ORD 34114 - Lease agmt with Husker-Hawkeye Distributing Inc for helicopter hangar facility at North Omaha airport F ptAAHA,NF6 .
�A`, �'s� Administrative Services Department
I Omaha/Douglas Civic Center
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915,64 ..ry Omaha,Nebraska 68183-0706
�� (402)444-3814
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City F,2 of Omaha JosepkA.Mangiamelli '
Hal Daub,Mayor x' c) 114—ctor ,
January 28, 1997 -< .—
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Honorable President -; r it
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and Members of the City Council, ,,, v--
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Transmitted herewith is an Ordinance to approve the execution of a lease with Husker-Hawkeye
Distributing, Inc. for location of the City of Omaha helicopter landing, storage and hangar facility
at the North Omaha Airport. This lease will provide use of such space for a ten year period in two
five year incremental periods.
The existing airwing units are presently housed in a non weather controlled building. This lease
requires a new 60 ft. by 80 ft. weather controlled facility with fuel storage tank adjacent, improving
maintenance conditions and reducing weather related impacts upon the aircraft. Under the terms of
the lease, Husker-Hawkeye will construct the necessary improvements to house and service the
helicopter unit, recouping its cost through a monthly rental, during the initial five year period, of
$1,280.00 based upon a charge being 1% of the estimated construction costs ($128,000.00); the
monthly rental would decrease to $1,080.00 for the second five year period.
In addition, the City has agreed to pay any increases in cost to Husker-Hawkeye for taxes or
• insurance adjustments due to the additional site development for the hangar. The City will also pay
a five cent per gallon charge for fuel usage by the unit; this charge is favorable to the City in that in
many comparable air units,a higher charge would be included in the fuel surcharge from the airport-
the City of Omaha will purchase fuel directly at competitive pricing. Husker-Hawkeye will provide
water and wastewater service with the City being responsible for electrical service costs and the cost
of propane to heat the facility. The costs involved in the execution of this lease are an annual rental
of$15,360.00 with an estimated fuel flow charge of$2,250.00 and estimated utilities of$5,390.00.
These costs, estimated at$23,000.00 annually, will be paid from the Police Department Fund 001,
Special Operations Organization 1345.
Husker-Hawkeye Distributing, Inc. has filed the Annual Contract Compliance Report Form, CC-1,
in the Human Relations Department;as is City policy,the Human Relations Director will review the
firm to determine its compliance with Ordinance 28885.
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Honorable President
and Members of the City Council
Page 2 •
The Administrative Services Department,on behalf of the Omaha Police Department,recommends
approval of this Ordinance and Lease Agreement.
Sincerely, Recommended:
x/L.
•seph A. Man_,. Date J N. Skinner, Chief Date
Director O a Police Department
Approved as to Funding: Approved:
r 7 Od-615.L_L. aciis 39, /. /-,1 -97
Louis A. D'Ercole Date George L. Davis, Jr. Date
Acting Finance Director VI Human Relations Director f -a
Referred to City Council for.Consideration:
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/AI—/ 7
Mayor's Office Date
P:\ASD\5450.SKZ
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ORDINANCE NO. .3 ///y
AN ORDINANCE providing for the execution of a Lease Agreement with Husker-Hawkeye
Distributing,Inc.,providing for a helicopter hangar facility to be located at the North Omaha
Airport; to provide for execution of this Lease for a ten year period in accord with Section
5.17, Home Rule Charter of the City of Omaha, 1956, as amended; to approve payments
from appropriations of more than one fiscal year and from a specific account; and to provide
the effective date hereof.
NOW,THEREFORE,BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
Section 1. That the Lease Agreement with Husker-Hawkeye Distributing, Inc.,providing
a location for a helicopter hangar facility and fuel storage tank for the Omaha Police Department Air
Wing, located at the North Omaha Airport, is approved.
Section 2. That the Lease Agreement shall commence upon execution as herein prescribed,
and shall have a term of ten years comprised of two five year periods as authorized in Section 5.17
of the Home Rule Charter of the City of Omaha, 1956, as amended.
Section 3. That in accord with Section 5.17 of the Home Rule Charter of the City of Omaha,
1956, as amended, payments for this Lease Agreement shall be taken from the Omaha Police
Department Fund 001, Special Operations Organization 1345.
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ORDIPAGENANCE2 NO. 39//
Section 4. That this Ordinance,being administrative in nature,shall take effect and be in full
force upon the date of its passage.
INTRODUCED BY COUNCILMEMBER
•
APPRO BY:
DATE
PASSED FEB 1 1 1997
MAYOR OF THE CITY OF OMAHA DATE 7
�-��
DATE
ATTEST:
CITY C RK OF CITY OF OMAHA DATE
APPROVED AS TO FORM:
;)/ dtzi/ t.e_
ASSIST/A1T CITY ATTORNEY DATE
P:\ASD\5451.SKZ
LEASE AGREEMENT
This Lease Agreement, made and entered into, by and between the Lessor, Husker
Hawkeye Distributing, hereinafter referred to as "HUSKER" and the Lessee, City of Omaha, a
Municipal Corporation of the State of Nebraska,hereinafter referred to as "CITY" as of the dates
indicated below.
