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HomeMy WebLinkAbout2973 I RESOLUTION NO. 2 9 7 3 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN 4 AIRPORT DEALER SUPPLY CONTRACT WITH CHEVRON U S A INC EFFECTIVE JUNE 1, 1998 THROUGH MAY 31, 2001 5 6 THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, IN A 7 REGULAR MEETING DULY ASSEMBLED, HEREWITH RESOLVES AS FOLLOWS 8 SECTION 1. The Mayor and City Clerk of the City of 9 Auburn are hereby authorized to execute an Airport Dealer 10 Supply Contract with CHEVRON U S A , INC effective June 1, 11 1998 and ending May 31, 2001, to provide aircraft engine fuels 12 at the Auburn Municipal Airport A copy of said Contract is 13 attached hereto and denominated as Exhibit "A" and made a part 14 hereof as though set forth in full herein 15 Section 2 . The Mayor is hereby authorized to implement 16 such administrative procedures as may be necessary to carry 17 out the directives of this legislation 18 DATED this 1" day of June, 1998 19 20 21 CITY OF AUBURN 22 23 CHARLES A BOOTH 24 MAYOR 25 26 ---------------------------- Resolution No.2973 May 27, 1998 Page 1 1 2 ATTEST 3 4 5 Danielle E Daskam, 6 City Clerk 7 8 APPROVED AS TO FORM 9 10 I1 Michael J Reynolds, 12 City Attorney 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ---------------------------- Resolution No.2973 May 27, 1998 Page 2 Dealer Employer Identification No. (EIN) 916001228 Facility No: 82140 CHEVRON AIRPORT DEALER SUPPLY CONTRACT Dated:May 15,1998 PREMISES AND TERM 1. CHEVRON PRODUCTS COMPANY, A DIVISION OF CHEVRON U.S.A. INC., a corporation ("Company"), hereby appoints CITY OF AUBURN ("Dealer") its nonexclusive dealer at AUBURN MUNICIPAL AIRPORT in the City of Auburn, State of WA, for a term commencing on the 1st day of July, 1998, and ending on the 30th day of June,2001,and Dealer agrees to purchase from Company and Company agrees,subject to the limitation set forth below, to sell to Dealer such quantities of each of the Chevron brand aircraft engine fuels listed below(hereinafter sometimes collectively referred to as"Chevron aircraft engine fuels")as are necessary to serve customer demand for Chevron aircraft engine fuels at Dealer's premises(the"premises")at such airport: Avgas 100 LL;Jet A Company shall not be obligated to sell or deliver to Dealer in any calendar month quantities of any Chevron aircraft engine fuel in excess of one-twelfth of the total quantities of the particular product purchased by Dealer from Company during the prior 12 calendar months. Although not required to do so, Company may at its option and after request by Dealer elect to sell to Dealer quantities of Chevron aircraft engine fuels in excess of such maximum quantities, subject to all of the terms and conditions of this Contract. USE OF PREMISES 2. (a) Dealer acknowledges that there is a demand for Chevron aircraft engine fuels and Chevron aircraft lubricating products (hereinafter sometimes collectively referred to as "Chevron aviation products") at the premises,which is enhanced by Company's advertising and other promotions thereof,and agrees continuously to stock at the premises and to offer for sale such quantities of Chevron aviation products as are necessary to serve customer demand therefor. Dealer acknowledges the financial benefit to Dealer of selling and prominently displaying Chevron aviation products due to the high regard of aviation customers for airport dealers selling under the Chevron trademarks and trade names, and Dealer agrees at all times to give the dispensing equipment, displays and advertisements for Chevron aviation products and brands as prominent and convenient positions as those for any other product offered for sale on the premises and not to disparage or diminish in any way by act or omission the good reputation of such trademarks,trade names,products or airport dealers. (b) Dealer agrees to devote sufficient time to the personal management of the premises so as to provide for the continued proper operation thereof as an airport fueling facility,to maintain and operate the premises in a clean, safe and healthful manner with an appearance that is inviting to aviation customers, to provide trained personnel in numbers adequate to handle available business, to operate and manage the premises and cause customers to be treated in such a manner as to eliminate customer complaints to the extent possible, to maintain the quality of Chevron aviation products, to use and operate the premises safely,to comply with Company's Airport Dealer Quality Control Guide and such other guides as Company may provide to Dealer from time to time regarding such quality control and safe use and operation,to maintain appropriate records as required by such guides and to make.such records available to Company for Company's reasonable inspection,to comply with all applicable Federal,state and local laws and regulations relevant to the use and operation of the premises or the resale of all products purchased by Dealer under this Contract, and to supply Company with