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HomeMy WebLinkAbout3428RESOLUTION NO. 3 4 2 8 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A FUEL DISCOUNT AGREEMENT WITH AUBURN FLIGHT SERVICE, INC., FOR A TERM OF ONE YEAR. WHEREAS, the City of Auburn maintains the sole aviation fueling operation permitted at the Auburn Municipal Airport in accordance with FAA regulations; and WHEREAS, the City uses profits from fuel sales to fund Airport operations. As a City Enterprise Fund, the Airport's only source of funding is through the sale of fuel and revenues from hangar and ground leases; and WHEREAS, the City has previously entered into an agreement to offer fuel at a discount to Auburn Flight Service, Inc., due to the volume of their annual purchases; and WHEREAS the existing discount agreement expires in April 2002; and. WHEREAS, Auburn Flight Service, Inc., has determined that it is appropriate for the firm to continue self-fueling their own aircraft consistent with FAA regulations subject to the City imposing a flowage fee, and WHEREAS, the City and Auburn Flight Service, Inc., have determined that joint use of the City's new fueling facilities is of mutual benefit; and WHEREAS, the Auburn Flight Service, Inc. agrees to pay to the City of Auburn a$0.15 per gallon surcharge over wholesale cost for a term of from date of the execution of this discount flowage agreement; and. Resolution No. 3428 March 11, 2002 Page 1 WHEREAS, the City of Auburn agrees to the $0.15 per gallon flow fee for self fueling for a term of one year from the execution of this discount flowage fee agreement; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING COUNTY, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: SECTION 1. That the Mayor and City Clerk are herewith authorized to execute an Auburn Municipal Airport Fuel Flowage Fee Agreement with Auburn Flight Service, Inc. A copy of the said Agreement is attached hereto marked as Exhibit "A" and by this reference incorporated here as if set forth in full. Section 2. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directives of this legislation. DATED and SIGNED this ~ day of March 2002. J_r!fISURN PETER B. LEWIS MAYOR Resolution No. 3428 March 11, 2002 Page 2 ATTEST: ~ Danielle E. Daskam, City Clerk APPROVED AS TO FORM: d"aniel B. Heid, City Attorney Resolution No. 3428 March 11, 2002 Page 3 RESOLUTION NO. 3428 EXHIBIT "A" AUBURN MUNICIPAL AIRPORT FUEL FLOWAGE FEE AGREEMENT THIS AGREEMENT is made and entered into this ~jday of Aprii, 2002, by and between the CITY OF AUBURN, a non-profit municipal corporation, located at 25 West Main Street, Auburn, Washington 98001, hereinafter referred to as "CITY" and AUBURN FLIGHT SERVICE, INC., a Washington corporation duly authorized to conduct business in Washington, located at 506 23rd Street NE, Auburn, Washington 98002, hereinafter referred to as "AUBURN FLIGHT SERVICE". 1. Flowaqe Fee. Beginning May 1, 2002, Auburn Flight Service will pay the City of Auburn, an estimate of expected fuel sales for the month of May 2002, which includes a flowage fee of $ 0.15 cents per gallon and any applicable taxes. This amount is due May 1, 2002. The same procedure will occur for the month of June 2002. Beginning April 2002, payments will be made in an amount based upon the actual fuel usage that occurred two months prior. 3. Availability of Fuel. Auburn Flight Service agrees that the City shall not be liable for or responsible for providing fuel to Auburn Flight Service at the City's Municipal Airport or City's Municipal Airport fuel facilities if such provision of fuel is beyond the City's ability to Resolution No. 3428 March 11, 2002 Page 1 supply for reasons, including but not limited to, shut downs for maintenance, repairs, emergencies or as the result of any legal or safety requirements. 4. Term of Agreement. The term of this agreement is one (1) year, effective from the date of this agreement as indicated above. 5. Default. If Auburn Flight Service violates any of the terms of this agreement, such violation shall be considered a default, and such default shall be cause for immediate termination of this Agreement by the City upon the City's written notice to Auburn Flight Service identifying the violation of term(s). 6. Indemnification and Hold Harmless. Auburn Flight Service agrees to defend, indemnify and hold harmless the City, its elected and appointed officials, employees and agents from any and all claims, demands and/or causes of action of any kind or character whatsoever arising out of or in connection with or incident to the performance of this Agreement, including but not limited to, Auburn Flight Service's employees, subcontractors or agents for any and all claims, demands and/or causes of action by any persons for alleged personal injury, death or damage to their persons or property to the extent caused by the negligent acts, errors or omission of Auburn Flight Service, its employees, agents, subcontractors or representatives arising out of its performance of this Agreement except claims or suits occasioned by the sole negligence of the City. In the event Resolution No. 3428 March 11, 2002 Page 2 that any suit or claim for damage caused by said Auburn Flight Service's negligent acts, errors or omission is brought against the City, Auburn Flight Service shall defend the City at its sole cost and expense; provided that the City retains the right to participate in said suit if any principle of governmental or public laws is involved. The provisions of this section shall survive the expiration or termination of this Agreement. 