HomeMy WebLinkAbout07-85 RESOLUTIONr
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RESOLUTION NO. 7-85
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE A LEASE AND FIXED BASE OPERATOR CONTRACT
WITH AERO -TECH SERVICES, INC.
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BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE QTY OF FAYETTEVILLE,
ARKANSAS:
That the Mayor and City Clerk are hereby authorized and directed
to execute a Lease and Fixed Base Operator Contract with Aero -Tech
Services, Inc. A copy of the Lease and Fixed Base Operator Contract
authorized for execution hereby is attached hereto marked Exhibit
"A" and made a part hereof.
PASSED AND APPROVED this 22nd day of January
APPROVED
, 1985.
MEEME
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LEASE AND FIXEDD BASE BATOR'S CONTRACT
This LEASE AND FIXED BASE OPERATOR'S CONIRA(T executed on this
22n.`_`;' day of January
,1985, between the City of Fayetteville,
Arkansas, hereinafter called the "City" and Aero -Tech Services, Inc.,
hereinafter called the "Fixed Base Operator" (FBO).
WHEREAS, the City owns and operates.a Municipal Airport known
as Drake Field, hereinafter call the ."Airport"; and
WHEREAS, Aero -Tech Services, Inc., desires to establish a fixed
base operation at the Airport and desires to use the facilities at
the Airport in connection with its fixed base operation, and
WHEREAS, the City has heretofore leased to the FBO a maintenance
s
hangar pursuant to lease agreement dated November 20, 1984; and
WHEREAS, the City is willing to lease to the FBOadditional facilities
at the Airport.
NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED
HEREIN, THE PARTIES AGREE AS FOLLOWS:
1. LEASED PREMISES. The City hereby leases to the FBO, and
the FBO hereby leases from the City, the following:
(a) Approximately 2,904 square feet (more or less) of space
in the Old Drake Field Terminal Building at the Airport
as designated on Exhibit "A" attached hereto and made a
part hereof, less and except that portion of said building
under lease to the Federal Aviation Administration.
(b) The aircraft apron space designated "FBO Aircraft Parking"
On the plat attachedhereto marked Exhibit "8" and made
a part hereof.
(c) The fuel farm to be constructed by the City at the site
designated "Fuel Farm" on the plat attached hereto as Exhibit
11c II• .
The City hereby grants the FBO the right of first refusal to
lease the space in the Old Terminal Building presently occupied by
the Federal Aviation Administration and the office space in/the Old
White Hangar Building occupied by Scheduled Skyways, Inc., at such
time as said spaces are vacated by the present tenants; the rental
rate for said premises shall be negotiated at said time.
EVIT .
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2. AUTHORIZATION. The City authorizes the PBD to use the foregoing
demised premises in connection with its fixed base operation, which
operation shall at all times conform to the City's Minimum Standards
for Conu,ercial Aeronautical Activities at Drake Field. Said standards
are incorporated herein by reference thereto and rade a part hereof
as if set out word for word. The FBO shall not operate general food
services but may install vending machines for food and beverages and
may provide catered food trays and executive snack packs to the general
aviation public.
3. TERM. Subject to earlier termination as hereinafter provided,
the term of this lease shall be for a period of three (3) years commencing
on March 1, 1985. The City hereby grants the FBO an option to extend
the term of this lease for up to three (3) additional three-year terms.
Any such extension shall be subject to the terms of this agreement,
including the escalator clause contained herein; provided, the consid-
eration payable by the FBO shall be set by the City. The FBD shall
give the City written notice of the FBO's intent to exercise this
option at least sixty (60) days prior to the expiration of the original
lease term or any extension thereof. Within fifteen (15) days from
receipt of said notice, the City shall advise the FBO in writing as
to the consideration payable if the lease term is extended. The FBO
shall then have fifteen (15) days withinwhich to exercise the option
by giving written notice to the City.
If, upon termination of this lease, the FBO continues to occupy
the demised premises, a tenancy from month-to-month shall be deemed
in effect, which tenancy may be cancelled by either party by giving
thirty (30) days written notice.