all information which Company shall reasonably request to enable Company to comply with all applicable Federal, state and local laws and regulations. Company and its authorized Exhibit "A" Resolution No. 2973 representatives shall have the right at hny time to enter upon the premises to confirm the performance by Dealer of D.ealer's obligations under this Contract. (c) Because of the difficult quality control problems that are presented by the multiple handling of aviation fuels or inadequate storage facilities, Dealer agrees that Dealer shall not, without Company's prior written consent,sell aviation fuels purchased under this Contract to any reseller customer. DELIVERIES--PRICES--TAXES 3. (a) Deliveries shall be made (except at Company's option) in full bulk transport quantities and on reasonable notice (preferably at least forty-eight (48) hours) at the premises in Company's customary manner using equipment selected by Company Free time and detention charges,if any shall be in accordance with governing tariffs of the carrier on file with Federal and/or state regulatory agencies, or, if Company's equipment is used for the delivery of Chevron aircraft engine fuels hereunder,in accordance with Company's schedule of charges in effect at the time of delivery Dealer shall pay Company any and all such charges. Any such payment shall be in addition to the prices otherwise herein provided for. (b) The prices Dealer shall pay Company for Chevron aviation products hereunder shall be Company's prices to Dealer in effect at the time and place of delivery for the particular product, grade, quantity and type of delivery involved,as established by Company from time to time. Dealer.shall,except at Company's option,pay Company net cash at the time of delivery for Chevron aviation products which Dealer may purchase from Company (c) Any tax,duty,toll,fee,impost,charge or other exaction(including but not limited to any and all airport flowage fees or similar charges), or the amount equivalent thereto, and any increase thereof now or hereafter imposed, levied or assessed by any governmental authority upon, measured by incident to or as a result of the transactions herein provided for (other than local, state and Federal net income taxes measured by the net income of Company from all sources),or the transportation, importation,production,manufacture,use or ownership of the goods the subject of this Contract shall, if collectible or payable by Company be paid by Dealer on demand by Company Any such payment shall be in addition to the prices otherwise herein provided for. TRADEMARKS,TRADE NAMES AND COLOR SCHEMES 4. (a) The products purchased by Dealer under this Contract shall be sold by Dealer as the products of Company and only under the trademarks and trade names authorized for such products by Company Dealer shall not at any time offer for sale under such trademarks and trade names any product riot authorized by Company to be sold thereunder. Dealer shall conduct Dealer's business so as to eliminate any likelihood of confusion between Company's products and those of others and so as to eliminate any likelihood of substitution or commingling of the products of others as or with those of Company Dealer agrees to abide by such reasonable regulations to this end as Company may from time to time establish by written notice to Dealer. Without limitation on the foregoing, Company shall have the right at any time to take samples of Chevron aircraft engine fuels from the premises for testing purposes, compensating Dealer(at Dealer's cost,which for this purpose shall be based on Company's prices to Dealer hereunder in effect at the time the product is taken,or,at Company's option,in kind)for any products so taken. (b) Dealer recognizes Company's right to use and authorize others to use all trademarks, service marks,trade names and color schemes(collectively "insignia")utilized by Company to identify products and services, and Dealer agrees not to claim any right,title or interest therein. Dealer acknowledges the need to control Dealer's use of such insignia in order to maintain the validity thereof and to assure the continued recognition of,acceptance by and high regard of aviation customers for products and services identified by such insignia. Accordingly,Dealer agrees that Dealer shall use such insignia only in such matmer as may he approved by Company and that Company may from time to time change such insignia and its promotional materials as it sees fit. Dealer shall not use any such insignia in Dealer's corporate name if Dealer is a corporation, nor permit the use of any such insignia in the name of any corporation in which Dealer has an interest. All signs advertising Company's products and all signs in the colors used by Company to identify its products or the places at which its products are sold and all rights therein are and shall -2- continue to be the property df Company Dealer shall not use any such signs except in connection with products manufactured or handled by Company and only in