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Item 4E4E -1 CITY OF SOUTHLAKE MEMORANDUM July 27, 2011 To: Shana Yelverton, City Manager From: Chris Tribble, Director of Community Services Subject: Approve a lease agreement with the Secretary of Army, US Army Corps of Engineers, for 448 acres of land adjacent to Bob Jones Park Action Requested: City Council approval of a lease agreement with the Secretary of Army, US Army Corp of Engineers (COE), for 448 acres of land adjacent to Bob Jones Park Background Information: The City's current 25 -year lease with the COE for 218 acres with an expiration date of 2023 will be replaced with a new 25 -year lease that will include the 218 acres originally leased, plus an additional 230 acres, for a total of 448 acres. The term will be August 1, 2011 - July 31, 2036. A map of the properties contained in the lease is attached for your reference. The additional park acreage of 448 acres has been incorporated into the Bob Jones Nature Center & Preserve Master Plan, a component of the Southlake 2030 Plan, which was approved by City Council for 2nd Reading of Ordinance No. 1002 at the June 21, 2011 meeting. Financial Considerations: The financial considerations resulting from the lease is a one -time administrative fee of $475 to the Secretary of the Army and maintenance expenses to operate and maintain the property to Corp of Engineers and City of Southlake standards, as provided in an annual Plan of Recreation Development and Management approved by the City and COE. Maintenance and operations expenses are funded in the Parks general fund budget. Strategic Link: This item is linked to the City's Strategy Map related to the focus area of Quality Development and meets the corporate objectives to Provide Attractive and Unique Spaces for Enjoyment of Personal Interests and Invest to Provide and Maintain High Quality Public Assets. 4E -2 Citizen Input/ Board Review: Parks Board has discussed their desire to finalize the lease on a number of occasions and is in support of the lease agreement. City Council consideration August 2, 2011 Legal Review: Lease Agreement has been reviewed by the City Attorney Alternatives: Alternatives include: • Approve lease agreement • Approve lease agreement with modifications as desired • Decision not to approve lease agreement Attachments: (A) Location Map (B) Lease Agreement with Secretary of Army, US Army Corps of Engineers for 448 acres Attachment A PA\RK Attachment B DEPARTMENT OF THE ARMY LEASE TO NON -STATE GOVERNMENTAL AGENCIES FOR PUBLIC PARK AND RECREATIONAL PURPOSES WALNUT GROVE PARK GRAPEVINE LAKE TARRANT COUNTY, TEXAS THIS LEASE is made on behalf of the United States, between the SECRETARY OF THE ARMY, hereinafter referred to as the Secretary, and the City of Southlake, hereinafter referred to as the Lessee, WITNESSETH: That the Secretary, by authority of Title 16, United States Code, Section 460d, and for the consideration hereinafter set forth, hereby leases to the Lessee, the property identified in Exhibit A, approximately 448 acres on Tract(s) D349, D320, D321, D302, D314, D340, C241, C340, C206, C221, C246, C254, C234, C233 and C236, attached hereto and made a part hereof, hereinafter referred to as the premises, for public park and recreational purposes. THIS LEASE is granted subject to the following conditions: 1. TERM Said premises are hereby leased beginning 1 August 2011 and ending 31 July 2036, but revocable at will by the Secretary. 2. CONSIDERATION The consideration for this lease is the operation and maintenance of the premises by the Lessee for the benefit of the United States and the general public, in accordance with the conditions herein set forth, in addition to an administrative fee of Four Hundred Seventy Five and No /100 Dollars ($475.00). 3. NOTICES All correspondence and notices to be given pursuant to this lease shall be addressed, if to the Lessee, to the City of Southlake, Parks and Recreation Department, 400 North White Chapel Blvd., Southlake, Texas 76092; and, if to the United States, to the District Engineer, ATTN: Chief, Real Estate Division, CESWF -RE -M, P.O. Box 17300, Fort Worth, Texas 76102 -0300, or as may from time to time otherwise be directed by the parties. Notice shall be deemed to have been duly given if and when enclosed in a properly sealed envelope, or wrapper, addressed as aforesaid, and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. 4. AUTHORIZED REPRESENTATIVES Except as otherwise specifically provided, any reference herein to "Secretary of the Army," "District Engineer," "said officer" or "Lessor" shall include their duly authorized representatives. Attachment B Any reference to "Lessee" shall include sublessees, assignees, transferees, concessionaires, and its duly authorized representatives. 