE J. WEST City Manager City Attorney 231

232 City Council Regular 13. a. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Amelia Moreno, Executive Secretary, Administration Information Update on the City of Del Rio's 4th of July Celebration - Eva Escobar, Civic Center Director SUMMARY: Discussion and possible action on the expenditures for the Fourth of July two day event- Eva Escobar Civic Center Director BACKGROUND: City of Del Rio hosts a Fourth of July Celebration every year. DISCUSSION: The proposed plan is to have a two day celebration for Fourth of July. PROS: The actual expenses are less than the projected expenses. A two day event will attract more people to attend the celebration. CONS: Fiscal impact on the City of Del Rio. RECOMMENDATION: Approve the expenditures for the Fourth of July two day event. FISCAL IMPACT:. Fiscal Impact No file(s) attached. Attachments 232

233 City Council Regular 13. b. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Esmeralda Meza, Community Services Director, COMMUNITY SERVICE Information Update on Boys and Girls Club - Esmeralda Meza, Community Services Director SUMMARY: Follow up as requested by Council at the May 12, 2016 council meeting to increase funds to the Boys and Girls Club. BACKGROUND: The City of Del Rio has been awarding $10,000 and $5,000 In-Kind annually to the Boys and Girls Club. DISCUSSION: An increase in funds will not open up the program to more participants. The program is capped at 200 participants due to maximum allowable occupancy to the facility. However an increase in funds could be beneficial to offset new costs of meals for two to four weeks that will be absorbed by the Boys and Girls Club and increase field trips available to the participants and lower the overall program cost to participants. PROS: Offset new costs of meals for two to four weeks that will be absorbed by the Boys and Girls Club. Increase field trips. Lower the overall program cost to participants. CONS: Maximum allowed participants is 200 due to maximum occupancy. Increase funding. RECOMMENDATION: Staff recommends discussion of options. FISCAL IMPACT: Fiscal Impact The fiscal impact to the City of Del Rio is an additional $10,000 from the General Fund. No file(s) attached. Attachments 233

234 City Council Regular 13. c. Meeting Date: 05/24/2016 Submitted By: SUBJECT: Aida Garcia, Administrative Assistant, Legal Department Information Discuss Continued Approval of Engagement of Denton, Navarro, Rocha, Bernal, Hyde & Zech Law Firm for Limited Special Counsel for City Attorney Services - Suzanne West, City Attorney SUMMARY: Legal Department is requesting that Council approve signature of an agreement for special counsel services with the same language that has been used previously. The amount on the past letter was capped at $15,000. This is not a request for additional funds. The budget currently holds $32,611. BACKGROUND: The legal services budget is set every year for use by the City Attorney for legal advice in addition to what comes out of the legal department. A couple of years ago, the council started the practice of portioning out the funds with multiple capped agreements. The litigation agreement for the condemnation is separate from the special counsel agreement that is being discussed here. Usually, the funds under this agreement are used for the following reasons: a specific area of expertise that outside counsel holds, time constraints require use of outside counsel for speed, use of attorneys in other cities when Del Rio has an issue in that city, or to get an additional opinion for use by the decision makers when the legal department has already answered but another perspective might be helpful. DISCUSSION: Of the $15,000 approved in October 2015, the legal department has used $13,245. The two biggest expenditures have been for an Austin attorney (through this firm) to assist administration with legislative discussions at the capitol regarding Del Rio's capability to become a REP and for police and fire issues. Because police and fire are the two departments with the most employees, the vast majority of their questions are employment law related. The remaining is pretty evenly distributed amongst all departments from Human Resources, Civil Service, Bridge, Planning and Permitting, the CBA, Airport, Economic Development, Utilities Commission and Public Works. The benefit of the special counsel agreement is that the City can receive additional legal assistance through this agreement for much less than the cost of an additional full time attorney. Realistically, even with another in-house attorney, instances would arise when additional expertise is needed. Usually questions are answered on a portion of a project issue by because we already have the agreement in place, rather than having to funnel out an entire legal opinion from beginning to end with a cost proposal for services up front. This saves money and enables staff to become more closely involved in solving the problems that led to the legal question. The City Attorney is asking that you approve another special counsel agreement, with the same rates for legal services as previously approved. You could either cap this one at $15,000 or leave it open ended with the understanding that the costs cannot exceed the established budget--which currently holds around $30,000. PROS: 234