such manner as may be approved by Company Company may, during the term of this Contract,and within a reasonable period thereafter,remove or obliterate such signs. If Company removes or obliterates any signs,Company need not restore any pre-existing signs on the premises. Dealer may not use other signs to advertise products purchased from Company without Company's prior written consent. No other signs (except aircraft engine fuel price signs) shall be placed on a sign pole containing a sign advertising a product manufactured or handled by Company, unless expressly authorized by Company in writing. Dealer shall not, during the term of this Contract or thereafter,simulate in any way any insignia identifying Company's products or the places or outlets where they are sold or marketed. Upon termination of this Contract, Dealer shall immediately return to Company all signs supplied to Dealer by Company and shall immediately discontinue any and all use of such insignia and shall obliterate such insignia from all real or personal property utilized by Dealer. Dealer likewise shall obliterate such insignia from any real or personal property of Dealer before selling any such property to a third parry (c) Company shall have the right at any time during the tern of this Contract to change, alter or amend any of the trademarks and trade names under which the aircraft engine fuels covered by this Contract are now or may hereafter be sold. If Company shall at any time during the term of this Contract discontinue the marketing in Dealer's locality of any or all of the aircraft engine fuels covered by this Contract, Company shall be relieved of all obligation to sell or deliver such discontinued product to Dealer and, if Company shall market any other product in lieu of the discontinued product, this Contract.shall embrace the new product and all of the terms and conditions hereof previously applicable to the discontinued product shall apply to the new product. CONDUCT OF DEALER'S BUSINESS 5. (a) Dealer is engaged in an independent business and nothing herein contained shall be construed as granting to Company any right to control Dealer's business or operations or the manner in which the same shall be conducted, Dealer's obligation to Company hereunder being the performance of the terns and conditions of this Contract. Company has no right to hire or fire any employees of Dealer or to exercise any control over any of Dealer's employees, all of whom are entirely under the control and direction of Dealer, who shall be responsible for their acts and omissions. Dealer accepts exclusive liability for all contributions and payroll taxes required under Federal Social Security laws and State Unemployment Compensation laws or other payments under any laws of similar character as to all persons employed by or working for Dealer. (b) Dealer shall indemnify, defend and hold harmless Company, Company's parent company, Chevron Corporation, the subsidiary and affiliated companies of each of them (collectively "Company and its affiliates"), and their respective directors, officers, agents and employees, from and against all expense (including attorneys' fees), liability and claims of whatsoever kind and nature, including but not limited to those for damage to property (including Dealer's property) or injury to or death of persons (including Dealer), directly or indirectly resulting, or alleged to result, from anything occurring from any cause on or about or in connection with the maintenance,upkeep,repair,replacement,operation or use of the premises,or anything located thereon. PREVENTION OF PERFORMANCE—SHORTAGE OF SUPPLY 6 (a) There shall be no obligation to sell or deliver or to receive or use the petroleum products covered by this Contract when and while, and to the extent that, the receiving or using or manufacture or making deliveries in the customary manner are prevented or hindered by act of God, fire, riot, labor disturbances (whether involving employees of the party affected or of others and regardless of whether the disturbance could be settled by acceding to the demands of a labor group), accident,war or the acts of any government(whether foreign or domestic, Federal, state, county or municipal) or any causes beyond the reasonable control of the party affected, whether or not similar to any of the foregoing causes. In cases of partial or total interruption or loss or shortage of transportation facilities or supplies,or shortage of products deliverable hereunder,Company may allocate deliveries of available products among Dealer, Company's other customers, contract or otherwise, including Company's affiliates, -3- and Company for its own use,on any basis which in Company's sole judgment is fair and reasonable,allowing for such priorities as Company deems appropriate. (b) Due to uncertainties in the supply/demand situation(which may include a decision by Company that the costs of some crude oil and petroleum products which might be available are unreasonable),Company may not have sufficient