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HomeMy WebLinkAbout2834 (2) o1 r ' - PPE ,/ 1 RESOLUTION NO 2 8 3 4 2 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 5 EXTENDING AND CONTINUING AN EXISTING AGREEMENT 6 WHEREAS, the City of Auburn maintains the sole aviation 7 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 11 sales are critical to the financial stability of the airport; 12 and 13 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 17 which exceed 40, 000 gallons per year; and 18 WHEREAS said agreement has expired; and 19 20 WHEREAS, Auburn Flight Service, Inc has determined that 21 its fuel needs exceeds 40 , 000 gallons per year and that it is 22 appropriate for the firm to begin self-fueling their own 23 aircraft consistent with FAA regulations subject to the City 24 imposing a flowage fee, and 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 1 1 WHEREAS, the City and Auburn Flight Service, Inc have 2 determined that joint use of the City' s existing and proposed 3 4 new fueling facilities is of mutual benefit; and 5 WHEREAS, the City of Auburn agrees to extend the use of 6 the City' s fuel facility to Auburn Flight Service, Inc , 7 subject to the execution of a flowage fee agreement ; 8 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, 9 10 KING COUNTY, WASHINGTON, HEREBY RESOLVES AS FOLLOWS 11 SECTION 1 . That the Mayor and City Clerk are herewith 12 authorized to execute a Fuel Discount Agreement with Auburn 13 Flight Service, Inc A copy of the said Agreement is attached 14 hereto marked as Exhibit "A" and by this reference 15 16 incorporated here as if set forth in full 17 Section 2 The Mayor is hereby authorized to implement 18 such administrative procedures as may be necessary to carry 19 out the directives of this legislation 20 21 22 23 24 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 2 1 DATED and SIGNED this 21st day of April, 1997 2 3 4 CITY OF AUBURN 5 6 CHARLES A BOOTH 8 MAYOR 9 10 11 ATTEST 12 13 14 02i /'vn Robin Wohlhueter, 15 City Clerk 16 17 18 APPROVED AS TO FORM 19 20 21 Michael J Reynolds, 22 City Attorney 23 24 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 3 ORIGINAL 1 2 RESOLUTION NO 2834 EXHIBIT "A" 3 4 5 AUBURN MUNICIPAL AIRPORT FUEL FLOWAGE FEE AGREEMENT 7 THIS AGREEMENT is made and entered into this(9S/`may of 8 April, 1997, by and between the CITY OF AUBURN, a non-profit 9 municipal corporation, located at 25 West Main Street, Auburn, 10 Washington 98001, hereinafter referred to as "CITY" and AUBURN 11 FLIGHT SERVICE, INC , a Washington corporation duly authorized 12 13 to conduct business in Washington, located at 506 23rd Street 14 NE, Auburn, Washington 98002 , hereinafter referred to as 15 "AUBURN FLIGHT SERVICE" 16 1 Flowage Fee 17 Beginning May 1, 1997, Auburn Flight Service will pay the 18 19 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 21 five cents per gallon and any applicable taxes This amount 22 is due May 1, 1997 The same procedure will occur for the 23 month of June 1997, with the amount of $11, 528 84 due by June 24 25 1, 1997 Beginning July 1997 , payments will be made in an 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 4 1 amount based upon the actual fuel usage that occurred two 2 months prior 3 4 The fuel charges will be billed to Auburn Flight Service 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 7 which the billing is sent As provided above, after the 8 initial two months, the City will invoice based on actual fuel 9 10 consumption for two months prior at the wholesale rate, which 11 will consist of the average fuel price paid by the City to its 12 supplier Also included in the invoice will be the flowage 13 fee of five cents per gallon and any applicable tax 14 Following the City' s initial replacement of the filter 15 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 19 addition, following the City' s initial replacement of hoses at 20 Dispenser 3 and 4 , Auburn Flight Service agrees to reimburse 21 22 the City for any purchase of new hoses at Dispenser 3 and 4 