HomeMy WebLinkAboutPR 18824: 20 YEAR LEASE AGREEMENT, HOMELAND SECURITY interoffice
MEMMANDIJM
To: Mayor, City Council, and City Manager
From: Jimmy Dike, Director of Pleasure Island
Date: February 16, 2015
Subject: P. R. No. 18824; Council Meeting February 17, 2015
Attached is P. R. 18824, wherein the United States of America,
acting by and through a duly authorized official of the Department
of Homeland Security, United States Coast Guard, is requesting a
lease for 160 square feet of ground space to replace a damaged
navigation light, currently located on Pleasure Island.
The existing ATON light is located on the edge of a cliff and
became unstable and failed after erosion. These lights, in
addition to Aids to Navigation, protect and create public safety.
I was sent an email by Paul R. Hewitt with the Coast Guard at
the end of October, 2014 regarding the replacement of the. ATON
light. Paul Brown with the Planning Department also reviewed the
request, and no problems were found in relocating the navigation
light. The Legal Department has also reviewed the documentation;
however, they cannot move forward until the Pleasure Island
Advisory Commission has reviewed the request.
I have made several attempts to have the Pleasure Island
Advisory Commission review this, but have not been able to secure a
quorum. The Coast Guard is under a deadline and must havethis
navigation light replaced. The proposed resolution states that the
Pleasure Island Advisory Board will review and approve this matter,
prior to execution of the lease.
No funds will be exchanged between the parties, and it will be
used to protect and create public safety.
.p18824.memo
P.R. No. 18824
2/12/15 gt
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ENTER INTO A TWENTY (20) YEAR LEASE AGREEMENT
BETWEEN THE CITY OF PORT ARTHUR AND UNITED STATES
OF AMERICA, ACTING BY AND THROUGH A DULY
AUTHORIZED OFFICIAL OF THE DEPARTMENT OF HOMELAND
SECURITY, UNITED STATES COAST GUARD, FOR 160
SQUARE FEET OF GROUND SPACE TO REPLACE A DAMAGED
NAVIGATION LIGHT, LOCATED ON PLEASURE ISLAND
WHEREAS, the City of Port Arthur is the owner of a 160
square feet of ground space located on Pleasure Island; and
WHEREAS, the Coast Guard is looking to repair an
existing AToN light located on the edge of a cliff that
became unstable and failed after erosion, these lights in
addition to Aids to Navigation, protect and create public
safety (see Exhibit "A") ; and
WHEREAS, it is deemed in the best interest of the City
of Port Arthur to enter into a twenty (20) year lease
agreement with the United States of America, acting by and
through a duly authorized official of the Department of
Homeland Security, United States Coast Guard, in
substantially the same form as attached hereto as Exhibit
"B" .
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF PORT ARTHUR:
Section 1 . That the facts and opinions in the
preamble are true and correct .
Section 2 . That the City Manager is herein
authorized to enter into a twenty (20) year lease agreement
with the United States of America, acting by and through a
duly authorized official of the Department of Homeland
Security, United States Coast Guard, in substantially the
same form as Exhibit "B" .
Section 3 . That the Pleasure Island Advisory Board
will review and approve this matter, prior to execution of
the lease attached hereto as Exhibit "B. "
Section 4 . That a copy of the caption of this
Resolution be spread upon the Minutes of the City Council .
READ, ADOPTED, AND APPROVED, this day of
, 2015, AD, at a Regular Meeting of the City
Council of the City of Port Arthur, Texas by the following
vote: AYES:
Mayor: ,
Councilmembers : ,
•
NOES : .