supplies of one or more of the petroleum products covered by this Contract to meet the full requirements of Dealer,of Company's other customers,contract or otherwise,including Company's affiliates,and of Company for its own use. Whenever that situation exists and Company's performance hereunder is not otherwise excused, Company may allocate deliveries of available products on any basis which in Company's sole judgment is fair and reasonable, allowing for such priorities as Company deems appropriate. (c) Allocation is fair and reasonable even if it is based on a shortage in the then contemplated sources of supply or a general shortage in Company's system or on historical or planned deliveries. "Company's system"means the supply system of Company and its affiliates. TERMINATION 7 (a) Dealer may terminate this Contract without cause at any time during the term hereof upon giving Company written notice of such termination. (b) Company may, in addition to such other remedies as Company may have (including but not limited to the right to terminate this Contract as otherwise provided herein)and subject to arty valid requirements of any applicable statute,terminate this Contract upon giving Dealer ninety(90)days'prior written notice of such termination or, if it would not be reasonable for Company to give ninety(90)days'prior written notice,at Company's election upon giving Dealer prior written notice for such lesser period as is reasonable in the circumstances, if any one of the following occurs: (1) Dealer by act or omission breaches or defaults on any covenant, condition or other provision of this Contract, which breach or default can be cured, and Dealer fails to cure such breach or default within ten (10) days after such written notice of termination from Company which shall specify such breach or default;or (2) Dealer by act or omission breaches or defaults on any covenant, condition or other provision of this Contract which breach or default cannot be cured,or in the event of any breach or default by Dealer after notice of two previous breaches or defaults of any kind has been given hereunder,regardless of Dealer's curing such previous breaches or defaults;or (3) Dealer fails to exert good faith efforts to carry out the provisions of this Contract following written notice to Dealer from Company of such failure and a reasonable opportunity to exert good faith efforts to carry out such provisions;or (4) Dealer fails to pay to Company in a timely manner when due all sums to which Company is legally entitled(whether or not such sums are owed to Company under this Contract); or (5) Dealer knowingly fails to comply with Federal, state or local laws or regulations relevant to the use or operation of the premises;or (6) Willful adulteration, commingling, mislabeling or misbranding of aircraft engine fuels or other violations by Dealer of trademarks utilized by Company-or (7) This Contract, or any interest therein, is assigned or otherwise transferred contrary to the provisions of section 9 hereof;or -4- (8) Dealer vacates,abandons,transfers or is deprived of possession of the premises; or (9) Unlawful, fraudulent or deceptive acts or practices or criminal misconduct by Dealer relevant to the operation of the premises;or (10) Continuing severe physical or mental disability of Dealer of three (3)months' duration which renders Dealer unable to provide for the continued proper operation of the premises as an airport fueling facility;or (11) Failure by Dealer to operate the premises as an airport fueling facility for seven (7) consecutive days, or such lesser period which under the facts and circumstances constitutes an unreasonable period of time;or (12) Conviction of Dealer of any felony involving moral turpitude;or (13) Dealer's death if Dealer is an individual. Without limitation on the foregoing, it is agreed that upon the occurrence of any of the events specified in clauses (6) through (13) of this subsection (b) it would not be reasonable for Company to give ninety (90) days' prior written notice, that ten (10) days' notice would be reasonable in such circumstances, and that in any such circumstance Company may elect to terminate this Contract upon giving Dealer ten (10) instead of ninety (90) days' prior written notice of such termination. (c) If during the term hereof Company decides to withdraw from marketing aircraft engine fuels through retail outlets in the relevant geographic market area in which the premises are located,Company may terminate this Contract by giving Dealer one hundred eighty (180) days' prior written notice of such termination and otherwise complying with any valid requirements of any applicable statute. (d) Waiver by Company of one or more breaches or defaults hereunder shall not be deemed to be a waiver of any other or continuing breach or default hereunder No modification of this Contract,and no waiver of any provision hereof,shall be binding on Company unless in writing and signed by Company Termination of this Contract shall not relieve Dealer of