WHEREAS, CITY is establishing an air wing for the Omaha Police.Department for the
purpose of providing enhanced public safety services and is interested in locating space for the
siting of a structure to house said unit and supporting facilities;
WHEREAS, HUSKER is owner and operator of the "North Omaha Airport" and does
hereby demise and lease unto CITY the following property situated in Douglas County,
Nebraska, to-wit:
Part of the 80 acre tract located in the North 1/2 of the Southwest 1/4 Section 12 T16N
R12E, being located approximately 375 feet+/-north and 50 east of said section corner
comprising a building of 60' x 80' with adjacent paved areas and fuel storage tank, as indicated
on the attached drawing, Exhibit"A." Included in this lease is the implied right of ingress and
egress across HUSKER property from the public right-of-way to access the premises.
Term and Purpose
CITY agrees•to use and occupy the premises for the location of the Omaha Police Department
Air Wing to include housing of aircraft, takeoff and landing, and all operations and maintenance
activities attendant thereto, and for no other purpose for a term of ten(10)years and shall be
executed in two five year periods, said lease term beginning as detailed herein and ending ten
years thereafter, unless sooner terminated as hereinafter provided. The parties also agree that
there shall be one five year option to renew after the ten year term has been completed which
shall be exercised at least one year prior to the scheduled lease termination.
Monthly Rental
In consideration of the foregoing demise, CITY agrees to pay to HUSKER as rental for said
premises, computed and payable as follows:
HUSKER agrees to construct a 60' x 80' building on the property with associated
paved area(s) and permits the siting of the fuel storage tank with rental to comprise the sum of
one (1%) per cent of the cost of constructing said building and appurtenances, said monthly
payment due and payable on a quarterly basis on the tenth day of the month following receipt of
an invoice for the same. For the purposes of estimating the monthly rental, assume an estimated
construction cost of$128,000, the monthly rental would be $1,280.00. This Lease Agreement
will be amended upon determination of that cost. This monthly rental would exist during the
initial five year lease period, following which the monthly rental during the second five year
lease period shall be $1,080.00.
Taxes, Insurance and Fuel Flow
The parties hereto agree that during the term of the lease and any extension thereof, CITY shall
annually reimburse HUSKER for any and all increases in property taxes assessed to HUSKER as
a result of the construction and presence of the leased premises. The parties hereto also agree
that during the term of the lease and any extension thereof, CITY shall reimburse HUSKER for
premiums paid by HUSKER insuring the leased premises against loss or damage by fire, wind
and customary hazards.
The parties hereto agree during the term of the lease and any extension thereof, CITY shall pay
HUSKER quarterly a fee of five cents ($0.05) per gallon of fuel consumed in any aircraft
utilizing the leased premises. CITY shall maintain records of fuel storage tank filling tickets
serving the leased premises which shall constitute the basis for such payment and shall report
said filling to HUSKER to substantiate said payment.
The parties hereto agree the term of this lease and all provisions thereof shall begin February 1,
1997.
Utilities
HUSKER shall, as part of the construction of the building, cause to be installed water service
from existing well system and wastewater service from the septic system existing on the
property. HUSKER shall also cause to be installed electrical service from Omaha Public Power
District, separately metered from other such service existing on the property, and propane gas
connection and tankage to service the building. Installation of these utility services shall be at no
additional cost to CITY. CITY shall have the electrical service to the building under its
responsibility and shall pay monthly electrical service charges from metered usage directly to the
District. City shall pay for all propane gas used during its use of the building.
Repairs
In consideration of the foregoing demise and rate of rental herein stipulated, CITY agrees during
the term of this lease, at its expense, to keep in good and substantial order and repair and to make
necessary repairs or renewals, replacements upon or in connection with said premises, including
all windows, doors and glass, wherever located, and all plumbing, heating equipment, piping and
wiring, fixtures and appurtenances and excepting only the exterior of the premises (exterior of
the premises, shall not include windows, doors and glass). It is not the intention of the parties
hereto that the foregoing repairs, replacements or renewals be made by CITY when such work is
necessary by reason of fire, windstorm or structural deficiency of the building.
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Safe and Clean Premises
CITY shall keep premises and operate therein in a manner which shall be in compliance with all
laws, rules and regulations, orders and ordinances of the city, county, state and federal
government and will protect HUSKER and the said premises harmless from any and all fines and
penalties that may result from or be due to any infraction of or noncompliance with said laws,
rules, regulations, orders or ordinances. CITY will hold HUSKER exempt and harmless for and
on account of any damages or injury to any person arising from CITY use of the premises or
arising from the failure of CITY to keep the premises in good condition as herein provided.