5. DEVELOPMENT PLANS The Lessee shall be guided by an annual Plan of Operation and Maintenance in furtherance of the Lessee's implementing Plan of Recreation Development and Management (Development Plan) attached as Exhibit B which shows the facilities and services necessary to meet the current and potential public demand and the management and development activities to be undertaken by the Lessee and any sublessees. No later than 31 January of each year, the Lessee will submit the annual Plan to be mutually agreed on between the Lessee and the District Engineer. Such annual Plan shall include but is not limited to the following: a. Plans for management, maintenance and development activities to be undertaken by the Lessee and any sublessees. b. Report of the management, maintenance and development accomplishments of the Lessee for the preceding year. c. Report on any significant modification of policies or procedures which are planned for the following year as well as those implemented in the preceding year. d. Minor modifications to the Development Plan. Major modifications are to be accomplished by amendment to the Plan before proceeding to implement any changes in the development or management of the leased premises. e. Budget of the Lessee for carrying out all activities for the upcoming year. E Personnel to be used in the management of the leased premises. g. Annual certification that all water and sanitary systems on the premises have been inspected and comply with Federal, state and local standards. Lessee will also provide a statement of compliance with the Rehabilitations Act and the Americans with Disabilities Act, as required in the condition on NON - DISCRIMINATION, noting any deficiencies and providing a schedule for correction. The use and occupation of the premises shall be subject to the general supervision and approval of the District Engineer. During the term of the lease, the District Engineer will notify the Lessee of any updates to the existing project Master Plan affecting the premises and the Lessee may provide comments. 6. STRUCTURES AND EQUIPMENT The Lessee shall have the right, during the term of the lease, to erect such structures and to provide such equipment upon the premises as may be necessary to furnish the facilities and services authorized. Those structures and equipment shall be and remain the property of the Lessee, except as otherwise provided in the Condition on RESTORATION. However, not structures may be erected or altered upon the premises unless and until the type of use, design, and proposed location or alteration thereof shall have been approved in writing by the District Engineer. The District Attachment B Engineer may require the Lessee, upon the completion of each of the proposed developments to furnish complete "as built" construction plans for all facilities. 7. APPLICABLE LAWS AND REGULATIONS a. The Lessee shall comply with all applicable Federal laws and regulations and with all applicable laws, ordinances, and regulations of the state, county, and municipality wherein the premises are located, including, but not limited to, those regarding construction, health, safety, food service, water supply, sanitation, use of pesticides, and licenses or permits to do business. The Lessee shall make and enforce such regulations as are necessary and within its legal authority in exercising the privileges granted in this lease, provided that such regulations are not inconsistent with those issued by the Secretary of the Army or with the provisions of 16 U.S.C.. 460d. b. The Lessee will provide an annual certification that all water and sanitary systems on the premises have been inspected and comply with Federal, state and local standards. The Lessee will also provide a statement of compliance with the Rehabilitations Act and the Americans with Disability Act, as required in the condition on NON - DISCRIMINATION, noting any deficiencies and providing a schedule for correction. 8. CONDITION OF PREMISES The Lessee acknowledges that it has inspected the premises, knows its condition, and understands that the same is leased without any representations or warranties whatsoever and without obligation on the part of the United States to make any alterations, repairs, or additions thereto. 9. FACILITIES AND SERVICES The Lessee shall provide the facilities and services as agreed upon in the Development Plan referred to in the Condition on DEVELOPMENT PLANS; either directly or through subleases or concession agreements that have been reviewed and accepted by the District Engineer. These subleases or agreements shall state: (1) that they are granted subject to the provisions of this lease; and (2) that the agreement will not be effective until the third parry activities have been approved by the District Engineer. The Lessee will not allow any third parry activities with a rental to the Lessee or prices to the public which would give the third parry an undue economic advantage or circumvent the intent of the Development Plan. The rates and prices charged by the Lessee or its sub - lessees or concessionaires shall be reasonable and comparable to rates charged for similar goods and services by others in the area. The use of sub - lessees and concessionaires will not relieve the Lessee from the primary responsibility for ensuring compliance with all of the terms and conditions of this lease. 