responsibility for obligations incurred prior to termination. Upon termination of this Contract, subject to any valid requirements of any applicable statute, neither Company nor any incoming dealer shall have any obligation to purchase from Dealer any of Dealer's inventory,tools,equipment or supplies. (e) If Company continues to accept orders from Dealer for aircraft engine fuels following expiration of the term of this Contract, such sales shall be upon all of the terms and conditions hereof; provided that such sales shall not be construed to evidence a renewal of this Contract by operation of law or otherwise,but shall imply only an agreement from day to day, which Company may (subject to any valid requirements of any applicable statute) terminate without cause at any time upon giving Dealer written notice of such termination. FACILITIES 8. Company has delivered to or installed for(or shall deliver to or install for)Dealer the following facilities to be used by Dealer at the premises: Monthly Rent Chevron I.D. Signs: of Type @$0/mo Chevron I.D. Signs: of Type @$0/mo TOTAL MONTHLY RENT $0.00 -5- Dealer shall pay Company, in advance,each month for use of such facilities the total monthly rent specified above. In connection with the use by Dealer of such facilities, Dealer agrees to be responsible for loss of or damage to such facilities and agrees not to remove any of such facilities from the premises. Title to such facilities and all trademark and service mark rights Company may have in the same shall at all times remain in Company,and Company shall have the right at any time to remove any or all of such facilities on notice to Dealer thereof, refunding to Dealer any unearned, prepaid rental. ASSIGNMENT 9 This Contract is personal to Dealer, and Dealer shall not, subject to any valid requirements of any applicable statute, assign any rights or delegate any duties that Dealer may have under this Contract, either voluntarily, involuntarily or by operation of law or otherwise,without the prior written consent of Company If Dealer is a corporation, any sale, conveyance, alienation, transfer or other change of interest in or title to or beneficial ownership of fifty percent(50%)or more of the voting stock(or securities convertible into fifty percent(50%)or more of the voting stock) of Dealer, either voluntarily involuntarily, by operation of law, merger or other corporate proceedings,or otherwise,shall be construed as an assignment of Dealer's rights hereunder. INSURANCE 10. (a) Dealer shall maintain, at Dealer's own expense during the term hereof, insurance with respect to Dealer's business,the premises and all activities on or about or in connection with the premises of the types and in the minimum amounts described generally as follows: (1) Comprehensive Airport Liability Insurance or Comprehensive General Liability Insurance (bodily injury and property damage) of not less than $500,000 combined single limit per occurrence but in the aggregate with respect to Product-Completed Operations and any one offense/aggregate with respect to Personal Injury; including, explosion hazard, personal injury, premises-operations, products and completed operations, blanket contractual and independent contractors liability coverage;and (2) Business Auto Liability Insurance (bodily injury and property damage) of not less than $500,000 combined single limit per occurrence on all owned,hued or non-owned vehicles which are used by Dealer in connection with Dealer's business,including but not limited to all vehicles bearing the hallmark or other insignia used by Company;and (3) Full Worker's Compensation and Employer's Liability Insurance covering all employees of Dealer;and (4) Any other insurance or surety bonding that may be required by applicable Federal, state and local laws and regulations. b) The Insurance required under Articles 1,2,3, and 5 shall include Company and its affiliates as Additional Insured with respect to the operations of the Dealer,but this shall not prejudice the Dealer's or their Insurer's rights of recourse against Company as manufactures, repairers, suppliers or servicing agents where such rights of recourse would have existed had this endorsement not been effected under this policy (c) The insurance required under Clauses 1,2,3,and 5 of subsection A above shall provide that it is primary coverage to insurance carried by Company (d) The insurance required above,shall provide that no cancellation or material change in any policy shall become effective except upon thirty(30)days'prior written notice to Company -6- (e) The insurance companies shall have no recourse against Company, or any other additional insured,for payment of any premiums or assessments under any policy issued by a mutual insurance company (f) Dealer shall furnish certificates satisfactory to Company as evidence that the insurance required under subsection(a)above is being maintained. (g) Dealer shall be responsible for all deductibles in all of Dealer's insurance policies. (h) Dealer's indemnity and