Deloris "Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
/41/// .
al Ti en City Attorney
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
EXHIBIT "A"
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EXHIBIT "B"
STANDARD FORM 2
FEBRUARY 1965 U.S. GOVERNMENT
EDITION
GENERAL SERVICES LEASE FOR REAL PROPERTY
ADMINISTRATION
FPR(41 CFR) 1-16.601
DATE OF LEASE January 26, 2015 LEASE No. HSCG82-15-1-0038
Site name: Sabine—Neches Kilo Rear Range Light
THIS LEASE is made and entered into by and between City of Port Arthur(hereinafter called the "Lessor"),whose
address is P.O. Box 1089 Port Arthur, Texas 77640, and whose interest in the property hereinafter described is that of
a leasehold, and by the authority of 14 U.S.C. § 672,the UNITED STATES OF AMERICA, acting by and through a
duly authorized official of the Department of Homeland Security, United States Coast Guard(hereinafter called the
"Government")
WITNESSETH: The parties, hereto for the consideration hereinafter mentioned, covenant and agree as follows:
1. PREMISES. The Lessor hereby leases to the Government the following described premises, hereinafter referred to as the
"Premises".
160 square feet of ground space for the maintenance, operation and/or replacement of an aid to navigation
(AToN) structure consisting of the equipment as shown on Exhibit A , which also depicts the current and
proposed relocation site, incorporated by reference herein. The Premises shall be used for the placement
and operation of Government equipment herein (the "Equipment").
2. TO HAVE AND TO HOLD the said premises with their appurtenances for the term beginning on March 1, 2015 through
February 28, 2035 subject to termination and renewal rights as may be hereinafter set forth. Subject to the availability of funds,
this Lease may, at the option of the Government, be renewed annually through February 28, 2035. The Government's option shall
deemed exercised and the lease renewed each year for one (1) year to a maximum time of twenty (20) years provided notice be
given in writing to the Lessor at least thirty(30)days before the end of the original lease term; all other terms and conditions of this
lease shall remain the same during the renewal term unless otherwise agreed to by all the parties with a signed modification to
this lease.
3. CONSIDERATION. The consideration for this lease shall be the operation and maintenance of this property to be used by
Aids to Navigation (ATON) equipment for the benefit of the general public in accordance with the terms and conditions hereinafter
set forth.
4. TERMINATION. The Government shall have the option to terminate this Lease, without cause, at any time by giving at least
thirty (30) -days notice in writing to the Lessor and no rental shall accrue after the effective date of termination. Said notice shall
be executed by the Government's Contracting Officer and sent by certified mail or other comparable service. Said notice shall be
computed commencing with the day after the date of mailing.
5. NOTICE. This lease will continue with the same terms and conditions, unless and until the Government shall give notice of
termination in accordance with paragraph 6, provided that adequate appropriations are available from year to year for payment of
rentals, and provided further that this lease shall in no event extend beyond February 28, 2035. A Supplemental Agreement will
be utilized to make changes/adjustments to this lease.
6. Name of Lessor: City of Port Arthur Telephone Number: (409)983-8132
7. ELECTRONIC FUNDS TRANSFER. The Government will make payments under this lease by electronic funds transfer(EFT).
After award, but no later than 30 days before the first payment, the Lessor shall designate a financial institution for receipt of EFT
payments, and shall submit this designation via internet by completing the EFT form at
https://www.fincen.uscg.mil/secure/enrollment_form.htm in accordance with paragraph 4.
a. In the event the Lessor, during the performance of this contract, elects to designate a different financial institution for the
receipt of any payment made using EFT procedures, notification of such change and the required information specified in 4, above
must be received by the appropriate Government official no later than 30 days prior to the date such change is to become
effective.
b. The documents furnishing the information required in this clause must be dated and contain the signature, title, and
telephone number of the Lessor or an authorized representative designated by the Lessor, as well as the Lessor's name and lease
number.
Lease Site Number: HSCG82-15-1-0038
Lease Site Name: Sabine—Neches Kilo Rear Range Light
c. Lessor's failure to properly designate a financial institution or to provide appropriate payee bank account information may
delay payments of amounts otherwise properly due.
d. Lessor is responsible for keeping their Systems for Awards Management (SAM) current. In the event that the Lessor's
SAM expires, the Government will cease making payments under this Lease until the Lessor renews the SAM registration.
This will apply to all payments that the Government is required to make under this Lease, and no interest shall be accrue
as the result of such non-payment. Lessor may access SAM registration electronically at www.sam.gov.
