HomeMy WebLinkAbout2834 1
RESOLUTION NO. ~ 8 3 4
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3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A
4 FUEL DISCOUNT AGREEMENT WITH AUBURN FLIGHT SERVICE, INC.
EXTENDING AND CONTINUING AN EXISTING AGREEMENT.
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WHEREAS, the City of Auburn maintains the sole aviation
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8 fueling operation permitted at the Auburn Municipal Airport in
9 accordance with FAA regulations; and
10 WHEREAS, the City has determined that revenues from fuel
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sales are critical to the financial stability of the airport;
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and
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14 WHEREAS, the City has previously entered into an
15 agreement to offer fuel at a discount to Auburn Flight
16 Service, Inc. due to the volume of their annual purchases
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which exceed 40,000 gallons per year; and
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WHEREAS said agreement has expired; and
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20 WHEREAS, Auburn Flight Service, Inc. has determined that
21 its fuel needs exceeds 40,000 gallons per year and that it is
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appropriate for the firm to begin self-fueling their own
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aircraft consistent with FAA regulations subject to the City
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imposing a flowage fee, and
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Resolution No. 2834
Exhibit "A"
April 17, 1997
Page 1
WHEREAS, the City and Auburn Flight Service, Inc. have
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determined that joint use of the City's existing and proposed
new fueling facilities is of mutual benefit; and
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5 WHEREAS, the City of Auburn agrees to extend the use of
8 the City's fuel facility to Auburn Flight Service, Inc.,
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subject to the execution of a flowage fee agreement;
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
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KING COUNTY, WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
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11 S~CTTON ]. That the Mayor and City Clerk are herewith
12 authorized to execute a Fuel Discount Agreement with Auburn
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Flight Service, Inc. A copy of the said Agreement is attached
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hereto marked as Exhibit "A" and by this reference
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18 incorporated here as if set forth in full.
17 Sect.~on 2. The Mayor is hereby authorized to implement
18 such administrative procedures as may be necessary to carry
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out the directives of this legislation.
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Resolution No. 2834
Exhibit "A"
April 17, 1997
Page 2
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DATED and SIGNED this 21st day of April, 1997.
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4 CITY OF AUBURN
5
CHARLES A. BOOTH
8 MAYOR
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1] ATTEST:
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Robin Wohlhueter,
15 City Clerk
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]8 APPROVED AS TO FORM:
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2] Michael . eynolds, J R
22 City Attorney
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Resolution No. 2834
Exhibit "A"
April 17, 1997
Page 3
ORIGINAL
2 RESOLUTION NO. 2834
3 EXHIBIT "A"
4
AUBURN MUNICIPAL AIRPORT FUEL FLOWAGE FEE AGREEMENT
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THIS AGREEMENT is made and entered into this C~~y of
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8 April, 1997, by and between the CITY OF AUBURN, a non-profit
9 municipal corporation, located at 25 West Main Street, Auburn,
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Washington 98001, hereinafter referred to as "CITY" and AUBURN
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FLIGHT SERVICE, INC., a Washington corporation duly authorized
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13 to conduct business in Washington, located at 506 23rd Street
14 NE, Auburn, Washington 98002, hereinafter referred to as
15 "AUBURN FLIGHT SERVICE".
1. Flowage Fee.
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Beginning May 1, 1997, Auburn Flight Service will pay the
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]9 city of Auburn $9,884.30, an estimate of expected fuel sales
20 for the month of May 1997, which includes a flowage fee of
2] five cents per gallon and any applicable taxes. This amount
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is due May 1, 1997. The same procedure will occur for the
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month of June 1997, with the amount of $11,528.84 due by June
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25 1, 1997. Beginning July 1997, payments will be made in an
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Resolution No. 2834
Exhibit '~A"
April 17, 1997
Page 4
amount based upon the actual fuel usage that occurred two
2
months prior.
The fuel charges will be billed to Auburn Flight Service
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5 by the 20th day of each month (excepting the month of May
6 1997), with the payment due by the last day of the month in
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which the billing is sent. As provided abo~e, after the
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initial two months, the City will invoice based on actual fuel
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10 consumption for two months prior at the wholesale rate, which
1] will consist of the average fuel price paid by the City to its
]2 supplier. Also included in the invoice will be the flowage
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fee of five cents per gallon and any applicable tax.