other obligations shall not be limited by the foregoing insurance requirements. DELIVERIES IN DRUMS 11 If Company elects to make deliveries hereunder in Company's returnable drums,such drums shall remain Company's property and shall be so designated. Company's applicable deposit charge for each drum shall be invoiced to Dealer at the time of delivery Such deposit charge shall be payable in accordance with terms established by Company from time to time and shall be held as security, without interest, to insure the return of such drum. The deposit charge for each drum shall be refunded to Dealer upon the return of such drum in good condition to Company within a reasonable period of time; otherwise, the deposit shall be retained by Company If, during the term of this Contract, Company markets any aviation products in non-returnable drums, Company shall have the right to make deliveries to Dealer of such products in non-returnable drums. The price for each product so marketed shall include the value of the drum and the drum shall become the property of Dealer. OIL SPILLS 12. If a petroleum product spill occurs at the premises or elsewhere in connection with Dealer's business or Dealer's performance of this Contract, Dealer shall promptly notify Company and the appropriate governmental authorities and shall take immediate action to clean up the spill and prevent further damage. Upon receipt of such notification,Company shall have the right, at its election,to provide,or cause to be provided,to Dealer such additional manpower,equipment and material as in Company's sole discretion are deemed reasonable to complete the clean-up in a satisfactory manner. Dealer shall pay and be responsible for,and Dealer's indemnity obligation under subsection 5(b)of this Contract shall include, but not be limited to, all costs and expenses incurred in connection with the clean-up operations,including reimbursement to Company for all its costs and expenses,and all fines,charges,fees or judgments imposed or levied by any Federal, state or local governmental agency as a result of such spill, except in the event the spill resulted solely from any act or omission on the part of Company or Company's employees. PRIOR SUPPLY CONTRACTS 13. This Contract shall not become effective if, prior to the commencement of the term hereof, Company notifies Dealer of Company's election to exercise any right Company may have to terminate any prior supply contract with Dealer covering the delivery of aviation products to the premises. In such event this Contract shall be null and void. Subject to the foregoing,effective as of the commencement of the term hereof,this Contract supersedes and tertninates all prior supply contracts between Company and its affiliates and Dealer covering the delivery of aviation Products to the premises, provided that any outstanding breach by Dealer of any such prior supply contract shall be deemed to be a breach of this Contract and the occurrence of any event authorizing the termination of any such prior supply contract shall authorize the termination of this Contract. OTHER 14. Certain elements of Chevron's Avgas Supply Proposal to the City of Auburn, dated April 28, 1998, specifically (but not limited to) pricing policy, credit card policy, insurance, tankage, imaging, advertising, technical assistance, uniforms, and the Chevron FastPay system, are hereby considered to be part of this contract. Company agrees to abide by offerings made in said proposal. -7- NOTICE 15. All notices to be given under this Contract shall be in writing and shall be posted by certified mail or personally delivered to Company at 575 Lennon Lane,Walnut Creek,CA 94598 and to Dealer at the premises or such other address as either party may designate by written notice to the other in the manner herein provided. IN WITNESS WHEREOF,the parties hereto have executed this Contract as of the date first above written. CHEVRON PRODUCTS COMPANY A DIVISION OF CHEVRON U.S.A.INC. BY�J 1 l�lI�lw)1M.�t CITY OF AUBURN—MUNICIPAL AIRPORT BY (�J&t JC& 4 a Z, Charles A. Booth, Mayor ATTEST: MS-9264E(5-96) artielle E. Daskam, City Clerk Chevron Airport Dealers Credit Cards CHEVRON PRODUCTS COMPANY A DIVISION OF CHEVRON U.S.A.INC. Date: May 15, 1998 Facility No. 82140 Address: City of Auburn Municipal Airport 400 2P St N.E. Auburn,WA. 98002 Dear Chevron Airport Dealer: Please refer to the Airport Dealer Supply Contract entered into between you and Chevron Products Company, a Division of Chevron U.S.A. Inc. ("Company") contemporaneously herewith in regard to the subject premises. Company hereby authorizes you to accept credit cards approved by Company for its dealers for purchases at the premises of the types of products and services that Company may from time to time designate, subject to the following terms and conditions: I. The honoring of such credit cards by you and the acceptance by Company of authorized invoices or other evidence of debt issued theron for sale of products and services made by you to cardholders shall be subject to terms and conditions established periodically by Company for its dealers, which shall include, but not be limited to, Company's right to charge back to you or to refuse to accept any invoice pursuant to said terms and conditions. 