4. CONSIDERATION. In consideration for the use of the demised
premises .and in consideration for the privilege of serving as a fixed
base operator at the Airport, the FBO agrees to pay the City the following:
(a) For those premises designated in 111(a) of this lease the
sum of $1,540 per month, payable in advance, plus two (2)
per cent of the FBO's gross sales per month or $2,000 per
year, whichever is greater. -The term "sales" shall include,.
but shall not be limited to, sundry sales, oil and lubricants,
aircraft charter and taxi service, aircraft engine, airframe
and accessory sales and maintenance, aircraft rental, flight
training, and specialized services; provided, the term "gross
sales" shall not include the sale of fuel or new and used
aircraft. All sums payable hereunder shall be paid in monthly
installments. In the event of late payment, a ten (10)
per cent panalty, compounded monthly, shall be due and payable
iimtediately.
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(b) For _use of the Airport's fuel farm, the sum of $440 per
month plus a flowage fee of five cents per gallon on all
aviation fuel and gasoline fuel delivered to the fuel farm
each month. Said flowage fee may be increased by the City
by written notice to the FBO,stating the amount of the increase
and the effective date thereof. The FBO shall present the
City with bills of lading for all fuel delivered to the
fuel farm and remit the appropriate flowage fee by the tenth
day of the succeeding month. In the event of late payment,
a ten (10) per cent penalty, compounded monthly, shall be
due and payable immediately.
The consideration payable to Lessor for the year. beginning March
1, 1986, shall be the amount resulting by -adjusting the basic consideration
payable under paragraphs" (a) and (b) above_daring the. initial year,
of this to reflect the percentage of change (either up or down) occurring
in the Consumer Price Index, U.S. Bureau of Labor Statistics, Department
of Labor, through comparingthe index of December 31, 1985, with the
index on December 31, 1984.
The consideration payable to Lessor for the year beginning March
1, 1987, shall be the amount resulting by adjusting the consideration
payable for the year beginning March 1, 1986, to reflect the percentage
of change (either up or down) occurring in the Consumer Price Index,
U.S. Bureau of Labor Statistics, Department of Labor, through comparing
the index of December 31, 1986, with the index on December 31, 1985.
FRO shall maintain at all times an up-to-date record of the true
and complete accounts of all sales and business transacted by FRO.
Within ten (10) days from the last day of the preceding month, FBO
shall submit to the City a certified statement reflecting FBO's gross
sales, as defined herein, for said preceeding month and shall remit
the amount due under this lease to the City. FBO's records shall
be open for inspection by the City or any authorized representative
of the City at all reasonable hours. FBO agrees to maintain a separate
set of books for FBO's operations at the Airport, which books shall
be kept in accordance with generally accepted accounting practices
and shall be maintained in a manner which will accurately reflect
the amounts due the City under this lease. FBO agrees to provide
the City an annual audited statement of revenues received, which statement
shall be prepared by an independent certified public accountant at
FBO's expense.
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5. IMPROVEMENTS. Lessee shall bear the cost of all improvements
or additions made to the interior or exterior of the building on the
leased premises. No improvements or additions to any part of the
leased premises shall be made by Lessee without the prior written
approval of the City's Airport Manager. Any signs to be erected on
or attached to the leased premises must have the prior written approval
of the City's Airport Manager.
6. AVN -DISCRIMINATION. FBO will not, on the grounds of race,
color, creed, national origin, sex or handicap discriminate or permit
discrimination against any person or group of persons in any manner
prohibited by Title VI of the Civil Rights Act of 1964 and Part 21
of the Regulations of the Office of the Secretary of Transportation
as such are now worded or may hereafter be amended. The City reserves
the right to take 'such action as the United States Government may
direct to enforce this covenant.
FBO agrees to furnish on a fair, equal and non -discriminating
basis to all users thereof, and to charge fair, reasonable and non-
discriminating prices for each unit of service.
7. DAMAGE OR DESTRUCTION OF PREMISES. The City agrees to obtain
and keep in force throughout the term of the lease fire and extended
coverage insurance on the Old Terminal Building in an amount equivalent
to the replacement cost of said building. If the Old Terminal Building
shall be damaged or destroyed by fire or other casualty, such structure
shall be repaired or reconstructed with due diligence by the City
at its own cost and expense, and the rent payable with respect to
the premises on which such structure is located shall be proportionately
paid up to the time of such damage or destruction and shall thence-
forth cease until such time as the building shall be fully restored
to a tenable condition. If operations continue, in whole or in part,
the rent payable with respect to the premises on which such structure
is located shall be prorated accordingly and continue to be paid to
the City.