8. PROMPT PAYMENT (SEP 1999). The Government will make payments under the terms and conditions specified in this
clause. Payment shall be considered as being made on the day a check is dated or an electronic funds transfer is made. All days
referred to in this clause are calendar days, unless otherwise specified.
9. INTEREST PENALTY. An interest penalty shall be paid automatically by the Government, without request from the Lessor, if
payment is not made by the due date and Lessor has an electronic funds transfer (EFT) on file. The interest penalty shall be at
the rate established by the Secretary of the Treasury under Section 12 of the Contract Disputes Act of 1978 (41 U.S.C. §611)that
is in effect on the day after the due date. This rate is referred to as the "Renegotiation Board Interest Rate,"and it is published in
the Federal Register semiannually on or about January 1 and July 1. The interest penalty shall accrue daily on the payment
amount approved by the Government and be compounded in 30-day increments inclusive from the first day after the due date
through the payment date. Interest penalties will not continue to accrue after the filing of a claim for such penalties under the
Disputes clause, or for more than 1 year. Interest penalties of less than $1.00 need not be paid. Interest penalties are not
required on payment delays due to disagreement between the Government and Contractor over the payment amount or other
issues involving contract compliance or on amounts temporarily withheld or retained in accordance with the terms of the contract.
Claims involving disputes, and any interest that may be payable, will be resolved in accordance with Disputes clause 52.223-1.
(see para 27)
10. COMPLIANCE WITH APPLICABLE LAW. The Lessor shall comply with all Federal, state and local laws applicable to the
Lessor as owner or lessor, or both, of the Premises, including, without limitation, laws applicable to the construction, ownership,
alteration or operation thereof, and will obtain all necessary permits, licenses and similar items at Lessor's expense. The
Government will comply with all Federal, state and local laws applicable to and enforceable against it as a tenant under this lease;
provided that nothing in this lease shall be construed as a waiver of any sovereign immunity of the Government. This lease shall
be governed by Federal I aw.
11. MAILING. Mailing refers to Certified Mail with a return receipt and the date of acceptance being the start date.
12. CHANGE OF OWNERSHIP NOTIFICATION. Lessor will notify Government within thirty (30) days of any transfer of
ownership of the described property; or change in payment mailing address.
13. SUCCESSORS BOUND. The Lease shall bind, and inure to the benefit of, the parties and their respective heirs, executors,
administrators, and successors.
14. INDEMNIFICATION. The Government, in the manner and to the extent provided by the Federal Tort Claims Act (28 U.S.C. §
2671-2680), as amended), shall be liable for claims for damage or loss of property, personal injury or death caused by the acts or
omissions of the Government, its officers, employees and agents in the use of the leased premises.
15. INGRESS/EGRESS. Lessor hereby grants to the Government, its contractors and other duly assigned personnel, the right of
ingress and egress(both vehicular and pedestrian) necessary or convenient for the installation, use, maintenance, repair,
operation, and replacement of Government-owned equipment across Lessor's property.
16. GOVERNMENT INSPECTION. The Government reserves the right, at any time after the lease is signed and during the term
of the lease, to inspect the leased premises and all other areas to which access is necessary to ensure a safe and healthy work
environment for the Government tenants and the Lessor's performance under this lease.
17. PERFORMANCE FAILURE. If Lessor fails to cure or remedy any failure to perform any service, to provide any item, or meet
any requirement of the lease within thirty (30) days of Governments written notice to Lessor, Government may deduct any cost
incurred for the service or item, including administrative costs, from rental payments or Government may perform the service,
provide the item, or meet the requirement, either directly or through a contract.