2. Company has delivered to or installed for you(or shall deliver to and install for you)three credit card imprinters to be used by you at the premises. You shall pay Company, in advance, a monthly rental for the use of the imprinters of$0.00 for each 5-digit imprinter and$0.00 for each 7-digit imprinter. Company shall have the right at any time to replace any 5-digit imprinters in your possession with 7-digit imprinters. In connection with your use of the imprinters,you agree to be responsible for loss or damage to the imprinters and agree not to remove any of them from the premises. Title to the imprinters and all trademark rights Company may have in them shall at all times remain in Company 3. This authorization shall terminate: (1) at your option,any time upon your giving written notice thereof to Company;or(2)at Company's option,at any time upon Company giving written notice thereof to you;or(3) automatically,upon the expiration or termination of the Airport Dealer Supply Contract. Upon such termination you shall promptly return to Company all of the imprinters referred to above and Company shall refund to you any unearned, prepaid rental. If such imprinters are not so returned, Company shall have the right to remove such imprinters,refunding to you any unearned,prepaid rental. By accepting any such credit cards for purchases by cardholders at the premises or by submitting to Company authorized invoices or other evidence of debt issued thereon, you agree to be bound by the above terms and conditions. Very truly yours, CHEVRON PRODUCTS COMPANY A DIVISION OF CHEVRON U.S.A.INC. By`V J � r ► l ( � MS-9270E(5-96) -1- ON= to Chevron Aviation May 15, 1998 Mr. John Anderson City of Auburn -Municipal Airport 25 West Main Auburn, WA 98001 Dear Mr. Anderson, I was very pleased to hear that the City of Auburn has chosen to retain Chevron as its supplier of aviation fuels. Our goal is to validate the city's decision by providing the highest quality fuels and service possible. Enclosed please find two copies of the Chevron Airport Dealer Contract. Please sign one and return to me, and keep the other for your files. I would like to draw your attention to a new section 14, which stipulates that Chevron will abide by the offerings listed in our proposal dated April 28, 1998 (copy enclosed). I look forward to working with you and your contractor on the new fuel facility Our partner, V Fueling, is prepared to assist you in deciding which tank/dispenser configuration works best for your airport. I will arrange to visit you in the next week or two to discuss the next steps in the process. Thank you again for choosing Chevron. Our company is honored to be able to continue the fine relationship we have enjoyed with the City of Auburn for the past 29 years. Sincerely, David P Funkhouser Territory Manager April 28, 1998 Chevron Products Company Aviation Division 575 Lennon Lane Walnut Creek, CA 94598 P O. Box W, Section 410 Concord, CA 94524 David P Funkhouser Territory Manager Phone(925) Fax(925)977-7090 City of Auburn Auburn Municipal Airport 25 West Main Auburn, WA. 98001 RE. Avgas Supply Proposal Gentlemen: Chevron Aviation appreciates the opportunity to offer a proposal to supply the Auburn Municipal Airport with high-quality aviation fuel, as we have for the past 29 years. Chevron proposes the following (section numbers correspond to numbers on your request for proposals): 1) Dealer Supply Contract - See attached. 2) Grades of fuel and oil available- Fuel: Avgas I DOLL Oil: Uncoinpounded— 100, 120 Jet A Ashless dispersant— 100, 120, 20-50 3) Credit card policy - Acceptable cards and associated processing fees: • Chevron, Esso (Canada), state and federal government cards - No fees charged. • MasterCard, Visa, American Express, Optima, Discover cards - 2.2 % proc. fee. We are currently working on being able to accept both the AVCARD and Multi Service cards. I will keep you advised of our progress. 4) Insurance provided by Supplier—Chevron carries $75,000,000 in excess product liability insurance,the highest amount in the industry 5) Dealer insurance required by Supplier— See Section 10 of Supply Contract. 6) Current pricing - As of the contract date, current price for Avgas 100LL is $1.096 per gallon, delivered into your tank. Pricing is day-to-day and generally trends with premium unleaded gasoline (PUL). Jet A, if needed, is currently priced at $ 0.557 per gallon delivered. Federal, state and local taxes are not included in the prices quoted. Oil prices were not made available to me in time for inclusion in this proposal. I will fax an addendum to you prior to the reading of proposals with that information. 