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