7. Insurance. Auburn Flight Service shall maintain in full force and effect throughout the term of this Agreement the following: A. Products-Completed Operations Aggregate Limit in the amount of Two Million Dollars ($2,000,000); B. Personal and Advertising Injury Aggregate Limit in the amount of One Million Dollars ($1,000,000); C. Each Occurrence Limit in the amount of One Million Dollars ($1,000,000); D. Fire Damage Limit (Any One Fire) in the amount of Twenty Five Thousand Dollars ($25,000); E. Hangarkeepers' Each Loss Limit in the amount of Twenty Five Thousand Dollars ($25,000); F. Hangarkeepers' Each Aircraft Limit in the amount of Twenty Five Thousand Dollars ($25,000); Resolution No. 3428 March 11, 2002 Page 3 G. No X, C, or U(explosion, collapse, or underground exclusion); and H. City shall be named as an additional insured. The insurance shall be written by companies licensed to do business in the State of Washington. An excess or umbrella liability policy may be purchased to meet the required insurance limits. Certificates of insurance evidencing the insurance requirements shall be furnished to the City before the effective date of this agreement. 8. Trainin . Only those employees of Auburn Flight Service who have completed training conducted by Auburn Municipal Airport's Director or his/her designee, or Auburn Municipal Airport's Operations Assistant in pumping aviation fuel are qualified as required herein pursuant to this Agreement to pump fuel at the City's Municipal Airport fuel facilities for Auburn Flight Service. 9. Log of Aircraft Fueled. Auburn Flight Service shall keep a daily log which identifies the aircraft which has been fueled, the date fueled, the person who pumped the fuel and the number of gallons of fuel pumped for the identified aircraft. This log shall be available for inspection and review by the City's Airport Manager or his/her designee, the City's Planning Director or his/her designee and the Finance Director or his/her designee at any reasonable time either with or without notice of such review or inspection. 10. Aircraft to be Fueled bv Auburn Fliqht Service. Resolution No. 3428 March 11, 2002 Page 4 Only those aircraft owned or leased by Auburn Flight Service used for charter, flight instruction and/or aircraft rental may be fueled by Auburn Flight Service pursuant to this Agreement. Any fueling of other aircraft than as provided in the section shall be a violation of this Agreement and a default which is cause for the termination of this Agreement. 11. Supplies and Equipment. Auburn Flight Service agrees to provide all necessary supplies and equipment required for fueling aircraft in order to comply with all regulatory and legal requirements, including but not limited to Uniform Fire Code Section 52.02. 12. Venue of Any Court Action. This Agreement shall be governed and construed by and in accordance with the laws of the State of Washington. In the event that suit is initiated by a party to this Agreement, the parties agree that jurisdiction of such action shall be vested exclusively in the King County Superior Court for the State of Washington. 13. Severability. If any section, sentence, paragraph, term, or provision hereof is determined to be illegal, invalid, or unconstitutional, by any court of competent jurisdiction or by any state or federal regulatory authority having jurisdiction thereof, such determination shall have no effect on the validity of any other section, sentence, paragraph, term or provision hereof, all of which will remain in full force and effect for the term of the Agreement. Resolution No. 3428 March 11, 2002 Page 5 14. Compliance with laws. Auburn Flight Service agrees to comply with all applicable local, state and federal laws, ordinances, codes, rules and regulations which apply to its performance of this Agreement. CIITY OF AU PE1NER B. LEWIS MAYOR ATTEST: Danielle E. Daskam, City Clerk APP FORM: Resolution No. 3428 March 11, 2002 Page 6 AUBURN FLIGHT SERVICE, INC. By: Title: STATE OF WASHINGTON ) , )ss COUNTY OF KING ) On this day of , 1997, before me the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared, the Vice President of Operations for Auburn Flight Service, Inc., the corporation that executed the within and foregoing agreement, and acknowledged the said agreement to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute said agreement. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal on the date hereinabove set forth. NOTARY PUBLIC in and for the State of Washington, residing at MY COMMISSION EXPIRES: Resolution No. 3428 March 11, 2002 Page 7