23 within 30 days of the billing date 24 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 5 1 Upon termination of this agreement, the City will bill 2 Auburn Flight Service all charges associated with the actual 3 4 fuel consumed for the last two-month period of the contract 5 The City will take into consideration the amount of the 6 initial two-month estimated payments of $21, 413 14 , and the 7 difference between actual charges and the estimated payment 8 will either be invoiced or reimbursed to Auburn Flight Service 9 10 depending on fuel consumed and payments received 11 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 15 16 2 Use of CITY OF AU•URN MUNICIPAL AIRPORT' S FUEL 17 FACTLITIES 18 In return for use of the City' s fuel facilities, Auburn 19 Flight Service agrees to obtain all its fuel from the Auburn 20 Municipal Airport fuel facilities with the exception of other 21 22 fuel purchases made necessary due to flights of long distance 23 24 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 6 1 3 Availability of Fuel 2 Auburn Flight Service agrees that the City shall not be 3 4 liable for or responsible for providing fuel to Auburn Flight 5 Service at the City' s Municipal Airport or City' s Municipal 6 Airport fuel facilities if such provision of fuel is beyond 7 the City' s ability to supply for reasons, including but not 8 limited to, shut downs for maintenance, repairs, emergencies 9 10 or as the result of any legal or safety requirements 11 4 Term of Agreement 12 The term of this agreement is five (5) years, effective 13 from the date of this agreement as indicated above 14 5 Default 15 16 If Auburn Flight Service violates any of the terms of 17 this agreement, such violation shall be considered a default, 18 and such default shall be cause for immediate termination of 19 this Agreement by the City upon the City' s written notice to 20 Auburn Flight Service identifying the violation of term (s) 21 22 6 Indemnification and Hold H rm] ess 23 Auburn Flight Service agrees to defend, indemnify and 24 hold harmless the City, its elected and appointed officials, 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 7 1 employees and agents from any and all claims, demands and/or 2 causes of action of any kind or character whatsoever arising 3 4 out of or in connection with or incident to the performance of 5 this Agreement, including but not limited to, Auburn Flight 6 Service' s employees, subcontractors or agents for any and all 7 claims, demands and/or causes of action by any persons for 8 alleged personal injury, death or damage to their persons or 9 10 property to the extent caused by the negligent acts, errors or 11 omission of Auburn Flight Service, its employees, agents, 12 subcontractors or representatives arising out of its 13 performance of this Agreement except claims or suits 14 occasioned by the sole negligence of the City In the event 15 16 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 19 at its sole cost and expense; provided that the City retains 20 the right to participate in said suit if any principle of 21 22 governmental or public laws is involved The provisions of 23 this section shall survive the expiration or termination of 24 this Agreement 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 8 1 7 Tnsiirancp 2 Auburn Flight Service shall maintain in full force and 3 effect throughout the term of this Agreement the following 4 5 A Products-Completed Operations Aggregate Limit in the 6 amount of Two Million Dollars ($2 , 000, 000) ; 7 B Personal and Advertising Injury Aggregate Limit in 8 the amount of One Million Dollars ($1, 000, 000) ; 9 C Each Occurrence Limit in the amount of One Million 10 11 Dollars ($1, 000 , 000) ; 12 D Fire Damage Limit (Any One Fire) in the amount of 13 Twenty Five Thousand Dollars ($25 , 000) ; 14 E Hangarkeepers' Each Loss Limit in the amount of 15 Twenty Five Thousand Dollars ($25, 000) ; 16 17 • Hangarkeepers' Each Aircraft Limit in the amount of 18 Twenty Five Thousand Dollars ($25 , 000) ; 19 No X, C, or U (explosion, collapse, or underground 20 exclusion) ; and 21 H City shall be named as an additional insured 22 23 The insurance shall be written by companies licensed to 24 do business in the State of Washington An excess or umbrella 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 9 1 liability policy may be purchased to meet the required 2 insurance limits Certificates of insurance evidencing the 3 4 insurance requirements shall be furnished to the City before 5 the effective date of this agreement 6 8 Training 7 only those employees of Auburn Flight Service who have 8 completed training conducted by Auburn Municipal Airport' s 9 10 Director or his/her designee, or Auburn Municipal Airport' s 11 Operations Assistant in pumping aviation fuel are qualified as 12 required herein pursuant to this Agreement to pump fuel at the 13 City' s Municipal Airport fuel facilities for Auburn Flight 14 Service 15 16 9 Log of Aircraft Fueled 17 Auburn Flight Service shall keep a daily log which 18 identifies the aircraft which has been fueled, the date 19 fueled, the person who pumped the fuel and the number of 20 gallons of fuel pumped for the identified aircraft This log 21 22 shall be available for inspection and review by the City' s 23 Airport Manager or his/her designee, the City' s Planning 24 Director or his/her designee and the Finance Director or 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 10 1 his/her designee at any reasonable time either with or without 2 notice of such review or inspection 3 4 10 Aircraft to be Fueled by Auburn Flight Service 5 Only those aircraft owned or leased by Auburn Flight 6 Service used for charter, flight instruction and/or aircraft 7 rental may be fueled by Auburn Flight Service pursuant to this 8 Agreement Any fueling of other aircraft than as provided in 9 10 the section shall be a violation of this Agreement and a 11 default which is cause for the termination of this Agreement 12 11 applies and Equipment 13 Auburn Flight Service agrees to provide all necessary 14 supplies and equipment required for fueling aircraft in order 15 16 to comply with all regulatory and legal requirements, 17 including but not limited to Uniform Fire Code Section 52 02 18 12 Venue of Any Court Action 19 This Agreement shall be governed and construed by and in 20 accordance with the laws of the State of Washington In the 21 22 event that suit is initiated by a party to this Agreement, the 23 parties agree that jurisdiction of such action shall be vested 24 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 11 1 exclusively in the King County Superior Court for the State of 2 Washington 3 4 13 everability 5 If any section, sentence, paragraph, term, or provision 6 hereof is determined to be illegal, invalid, or 7 unconstitutional, by any court of competent jurisdiction or by 8 any state or federal regulatory authority having jurisdiction 9 10 thereof, such determination shall have no effect on the 11 validity of any other section, sentence, paragraph, term or 12 provision hereof, all of which will remain in full force and 13 effect for the term of the Agreement 14 14 Compliance with laws 15 16 Auburn Flight Service agrees to comply with all 17 applicable local, state and federal laws, ordinances, codes, 18 rules and regulations which apply to its performance of this 19 Agreement 20 21 22 23 24 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 12 1 2 3 CIITY OF AUBURN 4 5 (LClhk2s CHARLES A BOOTH 6 MAYOR 7 8 ATTEST 9 10 11 , / l 12 Robin Wohlhueter, City Clerk 13 14 15 APPROVED AS TO FORM 16 I 0 Vij 18 Michael J Reynolds, 19 City Attorney 20 21 22 23 24 25 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 13 1 2 AUBURN FLIGHT SERVICE, INC 3 4 \,� By oel Monteit . 6 Title Vice President of Operations 7 8 STATE OF WASHINGTON ) 9 ) ss COUNTY OF KING 10 11 On this 75 day of , 1997, before me the 12 undersigned, a Notary P slic in and for the State of Washington, duly commissioned and sworn, personally appeared 13 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, 16 for the uses and purposes therein mentioned, and on oath stated that he is authorized to execute said agreement 17 18 IN WITNESS WHEREOF, I have hereunto set my hand and 19 affixed my official seal on the ////����date hereinabove set forth 20 ,L ••••,�p.ouoer•o��eget SEE.