10. TRANSFERS, ASSIGNMENTS, SUBLEASES a. Without prior written approval of the District Engineer, the Lessee shall neither transfer nor assign this lease nor sublet the premises or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this lease. b. The Lessee will not sponsor or participate in timeshare ownership of any structures, facilities, accommodations, or personal property on the premises. The Lessee will not subdivide nor develop the premises into private residential development. Attachment B 11. FEES Fees may be charged by the Lessee for the entrance to or use of the premises or any facilities, however, no user fees may be charged by the Lessee or its sub - lessees for use of facilities developed in whole or part with federal funds if a user charge by the Corps of Engineers for the facility would be prohibited under law. 12. ACCOUNTS, RECORDS AND RECEIPTS All monies received by the Lessee from operations conducted on the premises, including, but not limited to, entrance, admission and user fees and rental or other consideration received from its concessionaires, may be utilized by the Lessee for the administration, maintenance, operation and development of the premises. Beginning 5 years from the date of this lease and continuing at 5 -year intervals, any such monies not so utilized or programmed for utilization within a reasonable time shall be paid to the District Engineer. The Lessee shall establish and maintain accurate records and accounts and provide an annual statement of receipts and expenditures to the District Engineer. Annual or weekly entrance fees not collected on the Project, which also are honored at other recreational areas operated by the Lessee, are excluded from this requirement. The District Engineer shall have the right to perform audits or to require the Lessee to audit the records and accounts of the Lessee, third parry concessionaires and sub - lessees, in accordance with auditing standards and procedures promulgated by the American Institute of Certified Public Accountants or by the state, and furnish the District Engineer with the results of such an audit. 13. PROTECTION OF PROPERTY The Lessee shall be responsible for any damage that may be caused to property of the United States by the activities of the Lessee under this lease and shall exercise due diligence in the protection of all property located on the premises against fire or damage from any and all other causes. Any property of the United States damaged or destroyed by the Lessee incident to the exercise of the privileges herein granted shall be promptly repaired or replaced by the Lessee to the satisfaction of the District Engineer, or, at the election of the District Engineer, reimbursement may be made therefore by the Lessee in an amount necessary to restore or replace the property to a condition satisfactory to the District Engineer. 14. RIGHT TO ENTER AND FLOOD The right is reserved to the United States, its officers, agents, and employees to enter upon the premises at any time and for any purpose necessary or convenient in connection with Government purposes; to make inspections; to remove timber or other material, except property of the Lessee; to flood the premises; to manipulate the level of the lake or pool in any manner whatsoever; and /or to make any other use of the land as may be necessary in connection with project purposes, and the Lessee shall have no claim for damages on account thereof against the United States or any officer, agent, or employee thereof. 15. LIGHTS, SIGNALS AND NAVIGATION There shall be no unreasonable interference with navigation by the exercise of the privileges granted by this lease. If the display of lights and signals on any work hereby authorized is not otherwise provided for by law, such lights and signals as may be prescribed by the Coast Guard or by Attachment B the District Engineer shall be installed and maintained by and at the expense of the Lessee. 16. INSURANCE a. At the commencement of this lease, the Lessee, unless self - insured, and its sub - lessees and concessionaires at the commencement of operating under the terms of this lease as third parties, shall obtain from a reputable insurance company or companies contracts of liability insurance. The insurance shall provide an amount not less than that which is prudent, reasonable and consistent with sound business practices or a minimum Combined Single Limit of $1,000,000.00, whichever is greater, for any number of persons or claims arising from any one incident with respect to bodily injuries or death resulting therefrom, property damage, or both, suffered or alleged to have been suffered by any person or persons, resulting from the operations of the Lessee, sub - lessees and concessionaires under the terms of this lease. The Lessee shall require its insurance company to furnish to the District Engineer a copy of