Damage by Fire or Other
Casualty Termination Privileges
It is provided that in case the said premises, or any part thereof, shall at any time be destroyed or
damaged by fire or other unavoidable casualty, so that the same shall be unfit for occupance or
use, then the rent herein reserved, or a fair and just proportion thereof, according to the nature
and extent of the damage sustained in loss of occupance or use of the premises, shall be
suspended, cease to be payable and so continue until said premises shall be rebuilt or made fit for
occupance and use, or if said damage to the demised premises or to the building in which the
demised-premises are situated, is to the extent of 50% or more,then this lease may be terminated
at the election of HUSKER, notice of the election, if exercised, shall be given in writing 25 days
from the date of casualty, provided also that in the case the building containing said premises is
totally destroyed or work to put the tenantable condition is not commenced within one month
from the time of said damage and continued thereafter, with reasonable diligence,then this lease
may be terminated by CITY, notice of such election, if exercised, must be given in writing within
35 days from the date of damage.
Personal Property at Risk of CITY
All personal property in the leased premises shall be at the risk of CITY only and HUSKER shall
not be or become liable for any damage to said personal property,to said premises or to CITY or
to any other persons or property caused by water leakage, sewerage, gas or odors or for any
damage whatsoever done or occasioned by or from any plumbing, gas, water, steam, or other
pipes or any fixtures, equipment or appurtenances thereto, or any damage occasioned by water,
snow or ice being upon or coming through the roof. Provided, however, that any such damage
arising from the negligence of HUSKER or its contractor in constructing the building and
premises shall be at the risk and the responsibility of HUSKER
Right of HUSKER to Enter for Repairs
HUSKER shall have the right to enter said premises at all reasonable times with advance notice
to examine the same or to make such repairs, additions or alterations as HUSKER may see fit to
make for safety, improvement or preservation thereof. HUSKER may display "for rent" signs on
or about the said premises for sixty days prior to the termination of this lease.
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Termination of Lease
This lease shall have a term of ten years from the date of initial occupancy of the premises
described herein, provided, however, after five years either party may terminate the lease upon
providing the other party with written notice of intention to terminate such lease at least 365 days
prior to the date of such intended termination. Should either party elect to terminate the Lease
Agreement after such five year period,the responsibility of CITY to pay monthly rental shall
abate.
Nondiscrimination
Neither CITY nor HUSKER, in the performance of this Lease Agreement, shall discriminate or
permit discrimination against any person because of race, sex, age, disability or religious or
political opinions or affiliations in violation of federal or state statutes or local ordinances and
further HUSKER shall comply with Ordinance 28885 pertaining to civil rights and human
relations.
Interest of the City
Pursuant to Section 8.05 of the Home Rule Charter of the City of Omaha, no elected official or
any officer or employee of the City shall have a financial interest, direct or indirect, in any City
contract. A violation of that section with the knowledge of the lessor, in addition to constituting
employee malfeasance, shall be cause for the City to unilaterally terminate or void this
Agreement.
The parties hereto acknowledge that Section 10-142 of the Omaha Municipal Code provides as
follows: Any amendment to contracts or purchases which taken alone increases the original bid
price as awarded (a) by ten percent, if the original bid price is one hundred fifty thousand dollars
($150,000) or more, or (b) by seventy-five thousand dollars ($75,000) or more, shall be approved
by the City Council in advance of the acceptance of any purchase in excess of such limits or the
authorization of any additional work in excess of such limits. However, neither contract nor
purchase amendments will be split to avoid advance approval of the City Council.
Amendment/Modification
This Lease Agreement contains the entire intentions and understandings of the parties. No
alterations, amendments or other modifications, including verbal, may be made except in writing
and agreed to by both parties.
Applicable Law
Parties to this Lease Agreement shall conform with all existing and applicable city ordinances,
resolutions, state statutes, federal laws and all existing and applicable rules and regulations.
Nebraska law will govern the terms and the performance under this Lease Agreement.
41‘ ,/Lat
Authorized Representative
In further consideration of the mutual covenants herein contained, the parties hereto expressly
agree that for the purposes of notice, including legal service of process, during the term of this
Lease Agreement and for the period of any applicable statute or limitations thereafter,the
following named individuals shall be authorized representatives of the parties:
1) CITY OF OMAHA,NEBRASKA:
Police Chief James N. Skinner Legal Service c/o City Clerk
Omaha Police Department Omaha/Douglas Civic Center
505 South 15th Street 1819 Farnam Street
Omaha,NE 68102-2769 Omaha,NE 68183
2) HUSKER HAWKEYE DISTRIBUTING:
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Either party may designate additional representatives or substitute representatives by giving
written notice thereof to the designated representative of the other party.
IN WITNESS WHEREOF, the parties have caused these presents to be executed as of the dates
indicated below.
ff
Executed by HAWKEYE HUSKER DISTRIBUTING this v�� _ day of
December, 1996.
Wit s: By:
" L '
oral
Executed by the CITY OF OMAHA this /3 day of ar , 1997.
Attest: By:
:qf
City Cler Mayor
Approved as to form:
•
1/2
Assis{ant City Attorney
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