8. UTILITIES. FBO shall be responsible for the payment of
•all utilities on the leased premises, including electrical bills,
natural gas bills, water and sewer bills and sanitation services.
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Presently, the other tenant in the Old Drake Field Terminal Building
is the Federal Aviation Administration. It shall be the responsibility
of the FBO to negotiate utility payments to be paid by the FAA or
any other tenant who jointly occupies the Old Terminal Building.
Utility charges by the FBO to the. FAA or any other co -tenant shall
be based, as accurately as possible, upon actual utility costs to
the FBO.
9. MAINTENANCE.
(a) FB0 will provide, at FBO's expense, all maintenance and
custodial service for that portion of the Old Terminal Building
leased to FBO.
(b) Old Terminal Building: The City agrees that it will keep
and maintain'the exterior of the "Old Terminal Building,
including the roof, exterior walls and exterior plumbing
thereof, in good condition and repair, and agrees that if
the roof or any part of the exterior walls or exterior plumbing
of said building thereof shall become defective or damaged
at any time during the term due to ordinary wear and tear
and not due to negligence of FBO or FBO's agents or customers,
upon notice from the FBO, the City will immediately cause
repairs to be made and restore the defective portions to
good condition. The City shall insure that the glass and
doors are in good condition on the effective date of this
lease; thereafter, FBO shall be responsible for maintenance
of said glass and doors.
The City shall not be responsible for, or pay for any expense
which might arise due to, the installation and/or removal of antenna,
radio signal or receiving towers or related facilities.
FBO shall be responsible for the maintenance and normal operating
condition of all heating, electrical and air conditioning equipment
and interior plumbing on the premises used by FBO. The City shall
be responsible only for major maintenance of the existing equipment
in the mechanical room of the Old Terminal Building. Major maintenance,
as used herein, shall mean replacement of the heating and air conditioning
units or compressor units when deemed necessary by the City.
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10. AUTOMOBILE PARKING. Autanobile parking spaces will be available
for use by FBO, FBO's employees, or FBO's customers. Said parking
spaces shall be located adjacent to the Old Terminal Building on the
west side. Parking Shall be strictly prohibited for persons who provide
or receive any services conducted at the new airport terminal building.
11. TERMINATION BY LESSEE. FRO may cancel this agreement upon
ninety (90) days written notice to the City of its election to cancel
upon the occurrence of any 'of the following events:
(a) The Federal Aviation Administration or any other governmental
agency significantly altering, operating requirements at
Drake Field making FBO's operation undesirable.
(b) Court action closing Drake Field for more than thirty (30)
days.
(c) Substantial and continued breach by Lessor of its obligation
under this agreement.
(d) Inability of FBO to utilize -the facilities granted hereunder
in a reasonable and useful manner due to action of Lessor
or any court -or administrative agency with jurisdiction.
(e) Assumption of control of Drake Field by the United States
Government or any of its agencies that prevents Lessee's
normal operations as a fixed base operator.
NO WAIVER OR DEFAULT BY FRO OF ANY OF THE TERMS OF CONDITIONS
HEREOF TO BE PERFORMED, KEPT AND OBSERVED BY THE CITY SHALL BE CONSTRUED
TO BE OR ACT AS A WAIVER OF ANY SUBSEQUENT DEFAULT OF ANY OF THE TERMS
OR CONDITIONS HEREIN CONTAINED TO BE PERFORMED, KEPT AND OBSERVED
BY THE CITY.
12. TERMINATION BY THE CITY. If FBO fails to make any payment
due hereunder within thirty (30) days of the date on which such payment
is due, the City may, at its option, terminate this agreement and
take possession of so much of FBO's personal property as is reasonably
necessary to secure payment of the amounts due and unpaid. The City
shall also have the right to terminate this agreement in the event
of any of the following:
(a) The filing by FBO of a voluntary petition in bankruptcy;
(b) The adjudication of FBO as a bankrupt pursuant to bankruptcy
proceedings;
(c) The appointment of a receiver of FBO's assets;
(d) The divestiture of FBO's estate hereunder by operation of
law;
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(e) The failure, by FRO, to meet the City's Minimum Standards
for Commercial Aeronautical Activities at Drake Field within
thirty (30) days from receipt of written notice from the
City.