235 Approving this agreement allows the City to receive advice from multiple attorneys at one firm, all with different expertise amongst the vast areas of municipal law. This process allows legal advice in the most economical manner. CONS: There are no cons associated with this item. The funds are already appropriated in the budget for legal services. RECOMMENDATION: City Attorney recommends that council approve the special counsel agreement with DNRBH&Z. FISCAL IMPACT: Fiscal Impact No additional fiscal impact. No unappropriated funds or budget transfers are requested. Current budget contains $32,611. No file(s) attached. Attachments 235

236 City Council Regular 13. c. Meeting Date: 05/24/2016 Subject Information Presentation and discussion of the formal process of establishing a Type A Economic Development Corporation (EDC). Attachments PowerPoint Presentation on EDC Creation Process EDC Volunteer Board Member Job Description Application for Board of Directors 236

237 City of Del Rio: Planning for a Dynamic Future 237

238 The Road to Creating an EDC June 16, 2015: First day on the job July 28, 2015: Presentation on proposed Eco Dev Corp. (EDC) August 11, 2015: Updated presentation on proposed EDC Model August 24, 2015: Brought forth Ordinance : Ordering a Special Election for the Purposes of Reallocating a Portion of the Total Sales and use Tax for an Eco. Dev. Type A Corporation and Making Provisions for the Holding of the Election on November 3, Tabled until May 7, 2016 Election November 24, 2015: Presentation from Myra Garcia on City of Del Rio Comprehensive Eco. Dev. Strateg Proposal January 12, 2016: Brought forth Ordinance : An Ordinance to Call a Special Election in May 201 throughout the City of Del Rio for the Adoption of a Sales and Use Tax for the Promotion and Development of New and Expanded Business Enterprises Passed Unanimously 7-0 May 7, 2016: Voters Approved Proposition 1 Allowing for the City to Begin the Formation of a Type A EDC 238

239 Building for a Better Tomorrow Creation Process: Board of Directors Selection Resolution Approving the Formation of the EDC File a Certificate of Formation with State Secretary We must meet certain guidelines under Sect of the Local Government Code. (We are currently working on this.) Bylaws Del Rio Economic Development Corporation meets to adopt bylaws, elect officers DREDC established 239

240 Choosing the Board of Directors for a Type A EDC At least 5 members (no statutory criteria for selection) Members are not required to be a city resident or a property owner. Appointed by a majority vote of City Council at an open meeting. Terms not to exceed 6 years, but can be shorter and staggered. Can be removed by City Council at any time without cause. 240

241 Contents of Certificate of Formation CONTENTS OF CERTIFICATE OF FORMATION. The icate of formation of a corporation must state: the name of the corporation; that the corporation is a nonprofit corporation; the duration of the corporation, which may be perpetual; the specific purpose for which the corporation is organized and may ue bonds on behalf of the unit; that the corporation has no members and is a nonstock corporation; 241

242 Contents of Certificate of Formation (Continued) (6) any provision consistent with law for the regulation of the corporation's internal affairs, including any provision required or permitted by this subtitle to be stated in the bylaws; (7) the street address of the corporation's initial registered office and the name of the corporation's initial registered agent at that address; (8) the number of directors of the initial board of directors and the name and address of each initial director; (9) the name and street address of each organizer; and (10) that the unit has: (A) by resolution specifically authorized the corporation to act on the unit's behalf to further the public purpose stated in the resolution and the certificate of formation; and (B) approved the certificate of formation. 242

243 Staff Recommendations: Begin process of selecting board members by using a job description and application process Post job description and application on City Website and/or in local media sources Find business-savvy leaders in or around the community with extensive experience analyzing financial data. For simplicity purposes, name the EDC: Del Rio Economic Development Corporation 243