the policy or policies, or, if acceptable to the District Engineer, certificates of insurance evidencing the purchase of such insurance. The District Engineer shall have the right to review and revise the amount of minimum liability insurance required. b. The insurance policy or policies shall specifically provide protection appropriate for the types of facilities, services and products involved; and shall provide that the District Engineer be given thirty (30) days notice of any cancellation or change in such insurance. c. In the event the Lessee is self - insured, the Lessee shall certify such self - insurance in writing in the minimum amount specified above to the District Engineer. The Lessee's insurance status shall not eliminate the requirement for its sub - lessees and concessionaires to have insurance from a reputable insurance carrier as set out above. d. The District Engineer may require closure of any or all of the premises during any period for which the Lessee and/or its sub - lessees and concessionaires do not have the required insurance coverage. 17. RESTORATION On or before the expiration of this lease or its termination by the Lessee, the Lessee shall vacate the premises, remove the property of the Lessee, and restore the premises to a condition satisfactory to the District Engineer. If, however, this lease is revoked, the Lessee shall vacate the premises, remove said property therefrom, and restore the premises to the aforesaid condition within such time as the District Engineer may designate. In either event, if the Lessee shall fail or neglect to remove said property and restore the premises, then, at the option of the District Engineer, said property shall either become the property of the United States without compensation therefore, or the District Engineer may cause the property to be removed and no claim for damages against the United States or its officers or agents shall be created by or made on account of such removal and restoration work. The Lessee shall also pay the United States on demand any sum which may be expended by the United States after the expiration, revocation, or termination of this lease in restoring the premises. 18. NON - DISCRIMINATION a. The Lessee shall not discriminate against any person or persons or exclude them from participation in the Lessee's operations, programs or activities conducted on the leased premises, because of race, color, religion, sex, age, handicap, or national origin. The Lessee will comply with Attachment B the Americans with Disabilities Act and attendant Americans with Disabilities Act Accessibility Guidelines (ADAAG) published by the Architectural and Transportation Barriers Compliance Board. b. The Lessee, by acceptance of this lease, is receiving a type of Federal assistance and, therefore, hereby gives assurance that it will comply with the provisions of Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C.. 2000d); the Age Discrimination Act of 1975 (42 U.S.C.. 6102); the Rehabilitation Act of 1973, as amended (29 U.S.C.. 794); and all requirements imposed by or pursuant to the Directive of the Department of Defense (32 CFR Part 300) issued as Department of Defense Directives 5500.11 and 1020. 1, and Army Regulation 600 -7. This assurance shall be binding on the Lessee, its agents, successors, transferees, sub - lessees and assignees. 19. SUBJECT TO EASEMENTS This lease is subject to all existing easements, easements subsequently granted, and established access routes for roadways and utilities located, or to be located, on the premises, provided that the proposed grant of any new easement or route will be coordinated with the Lessee, and easements will not be granted which will, in the opinion of the District Engineer, interfere with developments, present or proposed, by the Lessee. The Lessee will not close any established access routes without written permission of the District Engineer. 20. SUBJECT TO MINERAL INTERESTS This lease is subject to all outstanding mineral interests. As to federally owned mineral interests, it is understood that they may be included in present or future mineral leases issued by the Bureau of Land Management (BLM), which has responsibility for mineral development on Federal lands. The Secretary will provide lease stipulations to BLM for inclusion in such mineral leases that are designed to protect the premises from activities that would interfere with the Lessee's operations or would be contrary to local laws. 21. COMPLIANCE, CLOSURE, REVOCATION AND RELINQUISHMENT a. The Lessee and/or any sub - lessees or licensees are charged at all times with full knowledge of all the limitations and requirements of this lease, and the necessity for correction of deficiencies, and with compliance with reasonable requests by the District Engineer. This lease may be revoked in the event that the Lessee violates any of the terms and conditions and continues and persists in such non - compliance, or fails to obtain correction of deficiencies by sub - lessees