NO WAIVER OR DEFAULT BY THE CITY OF ANY OF THE TERMS OF CONDITIONS
HEREOF TO BE PERFORMED, KEPT AND OBSERVED BY FRO SHALL BE CONSTRUED
TO BE OR ACT AS A WAIVER, OF ANY SUBSEQUENT DEFAULT OF ANY OF THE TERMS
OR CONDITIONS HEREIN CONTAINED TO BE PERFORMED, KEPT AND OBSERVED
BY FBO.
13. SUMMEROF POSSESSION. On the expiration or other termination
of this lease, FBO's rights hereunder shall cease and FRO shall surrender
possession of the Premises granted herein in good condition except
for usual and ordinary wear and tear.
Except as otherwise provided in this agreement, all fixtures,
improvements, equipment and other property brought, installed, erected
or placed by FBO in, or about the Airport and the premises leased
hereunder and affixed thereto shall be deemed the personalty and remain
the property of the FBO. FBO shall have the right at all times during
the term of this agreement and for an additional period of thirty
(30) days after the expiration or other termination of this agreement
to remove any or all of such property from the Airport, subject however,
to FBO's obligations to repair all damage, if any resulting from such
removal. Any and all property not removed by FBO prior to the expiration
of the said thirty (30) days period shall thereupon become a part
of the land on which it is located and title . thereto shall thereupon
be vested in Lessor.
14. INSURANCE. FBO agrees to carry general public liability
insurance and hangar keepers insurance in the following amounts:
General public liability insurance $2,000,000
Hangar Keeper's liability insurance $2,000,000
FRO agrees to add the City as an insured under FBO's insurance
policies at the Airport and to maintain said policies in force throughout
the term of this lease. FBO shall file a certificate of insurance
for all requiredinsurance with the City Clerk. FBO agrees to notify
the City in writing as to any amendments to or cancellation of said
policy.
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15. The outside storage of supplies or equipment on the leased
premises shall be prohibited with the exception of equipment necessary
to service air operations on the east side of the leased building.
FBO shall mow the grounds adjacent to the leased building and parking
areas.
16. This lease shall not be construed to grant an exclusive
right within the meaning of Section 308 of the Federal Aviation Act
of 1958.
17. FEDERAL GRANTS. In the event any of the activities of FBO
affect the City in connection with its efforts to obtain grants or
funds from federal agencies, the FBO agrees to confirm its activities
so as to afford the City the greatest amount of grant available so
long as it does not materially prejudice FBO.
18. AGREEMENTS WITH GOVERNMENTAL AGENCIES. Should there be
any agreements between the City and other governmental agencies concerning
' the operations contemplated herein by FBO, then such provisions of
such agreements as affect the parties shall be deemed incorporated
herein by reference.
19. Absolutely no portable buildings, mobile homes, or any other
readily movable building shall be permitted on the demised premises
without the prior written approval. of the City's Airport Manager.
20. FBO shall fully comply with all rules, regulations and laws
applicable to airports served by certificated air carriers and with
all ordinances of the City.
21. NOTICES. Notices to the City provided herein shall be sufficient
if sent by registered mail, addressed to the City's Airport Manager
at, Postal Drawer F, Fayetteville, Arkansas, 72701. Notices to FBO
provided herein shall be sufficient if sent by registered mail addressed
to FBO at its regular mailing address,
-Fayetteville, Arkansas, 72701.
22. THIS AGREEMBNT.shall inure to the benefit of and be binding
upon the successors, assigns andlegal representatives of the parties.
niimmEssStEMMD3F, the parties thereto have executed this agreement
the year and date first above written.
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THE CITY OF FAYETTEVILLE, ARKANSAS
TO:
THRU:
FROM:
DATE:
SUBJECT:
Cit
Scott C.. Linebaugh, City Manager
Dale Frederick, Airport Manage
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AIRPORT DIVISION
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MICROFILMED
February 13, 1991
LETTER OF AGREEMENT FOR OPTION #2 WITH
AERO TECH SERVICES, INC./FIXED BASE OPERATOR
APPROVAL OF.A LETTER OF AGREEMENT
FOR OPTION PERIOD #2 OF THE..FBO CONTRACT
The existing Fixed Base Operator, Aero -Tech Svc. Inc. wishes to
exercise Option #2 contained in their existing contract which was
approved January 22, 1985. This is the second of three options
•contained in the original agreement, the term of :each of these options
is three years.