244 Del Rio Economic Development Corporation Volunteer Board Member Job Description TITLE: Member, Del Rio Economic Development Corporation Board of Directors REPORTS TO: Board President, Del Rio Economic Development Corporation ROLE: Serves as a voting member of the board of directors of the Del Rio Economic Development Corporation (EDC), developing policies, procedures and regulations, monitoring financial performance and the Del Rio EDC s economic development programs. TERM: Terms shall be for six years with members eligible to serve two consecutive terms. TIME EXPECTATIONS: Attend all meetings of the board, called at the discretion of the President or Secretary when necessary actions must be taken. Meetings normally are held on the day of each month at. If appointed, serve on special committees named by the President. Attend scheduled economic development retreats, planning sessions, workshops or other scheduled activities. Attend, support and participate in any other special activities in which the Board has a significant role. Serve as a representative of the Del Rio EDC at the site visits by economic development prospects when called on to do so. OBLIGATIONS: Fully understand and support the purpose and goals of the Del Rio EDC. Discharge the duties of a director as outlined in the bylaws of the Del Rio EDC. Participate in the establishment of policies for Del Rio EDC. Monitor the Del Rio EDC s financial performance. Help develop and monitor short- and long-range planning and goals. Represent the Del Rio EDC to the public and private sector, where needed, and serve as an advocate for the organization. Bring personal/professional expertise and that of others to support the organization. PREFERRED QUALIFICATIONS: Serve, or have served, as Chief Executive Officer of a company; or Serve, or have served, in a position of executive management of a company; or Serve, or have served, in a professional capacity; or Have experience equivalent to any of the above qualifications. 244

245 APPLICATION FOR BOARD OF DIRECTORS FOR DEL RIO ECONOMIC DEVELOPMENT CORPORATION Type or print using black or blue ink. This application must be completed in full. Please attach a résumé or list of credentials to satisfy the last requirement of this application. Full Name: Last First Middle Present Address: Social Security Number: Telephone Number: - - Number & Street City State Zip Home: ( ) - Alternate: ( ) - Are you related to any current employee or elected official for the City of Del Rio? Yes No If Yes, indicate name and relationship: **On a separate sheet, please provide a list of credentials that you believe qualifies you to be an excellent candidate for this position. 245

246 City Council Regular 13. d. Meeting Date: 05/24/2016 Subject Information Personnel Matters Relating to the Performance Evaluation of Henry Arredondo, City Manager, Including Review of Salary Information, and Salary Increase as Appropriate - Mary Canales, Human Resources Director No file(s) attached. Attachments 246

247 City Council Regular 13. e. Meeting Date: 05/24/2016 Submitted By: Amelia Moreno, Executive Secretary Information Subject Selection of a Mayor Pro-Tem - Robert Garza, Mayor No file(s) attached. Attachments 247

248 City Council Regular 13. f. Meeting Date: 05/24/2016 Subject Information Discussion and Possible Action on a Potential Internal Review/External Audit of City Secretary Office - Rowland Garza, Councilman No file(s) attached. Attachments 248

249 City Council Regular 13. g. Meeting Date: 05/24/2016 Information Subject Update on Street Paving in relations to Kings Way, Amistad Blvd. and Garza Street. - Rowland Garza, Councilman Streets Costs Attachments 249

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268 City Council Regular 13. h. Meeting Date: 05/24/2016 Subject Information Discussion and Possible Action on Feasibility to Construct a Second Facility/Gymnasium for recreational activities such as Basketball and other sports for the City of Del Rio - Rowland Garza, Councilman No file(s) attached. Attachments 268

269 City Council Regular 13. i. Meeting Date: 05/24/2016 Subject Information Discussion and Possible Action on Confirmation of the Appointment of Department Heads by City Council as required by City Charter - John Sheedy, Councilman No file(s) attached. Attachments 269

270 City Council Regular 14. a. Meeting Date: 05/24/2016 Submitted For: Submitted By: Subject Suzanne West, Legal Department Aida Garcia, Administrative Assistant Information Attorney/Client Consultation to Discuss Pending Litigation styled City of Del Rio vs. C. Pat Ellis, Trustee, filed in the 83rd Judicial District Court of Val Verde County, Texas in Cause No Suzanne West, City Attorney No file(s) attached. Attachments 270

271 City Council Regular 14. b. Meeting Date: 05/24/2016 Subject Information Discussion and Possible Action by the City of Del Rio, Texas on the Possibility of Purchasing Additional Abutting Acreage, including Existing Structures, for Future Expansion at the San Felipe Springs Golf Course - Henry Arredondo, City Manager SFSGC-ACREAGE MAP Attachments 271

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