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HomeMy WebLinkAbout10604RESOLUTION NO. 10604 A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE CREDIT CARD SELF - FUELING AGREEMENT AND LAND LEASE BETWEEN SIBRAN PROPERTIES, LLC AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME WHEREAS, the City of Pueblo, a Municipal Corporation, and Airport Properties, Inc., entered into a Credit Card Self Fueling Agreement and Land Lease ( "Lease ") on February 25, 2002; and WHEREAS, Airport Properties, Inc., assigned its interest in the Lease to Sibran Properties, LLC, who is the successor in interest in and to the Lease as Lessee; and WHEREAS, Sibran Properties, LLC, as Lessee, and the City, as Lessor, desire to amend the provisions of the Lease; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. A certain Amendment No. 1 to the Lease, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the City Attorney, by and between the City of Pueblo, a Municipal Corporation, and Sibran Properties, LLC relating to the Credit Card Self - Fueling Agreement and Land Lease at the Pueblo Memorial Airport, is hereby approved, subject to the conditions as set forth in said Amendment No. 1. SECTION 2. The President of City Council is hereby authorized to execute said Amendment No. 1 on behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same. INTRODUCED December 27, 2005 4 s BY Michael Occhiato Councilperson Background Paper for Proposed RESOLUTION AGENDA ITEM # I I DATE: December 27, 2005 DEPARTMENT: AVIATION - DANIEL E. CENTA, P.E. TITLE A RESOLUTION APPROVING AMENDMENT NO. I TO THE CREDIT CARD SELF - FUELING AGREEMENT AND LAND LEASE BETWEEN SIBRAN PROPERTIES, LLC AND THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve an amendment to the Lease between Sibran Properties and the City of Pueblo. Approval of this Resolution. BACKGROUND This Amendment to the Lease changes the fuel flowage fee to the same rate that was approved by City Council for both Flower Aviation and Travelaire Services in their new leases. The approval of this Amendment is contingent upon City approval of the Assignment for Lease between Airport Properties, Inc. and Sibran Properties, LLC which appears before City Council on this same date. FINANCIAL IMPACT The Fuel Flowage Fee is changed from ten cents ($.10) per gallon to the following: Six cents ($.06) for each gallon up to 1,000,000 gallons; Five cents ($.05) for the next 500,000 gallons; and Four cents ($.04) for each gallon over 1,500,000 gallons. Pueblo Memorial Airport Sibran Properties, LLC. Amendment No. 1 THIS AMENDMENT NO. 1 is made and entered this 27th day of December 2005 by and between the City of Pueblo (the "Lessor"), a Municipal Corporation and Sibran Properties, LLC. (the "Lessee ") as assignee of Airport Properties, Inc. WITNESSETH WHEREAS both the Lessor and Lessee desire to amend the Lease Agreement relating to the Self Serve Credit Card Fueling Operation at Pueblo Memorial Airport between Lessee and Lessor. NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Lessor and Lessee agree as follows: Paragraph 3(B) of the Lease shall be amended to read: Lessee shall also pay as rent and for the privilege to sell or dispense aviation fuel from the leased premises a monthly fuel flow fee of six cents ($.06) starting with the month of January 2006 and each month thereafter for each gallon of aviation fuel delivered, or caused to be delivered by Lessee to Lessee's fuel storage facilities located on the leased premises. The fuel flowage fee shall be adjusted based upon the volume of aviation fuel delivered each calendar year as follows: six cents ($0.06) for each gallon up to 1,000,000 gallons; five cents ($0.05) for the next 500,000 gallons; and four cents ($0.04) for each gallon over 1,500,000 gallons. Said additional rent shall be paid without notice, offset, or deduction, on or before the 10 day of each calendar month for all fuel delivered or caused to be delivered to Lessee's fuel storage facilities during the prior calendar month. Lessee shall submit with each payment of the fuel flowage fee a report of all fuel delivered and calculation of the fuel flowage fee on forms to be approved by the Director of Aviation. The fuel flowage report shall be delivered to the office of the Director of Aviation. If the fuel flowage fee is not timely paid and /or the report not timely filed, Lessee shall pay a late fee equal to ten (10) percent of the unpaid fuel flowage fee. The fuel flowage fee shall be adjusted based on the CPI -U in the same manner as rent is adjusted under paragraph 3(A) above. The Pueblo Memorial Airport Operating Agreement and Land Lease as modified and amended by this Amendment No. 1 shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed as of the day and year first above written. City of Pueblo, a Municipal Corporation ling, J Title: President of City Council Attest City Clerk Approved as to form: City Attorney LESSEE: i ra Pro ie LLC. By: Daniel M. Olsen, President