18. DESTRUCTION OF LEASE SPACE. If the leased area is partially or totally destroyed or damaged by fire or other casualty so
that the leased space is untenantable, as a result of direct actions of the Lessor, as determined by the Government, the
Government will provide the Lessor a maximum of one hundred and twenty (120) days in securing financing toward rebuilding a
new tower with any replacement equipment due, subject to tenantable condition as determined by the Government. During this
period, no lease charge is to be incurred by the Government. Any such payments, by the Government, to the Lessor will be
promptly returned to the agency listed in paragraph 4. The Government may terminate the lease upon 15 calendar days written
notice to the Lessor and no further rental will be due if the new tower and systems are not fully functional by the end of the one
hundred and twenty (120) day period. If, so terminated as a result of fire, no rent will accrue to the Lessor after such partial
destruction or damage, and if not so terminated, the rent will be reduced proportionally by the utilization of a Supplemental Lease
Lease Site Number: HSCG82-15-1-0038
Lease Site Name: Sabine—Neches Kilo Rear Range Light
Agreement hereto effective from the date of such destruction or damage. Nothing in this lease shall be construed as relieving
Lessor from liability for damage to or destruction of property of the United States of America caused by the willful or negligent act
or omission of Lessor..
19. ANTI-DEFICIENCY ACT (31 U.S.C. § 1341, as amended). Nothing in this lease shall constitute an obligation of funds of the
United States in advance of an appropriation thereof.
20. INSURANCE. The Government is a self-insured entity.
21. TAXES AND ASSESSMENTS. The Government is not responsible or liable for any real property or personal property taxes,
personal taxes, nor assessments levied or assessed upon or against the leased premises.
22. CONDITIONS OF USE. The Government is responsible for meeting all applicable Federal, State and local safety and other
codes, and for obtaining all applicable Federal, State, and local permits, licenses, or other authorization required for operation of
its equipment. .
23. EQUIPMENT INSTALLATIONS, MAINTENANCE, INTERFERENCE, AND REMOVAL. The Government is solely responsible
for all costs connected with the installation and maintenance of all Government-owned equipment located on the Leased
premises. Installation and operation of Government equipment shall be done according to applicable government codes and
accepted industry standards.
24. WARRANTY. Lessor makes no warranty, express or implied, as to the suitability of the leased premises for the Government's
intended use or purpose and expressly disclaims any such warranty.
25. SUBLETTING/ASSIGNMENT. Government may not sublet or assign the leased premises.
26. SEVERABILITY. If any term or provision of this lease is held invalid or unenforceable,the remainder of this lease shall not be
affected thereby and each term and/or provision hereof shall be valid and enforced to the fullest extent permitted by law.
27. DISPUTES (DEC 1998). This contract is subject to the Contract Disputes Act of 1978, as amended (41 U.S.C. § 601-613).
Except as provided in the Act, all disputes arising under or relating to this contract shall be resolved under this clause.
a. "Claim", as used in this clause, means a written demand or written assertion by one of the contracting parties seeking, as a
matter of right, the payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising
under or relating to this contract. A claim arising under a contract, unlike a claim relating to that contract, is a claim that can be
resolved under a contract clause that provides for the relief sought by the claimant. However, a written demand or written
assertion by the Contractor seeking the payment of money exceeding $100,000 is not a claim under the Act until certified as
required by subparagraph (b)(2) of this clause. A voucher, invoice, or other routine request for payment that is not in dispute when
submitted is not a claim under the Act. The submission may be converted to a claim under the Act, by complying with the
submission and certification requirements of this clause, if it is disputed either as to liability or amount or is not acted upon in a
reasonable time.
b. (1)A claim by the Contractor shall be made in writing and, unless otherwise stated in this contract, submitted within 6 years
after accrual of the claim to the Contracting Officer for a written decision. A claim by the Government against the Contractor shall
be subject to a written decision by the Contracting Officer.
Contracting Officer.
(2) (i) The Contractor shall provide the certification specified in paragraph (d)(2)(iii) of this clause when submitting any claim
exceeding$100,000.
(ii)The certification requirement does not apply to issues in controversy that have not been submitted as all or part of a claim.
(iii) The certification shall state as follows: "I certify that the claim is made in good faith; that the supporting data are accurate
and complete to the best of my knowledge and belief; that the amount requested accurately reflects the contract adjustment for
which the Contractor believes the Government is liable; and that I am duly authorized to certify the claim on behalf of the
Contractor."