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Following the City's initial replacement of the filter
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16 replacements on Dispenser 3 and 4, Auburn Flight Service
17 agrees to reimburse the City for annual filter replacements on
18 Dispenser 3 and 4 within 30 days of the billing date. In
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addition, following the City's initial replacement of hoses at
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Dispenser 3 and 4, Auburn Flight Service agrees to reimburse
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22 the City for any purchase of new hoses at Dispenser 3 and 4
23 within 30 days of the billing date.
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Resolution No. 2834
Exhibit "A"
April 17, 1997
Page 5
1
Upon termination of this agreement, the City will bill
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Auburn Flight Service all charges associated with the actual
fuel consumed for the last two-month period of the contract.
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5 The City will take into consideration the amount of the
6 initial two-month estimated payments of $21,413.14, and the
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difference between actual charges and the estimated payment
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will either be invoiced or reimbursed to Auburn Flight Service
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10 depending on fuel consumed and payments received.
]] Gallons Fuel Cost Flowage Fee Tax Total
12 May 6,365 1.502/gal .05/gal .01829
13 June 7,424 1.502/gal .05/gal .01829
14 May $9,560.23 $318.25 5.82 $9,884.30
June $11,150.85 $371.20 6.79 $11,528.84
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16 2. Use of CITY OF AURURN MUNICIPAl, AIRPORT'S FUJI,
17 FACII,ITI~S.
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In return for use of the City's fuel facilities, Auburn
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Flight Service agrees to obtain all its fuel from the Auburn
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Municipal Airport fuel facilities with the exception of other
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22 fuel purchases made necessary due to flights of long distance.
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Resolution No. 2834
Exhibit
April 17, 1997
Page 6
3. Availability of Fuel.
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Auburn Flight Service agrees that the City shall not be
liable for or responsible for providing fuel to Auburn Flight
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5 Service at the City's Municipal Airport or City's Municipal
6 Airport fuel facilities if such provision of fuel is beyond
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the City's ability to supply for reasons, including but not
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limited to, shut downs for maintenance, repairs, emergencies
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or as the result of any legal or safety requirements.
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11 4. Term of Agreement.
12 The term of this agreement is five (5) years, effective
from the date of this agreement as indicated above.
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5. Default.
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16 If Auburn Flight Service violates any of the terms of
17 this agreement, such violation shall be considered a default,
]8 and such default shall be cause for immediate termination of
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this Agreement by the City upon the City's written notice to
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Auburn Flight Service identifying the violation of term(s).
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22 6. Indemnification and Hold Harmless.
23 Auburn Flight Service agrees to defend, indemnify and
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hold harmless the City, its elected and appointed officials,
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Resolution No. 2834
Exhibit
April 17, 1997
Page 7
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employees and agents from any and all claims, demands and/or
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causes of action of any kind or character whatsoever arising
out of or in connection with or incident to the performance of
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5 this Agreement, including but not limited to, Auburn Flight
6 Service's employees, subcontractors or agents for any and all
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claims, demands and/or causes of action by an~ persons for
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alleged personal injury, death or damage to their persons or
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10 property to the extent caused by the negligent acts, errors or
1] omission of Auburn Flight Service, its employees, agents,
12 subcontractors or representatives arising out of its
performance of this Agreement except claims or suits
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occasioned by the sole negligence of the City. In the event
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that any suit or claim for damage caused by said Auburn Flight
17 Service's negligent acts, errors or omission is brought
18 against the City, Auburn Flight Service shall defend the'City
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at its sole cost and expense; provided that the City retains
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the right to participate in said suit if any principle of
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22 governmental or public laws is involved. The provisions of
23 this section shall survive the expiration or termination of
24 this Agreement.
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Resolution No. 2834
Exhibit '~A"
April 17, 1997
Page 8
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7. Insurance.
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Auburn Flight Service shall maintain in full force and
effect throughout the term of this Agreement the following:
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A. Products-Completed Operations Aggregate Limit in the
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6 amount of Two Million Dollars ($2,000,000);
7 B. Personal and Advertising Injury Aggregate Limit in
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the amount of One Million Dollars ($1,000,000);
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C. Each Occurrence Limit in the amount of One Million
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]l Dollars ($1,000,000);
12 D. Fire Damage Limit (Any One Fire) in the amount of
13 Twenty Five Thousand Dollars ($25,000);
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E. Hangarkeepers' Each Loss Limit in the amount of
Twenty Five Thousand Dollars ($25,000);
]7 F. Hangarkeepers' Each Aircraft Limit in the amount of
18 Twenty Five Thousand Dollars ($25,000);
|9 G. No X, C, or U (explosion, collapse, or underground
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exclusion); and
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H. City shall be named as an additional insured.