• Gt"yr c/I� 7)4 c- I-Li 21 `�e��a`SS�OniE�AA`S'.(r_ �'. NOTARY PUBLIC in and for the 22 NOTARY V. St e of Washington, residing at 23 o PuCLiC ° 2: Gc mac/ ,9 p• 24 WASN��C`•`• MY COMMISSION EXPIRES 4-2_,S---91 25 °`...uu.v` 26 Resolution No 2834 Exhibit "A" April 17, 1997 Page 14 ASSOCTATED AVIATION UNDERWRITERS CERTIFICATE OF INSURANCE Date: October 30, 1996 This is to certify to: City of Auburn 25 West Main Auburn, Washington 98002 that the following policies have been issued to:Auburn Flight Service Inc and Northwest Aviation College Policy No. 46 AGL 555474 of One or More Member Companies of AAU Policy Period: from October 31, 1996 to October 31, 1997 AVIATION GENERAL LIABILITY Coverages Include: Limits of Liability General Aggregate Limit (Other than Products- Not Applicable Completed Operations and Hangarkeepers') Products-Completed Operations Aggregate Limit $2,000,000. Personal and Advertising Injury Aggregate Limit $1,000,000. Each Occurrence Limit $2,000,000. Fire Damage Limit (Any One Fire) $25,000. Medical Expense Limit (Any One Person) $3,000. Hangarkeepers Each Loss Limit $25,000. Hangarkeepers' Each Aircraft Limit $25,000. Including 30 day notice of cancellation or 10 days with respect to non-payment of premium It is agreed that: 1 SECTION II - WHO IS AN INSURED is amended to include as an insured the Certificate holder above, but only with respect to liability arising out of the aviation operations of the Named Insured. This Certificate does not amend, extend or otherwise alter the terms and conditions of the policies referred to herein. Associated Aviation Underwriters has made provision for prompt notice to you in the event of cancellation of the above described policies, but except as otherwise stated in this certificate, Associated Aviation Underwriters assumes no legal responsibility for any failure to do so. ASSOC"eat AVIATI.,4ERWRITERS B � , Lr///���jfffr Certificate No. 1 RECORDS MANAGEMENT Ordinance No 3 Resolution No. C 1 � Date Adopted 4/al ) n 9 I Copies to ) 1 ) Department Contact(s): 9L.4417 �,�� eel/L.�/l//U Finance Department 7i -4 d'i 1 t -" *17 (Copy if relates to fees, charges, or any accounting responsibility) 2.) Code Book: 3.) Recording File. 4 ) Citizen Requests: NAME Address cc. City Clerk CITY OF AUBURN 25 West Main Street Auburn, WA 98001 F A X C O V E R S H E E T DATE: April 24, 1997 TIME: 11 06 AM TO: Joel Monteith PHONE: (253) 853-4960 Auburn Flight Service, Inc.FAx. (253) 931-0768 FROM: Robin Wohlhueter, City Clerk PHONE: 931-3037 City of Auburn FAX. 931-3053 RE: Auburn Municipal Airport Fuel Flowage Fee Agreement Number of pages including cover sheet: [15] Message Exhibit A to Resolution No. 2834, Auburn Municipal Airport Fuel Flowage Fee Agreement between the City of Auburn and Auburn Flight Service, Inc. adopted at the April 21, 1997 City Council meeting is enclosed for your review See you at 1.30 PM today CHARLES A.BOOTH,MAYOR s''%, AUBURN CITY CLERK Robin Wohlhueter,City Clerk 25 West Main, Auburn,WA 98001 Dani Daskam, Deputy City Clerk City Clerk.(2A6)931-3039 Tame Bothell, Records/License Clerk business Registration:(206)931-3007 Fax:(206)9313053 ashin i°O STATE OF WASHINGTON) ) ss. COUNTY OF KING ) I, Robin Wohlhueter, the duly appointed, qualified City Clerk of the City of Auburn, a Municipal Corporation and Code City, situate in the County of King, State of Washington, do hereby certify that the foregoing is a full, true and correct copy of Resolution No 2834 of the resolutions of the City of Auburn, entitled "RESOLUTION NO 2834 " I certify that said Resolution No 2834 was duly passed by the Council and approved by the Mayor of the said City of Auburn on the 21st day of April, 1997 Witness my hand and the seal of the City of Auburn this 19th day of May, 1997 Robin Wohlhueter City Clerk City of Auburn