or licensees. The Lessee will be notified of any non - compliance, which notice shall be in writing or shall be confirmed in writing, giving a period of time in which to correct the non - compliance. Failure to satisfactorily correct any substantial or persistent non - compliance within the specified time is grounds for closure of all or part of the premises, temporary suspension of operation, or revocation of the lease, after notice in writing of such intent. Future requests by the Lessee to extend the lease, expand the premises, modify authorized activities, or assign the lease shall take into consideration the Lessee's past performance and compliance with the lease terms. b. This lease may be relinquished by the Lessee by giving one (1) year prior written notice to the District Engineer in the manner prescribed in the Condition on NOTICES. Attachment B 22. HEALTH AND SAFETY a. The Lessee shall keep the premises in good order and in a clean, sanitary, and safe condition and shall have the primary responsibility for ensuring that any sub - lessees and concessionaires operate and maintain the premises in such a manner. b. In addition to the rights of revocation for non - compliance, the District Engineer, upon discovery of any hazardous conditions on the premises that presents an immediate threat to health and/or danger to life or property, will so notify the Lessee and will require that the affected part or all of the premises be closed to the public until such condition is corrected and the danger to the public eliminated. If the condition is not corrected within the time specified, the District Engineer will have the option to: (1) correct the hazardous conditions and collect the cost of repairs from the Lessee; or, (2) revoke the lease. The Lessee and its assignees or sub - lessees shall have no claim for damages against the United States, or any officer, agent, or employee thereof on account of action taken pursuant to this condition. 23. PUBLIC LISE No attempt shall be made by the Lessee, or any of its sub - lessees or concessionaires, to forbid the full use by the public of the premises and of the water areas of the project, subject, however, to the authority and responsibility of the Lessee to manage the premises and provide safety and security to the visiting public. 24. PROHIBITED USES a. The Lessee shall not permit gambling on the premises or install or operate, or permit to be installed or operated thereon, any device which is illegal, or use the premises or permit them to be used for any illegal business or purpose. There shall not be conducted on or permitted upon the premises any activity which would constitute a nuisance. b. As an exception, some games of chance, such as raffles, games and sporting events, may be conducted by nonprofit organizations under special use permits issued in conjunction with special events, if permissible by state and local law. Any request to conduct such activities must be submitted in writing to the District Engineer. c. In accordance with state and local laws and regulations, the Lessee may sell, store, or dispense, or permit the sale, storage, or dispensing of beer, malt beverages, light wines or other intoxicating beverages on the premises in those facilities where such service is customarily found. Bar facilities will only be permitted if offered in connection with other approved activities. Advertising of such beverages outside of buildings is not permitted. Carry out package sales of hard liquor is prohibited. 25. NATURAL RESOURCES The Lessee shall cut no timber, conduct no mining operations, remove no sand, gravel, or kindred substances from the ground, commit no waste of any kind, nor in any manner substantially change the contour or condition of the premises, except as may be authorized under and pursuant to the Development Plan described in the Condition on DEVELOPMENT PLANS herein. The Lessee may salvage fallen or dead timber; however, no commercial use shall be made of such timber. Attachment B Except for timber salvaged by the Lessee when in the way of construction of improvements or other facilities, all sales of forest products will be conducted by the United States and the proceeds therefrom shall not be available to the Lessee under the provisions of this lease. 26. DISPUTES CLAUSE a. Except as provided in the Contract Disputes Act of 1978 (41 U.S.C. 601 -613) (the Act), all disputes arising under or relating to this lease shall be resolved under this clause and the provisions of the Act. b. "Claim," as used in this clause, means a written demand or written assertion by the Lessee seeking, as a matter of right, the payment of money in a sum certain, the adjustment of interpretation of lease terms, or other relief arising under or relating to this lease. A claim arising under this lease, unlike a claim relating to that lease, is a claim that can be resolved under a lease clause that provides for the relief sought by the Lessee. However, a written demand or written assertion by the Lessee seeking the payment of money exceeding $100,000 is not a claim under the Act until certified as required by subparagraph c.