The rates negotiated for this option period are as follows: each year
will be increased or decreased based on the Consumer Price Index (CPI)
from the preceding 12 month period. The current monthly compensation
rates for the FRO terminal and fuel farm are $1,247.68 and $526.10
respectively. The CPI figures will not be available until April,
however, the estimated 5% increase will be retroactive to March 1, 1991
if this modification is approved.
STk1P RECOMMENDS APPROVAL OF OPTION AND LEASE MODIFICATION
Attachments: One original Letter of Agreement
CDF:klj
113 WEST MOUNTAIN 72701 501 5214750
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LETTER OF AGREEMENT OPTION # 2
FIXED BASE OPERATOR'S CONTRACT
This Letter of Agreement for Option #2 executed on this
13th day of March , 1991, between the City of
Fayetteville, Arkansas, hereinafter called the "City" and Aero Tech
Services, Inc., hereinafter called the "Fixed Base Operator" (FBO);
WHEREAS, the City and the FBO have executed a Lease and Fixed
Base Operator's contract dated January 22, 1985;
WHEREAS, the FBO desires to exercise Lease Option number two
for an additional three (3) years of operation at the Airport,
beginning ;March 1, 1991 and ending March 1, 1994, by Letter of
Intent dated December 13, 1990;
WHEREAS, the, consideration payable to the City for each
succeeding year during the term of this lease shall be the amount
resulting by adjusting the basic consideration payable under Item
4. Paragraphs (a) and (b) of the Lease, and all Lease
Modifications, to reflect the percentage of change (either up or
down) occurring in the Consumer Price Index, U.S. Bureau of Labor
Statistics, Department of Labor, through comparing the index on
March 1 of the current year with the index on March 1 of the
immediately preceding year.
NOW, THEREFORE, the City and the FBO hereby
Option number two.
IN WITNESS WHEREOF, this Letter of Agreement
on the date first above written.
ARKANSAS
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mutually agree on
has been executed
FAYETTEVILLE,
AERO TECH SERVICES, INC.
By:
Title: �e51 Z1 4 4eP /P._ L
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MICROFILMEug -i3 - gr -
MODIFICATION OF LEASE ACTT
This PcREEMENI made this
1985, by and between the City
called "City" and Aero -Tech
"Fixed Base Operator (FBO)".
day of
of Fayetteville, Arkadsas, ereinafter
Services, Inc., hereinafter called the
WHEREAS, the City and Aero -Tech Services, Inc., entered into
a lease agreement and fixed base operator's contract dated January
22, 1985,:which is incorporated herein by reference thereto; and
WHEREAS, the parties desire to modify the aforesaid lease agreement.
NOW, THEREFORE, THE PARrIFS'MDTUALLY AGREE AS FOLLOWS:
1. Paragraph 4 of said lease is modified by combining the first
two paragraphs after subparagraph (b) and amending them to read as
follows: ;,
are
are
The consideration payable to Lessor for'the year beginning
March 1, 1986, shall be the amount resulting by adjusting the
basic consideration payable under paragraph (a) above during
the initial year of this to reflect the percentage of change
(either up or down) occurring in the Consumer Price Index, U.S. Bureau
of Labor Statistics, Department of Labor, through comparing the
index of December 31, 1985, with the index on December 31, 1984.
The consideration payable to Lessor for the year beginning March
1, 1986, under paragraph (b) shall be negotiated by the parties
and specified by written modification of this contract. The
consideration payable to Lessor for the year beginning March
1, 1987, shall be the amount resulting by adjusting the consideration
payable under' paragraph (a) above for the year beginning March
1, 1986, to reflect the percentage of change (either up or down)
occurring in the Consumer Price Index, U.S. Bureau of Labor Statis-
tics, Department of Labor, through comparing the index of December
'3171986; with`the`-indexton-December131, 1985. 'The consideration -
payable to Lessor for the year beginning March 1, 1987, under
paragraph (b) above shall be negotiated by the parties and specified
by written modification of this contract.
2. All provisions of the lease are incorporated herein and
hereby modified to conform herewith but in all other respects
to be and shall continue in full force.
IN WITNESS WHEREOF, the parties have executed this Modification
of Lease on the day and year first above written.
ATTEST
By:
Title:
By (2/,:72
FE
Mayor
CITY
AERO -TECH RVICFS,
By : ` a?
Title: /4 ,We,✓%