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23 The insurance shall be written by companies licensed to
24 do business in the State of Washington. An excess or umbrella
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Resolution No. 2834
Exhibit
April 17, 1997
Page 9
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liability policy may be purchased to meet the required
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insurance limits. Certificates of insurance evidencing the
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4 insurance requirements shall be furnished to the City before
5 the effective date of this agreement.
6 8. Training.
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Only those employees of Auburn Flight SerVice who have
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completed training conducted by Auburn Municipal Airport's
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10 Director or his/her designee, or Auburn Municipal Airport's
1] Operations Assistant in pumping aviation fuel are qualified as
]2 required herein pursuant to this Agreement to pump fuel at the
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City's Municipal Airport fuel facilities for Auburn Flight
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Service.
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16 9. l,og of Aircraft Fueled.
17 Auburn Flight Service shall keep a daily log which
18 identifies the aircraft which has been fueled, the date
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fueled, the person who pumped the fuel and the number of
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gallons of fuel pumped for the identified aircraft. This log
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22 shall be available for inspection and review by the City's
23 Airport Manager or his/her designee, the City's Planning
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Director or his/her designee and the Finance Director or
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Resolution No. 2834
Exhibit "A"
April 17, 1997
Page 10
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his/her designee at any reasonable time either with or without
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notice of such review or inspection.
10. A~ rcraft to be Fuel ed by Auburn F] ~ ght Serv~ ce.
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5 Only those aircraft owned or leased by Auburn Flight
6 Service used for charter, flight instruction and/or aircraft
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rental may be fueled by Auburn Flight Service pursuant to this
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Agreement. Any fueling of other aircraft than as provided in
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the section shall be a violation of this Agreement and a
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1] default which is cause for the termination of this Agreement.
]2 11. Supplies and~quipment.
Auburn Flight Service agrees to provide all necessary
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supplies and equipment required for fueling aircraft in order
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16 to comply with all regulatory and legal requirements,
]7 including but not limited to Uniform Fire Code Section 52.02.
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12. Venue of Any Court Action.
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This Agreement shall be governed and construed by and in
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accordance with the laws of the State of Washington. In the
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22 event that suit is initiated by a party to this Agreement, the
23 parties agree that jurisdiction of such action shall be vested
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Resolution No. 2834
Exhibit
April 17, 1997
Page 11
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exclusively in the King County Superior Court for the State of
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Washington.
13. Severability.
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5 If any section, sentence, paragraph, term, or provision
8 hereof is determined to be illegal, invalid, or
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unconstitutional, by any court of competent jurisdiction or by
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any state or federal regulatory authority having jurisdiction
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thereof, such determination shall have no effect on the
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1] validity of any other section, sentence, paragraph, term or
12 provision hereof, all of which will remain in full force and
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effect for the term of the Agreement.
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14. Compliance with laws.
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Auburn Flight Service agrees to comply with all
17 applicable local, state and federal laws, ordinances, codes,
]8 rules and regulations which apply to its performance of this
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Agreement.
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Resolution No. 2834
Exhibit "A"
April 17, 1997
Page 12
1
3 CIITY OF AUBURN
CHARLES A. BOOTH
6 MAYOR
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8
ATTEST:
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12 Robin Wohlhueter,
City Clerk
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15 APPROVED AS TO FORM:
]8
Michael J. Reynolds,
19 City Attorney
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Resolution No. 2834
Exhibit ~A"
April 17, 1997
Page 13
2 AUBURN FLIGHT SERVICE, INC.
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By:
6 Title: Vice President of Operations
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8
STATE OF WASHINGTON )
9 )ss
COUNTY OF KING )
11 '~i
On this ~5 ~ day of , 1997, before me the
12 undersigned, a Notary n and for the State of
Washington, duly commissioned and sworn, personally appeared
lS
JOEL MONTEITH, the Vice President of Operations for Auburn
14 Flight Service, Inc., the corporation that executed the within
and foregoing agreement, and acknowledged the said agreement
15 to be the free and voluntary act and deed of said corporation,
for the uses and purposes therein mentioned, and on oath
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stated that he is authorized to execute said agreement.
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18 IN WITNESS WHEREOF, I have hereunto set my hand and
affixed my official seal on the date hereinabove set forth.
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2~ ~ ~... .........:._~, ~
~ ""x "~ % NOTARY PUBLIC in and for the
22 ~ ~~i~:~ ~ S ' on residing at
~ - _,_ : - ~s,~D '
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. ,~'~ .....~x~7 MY COMMISSION
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Resolution ~o. 2834
Pa~e 14