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OPERATION AND MANAGEMENT SERVICE AGREEMENT <br />FOR <br />THE SAN MARCOS MUNICIPAL AIRPORT <br />This Agreement is effective this t , �,4 day of OCT-obeiK, 2010 by and between <br />the City of San Marcos, Texas, (the "City "), 630 East Hopkins, San Marcos, Texas 78666 and <br />Texas Aviation Partners, LLC (the "Operator "), 2215 Westlake Drive, Austin, Texas 78746- <br />2966, for the operation, maintenance, management and development of the San Marcos <br />Municipal Airport (the "Agreement "). <br />RECITALS <br />The City owns the San Marcos Airport ( "Airport"), the planning, acquisition, <br />establishment, construction, improvement equipping, maintenance, operation, regulation, <br />protection and policing of which is a public and governmental function, exercised for a public <br />purpose and a matter of public necessity. The City has determined that it is in the City's best <br />interest to contract with an independent contractor as authorized by Section 22.020, Tex. Transp. <br />Code. <br />The Airport currently hosts ten (10) aviation businesses that provide a full range of <br />services that include, but are not limited to, aircraft refueling, maintenance and repairs, aircraft <br />charter and rentals, and pilot training. The Airport is home to approximately 200 based aircraft <br />with the majority housed in approximately 50 aircraft hangars and shelters. <br />The City issued a Request for Proposals ( "RFP ") on May 27, 2010 and received a RFP <br />from Texas Aviation Partners, LLC. The City has selected the Operator to operate and manage <br />the Airport, and is relying on the expertise of the Operator to provide efficient management, <br />operation, development and maintenance of the Airport. <br />The City and Operator desire to enter into this Agreement regarding the operation, <br />management, and development of the Airport. <br />The City and Operator intend to operate and maintain the Airport in a first -class manner. <br />"First- class" and "First rate" as used in this Agreement shall mean the operation and <br />maintenance of the Airport in accordance with the Airport Operating Plan, Approved Operating <br />Budget for 2010 -2011 and for each year thereafter, Chapter 10 of the San Marcos Code, the <br />airport maintenance standards established by the City, FAA Regulations and any other applicable <br />federal, state or local standards for public airports and the aviation industry. <br />1 <br />