7) Financial assistance programs for fuel facility - Chevron has formed an alliance with 1"Fueling Systems, an industry leader in tank leasing and purchasing programs. An example of a lease-to-own proposal that might suit your particular needs is attached. As you progress in your facility planning process, I would be happy to work with you and 1 s`Fueling to find the right fit for your airport, both logistically and financially Chevron will be as creative as necessary to assure an affordable solution for the City of Auburn. 8) Product ordering/delivery—Generally, orders placed before noon (your time) will be filled between 6 a.m. and 6 p.m. (day shift)the following business day Orders placed after noon will be filled between 6 p.m. and 6 a.m. (night shift)the following business day Should an emergency load be required, we will make every effort to deliver your fuel as soon as is practicable. 9) Unbranded fuel - For quality control purposes, Chevron will supply only branded fuel manufactured by Chevron. 10) Other - • Chevron FastPay—For the ultimate in customer convenience and to help you reduce costs, you may wish to consider installing a self-serve facility (information attached). Chevron will assist you by providing the automated fuel terminal at no cost to the City (approx. $17,000 value). Installation is not included, however the manufacturer (Applied Technology) will provide 2 days of on-site installation assistance. • Technical assistance - Chevron offers both computer-based and on-site training of your line personnel. In addition,our Product Integrity Specialist will perform annual inspections of your facility to assist you in assuring that any fuel delivered into your customer's plane is of the highest possible quality • Imaging_- Chevron will provide all paint, decals and signs for your new tank/dispenser facility to present an image of which both you and Chevron can be proud. Chevron will also pay for any associated labor • Advertising—Chevron will pay up to 50%of your advertising costs, based on the amount of fuel you buy Chevron will reimburse you '/z cent for each gallon purchased in a given half-year(January through June or July through December), up to the 50%maximum. • Uniforms—Aramark, a leading uniform service company, has been retained by Chevron to offer our dealers a uniform rental and/or purchase program at.attractive rates. Aramark will contact our dealers directly this summer, and your participation, while encouraged, is optional. • Future developments - Other programs being developed include a Chevron Aviation web site (6/98),pilot recognition and frequent buyer programs, an d an upgrade of Chevron's national presence through advertising and participation in relevant trade shows. Our emphasis will be to create an environment, which supports you in your efforts to operate your facility in a safe, professional and profitable manner. • Dependability - With over eighty years of aviation industry experience, Chevron will continue to provide the highest quality fuels available at competitive prices. Our goal is to be a top-tier supplier of aviation fuels with a formidable network of satisfied customers. Thank you for allowing Chevron the opportunity to continue serving your needs. We appreciate your business and look forward to furthering our long association with the City of Auburn. Respectfully submitted, David P Funkhouser RECORDS MANAGEMENT ORDINANCE/RESOLUTION DISTRIBUTION ORDINANCE NO: DATE ADOPTED: RESOLUTION NO._ �'�� EFFECTIVE DATE. RECORDING FILE: CODE BOOK: _ DEPARTMENT DISTRIBUTION: k DEPT:._,... - . _.:.� _ :.�.._. .._. ...:. .. . .. . .. .. .-. ...r ...--. -,.- .. .. DATE=... . G�l�I.J H CITIZEN REQUESTS: NAME ADDRESS ry -' ° ' p• � � DATE: F:CLERK\RECORDSIRECFORM OFFICE OF THE MAYOR CITY ADMINISTRATION Charles A. Booth, Mayor 25 West Main, Auburn,WA 98001 (253)931-3041 Fax:(253)288-3132 u ' June 3, 1998 Mr David P Funkhouser Territory Manager Chevron Products Company PO Box W, Section 410 Concord, CA 94524 Dear Mr Funkhouser- On June 1, 1998, the Auburn City Council adopted Resolution No. 2973 authorizing an Airport Dealer Supply Contract with Chevron USA, Inc. for the supply of aviation fuels effective June 1, 1998 through May 31, 2001 Enclosed is a fully executed original of the contract for your records. Thank you for your proposal, and we look forward to continuing business with Chevron. Sincerely, Charles A. Booth Mayor File: 04.4.9.1.2 F k1erklcantkRES2973 CHARLES A BOOTH,MAYOR AUBURN CITY CLERK Danielle Daskara,City Clerk 25 West Main, Auburn,WA 98001 Cathy Richardson,Deputy City Clerk B City Clerk:(253)931-3039 Tamie Bothell,Records/License Clerk --- -Business Registration:(253)931-3009-Fax:,(253)288-3132 STATE OF WASHINGTON) ) ss. COUNTY OF KING ) I, Danielle Daskam, 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. 2973 of the resolutions of the City of Auburn, entitled "RESOLUTION NO.2973." I certify that said Resolution No. 2973 was duly passed by the Council and approved by the Mayor of the said City of Auburn on the 1 st day of June, 1998. Witness my hand and the seal of the City of Auburn this 20th day of August, 1998. 'Danielle Daskam, City Clerk City of Auburn