(2) below. c. (1) A claim by the Lessee shall be made in writing and submitted to the District Engineer for a written decision. A claim by the Government against the Lessee shall be subject to a written decision by the District Engineer. (2) For Lessee claims exceeding $50,000, the Lessee shall submit with the claim a certification that: (i) The claim is made in good faith; belief, and (ii) Supporting data are accurate and complete to the best of the Lessee's knowledge and (iii) The amount requested accurately reflects the lease adjustment for which the Lessee believes the Government is liable. (3) If the Lessee is an individual, the certificate shall be executed by that individual. If the Lessee is not an individual, the certification shall be executed by: (i) A senior company official in charge at the Lessee's location involved; or (ii) An officer or general partner of the Lessee having overall responsibility of the conduct of the Lessee's affairs. d. For Lessee claims of $50,000 or less, the District Engineer must, if requested in writing by the Lessee, render a decision within 60 days of the request. For Lessee - certified claims over $50,000, the District Engineer must, within 60 days, decide the claim or notify the Lessee of the date by which the decision will be made. e. The District Engineer's decision shall be final unless the Lessee appeals or files a suit as provided in the Act. Attachment B f. At the time a claim by the Lessee is submitted to the District Engineer or a claim by the Government is presented to the Lessee, the parties, by mutual consent, may agree to use alternative means of dispute resolution. When using alternate dispute resolution procedures, any claim, regardless of amount, shall be accompanied by the certificate described in paragraph c.(2) of this clause, and executed in accordance with paragraph c.(3) of this clause. g. The Government shall pay interest on the amount found due and unpaid by the Government from (1) the date the District Engineer received the claim (properly certified if required), or (2) the date payment otherwise would be due, if that date is later, until the date of payment. Simple interest on claims shall be paid at the rate, fixed by the Secretary of the Treasury, as provided in the Act, which is applicable to the period during which the District Engineer 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. h. The Lessee shall proceed diligently with the performance of the lease, pending final resolution of any request for relief, claim, appeal, or action arising under the lease, and comply with any decision of the District Engineer. 27. ENVIRONMENTAL PROTECTION a. Within the limits of their respective legal powers, the parties to this lease shall protect the project against pollution of its air, ground, and water. The Lessee shall comply promptly with any laws, regulations, conditions or instructions affecting the activity hereby authorized, if and when issued by the Environmental Protection Agency, or any Federal, state, interstate or local governmental agency having jurisdiction to abate or prevent pollution. The disposal of any toxic or hazardous materials within the leased area is specifically prohibited. Such regulations, conditions, or instructions in effect or prescribed by the Environmental Protection Agency, or any Federal, state, interstate or local governmental agency, are hereby made a condition of this lease. The Lessee shall require all sanitation facilities on boats moored at the Lessee's facilities, including rental boats, to be sealed against any discharge into the lake. Services for waste disposal, including sewage pump -out of watercraft, shall be provided by the Lessee as appropriate. The Lessee shall not discharge waste or effluent from the premises in such a manner that the discharge will contaminate streams or other bodies of water or otherwise become a public nuisance. b. The Lessee will use all reasonable means available to protect the environment and natural resources, and where damage nonetheless occurs from the lessee's activities, the Lessee shall be liable to restore the damaged resources. c. The Lessee must obtain approval in writing from the District Engineer before any pesticides or herbicides are applied to the premises. 28. PRELIMINARY ASSESSMENT SCREENING A Preliminary Assessment Screening (PAS) documenting the known history of the property with regard to the storage, release or disposal of hazardous substances thereon is attached hereto and made a part hereof as Exhibit C. Upon expiration, revocation or termination of this lease, another PAS Attachment B shall be prepared which will document the environmental condition of the property at that time. A comparison of the two assessments will assist the District Engineer in determining any environmental restoration requirements. Any such requirements will be completed by the lessee in accordance with the condition on RESTORATION. 