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
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21 CITY OF AUBURN
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23
CHARLES A BOOTH
24 MAYOR
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Resolution No.2973
May 27, 1998
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2 ATTEST
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Danielle E Daskam,
6 City Clerk
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APPROVED AS TO FORM
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Michael J Reynolds,
12 City Attorney
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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
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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,
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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
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(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
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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
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(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.
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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)
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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