(3)The certification may be executed by any person duly authorized to bind the Contractor with respect to the claim.
c. For Contractor claims of$100,000 or less, the Contracting Officer must, if requested in writing by the Contractor, render a
decision within 60 days of the request. For Contractor-certified claims over $100,000, the Contracting Officer must, within 60
days, decide the claim or notify the Contractor of the date by which the decision will be made.
d.The Contracting Officer's decision shall be final unless the Contractor appeals or files a suit as provided in the Act.
e. If the claim by the Contractor is submitted to the Contracting Officer or a claim by the Government is presented to the
Contractor, the parties, by mutual consent, may agree to use alternative disputes resolution (ADR). If the Contractor refuses an
offer for ADR, the Contractor shall inform the Contracting Officer, in writing, of the Contractor's specific reasons for rejecting the
offer.
f. The Government shall pay interest on the amount found due and unpaid from (1) the date that the Contracting Officer
Lease Site Number: HSCG82-15-1-0038
Lease Site Name: Sabine—Neches Kilo Rear Range Light
receives the claim (certified, if required), or(2) the date that payment otherwise would be due, if that date is later, until the date of
payment. With regard to claims having defective certifications, as defined in FAR 33,21, interest shall be paid from the date that
the Contracting officer initially receives the claim. Simple interest on claims shall be paid at the rate, fixed by the Secretary of the
Treasury as provided for in the Act, which is applicable to the period during which the Contracting Officer receives the claim and
then at the rate applicable for each 6-month period as fixed by the Treasury Secretary during the pendency of the claim.
28 LEASE ADMINISTRATION AND POINTS OF CONTACT. Administration of subject lease will be accomplished by:
Commanding Officer, U. S. Coast Guard, Civil Engineering Unit Miami, C/O Mr. Paul Hewitt, Real Property Division, 15608 SW
117th Avenue, Miami, FL 33177 Phone (305) 278-6717. Point of contact for the Lessor: City of Port Arthur, C/O Ms Gwen
Thibodeaux, P.O. Box 1089 Port Arthur,Texas 77640.
29. ASSIGNMENT OF CLAIMS (JAN 1986).
a. The Contractor, under the Assignment of Claims Act, as amended, 31 U.S.C. § 3727, 41 U.S.C. § 15 (hereafter referred to as
"the Act"), may assign its right to be paid amounts due or to become due as a result of the performance by contract to a bank,trust
company, or other financing institution, including any Federal lending agency. The assignee under such an assignment may
thereafter further assign or reassign or reassign its right under the original assignment to any type of financing institution described
in the preceding sentence.
THIS SPACE INTENTIONALLY LEFT BLANK
Lease Site Number: HSCG82-15-1-0038
Lease Site Name: Sabine—Neches Kilo Rear Range Light
b. Any assignment or reassignment authorized under the Act and this clause shall cover all unpaid amounts payable under
this contract, and shall not be made to more than one party, except that an assignment or reassignment may be made to one
party as agent or trustee for two or more parties participating in the financing of this contract.
c. The Contractor shall not furnish or disclose to any assignee under this contract any classified document (including this
contract)or information related to work under this contract until the Contracting Officer authorizes such in writing.
(i) When the date for commencement of rent falls on the 15th day of the month or earlier, the initial monthly rental payment
under this contract shall become due on the first workday of the month following the month in which the commencement of the
rent is effective.
(ii)When the date for commencement of rent falls after the 15th day of the month, the initial monthly rental payment under this
contract shall become due on the first workday of the second month following the month in which the commencement of the rent is
effective.
30. GENERAL CLAUSES. This lease incorporates by reference the applicable clauses in GSA Form 3517B ("General Clauses"),
with the same force and affect as if they were given in full text. Upon request, the Government will make the full text available or
the full text may be found at http://www.gsa.gov/leasingform.
IN WITNESS WHEREOF, the parties hereto have hereunto subscribed their names as of the date first above written.
LESSOR: City of Port Arthur
BY
(Signature) (Official title)
IN PRESENCE OF:
(Witness Signature) (Address)
UNITED STATES OF AMERICA DEPARTMENT OF HOMELAND SECURITY UNITED STATES COAST GUARD
Paul Hewitt, Real Property Contracting Officer
BY
(Signature) (Official title)
STANDARD FORM 2
FEBRUARY 1965 EDITION
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