29. HISTORIC PRESERVATION The Lessee shall not remove or disturb, or cause or permit to be removed or disturbed, any historical, archaeological, architectural or other cultural artifacts, relics, remains, or objects of antiquity. In the event such items are discovered on the premises, the Lessee shall immediately notify the District Engineer and protect the site and the material from further disturbance until the District Engineer gives clearance to proceed. 30. SOIL AND WATER CONSERVATION The Lessee shall maintain in a manner satisfactory to the District Engineer, all soil and water conservation structures that may be in existence upon said premises at the beginning of, or that may be constructed by the Lessee during the term of, this lease, and the Lessee shall take appropriate measures to prevent or control soil erosion within the premises. Any soil erosion occurring outside the premises resulting from the activities of the Lessee shall be corrected by the Lessee as directed by the District Engineer. 31. TRANSIENT I SE a. Camping, including transient trailers or recreational vehicles, at one or more campsites for a period longer than thirty (30) days during any sixty (60) consecutive day period is prohibited. The Lessee will maintain a ledger and reservation system for the use of any such campsites. b. Occupying any lands, buildings, vessels or other facilities within the premises for the purpose of maintaining a full- or part-time residence is prohibited, except for employees residing on the premises for security purposes, if authorized by the District Engineer. 32. COVENANT AGAINST CONTINGENT FEES The Lessee warrants that no person or selling agency has been employed or retained to solicit or secure this lease upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Lessee for the purpose of securing business. For breach or violation of this warranty, the United States shall have the right to annul this lease without liability or, in its discretion, to require the Lessee to pay, in addition to the lease rental or consideration, the full amount of such commission, percentage, brokerage, or contingent fee. 33. OFFICIALS NOT TO BENEFIT No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this lease or to any benefits to arise therefrom. However, nothing herein contained shall be construed to extend to any incorporated company if the lease be for the general benefit of such corporation or company. Attachment B 34. MODIFICATIONS This lease contains the entire agreement between the parties hereto, and no modification of this agreement, or waiver, or consent hereunder shall be valid unless the same be in writing, signed by the parties to be bound or by a duly authorized representative; and this provision shall apply to this clause as well as all other conditions of this lease. 35. DISCLAIMER This lease is effective only insofar as the rights of the United States in the premises are concerned; and the Lessee shall obtain such permission as may be required on account of any other existing rights. It is understood that the granting of this lease does not eliminate the necessity of obtaining any Department of the Army permit which may be required pursuant to the provisions of Section 10 of the Rivers and Harbors Act of 3 March 1899 (30 Stat. 1151; 33 U.S.C. § 403), or Section 404 of the Clean Water Act (33 U.S.C. § 1344). 37. SPECIAL CONDITIONS a. The City of Southlake must provide the Grapevine Lake Office with monthly and holiday visitation data. This data must be provided by the 10th day of each month and sent to the Grapevine Lake Office, 110 Fairway Drive, Grapevine, Texas 76051 -3495. b. The City of Southlake must operate and maintain Walnut Grove Park to at least minimal Corps of Engineers standards. c. The City of Southlake must comply with all applicable federal, state and local laws, regulations and codes. d. The total acreage of Walnut Grove Park is 448 acres, and 321 acres is described as an Environmentally Sensitive Area. The City of Southlake must provide detailed construction plans to the Grapevine Lake Office for review prior to any alteration of the park. IN WITNESS WHEREOF I have hereunto set my hand by authority /direction of the Secretary of the Army this day of 2011. Hyla J. Head Chief, Real Estate Division Attachment B THIS LEASE is also executed b the Lessee this , 2011. Citv of Southlake day of Name /Title Grantee: Citv of Southlake Address: 400 North White Chapel Blvd. City /State: Southlake, Texas 76092 Phone: 817 -748 -8203 Attachment B CERTIFICATE I 1 certify that I am the of Southlake, Grantee herein that who signed this of The City Lease No. DACW63 -1 -11 -0593 on behalf of the Grantee was then of The City of Southlake, and that said Lease was duly signed for and behalf of The City of Southlake by authority of its governing body and is within the scope of its legal powers. Date Name Title Note: Someone other than the individual who executes the Lase must complete and sign this CERTIFICATE.